Oldfields Holdings Ltd · ASX:OLH
Oldfields — Investor Presentation (October 2012)
21 slides from Oldfields's investor presentation, October 2012
Slide 1: Company Presentation
Oldfields Holdings Ltd Company Presenta6on Chris Giles – Managing Director October 2012 1
Slide 2: Disclaimer
Disclaimer • The informa1on contained in this document (“Presenta1on”) has been prepared by Oldfields Holdings Limited (“Company”) in connec1on with a non-‐ renounceable one for one (1 : 1) rights issue at an offer price of $0.10 per new share to raise up to approximately $5.6million (before expenses
Slide 3: Disclaimer (Continued)
Disclaimer (Con1nued) • This Presenta1on may include certain statements that may be deemed “forward-‐looking statements”. All statements in this presenta1on, other than statements of historical facts, that address future ac1vi1es and events or developments that the Company expects, are forward-‐lo
Slide 4: Opportunity to participate in the transformation of an established Australian business
Opportunity to par1cipate in the ongoing transforma1on of an established Australian business. Founded in 1916 and listed on the ASX in 1960, this financial restructure will deleverage the balance sheet allowing the business to con1nue to improve profitability and cash flow. 4
Slide 5: Oldfields Overview
Oldfields Overview • Three key business categories: – Paint Applica1ons – Scaffolding – Hire and Sales – Sheds (and greenhouses) • Compe66ve Advantages: – Interna1onal product sourcing and manufacture – Indonesian JV for paint applica1ons manufacturing and sales – Wholly owned scaffolding manufacturing
Slide 6: Financial Restructure Proposal
Financial Restructure Proposal • Oldfields to repurchase $10M of bank debt for $5M • Oldfields intends to raise $5.6M by way of a non-‐renounceable rights issue (on a one new share for one exis1ng share basis) at 10c per share • Board support with Mr Lewis Timms, an exis1ng major shareholder and Chri
Slide 7: Debt Structure (Post Capital Raising)
Debt Structure (Post Capital Raising) 1. Senior Debt ($3.0M) 2. Deferred Senior Loan Note ($2.5M) Bank Debt June 30, 2012 15.1M – Term 10yrs Capitalised Interest July-‐Nov 0.4M Total Bank Debt Nov 30, 2012 15.5M – Repayment or par1al repayments at any1me, at op1on of Buy Back 10.0M Oldfields Total D
Slide 8: Transformation Highlights
Transforma1on Highlights • Implemented cultural change to re-‐engage with the customer and consumer • Closed loss making retail sheds and cleaning products businesses • Good distribu1on of paint applica1on products in Masters hardware chain and key independent paint stores • Gained price increases
Slide 9: Oldfields Rebranding
Oldfields Rebranding • Bringing the brand into the 21st Century • Brands being revitalised • Focus has been on re-‐engaging trade customers, and developing a strong consumer offering for DIY customers • All products sold under the Oldfields umbrella 9
Slide 10: Rebranding
Rebranding Before Eo Za : PAINTER’S DROP CLOTH —eE | . bere } d | | S i My — > . r = ia Y / SCAFFOLD: EER oldfield, » oldfields
Slide 11: Growth Opportunities
Growth Opportuni1es Paint Applica6ons • New entrant to hardware market presents good opportunity for Oldfields to become a household name once again in the DIY market • Con1nue to grow business through improved product offering in DIY and trade paint stores Scaffolding • Scaffolding business set to rebo
Slide 12: Growth Opportunities
Growth Opportuni1es New products • Opportuni1es exist for small bolt on acquisi1ons • Leverage suppliers’ R&D centres for innova1on • Small greenhouses to suit higher density dwellings • Opportuni1es to enter complimentary product categories in the hardware market leveraging the Oldfields brand equit
Slide 13: Financial Information
Financial Informa1on $’000’s FY’12 FY’13 • Expec1ng strong revenue growth in Paint Applica1ons par1ally offset by revenue decline Revenue 28,833 29,163 in scaffolding due to con1nued so`ness in the construc1on sector EBITDA 872 2,000* • Growth from DIY hardware outlets and price increases EBITDA % 3.0
Slide 14: Pro-forma Balance Sheet
Pro-‐forma Balance Sheet Applying the results of the capital raising to the most recent published balance sheet, and applying capitalised interest from July 12 to Nov 12 assuming 100% take up of rights issue Item As at June 2012 Change Post Rights Issue & Capitalised Interest Jul-‐Nov Current Asse
Slide 15: Corporate Structure
Corporate Structure Item June 30, 2012 Post Raising Pro Forma Senior Debt $14.1M $ 3.0M Cash at Bank $ 0.4M $ 0.6M Trade Facility $ 1.0M Incl. in Senior Debt Deferred Senior Loan Nil $ 2.5M Total Equity $ 0.8M $10.7M % top 20 shareholders 88.6% n/a 15
Slide 16: Risks
Risks • Oldfields exposed to general and economic risks associated with the residen1al and commercial construc1on sector par1cularly through the scaffold division • If Oldfields does not raise at least $5M (either through debt of equity funding), Oldfields will not be able to make the $5M payment as it
Slide 17: Appendix
Appendix oldfields ©
Slide 18: Recent Activity
Recent Ac1vity Oldfields Scaffold undertakes a wide range of ac1vity from hire of mobile towers, house wraps for buildings to major construc1on projects with Mari1me Services, Qantas and others 18
Slide 19: Rebranding to meet the new Oldfields Customers
Rebranding to meet the new Oldfields Customers 19
Slide 20: Garden Sheds and New Greenhouses
Garden Sheds and New Greenhouses 20
Slide 21: Board and Senior Management
Board and Senior Management • Independent Chairman and Audit Commi[ee Chair, Julie Garland-‐McLellan FAICD: professional company director, interna1onally renowned governance authority, civil engineer and MBA, former AICD Council member, senior execu1ve with BHP and KPMG. • Managing Director, Chris
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