BMCs-Best Execs-r2:AMM grid in qxp 12/24/09 9:42 AM Page 43
AWARDS
Corporatechampionsandoutstandingexecutives
Aclearbusinessstrategy,well-communicatedbusinessgoalsandopportunismweresomeofthetraits
possessedbyAsia'smostsuccessfulcompaniesduring2009.ASIAMONEYspeakswithfundmanagersand
analyststodeterminedthebestmanagedsmall,mediumandlarge-capcompaniesandthetopexecutives
fromacrosstheregion.
AUSTRALIA ForthefinancialyeartoJuly2009,DavidJonesreporteda14.2%
riseinprofittoA$156.5million(US$142.5million)ona5.4%dropin
SMALL-CAPCORPORATEOFTHEYEAR sales.Itreduceditscostofdoingbusinessbyalmost9%anditsnet
SuperCheapAutoGroup interestexpenseby46%.
Plus,itcutitsnetdebttoA$88million,fromA$446millionthe
previousyear,andboastedagearinglevelof11.4%,whileitsshare
Australia’sretailindustryreceivedwelcomegovernmentsupportthis pricehasrallied80%overthepastyear.
year,whenthecentralbankcutinterestratestospurconsumerspending OneAustralia-basedanalystsaid:“DavidJoneshasprettymuch
andauthoritiesdistributedtwocashhand-outsofA$950(US$870)in thelowestgearingofanyretaileraround.Nowtheyhaveshownthey
MarchandApril. canoutperformandtheyaregoingtocomeoutofthecyclealot
Theseactionsboostedthebottomlinesofmanyretailbusinesses.But stronger.”
SuperCheapAutoinparticularearnsplauditsforhavinggrownstrongly Anotherobserveradded:“Itwasdecentforesightandmanage-
inamatureindustry,gainedmarketshareandoutperformedpeers. mentthroughthecycle.Theypreparedthemselvesverywellandthen
Thegroupcomprisesthreebusinesses–SuperCheapAuto,BCF theycamethroughandbeattheiroriginalguidance.Itwasapretty
(Boating,Camping,Fishing)andGoldcrossCycles.Evidentlytheman- phenomenaleffort.Itwasjustgoodmanagement,gettinginthereand
agementhaslookedateachbrandonanindividualbasistoseewhere focusingoncostandmargins.”
capitalshouldbedeployed.
Ithasengagedinrefurbishingexistingstores,whichisdeliveringan
enhancedreturnoncapital,andhasbeensuccessfullyrollingoutitsBCF LARGE-CAPCORPORATEOFTHEYEAR
business. CommonwealthBankofAustralia
Thelatterstartedin2005withtheacquisitionoffourCampmart
stores.Ithasprovedamasterstroke,particularlywithfamiliesoptingfor
low-costrecreationalholidaysoverthepastyear. TheAustralianbankingsystememergedastheworld’sbestduringthe
BytheendofOctoberitsBCFbusinesshad61stores.Itisgenerating globalfinancialcrisis.Whileargumentscanbemadethattherelative
morethanA$205millioninannualsales,withlike-for-likesalesgrowth outperformancewasdownmoretoluckofgeographythansound
of12.5%. management,Asiamoneyfeltthatrecognitionwasmerited.
SuperCheapAutohasalsobeeninvestinginsupplychainandlogis- AttheheadofthepackisCommonwealthBankofAustralia(CBA).
tics,whichisdeliveringimprovedprofitability.Inthe12monthstoJuly Ithashadlessthanthepeeraverageofproblemloansandithascapi-
itreporteda25%increaseinannualprofittoA$32.1million,whilesales talisedonmarketshareopportunities,mostvividlyinthedomestic
improved16%toA$828.8million. mortgagemarket.
Despiteitscontinuedinvestmentingrowth,thegroupreducednet ItpurchasedBankWestatacheap0.8timesbookvalue,andsubse-
debtbyA$3.1millionduringtheyeartoA$115million. quentlytooka33%stakeinmortgagebrokerAussieHomeLoans,
Oneanalystsaid:“Ithasbeenabletolaunchinacompletelynewfor- withwhichitthenoutmanoeuvredNationalAustraliaBanktobuy
mat,BCF,overandabovetheautopartsbusinessandithasbeenastun- lenderWizardHomeLoans.
ningsuccess.Notmanyretailerscandothat.” Plusthebankhasbeenaheadofthecurveintermsofinvestingin
Althoughtherehavebeenteethingproblemssinceitsacquisitionof itsITsystems,inotherwordsnotjustmanagingthecrisisbutreinvest-
GoldcrossCycleslastJune,analystsareconfidentthecompanywillturn inginthebusiness.
itaroundquickly. “CBAlookedatthecrisisasanopportunityandhascomeoutofits
stronger,”notedoneAustralia-basedanalyst.“Thathasbeenitsaim,
topullawayfrompeers.”
MEDIUM-CAPCORPORATEOFTHEYEAR Intermsofperformance,CBArecordeda28%year-on-yearrisein
DavidJones revenuesanda24%riseinunderlyingprofitinfiscal2009.Although
pre-taxprofitactuallyfell6%,itisforecasttoexpandanindustry-
leading29%infiscal2010,byananalystestimate.
DepartmentstoreDavidJonesretainsits Asiamoneymid-captitlefrom CBArecordedthelowestbaddebtchargesandnetwrite-offsasa
lastyear,butnotwithoutafight,principallyfromexpandinghome percentageofloans,aswellasthelowestgrowthinbaddebtcharges
entertainmentfirmJBHi-Fi. at10%.
Bothbusinesseswereinthefiringlineintermsofconsumerspulling Intermsoftotalshareholderreturns,CBAhasbeenaclearoutper-
theirheadsinduringthefinancialcrisis,butasahigh-enddiscretionary former,itsshareshavingrisen85%byearlyDecemberfromthebegin-
retailerDavidJonesfacedgreaterheadwindsthanJBH. ningof2009,whileitmaintainedthehighestpayoutratioof75%.
DavidJonesoperatesamaturefranchise,soitdoesnothavethe “CBAhasrunthetightestbookofthelotandithasnothadthe
spacetoroll-outquiteasJBHi-Fidoes.Butthecompanymanagedto benefitofthebestfranchise,”notedoneanalyst.“Ithascertainlyhad
growprofitsdespiterecordingnegativecomparablestoresales. thelowestbaddebtrateandhashadtoraisetheleastamountofcapi-
Thefirmdidsobyimplementinganumberofcostinitiatives,includ- taltorepairanyratioshortfalls.”
ingrenegotiatingtermswithitssuppliers,refurbishments,repositioning Anotheradded:“QuitecleverlyCBAplacedtheburdenofcostaus-
theirofferings,targetinghigh-margincategoriesandsigninganew terityontheshouldersofthebankingbusinessratherthanonfund
agreementwithAmericanExpressforcreditcards. managementinparticular.
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