Fleetwood Limited · ASX:FWD
Fleetwood — Shareholder Meeting (November 2017)
30 slides from Fleetwood's shareholder meeting presentation, Nov 30, 2017
Slide 1: Annual General Meeting
30 November 2017 Market Announcements Office Australian Securities Exchange Dear Sir/Madam Annual General Meeting In accordance with Listing Rule 3.13.3, please find attached copies of the Board Chair’s address, Managing Director’s address, and slide presentation, which are being presented at the Co
Slide 2: Board Chair's Address
BOARD CHAIR’S ADDRESS Good morning Ladies and Gentlemen. I am pleased to have this opportunity to address the Annual General Meeting of the Members of Fleetwood Corporation. This is the second occasion on which I have had that privilege. There is a quote, attributed to two times British Prime Minist
Slide 3: Board Chair's Address (continued)
Utz and Norton Rose Fulbright, and has recently opened the Perth office of Pinsent Masons, a UK based firm specialising in the infrastructure and energy sectors. At this meeting last year, we announced our commitment to appoint a CFO to support our Managing Director and strengthen the senior managem
Slide 4: Board initiatives: capital allocation, ERP, strategic review
1. Reviewed our allocation of capital to the various business units and set hurdle rates of return for the management. 2. Embarked on a country wide upgrade to our existing ERP system, replacing a legacy system in the east coast modular business as part of the project. The system upgrade includes a
Slide 5: Managing Director's Address
MANAGING DIRECTOR’S ADDRESS Thanks Phil and good morning ladies and gentlemen. Before we move to the 2017 result and our forward outlook, I’d like just to briefly refresh you on the structure of Fleetwood. As you know, the company is split into four separate segments, with each one operating as an a
Slide 6: Turnaround: new management team and reduced debt
And this has seen us bring a completely new management team on board at each one of our operating companies and coincidentally as you can see we have also fully refreshed the board. We have reduced debt to a minimal level, through the sale of Osprey village in Karratha to the West Australian state g
Slide 7: Earnings improvement and revenue mix
And the result of this revenue growth along with the major restructuring I mentioned is that for the first time in a number of years the group has delivered a significant improvement in earnings moving from a loss in 2016 to earnings before interest and tax of just under $15m for 2017. I’d just like
Slide 8: Camec and caravan manufacturing
Taking Camec first, while the recreational vehicles industry has been growing in the last few years, during the period where exchange rates were above parity a number of overseas suppliers entered the market and started to compete with Camec who manufacture in Melbourne. As we have seen exchange rat
Slide 9: Silhouette camper and dealer network
Peter and his team have also redeveloped the Silhouette camper, with the new model having a patented worm drive roof system, compared to other manufacturers who are generally using a winch and cable system. And you might be surprised to learn that we haven’t had a pop top in our range for many years
Slide 10: Caravan market conditions and strategic review
And there is also another factor which has come into play at the start of 2018, in that we are seeing very unstable market conditions in the industry as a whole for the first time in many years, and although we have been outperforming most of our competitors at recent caravan shows, sales growth in
Slide 11: Modular accommodation segment
Our modular accommodation segment is managed by Chief Executive Officer, Jarrod Waring. Jarrod and his team recently negotiated an extension to the company’s supply agreement with Gateway Lifestyle, which delivers volume to our Queensland operation and also facilitated opening a factory in New South
Slide 12: 2018 outlook
We recently installed a permanent modular school for Hume Anglican Grammar in Victoria. Designs similar to that are the basis for the permanent modular program in Victoria. Lastly, while I did say the company is no longer reliant on mining, we have recently been awarded a number of small projects in
Slide 13: 2017 Annual General Meeting: Delivering the Promise
DELIVERING THE PROMISE 2017 Annual General Meeting Perth Convention and Exhibition Centre Thursday 30 November 2017 9:30am AWST 13 1
Slide 14: Group Structure
GROUP STRUCTURE Fleetwood is focused on education, affordable housing and recreation 14 2
Slide 15: Turnaround Plan for Current Operations
TURNAROUND PLAN FOR CURRENT OPERATIONS Significant progress made. Still more to achieve 3 YEARS AGO TODAY WHEN PLAN COMPLETE 15 3
Slide 16: Financial Performance
FINANCIAL PERFORMANCE Growing revenue and EBIT, reducing capital employed Group Revenue ($m)* Group Underlying EBIT ($m)* 330.1 284.5 263.4 14.6 2015 2016 2017 2015 2016 2017 -3.9 -2.1 Net Cash (Debt) ($m) Capital Employed ($m) 269.9 3.1 0.4 183.2 195.5 2015 2016 2017 (55.9) 2015 2016 2017 16 *Group
Slide 17: Financial Performance: business refocused on growth sectors
FINANCIAL PERFORMANCE Business refocused on growth sectors 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Education Recreation Resources Affordable Housing Other 2015 2016 2017 17 5
Slide 18: Parts and Accessories
PARTS AND ACCESSORIES Revenue 87.6 86.6 78.2 2015 2016 2017 EBIT 1.3 0.9 0.6 2015 2016 2017 18 6
Slide 19: Parts and Accessories
PARTS AND ACCESSORIES Camec Retail Store, Qld Camec Warehouse, Dandenong South Fleetwood
Slide 20: Recreational Vehicles
RECREATIONAL VEHICLES Revenue 47.4 34.0 29.8 2015 2016 2017 EBIT 2015 2016 2017 -6.7 -7.6 -8.1 - 20 8
Slide 21: Recreational Vehicles: Princeton
RECREATIONAL VEHICLES Old Princeton New Princeton Fleetwood
Slide 22: Recreational Vehicles: Silhouette
RECREATIONAL VEHICLES Old Silhouette New Silhouette Fleetwood
Slide 23: Recreational Vehicles: Pop-Tops
RECREATIONAL VEHICLES Old Fashioned Pop-Tops Seka and Hybrid Fleetwood
Slide 24: Dealer Network in 2015
RECREATIONAL VEHICLES Dealer Network in 2015 Exclusive - 2 v Multi franchise – 15 Total = 17 24 12
Slide 25: Dealer Network in 2017
RECREATIONAL VEHICLES Dealer Network in 2017 Exclusive -15 Multi franchise – 7 Total = 22 25 13
Slide 26: Recreational Vehicles
RECREATIONAL VEHICLES Revenue 47.4 34.0 29.8 2015 2016 2017 EBIT 2015 2016 2017 -6.7 -7.6 -8.1 - 26 14
Slide 27: Village Operations
VILLAGE OPERATIONS Revenue 34.7 30.2 26.3 2015 2016 2017 EBIT 9.0 6.9 5.2 2015 2016 2017 27 15
Slide 28: Village Operations: Searipple Village
VILLAGE OPERATIONS Searipple Village, Karratha 28 Fleetwood *
Slide 29: Modular Accommodation
MODULAR ACCOMMODATION MODULAR ACCOMMODATION Significant Education, Government and Affordable Housing Demand Revenue 175.8 142.5 116.4 2015 2016 2017 EBIT 15.2 3.6 2015 2016 2017 -3.6 29 17
Slide 30: Modular Accommodation: Hume Anglican Grammar School
MODULAR ACCOMMODATION Hume Anglican Grammar School, Victoria 30