F.f.i. Holdings Ltd. · ASX:FFI
F.f.i — Shareholder Meeting (November 2017)
17 slides from F.f.i's shareholder meeting presentation, Nov 15, 2017
Slide 1: Annual General Meeting 2017 Chairman's Presentation
For personal use only Annual General Meeting 2017 Chairman’s Presentation FFI Holdings Ltd - 2017 AGM
Slide 2: Contents
For personal use only Contents • Highlights FY2017 • Review of Financial Performance • Dividends • Manufacturing Capabilities • Business Acquisition – Orchard Icing • Products and Markets • Review of Food Operations • Review of Property Investments • Capital Employed • Growth Strategy Food Operation
Slide 3: FY 2017 – Solid growth and sound results
For personal use only FY 2017 – Solid growth and sound results • Net profit after tax up 5.2% to $2.2 million • Sales up 7.4% to $33.2 million • Rental income up 15.1% to $0.98 million • Ordinary dividends up 5.3% to 20.0 cps (fully franked) • Strong balance sheet: Equity attributable to members u
Slide 4: Key financial metrics
Key financial metrics For personal use only 2017 2016 Year ended 30 June % change $’000 $’000 Sales 33,184 30,902 Up 7% Earnings before tax: - food operations 2,968 2,930 Up 1% - property income 981 852 Up 15% - interest expense (156) (151) Up 3% - unallocated items (687) (677) Up 1% Total earnings
Slide 5: FY 2017 – Steady improvements in results
For personal use only FY 2017 – Steady improvements in results • Dramatic increase in the cost of major raw materials in the second half (costs expected to decrease in FY18) • Solid sales growth and productivity improvements • Employee labour costs and overhead expenses were well contained • Rental
Slide 6: Maximising long term shareholder return is a key FFI objective
For personal use only Maximising long term shareholder return is a key FFI objective • Final ordinary dividend of 10.0 cps fully franked - full year ordinary dividends of 80 20.0 cps fully franked (2016:19.0 cps) • Total dividends paid $2.08 million 70 (2016: $1.90 million) – up 10% 60 Cents per Sha
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 • Chocolate panning – nuts, fruits, candy • Sugar panning – non pareils, candy coating of chocolate drops • Extrusion – choc vermicelli, rainbow sprinkles • Chocolate manufa
Slide 8: Growth through new food business
For personal use only Growth through new food business • The acquisition of the Orchard Icing business successfully completed • The business is well established, specialising in the manufacture of “ready to roll” icing • Business is being restructured and merged with the cake decorations product div
Slide 9: Diversity across all sales channels
For personal use only Diversity across all sales channels Chocolate Products of Australia chocolate- cake toppings – confectionery – fudge – candy inclusions and decorations Orchard Icing “Ready to roll” icing and decorations Fresh Foods Industries – Bakery Products bakers jams – fruit fillings Prep
Slide 10: Continuing focus on business fundamentals
For personal use only Continuing focus on business fundamentals • Strong focus on product quality and OH&S • Sales initiatives commencing to deliver results • Growth across all market channels driven by new products and innovation • Plant and equipment upgrades continuing to improve reliability and
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 2017 $22.3m - deferred tax $ 4.3m - equity invested $18.0m • Only 27,000 m2 (approx.) income producing, with 32,000 m2 (approx.) vacant • New access road (Verde Drive) now complete
Slide 12: Strategically located near Cockburn Central
For personal use only Strategically located near Cockburn Central FFI FFI Holdings Ltd - 2017 AGM 12
Slide 13: NTA per share of $3.15
NTA per share of $3.15 For personal use only Fresh Food Industries Pty Ltd Food Operations Equity = $17.7m Tradition FFI Holdings Ltd Smallgoods Pty Ltd Equity = $33.6m Debt = $ 2.1m Capital = $35.7m Development and Lease Property Investments Equity = $18.0m Hold for Longer Term Growth FFI Holdings
Slide 14: Organic growth / business acquisitions to build shareholder value
For personal use only Organic growth / business acquisitions to build shareholder value • Continue to focus on niche markets • Organic growth driven from new products across all market channels • Integration and expansion of the new Orchard Icing business • Preference for “bolt on” acquisitions -low
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: Key achievements and highlights
For personal use only Key achievements and highlights • Solid sales and profit growth achieved for FY17 • Successful acquisition of Orchard Icing business • Continuing expansion of manufacturing capabilities • Growth in rental income and property investments that will contribute to future group prof
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 15 November 2017. • 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