OLDFIELDS HOLDINGS LIMITED — AGM Information 2015

Nov 22, 2015

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Annual General Meeting 23 November 2015 2015 Full Year Results

1

Board & Executives

• Lewis (William) Timms, Chairman

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• Steve Hooper, Non Executive Director

• Tony Grima, Managing Director & CEO

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• Greg Park, Company Secretary & CFO

Slide 2

Order of Business

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• Welcome and Introductions

• Chairman’s Address

• Chief Financial Officer’s Address

• Chief Executive’s Officer’s Address

• Items of Business

• Open Discussion

Slide 3

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CHAIRMAN’S ADDRESS Lewis Timms

Slide 4

2015 Financial Results

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2015 Financial Results
		2015 $k		2014 $k		Change %
Group Revenue (Net)		27,380		27,231		+0.6%
Net (Loss) Profit after Tax		(1,102)		(2,576)
Loss on Sale of Discontinued Operations		_		1,363
				R
(Loss) from Continuing Operations		(1,102)		(1,213)		+9.2%
Interest / Debt Revaluation Depreciation & Amortisation Income Tax Expense Foreign Exchange Gain		711 1,361 234 (39)		690 1,168 147 (15)
EBITDA		1,165		777		+49.9%

Slide 5

Performance Summary – FY15

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Revenue	EBITDA	Core Debt Borrowings excluding O/Draft & DSLN	Site Consolidation	Bank Covenants	Workforce Australian Staff
$27.4m FY14: $27.2m +0.6%	$1,165k FY14: $777k +49.9%	$3.5m FY14: $4.3m Repay $0.8m	6 sites FY14: 10 sites $0.2m Rent Reduction	All Quarters within Bank Requirements	85 FY14: 102 -16.7%

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COMPANY SECRETARY
& CFO
Greg Park
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7

FY15 EBITDA Movement Against Prior Year

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Net +$8k
Scaffold Consumer
$1,165k
+$135k
+$572k
$777k -$327k
Net Revenue Growth +0.6%
EBITDA Improvement +49.9%
Revenue Margin Incl. Other SG&A
FY14 Wage Base FY15
Contribution US$ Impact Reduction Savings
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Slide 8

1[st] vs 2[nd] Half Year Performance

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FY14 FY15
16,000 16,000
14,160
13,672 13,708
14,000 14,000
13,071
12,000 12,000
10,000 10,000
H2 Revenue Growth +$637k
8,000 8,000
EBITDA Improvement +$560k
6,000
6,000
4,000
4,000
2,000
846 2,000
-
69 674
491
- H1 H2 H1 H2 -
H1 H2 H1 H2
Revenue EBITDA
Revenue EBITDA
-2,000
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Slide 9

2[nd] Half Profit Analysis by Month

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FY14 FY15 3,000 3000 Revenue EBITDA Revenue EBITDA 2,500 2500 ----------------- 2,000 2000 ----------------- 1,500 1500 Significant Reduction in 1,000 1000 Break-Even Point 500 500 - 0 Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun -500 -500 FY14 H2 EBITDA ($69k) FY15 H2 EBITDA +$491k

Slide 10

Market Shift within Consumer Division

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FY12
FY13
34%
66%
FY14
40%
FY15
60%
47%
53%
Hardware
Chains
Specialists
50%
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Specialists
50%
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Continual Revenue Shift away from Higher Margin Specialty Retailers

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2015 Cash Generation & Application

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		2015 $k		2014 $k		Change $k
EBITDA		1,165		777		+388
Reduction in Inventories		824		(764)
				R
Net Cash Available		1,989		13		+1,976
Interest (excluding capitalised DSLN) Income Tax Paid Capital Expenditure Net Repayment of Borrowings		(378) (129) (451) (770)		(344) (163) (411) (274)
Net Movement		261		(1,179)		+1440

Slide 12

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CHIEF EXECUTIVE
OFFICER
Tony Grima
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13

Strategic Direction

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is ONE Company;
• Inspiring its people to deliver quality & innovative products
• Focused on being market leaders, providing solutions with leading brands
• Adding value to our shareholders, customers & our people
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Accountability – Customer Service – Innovation – Integrity – Passion – Safety & Sustainability
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Pillar 1 - Growth & Innovation

