Mc Phe rsons L imite d F ir st Ha lf Re sults F ina nc ia l Ye - PowerPoint PPT Presentation

Mc Phe rson’s L imite d F ir st Ha lf Re sults F ina nc ia l Ye a r 2015 Pa ul Ma g uire – Ma na g ing Dire c to r Pa ul Withe ridg e – Chie f F ina nc ia l Offic e r 24 F e b rua ry 2015

MCP 1H F Y2015 F ina nc ia l Ove rvie w 1H F Y2015 Sa le s Re ve nue o f $186.6m, 3.3% a b o ve prio r ye a r » – E xc luding ‘ Mc Phe rso n’ s Ho use wa re s’ , whic h ha s b e e n e q uity a c c o unte d fro m 1 No v 2014 fo llo wing the dive stme nt o f 51% to the F a c ke lma nn Gro up, re ve nue inc re a se d b y 18.1% to $168.7m – Co mpa ra b le sa le s re ve nue in line with prio r ye a r; i.e . e xc luding a c q uisitio ns, ne w a g e nc ie s a nd dive stme nts Unde rlying 1H F Y2015 E BI T , PAT & E PS in line with upda te d g uida nc e » – Unde rlying E BI T o f $16.3m, 10.2% b e lo w prio r ye a r* – Unde rlying PAT o f $9.3m, 12.7% b e lo w prio r ye a r* – Unde rlying E PS o f 9.7 c e nts, 17.1% b e lo w prio r * * F ig ure s re fle c t the e a rly a do ptio n o f AASB 9 F inanc ial I nstrume nts 2

MCP 1H F Y2015 F ina nc ia l Ove rvie w ‘ Ca sh flo w fro m o pe ra tio ns b e fo re inte re st a nd ta x pa yme nts’ o f » $19.8m, sig nific a ntly a b o ve prio r ye a r ($8.5m) E BI T I nte re st Co ve r 1 o f 5.0 time s a nd L e ve ra g e Ra tio 2 o f 2.2 fo r the 12 » mo nths to 31 De c e mb e r 2014 I nte rim divide nd o f 6.0 c e nts pe r sha re fully fra nke d » – 63% pa yo ut ra tio o f unde rlying E PS – Pa yme nt da te 9 April 2015 – Divide nd Re inve stme nt Pla n (DRP) re ta ine d Co nsiste nt a ppro a c h to F X he dg ing » – Pro po rtio na lly lo we r purc ha se s de no mina te d in USD in F Y2015 due to He a lth & Be a uty e xpa nsio n 1. No rma lise d L T M E BI T / Ne t b o rro wing c o st 2. Ne t De b t / No rma lise d L T M E BI T DA 3 No te tha t no rma lisa tio ns inc lude the full ye a r e ffe c t o f a c q uisitio ns a nd d ive stme nts a nd no n-re c urring ite ms

ST RAT E GY UPDAT E Pa ul Ma g uire Ma na g ing Dire c to r

Re ve nue Summa ry by Division (Aus & NZ) % OF T OT AL RE VE NUE H RE ASONS OUT L OOK RE VE NUE GROWT Y2015 Y14 1H F 1H F Y15 vs 1H F Gro wth in HE AL T H Ne w a g e nc ie s 33% * 39% re ve nue a nd & a c q uisitio ns & BE AUT Y pro fit Gro wth in Ne w pro duc ts 18% 31% ** re ve nue a nd HOME APPL IANCE S & a c q uisitio ns pro fit L o we r sa le s Pro duc t ra ng e 14% (20%) b ut impro ve d HOUSE WARE S ra tio na lisa tio n pro fita b ility Ong o ing ma rke t Ma rke t le a de rship le a de rship b ut HOUSE HOL D 25% 5% CONSUMABL E S ma inta ine d to ug h tra ding c o nditio ns Pro fita b le OT HE R Distrib utio n (e .g . Impulse 4% (11%) g ro wth thro ug h c ha ng e s ne w ra ng ing Me rc ha ndising ) 5 * He a lth & Be a uty sa le s e xc luding a c q uisitio ns & a g e nc ie s in line with prio r ye a r ** Ho me Applia nc e g ro wth ra te e xc luding a c q uisitio ns = 8.6%

