Slide 1: Simonds Group Limited 1H 2015 Results Briefing
For personal use only Simonds Group Limited 1H 2015 Results Briefing 26 February 2015
Slide 2: First Half FY15 Snapshot
FIRST HALF FY15 SNAPSHOT Revenue EBITDA FTE employees For personal use only $299m $15.8m 535 up 8.6%1 up 149.3%1 Display 1,217 $425m 105 Homes Home starts 1H152 Sales pipeline 57 Locations 2,773 287 702 Active Average course Completed participants3 enrolments participants All figures relate to the 6
Slide 3: Delivering on our promises: Strong financial performance
For personal use only Delivering on our promises Strong financial performance Positive outlook Prospectus forecast re-affirmed SIMONDS GROUP LIMITED | 1H 2015 Results Briefing | 26 February 2015 3
Slide 4: Delivering on our promises
DELIVERING ON OUR PROMISES Successfully listed on ASX on 17 November 2014 For personal use only Strong 1H15 and pipeline provides confidence to deliver prospectus pro-forma NPAT of at least $20.4m for FY15 Revenue up 8.6% to $299.2m Pro-forma EBITDA of $15.8m Pro forma EBITDA Margin of 5.3% Simonds
Slide 5: Delivering on our promises: Positive outlook
For personal use only Delivering on our promises Strong financial performance Positive outlook Prospectus forecast re-affirmed SIMONDS GROUP LIMITED | 1H 2015 Results Briefing | 26 February 2015 5
Slide 6: Growth across all financial metrics
GROWTH ACROSS ALL FINANCIAL METRICS For personal use only FY15 Profit and loss 1H15 1H14 Prospectus (Pro-forma) Pro-forma Variance Actual pro-forma ($m) Actual1 forecast Revenue 299.2 275.4 +8.6% 638.2 Gross Profit 68.0 59.6 +14.1% 140.7 EBITDA 15.8 6.3 +149.3% 34.0 EBITDA Margin 5.3% 2.3% +300bps 5
Slide 7: Capital light model
CAPITAL LIGHT MODEL Balance sheet ($m) 1H15 FY14 For personal use only Assets • Strong cash reserves Cash / cash equivalents 12.2 15.9 Trade & receivables 31.7 43.1 • Minimal bank debt - $2m Inventories 53.5 64.0 asset finance PP&E 6.5 6.8 • Capital light model provides Intangibles 1.9 1.9 Other ass
Slide 8: Statement of cash flows
STATEMENT OF CASH FLOWS Cash flow 1H2015 For personal use only A$m Statutory • 1H2015 net cash flow shows Actual1 the impact of $20m reduction EBITDA (15.7) Movement in working capital (17.3) in trade payables compared to Net interest paid (0.4) 30 June 2014 (Christmas Income taxes paid (5.4) period
Slide 9: Delivering on our promises: Prospectus forecast re-affirmed
For personal use only Delivering on our promises Strong financial performance Positive outlook Prospectus forecast re-affirmed SIMONDS GROUP LIMITED | 1H 2015 Results Briefing | 26 February 2015 9
Slide 10: Simonds Homes
SIMONDS HOMES Good growth in all states Year-on-Year For personal use only • 8.0% growth in site starts in Victoria • 12.2% growth in site starts in Queensland • 7.2% growth in site starts in SA • 12.9% growth in site starts in NSW Key statistics – Residential & Land 1H15 Site starts commenced 1 1,2
Slide 11: Market conditions favourable
MARKET CONDITIONS FAVOURABLE For personal use only Dwelling commencements • Very low interest rates 50,000 Forecast • Population continues 40,000 to grow with strong overseas migration 30,000 • NSW and Queensland expected to be strong 20,000 coming off extended 10,000 downturns - FY04 FY05 FY06 FY07
Slide 12: Record sales pipeline
RECORD SALES PIPELINE Simonds Homes For personal use only revenue pipeline • On track to meet FY15 forecast of 2,433 site starts 3,196 2 • Sales pipeline of $425m1 1,010 Sales accepts – contract being 2,4331 2,433 Sales strongest in company history Pipeline prepared 1,979 • Extremely strong base for
Slide 13: Expanding display home footprint
EXPANDING DISPLAY HOME FOOTPRINT Victoria - regional Victoria - metropolitan • 105 display homes across 57 display For personal use only Wollert Mernda Sunbury Plumpton Morang Lalor centres Coburg Echuca Melton Bendigo Shepparton Wodonga Wangaratta Truganina Point Cook Melbourne Springvale Pakenham
Slide 14: Builders Academy Australia
BUILDERS ACADEMY AUSTRALIA • Revenue up 119.3% Year-on-Year • 702 participants successfully completed Builders Academy For personal use only their course during 1H15 revenue pipeline • Average of 287 enrolments per month • On track to exceed FY15 forecast of 2,773 2,800 2,800 enrolments Registered p
Slide 15: Builders training builders
BUILDERS TRAINING BUILDERS For personal use only • Focused solely on building and construction training – “builders training builders” • Training delivery not “auspiced” • Builders Academy affiliation with a leading trade partner continues to enable real job outcomes • Brand equity being built via t
Slide 16: Sector changes welcomed
SECTOR CHANGES WELCOMED Topic: VET FEE-HELP (“VFH”) and the increasing debt to government For personal use only VET • Proposed changes to VFH payment terms mirror BAA’s current FEE-HELP operating model • BAA well-positioned for transition to anticipated VFH reforms (if application is successful) Top
Slide 17: BAA growth opportunities
BAA GROWTH OPPORTUNITIES Continued growth in VIC with more flexible course offering to traditional providers (e.g. TAFE) For personal use only Interstate Expansion Organic and acquisitive expansion across Australia Grow City-Wide Building and Training Services (CWBTS) post acquisition Adding
Slide 18: In summary
IN SUMMARY Confidence in delivering at least FY15 pro forma For personal use only prospectus forecast NPAT of $20.4m Strong national dwelling starts forecasted National display home footprint expanding rapidly Builders Academy Australia executing on growth plan Strong financial position with growth
Slide 19: Appendix
For personal use only APPENDIX Background Statutory to Pro-forma Reconciliation 19
Slide 20: Background
BACKGROUND Started by Gary Simonds in 1949 For personal use only ASX Listing on 17 November 2014 Simonds Group (ASX: SIO) comprises: a leading Australian residential homebuilder (“Simonds Homes”), a Registered Training Organisation (“RTO”), Builders Academy Australia (“BAA”) Gary Simonds and senior
Slide 21: Simonds Group
SIMONDS GROUP For personal use only Simonds Homes is the number one homebuilder in Victoria with expanding operations in QLD, NSW and SA. • Unique brand value built over 65 years • Over 10,500 homes built in the past 5 years • 6 brands covering each of the major buyer categories Builders Academy Aus
Slide 22: Statutory to pro-forma reconciliation
STATUTORY TO PRO-FORMA RECONCILIATION For personal use only (A$m) Revenue EBITDA EBIT NPAT Cashflow 1H2015 Statutory Results 299.2 (15.7) (17.7) (20.8) (3.7) Equity Settled Executive payments 26.8 26.8 26.8 - IPO Costs 4.1 4.1 4.1 4.8 IPO Restructure Costs 0.6 0.6 0.6 - Tax (1.4) - Pre-IPO Net Divs
Slide 23: Important notice & disclaimer
IMPORTANT NOTICE & DISCLAIMER Some of the information contained in this presentation contains “forward-looking statements” which For personal use only may not directly or exclusively relate to historical facts. These forward-looking statements reflect Simonds Group Limited’s current intentions, plan