OLDFIELDS HOLDINGS LIMITED — AGM Information 2016

Nov 23, 2016

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OLDFIELDS HOLDINGS LIMITED ANNUAL GENERAL MEETING

24[TH] NOVEMBER 2016

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

• Non-Executive Director’s Address

• Chief Executive’s Officer’s Address

• Items of Business

• Open Discussion

Slide 3

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CHAIRMAN’S ADDRESS

CHAIRMAN’S LEWIS TIMMS

Slide 4

2016 Financial Results

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		2016 $k		2015 $k		Change %
Group Revenue (Net)		28,420		27,380		+3.8%
				R
Net (Loss) Profit after Tax		(722)		(1,102)		+34.4%
Interest & DSLN Debt Revaluation Depreciation & Amortisation Income Tax Expense Foreign Exchange Gain		634 1,434 352 (37)		711 1,361 234 (39)
EBITDA		1,661		1,165		+42.6%

Slide 5

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COMPANY SECRETARY & CFO GREG PARK & CFO

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Slide 6

FY16 EBITDA Movements Against Prior Year

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Net +$529k +$682k $1,661k Scaffold Consumer $1,165k +$888k Revenue Growth +3.8% Scaffold EBITDA Improvement +42.6% Consumer Net -$1,603k Other SG&A Revenue Margin Incl. Wage FY15 Contribution Mix & US$ Savings Savings FY16

Slide 7

Gross Revenue (Sales & Hire before trading term deductions)

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Sheds Average Decline –16% pa Paint Average Increase +2% pa Scaffold Average Increase +7% pa Net +$3.3m $29.8m +$1.8m $28.7m $28.7m $28.0m +$0.4m Consumer -$1.9m 3 Year FY13 FY14 FY15 FY16 Increase Sheds Paint Scaffold

Slide 8

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

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Revenue H1 vs H2

EBITDA H1 vs H2

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53%
1200
52%
52% 1072
52%
1000
51%
846
50%
50% 800
50%
674
H1 FY16 One Off Revenue +$850k +3%
49%
600
48% 589
48% H2 FY16 EBITDA Improvement 20% 48%
491
400
47%
200
46%
45%
0
FY14 FY15 FY16 -69
FY14 FY15 FY16
H1 H2 -200
$777k $1,1165 $1,661
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Slide 9

2016 Cash Generation & Application

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		2016 $k		2015 $k
EBITDA		1,661		1,165
Workingcapital &provision movements		924		819
Interest & Finance Costs Income Tax Paid		(255) (189)		(378) (129)
Cash Provided by Operating Activities		2,141		1,477
Investing Activities (Net Purchase/Sale PP&E) Financing Activities (Net Repayment of Debt)		(626) (1,080)		(214) (992)
Net Increase in Cash		435		271

Slide 10

Deferred Senior Loan Note (DSLN)

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• Instrument with Westpac created Dec. 2012

• Expires Dec 2022

• Group swapped $8.0m of Westpac debt for $2.4m DSLN

• Interest accrues at 12% pa (subject ** to average share price being greater than 10 cent in calendar 2017)

• DSLN is interest & debt instalment free till Dec 2022 **

• DSLN comes with restrictions to operations: – Reapply each year for bank facilities ie Core Debt & O/Draft – Annual negotiation of 12 months debt repayment plan – Limit set on fixed asset acquisitions

[Slide 11 ]

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SUPPLY & LOGISTICS REVIEW: STEVE HOOPER Non - Executive Director

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Slide 12

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• Reorganisation of the supply and buying functions

• Simplification Paint Applications supply – focus on strategic partnerships rather than opportunistic buying

• • Implementation of Supply and Operations Planning (S&OP) – Consumer Products & Scaffolding

• Focus on the Campbelltown Warehouse

• Quit WA warehousing for Paint Apps – supply direct from Campbelltown,

• Cleared out the “Junk”,

• Relay of mass storage and “Pick n Pack” areas,

• Integration of Revesby scaffolding operations and stock into Campbelltown,

• Transport operations put out to tender

• Simplification and efficiency resulting in significant cost savings and service achieved

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CHIEF EXECUTIVE OFFICER TONY GRIMA & CFO

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Slide 14

Performance Summary – FY16

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FY16 vs FY15

FY16 FY15 FY14

Net Revenue	Net (Loss) After Tax	EBITDA	SG&A Sales, General & Admin’ Exp’s	Core Debt Borrowings excluding DSLN
+3.8% $28.4m $27.4m $27.2m	+34.4% $(0.7)m $(1.1)m $(2.6)m	+42.6% $1,661k $1,165k $777k	Reduc’n 9.2% 27.8% 30.6% 34.2%	Repay $1.4m $2.1m $3.5m $4.6m

Slide 15

Strategic Direction

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• Continuing to build on our Brand foundations and Company values

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Accountability – Customer Service – Innovation – Integrity – Passion – Safety & Sustainability
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Slide 16

Pillar 1 - Growth & Innovation

• New user-friendly Website to be launched January 1[st] , 2017

• Focus on expanding scaffold distribution into local & international markets

• Incremental market share gains in Paint Accessories – aiming for a leadership position with DIY players

• Building a new product pipeline

• Packaging refresh project in Paint Accessories

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Pillar 2 - People & Culture

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• Enhanced experience in our management team

• Increased industry expertise within scaffold division

• New highly energised sales team in consumer division

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Slide 18

Pillar 3 – Operations and Processes

• Continued focus on inventory management and working capital improvements

• Focus on Lean and continual reduction in Cost of Goods Sold

• Improved processes for hire fleet repairs and maintenance

• Identification of key business processes that require enhancement

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Slide 19

FY16 Summary

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• Positioning Oldfields for growth and profit

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• Net Sales growth of 3.8%

• EBITDA growth of 42.6%

• Upgraded talent & improving processes

• Reduction of core debt to $2.1M

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• Celebrated 100 Years in business!

Slide 20

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FY17- CURRENT YEAR PROGRESS: TONY GRIMA

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Slide 21

Challenges Ahead

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1. Changing hardware retail environment

2. Masters closure

3. Mitre 10 and Home Timber & Hardware

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1. Direct sourcing by retailers continues to accelerate

2. Limited ability to invest in outdoor storage division

Slide 22

First Half Guidance

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• Changing hardware & outdoor storage landscape

• Reduction in costs / overheads whilst retaining core capabilities

• Continued debt reduction with focus on exiting DSLN

Key Financials	H1 FY17 Guidance	H1 FY16 Actual	Growth
Net Revenue	Circa $13,900k	$15,036k	-8%
EBITDA	Circa $1,100k	$1,072k	+3%
NPAT	Circa $240k	$36k

Slide 23

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ITEMS OF BUSINESS

Slide 24

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 2016;

– 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

Slide 25

Resolution 1.

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Re-election of William Lewis Timms as a Director “That William Lewis Timms, 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”

”
Totalproxies received	50,386,017
Shareholder exclusions	0
Votes received FOR(incl. Open to Chair)	50,358,825
Votes received AGAINST	3,500
Abstentions	368

Slide 26

Resolution 2.

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Remuneration Report

“That the Remuneration Report be adopted”

Totalproxies received	10,769,955
Shareholder exclusions	39,616,062
Votes received FOR(incl. Open to Chair)	10,716,263
Votes received AGAINST	30,000
Abstentions	368

Slide 27

Other Business

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Slide 28

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.

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