Slide 1: Investor Presentation 2014 Full Year Results
Investor Presentation 2014 Full Year Results 5 SEPTEMBER 2014 Andrew Buckley – Executive Chairman Sharyn Williams – C.F.O.
Slide 2: Disclaimer
Disclaimer This document, and any constituent or associated presentation, information or material (collectively, the Material), is not (and does not form part of) an offer, solicitation, invitation or recommendation in respect of any securities and neither the Material nor any part of it will form t
Slide 3: Corporate Profile
Corporate Profile ASX Code CMI Substantial Shareholders Share Price (4 Sep 2014) $1.57 • Le Rae Pty Ltd & Others (38.06%) Issued Capital • Acorn Capital Limited (8.90%) - Shares 34.6m - Performance Rights 0.5m Top 10 shareholders (60.14%) Market Capitalisation $54.2m Top 20 shareholders (70.58%) Cas
Slide 4: Performance FY2014
Performance FY2014 Revenue • Revenues decreased 17% – Electrical 28% decrease – TJM 1% growth • NPAT – $3.5m down 64% down from $9.8m • EBIT - $5.0m – 1H14 $3.2m; 2H14 $1.8m • EPS – FY14 10.29; FY13 29.05 • Cashflow from operations – $6.0m (FY14) vs. $10.7m (FY13) EBIT* • Net cash $6.6m • Dividends
Slide 5: Financial Performance
Financial Performance FY2014 Profit Summary Electrical TJM Corp FY2014 #039;000 #039;000 #039;000 #039;000 Revenue 50,853 41,448 90 92,391 EBITDA 11,233 (2,248) (2,220) 6,765 EBITDA margin % 22% (5%) 7% EBIT 11,052 (3,829) (2,222) 5,001 Operating PBT 11,052 (3,839) (2,372) 4,841 Tax (1,294) Reported NPAT 3,547
Slide 6: Financial Performance: FY2014 Balance Sheet
Financial Performance FY2014 Balance Sheet Electrical TJM Corp FY2014 #039;000 #039;000 #039;000 #039;000 Current assets 24,004 21,732 5,923 51,659 Non-current assets 9,473 6,981 318 16,772 Total assets 33,477 28,713 6,241 68,431 Current liabilities 4,742 6,300 315 11,357 Non-current liabilities 55 106 28 189 T
Slide 7: Cash Generation FY2014
Financial Performance Cash Generation FY2014 16.0 0.1 0.1 14.0 2.2 12.0 3.1 8.2 10.0 $m 8.0 2.9 6.0 4.0 6.6 6.7 2.0 - Open Bal Operational Int Recd Borrowings Tax, Int Exp Dividends Capex Close Bal Paid Page 7
Slide 8: Working Capital
Financial Performance Working Capital 40,000 35,000 30,000 25,000 #039;000's 20,000 TJM Electrical 15,000 10,000 5,000 0 June 2012 June 2013 June 2014 *Working Capital = Inventory + Trade debtors – Trade creditors Page 8
Slide 9: Electrical Division
Electrical Division • Formed in 1998, distributes and manufactures industrial electrical Revenue products • Design and supply of plugs, couplers, high voltage cables, flexible cables, fire and explosive retardant products and manufacture of specialty electrical cables • Provides electrical products
Slide 10: Electrical Division
Electrical Division • Operates across 7 sites in Australia • Experienced, stable management • 56 employees (approximately) • 5 Business units • Minto Industrial Products (plugs, couplers, glands) • XLPE Cable • Aflex Flexible Cable • Hartland Cables • Flameproof Engineering • Minto has strong market
Slide 11: TJM Products
TJM Products • Established in 1973 Revenue • Designs, manufactures and distributes accessory products for 4WD and light commercial vehicles • Provides products to: • Australian aftermarket $23.8m*, 57% of revenue • Exports $10.7m*, 26% of revenue; and • Original Equipment $6.9m*, 17% of revenue • 12
Slide 12: TJM Products
TJM Products • Product range includes: • Bull bars (Steel & Alloy) • Side/rear bars • Suspension • Recovery equipment • Camping equipment • Differential lockers • Snorkels & Flares • 58 branded independently owned TJM stores across Australia • Exports to 38 countries via independent distributors • S
Slide 13: Dividend Policy
Dividend Policy • Board has reviewed dividend policy • Previous policy was 40% payout ratio • Healthy cash flow and strong balance sheet has allowed the Board to adjust policy • New policy is to allow up to 60% of profits to be paid out Page 13
Slide 14: Board Changes
Board Changes • In April 2014 there was a significant restructure of the CMI Limited Board • Danny Herceg (former Chairman) and Ross Rolfe (former non-executive Director) stepped down • Andrew Buckley joined the Board as Executive Chairman • Jeff Forbes joined as an independent non-executive Directo
Slide 15: Strategy
Strategy • New Board and Executive Chairman are considering all options for the business • Key strategic requirement is to determine the future of TJM Products division • Adviser engaged to review all strategic options • Review almost complete with outcomes to be determined by December 2014 • Review
Slide 16: Outlook
Outlook • Impact of subdued conditions in the resources sector remains significant for CMI Electrical division and is not expected to recover quickly • Some improvement in infrastructure and construction activity expected in second half of FY15 • These conditions expected to continue to impact earni