Transpacific 2013 Financial Year For personal use only Results - PowerPoint PPT Presentation

Transpacific 2013 Financial Year For personal use only Results Presentation Kevin Campbell – CEO & Stewart Cummins – CFO 23 August 2013

Transpacific 2013 Financial Year Results - Disclaimer  Forward looking statements - This presentation contains certain forward-looking statements, including with respect to the financial condition, results of operations and businesses of Transpacific Industries Group Ltd (“TPI”) and certain plans and objectives of the management of TPI. Forward -looking statements can generally be identified by the use of words including but not limited to ‘project’, ‘foresee’, ‘plan’, ‘guidance’, ‘expect’, ‘aim’, ‘intend’, ‘anticipate’, ‘believe’, ‘estimate’, ‘may’, ‘should’, ‘will’ For personal use only or similar expressions. All such forward-looking statements involve known and unknown risks, significant uncertainties, assumptions, contingencies and other factors, many of which are outside the control of TPI, which may cause the actual results or performance of TPI to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such forward-looking statements apply only as of the date of this presentation.  Factors that could cause actual results or performance to differ materially include without limitation the following: risks and uncertainties associated with the Australian, New Zealand and global economic environment and capital market conditions, the cyclical nature of the various industries, the level of activity in Australian and New Zealand construction, manufacturing, mining, agricultural and automotive industries, commodity price fluctuations, fluctuation in foreign currency exchange and interest rates, competition, TPI’s relationships with, and the financial condition of, its suppliers and customers, legislative change s, regulatory changes or other changes in the laws which affect TPI’s business, including environmental and taxation laws (including the Carbon Pricing Mechanism), and ope rational risks. The foregoing list of important factors and risks is not exhaustive.  To the fullest extent permitted by law, no representation or warranty (express or implied) is given or made by any person (including TPI) in relation to the accuracy or completeness of all or any part of this presentation, or any constituent or associated presentation, information or material (collectively, the Information) or the accuracy or completeness or likelihood of achievement or reasonableness of any forward looking statements or the assumptions on which any forward looking statements are based. TPI does not accept responsibility or liability arising in any way for errors in, omissions from, or information contained in this presentation.  The Information may include information derived from public or third party sources that has not been independently verified.  TPI disclaims any obligation or undertaking to release any updates or revisions to the Information to reflect any new information or change in expectations or assumptions, except as required by applicable law.  Investment decisions - Nothing contained in the Information constitutes investment, legal, tax or other advice. The Information does not take into account the investment objectives, financial situation or particular needs of any investor, potential investor or any other person. You should take independent professional advice before making any investment decision.  Financial year results information - This presentation contains summary information that should be read in conjunction with TPI's Financial Reports for the financial year ended 30 June 2013.  All amounts are in Australian dollars unless otherwise stated. A number of figures in the tables and charts in the presentation pages have been rounded to one decimal place. Percentages (%) have been calculated on actual whole figures.  Underlying earnings are categorised as non-IFRS financial information and therefore have been presented in compliance with ASIC Regulatory Guide 230 – Disclosing non-IFRS information, issued in December 2011. Refer to TPI’s Directors’ Report for the definition of “Underlying earnings”. The term EBITDA represents earnings before interest, income tax, and depreciation and amortisation expense and the term EBIT represents earnings before interest and income tax expense.  This presentation has not been subject to review or audit except as noted on page 7. 2

Transpacific 2013 Financial Year Results Agenda For personal use only Financial Summary and Overview Kevin Campbell, CEO Achievements Business and Operational Review Stewart Cummins, CFO Significant Items and Impairments Divisional Underlying Results Kevin Campbell, CEO Financial Management Stewart Cummins, CFO Capital Structure FY14 Outlook and Priorities Kevin Campbell, CEO Q&A Appendices 3

Transpacific 2013 Financial Year Results Financial Summary and Overview For personal use only  Revenue up 0.4% to $2.29 billion Statutory results  Loss after income tax attributable to ordinary equity holders of $218.7 million (compared to FY12) compared to a profit after income tax of $12.5 million  Loss per share 13.9 cents compared to earnings per share of 0.9 cents  Totalled $286.6 million Significant items  Non-cash impairments of $276.8 million related to: (after tax) 1. Proposed sale or closure of non-core or under-performing businesses – $136.9 million 2. Australian Post Collection assets – $139.9 million Trading conditions  Economic conditions remain challenging across Australia and New Zealand  Weak commodity prices for paper, plastics and metals  Australian landfill volumes weaker  Stronger second half performance in New Zealand 4

