FLEETWOOD LIMITED — Call Transcript 2016

Aug 29, 2016

Teleconference 30 August 2016

12:00pm AWST, 2:00pm AEST Dial-in 1800 558 698, Conference ID 380 628

FY 2016 Full Year Results

Group Structure

Accommodation Division

Manufactured Accommodation

• Affordable Housing

• Education

• Commercial

Village Operations

• Searipple Village

• Osprey Village

Recreational Vehicles Division

Parts and Accessories

• Camec

• Flexiglass

• Bocar

Recreational Vehicle Manufacturing

• Coromal

• Windsor

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Segment Performance

Segment	EBIT as per Segment Note($m) Adjustments ($m) Underlying Trading EBIT($m)	EBIT as per Segment Note($m) Adjustments ($m) Underlying Trading EBIT($m)	EBIT as per Segment Note($m) Adjustments ($m) Underlying Trading EBIT($m)
	2016 2015 2016 2015 2016 2015
RV Manufacturing	(8.1) (7.6) - - (8.1) (7.6)
Parts & Accessories	0.9 0.6 - - 0.9 0.6
Manufactured Accommodation	3.6 (3.6) - - 3.6 (3.6)
Village Operations	7.9 18.4 - (9.4)1 7.9 9.0
Unallocated	(3.6) (2.2) - -		(3.6) (2.2)
EBIT	0.7 5.5		0.7 (3.9)
Reconciliation to statutory EBIT
Impairment related to continuing operations			(10.3) (3.2)
Adjustment relating to Osprey Village capital value			- 9.4
EBIT as reported in statutory P&L			(9.6) 2.3

Note 1 – included in the 2015 result was a one-off adjustment to the capital value of Osprey Village

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Financial Performance

Group Revenue ($m)*

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343.8
312.2
287.2
263.4
2013 2014 2015 2016
Net Cash (Debt) ($m)
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3.1
2013 2014 2015 2016
(32.0)
(56.0) (55.9)
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Underlying EBIT ($m)*

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11.1
2.4
0.7
2013 2014 2015 2016
-3.9
Capital Employed ($m)
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270.4 269.9
246.0
183.2
2013 2014 2015 2016
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*Group Revenue & Underlying EBIT excludes the impacts of the discontinued operation, impairment & one-off adjustment to capital value of Osprey Village

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Recreational Vehicle Manufacturing

Operations

• Large scale manufacturing facility in Perth

• Coromal and Windsor caravan brands

• Nation-wide dealer network

2016 Results

• Carry over of prior year order volume impacted results

• Management changes

• Refreshed product range, show results strong

• New dealerships in Melbourne and Sydney

Outlook

• Significantly increased order book

• Production being increased

RV Manufacturing Revenue ($m)

RV Manufacturing EBIT ($m)

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34.0
29.6
2015 2016 2015 2016
-7.6 -8.1
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Recreational Vehicle Manufacturing

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Pioneer
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Princeton

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Element
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Princeton
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Parts and Accessories

Operations

• Camec - Australian and overseas manufacture of parts for RV industry

• Flexiglass – Thai and Chinese manufacture for after market vehicle components

• Branch operations throughout Australia and NZ

2016 Results

• Overheads reduced

• Improved result at Camec

• Benefits of Flexiglass restructure seen, however impairment charge taken (excluded from chart)

Outlook

• RV industry growing

• Camec’s Australian manufacturing more competitive

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Parts & Accessories
EBIT ($m)
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Parts & Accesories
Revenue ($m)
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78.2 82.1 0.9
0.6
2015 2016 2015 2016
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• Full suite of products at Flexiglass

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Parts and Accessories

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Flexiglass Sport
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Camec Retail Store, Qld

Bocar Tray

Camec Warehouse, Dandenong South

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Manufactured Accommodation

Operations

• Manufacturing facilities in Vic, WA, QLD and NSW

• Education and Affordable Housing are key markets

2016 Results

• Strong education volume in Vic and QLD

• Strong volume from Gateway Lifestyle

• WA operation restructured

Outlook

• National Lifestyle Villages exclusive supply agreement

• Gateway expanding portfolio

Manufactured Accommodation Revenue ($m)

Manufactured Accommodation EBIT ($m)

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142.5
116.4
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3.6
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2015 2016 2015 2016
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-3.6

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Manufactured Accommodation

Gateway Lifestyle Village, Queensland

Korin Korin Child and Family Centre, City of Whittlesea, Victoria

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Manufactured Accommodation

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Homes under construction for National Lifestyle Villages, Western Australia
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Norfolk Village State School, Ormeau, Queensland

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Village Operations

Operations

• Searipple Village in Karratha

• Osprey Village in Port Hedland

2016 Results

• Osprey village sold to WA State Government

• Fleetwood retains Osprey management rights

• Rio Tinto preferred supplier agreement at Searipple

Outlook

• Blue chip clients

• Ongoing cash flow

Village Operations Revenue ($m)

Village Operations EBIT ($m)

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34.7
33.0
9.0
7.9
2015 2016 2015 2016
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Village Operations

Searipple Village, Karratha

Osprey Village, South Hedland, Western Australia

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Summary

A Company in Transition …

Accommodation Recreational Vehicles Division Division

• Board changes

• Refocussed on growth markets

• Underperforming operations restructured

• Debt free

• Large franking balance

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