T ra nsforma tion Stra te g y ate gy is: Mc Phe r son’s state d str “to substantially tr m thro ugh ansfor ac quisitio n/ dive stme nt, the e stablishme nt o f ne w age nc y partne rships and c hanne l e xpansio n ........ dive r sifying away fro m margin c o nstraine d c hanne ls and inc re asing partic ipatio n in c hanne ls with gre ate r pro fit po te ntial” 6

T ra nsforma tion Ac hie ve me nts Ove r the past two ye ar s we have … ... suc c e ssfully inte g ra te d 8 E a rning s Pe r Sha re (E PS) a c c re tive a c q uisitio ns; a c c e ssing syne rg y b e ne fits a nd pro viding g ro wth in pro fita b le c ha nne ls ... e sta b lishe d a g e nc y pa rtne rships with two pre stig e Be a uty b usine sse s ... dive ste d ‘ Cro wn Gla sswa re ’ , e xiting the lo w ma rg in fo o dse rvic e c ha nne l ... e sta b lishe d a Ho use wa re s pa rtne rship with F a c ke lma nn (Ge rma ny) ... la unc he d c o mpre he nsive ne w inno va tive pro duc t ra ng e s; and ... upg ra de d I T syste ms, b o o ste d distrib utio n c e ntre e ffic ie nc y & c a pa c ity, ra tio na lise d pro duc t ra ng e s a nd imple me nte d pric e inc re a se s 7

T ra nsforma tion T ime line Signific ant dive r sific ation ac hie ve d sinc e the de me r ge r of Mc Phe r son’s Pr inting in 2012 F ine F ra g ra nc e s T hink Ag e nc y: ‘Crown Gla sswa re ’ Mc Phe rson’s Applia nc e s Guc c i dive stme nt Printing Group a c quisition Dolc e & Gabbana (MPG) de me rg e d Hugo Boss T rilog y Ag e nc y Ma se ur F ootc a re a c quisition Inte rna tiona l a c quisition Applia nc e Ag e nc y Nov De c F e b Aug Ma r Jul Oc t Ma r Apr Jun Jul Aug 2014 2014 2012 2012 2013 2013 2013 2014 2014 2014 2014 2014 L e ma ir HAPL a c quisition HOUSE WARE S a c quisition Pa rtne rship Cosme x a c quisition with F a c ke lma nn (Ge rma ny) Dr L e Winn’s & Re vita na il E ylure & Monta g ne Je une sse a c quisition A’Kin & Al’c he my Ag e nc ie s 8 a c quisition

T ra nsforma tion Be ne fits T ra nsfo rming thro ug h dive rsific a tion re duc e s risk: » L e sse ne d e xposure to fore ig n e xc ha ng e – � USD purc ha se s will re duc e to 68% o f to ta l purc ha se s in F Y2015, do wn fro m 85% in F Y2014 A more profita ble c ha nne l a nd c ustome r mix – � I n F Y2015, the mix o f b usine ss a c ro ss the c ha nne ls will c o ntinue to impro ve F Y2014 F Y2015 Re ta il E xpo rt Re ta il Ha rdwa re Outle ts 2% 1% Outle ts 1% Ha rdwa re 1% 2% I nd e p e nd e nts 14% I nd e p e nd e nts 14% Co mme rc ia l 5% Co mme rc ia l De pt. 5% Gro c e ry Gro c e ry Sto re s 4% 44% 48% De pt. Sto re s 4% Disc . De pt. Disc . De pt. Sto re s Sto re s 10% 7% Pha rma c y Pha rma c y 22% 16% 9

