billabong international limited half year · pdf filebillabong international limited . 31st...

HALF YEAR RESULTSBILLABONG INTERNATIONAL LIMITED

31st DECEMBER 2013

Teen surfing sensationJACK ROBINSONBackdoor Hawaii 09/02/2014

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES

For

per

sona

l use

onl

y

Not an offerThis Presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. Neither the entitlements nor the New Shares have been, nor will be, registered under the U.S. Securities Act of 1933, as amended (U.S. Securities Act) or the securities laws of any state or other jurisdiction of the United States. Accordingly, the entitlements may not be issued to, purchased or traded by, or taken up or exercised by, and the New Shares may not be offered or sold, indirectly, in the United States except in a transaction exempt from, or not subject to, the registration re-quirements of the U.S. Securities Act and any other applicable U.S. state securities laws.Future performanceTo the extent this Presentation contains certain “forward-looking statements”, the words “forecast”, “estimate”, “likely”, “anticipate”, “believe”, “expect”, “project”, “opinion”, “predict”, “outlook”, “guidance”, “intend” ,“should”, “could”, “may”, “tar-get”, “plan”, “consider”, “forecast”, “aim”, “will” and similar expressions are intended to identify such forward-looking state-ments. Indications of and guidance on future earnings and financial position and performance are also forward-looking statements as are any statements in this Presentation regarding the conduct and outcome of the Entitlement Offer and the use of proceeds. You are cautioned not to place undue reliance on forward-looking statements. While due care and atten-tion has been used in the preparation of any forward-looking statements, any such statements, opinions and estimates in this Presentation, are based on assumptions and contingencies subject to change without notice, as are statements about market and industry trends, projections, guidance and estimates.Any forward-looking statements contained in this Presentation are not guarantees or predictions of future performance and involve known and unknown risks and uncertainties and other factors, many of which are beyond the control of Billa-bong, and may involve significant elements of subjective judgment and assumptions as to future events, which may or may not be correct. Actual results, performance or achievements may vary materially from any forward-looking statements and the assumptions on which such statements are based. Investors should consider any forward-looking statements contained in this Presentation in light of those disclosures. Any forward-looking statements are based on information available to Bil-labong as at the date of this Presentation. Except as required by law or regulation (including the ASX Listing Rules), Bil-labong undertakes no obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise.Financial dataInvestors should be aware that certain financial data included in this Presentation are “non-GAAP financial measures” un-der Regulation G of the U.S. Securities Exchange Act of 1934. These measures include EBITDA, EBIT, EBITDA Margin, net debt and gross debt. The disclosure of such non-GAAP financial measures in the manner included in the Presentation may not be permissible in a registration statement under the U.S. Securities Act. These non-GAAP financial measures do not have a standardized meaning prescribed by Australian Accounting Standards and therefore may not be comparable to sim-ilarly titled measures presented by other entities, and should not be construed as an alternative to other financial measures determined in accordance with Australian Accounting Standards. Although Billabong believes these non-GAAP financial measures provide useful information to users in measuring the financial performance and condition of its business, inves-tors are cautioned not to place undue reliance on any non-GAAP financial measures included in this Presentation.

BILLABONG HALF YEAR RESULTSNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES

For

per

sona

l use

onl

y

BILLABONG HALF YEAR RESULTSNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES < 1 >

NEIL FISKECHIEF EXECUTIVE OFFICER

For

per

sona

l use

onl

y


TODAY

1 | SUMMARY OF RESULTS

2 | AN UPDATE ON OUR TURNAROUND PLAN

3 | FINANCIAL DETAILS

For

per

sona

l use

onl

y


OVERVIEW

$576.8m*

$126.3m$42.4m*

GROUP REVENUEThis is a complex, difficult turnaround. We are not daunted by challenges we face, but neither do we underestimate them.

