Oldfields Holdings Ltd · ASX:OLH
Oldfields — Shareholder Meeting (November 2016)
29 slides from Oldfields's shareholder meeting presentation, Nov 24, 2016
Slide 1: Oldfields Holdings Limited Annual General Meeting
OLDFIELDS HOLDINGS LIMITED ANNUAL GENERAL MEETING 24TH NOVEMBER 2016 1
Slide 2: Board & Executives
Board & Executives • Lewis (William) Timms, Chairman • Steve Hooper, Non Executive Director • Tony Grima, Managing Director & CEO • Greg Park, Company Secretary & CFO Slide 2
Slide 3: Order of Business
Order of Business • Welcome and Introductions • Chairman’s Address • Chief Financial Officer’s Address • Non-Executive Director’s Address • Chief Executive’s Officer’s Address • Items of Business • Open Discussion Slide 3
Slide 4: Chairman's Address
CHAIRMAN’S ADDRESS CHAIRMAN’S LEWIS TIMMS ADDRESS Lewis Timms Slide 4
Slide 5: 2016 Financial Results
2016 Financial Results 2016 2015 Change $k $k % Group Revenue (Net) 28,420 27,380 +3.8% R Net (Loss) Profit after Tax (722) (1,102) +34.4% Interest & DSLN Debt Revaluation 634 711 Depreciation & Amortisation 1,434 1,361 Income Tax Expense 352 234 Foreign Exchange Gain (37) (39) EBITDA 1,661 1,165 +4
Slide 6: Company Secretary & CFO
COMPANY SECRETARY & CFO COMPANY SECRETARY & CFO GREG PARK Greg Park Slide 6 6
Slide 7: FY16 EBITDA Movements Against Prior Year
FY16 EBITDA Movements Against Prior Year Net +$529k +$682k $1,661k Scaffold Consumer $1,165k +$888k Revenue Growth +3.8% Scaffold EBITDA Improvement +42.6% Consumer Net -$1,603k Revenue Margin Incl. Wage Other SG&A FY15 Contribution Mix & US$ Savings Savings FY16 Slide 7
Slide 8: Gross Revenue
Gross Revenue (Sales & Hire before trading term deductions) Sheds Average Decline –16% pa Paint Average Increase +2% pa Scaffold Average Increase +7% pa Net $29.8m +$1.8m +$3.3m $28.7m $28.7m $28.0m +$0.4m Consumer -$1.9m 3 Year Sheds FY13 FY14 FY15 FY16 Increase Paint Scaffold Slide 8
Slide 9: 1st vs 2nd Half Year Performance
1st vs 2nd Half Year Performance Revenue H1 vs H2 EBITDA H1 vs H2 53% 1200 52% 52% 1072 52% 1000 51% 846 50%50% 800 50% 674 H1 FY16 One Off Revenue +$850k +3% 49% 600 48% 589 48% H2 FY16 EBITDA 48%Improvement 20% 400 491 47% 46% 200 45% 0 FY14 FY15 FY16 -69 H1 H2 -200 FY14 $777k FY15 $1,1165 FY16 $1
Slide 10: 2016 Cash Generation & Application
2016 Cash Generation & Application 2016 2015 $k $k EBITDA 1,661 1,165 Working capital & provision movements 924 819 Interest & Finance Costs (255) (378) Income Tax Paid (189) (129) Cash Provided by Operating Activities 2,141 1,477 Investing Activities (Net Purchase/Sale PP&E) (626) (214) Financing A
Slide 11: Deferred Senior Loan Note (DSLN)
Deferred Senior Loan Note (DSLN) • Instrument with Westpac created Dec. 2012 • Expires Dec 2022 • Group swapped $8.0m of Westpac debt for $2.4m DSLN • Interest accrues at 12% pa (subject ** to average share price being greater than 10 cent in calendar 2017) • DSLN is interest & debt instalment free
Slide 12: Supply & Logistics Review: Steve Hooper
SUPPLY & LOGISTICS REVIEW: STEVE HOOPER Non - Executive Director Slide 12 12
Slide 13: Supply and logistics reorganisation
• Reorganisation of the supply and buying functions • Simplification Paint Applications supply – focus on strategic partnerships rather than opportunistic buying • Implementation of Supply and Operations Planning (S&OP) – Consumer Products & Scaffolding • Focus on the Campbelltown Warehouse – Quit W
Slide 14: Chief Executive Officer: Tony Grima
CHIEF EXECUTIVE OFFICER COMPANY SECRETARY & CFO TONY GRIMA Greg Park Slide 14 14
Slide 15: Performance Summary – FY16
Performance Summary – FY16 Net Net (Loss) EBITDA SG&A Core Debt Revenue After Tax Sales, General Borrowings & Admin’ Exp’s excluding DSLN FY16 vs FY15 +3.8% +34.4% +42.6% Reduc’n 9.2% Repay $1.4m FY16 $28.4m $(0.7)m $1,661k 27.8% $2.1m FY15 $27.4m $(1.1)m $1,165k 30.6% $3.5m FY14 $27.2m $(2.6)m $777
