Painting the picture
Review of Operations
Australia
Wattyl brands
Estapol
Killrust
Solagard
i.d
Pascol
Aspects
The Professional Choice
Sunfast
Tradesman
Optima
Granosite
New Zealand
Key Points
•
Sales up by 1%
•
Improved price management
and focus on higher value product mix
•
Slight decline in volume resulting
from decline in housing market
•
Underlying EBIT up by 80%
•
Benefit of restructure program
and cost control $24 million
•
EBIT/Sales margin close to 7%
•
Focus on customer delivery,
brand and channel strategy
•
Completion of environmentally
enhanced low VOC paint system
Outlook
•
Focus on continuing improvement
•
Some recovery in housing market
possible in FY2008
–
Latest HIA projections 2.5% improvement
Key Points
•
Sales in local currency up by 2%
•
Challenging market conditions
•
Slight increase in sales volume
•
Difficult to recover increased costs
with higher sales prices
•
Lower EBIT impacted by:
–
Investment in own store
and distribution network
–
Introduction of environmentally
friendly low VOC tinters
•
Successful launch of (Taubmans) EcoProof
low VOC Interior Broad wall product into
the retail market
Outlook
•
Some improvement in the housing sector
forecast for the next two years
Wattyl brands
Solagard
Timbershield
Flexagard
Forestwood
HardiStain
Killrust
Estapol
Granosite
Roofgard
i.d
Colourwood
Pavegard
Highlights
Fence Finish
Solver brands
Maxi Wash
Duraguard
Easy Wash
Solvermaster
Sunflex
Polysol
Polyaqua
Brite-Glo
Hi-Tech Industrial Coatings
Taubmans brands
LivingProof
UnderProof
UltraProof
SunProof
EcoProof
Gaylon
Butex
TimberProof
Solpah
Trends
Tradex
Weatherglo
Easyflo
Australia
0333.90230.00118.70431.40511.70614.20725.6AGAAPAIFRSSales (A$m)EBIT (A$m)
before non-recurring items
03020104057.6066.6073.22.75.05.06.3AGAAPAIFRSWattyl Annual Report 2007 11
Samantha Tsang
Commercial Manager,
Sales & Marketing
Sales (A$m)EBIT (A$m)
before non-recurring items
New Zealand
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