Net loss after tax(including signifcant items)

GROUP EBITDA

Neil FiskeChief Executive Officer

*Continuing operationsFor

per

sona

l use

onl

y


SUMMARY OF RESULTSF

or p

erso

nal u

se o

nly


AMERICAS RESULT

•SouthAmericaaccounts

for approximately half of the

Amercias EBITDA decline

•Salesreductiontocloseout

channel lowering revenues

•Cyclicaldeclineimpacting

Sector 9

•18monthsofleadership

distraction and organisational

turmoil - impacting all brands

IMPACT ACTIONS•NewPresidentAmericas-

Ed Leasure

•NewleadershipoverLatin

America - Felipe Motta

•Rebuildingtheorganisation

and talent bench

•SoldWest49

•DistributoragreementsinPeru

& Chile

For

per

sona

l use

onl

y


RE-ALIGNING THE ORGANISATION TO THE STRATEGY

•Buildstrongglobalbrandteamsthatarelocally/regionallyresponsive

•Distortemphasisonthebigthree(Billabong,Element,RVCA),while

providing a structure supportive of attractive emerging brands

•Developanenhancedmerchantfrontendtodriveassortment

productivity and focus

•Re-orienttheregionsasthesales,localmarketinganddistribution

partners of the brands

•Buildglobalscaleandcapabilityincriticalsupportfunctions:

finance, IT, supply chain, direct to consumer platform, HR

For

per

sona

l use

onl

y

BILLABONG HALF YEAR RESULTSNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES <8>

ORGANISATION STRUCTUREBRANDS REGIONS GLOBAL FUNCTIONS

CFO, CHRO, COO,TURNAROUND OFFICE

• Unifyplatforms• Developprocesscapability and disciplines• Cutcosts• Improvequalityanddelivery• Responsibleforcost,quality, speed KPIs

Objective:Buildglobalscale,capability, efficiency to lower cost base and improve delivery

PRESIDENTS OFAMERICAS, ASIA PACIFIC,

EUROPE

• Partnerwithbrandteamson local/regional customer needs• Drivessales,channel development• Implementcountrygoto market tiering• Overseegrowthofemerging brands based in region• RegionalP/Laccountability

Objective:Drivesales,distribution,channel development, go to market tactics

GLOBAL BRAND HEADSBILLABONG, ELEMENT,

RVCA

• Brandheadselevatedto direct CEO reporting• ResponsibleforGlobal Merchandising, Design and Marketing• PartnerwiththeRegional GMs on go to market strategies•GlobalbrandP/Laccountability

Objective:maximisethepotentialof the big three

For

per

sona

l use

onl

y


EXECUTIVE APPOINTMENTS•Extensiveexperienceincomplexturnaroundsituations•PreviouslyranHRforAmexTravelandIntrawestResorts•Reflectsourbeliefsthat; o People are our biggest asset o The turnaround depends critically on talent and teaming o Success will require extensive communication, culture shaping and change management

•Extensiveexperienceasaturnaroundspecialist,including o Post Merger Integration of BI-LO/Winn Dixie o Burger King o Pepsi-Cola International (CFO)•Reflectsourunderstandingofthecomplexityandmagnitudeofthe turnaround

Further executive appointments at advanced stage

Bennett NussbaumTurnaround Office

Mara PagottoChief Human Resources Officer

For

per

sona

l use

onl

y


EXECUTIVE APPOINTMENTS

•Over20yearssurfindustryexperience•HeavilyinvolvedingrowingBrandBillabongglobally•GrewAsiaPacificoperationsfrom$190milliontoover$450million. Reflects our belief in the importance of the brand’s Australian heritage, credibility and authenticity within the core surf and action sports market.

•PaulBurdekinappointedActingGeneralManagerAsiaPacific

Key appointments made in Marketing, Billabong Womens, Product, Merchandise,Design and Finance.

Shannan NorthGlobal Billabong Brand President

For

per

sona

l use

onl

y


THE NEXT SIX MONTHS... BRAND

•Re-signedfounders

•Re-signedASP2012WorldChampion-

Joel Parkinson

•Signednextgenmarqueeathletefor

Billabong - Jack Robinson

•BillabongWomensteam

•Portfolioreview

•Brandbooks,guidingdocuments

For

per

sona

l use

onl

y


THE NEXT SIX MONTHS... PRODUCT

•MerchantFrontEnd:process,tools,talent•“FewerBiggerBetter”assortmentplanning,including o Line architecture o Global/regional balance o Category hierarchy and growth plans o Narrow assortment by 30%+ o Design to adopt ratios•StrengthenMerchantand Design teams

For

per

sona

l use

onl

y


THE NEXT SIX MONTHS... MARKETING

•RestructureBillabongmarketing

•Marketingtalent

•Integratedgotomarketcalendars

•CRMplatformandprograms

•RVCAmarketingacceleration

10.5mFOLLOWERSGLOBALLYCOMMITTED TO OUR BRANDS.

