Oldfields Holdings Ltd · ASX:OLH
Oldfields — Shareholder Meeting (November 2017)
31 slides from Oldfields's shareholder meeting presentation, Nov 30, 2017
Slide 1: Oldfields Holdings Limited Annual General Meeting
OLDFIELDS HOLDINGS LIMITED ANNUAL GENERAL MEETING 30TH NOVEMBER 2017 1
Slide 2: Board & Executives
Board & Executives • Lewis (William) Timms, Chairman • Steve Hooper, Non Executive Director • Richard Abela, Managing Director & CEO • Greg Park, Executive Director, Co Sec. & 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: 2017 Financial Results
2017 Financial Results 2017 2016 Change $k $k % Group Revenue (Net) 26,721 28,420 -6.0% R Net Profit (Loss) after Tax 312 (722) +143.2% Interest & DSLN Debt Revaluation 590 634 Depreciation & Amortisation 803 1,434 Income Tax Expense 315 352 Foreign Exchange Gain 11 (37) EBITDA 2,031 1,661 +22.3% Sl
Slide 6: Company Secretary & CFO
COMPANY SECRETARY & CFO COMPANY SECRETARY &GREG CFOPARK Greg Park Slide 6 6
Slide 7: FY17 EBITDA Movements Against Prior Year
FY17 EBITDA Movements Against Prior Year EBITDA Improvement +22.3% $2,031k +$372k Net Revenue Decline -6.0% Operations $1,661k Volume Savings -$947k Volume +$209k +$286k Logistics Savings COGS +$264k Savings +$186k Net +$495k Net -$497k FY16 Consumer Division Scaffold Division Salaries & Other SG&A
Slide 8: Review of Revenue (before trading terms)
Review of Revenue (before trading terms) FY14 FY15 FY16 FY17 17 v 16 Mov’t % Sheds 3,371 2,726 1,839 1,807 -32 -1.7% Paint 9,473 9,018 9742 6,751 -2,991 -30.7% Consumer 12,842 11,744 11,587 8,558 -3,023 -26.1% Scaffold 15,898 17,088 18,308 19,061 +753 +4.1% Total Group 28,740 28,725 29,848 27,602 +2
Slide 9: 2017 Cash Generation & Application
2017 Cash Generation & Application 2017 2016 $k $k EBITDA 2,031 1,661 Working capital & provision movements 552 924 Interest & Finance Costs (166) (255) Income Tax Paid (273) (189) Cash Provided by Operating Activities 2,144 2,141 Investing Activities (Net Purchase/Sale PP&E) (736) (626) Financing A
Slide 10: Deferred Senior Loan Note (DSLN)
Deferred Senior Loan Note (DSLN) • Instrument with Westpac created Dec. 2012 • Expires Dec 2022 (10 year agreement) • Group swapped $8.0m of Westpac debt for $2.4m DSLN • DSLN is interest & debt instalment free till Dec 2022 • DSLN comes with restrictions & impacts: – Implicit interest rate of 12% p
Slide 11: DSLN – Interest Calculations
DSLN – Interest Calculations • Years 1–5 : Interest at 12% pa compound • At Dec 2017 provision approx $1.8m Interest calculation used for determining “payout” figure if extinguished inside first 5 years • Years 5–10 : Redemption premium replaces interest calc. • Sliding scale premium determined by s
Slide 12: DSLN Planning & Options
DSLN Planning & Options • See out remaining 5 years. i.e. pay Westpac $2.4m +Redemption Premium on 21 Dec 2022 …. Carries funding implications to pay lump sum on 21 Dec 2022 • Seek new financiers to payout DSLN …. Appetite of Lenders? … Requires approx $5.0m to Payout / Facilities • Capital raising
Slide 13: Supply & Logistics Review: Steve Hooper
SUPPLY & LOGISTICS REVIEW: STEVE HOOPER Non - Executive Director Slide 13 13
Slide 14: Operational Focus in 2017-2019
Operational Focus in 2017-2019 • Strategic engagement of key suppliers as business partners – international and local • Focus on quality, product development and new product research – Pro Series Brushes • Rationalisation of suppliers, sku’s and processes to reduce product and overhead costs • Wareh
Slide 15: Chief Executive Officer
CHIEF EXECUTIVE OFFICER COMPANY SECRETARY & CFO ABELA RICHARD Greg Park Slide 15 15
Slide 16: Performance Summary – FY17
