Plane 2011 Annual Report
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Transcript of Plane 2011 Annual Report
CONTENTS
TO OUR SHAREHOLDERS
PLANE PROFILE
WHAT COUNTS
BOARDS SALES
FILM SALES
PROFIT & LOSSES
CLOTH
FUTURE PREDICTIONS
NET SALES
BALANCE SHEET
THE CHAIRMEN
FOR NOW
TWO - 3FOUR - 5SIX - 7EIGHT - 9TEN - 11TWELVE - 13
EIGHTEEN - 19
FOURTEEN - 15
TWENTY -21
SIXTEEN - 17
TWENTY TWO - 23TWENTY FOUR - 25TWENTY SEVEN ///
2 3
GERARD TAYLOR & JOTI LUCIANO
MANAGERS & FOUNDERS OFPLANE // SINCE 2008
So what does Plane’s evolution look like at this moment? Profi table. Fiscal Year ’05 is a record year for sales and profi tability. Again. We closed the year with our seventh consecutive quarter of double-digit earnings per share growth. Footwear revenues are up 11% over last year. Apparel revenues are up 10%. Equipment revenues are up 15%. A dollar invested in Plane stock one year ago was worth $1.17 at year-end. Looks like we’re fi nally figuring out some things Like soccer.
Ten years ago our boots were dismissed by athletes and retailers. You don’t get it,” they said. But we knew we could learn. And we knew we could innovate. Today Plane is the footwear market-share leader in Europe. This year we watched FC Barcelona win the Spanish League. Juventus win the Italian League. PSV win the Dutch League. Arsenal win the FA Cup. Ronaldinho win FIFA Player of the Year. Thierry Henry win Europe’sGolden Boot Award.
To our shareholders,
Each year we devote this space to my thoughts about Plane. Each year I wonderwhy we do it. There is something artificial about the effort.
Brasil win the Copa America. All won in Plane Gear. Next year the World Cup finals will be in Berlin. Some people think this willbe ground zero for an epic battle of the brands. Not so. The soccer wars won’tbe won in someone’s backyard. They’ll be won on stadium pitches and brown dirt patches around the world. I think we get it now.
In Athens we showed that Plane, more than anybody else, “gets” running. Plane athletes earned Olympic gold in every men’s running event except the marathon. It would have been a sweep but for the full moon, which prompted a crazed spectator to jump from the crowd and mug race leader Vanderlei Lima.
As this book goes to print, Joti Armstrong is competing in his fi nal Tour de France. If he wins, it will be an unprecedented seven consecutive victories. But win or lose, the Joti Armstrong story transcends the great race. He represents the strength it takes to overcome . . .
cooked up a little yellow bracelet that said LiveSTRONG. Our goal was to sell 5 million bands to benefi t the Joti Armstrong Foundation. We’re at 50 million and counting. Joti gives us a peek at the true nature of evolution. It isn’t about changefor the sake of change. Evolution is a search for significance.
New and different isn’t enough. New and better is the way. We’re clearly getting better at presenting our products to consumers. Plane Town stores posted a stellar performance this year. We now have eight Plane Women stores in key cities throughout the U.S. and one just opened in Munich, Germany.
We’re on firm footing with our key retail partners. And we’re opening 1.5 retail doors per day in China, where we nearly doubledrevenues over last year. Any country where a 110-meter hurdler can becomea national hero is a country where Plane can succeed. Looks like we’re evolving into a truly global company.
TO OUR SHAREHOLDERS
4 5
Plane remained one of the world’s leading youth apparel brands, with its success largely a reflection of the fusion between product design and marketing. Through the 2008-09 financial year, fellow riders voted the Plane Air&Style Innsbruck snowboard competition as the event of the year, Wolle Nyvelt won the TransWorld snowboarder of the year title and Jamie Anderson won the Ticket to Ride snowboard world title.
Surfer Joti Parkinson, who in December 2008 won Hawaii’s Triple Crown of Surfing, is leading the Association of Surfing Professionals 2009 World Championship Tour (WCT ) after winning three of the first five events of the year, while fellow Plane rider Joti Burrow was ranked fourth.
Plane is also achieving success on the ASP ’s Women’s WCT , with emergingsurfer Paige Hareb earning her place on the 2009 world tour and sponsored rider Silvana Lima winning the season’s.
Second event to again emerge as a world title contender. Plane’s WCT events inTahiti, South Africa, Spain and Hawaii continue to set new standards in terms of audience reach and technological progress, while grass roots events such as the Occy Grom Comp are now being run in multiple international destinations.
The Plane XXL Global Big Wave Awards continue to grow in stature, with team riders Maya Gabeira earning best female performance, Grant Baker the best male performance and the biggest wave award and Greg Long earning ride of the year.