For

per

sona

l use

onl

y


THE NEXT SIX MONTHS... OMNI-CHANNEL

•SaleofWest49

•StrategicreviewofSwell/SurfStitch

•Repatriatemono-brandecommercesites

•HeadofdigitalcommerceforBrandBillabong

•DrivingprofitimprovementinANZretail

•Re-evaluatemulti-brandretailoutsideofANZ

•Wholesalewin-back:keyaccounts

•RevampUSsalesteam

•Countrygotomarketmodel:tier1,2,3.

•TransitionChile,Peru,SouthAfrica

For

per

sona

l use

onl

y


THE NEXT SIX MONTHS... SUPPLY CHAIN

•Supplychainleadership

•Globalsupplychainre-design:

speed and turn

•Walkshortsglobalsourcingpilot

•Expandglobalsourcingpilotto

four categories

•ContinuediversificationoutofChina

•LowercostlogisticsplanforEurope

and Australasia

For

per

sona

l use

onl

y


THE NEXT SIX MONTHS... FINANCIAL DISCIPLINE

•$135Millionplacement

•$50Millionrightsoffering

•TurnaroundOfficeimplementationtracking

•Costreductiontofundthemarketing

war chest

•Inventorymanagement

•RationaliseCapex;focusoncustomer

facing projects

•BusinessIntelligence(phase1,standardise

reporting and decision making)

For

per

sona

l use

onl

y


Brand •Re-signedfoundersofElement,RVCAandVonZipper

•Re-signed2012ASPWorldChampJoelParkinson

•SignedmarqueenextgenerationathleteJackRobinson

Portfolio actions•SoldWest49

•StrategicreviewofSurfStitchandSwell

Go to market changes•Countrytiering

•Chile,Perutodistributormodel(Forus)

•SmallerbrandstodistributorsoutsideofTier1countries

Restructuring•Organisationalre-alignment

•Europedownsizing

•SouthAfricarestructuring

SUMMARY OF ACTIONS TO DATEF

or p

erso

nal u

se o

nly


SUMMARY OF ACTIONS TO DATETalent•Executiveteam:EdLeasure,Jean-LouisRodrigues, Mara Pagotto, Bennett Nussbaum•GlobalBillabongBrandPresident:ShannanNorth•BillabongWomensteam(GlobalGMSusanBranch,GlobalDesign Lisa Stemmler, Global Merchandising, Global Marketing)•BillabongMensDesign:BradLancaster•BillabongSales:JasonShelton(US)JustinCook(Australia)•BillabongCreativeMarketing:MichaelMinter•ActingGeneralManagerAsiaPacific:PaulBurdekin•LatinAmericaVicePresident:FelipeMotta•MerchantandDesignbenchstrengthFinancial / Corporate•$135Millionplacement•$50Millionrightsoffering•ABLcompleted•Boardrenewalcomplete

For

per

sona

l use

onl

y


For

per

sona

l use

onl

y

DisclaimerBillabong International Limited (Billabong) does not accept any liability to any person, organisation or company for any loss or damage suffered as a result of reliance on this document. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, and are subject to variation. All forward-looking statements in this document reflect the current expectations of Billabong concerning future results and events.

Any forward-looking statements contained or implied, either within this document or verbally, involve known and unknown risks, uncertainties and other factors (including economic and market conditions, changes in operating conditions, currency fluctuations, political events, labour relations, availability and cost of labour, material and equipment) that may cause Billabong’s actual results, performance or achievements to differ materially from the anticipated results, performance or achievements, expressed, projected or implied by any forward-looking statements.

BILLABONG HALF YEAR RESULTSNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES

For

per

sona

l use

onl

y

billabong international limited half year · pdf filebillabong international limited . 31st...

Documents