F.f.i. Holdings Ltd. · ASX:FFI
F.f.i — Shareholder Meeting (November 2013)
17 slides from F.f.i's shareholder meeting presentation, Nov 14, 2013
Slide 1: Annual General Meeting 2013 Chairman's Presentation
For personal use only Annual General Meeting 2013 Chairman’s Presentation FFI Holdings Ltd - 2013 AGM
Slide 2: For personal use only
For personal use only • Highlights FY2013 • Review of Financial Performance • Factors Affecting Financial Performance • Dividends • Capital Management – Special Dividend • Review of Food Operations • Review of Property Investments • Growth Strategy Food Operations Property Investments • Conclusi
Slide 3: FY 2013 was an outstanding success for FFI
For personal use only FY 2013 was an outstanding success for FFI • Net profit after tax attributable to members up 38% to $2.86 million (earnings per share 34.7 cents) • Strong balance sheet: $2.9 million cash, no debt • Property development commenced to provide for long term lease income • Proceeds
Slide 4: Key financial metrics
For personal use only Key financial metrics 2013 2012 Year ended 30 June % change $’000 $’000 Sales 30,038 32,240 down 7 % Profit before tax: - from food operations 3,264 3,105 up 5 % - from property sales 885 - n/a Profit after tax attributable to members 2,862 2,071 up 36 % Dividends paid/payable
Slide 5: Financial results reflect the robust nature of the FFI food business
Given the general difficulties facing the industry, the financial results For personal use only reflect the robust nature of the FFI food business • Sales revenue down: ₋ Increased competition – local and imported products ₋ Rationalisation of product offering - major retailers ₋ Timing of product l
Slide 6: Maximising long term shareholder return is FFI's key objective
For personal use only Maximising long term shareholder return is FFI’s key objective and drives all strategies, performance goals and management processes • Final dividend of 13.5 cps fully franked 80 - full year dividends of 23.5 cps fully 70 franked (22.0 cps previously) 60 • Maintains solid divid
Slide 7: Ongoing capital management program to maximise shareholders value
Ongoing capital management program to maximise For personal use only shareholders value • Special dividend of 25.0 cents per share (fully franked) declared • Record Date 6 December 2013 • Payable 20 December 2013 • Total franked dividend payable amounting to $2.15 million • DRP operative for special
Slide 8: Food operations business units and products
For personal use only Chocolate Products of Australia Products: chocolate – cake toppings – confectionery – fudge – candy inclusions and decorations Markets: food service – wholesale – private label – retail – industrial Fresh Foods Industries – Bakery Products Products: bakers jams – fruit fillings
Slide 9: Overall the business units continue to perform satisfactorily
For personal use only Overall the business units continue to perform satisfactorily • Quality, high calibre customers across all divisions • Diverse channels in all markets – private label, food service, wholesale, industrial supply and retail • Maintenance of highest levels in quality systems, prod
Slide 10: Cash flow commenced from land held for investment purposes
For personal use only Cash flow commenced from land held for investment purposes • The company achieved two milestones in FY2013: 1. The completion of the subdivision development and sale of 3 vacant industrial lots ⁻ Proceeds from sale $3.1million ⁻ Profit before tax $885,000 2. Development of prop
Slide 11: Ongoing organic growth opportunities, with increased focus on acquisitions
Ongoing organic growth opportunities , with increased focus on For personal use only pursuing acquisition opportunities Fresh Food Industries Pty Ltd Food Operations Equity = $14.7m Tradition Smallgoods Pty Ltd FFI Holdings Ltd Equity = $26.4m Development and Lease (Commenced) Property Investments E
Slide 12: Organic growth is a low risk / high return strategy
For personal use only Organic growth is “ low risk / high return” strategy and together with acquisition opportunities remains an important focus for FFI Upgrade “Core competences” production / reduce costs Existing skills and knowhow “Privileged assets” Develop new products and processes Existing p
Slide 13: Key priority is to enhance long term capital value
For personal use only The key priority is to enhance long term capital value and create a cash flow from this valuable asset • Land held as property investments = 54,000 m2 at Jandakot in Perth • Current equity investment At current value = $12.1m less deferred tax = $3.4m Equity invested = $8.7m •
Slide 14: Three tiered property growth strategy
For personal use only 3 lots sold. Realise value from fully Property sales No further sales currently developed areas proposed Enhance and release value Development First development commenced through development and and lease lease potential Long term value increases from Retain areas that will ben
Slide 15: Sold
For personal use only Sold FFI Holdings Ltd - 2013 AGM 15
Slide 16: FFI is well positioned in its key market segments
For personal use only FFI is well positioned in its key market segments • Profitable, well established business units, delivering high returns on funds employed • Strong financial position with net cash, quality assets and strong cash flows • Significant property investments that will contribute to
Slide 17: For personal use only
For personal use only • This presentation was prepared by FFI Holdings Ltd. The information herein is current as at 14 November 2013. • This presentation is not an offer or invitation for subscription or purchase of securities or a recommendation with respect to any security. Information in this pre