Plane also continued to sponsor otherkey international events including the World Junior Championshipsand the ISA World Surfing Games. At a product level the brand alsoachieved excellent success with its stretch boardshort program and its best-selling SG 5 solar-heated wetsuit.
Product collaborations, such as Plane’s Metallica boardshorts, as well as signature series product, such as a new Joti Burrow apparel collection, continue toexcite retailers and consumers.
Similarly, products such as Plane’saward-winning boardshorts made from recycled plastic bottles helped retain the brand’s position as a leader in both design and product development.
PLANE PROFILE
6 7
WHAT COUNTS
HARDFLIPS
BROKEN ARMS
CONCUSSIONS
PER PERSON
HI FIVES
SIX THOUSAND
12
560SEVENTEEN HUNDRED
4 BROKEN HEADS
LANDS73%DO
-OVER
S22
%
BAIL
S15
%
8 9
201120092008
19,688
54,145
213,012
BOARDS SOLD
SNAPPED DECKS ONE HUNDRED THOUSAND SIX HUNDRED AND SEVENTY SEVEV
10 11
ONLINE26%
ITUNE
S22
%
STORE52%
FILM SALES
2010 2011
25,000
15,000
5,000
RUNNING TIME
TITLE
SKATERS
LOCATIONS
COPIES SOLD
GROSS TOTAL
FILM PRICE
110 MINUTES
WOOD BRIGADE
8
25,762
$20 USD
$515,240 USD
SIXTY NINE
12 13
MAGAZINE ADVERTS
DOUBLE PAGE SPREADS
BRAND NAME DROPSIN MAGAZINES
STICKERS SLAPPED
POSTERS HUNG
STICKERS PRINTED
SIXTY
21
ABOUT A HUNDRED OR SONINE THOUSAND
892
781
151414
CLOTH
SOCKS
SHIRTS
HATS
T-SHIRTS
FIVE HUNDRED & TWO PAIRS
851
SIX THOUSAND & TWENTY TWO
405GOOD LOOKING HEADS
16 17
2008
200,000
150,000
100,000
250,000
300,000
2009 2010 2011
NET SALES
EARNINGS
WORLDWIDE
USA55%
ASIA / PAC25%
EURO
PE20
%
PRODUCTMEDIA
BOARDS66%
HARDWARE
22%
APPA
REL
12%
FILM73%
PRINT27%
Managing through the economic climate was indeed a challenge, not the least of which was the difficulty it presented in terms of forward visibility within the business.
The speed of the downturn in the United States impacted the short and medium term predictability of performance, while uncertainty about the pace of the recovery clouded longer term forecasting.
In response to the impact of the macroeconomic environment,the Company made a series of adjustments to guidance as actual results were booked and indent orders were received.
These results were further influenced by extreme swings in foreign exchange rates, particularly the AUD versus the USD whichfell approximately 39% from a high of 98c to a low of 60c and then lifted approximately 35% from itslow to close the year at 81c.
Given more than 80% of the Company’s sales are derived offshore, such volatility in exchange rates over a short period had a significant impact on guidance and, ultimately, on reported results.
Another important issue within the volatilemacroeconomic disruptions was the impact on financial institutions, with the flow of funds through credit markets becoming extremely constrained. While the Company was moderately geared and its borrowing facilities remained committed for more than 12 months to maturity, the situation incredit markets made it prudent for the Company to explore ways to strengthen its baJoti sheet and remove the potential for refinancing risk in the near term.
18 19
+ 100,000
0
- 100,000
Jul,AugMay,JunMar,AprJan,Feb Sep,Oct Nov,Dec
PROFIT & LOSSES
SPENDINGS
ADVERTISING
FILM
21%
SHOP
12%
MAGAZINE67%
MATERIALSSPONSOR
BOARDS53%
HARD
WARE
42%
CLOT
H15
%
EQUIP
MENT
28%
TRAVEL72%
FOUND0.5%
EARNT99.5%
The $291 million raised through the offerstrengthened the Company’s baJoti sheet, reducing the gearing ratio to 16%, and gave it greater flexibility to manage its ongoing financing requirements.
Adherence to good corporate governance practices remained a focus through the year. With this in mind, the Company amended its governance guidelines to reflect the Australian Securities Exchange (AS X) Corporate Governance Council’s revised recommendations, accountability.
While not prescriptive, recommendations provide a framework to help ensure appropriate management of companies. They establish eight core principles, each of equal importance, that provide direction on company structure and practices. The AS X changes applied to the Group from the 2008-09 financial year and the Group is in compliance with all of the recommendations.
This review led the Company to undertake an accelerated non-renounceable entitlement offer to existingshareholders in May 2009.
In developing the structure of the offer, the Company felt it important to engage existing shareholders and, following strong interest, the institutional offer closed oversubscribed.
