Yowie Group Ltd. · ASX:YOW
Yowie — H1 2018 Earnings Presentation
20 slides from Yowie's earnings presentation, Feb 21, 2018
Slide 1: 1H FY2018 Results Presentation
1H FY2018 Results Presentation February 21, 2018 Mark Schuessler, CEO 1 © Yowie
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Yowie Group Limited (ASX: YOW) (“Yowie” or the “Company”) in order to provide a high level overview of the Company. This presentation should not be considered as an offer or invitation to subscribe for or purchase any shares in Yowie or as an inducem
Slide 3: What is Yowie?
What is Yowie? Yowie Group Ltd is a global brand licensing company specialising in the development of consumer products designed to promote learning and increase both understanding and engaging with the natural world through the adventures and exploits of six endearing Yowie characters. vy >" om, :
Slide 4: Performance Overview, Financial Review, Outlook
• Performance Overview • Financial Review • Outlook 34
Slide 5: 2018 H1 Results: Context
2018 H1 Results: Context Since December the business has worked through a significant reset period Point of Departure Re-set the Organisation A Status • Broad vision but requiring more focused Ensure the right operational structure, execution executives and reporting is in place • Marketing spend ne
Slide 6: 2018 H1 Business Focus
2018 H1 Business Focus Under new governance and management, Yowie has been focused on rapidly broadening distribution while addressing cost areas to shift the business quickly to profitability. Business Focus 1 People & Refresh of leadership Leadership Re-focus the team 2 Financial Push to near-term
Slide 7: 2018 H1 Notable Achievements
2018 H1 Notable Achievements 2018 H1 saw strong progress on the expansion of distribution channels globally. The business successfully navigated significant but necessary governance and management changes. 2018 H1 Achievements 1 People & Appointment of Mark Schuessler as Global CEO Leadership Re-ali
Slide 8: Yowie: In Transition
Yowie: In Transition Yowie is in transition with strong progress in the expansion of distribution impacted by sales fluctuations in its largest customer Medium-term International (incl. Aust) Net Sales (US$m) trajectory Very early in Australia & International (incl. Aust) 15 Impact of International
Slide 9: One-Off Stock Adjustment Claim
One-Off Stock Adjustment Claim A one-off stock adjustment claim, recognised against revenue, has had a US$1.95m impact on 2018 H1 revenue / EBITDA Stock Adjustment Claim Significant Customer Relationship In late December 2017, a major customer This customer remains a cornerstone account lodged a cla
Slide 10: Building the Yowie Brand – Social Media
Building the Yowie Brand – Social Media We continue to strengthen and broaden recognition of the Yowie Brand via our social media strategy which to-date is proving impactful Results: Continued growth in brand Social Media Strategy presence Global and Local community reach with agency June 2017 Dec 2
Slide 11: Building the Yowie Brand – Publishing
Building the Yowie Brand – Publishing We have achieved a number of significant milestones in our longer-term publishing strategy with launches of the book and webisode series in H2 FY2018 Educational Marketing – Book Series Cartoon Webisode Series Launch of first series of Yowie books (“Ditty the Li
Slide 12: Re-cap & Focus: Next 6 Months
Re-cap & Focus: Next 6 Months With an aligned structure and a refocused organisation, the business is heavily focused on near- term operating execution and longer-term a clear strategy that leverages our brand strength Point of Departure Re-set the Organisation Go Forward: Execution A Status • Broad
Slide 13: Performance Overview, Financial Review, Outlook
• Performance Overview • Financial Review • Outlook 313
Slide 14: 2018 H1 Performance Highlights
2018 H1 Performance Highlights Underlying shows modest growth, stronger performance at Gross Margin but an increase in EBITDA loss, driven by a step-up in overhead and admin costs through the half FY18 H1 FY18 H1 US$ / YoY growth excl. Stock Adj. Claim Reported Comments New accounts in US/Australia
Slide 15: 2018 H1 Performance Highlights – Cash Flow
2018 H1 Performance Highlights The business continues to have a very strong balance sheet with US$22.7m net cash Cash Flow Waterfall (US$m) 40 35 5.2 9.9 30 0.2 0.6 2.3 26.9 4.8 25 0.1 22.7 0.1 0.2 0.7 0.0 20 Marketing Other FX Net Sales Raw materials/tolling Administration Income Taxes Purchase of
Slide 16: Performance Overview, Financial Review, Outlook
• Performance Overview • Financial Review • Outlook 316
Slide 17: Outlook: US growth
Outlook: US growth We are seeing continued strong momentum in distribution growth in the US Yowie’s US – Distribution Momentum and Penetration Opportunity Since refocusing the sales team in August 2017 we have seen significant momentum in broadening distribution, particularly in the convenience and
Slide 18: Outlook: ANZ growth
Outlook: ANZ growth Initial launch has been received well, with national chain ranging impact ahead of us Series 1 sell through has been very good in regional chains (Big W, K Mart, Target, Reject Shops), independents and convenience chains Series 2 Ranger Series being launched in time for Easter Wo
Slide 19: Outlook: FY18
Outlook: FY18 Yowie is at the beginning of a global market opportunity for a well-known and loved brand. Reset of Yowie was required – business now focused on execution and growth In the short-term, sales volatility driven in our major customer due to competitor activity will impact growth We are se
Slide 20: © Yowie
20 © Yowie