Slide 1: 1H2016 Results Presentation
Simonds Group For personal use only 1H2016 Results Presentation Robert Stubbs – Acting Chief Executive Officer & Chief Financial Officer Gerard Healy – CEO Builders Academy Australia Chris Troman – CEO Simonds Homes Australia 25th February 2016
Slide 2: Contents
Contents For personal use only • 1H16 Headlines • Financial Performance • Simonds Homes Australia • Builders Academy Australia • Discover Developments • Madisson Projects • Group Outlook Appendix: Financial Statements We’re building futures…. Together. 2
Slide 3: 1H16 Group Headlines
1H16 Group Headlines Challenging half-year… significant investment in east coast expansion continues For personal use only • Revenue growth of 6.7% pcp for Group Simonds Homes Australia (SHA) up 9.1% to $281.7m Builders Academy Australia (BAA) up 6.2% to $11.6m • New Group CEO Matthew Chun comme
Slide 4: Statutory to Pro Forma Reconciliation
Statutory to Pro Forma Reconciliation For personal use only 1H16 1H16 1H16 1H15 1H15 1H15 Statutory reconciliation ($m) Revenue EBITDA NPAT Revenue EBITDA NPAT Statutory result (1) 318.2 (0.4) (2.2) 299.2 (17.1) (22.3) IPO Share-based Payments (non-cash) (2) - - - - 28.2 28.2 IPO Restructure / Non-r
Slide 5: Pro-Forma Financials
Pro-Forma Financials Revenue growth in regions offset by reduced margins & overheads investment For personal use only • Revenue growth in both Simonds Homes and BAA: Pro forma * 1H16 1H15 Change Simonds Homes Qld, NSW & SA: +66.5% pcp Simonds Homes Vic up 3.7% pcp Revenue 294.3 275.8 +6.7% BAA
Slide 6: Pro-Forma Financials
Pro-Forma Financials Committed to investing in expansion regions, improving systems & on-going compliance For personal use only • Invested in new Qld and NSW sales galleries and colour Display Home Investment in expanding selection centres to deliver increased margins regions of Qld, NSW & SA 26 • S
Slide 7: Simonds Homes Australia (SHA)
Simonds Homes Australia (SHA) For personal use only
Slide 8: Simonds Homes Australia
Simonds Homes Australia Building a strong platform on the East Coast For personal use only Simonds Homes Site Starts • Revenue of $281.7m up 9.1% pcp • Site starts of 1,252 homes, up 2.9% on pcp • All states profitable • Significant investment in interstate growth impacted overall 1,252 margins (dis
Slide 9: Simonds Homes Australia
Simonds Homes Australia Revenue growth and diversification of geographical earnings and risk For personal use only 1H12 1H14 1H16 Site starts: 961 Site starts: 1,113 Site starts: 1,252 We’re building futures…. Together. 9
Slide 10: Simonds Homes - Victoria
Simonds Homes - Victoria Sustained success as Victoria’s No.1 builder For personal use only • Site starts of 980 down (4.4%) pcp • Delays in land titling caused lower starts in first half – majority of which have been resolved – leading to increased site starts in 2H16 • Increase in sales accepts by
Slide 11: Simonds Homes - Queensland
Simonds Homes - Queensland Well positioned in a rising market For personal use only • Significant expansion in South East Queensland • Site starts of 105 up 26.5% pcp • Increase in sales accepts by 54.5% pcp • Expanding display home program with 20 display homes to be open by June 2016 across 12 loc
Slide 12: Simonds Homes – South Australia
Simonds Homes – South Australia Continued solid results in a steady market For personal use only • Site starts of 94 up 27.0% pcp • Increase in sales accepts by 5.6% pcp • Expanding display home program with 7 homes across 3 centres • Further 3 homes across 2 centres under construction in St Clair a
Slide 13: Simonds Homes – New South Wales
Simonds Homes – New South Wales Retail segment the key to second phase of growth For personal use only • Site starts of 73 up 108.6% pcp • Increase in sales accepts by 17.9% pcp • Evolution of business as we migrate to a mix of retail and investor sales • Display home program now established with 9
Slide 14: Builders Academy Australia (BAA)
Builders Academy Australia (BAA) For personal use only
Slide 15: BAA's market environment
