Fleetwood Limited · ASX:FWD
Fleetwood — FY2018 Earnings Presentation
22 slides from Fleetwood's earnings presentation, Aug 27, 2018
Slide 1: FY18 Full Year Results Investor Teleconference Recording
Company Announcements Office Australian Securities Exchange Exchange Plaza 2 The Esplanade Perth WA 6000 FY18 FULL YEAR RESULTS INVESTOR TELECONFERENCE RECORDING Fleetwood Corporation Limited ACN 009 205 261 (ASX: FWD) (Fleetwood) held an Investor Teleconference at 9:30am AWST, 11:30am AEST on Monda
Slide 2: 2018 Full Year Results
2018 Full Year Results Teleconference 27 August 2018 9:30am AWST, 11:30am AEST Conference ID 9282609 Dial-in 1800 123 296 1
Slide 3: Group Structure
Group Structure Modular Accommodation Parts & Accessories Village Operations 2
Slide 4: 2018 Achievements – Repositioned for growth
2018 Achievements – Repositioned for growth • 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 player in each of its key
Slide 5: Financial Performance: Summary
Financial Performance: Summary 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 operations and impairment.
Slide 6: Financial Performance: Segment Earnings
Financial Performance: Segment Earnings $ 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% Underlying EBIT Parts an
Slide 7: Financial Performance: Cashflow
Financial Performance: Cashflow $ million 2018 2017 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 (debt) 0.4 3.1 Closing
Slide 8: Modular Accommodation
Modular Accommodation 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 education demand shifte
Slide 9: Outlook by sector – Modular Accommodation
Outlook by sector– Modular Accommodation 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 Strong spend in NSW stat
Slide 10: Parts and Accessories
Parts and Accessories 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 sales largely offset by ma
Slide 11: Profit drivers – Parts and Accessories
Profit drivers – Parts and Accessories 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 continue. Further After
Slide 12: Village Operations
Village Operations 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 2017 2018 earnings EBIT
Slide 13: Profit drivers – Village Operations
Profit drivers – Village Operations 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 significant Construction work
Slide 14: Acquisition updates
Acquisition updates 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 key Western Sydney Ma
Slide 15: 2019 Priorities and Outlook
2019 Priorities and Outlook • 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 further diversificati
Slide 16: Appendix 1: Summary Profit and Loss
Appendix 1: Summary Profit and Loss $ 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 -20% Underlying NPAT 12
Slide 17: Appendix 2: Discontinued Operations Summary
Appendix 2: Discontinued Operations Summary $ 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) (20.9) 0.0 Pre tax re
Slide 18: Appendix 3: Summary Balance Sheet
Appendix 3: Summary Balance Sheet 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 Total 115.2 153.8 Non-c
Slide 19: Appendix 4: Permanent Modular Program Examples
Appendix 4: Permanent Modular Program Examples Yallourn Primary School, Victoria Elwood College Project, Victoria 18
Slide 20: Appendix 5: Corrections Examples
Appendix 5: Corrections Examples Prison Cells 19
Slide 21: Appendix 6: Hotel Example
Appendix 6: Hotel Example Rules Club Wagga Hotel, NSW 20
Slide 22: Thank you
tf aay fo fale AUSTRALIA Thank you