Fleetwood Limited · ASX:FWD
Fleetwood — Shareholder Meeting (November 2018)
23 slides from Fleetwood's shareholder meeting presentation, Nov 30, 2018
Slide 1: Annual General Meeting announcement cover letter
For personal use only 30 November 2018 Market Announcements Office Australian Securities Exchange Dear Sir/Madam Annual General Meeting In accordance with Listing Rule 3.13.3, please see attached a copy of the Chairman’s address and Managing Director’s address and presentation slides, which are bein
Slide 2: Chairman's Address
CHAIRMAN’S ADDRESS Good morning ladies and gentlemen, and welcome to the Annual General Meeting for For personal use only Fleetwood Corporation for 2018. My name is Phillip Campbell and I am the Non-Executive Chairman of Fleetwood Corporation Limited. As I am advised there is a quorum present, I am
Slide 3: Chairman's Address (continued)
getting this correct, both in terms of the quantum of fixed and variable remuneration and in terms of focusing the executives on the right outcomes. It is a task made more challenging with shareholder’s opinions on remuneration evolving For personal use only further with each passing year. One impor
Slide 4: Managing Director's Address
MANAGING DIRECTOR’S ADDRESS Thanks Phil and good morning ladies and gentlemen. For personal use only Before we move to the 2018 result and our forward outlook, I would like to take a moment to refresh you on the structure of Fleetwood. As you know, the company is split into three segments, with each
Slide 5: Managing Director's Address: Modular Accommodation
Our various modular accommodation businesses which previously operated as state based operational units, have now been consolidated into a single national business. Our team in this business have recently made two key achievements. For personal use only The first is securing the award of a number of
Slide 6: Managing Director's Address: MBS and caravan sale
Finally, I’d just like to point out that had we owned MBS throughout the 2018 financial year, EBIT for the segment would have been around $20m and return on capital would have been approximately 19%. For personal use only This slide shows two examples of permanent modular schools delivered in Victor
Slide 7: Managing Director's Address: Flexiglass and Northern RV
in place into which Flexiglass products could be added. We found a suitable acquirer and the business was sold for net tangible assets plus $1m for goodwill. With respect to the acquisition of Northern RV, the strategic intent was to improve the For personal use only company’s parts and accessories
Slide 8: Managing Director's Address: Village Operations demand
Towards the end of FY2018 and into FY2019 we have seen an increase in the regularity of shutdown activity in Karratha, and along with shutdowns occurring more regularly, at times they have been larger in scale and in some cases have lasted longer than they have historically. For personal use only Wh
Slide 9: Managing Director's Address: Village Operations outlook
In Village Operations, good year to date results and delays to new capacity coming on line provide better certainty of near term earnings, however there could be a lull in earnings in the second half of calendar year 2019 ahead of expected construction demand coming on line in the medium term. For p
Slide 10: Fleetwood AGM presentation
For personal use only 2018 Annual General Meeting The Westin 480 Hay Street Perth Friday, 30 November 2018 9:30am AWST 1
Slide 11: Group Structure
Group Structure For personal use only Modular Parts and Village Operations Accommodation Accessories 2
Slide 12: Year in Review
Year in Review For personal use only • Loss making businesses sold : Flexiglass and Caravan Manufacturing • Two complementary acquisitions • Well supported $60M capital raising expected to be EPS and ROE accretive • West Coast Modular now profitable in own right and part of a national business 3
Slide 13: Financial Performance
Financial Performance For personal use only Revenue ($m) EBIT ($m) 332.3 31.0 262.4 267.0 22.7 18.8 2017 2018 Proforma 2017 2018 Proforma Net Cash ($m) ROCE (%) 13.4 14% 12% 11% 0.4 0.6 2017 2018 Proforma 2017 2018 Proforma Note: The above charts exclude the impacts of the discontinued operations an
Slide 14: Modular Accommodation
Modular Accommodation For personal use only Revenue Operations 228.9 179.3 • Eight manufacturing facilities across the country 175.8 • Business consolidated into one operating unit in FY2018 • Shared services in Melbourne CBD. FY 2018 2017 2018 Proforma • Mining project awards in WA • Delivered firs
Slide 15: Permanent Modular Program
Permanent Modular Program For personal use only Yallourn Primary School, Victoria Elwood College Project, Victoria 6
Slide 16: Corrections
For personal use only Corrections 7
Slide 17: Remote Hotels
Remote Hotels For personal use only Rules Club Wagga Hotel, NSW 8
Slide 18: Sale of Caravan Manufacturing
Sale of Caravan Manufacturing For personal use only • Independent strategic review undertaken in 1H2018 • Interim performance deliverables implemented • Agreement for sale of business executed in June 2018 • Goodwill sold for $1m • Raw materials and finished goods sold to purchaser at commercial ter
Slide 19: Parts and Accessories
Parts and Accessories For personal use only Operations Revenue • Parts and accessories for recreational vehicles 82.3 • OEM, aftermarket, trade and retail channels 67.2 66.6 • Branches throughout Australia and NZ FY 2018 • Decline in locally produced caravan sales 2017 2018 Proforma • Market share i
Slide 20: Village Operations
Village Operations For personal use only Revenue Operations 27.9 • Osprey Village in Port Hedland • Managed on behalf of state government 26.3 • Searipple Village in Karratha • Owned by FWD. Rate per person per day. 2017 2018 FY 2018 EBIT and ROC 42% 9.1 • Shutdown activity resulted in improved occu
Slide 21: Summary
Summary For personal use only • Sold two loss making businesses • Mining project awards in WA • New source of revenue in permanent modular schools • Two strategic acquisitions • Successful $60m capital raising 12
Slide 22: Outlook
Outlook For personal use only Modular Accommodation – Good fundamental demand drivers 170 new schools for NSW 4,000 prison cells for NSW and overcrowding in most other states 100 new schools for Vic Increasing number of small mining projects Project nature of work and six to nine month visibility =
Slide 23: Thank you
For personal use only Thank you 14