Fleetwood : Preliminary Final Report 2017

Fleetwood Corporation Limited ABN 69 009 205 261 Preliminary Final Report Year ended 30 June 2017 Results for Announcement to the Market

Change Amount

$'000

Revenue from ordinary activities Up 16% to 330,145

Profit from continuing operations after tax attributable to members

Up >100% to 9,432

Net profit attributable to members of Fleetwood Corporation Limited

Up >100% to 8,995

Dividends

Amount per

security Franked %

Final dividend 5 ¢ 100%

Interim dividend Nil ¢ N/A

5 ¢

Total dividend for period

Dividend Reinvestment Plan

The company's dividend reinvestment plan will be available for the final dividend. The plan offers a 2.5% reinvestment discount. The last date for receipt of an election notice for participation in the plan is 6 September 2017.

4 September 17

Ex-dividend date

5 September 17

Record date for determining entitlements to the final dividend

29 September 17

Date the final dividend is payable

For further information contact:

Andrew Wackett Chief Financial Officer 08 9323 3300

or Yanya O'Hara Company Secretary

Turnaround Progressing

Fleetwood's turnaround plan, initiated three years ago delivered early results in FY2017 with earnings before interest and tax increasing from a loss of $2.1m to a profit of $14.6m.

There were no impairment charges impacting underlying earnings in FY2017.

Result summary

$ million	2017	2016	Change
Revenue	330.1	284.5	16%
Underlying EBITDA	21.9	7.2	204%
Depreciation and Amortisation	7.3	9.3	(22)%
Underlying EBIT	14.6	(2.1)	n/a
Finance costs	0.9	1.0	(5%)
Pre-tax profit	13.7	(3.0)	n/a
Tax expense (benefit)	4.3	(0.4)	n/a
Underlying NPAT	9.4	(2.6)	n/a
Adjusting Items pre-tax	0.0	(10.3)	n/a
Tax on adjusting items	0.0	1.9	n/a
Net adjusting Items	0.0	(8.4)	n/a
Statutory NPAT	9.4	(11.0)	n/a

Notes: 1. Excludes the discontinued resource sector rental business. 2. 2016 revenue, EBITDA, EBIT and finance costs have been adjusted by

$2.8m reflecting a change in accounting treatment relating to village operations.

The divisional breakdown shown below demonstrates that strong earnings in Modular Accommodation and Village Operations were offset to a degree by continued underperformance in Recreational Vehicle Manufacturing.

All divisions saw an improved EBIT contribution during the year.

$ million	2017	2016	Change
Revenue
Recreational Vehicles	47.4	29.8	59%
Parts and Accessories	87.6	86.6	1%
Modular Accommodation	175.8	142.5	23%
Village Operations	26.3	30.2	-13%
Unallocated	0.3	0.1	n/a
Intersegment eliminations	(7.3)	(4.7)	56%
Total revenue	330.1	284.5	16%
Underlying EBIT
Recreational Vehicles	(6.7)	(8.1)	17%
Parts and Accessories	1.3	0.9	46%
Modular Accommodation	15.2	3.6	325%
Village Operations	6.9	5.2	34%
Unallocated	(2.1)	(3.6)	43%
Total underlying EBIT	14.6	(2.1)	n/a

Notes: 1. Excludes the discontinued resource sector rental business. 2. 2016 revenue and EBIT have been adjusted by $2.8m reflecting a change in accounting treatment relating to village operations.

Strong operating cash flows during the period were the result of strengthening demand for FIFO accommodation in Karratha, strong volume from affordable housing, continued growth in education markets and sound working capital management.

Despite a large volume of work remaining in progress at 30 June, the company has moved from net debt of $9.6m at 31 December 2016 to a net cash position at 30 June.

While the turnaround remains in progress the directors have resolved to pay a fully franked final dividend of 5 cents per share.

Significant changes have been made to Fleetwood's board, senior management team and business operations in the last two years. The operational changes have seen the company become net debt free, re-focus on growth markets and significantly reduce operating costs.

Both the board and management team remain focussed on continuing to deliver the turnaround plan in FY2018.

Growth Markets

As can be seen in the charts below revenue has moved away from resources and has been replaced by affordable housing, an important growth sector.

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

Education Recreation Resources Affordable Housing Other

2015 2016 2017