Be a uty Ac quisitions De live ring Growth Dr L e Winn’ s & Re vita na il » – I c o nic skinc a re b ra nd – Be a uty tre a tme nt b ra nd – L e ve ra g ing MCP stre ng ths – Sig nific a nt g ro wth po te ntia l A’ kin & Al’ c he my » – Na tura l skinc a re (A’ kin) a nd na tura l ha irc a re (Al’ c he my) – L e ve ra g ing MCP stre ng ths – Sig nific a nt g ro wth po te ntia l 10

Be a uty Ag e nc y De live ring Growth 11

Pre stig e Ag e nc y De live ring Growth 12

Home Applia nc e Ac quisition Growth T hink Applia nc e s » – Ba uma tic , Ve nini & D’ Ama ni – F urthe r dive rsific a tio n; inc re a sing b usine ss in e le c tric a l re ta il, ha rdwa re & c o mme rc ia l ho me b uilding L e ma ir » – Nic he white g o o ds b ra nd 13

Home Applia nc e Ag e nc y Growth Premium Italian cookers New agency December 2014 14

House wa re s Pa rtne rship Ho use wa re s jo int ve nture pa rtne rship e sta b lishe d 1 » No v 2014 with the F ACK E L MANN Gro up (F MG) fro m Ge rma ny; (F MG 51% : MCP 49%) F ACK E L MANN is a g lo b a l ma nufa c ture r a nd distrib uto r » o f kitc he n, b a king , ho me & le isure pro duc ts, o pe ra ting 35 ma nufa c turing & distrib utio n c e ntre s ‘ Mc Phe rso n’ s Ho use wa re s’ is b e ne fiting sub sta ntia lly fro m: » – Ma nufa c turing a nd sha re d so urc ing c a pa b ility – L e ve ra g ing sc a le , c o mb ine d pro duc t a sso rtme nts a nd b ra nds – I nte g ra ting infra struc ture a nd re duc ing o ve rhe a ds 15

He a lth a nd Be a uty Curre nt Sta tus YT D Sa le s g ro wth 33% (e xc l’ a c q uisitio ns & » ne w a g e nc ie s sa le s in line with prio r ye a r) Suc c e ssful ne w pro duc t la unc he s unde r » truste d b ra nd s Ac q uisitio ns a nd ne w a g e nc ie s b o o sting » pre se nc e in Pha rma c y a nd De pa rtme nt Sto re s a nd re a ffirming Mc Phe rso n’ s b e a uty industry c re de ntia ls: Dr L e Winn’ s a nd Re vita na il No v 2013 – T rilo g y, A’ kin a nd Al’ c he my July 2014 – Guc c i, D & G a nd Hug o Bo ss Aug 2014 – Outlook Syne rg ie s fro m re c e nt b ra nd a c q uisitio ns » Co ntinue d g ro wth thro ug h: » ne w pro duc t de ve lo pme nt – re c e nt a c q uisitio ns a nd a g e nc ie s – po te ntia l ne w a c q uisitio ns a nd – a g e nc ie s, with c a pa c ity fo r >1500 ne w pro d uc t line s in the ‘ pic k to lig ht’ DC 16

Home Applia nc e s Curre nt Status Ho me Applia nc e s is pro viding c usto me r » a nd c ha nne l dive rsific a tio n; in e le c tric a l re ta il, ha rdwa re & c o mme rc ia l 1H F Y2015 a dve rse ly a ffe c te d b y pro duc t » ra tio na lisa tio n & inve nto ry c le a ra nc e po st the T hink a c q uisitio n Sa le s in Ma ste rs a nd the K itc he n Cha nne l » slo we r tha n e xpe c te d Ne w pro duc ts la unc he d in 1H F Y2015 » Outlook Be ne fits fro m o pe ra tio na l initia tive s a nd » ne w pro duc ts la unc he d in 1H F Y2015 Building a ppro va ls a t a 5 ye a r hig h » Pric e inc re a se s in 2H F Y2015 » Co ntinue d g ro wth thro ug h: » ne w pro duc t la unc he s in 2H F Y2015 – e xpa nsio n within e xisting & ne w – c a te g o rie s a nd c ha nne ls the po te ntia l fo r furthe r a c q uisitio ns – 17