2009/10 investr update June 2010 Recrd interim result Strng cash flws cntinue Raw material pricing actively managed High level f acceptance f new technlgy Emery Severin Managing Directr Ian Davis Chief Financial Officer 1
Agenda Nuplex executive team General verview Trading update Business results SHE perfrmance Funding & capital structure, therfinancials Lking frward NZSC Actin Nte that all reference t currency is NZ$ 2
The Nuplex Bard Rb Aitken Independent chairman Lcatin: Sydney, Australia Skills: Chemical engineering, Internatinal business David Jacksn Independent directr Lcatin: Auckland, New Zealand Skills: Accunting, audit Michael Wynter Independent directr Lcatin: Sydney, Australia Skills: Legal, Asian business Emery Severin Barbara Gibsn Peter Springfrd Managing directr Lcatin: Sydney, Australia Independent directr Lcatin: Melburne, Australia Independent directr Lcatin: Auckland, New Zealand Skills: Internatinal business, Skills: Chemist, Chemical Industry Skills: Industrial cmpany senir Cnstructin Prducts General Management management, Asian business 3
Nuplex Executive Team Vice President Grup Human Resurces Vice President Planning & Strategy COO Nuplex Resins Rb Harmsen COO Functinal Materials & Specialties Sam Bastunas Grup GM Operatin Clive Deetlefs Chief Financial Officer Ian Davis General Cunsel & Cmpany Secretary James Williams Appintment pending Appintment pending Grup Purchasing Manager Grup General Manager Technlgy Regins Australasia Regins Australia Reginal peratins Australasia Asia New Zealand Asia Americas Americas Eurpe Eurpe 4
EBITDA a 20 year view Over 50 years f grwth 140 120 100 80 New Zealand centric Australian fcussed 60 40 Ai Asia, Eurpe, USA 20 0 91 92 93 94 95 96 97 98 99 '00 01 '02 '03 '04 '05 '06 '07 '08 09 10 New Zealand Australia Americas Eurpe Asia 5
Nuplex s glbal peratins & revenues Reginal Sales H1 2009 H1 2010 Eurpe Americas Asia Australasia 6
Trading update Demand China grwth cntinued ASEAN recvered t 2008 levels Australia and NZ recvery cntinued frm H2 2009 Eurpe steady imprvement and increased exprts USA shwing sme imprvement Margin Raw material csts steady thrugh Q3 but nw increasing Supply tightening n sme inputs Prduct mix mved twards higher sphisticatin Gd market penetratin frm new technlgy Managed csts Significant impact frm restructuring Fcus n discretinary spending cntrl effective Nn recurring csts FX impact Significant restructuring csts in Eurpe, Australia and NZ 7
Business Results 8
4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Grup lst time injury frequency rate LTIFR May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nv-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 Grup 9
Nuplex resins business EBITDA H1 2010 Earnings Segment Earnings By regin Earnings By market Resins NZ Australia Asia Eurpe Americas Cating Cmpsites Paper 10
Resins Eurpe 300 Relative EBITDA Perfrmance Market Exprt demand supprted Q1 Sme Eurpean recvery seen in Q2 and thrugh Q3 250 200 150 Margin Raw material csts steady thrugh Q3 but nw rising largely recvered thrugh price increases New technlgy giving imprved margin Imprved efficiency with higher h vlumes 100 50 0 H2 05 H1 06 H2 06 H1 07 H2 07 H1 08 H2 08 H1 09 H2 09 H1 10 Outlk Demand has cntinued t imprve in Q3 There is sme seasnality but underlying trend is up New technlgy cntinues t be a psitive factr Restructuring a wrk in prgress H2 2005 = 100 11
Resins Americas 120 Relative EBITDA Perfrmance Market Sme signs f demand recvery in Q3 but future is still uncertain 100 80 60 40 Margin Steady material csts thrugh Q3 but trending up largely recvered thrugh price increases Majr restructuring reduced fixed csts Eliminated i Brazil illss Better prduct mix 20 0 H2 05 H1 06 H2 06 H1 07 H2 07 H1 08 H2 08 H1 09 H2 09 H1 10 Outlk Sme signs that ecnmy is strengthening with demand recvering in Q3 New technlgy t assist H2 2005 = 100 12
