Fleetwood Limited · ASX:FWD
Fleetwood — Investor Presentation (March 2024)
23 slides from Fleetwood's investor presentation, Mar 12, 2024
Slide 1: Rottnest Investor Presentation
Euroz Hartley Rottnest Investor Presentation March 2024
Slide 2: Operating Segments
Operating Segments WA SA VIC NSW QLD
Slide 3: Highlights H1 FY24
Highlights H1 EBIT of $6.3m Group safety FY24 (vs $0.2m in H1 FY23). performance 28% reduction in MTIFR. Medium term Building Solutions demand for returned to Searipple profitability. contracted out to 2027. Net cash of Dividend 2.5 cps $34.1m. fully franked (nil H1 FY23). Focus now on Executive Man
Slide 4: Earnings Summary
Earnings Summary ● Improved earnings in Building and Community $ Million H1 FY24 H1 FY23 Change Solutions. Revenue 229.9 223.1 3% ● Revenue in Building Solutions rebounded strongly from H2 FY23 levels of $127.7m. EBITDA 14.5 8.7 66% ● Building Solutions gross margins nearing target Depreciation 8.2
Slide 5: Cashflow Summary
Cashflow Summary $ Million H1 FY24 H1 FY23 EBITDA 14.5 8.7 ● The Company maintained a solid net Interest paid (net) (0.0) (0.6) cash position. Tax (0.0) (1.1) ● Year-end classroom moves and amortisation of construction advance Working capital (17.4) (15.6) (and other) payments saw Building Solutions
Slide 6: Balance Sheet Summary
Balance Sheet Summary $ Million H1 FY24 H1 FY23 ● Total debt and bonding facilities of $81m. Net working capital 40.5 23.7 ● Project bonding outstanding fell from Property Plant and 32.0 32.6 Equipment $22.5m in December 2022 to $18.4m in Intangibles 46.8 47.4 December 2023 reflecting reduced Other
Slide 7: Building Solutions - Performance
Building Solutions - Performance ● EBIT of $3.2m on revenue of $172.1m. $ Million H1 FY24 H1 FY23 Change ● Return to profitability built on strategy Revenue 172.1 168.2 2% progress. EBIT 3.2 (2.3) n/a ● Revenue essentially flat as traditional modular works replaced major project revenues. ● Building
Slide 8: Progressing our Build Transform & Grow Strategy in Building Solutions
Build How we think about Build Capability improved earnings in this business. Build Systems & Processes Progressing our Build Brand Target 7% EBIT Margin Build Transform Transform & Grow Strategy Revenue Diversification Utilisation in Building Builder to Manufacturer Gross Profit Solutions Reduced C
Slide 9: Building Solutions - Strategy Progress
Building Solutions - Strategy Progress ● Overhead staff numbers remain below the June 2022 peak. ● MTIFR reduced by 28% in H1 FY24. ● Centralisation of Design and Estimating function. ● Factory capacity and utilisation now being monitored and driving sales and operation planning. ● Procurement savin
Slide 10: Building Solutions - Outlook
Building Solutions Outlook - Outlook ● Acceptance of modular construction as a design, cost and time effective solution continues to grow. ● Fleetwood is positioning to supply to lifestyle villages, affordable housing and defence sectors. ● Move towards repeatable modular works has seen our order bo
Slide 11: Community Solutions - Performance
Community Solutions - Performance ● EBIT of $4.7m on revenue of $17.2m. $ Million H1 FY24 H1 FY23 Change ● FY23 major client shutdowns at Searipple Revenue 17.2 13.1 31% Village extended into the early part of FY24. EBIT 4.7 2.6 83% ● Searipple Village being prepared for upcoming demand. ● The five-
Slide 12: Community Solutions - Strategy & Outlook
Community Solutions Strategy - Strategy & Outlook ● Base utilisation secured with potential for further demand uplift as planned projects gain momentum. ● Additionally, Build Own Operate/Transfer (BOOT) or Build to Rent (BTR) opportunities in the mining, residential and aged care sectors remain unde
Slide 13: Demand for transient workforce accommodation in Karratha growing steadily to mid 2026
Demand for transient workforce accommodation in Karratha growing steadily to mid 2026 Source: Various histogram workforce demand provided by mining/construction companies and management estimates.
Slide 14: Searipple refurbishment underway
Searipple refurbishment underway Dining Hall ablutions Bathroom Old Bathroom New upgrade Concrete repairs Gym refurbishment Roof Sheets Old Roof Sheets New Rooms Old Rooms New
Slide 15: Green energy and battery metal projects nationally to support BOO(T) and key worker villages
Green energy and battery Traditional workforce accommodation metal projects nationally to support BOO(T) National green energy and battery metal project activity planned and underway and key worker villages Key worker housing Modern workforce accommodation BOO(T) Source: A combination of Resources a
Slide 16: BOO(T) implementation model
CLIENT Joint Venture Design & Construct Finance Partner Partner BOO(T) implementation Project Delivery Community Solutions model Design & Construct Partner Building Supply Facility Manager
Slide 17: RV Solutions - Performance
RV Solutions - Performance ● EBIT of $1.8m on revenue of $40.0m. $ Million H1 FY24 H1 FY23 Change ● RV Solutions saw reduced consumer discretionary demand. Revenue 40.0 41.6 -4% ● Trading conditions were difficult and inconsistent EBIT 1.8 3.9 -54% month to month. ● The OEM segment saw trading condi
Slide 18: RV Solutions - Strategy & Outlook
RV Solutions Strategy ● Expand offering in the aftermarket and increase visibility - Strategy & Outlook and engagement with caravan buyers. ● Commercialise new products in the OEM segment. ● Update IT systems to take advantage of current technological capability and improve productivity. ● Further t
Slide 19: Camec – New Products
Camec – New Products CAMEC MULTI CAMEC CAMEC FUNCTION MICROWAVE INDUCTION COOKTOPS LITHIUM BATTERIES
Slide 20: NRV Service Centre
NRV Service Centre Service ● Migrate brand name change to CAMEC Service and Repair Centre. ● Capability to offer service and repairs of Caravans and Motor Homes; ○ General servicing of brakes and bearings ○ Installation of accessories (Camec)– air conditioning, heating, awnings, water tanks and pump
Slide 21: Summary
Summary Overall ● Focus on revenue quality, ● Building and Community sustainably improving margins, Solutions gaining momentum. increasing utilisation and managing overheads. ● Roadmap to improve quality ● Recent 5-year agreements with ● Medium term outlook for and consistency of earnings Rio Tinto
Slide 22: Thank you
Thank you Investor Relations info@fleetwood.com.au 08 9323 3300
Slide 23: Important Notices and Disclaimer
Important Notices and Disclaimer The information contained in this presentation is provided by Fleetwood Limited ACN. 009 205 261 (Fleetwood) for informational purposes only and does not constitute an offer, invitation or recommendation to subscribe for or purchase any securities and neither this pr