F.f.i. Holdings Ltd. · ASX:FFI
F.f.i — Shareholder Meeting (November 2014)
17 slides from F.f.i's shareholder meeting presentation, Nov 13, 2014
Slide 1: Annual General Meeting 2014 Chairman's Presentation
For personal use only Annual General Meeting 2014 Chairman’s Presentation FFI Holdings Ltd - 2014 AGM
Slide 2: For personal use only
For personal use only • Highlights FY2014 • Review of Financial Performance • Dividends • Review of Food Operations • Review of Property Investments • Growth Strategy Food Operations Property Investments • Conclusion FFI Holdings Ltd - 2014 AGM 2
Slide 3: FY 2014 - A difficult but successful year for FFI
For personal use only FY 2014 - A difficult but successful year for FFI • Net profit after tax attributable to members up 12.5% to $3.22 million (earnings per share 36.2 cents) • Strong balance sheet: Equity up 10% to $29 million, net debt = $2.1 million, Debt to equity gearing = 7.2% • Long term le
Slide 4: Key financial metrics
Key financial metrics For personal use only 2014 2013 Year ended 30 June % change $’000 $’000 Sales 30,254 30,038 Steady Earnings before interest and tax: - food operations 2,210 3,307 down 33% - property income 179 - n/a - property revaluations 2,279 - n/a - property sales - 885 n/a Total EBIT 4,66
Slide 5: 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 80 • Final ordinary dividend of 7.5 cps fully franked - full year ordinary dividends of 17.5 cps fully 70 franked (23.5 cps previously) 60 Cents
Slide 6: Food operations businesses and products
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 7: Key Business Fundamentals
For personal use only Key Business Fundamentals • Diverse manufacturing capabilities - in terms of both equipment and technical knowhow • Quality products - supported by innovation and new product development • Extensive distribution network - Australia wide, industrial, food service, retail • Exten
Slide 8: Summary of Performance
For personal use only Summary of Performance • The financial results from food operations are disappointing • Significant costs incurred in the development, manufacture and distribution of new range of sports nutrition retail products – written off • The issues that resulted in the decline in profit
Slide 9: Outstanding progress in development of property
For personal use only Outstanding progress in development of property • A further $4.1 million was invested in the investment properties • Increase investment was applied to: - The servicing and subdivision of land held for investment - The development of a property for long term rental income • Inv
Slide 10: Rental income commenced from property held for investment
For personal use only Rental income commenced from property held for investment • Rental income commenced April 2014 • 10 year lease with initial rental of $741,000 per annum • Minimum annual rent increases 3.5% • Secure lease with successful multinational company FFI Holdings Ltd – 2014 AGM 10
Slide 11: Ongoing organic growth opportunities
Ongoing organic growth opportunities For personal use only Fresh Food Industries Pty Ltd Food Operations Equity = $16.7m Tradition FFI Holdings Ltd Smallgoods Pty Ltd Equity = $29.0m Debt = $ 2.1m Development and Capital = $31.1m Lease Property Investments Equity = $14.4m Hold for Longer Term Growth
Slide 12: Organic growth is low risk / high return strategy
For personal use only Organic growth is “ low risk / high return” strategy and together with acquisition opportunities remains an important focus for FFI Upgrade “Core competences” production / reduce costs Existing skills and knowhow “Privileged assets” Develop new products and processes Existing p
Slide 13: 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 • Current equity investment At current value = $18.5m less deferred tax = $ 4.1m Equity invested = $14.4m • Property investments currently held: - Fully developed and leased
Slide 14: FFI
For personal use only FFI FFI Holdings Ltd - 2014 AGM 14
Slide 15: Three tiered growth strategy for property
For personal use only • FFI has a three tiered growth strategy depending on the position and potential development value of the land 1) Hold fully developed and leased property for rental income and long term capital gain 2) Pursue opportunities for further development and lease income 3) Hold land
Slide 16: FFI is well positioned in its key market segments
For personal use only FFI is well positioned in its key market segments • Profitable, well established business units, with many opportunities for growth • Strong financial position with low debts, quality assets and strong cash flows • Significant property investments that will contribute to group
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 13 November 2014. • 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