Slide 1: Simonds Group Half year results presentation
For personal use only Simonds Group Half year results presentation For the six months ended 31 December 2016 24 February 2017
Slide 2: For personal use only
For personal use only 01 Insert Highlights 1H17 divider title 3 2 02 A Insert dividerUpdate Operational title 7 4 03 Key Financials 11 04 FY17 Outlook 18
Slide 3: 1H17 Highlights
For personal use only 01 1H17 Highlights PAGE 2
Slide 4: Simonds Group key results
Simonds Group key results For personal use only FY17 has commenced in line with expectations Key Financial Overview Key Items Business reset and simplification is ongoing $285.9m Total revenue1 − Ongoing focus on Simonds Homes Australia (SHA) core product and locations − Streamlining of Builders A
Slide 5: Operational Update
For personal use only 02 Operational Update PAGE 4
Slide 6: The transformation journey so far
Operational update For personal use only The transformation journey so far Apr – Jun ‘16 Diagnosis of business Extensive review of finance and operations undertaken Jul – Dec ‘16 Changes to executive leadership Reset strategy announced Shift in focus from volume growth Jan – Feb ‘17 Disposal
Slide 7: Management team transformation
Management team transformation For personal use only Previous organisation structure was suboptimal Previous Structure: Leadership team headcount: 22 Multiple and complicated reporting lines across multiple General Managers which lead to: — Duplication of effort — Lack of clarity — Confusion acr
Slide 8: Management team transformation
Management team transformation For personal use only Current structure implemented to facilitate business efficiency and reduced overheads Current Structure: Leadership team headcount: 15 (30% reduction) Organisation structure simplified to facilitate: — Dedicated teams with dedicated purpose —
Slide 9: Realigned executive remuneration structure
Realigned executive remuneration structure For personal use only Increased focus on operational performance and profitable growth Long Term Incentive Plan (FY17) Short Term Incentive Plan (FY17) CEO Option Plan Gateway to participate - group EBITDA 100% based Compound Annual Growth Rate (CAGR) i
Slide 10: Simonds Homes building locations
Simonds Homes building locations For personal use only Focus is to build in targeted growth corridors to realise efficiencies Very high activity1 High activity1 Key locations include regional Medium towns with population >10,000 and activity1 proximity to major roads and infrastructure Low activit
Slide 11: Simonds Homes building locations
Simonds Homes building locations For personal use only Focus is to build in targeted growth corridors to realise efficiencies Queensland1 South Australia1 New South Wales1 Still emerging market for SHA Continue building brand Most immature market for SHA recognition Focus on building brand
Slide 12: Key Financials
For personal use only 03 Key Financials PAGE 11
Slide 13: Financial results summary
Financial results summary For personal use only 1H17 key financials in line with expectations Pro Forma1 Profit and Loss Key Items (Continuing Operations only) Group revenue declined 2.9% with lower site starts in 1H17 1H16 SHA and longer course duration in BAA Revenue 285.9 294.3 SHA productivi
Slide 14: Simonds Homes key results
Simonds Homes key results For personal use only Focus on business simplification and efficiency Key Financial Metrics1 1H17 Pro Forma EBITDA breakdown per house start ($’000s) $274.5m $3.5m Pro Forma2 revenue Pro Forma2 EBITDA 4.3 (5.9) Down 2.6% on prior period Down 39.6% on prior period (0.5) 5.0
Slide 15: Builders Academy Australia key results
Builders Academy Australia key results For personal use only Building a sustainable platform Key Financial Metrics 1H17 total course commencements $7.9m $1.5m Qualification Certificate IV in Building & Construction Physical Virtual 599 196 Total 795 Pro Forma1 revenue Pro Forma1 EBITDA (Building) Do
Slide 16: Land development key results
Land development key results For personal use only Developing a growth pipeline to complement Homes business Key Financial Metrics Project Status Overview Direct Holdings 1. Portland, Vic $3.5m $0.5m 30 lots with civil works completed in July 2016, sales and Pro Forma1 revenue Pro Forma1 EBITDA sett
Slide 17: Balance sheet
Balance sheet For personal use only Strengthening the Balance Sheet Balance Sheet ($m) 31 Dec ‘16 30 Jun ‘16 Key Items Assets Receivables significantly reduced as a result of Cash / Equivalents increased focus on collection of outstanding amounts 3.5 3.2 owing Receivables 23.4 43.6 Other assets
Slide 18: Cashflows
Cashflows For personal use only Improving cashflow a key focus Summary cash flows ($m) 1H17 1H16 Key Items Cash flows from operating activities Customer receipts have been impacted by the change from ‘Method 2’ invoicing to ‘Method 1’ invoicing. The Receipts from customers 311.4 318.4 effect of th
Slide 19: FY17 outlook
For personal use only 04 FY17 outlook PAGE 18
Slide 20: FY17 outlook and beyond
FY17 outlook and beyond For personal use only Resetting of the business to continue during FY17 Simonds Homes sales pipeline Focus remains on building a sustainable business through 2,616 transformation: 339 — Simplification of existing core product range 850 — Disciplined cost controls — Condense
Slide 21: Appendix: Statutory to Pro forma reconciliation
For personal use only APPENDIX Statutory to Pro forma reconciliation PAGE 20
Slide 22: Statutory to pro forma reconciliation
Statutory to pro forma reconciliation For personal use only 1H17 1H17 1H17 1H16 1H16 1H16 Statutory to pro forma reconciliation ($m) Revenue EBITDA NPAT Revenue EBITDA NPAT Statutory result from continuing operations 285.9 2.7 (0.7) 294.3 8.8 4.3 Impairment of non-core development land and - 0.8 0.6
Slide 23: Important notice and disclaimer
Important notice and 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
Slide 24: For more information contact us
For more information contact us at: Telephone: For personal use only +61 3 9682 0700 Mailing address: Locked Bag 4002 South Melbourne VIC 3205 01 Insert divider title 3 A InsertPhysical address: divider title 7 Level 1, 570 St Kilda Road Melbourne VIC 3004 www.simondsgroup.com.au Thank you