Transpacific 2013 Financial Year Results Key Highlights of Underlying Results (1) For personal use only Underlying NPAT (2) Revenue $2,294m Up 0.4% $67.9m Up 17.1% Underlying EBITDA Underlying EPS $412.2m Down 6.4% 4.3 cents Up 0.3% Underlying EBIT Operating Cash Flow $226.5m Down 10.2% $282.4m Up 4.6% Underlying Net Interest Net Debt Expense $116.3m Down $35.9m $977.5m Down $73.1m Note 1: All comparisons against previous corresponding period. Refer to page 9 for reconciliation from statutory profit to underlying profit Note 2: Attributable to Ordinary Equity Holders 5

Transpacific 2013 Financial Year Results Achievements For personal use only   47% reduction in total recordable injury frequency rate Safety   Initiated the Business and Operational Review to accelerate transformation program Transformation   $15 million cost savings target achieved in FY13, part of overall $50 million target Sustainable cost savings announced in February 2013  Debt reduction  $105 million of debt repaid and net debt reduced to < $1 billion at 30 June 2013  Interest  $36 million reduction in underlying net interest expense in FY13 • expense Further reduction of $25 million anticipated in FY14 by reducing debt and termination of certain interest rate hedges   $28 million of net proceeds from divestment of businesses and sale of surplus properties Divestment program  Announced sale of Commercial Vehicles Group for $219 million (subject to completion adjustments) • Net proceeds of approximately $185 million will be used to repay debt • Profit after tax of approximately $85 million to be recorded in FY14 6

Transpacific 2013 Financial Year Results Group Income Statement – Statutory and Underlying Results For personal use only Statutory Results Underlying Adjustments Underlying Results A$ million % FY13 FY12 FY13 FY12 FY13 FY12 change Revenue from continuing operations 2,294.0 2,283.8 - - 2,294.0 2,283.8 0.4% 5.5 - 5.5 Share of profits in associates 2.9 - 2.9 89.7% Expenses (net of other income) (2,236.7) (1,888.5) 349.4 42.0 (1,887.3) (1,846.5) -2.2% EBITDA 62.8 398.2 349.4 42.0 412.2 440.2 -6.4% (185.7) - (185.7) Depreciation and amortisation (188.0) - (188.0) 1.2% EBIT (122.9) 210.2 349.4 42.0 226.5 252.2 -10.2% Net interest expense (103.3) (130.2) 0.3 - (103.0) (130.2) 20.9% (13.3) - (13.3) Non-cash finance costs (55.7) 33.7 (22.0) 39.5% Changes in fair value of derivatives 12.5 (15.6) (12.5) 15.6 - - - (Loss)/Profit before income tax (227.0) 8.7 337.2 91.3 110.2 100.0 10.2% 26.6 (50.6) (24.0) Income tax benefit/(expense) 23.5 (45.8) (22.3) -7.6% (Loss)/Profit from continuing operations after income tax (200.4) 286.6 86.2 32.2 45.5 77.7 10.9% Non-controlling interest (1.2) (3.1) - - (1.2) (3.1) -61.3% (Loss)/Profit after income tax and minorities (201.6) 29.1 286.6 45.5 85.0 74.6 13.9% SPS distribution (17.1) (16.6) - - (17.1) (16.6) 3.0% (Loss)/Profit after income tax attributable to ordinary equity (218.7) 12.5 286.6 45.5 67.9 58.0 17.1% holders Weighted average number of shares 1,578.5 1,351.9 1,578.5 1,351.9 Basic earnings per share (cents) (13.9) 0.9 4.3 4.3 Shaded area indicates IFRS disclosures in 2013 financial year statements. The non-IFRS information on this page, page 9 and page 30 have been subject to review by our auditors. Refer page 9 for reconciliation of detailed adjustments from Statutory Profit to Underlying Profit. Refer to pages 6 and 7 of the 30 June 2013 Directors ' Report for detailed explanations of underlying adjustments and definitions. 7