Resins Asia 700 600 Relative EBITDA Perfrmance Market China still grwing strngly Aut industry key ASEAN regin bunced back in Q2 and Q3 Demand back t 2007/08 levels 500 400 300 Margin Steady material csts in Q3 but increasing largely recvered thrugh price increases Imprved efficiency Grwth in specialties 200 100 0 H2 05 H1 06 H2 06 H1 07 H2 07 H1 08 H2 08 H1 09 H2 09 H1 10 Outlk Sustained grwth but at a lwer rate Raw material cst and availability pressures Expansin plans cntinuing but experiencing i dl delays in China due t regulatry changes H2 2005 = 100 13
Resins Australasia Relative EBITDA Perfrmance Market 140 Recvery evident, strng in Q2 and sustained in Q3 120 Vlumes remained belw prir year 100 80 60 40 Margin Raw material csts rising in Q4 anticipate these will be largely recvered thrugh price increases Sme restructuring 20 0 H2 05 H1 06 H2 06 H1 07 H2 07 H1 08 H2 08 H1 09 H2 09 H1 10 Outlk Steady imprvement in demand Cmpsites segment recvering H2 2005 = 100 14
Specialties Australasia 100 Relative EBITDA Perfrmance Market 120 Demand generally weak in NZ Industrial markets shrinking Australia patchy but strnger Supply f sme cmmdities tightening 80 60 40 Margin Generally eliminated lw margin sales Higher average margins Lwer wrking capital 20 0 H2 05H1 06H2 06H1 07H2 07H1 08H2 08H1 09H2 09H1 10 Outlk Imprving demand Sme grwth frm new prducts H2 2005 = 100 15
Funding & capital structure, ther financials Nte that all reference t currency is NZ$ 16
Debt psitin 31.12.08 30.06.09 31.12.09 Equity 368,873 521,622 518,536 Capital Ntes 52,381 52,417 52,568 Bank Debt 370,965 195,307 116,843 * Finance Leases 758 969 767 Cash n Hand 68,898 119,499 71,146 Net Debt 352,206 129,194 99,032 * Ttal available bank facilities AUD300M 17
Interest Capital ntes at 9.3% Bank debt interest effectively 14.0% Cmbinatin f Quantum f facilities available Margin Nearly all debt nw fixed rate Amrtisatin f csts Anticipate 2009/10 interest csts t be $20 millin 18
Grup utlk Trading cnditins generally stabilising ANZ shuld hld at higher level Asia t cntinue mmentum albeit at a lwer rate Americas nw shwing sme signs f recvery Eurpe trend shws cntinuing recvery but sme uncertainty 80,000 70,000000 60,000 50,000000 Back n track Raw material csts t increase significantly 40,000 Reasnable cnfidence that they will cntinue t be recvered thrugh price rises t maintain 30,000000 margins at nrmal levels Sme supply issues emerging 20,000 Fixed csts t remain lw 10,000 Restructuring t cntinue Efficiency gains t be lcked in as vlumes recver 0 Cash hdemand dt be met frm perating cash flw H2 05 H1 06 H2 06 H1 07 H2 07 H1 08 H2 08 H1 09 H2 09 H1 10 NZ Australia Asia Eurpe Americas Ttal Aggregated reginal EBITDA 19
Lking frward Regin Frecast Cmments Americas Asia Sme demand recvery appearing Significantly lwer peratinal cst base Gains frm new technlgy Grwth t cntinue at lwer rate Benefits frm Cmpsites capacity in H2 Sme tightening f margins Australia Market t be relatively similar t 08/09 Anticipate sme recvery in Cmpsites in H2 Lwer peratinal cst base Eurpe y p New Zealand Market culd stall but still cautiusly ptimistic Restructuring benefits in later years Gains frm new technlgy Market in slw recvery phase High fixed cst psitin being addressed Crprate csts exceeding peratinal prfits Crprate Interest csts much lwer than 08/09 Lw capital expenditure requirements until 2011 New executive team in place in new fiscal year 20
Guidance EBITDA range at $125 135 millin cnfirming the previus guidance On track fr a recrd result Largely driven by demand and sme margin recvery FX impact negative due t higher NZD thrugh April 2010 Strng peratinal cash flw remains the bjective Higher raw material csts and increased demand will increase wrking capital needs but the ratis are being tightly managed 21
NZ Securities Cmmissin NZSC cmmenced civil iilclaim li against cmpany and the directrs NZSC allege breach f cntinuus disclsure bligatins Cmpany and directrs deny the allegatins and have filed their defence Cmpany and directrs believe their psitin is strng NZSC has cnsented t have claim transferred t Auckland High Curt Nninvlved directrs t independently versee Cmpany s defence Trial is unlikely t be until 2011 22
THANK YOU 23