F.f.i. Holdings Ltd. · ASX:FFI
F.f.i — Shareholder Meeting (November 2016)
17 slides from F.f.i's shareholder meeting presentation, Nov 2, 2016
Slide 1: Annual General Meeting 2016 Chairman's Presentation
For personal use only Annual General Meeting 2016 Chairman’s Presentation FFI Holdings Ltd - 2016 AGM
Slide 2: Contents
For personal use only Contents • Highlights FY2016 • Review of Financial Performance • Factors Affecting Financial Performance • Dividends • Manufacturing Capabilities • Review of Food Operations • Review of Property Investments • Growth Strategy Food Operations Property Investments • Conclusion
Slide 3: FY 2016 – Flat growth but sound results
For personal use only FY 2016 – Flat growth but sound results • $2.1 million net profit after tax attributable to members (earnings per share 21.4 cents) • Although down 1.7% on the previous year – a sound result • Sales up 3.2% to $30.9 million • Rental income up 14.3% to $0.85 million • Strong bal
Slide 4: Key financial metrics
Key financial metrics For personal use only 2016 2015 Year ended 30 June % change $’000 $’000 Sales 30,902 29,948 Up 3% Earnings before tax: - food operations 2,930 2,892 Up 1% - property income 852 746 Up 14% - interest expense (151) (132) Up 14% - unallocated items (677) (534) Up 27% Total earning
Slide 5: FY 2016 – Sound results despite challenges
For personal use only FY 2016 – Sound results despite challenges • Sound results were achieved despite a number of major challenges: Significant changes in market dynamics Discontinuation of product lines by major customers Continuing rationalization of retail lines by supermarket chains • Str
Slide 6: Maximising long term shareholder return
For personal use only Maximising long term shareholder return is a key FFI objective and is a driver of strategies, performance goals and management processes • Final ordinary dividend of 11.0 cps fully 80 franked - full year ordinary dividends of 19.0 cps fully franked (2015:19.0 cps) 70 • Total di
Slide 7: A diverse range of manufacturing & packing capabilities
For personal use only A diverse range of manufacturing & packing capabilities • Wet cooking process – bakery jams and fillings, caramels, ice cream variegates/ribbons etc • Chocolate panning – nuts, fruits, candy etc • Sugar panning – non pareils, candy coating of chocolate drops and nuts etc • Extr
Slide 8: A diverse range of manufacturing & packing capabilities
For personal use only A diverse range of manufacturing & packing capabilities • Barrier coating – for ice cream inclusions • Dry roasting/toasting – nuts/muesli etc • Dry blending – customer specification • Popcorn manufacture • Sausages bacon and smallgoods • Extensive range of packing options – ba
Slide 9: Products and markets
For personal use only Products and markets 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
Slide 10: Key business fundamentals
For personal use only Key business fundamentals • Diverse manufacturing capabilities - in terms of both equipment and technical expertise • Quality products - supported by innovation and new product development • Extensive distribution network - Australia wide, industrial, food service, retail • Ext
Slide 11: Property investment – an important driver of shareholder value
For personal use only Property investment – an important driver of shareholder value • Investment property value June 2016: At current value = $22.0m Less deferred tax = ($ 4.3m) Equity invested = $17.7m • Property investments held June 2016: Developed and leased (27,000 m2 approx.) Vacant
Slide 12: The key priority is to maximize long term capital value
For personal use only The key priority is to maximize long term capital value and increase cash flow from this valuable asset FFI FFI Holdings Ltd - 2016 AGM 12
Slide 13: Ongoing organic growth opportunities
Ongoing organic growth opportunities For personal use only Fresh Food Industries Pty Ltd Food Operations Equity = $17.1m Tradition FFI Holdings Ltd Smallgoods Pty Ltd Equity = $31.9m Debt = $ 2.9m Capital = $34.8m Development and Lease Property Investments Equity = $17.7m Hold for Longer Term Growth
Slide 14: Organic growth builds shareholder value
For personal use only Organic growth builds shareholder value • Continue to focus on niche markets • Increase market penetration across all business units: category expansion – leveraging off manufacturing capabilities leveraging off existing supply channels • Maintain profit margins by a discip
Slide 15: The key priority is to maximize long term capital value
For personal use only The key priority is to maximize long term capital value and increase cash flow from this valuable asset FFI has a three tiered growth strategy depending on the position and potential development value of the land: • Hold fully developed and leased property for rental income and
Slide 16: FFI is well positioned in its key market segments
For personal use only FFI is well positioned in its key market segments • Diverse manufacturing capabilities across well established business units provides both protection and opportunities • Strong financial position with low debt, quality assets and strong cash flow • Significant property investm
Slide 17: For personal use only
For personal use only • This presentation was prepared by FFI Holdings Ltd. The information herein is current as at 2 November 2016. • 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 pres