• Scaffold-Strong growth in domestic project home builder sector

• Scaffold-Expanded distribution in regional markets

• Scaffold-Expanded distribution into international markets

• Consumer-Strengthened leadership position with DIY players

• Consumer-Stronger focus on leading paint specialist groups

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Pillar 1 - Growth & Innovation

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• Consumer - Increased emphasis on category management expertise with leading players

• Re-focus on innovative products

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Pillar 2 - People & Culture

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• Further enhanced management team

• Increased industry expertise within scaffold division

• New highly energised sales team in consumer division

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• Performance based incentive program

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Pillar 3 – Operations & Supply Chain

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• Repositioned sites for growth

• Working capital improvements via a refreshed inventory management system

• Significant service level improvements

• Centralisation of purchasing function

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Slide 18

FY15 Summary

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• Positioning Oldfields for profit & growth

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• Reviewed strategic footprint & business model

• Upgraded talent & improved processes

• Looking forward to celebrating 100 Years!

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FY16 - CURRENT
YEAR
Tony Grima
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20

Challenges Ahead

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1. Increase in inventory to support growth

2. Changing hardware retail environment

3. Growth in direct sourcing by retailers

4. Competitors not taking US$ cost increases to market 5. Scaffold sales contracts to tender

5. Limited ability to invest in outdoor storage division

Slide 21

First Half Guidance

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• Improvement in revenue base

• Substantially reduced overheads whilst retaining core capabilities

• Continued debt reduction

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Key 1 [st] Half – FY16 1 [st] Half – FY15 Growth
Financials Guidance Actual
Revenue $15.0m - $15.5m $13.7m 10%+
EBITDA $1.0m - $1.1m $0.7m 40%+
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Slide 22

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ITEMS OF
BUSINESS
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23

Financial Statements & Reports

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To receive and consider the following reports in respect of the financial year of the company ended 30 June 2015;

– The Financial Report (which includes the Statement of Financial Position, Statement of Comprehensive Income, Cash Flow Statement and Director’s Declaration); and

– The Director’s Report and Auditor’s Report

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Resolution 1.

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Re-election of Stephen Charles Hooper as a Director

“That Stephen Hooper, who retires by rotation in accordance with the Company’s Constitution and being eligible offers himself for re-election as a Director, be re-elected as a Director”

rector”
Total Proxies received	55,428,848
Votes for	52,024,672
Votes against	3,404,176
Abstentions	NIL

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Resolution 2.

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Remuneration Report

“That the Remuneration Report be adopted”

Totalproxies received	15,990,621
Votes for	12,506,445
Votes against	3,484,176
Abstentions	3,699

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Other Business

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Disclaimer and Notes

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• The purpose of this presentation is to provide general information about Oldfields Holdings Limited (Company). It is not recommended that any person makes any investment decision in relation to the Company based solely on this presentation. This presentation does not contain all information which would be material to the making of a decision in relation to the Company. Any investor should make its own independent assessment and determination as to the Company’s prospects prior to making any investment decision, and should not rely on the information in this presentation for that purpose.

• This presentation does not involve or imply a recommendation or a statement of opinion in respect of whether to buy, sell or hold securities in the Company.

• This presentation contains certain statements which may constitute “forward-looking statements”. Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward-looking statements. No representation or warranty, express or implied, is made by the Company that the matters stated in this presentation will be achieved or prove to be correct.

• Except for statutory liability which cannot be excluded, the Company, its officers, employees and advisers expressly disclaim any responsibility for the accuracy or completeness of the material contained in this presentation and exclude all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission therefrom. The Company accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation or any other information made available to a person nor any obligation to furnish the person with any further information.

End Notes

Earnings Before Interest Tax Depreciation and Amortisation. The reference to EBITDA is unaudited and unreviewed however is based on amounts extracted from the audited financial statements and reconciles to the profile before and after income tax as reported in the Consolidated Statement of Profit or Loss and other Comprehensive Income contained within the Company’s Financial Report and Appendix 4E for FY15 as follows:

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