debt reduction

FY05 Results FY05 Results Several key strategic objectives have been achieved in FY05 • Delivered 55% increase in EBIT and $24.9m increase in NOPAT • Improved operating performance of most businesses • Successful $50m capital raising in May • Divestment of 5 non-core businesses • Term debt reduction from $150m (June 04) to $115m June 05 • Established a water conservation business with 2 further acquisitions – commenced manufacturing operations in Sydney • Established focussed automotive fuel tank business • Clearly delivered on what we said we would FY05 Results Financials – 30 June 2005 June 2005 $m Revenue EBIT NOPAT Divestment/Writedowns Reported NPAT 569.8 34.7 20.1 (69.9) (49.8) June 2004 $m 900.5 22.4 (4.8) (90.8) (95.6) 48% % (37%) 55% FY05 Results Financials – 30 June 2005 EBIT* 30 June 2005 $m 12.7 8.2 11.9 15.4 48.2 0 (13.5) 34.7 30 June 2004 $m 9.3 9.9 5.9 4.9 30.0 10.0 (17.6) 22.4 Improvement $m % 3.4 (1.7) 6.0 10.5 18.2 (10.0) 4.1 12.3 36% (17%) 101% 214% 61% 23% 55% AH Plant Consumer Industrial Automotive Operations Divested Corporate Costs Total * Before writedowns/divestments FY05 Results Financials – 30 June 2005 30 June 2005 $’m Group EBIT Interest Tax Benefit NOPAT Losses from Divestment activity Writedowns 34.7 (16.5) 1.9 20.1 (7.7) (62.2) (49.8) 30 June 2004 $’m 22.4 (21.8) (5.4) (4.8) 0.5 (91.3) (95.6) 45.8 48% 24.9 Improvement $’m 12.3 % 55% FY05 Results Balance Sheet – 30 June 2005 $ in millions Consolidated June 2005 212.2 121.6 333.8 (140.8) (144.6) 48.4 48.4 Consolidated June 2004 231.7 171.9 403.6 (274.2) (134.7) (5.3) (5.3) Current Assets Non-Current Assets Total Assets Current Liabilities Non-Current Liabilities Net Assets (Liabilities) Equity FY05 Results Cash – Reconciliation of EBITDA to Net Operating Cashflow $’m 1. 2. 3. 4. Group EBITDA Net Cashflow (used in) operating activities (2.4) - Add – Interest 16.5 Variance Represented by cash used in the business as follows • Inventory build 10.3 • Divestment / Litigation cost 7.2 • Redundancies 4.0 • Creditor reduction 6.1 • Surplus lease / Consumer Relocation 4.0 • Lease residuals 2.0 • Various restructuring/rationalisation 2.0 • Development costs 2.0 • Other 4.2 $’m 56.6 14.1 42.5 FY05 Results AH Plant • • • • • Continued the fleet re-investment programme investing another ($19m) Reduced maintenance costs and improved margins and service Significant growth occurred in Queensland Took advantage of infrastructure projects on Eastern Seaboard particularly Auslink Growth in cycle expected to continue at least to 2008/9 ($ in millions) FY2005 59.7 12.7 FY2004 54.3 9.3 % Change 10 36 FY05 Results Sales EBIT Nylex Industrial Products ($ in millions) FY2005 FY2004 % Change Sales EBIT 83.0 11.9 122.5 5.9 (32) 101 FY05 Results Nylex Industrial Products Business includes - Waste & Materials Handling Films & Fabrics (Decorative & Industrial) Domestic Water Solutions (July 1, 2005) FY05 Results Nylex Industrial Products • • • • • • • Discontinued manufacture of “unprofitable” products Closed Hose and Mesh manufacturing facilities Productivity initiatives reduced wastage and offset raw material price increases All businesses now on common IT platform Increased blend of sourced product/manufactured product Dramatic increase in focus on sales and marketing Investment in new and upgraded tooling for waste products FY05 Results Nylex Consumer Products • Performance reflects downturn in housing, increased raw material costs and one off costs associated with restructure. • Rationalised sites in Australia and New Zealand • Exited manufacture of most products • Includes new Water product sales of approximately $26m • Increased marketing programmes and brand awareness • Established common IT Platform ($ in millions) FY2005 135.7 8.2 FY2004 121.0 9.9 % Change 12 (17) FY05 Results Sales EBIT Nylex Automotive $ in millions (before writedown) FY2005 258.5 15.4 FY2004 412.7 4.9 % Change (37) 214 FY05 Results Sales EBIT Nylex Automotive Business includes - Nylex Fuel Tank Adelaide, SA - Melded Fabrics & Kennon Preston & Dandenong, Victoria - Empire Rubber - Mills Elastomers - Nylex Door Trims - Exacto Interior Trim Bendigo, Victoria Dandenong, Victoria Frankston, Victoria Adelaide, SA FY05 Results Nylex Automotive • • • • • • • Divestments completed, Marsden & McGain, Hendersons (2), Huntingdale Nylex Fuel Tanks established new premises in Edinburgh Park (SA) New contracts won with all major manufacturers. Leaner facilities now providing benefits Raw material costs offset by improved efficiency All businesses now profitable Exit of selected units will continue FY05 Results FY06 Outlook FY05 Results Future Outlook Focus on businesses • • • With sustainable competitive advantages and strong growth Deliver +20% Return on Capital Employed Provide a minimum of 10% p.a. increase in earnings Finalise our analysis of the strategic options for each business in the Group FY05 Results Future Outlook Plant Hire • Growth expected until at least 2009 • Opportunities for geographic expansion will be reviewed Industrial • Increase mix of imported versus manufactured products • Alliance being established with Nylex Malaysia • Opportunities for expansion being reviewed in Films & Fabrics • Strategies being developed for future increasingly competitive environment in Waste and Materials. FY05 Results Future Outlook Industrial • Started a new “stand-alone” Domestic Water Solutions business (July 1) • No sales in FY2005 but contracts for 230,000 households now • Executive General Manager appointed • Opportunities to provide “total solution” for builders and domestic householders • Opportunities for export being reviewed. FY05 Results Nylex Domestic Water Solutions FY05 Results Future Outlook Consumer Products • New products, new products, new products! • Full years benefit of water products ranging with resellers • Further synergy benefits on costs with water in Consumer • New consumer friendly merchandising systems • Increased focus on inventory control/delivery performance and cost • Review acquisition opportunities to increase scale • Demand in this sector likely to remain weak. Automotive • New contracts won, more pending • All businesses profitable • China JV (Trim) provides more opportunities • Divestment process continuing – while earnings grow FY05 Results Future Outlook Group • • • No material issues expected to emerge on adoption of AIFRS Term bank debt reduced from $150m at 30 June 2004 to $115m at June 2005 Corporate costs being progressively reduced by common IT platform and improved reporting FY05 Results Summary • • • • Earnings promises were delivered FY06 will be first net profit since 2000 Business has been simplified and will be simplified further Major focus FY06 – Water growth – Films & Fabrics growth – Consumer growth – Improved Return on Investment FY05 Results FY05 Results