F.f.i. Holdings Ltd. · ASX:FFI
F.f.i — Shareholder Meeting (November 2012)
16 slides from F.f.i's shareholder meeting presentation, Nov 14, 2012
Slide 1: Annual General Meeting 2012 Chairman's Presentation
For personal use only Annual General Meeting 2012 Chairman’s Presentation FFI Holdings Ltd - 2012 AGM
Slide 2: For personal use only
For personal use only • Review of Financial Performance • Factors Affecting Financial Performance • Dividends • Review of Food Operations • Growth Strategy Food Operations Property Investments • Industry Dynamics • Conclusion FFI Holdings Ltd - 2012 AGM 2
Slide 3: Key financial results from continuing operations in the food industry
For personal use only Key financial results from continuing operations in the food industry 2012 2011 Year ended 30 June % change $‟000 $‟000 Sales 32,240 31,064 up 3.8% Profit before tax 3,036 3,541 down 15% Profit after tax 2,124 2,499 down 15 % Dividends paid/payable 1,782 2,025 down 12% Cash flo
Slide 4: Positive highlights in the FY2012 result notwithstanding the decline in profit
For personal use only There were a number of positive highlights in the FY2012 result, notwithstanding the decline in profit • Results were achieved in a difficult trading environment impact of increased costs and competition was well managed • Modest sales growth achieved despite intense compet
Slide 5: Specific factors significantly impacting the profit result
For personal use only In addition to generally difficult market conditions, a number of specific factors significantly impacted the profit result • Significant increases in labour costs: external factors = general labour and associated cost increases internal factors = labour cost associated wit
Slide 6: Maximising long term shareholder return is FFI's key objective
For personal use only Maximising long term shareholder return is FFI‟s key objective and drives all strategies, performance goals and management processes • Final dividend of 12 cps fully franked 80 - full year dividends of 22 cps fully 70 franked (25 cps previously) 60 • Follows 12 years of steady
Slide 7: Food operations business units, products and markets
For personal use only Chocolate Products of Australia Products: chocolate – cake toppings – confectionery – fudge – candy inclusions and decorations Markets: food service – wholesale – private label – retail – industrial Fresh Foods Industries – Bakery Products Products: bakers jams – fruit fillings
Slide 8: All business units continue to perform satisfactorily
For personal use only All business units continue to perform satisfactorily • Continued to build a solid customer base across all divisions • Remained focused on pursuing sales growth in all markets – private label, food service, wholesale, industrial supply and retail • Achieved significant improve
Slide 9: Group structure: food operations and property investments
For personal use only Fresh Food Industries Pty Ltd Food Operations Equity = $13.9m Tradition Smallgoods Pty Ltd FFI Holdings Ltd Property Sales Equity = $24.1m (Commenced) Property Investments Development and Equity = $10.2m Lease (Proposed) Hold for Longer Term Growth FFI Holdings Ltd - 2012 AGM 9
Slide 10: Organic growth remains the company's main focus
Organic growth is “islow riskrisk / high return” strategy andand For personal use only Organic Growth “ low / high return” strategy remains remains theFFI „s main focus Company‟s main focus Upgrade “Core competences” production / reduce costs Existing skills and knowhow “Privileged assets” Develop n
Slide 11: Enhance long-term capital value of property investments
For personal use only The key priority is to enhance long-term capital value and create a cash flow from this valuable asset • Land held as property investments = 67,000 m2 at Jandakot in Perth Property Investments $ million At current valuation 14.1 Deferred tax liability (3.9) Shareholders‟ equity
Slide 12: Property sales commenced; three-tiered growth strategy
For personal use only Property sales commenced Realise value from fully Property sales developed areas 1 lot of 2,641m2 sold for $990,370 2 lots totalling 5,520m2 currently on market Enhance and release value Development Opportunities being actively through development and and lease pursued lease po
Slide 13: For personal use only
For personal use only FFI Holdings Ltd - 2012 AGM 13
Slide 14: Industry dynamics and the solution
For personal use only • Price wars between major supermarkets restricts suppliers‟ ability to maintain margins • Retail duopoly in Australia limits manufacturers‟ control over their retail offerings • Continuing trend of major retailers to source lower priced overseas products • High cost of doi
Slide 15: FFI Holdings is well positioned in its key market segments
For personal use only FFI Holdings is well positioned in its key market segments • Profitable, well established business units, delivering high returns on funds employed • Sound financial position with low debts, quality assets and strong cash flows • Significant property investment that will contri
Slide 16: For personal use only
For personal use only • This presentation was prepared by FFI Holdings Ltd. The information herein is current as at 14 November 2012. • This presentation is not an offer or invitation for subscription or purchase of securities or a recommendation with respect to any security. Information in this pre