Slide 16: Operations & Innovation: Strategic Direction
Strategic Direction is ONE Company focussed on becoming market leaders by; • Understanding and engaging with our customers to meet and exceed their goals • Inspiring our people to deliver strong profitable growth, innovation, quality products and services and • Continuing to build on our Brand found
Slide 17: Pillar - Growth & Innovation
Pillar 1 - Growth & Innovation • New user-friendly Website to be launched January 1st, 2017 • Focus on expanding scaffold distribution into local & international markets • Incremental market share gains in Paint Accessories – aiming for a leadership position with DIY players • Building a new product
Slide 18: Pillar - People & Culture
Pillar 2 - People & Culture • Enhanced experience in our management team • Increased industry expertise within scaffold division • New highly energised sales team in consumer division Slide 18
Slide 19: Pillar – Operations and Processes
Pillar 3 – Operations and Processes • Continued focus on inventory management and working capital improvements • Focus on Lean and continual reduction in Cost of Goods Sold • Improved processes for hire fleet repairs and maintenance • Identification of key business processes that require enhancement
Slide 20: FY16 Summary
FY16 Summary • Positioning Oldfields for growth and profit • Net Sales growth of 3.8% • EBITDA growth of 42.6% • Upgraded talent & improving processes • Reduction of core debt to $2.1M • Celebrated 100 Years in business! Slide 20
Slide 21: FY17 Current Year Progress: Tony Grima
FY17- CURRENT YEAR PROGRESS: TONY GRIMA Slide 21 21
Slide 22: Challenges Ahead
Challenges Ahead 1. Changing hardware retail environment • Masters closure • Mitre 10 and Home Timber & Hardware 2. Direct sourcing by retailers continues to accelerate 3. Limited ability to invest in outdoor storage division Slide 22
Slide 23: First Half Guidance
First Half Guidance • Changing hardware & outdoor storage landscape • Reduction in costs / overheads whilst retaining core capabilities • Continued debt reduction with focus on exiting DSLN Key Financials H1 FY17 Guidance H1 FY16 Actual Growth Net Revenue Circa $13,900k $15,036k -8% EBITDA Circa $1,
Slide 24: Items of Business
oldfields faldfield, ITEMS OF BUSINESS 100 \ YEARS 1916-2016 www.oldfields.comau + ABN 92 000 307 968
Slide 25: Financial Statements & Reports
Financial Statements & Reports To receive and consider the following reports in respect of the financial year of the company ended 30 June 2016; – The Financial Report (which includes the Statement of Financial Position, Statement of Comprehensive Income, Cash Flow Statement and Director’s Declarati
Slide 26: Resolution 1. Re-election of William Lewis Timms as a Director
Resolution 1. Re-election of William Lewis Timms as a Director “That William Lewis Timms, who retires by rotation in accordance with the Company’s Constitution and being eligible offers himself for re-election as a Director, be re-elected as a Director” Total proxies received 50,386,017 Shareholder
Slide 27: Resolution 2. Remuneration Report
Resolution 2. Remuneration Report “That the Remuneration Report be adopted” Total proxies received 10,769,955 Shareholder exclusions 39,616,062 Votes received FOR (incl. Open to Chair) 10,716,263 Votes received AGAINST 30,000 Abstentions 368 Slide 27
Slide 28: Other Business
Other Business oldfields Slide 28
Slide 29: Disclaimer and Notes
Disclaimer and Notes • The purpose of this presentation is to provide general information about Oldfields Holdings Limited (Company). It is not recommended that any person makes any investment decision in relation to the Company based solely on this presentation. This presentation does not contain a
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