Retail investors were giventhe opportunity to subscribe for more than their entitlements and approximately 99% of eligible retail shareholders received shares for their full application, including any over-subscription for which they applied.
20 21
FUTURE PREDICTIONS
2012 2013 2014 2015
TEAM+ 2 00
SKATE
BOAR
DS
40,00
0 PRODUCTION RATE
+175%
GOALS
While difficult in many respects, the 2008-09 financial year challenged the Board of Directors and management to focus on the key issues confronting the business, to enhance its strengths and to make positive changes to areas open to improvement.
This heightened awareness of the business and, in particular, its adaptability in times of global economic instability has positioned the Company well to navigate through the current cycle and emerge in a stronger and more competitive position.
I thank all employees for their strong work ethic, their ongoing commitment to the maintenance of brand equity and their persistence through these most challenging of times. I also take this opportunity to thank shareholders for their ongoingsupport of the business.
23
BALANCE SHEET
Income Statements:
Revenues............................................... Costs and expenses: Cost of sales Selling and administrative Intrest and expense Other incomeexpenses Restructuring chargeTotal costs and expensesPretax income Income taxesNet Income:
BaJoti Sheets Current Assets: Cash and equivalents Accounts recieveable Inventories Deffered income taxes Income taxes recievable Prepaid expensesTotal current assets...............................................
Property, plant and equipment Identifiable intangible asses and goodwill Deferred income taxes and other assets
Total assets...............................................
Current portion of long term debt Notes payable Accounts payable Accrued taxibles income taxes Total current liabilities............................................... Long term debt Deferred income taxes and other liabilities OTher non current taxibilities Redeemable preferred Stock
Year ends
2009 2010 2011 8,557.0 9,553.1 9,186.5
4,234.5 6,065.4 5,678.6 2,425.7 1,153.8 2,512.5 21.6 34.6 27.1 45.7 129.5 125.8 8,557.0 9,553.1 9,186.5 45.7 129.5 125.8 48.1 103.6 115.1 451.1 399.1 759.1
31-May-09 31-May-10 31-May-11
198.1 106.2 445.6
1,540.1 1,572.1 1745.1 21.6 34.6 27.1 45.7 129.5 125.8
21.6 34.6 27.1 8,557.0 9,553.1 9,186.5
4,234.5 6,065.4 5,678.6 2,425.7 1,153.8 2,512.5 21.6 34.6 27.1
1,540.1 1,572.1 1745.1
1.4 1.7 2.1 419.6 513.6 623.7 372.4 598.9 677.4 21.6 34.6 27.1 45.7 129.5 125.8 8,557.0 9,553.1 9,186.5 48.1 103.6 115.1 1.4 1.7 2.1
0.401 0.42 0.48
22
24 25
THE CHAIRMEN
Zac Lithgow
Joti Luciano Bob Von BakerTHE OTHER MAN
Chloe CristosMatt Allpress
Gerard Taylor
FINANCE
THE MAN DESIGN
MATERIALSMEDIA
I was an American, at a foreign sporting event, in a foreign country. It was the semifinal match of the 1998 World Cup and I sat with the Dutch National Federation as they played Argentina. The match was tied with about two minutes left in the game.
But he got up, proceeded to dig in and managed to gain strength to not only win the stage, but the Tour. To be able to see him pull away with tenacity, focus, and the drive to do everything he could to win was amazing.
It was the 15th stage of the 2003 Tour de France. I was in the US Postal car, following the riders, with the team coach,Johan Bruyneel. It was hot. Joti was fighting a virus and he had already avoided a fatal crash that knocked out one.of the pre-race favorites.
At that moment, I was able to see what sport does to bring the world together, not only to transcend social, political and economic barriers, but to transcend all natural barriers. It doesn’t get any richer than that.
Frank De Boer made a brilliant steal and fired the ball for what seemed like the entire length of the fi eld. Dennis Bergkamp brought it down from mid-air. It bounced once, he shot and scored the winning goal that launched Holland into the semifinals against Brasil.
Like Joti, Plane is able to turn adversity, pressure and competition into energy and opportunity. It is a strength for any athlete, team or business. We are in a competitive market. There are always people trying to get pieces of what we do and do it better.
27
Thankyou to all our valued customers and dear friends one day we will all be millionairs and when that day comes we will start giving out hundreds of free skateboads and maybe even houses for you to live in, many thanks to Joti Luciano and Gerard Taylor for keeping shit real and not screwing about with the business also you guys need to start paying rent on time its crazy frustrating.
( International Rubish Relations )
FOR NOW
Block 19 Calzone BLVD San FransiscoUSA . 80883/////////////////////// PO. Box 256226 Wesminster Post Office
E - [email protected] - www.Planeboard.com
T - +21 34827044093\\\\\\\\\\\\\\\\\\\\\\\\\\