Slide 1: FY2015 Results Presentation
Simonds Group For personal use only FY2015 Results Presentation Presented by: Paul McMahon Group CEO & Managing Director Supported by: Robert Stubbs – Chief Financial Officer Gerard Healy – CEO Builders Academy Australia Chris Troman – CEO Simonds Homes Australia
Slide 2: FY15 highlights: Prospectus forecast exceeded
FY15 highlights Prospectus forecast exceeded For personal use only Pro forma EBITDA ($m) • Maiden dividend of 5.3 cps (fully franked) for the period 34.8 since listing to 30 June 2015 • On-market share buy-back program of a maximum of 7.5m (~5%) shares announced 21.7 21.6 • Record profits for both S
Slide 3: FY15 highlights: A year of continued growth
FY15 highlights A year of continued growth For personal use only • Simonds Homes Australia’s east coast growth ahead Simonds Homes Site Starts of schedule • Company record site starts of 2,471 homes 2,471 2,170 2,211 • Expanded course offerings and enrolment growth to 1,925 5,578 enrolments during F
Slide 4: Group structure: Diversified earnings strategy
Group structure Diversified earnings strategy For personal use only • Exceeded prospectus • Exceeded prospectus • Simonds Land forecast forecast Developments rebranded • to Discover FY15 pro forma EBITDA • FY15 pro forma EBITDA of $24.7m Developments of $10.4m (Prospectus $24.3m) (Prospectus $9.8m)
Slide 5: Market forces - housing
Market forces - housing Demand for new housing to remain strong For personal use only Net migration FY15 FY16 FY17 FY18 FY19 FY20 Detached dwellings forecast (000’s) VIC 63,300 58,500 52,500 48,500 45,565 50,190 NSW 64,500 58,700 55,640 51,650 47,010 47,280 QLD 25,500 24,500 27,085 31,250 38,800 44,
Slide 6: Market forces – VET training
Market forces – VET training Opportunity for growth in the building & construction ‘vertical’ For personal use only Top 10 Govt. funded verticals by student no’s (000’s) BAA Community Services 4.2% Business Services Construction, Plumbing & Services, Property Services Tourism, Travel and Hospitality
Slide 7: Simonds Homes Australia
Simonds Homes Australia For personal use only
Slide 8: Simonds Homes Australia: Record site starts, EBITDA and revenue
Simonds Homes Australia Record site starts, EBITDA and revenue For personal use only Site Starts • FY15 pro forma EBITDA result of $24.7m 2471 • Site starts of 2,471 homes 2151 2129 2170 2211 1925 • Pro forma Revenue of $600.2m up 12.0% YOY 1505 • All states profitable 1056 • Increased display home
Slide 9: Multi-brand strategy
Multi-brand strategy Supporting diversified earnings For personal use only Wholesale Retail Medium density and projects We’re building futures…. Together. 9
Slide 10: Key achievements in FY15
Key achievements in FY15 Margin growth, cost control and sensitivity programs For personal use only Margin growth - market leading selection galleries provide clients with many options to upgrade Cost control - strong focus on supplier engagement results in outcomes that are beneficial to all pa
Slide 11: Simonds Homes - Victoria
Simonds Homes - Victoria Sustained success as Victoria’s No.1 builder For personal use only • Site starts of 2,027 up 7.5% YOY • Increase in sales accepts by 14.0% YOY • Stable and mature display home program with 93 display homes across 51 locations • Continued growth of Metropolitan (knock-down re
Slide 12: Simonds Homes - Queensland
Simonds Homes - Queensland Well positioned in a rising market For personal use only • Significant expansion into Queensland • Site starts of 173 up 54.5% YOY • Increase in sales accepts by 48.0% YOY • Expanding display home program with 22 display homes to be open by June 2016 across 13 locations •
Slide 13: Simonds Homes – South Australia
Simonds Homes – South Australia Continued solid results in a steady market For personal use only • Site starts of 161 up 21.0% YOY • Increase in sales accepts by 43.9% YOY • Expanding display home program with 10 display homes to be open by June 2016 across 5 locations Blakes Crossing SA display hom
