Leveraging Kiwi capability on the world stage. David Banfield/Deidre Campbell

Transcription

1 Leveraging Kiwi capability on the world stage David Banfield/Deidre Campbell February March 2016

2 Early insights - January 2014 Business declining in a growing market Business that needed support and to embrace new thinking Business that needed to believe in itself before the markets could believe in it Ambition not reflected in results Board that wanted new energy, speed and thinking AIM: A business that did what it said 2

3 An international business led from New Zealand Methven United Kingdom (MUK) Methven Australia (MAU) Methven New Zealand (MNZ) Methven China (MCN) Group Operations - Sales & Marketing - Sales & Marketing - Sales & Marketing - Sales & Marketing - Manufacturing 3

4 Financial History Financial Performance NZ $000 June 2015 March 2015 March 2014 March 2013 March 2012 March 2011 Sales revenue 97,868 96,349 96,720 98, , ,087 EBITDA 1 13,292 12,682 11,286 12,454 13,880 12,421 EBITDA 1 margin (%) 13.6% 13.2% 11.7% 12.7% 13.1% 10.2% Net profit after tax 5,880 5,690 4,708 5,150 6,462 4,749 Financial Position June 2015 March 2015 March 2014 March 2013 March 2012 March 2011 (NZ $000) Unaudited Unaudited Variance % Total equity 52,651 49,901 42,865 45,280 48,211 50,547 Net (debt) / cash 23,871 22,754 14,450 17,222 11,746 19,074 Capital expenditure 3,684 3,433 1,150 2,092 3,651 3,659 ROCE (%) 13.4% 14.6% 13.8% 14.3% 16.1% 12.7% 4

5 Good progress on sales, profits and new international distribution

6 Half Year snapshot 1 July December 2015 vs same period 2014 Net Profit After Tax (NPAT) increased 26.8% to $4.7m Total Group sales growth of 8% 8% sales growth and market share growth in NZ 6.4% sales growth and market share growth in Australia Aio range supporting growth and continuing to win awards New international distribution agreement in 5 test markets leveraging global IP Heshan factory performing in line with expectation. Leadership transition completed New Group leadership team complementing existing capability to help drive performance 1. Following our change of balance date last year. all references are to our new half year - the six months ended 31 December 2015 and comparatives are to the six months ended 31 December

7 Half Year snapshot (cont d) Strong operating cashflow of $6.6m Net debt reduced by 9.7% Fully imputed interim dividend of 4.0 cps to be paid on 31 March 2016 Full year guidance maintained. NPAT growth expected to be towards the top end of range (15-25%) 7

8 What s new Strategic Implementation Board Agreement Executive Alignment 8

9 What s new The Board Group Executive Leadership Market Executive Teams Executive Teams 9

10 The spirit of innovation Methven was founded as an iron and brass foundry by Scottish born George Methven in Dunedin, New Zealand Began manufacturing taps and copper laundry vessels 2004 Manufactured ammunitions for the New Zealand Army During post-war building boom Methven focused on tapware and valving product for New Zealand homes. Bought by McKechnie Bros PLC and Peglers Ltd Launch of Fastflow technology. Launch of Satinjet technology. Methven lists on the NZ stock exchange. Methven tapware launched in Australia. Launch of Kiri Satinjet showers and Kiri tapware. Methven acquires The Deva Tapware Company Limited one of UK s largest independent shower and tapware supplier. Launch of shower infusions. Launch of Tahi Thermostatic Methven celebrated 125 years. Methven brand launched into the UK market and at ISH. Launch of Waipori Satinjet showers and Waipori tapware. Launch of Kaha Satinjet showers. Launch of Aroha tapware. Methven acquires Invention Sanitary (premium manufacturing supplier in Guangdong Province, China). Global launch of Aurajet NZ (19 February) Methven officially awarded as a Cool Brand in the UK (9 October). Methven UK opens new head office at Stonecross, featuring a purpose built Experience Centre (October). Successful Methven Heshan leadership transition to new CEO Andy Chen from retiring CEO Hui Zhuang (31 December).) Methven celebrates 130 years (September). 10

11 Global recognition 11

12 We own 2 of 5 global shower technologies An amazing shower experience that doesn t cost the earth 12

13 Growing our commercial footprint to leverage IP IP & Awards Coverage Sales Coverage 13

14 Winning formula Our plan: Think and act like the market leader Insights drive action Focus 14

15 NZ Australia UK China

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17 Digital Brand Launched in December x the number of visits to the Methven site, with growth in all markets Biggest growth in Australia - 9x number of visits 63% increase in organic search year-on-year Strong growth in dealer locator conversion 17

18 Digital disruption Brand Awareness & Promotion Lead Generation & Sales Reputation Management Service & Product Promotion Community Building & Engagement Customer Care & Experience 18 18

19 NZ plumbers support Methven Methven remains a clear leader in showers and tapware with 95% brand preference Top 5 drivers of brand choice identified Methven significantly outranking competitors on key criteria for plumbers Methven have a very strong Net Promoter Score (NPS) of 70% and looking to strengthen Nefa valves have 67% brand preference and 30% NPS 19

20 Insights drive action Aio insight effective at understanding market potential UK NPS of 42% (market leading score) Australian customer satisfaction at 94% Work-on s identified to deliver even more loyalty and relevance Innovation focus to support long term profitable growth 20

21 3 Year Plan FY16 - FY18 12 th June 2015

22 Our Cause. The unrelenting pursuit of amazing water experiences that don t cost the earth

23 Our Vision. To be the authoritative leader in showers, taps and valves, setting industry leading standards for our customers, shareholders and team

24 STRIDES Goals June 2018 Methven 130 Our Goals Revenue $130 Million NPAT Towards 10% of revenue Supply & Operations $6 $8M stock reduction Technology NPD sales of $10M Retail New markets and customers delivering $6 $8M of sales Insight Improved NPS across key influencers Digital & Data # in search Employees Employees as shareholders Sustainability Significant reduction in carbon footprint 24

25 Increasing our international footprint Methven United Kingdom (MUK) Methven Australia (MAU) Methven New Zealand (MNZ) Methven China (MCN) Group Operations - Sales & Marketing - Sales & Marketing - Sales & Marketing - Sales & Marketing - Manufacturing Belgium Netherlands Luxembourg Spain Portugal 25

26 Our new head office June 2016 Continuing our proud history of NZ manufacturing and development 26

27 Outlook for 12 months ending 30 June 2016 Maintaining guidance Revenue growth of at least 5% NPAT growth between 15 and 25% (towards top end of range) Net Debt forecast to decrease Dividend pay-out ratio 70-90% Business to remain well within banking covenants 27

28 Why invest in Methven Turnaround reflected in current performance Strategic plan aiming to deliver $130m revenue NPAT target towards 10% of sales Cash generative Strong history of dividend pay-out Defined pay-out ratio of 70-90% Upper quartile ROCE Global IP starting to increase international footprint Utilising NZ-based skills and expertise to take Methven to the world 28