Slide 1: 2018 Full Year Results
For personal use only 2018 Full Year Results Teleconference 27 August 2018 9:30am AWST, 11:30am AEST Conference ID 9282609 Dial-in 1800 123 296 1
Slide 2: Group Structure
Group Structure For personal use only Modular Accommodation Parts & Accessories Village Operations 2
Slide 3: 2018 Achievements – Repositioned for growth
2018 Achievements – Repositioned for growth For personal use only • Creation of a national Modular Accommodation business. West coast operations returned to profit • NSW based modular accommodation business MBS acquired • Fleetwood now the largest modular building business nationally and a major pla
Slide 4: Financial Performance: Summary
Financial Performance: Summary 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 (%) 14% 13.4 12% 11% 0.4 0.6 2017 2018 Proforma 2017 2018 Proforma Note: The above charts exclude the impacts of the discontinued oper
Slide 5: Financial Performance: Segment Earnings
Financial Performance: Segment Earnings For personal use only $ million 2018 2017 Change Revenue Parts and Accessories 66.6 67.2 -1% Modular Accommodation 179.3 175.8 2% Village Operations 27.9 26.3 6% Unallocated 0.2 0.3 -36% Intersegment eliminations (7.0) (7.3) n/a Total revenue 267.0 262.4 2% Un
Slide 6: Financial Performance: Cashflow
Financial Performance: Cashflow For personal use only $ million 2017 2018 EBITDA 25.2 29.0 Interest paid (net) (1.1) (0.9) Tax 1.0 (0.1) Working capital (and other) (7.2) (22.2) Operating cashflow 17.9 5.9 Net capex (14.6) (8.6) Free cashflow 3.3 (2.7) Financing cashflows (3.1) 0.0 Opening net cash
Slide 7: Modular Accommodation
Modular Accommodation For personal use only Revenue Operations 228.9 • Manufacturing facilities in Victoria, WA, QLD and NSW • Education and Affordable Retirement markets focus 175.8 179.3 • Resource volume recovering • MBS acquisition post year end. Entry to corrections market FY 2018 • Victorian e
Slide 8: Outlook by sector – Modular Accommodation
Outlook by sector– Modular Accommodation For personal use only Sector 2018 2019 Medium term Increased spend Builds for rental Population growth to Education announced by Victorian impacted Q4 drive enrolments and NSW Governments Spending levels Overcrowding in most maintained, however Corrections St
Slide 9: Parts and Accessories
Parts and Accessories For personal use only Operations • Australian and overseas manufacture of RV parts Revenue and accessories (Camec) • Sale of Flexiglass in February 2018 82.3 • Acquisition of NRV (plumbing and electrical services) 67.2 66.6 post year end FY 2018 • Decline in retail caravan sale
Slide 10: Profit drivers – Parts and Accessories
Profit drivers – Parts and Accessories For personal use only Driver 2018 2019 Medium term NRV acquisition to Local caravan 2018 trend likely to benefit from this trend Imported caravans production fell continue as it certifies imported caravans 2018 trend likely to Overall caravan Steady growth in c
Slide 11: Village Operations
Village Operations For personal use only Operations Revenue • Rio Tinto preferred supplier agreement at Searipple 27.9 • Osprey village underpinned by agreement with WA State Government 26.3 FY 2018 • Occupancy increase driven by shutdowns • Cost reductions and variablisation resulted in improved 20
Slide 12: Profit drivers – Village Operations
Profit drivers – Village Operations For personal use only Driver 2018 2019 Medium term Steady in the absence Operational workforce Steady Steady of major new capex Increased demand from Forward bookings have Trend likely to continue Shutdowns this sector increased due to age of plants Likely signifi
Slide 13: Acquisition updates
Acquisition updates For personal use only Fleetwood has acquired two businesses: • Sydney-based Modular Building Systems (MBS) for $34.2m. • Melbourne-based Northern RV (NRV) for $10.0m. Compelling Strategic Rationale: • MBS gives the Modular Accommodation business a large and modern facility in the
Slide 14: 2019 Priorities and Outlook
2019 Priorities and Outlook For personal use only • Integrate MBS and target further detention and education work • Integrate NRV acquisition into the Parts and Accessories division • Complete the exit from the Recreational Vehicles business • Continue to improve cash generation and returns • Pursue
Slide 15: Appendix 1: Summary Profit and Loss
Appendix 1: Summary Profit and Loss For personal use only $ million 2018 2017 Change Revenue 267.0 262.4 2% Underlying EBITDA 25.2 29.0 -13% Depreciation and Amortisation 6.3 6.3 0% Underlying EBIT 18.8 22.7 -17% Finance costs 1.2 0.8 56% Pre-tax profit 17.6 21.9 -20% Tax expense (benefit) 5.4 6.7 -
Slide 16: Appendix 2: Discontinued Operations Summary
Appendix 2: Discontinued Operations Summary For personal use only $ million Flexiglass Resource Rental Rec Vehicles Total 2018 2017 2018 2017 2018 2017 2018 2017 Revenue 12.0 20.4 7.3 6.5 34.1 47.4 53.4 74.3 EBIT (1.4) (1.3) (0.5) (0.6) (12.1) (6.8) (14.0) (8.8) Impairment (4.7) 0.0 (0.9) 0.0 (15.2)
Slide 17: Appendix 3: Summary Balance Sheet
Appendix 3: Summary Balance Sheet For personal use only 2018 2017 2018 2017 Current assets Current liabilities Cash 6.6 5.4 Payables 43.4 58.8 Receivables 39.3 65.0 Interest bearing 2.0 5.0 Inventories 60.0 63.2 Provisions 10.0 5.8 Held for sale 9.2 20.2 Other 0.0 0.4 Other 0.1 0.0 Total 55.4 70.0 T
Slide 18: Appendix 4: Permanent Modular Program Examples
Appendix 4: Permanent Modular Program Examples For personal use only Yallourn Primary School, Victoria Elwood College Project, Victoria 18
Slide 19: Appendix 5: Corrections Examples
Appendix 5: Corrections Examples For personal use only Prison Cells 19
Slide 20: Appendix 6: Hotel Example
Appendix 6: Hotel Example For personal use only Rules Club Wagga Hotel, NSW 20
Slide 21: Thank you
For personal use only Thank you 21