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
rsonal use only OLDFIELDS HOLDINGS LIMITED ANNUAL GENERAL MEETING 24TH NOVEMBER 2016 1
Slide 2: Board & Executives
Board & Executives rsonal use only • 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 rsonal use only • 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
rsonal use only CHAIRMAN’S ADDRESS CHAIRMAN’S LEWIS TIMMS ADDRESS Lewis Timms Slide 4
Slide 5: 2016 Financial Results
2016 Financial Results 2016 2015 rsonal use only 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) EBITD
Slide 6: Company Secretary & CFO: Greg Park
rsonal use only 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 rsonal use only 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 rsonal use only 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
Slide 9: 1st vs 2nd Half Year Performance
1st vs 2nd Half Year Performance Revenue H1 vs H2 EBITDA H1 vs H2 53% rsonal use only 52% 1200 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
Slide 10: 2016 Cash Generation & Application
2016 Cash Generation & Application 2016 2015 $k $k rsonal use only 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) (
Slide 11: Deferred Senior Loan Note (DSLN)
Deferred Senior Loan Note (DSLN) • Instrument with Westpac created Dec. 2012 rsonal use only • 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
Slide 12: Supply & Logistics Review: Steve Hooper
rsonal use only SUPPLY & LOGISTICS REVIEW: STEVE HOOPER Non - Executive Director Slide 12 12
Slide 13: Supply and logistics initiatives
• Reorganisation of the supply and buying functions rsonal use only • 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 Wa
Slide 14: Chief Executive Officer: Tony Grima
rsonal use only CHIEF EXECUTIVE OFFICER COMPANY SECRETARY & CFO TONY GRIMA Greg Park Slide 14 14
Slide 15: Performance Summary – FY16
Performance Summary – FY16 rsonal use only 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
Slide 16: Strategic Direction
Strategic Direction rsonal use only 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
Slide 17: Pillar - Growth & Innovation
Pillar 1 - Growth & Innovation • New user-friendly Website to be rsonal use only 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 • Buildi
Slide 18: Pillar - People & Culture
Pillar 2 - People & Culture • Enhanced experience in our rsonal use only 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 rsonal use only 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 req
Slide 20: FY16 Summary
FY16 Summary • Positioning Oldfields for growth and profit rsonal use only • 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
rsonal use only FY17- CURRENT YEAR PROGRESS: TONY GRIMA Slide 21 21
Slide 22: Challenges Ahead
Challenges Ahead 1. Changing hardware retail environment rsonal use only • 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 rsonal use only • 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%
Slide 24: Items of Business
rsonal use only ITEMS OF BUSINESS Slide 24
Slide 25: Financial Statements & Reports
Financial Statements & Reports rsonal use only 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 Dire
Slide 26: Resolution 1. Re-election of William Lewis Timms
Resolution 1. Re-election of William Lewis Timms as a Director rsonal use only “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,
Slide 27: Resolution 2. Remuneration Report
Resolution 2. Remuneration Report rsonal use only “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 rsonal use only 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 rsonal use on
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