BAA’s market environment Building a sustainable business For personal use only • Investment in student experience and retention • Investment in management system to streamline and automate systems and processes • Industry ‘correction’ currently underway is welcomed • Speculated ‘Federal Takeover’ of
Slide 16: BAA highlights
BAA highlights Quality training, compliance & growth in a changing environment For personal use only • $11.6m revenue up from $10.9m in 1H15 • EBITDA of $4.0m (down 20.6% pcp), which reflects investment in operating platform • VET FEE-HELP provider approval in Dec ‘15 will contribute towards FY17 re
Slide 17: BAA highlights
BAA highlights Delivering quality training outcomes in Skills Shortage sector For personal use only Student Completion Rates for • Average course registrations increased to 697 per BAA primary courses month, against 544 pcp • Course enrolments for 1H16 of 1,855, against 1,968 pcp • Average registrat
Slide 18: Discover Developments
Discover Developments For personal use only
Slide 19: Discover Developments
Discover Developments New profitable division to support SHA For personal use only • Small lot sub-divisions providing alternate land sources for SHA without competing with major land developers • Land fund established to reduce capital requirements to ~25% with first syndicate fully subscribed ($6m
Slide 20: Madisson Projects
For personal use only Madisson Projects
Slide 21: Madisson Projects
Madisson Projects For personal use only Mixed profitability, increased margin pressures led to independent review • Acquired in 2002, focused on medium-density apartments and townhouses • Predominantly building developers’ own concepts, designs and specifications • Mixed profitability over the past
Slide 22: Madisson Projects
Madisson Projects For personal use only Orderly closure with existing five projects to be completed by Oct 2016 • During Sep – Dec ’15, completed and handed over six projects totalling $42.1m. • Unsuccessful in winning a number of tenders at appropriate margins • Announcement of orderly closure on 2
Slide 23: Outlook
For personal use only Outlook
Slide 24: Operational outlook
Operational outlook Simonds Homes well positioned to deliver sustainable growth into FY17 For personal use only 2,959 Simonds Sales Pipeline FY16 and FY17 • Simonds Homes Australia’s solid sales pipeline 90 provides support for 2H16 and FY17 375 2,700 • Growth driven by: 1,242 market share gains i
Slide 25: Operational outlook
Operational outlook BAA well positioned for the future Current Course Enrolments as at 20 Feb For personal use only ‘16 4,381 • Enrolments at 20 Feb ‘16 of 4,381 comprising students currently studying having commenced during: 979 FY14: 127 FY 15: 1,675 1H16: 1,600 1,600 Jan-Feb ‘16: 979 • 4,381 curr
Slide 26: Thank you
For personal use only Thank you
Slide 27: Appendix
Appendix For personal use only Balance Sheet Movement in Net Assets Cash flows
Slide 28: Balance sheet
Balance sheet 31 Dec 30 Jun For personal use only Balance Sheet ($m) ‘15 ‘15 • Share buy-back and Madisson Projects loss has impacted Assets - Cash / Equivalents 0.4 5.5 net asset position - Receivables 41.3 45.0 • Share buy-back of 5% of issued capital ($7.9m) - Inventories 61.3 71.7 completed in D
Slide 29: Movement in net assets
Movement in net assets For personal use only • Acquired 7.6m ordinary shares in share buy-back 31 Dec 30 Jun Movement in net assets ($m) for ~$7.9m ‘15 ’15 • Shares on issue post buy-back: 143,841,655 Opening net assets 26.7 14.9 • Dividend payment of 5.3 cents per share (fully Issue of shares - Exe
Slide 30: Cash flows
Cash flows Summary Cash Flows (pro-forma) ($m) Cash flows from operating activities 1H16 1H15 For personal use only Receipts from customers 318.4 293.2 Payments to suppliers/employees * (298.2) (299.5) • Cash flow from operations $7.4m (after tax Interest paid (0.6) (0.5) payments of $12.2m) Income
Slide 31: Disclaimer
Disclaimer For personal use only While every effort is made to provide accurate and complete information, Simonds Group does not warrant or represent that the information in this presentation is free from errors or omissions or is suitable for your intended use. The information provided in this pres