Accordant Group Limited · NZX:AGL
Accordant — AWF Madison Group — Shareholder Meeting (July 2015)
33 slides from Accordant's shareholder meeting presentation, Jul 22, 2015
Slide 1: Annual Shareholders' Meeting
ANNUAL SHAREHOLDERS’ MEETING FOR THE FINANCIAL YEAR ENDED 31 MARCH 2015 22 JULY 2015
Slide 2: Chairman's Address
CHAIRMAN’S ADDRESS ROSS KEENAN CHAIRMAN
Slide 3: Agenda Item 1: Chairman's Introduction
AGENDA ITEM 1 Chairman’s Introduction
Slide 4: Agenda Item 2: Consolidated financial statements
AGENDA ITEM 2 Consolidated financial statements for the year ended 31st March 2015
Slide 5: Agenda Item 3: Final dividend of 8 cents
AGENDA ITEM 3 Fully imputed final dividend of 8 cents
Slide 6: Agenda Item 4: Directors Report and Update
AGENDA ITEM 4 Directors Report and Update
Slide 7: Presentation to AWF Madison AGM: Board perspective on FY15
Presentation to AWF Madison AGM Wednesday 22nd July 15 From the Board perspective here are some key points from FY15, largely as contained in the Annual Report: • It was a mixed year, but one that validated the decision to acquire Madison Recruitment Ltd and thereby place two powerful brands togethe
Slide 8: Director programme and CEO transition
Director programme. We have purposefully gone from a Board of 3 (4 when Mike joined) to as of today 6 directors. Within that Board we now have a mix of experience and continuity, with particular financial skills and entrepreneurial flare. • Separately under Agenda Item 5.4, we are asking you to appr
Slide 9: Outgoing CEO's Address
OUTGOING CEO’S ADDRESS MIKE HUDDLESTON OUTGOING CEO
Slide 10: Review of the Group's progress over seven years
Presentation to AWF Madison AGM Wednesday 22nd July 15 It is perhaps appropriate as the guard changes within Awf Madison that I address you for the final time and briefly review the Group’s progress over the last 7 years. This will provide an introduction for the future which Simon Bennett will appr
Slide 11: Acquisitions and development of Trades division
acquisition of Mourant Ltd, now AWF Mining, and secondly into the development of our Trades division. AWF Trades has been a hard won success but the next few years will demonstrate the full benefits of this business as skilled labour is in short supply and immigration is increasingly necessary. Our
Slide 12: CEO's Presentation
CEO’S PRESENTATION SIMON BENNETT CEO
Slide 13: Our People
OUR PEOPLE Across the group 246 people deliver services. We deploy up to 4,500 people each day. Safety remains our key focus. Reduced serious harm from 16 to 11 in FY15. Reduced LTIs from 240 to 222. Further strengthening of H&S Programme. Business well prepared for new legislation.
Slide 14: FY15 Financials
FY15 FINANCIALS Achievement of satisfactory group financial result. Growth primarily due to full year of Madison impact. Good growth in underlying earnings.
Slide 15: Summary Result
SUMMARY RESULT vane £42015 on] change (in) change Revenue 148.7 197.5 48.8 33% EBITDA 8.4 12.6 4.2 50% NPAT 3.9 5.4 1.5 38% Underlying earnings 4.6 6.8 2.2 48% IANA AWF MADISON
Slide 16: Financial Performance
FINANCIAL PERFORMANCE Sey ost 2013 [Fy 2014 FY 2015, Total Revenue 104,915 130,477 148,691 197,514 Employee benefit expense* -89,468 -112,403 -129,417 -173,192 EBITDA*™ (from continuing operations) 6,771 8,338 8,385 12,612 Profit for the period (from continuing operations) 2,877 4,952 3,952 5,416 Pr
Slide 17: Capital Raising and Debt
CAPITAL RAISING AND DEBT $13.5m (net) proceeds from March capital raising Bank funding facility of $28.8m of which $21.75m was drawn at 31st March. Facility expires later this year. Management expect to renegotiate and renew the facility during the year in the normal course of business. Net debt $18
Slide 18: Dividend Chart
DIVIDEND CHART ie} FY11 FY12 FY13 FY14 FY15 Financial Year Cents per share a oe SRR = Dividend ™ Special Dividend IANA AWF MADISON
Slide 19: Dividend Policy
DIVIDEND POLICY Declare a steady lift in dividends. Current annual dividends targeted at 60 - 65% of underlying earnings after tax. This policy may change at the discretion of the Board.
Slide 20: Brand Video
BRAND VIDEO A F IANA AWF MADISON
Slide 21: Business Performance
BUSINESS PERFORMANCE Maintained all existing key clients, successful in developing FB. AWF strong in Auckland, Wellington and Christchurch. Regions weaker with reduced spend by central government, impact of NZTA and weaker regional economy. Margin impacted by addition of new key accounts and slower
Slide 22: FY16 Initiatives
FY16 INITIATIVES Take our H&S to the next level. Continue to build on Maori cadetship program. Commence rollout of Pathways project. Sell other services. Operational review, drive efficiency in process to allow better and lower cost delivery.
Slide 23: Brand Video
BRAND VIDEO WA madison IANA AWF MADISON
Slide 24: Business Performance
Business Performance Performed well on the back of a stronger economy resulting in a lift in permanent recruitment, particularly in Auckland. Contracting revenue increased on declining margin resulting in a small reduction in $ margin. Double digit growth in permanent revenue. Single digit growth in
Slide 25: FY16 Initiatives
FY16 INITIATIVES Develop ideal business mix (temp, perm and contract) for the changing economic situation. Grow permanent revenue from $80k+ recruitment. Assess delivery models that would focus on a sourcing and candidate led strategy. Continue to build capability of our people and grow through ‘bui
Slide 26: Group
GROUP Corporate identity defined as AWF Madison Group Limited, new web and begin to tell the group story. Investor relations being strengthened following positive reaction to capital raising roadshow. Identified areas of strength from each business that can be leveraged.
Slide 27: Group Leadership
GROUP LEADERSHIP CEO transition completed. Alex Park commenced as AWF COO in May 2015. Group marketing & sourcing structure established in Apr 2015 – Shereen Low appointed. Company Secretary role being established.
Slide 28: Outlook
OUTLOOK We have two strong business units. Focus for next 12 months on execution and operational excellence. Continue to leverage strength of business units. Look to build capability in new channels including growth in higher value blue collar recruitment. Continue to expand our growing trades offer
Slide 29: Thoughts as he surrenders the Managing Director title
THOUGHTS AS HE SURRENDERS THE MANAGING DIRECTOR TITLE SIMON HULL FOUNDER
Slide 30: Agenda Item 5: Resolutions
AGENDA ITEM 5 Resolutions: • Ross Keenan re-appointment • Simon Hull re-appointment • Wynnis Armour appointment • Directors’ fee pool
Slide 31: Agenda Item 6: Auditors' Remuneration
AGENDA ITEM 6 Auditors’ Remuneration
Slide 32: Agenda Item 7: Staff Share Incentive Scheme
AGENDA ITEM 7 Staff Share Incentive Scheme
Slide 33: Agenda Item 8: General Business
AGENDA ITEM 8 General Business