Performance Summary – FY17 Net Net Profit EBITDA SG&A Core Debt Revenue After Tax Sales, General Net Borrowings & Admin’ Exp’s excluding DSLN FY17 vs FY16 +3.8% +143.2% +22.3% Reduc’n 5.0% Repay $1.2m FY17 $26.7m $0.3m $2,031k 26.4% $0.9m FY16 $28.4m $(0.7)m $1,661k 27.8% $2.1m FY15 $27.4m $(1.1)m $
Slide 17: Operations & Innovation
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 18: Key strategic planks - Scaffolding
Key strategic planks - Scaffolding • Developed a deeper understanding of our market position • Development of counter cyclical revenue streams • Focus on channels to market that will diversify income streams. • Liberate the collective knowledge and goodwill around cross border customers. • Open up n
Slide 19: Key strategic planks - Paint
Key strategic planks - Paint • Homogenised market -true differentiation opportunity • Focus on trade – Respect quality and rebuild brand loyalty • Restructure the revenue base to improve margins • Key leadership – drive team and industry ! • Focus on innovation – Return to true product life cycle ma
Slide 20: Key strategic planks - Sheds
Key strategic planks - Sheds • Simplified offer • Move to a direct sales strategy being a predominantly on line – No custom sizes, popular colour model options only • Strip out costs by redeploying staff – On-line strategy that can be returned to production on a batch basis • Produced for stock not
Slide 21: People & Culture – Stronger as One
People & Culture – Stronger as One ! • Critical appointments 2017 • Critical success factors 2018 & beyond – Business Analyst – Leveraging pool of talent • Focus – Clarity & data modelling for critical • Build internal network – sharing of ideas, decision making expertise & project management. – Sca
Slide 22: Events – Pro series launch
Events – Pro series launch… “Oldfields is Back!!” Sydney: October 31, 2017 Melbourne: November 2nd , 2017 Targets: Trade painters & store owners Paint buying groups Industrial buying groups Major painting firms Trade press Master painters NSW & VIC TAFE NSW & VIC
Slide 23: Opportunities for 2018
Opportunities for 2018 1. Finding a lender that will support growth. 2. Re establishing Oldfields as the No.1 trade paint supplier … 3. Evolving our scaffold business into a true national network servicing both local and national clients in counter cyclical revenue streams 4. Allowing Treco to be es
Slide 24: FY18 - Current Year Progress: Richard Abela
FY18 - CURRENT YEAR PROGRESS: RICHARD ABELA Slide 24 24
Slide 25: First Half Guidance
First Half Guidance • Restructure consumer revenue base (no sales to Masters, termination of M10 warehouse supply, commence sheds on-line) • National scaffold strategy to leverage network • Invest in key roles & activity to drive future growth • Continued debt reduction with focus on exiting DSLN Ke
Slide 26: Items of Business
oldfields ITEMS OF BUSINESS Slide 26
Slide 27: 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 2017; – The Financial Report (which includes the Statement of Financial Position, Statement of Comprehensive Income, Cash Flow Statement and Director’s Declarati
Slide 28: Resolution 1. Re-election of Gregory John Park as a Director
Resolution 1. Re-election of Gregory John Park as a Director “That Gregory John Park, 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 57,310,622 Shareholder excl
Slide 29: Resolution 2. Remuneration Report
Resolution 2. Remuneration Report “That the Remuneration Report be adopted” Total proxies received 17,749,560 Shareholder exclusions 39,516,062 Votes received FOR (incl. Open to Chair) 17,749,650 Votes received AGAINST NIL Abstentions 45,000 Slide 29
Slide 30: Other Business
Other Business oldfields Slide 30
Slide 31: 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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