Slide 14: 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 110 up 52.8% YOY • Increase in sales accepts to 228 in FY15 • Expanding display home program with 11 display homes to be open by June 2016 across 5 locations • Retail strategy to r
Slide 15: Builders Academy Australia (BAA)
Builders Academy Australia (BAA) For personal use only
Slide 16: BAA highlights: Focused on quality training, compliance & growth
BAA highlights Focused on quality training, compliance & growth For personal use only • Prospectus pro forma EBITDA forecast exceeded by 6.1% • $23.2m revenue up from $3.8m in FY14 • Students sourced by BAA directly increased from 7% to 54% over the course of the year • BAA QLD & NSW now firmly esta
Slide 17: BAA highlights: Course expansion to drive future growth
BAA highlights Course expansion to drive future growth For personal use only Course Registrations • Average course registrations continue to increase 1012 • Course enrolment numbers were 4,155 at FYE15 Introduction of 970 Certificate IV WHS • Certificate IV WHS commenced in Feb 2015, albeit 824 850
Slide 18: BAA's 'vertical'
BAA’s ‘vertical’ A proven strategy of “builders For personal use only Education Level Learning Description Status training builders” Advanced Diploma Selecting contractors, overseeing work & • Expected to quality, and liaising with the client commence in 2H FY16 • Sticking to building & construction
Slide 19: BAA Marketing
BAA Marketing Branding success driving new students For personal use only • Operating in a ‘vertical’ enables very clear messaging and demographic targeting • Marketing campaigns have exceeded expectations and increased brand awareness • TV & radio campaigns are driving inbound enquiries • Marketing
Slide 20: Discover Developments
Discover Developments For personal use only
Slide 21: Discover Developments: New profitable income stream
Discover Developments New profitable income stream For personal use only • Profitable projects that will also provide alternate land sources for Simonds Homes Australia • 2 sites totalling 67 lots secured and due to be developed in FY16 • Land fund being established to reduce capital requirements fo
Slide 22: Group financials and outlook
Group financials and outlook For personal use only
Slide 23: Pro forma historical financial highlights
Pro forma historical Financial highlights $m Revenue FY13 547.3 FY14 543.8 FY15 Prospectus 634.4 638.2 All prospectus metrics exceeded For personal use only Gross Profit 112.2 116.7 142.3 140.7 20.5% 21.5% 22.4% 22.0% • On-market share buy-back announced EBITDA 21.7 21.6 34.8 34.0 NPAT 11.3 11.7 21.
Slide 24: On-market share buy-back & dividend
On-market share buy-back & dividend Delivering value for shareholders For personal use only • Board has approved on-market buy-back of ~7.5m shares (~5% of issued capital) over next 12 months • Commence not before 7th September 2014 • Purchase of shares will only be implemented where opportunities e
Slide 25: Balance sheet
Balance sheet Providing certainty in growth strategy planning For personal use only • Continue to maintain low debt levels Balance Sheet ($m) FY15 FY14 Assets - Cash / Equivalents 5.5 15.9 • 3-year $39m corporate debt facility in place - Receivables 45.0 42.9 - Inventories 71.7 63.9 • ‘Other Assets’
Slide 26: Cash flows
Cash flows FY15 FY14 Investing in display homes Summary Cash Flows (pro forma) ($m) For personal use only Cash flows from operating activities • Cash flow from operations $9.5m Receipts from customers 609.0 538.3 Payments to suppliers/employees** (588.2) (516.2) (after tax payments of $10.3m) Intere
Slide 27: Group outlook: Well positioned to deliver in FY16
Group outlook BAA Course pipeline Well positioned to deliver in FY16 For personal use only 8,515 4,803 • Simonds Homes Australia’s sales pipeline at an all time high 4,155 • Growth States the key to expanded future earnings for Simonds Homes Australia 607 as at 30 June 2015 forecast enrolments (FY16
Slide 28: 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
Slide 29: For personal use only
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