Friday 16th August 2002
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John Bongard: Foreign currency exposures are hedged in accordance with a policy approved by the Board of directors. This requires net current and anticipated cash flows to be hedged with options and forward exchange contracts.
The cost effectiveness of hedging arrangements is measured against spot currency exchange rates and reported to the Board monthly.
John Bongard: We have hedging in place that will protect the business from exchange rate movements through to March 2003.
The main currency exposures are USD/NZD and AUD/NZD.
We have a natural hedge for the USD/NZD component of our business and we have a policy of covering only our nett exposure, therefore we are taking no cover against USD/NZD.
For AUD/NZD we have forward cover in place for approximately 50% of our export exposure through to March 2003 at rates between A$0.81 and A$0.82.
John Bongard: We have no intention of disposing of this investment in the immediate future as the Directors believe shareholder value will be maximised by taking a longer term view.
John Bongard: Our OEM agreement with Whirlpool does not preclude us from entering the European market with our own brand. In fact, we have appointed distributors for the Fisher & Paykel brand in Scandinavia, Germany, Austria , Switzerland, Holland and Greece.
We do follow different distribution strategies in different countries all over the world. These strategies vary according to language requirements and logistical efficiencies.
We definitely see Fisher & Paykel as a viable global brand in its own right but we also see OEM relationships as an efficient way to utilise spare capacity in our plants.
John Bongard: The full impact of our arrangement with Whirlpool will not be obvious until our next fiscal year.
John Bongard: Our first shipment of Dishdrawers did not reach Japan until last month so it is too early to make any accurate predictions. None the less we would be very happy if the arrangement resulted in 4-5,000 pieces per year.
John Bongard: We are very happy with the progress of the Company since the split. We believe that shareholder value has indeed been enhanced and we are confident that the split was the right course of action.
John Bongard: New Zealand very closely follows the WTO guide lines for dumping and as such we believe the regulations are fair. Our Exclusive Dealing Arrangement in New Zealand is not linked in any way to the issue of dumping.
John Bongard: Like all businesses the initial reaction was negative as quite naturally peoples focus went to the tragic events of the day. This sentiment was obvious for about 3 weeks then we all started to regain our normal day to day routines. Since about mid October we noticed trade returning to a more normal level and since has come away well.
John Bongard: We have not in the past but I think your suggestion is a good one. Alastair MacFarlane the MD of our finance operation did make a presentation at our recent AGM so maybe that is a good start.
John Bongard: Your comments have been passed on to our web master. The confusion is in the Corporate area of the site and this is being fixed now. As far as product and other information on the site this is up to date. Thanks for your help.
John Bongard: We are working very hard to continue our run of good results.
John Bongard: We would never say never but in the foreseeable future the answer to your question is no.
John Bongard: We do use the fact that we have won many awards in our off shore advertising and it is a point that we do capitalise on. As a point of interest Dishdrawer is not the only award winner. we have won many awards for Active Smart refrigerators, Smart Drive Washers, Built in wallovens and most recently in the USA Gas cooktops.
John Bongard: Our biggest challenge is to maintain the sales growth momentum we have in Australia, USA and Europe.
We are optimistic about the future of our business.
ShareChat thanks John Bongard for taking part in this Investor Interview.
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