Shriro Holdings Ltd. · ASX:SHM
Shriro — FY2018 Earnings Presentation
19 slides from Shriro's earnings presentation, Feb 26, 2019
Slide 1: Shriro Holdings Limited (SHM) 2018 Year Results
For personal use only SHRIRO HOLDINGS LIMITED (SHM) 2018 YEAR RESULTS SPEAKERS CEO | Tim Hargreaves CFO | Shane Booth 26th February 2019
Slide 2: Headlines
For personal use only December 2018 Headlines • Consumer Product Revenue grew 1.8%. • Record watch sales in Australia. • Global expansion of ‘Everdure by Heston Blumenthal’ continues. • Strong operating cash flows of $8.8M, with NPAT of $7.7M in line with guidance. • Action taken to address profit d
Slide 3: Segment Revenue Split
SEGMENT REVENUE SPLIT Financial Year 2018 For personal use only Kitchen Appliances Consumer Products (~41% of CY18) (~59% of CY18) 3
Slide 4: Profit & Loss Statement
PROFIT & Full Year Ended 31 December 2018 LOSS STATEMENT For personal use only • Revenue decline of 3.8% in a difficult trading environment for appliances. $ Million CY18 CY17 ∆ Actual Actual • Margin contraction due to market pressures in Revenue from ordinary activities 181.1 188.3 (3.8%) the appl
Slide 5: Consumer Products
CONSUMER PRODUCTS For personal use only • BBQs international expansion continues, Full Year Ended 31 December 2018 meeting management's expectations. BBQ marketing/investment remains high as a $ Million CY18 CY17 ∆ percentage of current sales. Actual Actual • Consumer reaction to BBQ design and Reve
Slide 6: Auckland Airport
For personal use only Auckland Airport • G-Shock store Auckland international airport now operated by Shriro 1st Qtr CY19. • Global strength of G-Shock combined with international visitor growth to NZ expected to continue to grow sales. 6
Slide 7: Calculators
CALCULATORS For personal use only Australian Year 7 entrants Year Number 2018 298,495 2019 308,498 2020 314,530 2021 311,601 2022 314,502 2023 312,599 2024 314,533 CG50AU Model specifications designed to match Australian curriculum Modelled based on ABS statistics from FEB 2018 • Student numbers are
Slide 8: Kitchen Appliances
Full Year Ended 31 December 2018 KITCHEN APPLIANCES For personal use only $ Million CY18 CY17 ∆ Actual Actual Revenue from ordinary activities 74.3 83.4 (10.9%) EBITDA 0.4 8.5 (95.3%) EBITDA Margin 0.5% 10.2% • Blanco retail appliances showed growth and was positive for CY18. • Appliances sales in N
Slide 9: BBQ Sales
BBQ SALES For personal use only Full Year BBQ Net Sales 47.5% $ Growth CY16-CY18 9
Slide 10: Export Markets
EXPORT MARKETS For personal use only CURRENT FUTURE SUBSIDIARY • Subsidiaries - NZ - USA , newly established to focus sales expansion in the key BBQ market. • Product development and new product categories to be added to the geographical expansion. 10
Slide 11: Innovation Continues
INNOVATION CONTINUES HUB For personal use only 1st generation. HUB II 2nd generation. Innovation • Power control electronic rotisserie with touch control pole height adjustment ~ World First. *Shriro global patented utility technology 11
Slide 12: Accessories
ACCESSORIES For personal use only QUANTUM QUANTUM. Accessory range has been expanded Titanium Coated to complement BBQ sales and supplement sales during low season (winter) 12
Slide 13: Robinhood / Casio Pro Trek
Robinhood - New models - Black range For personal use only Casio Pro Trek WSDF20A Smart outdoor watch powered by Google Wear 13
Slide 14: Balance Sheet
BALANCE SHEET Full Year Ended 31 December 2018 CY18 CY17 CY18 CY17 $M $M $M $M For personal use only Current assets Current liabilities Cash and cash equivalents 1.4 3.5 Trade and other payables 17.1 23.2 Trade and other receivables 32.9 36.3 Borrowings 1.3 4.5 Inventories 38.9 42.1 Current tax liab
Slide 15: Cash Flows
CASH FLOWS For personal use only Full Year Ended 31 December 2018 CY18 CY17 $M $M Cash flows from operating activities 8.8 17.2 Net property, plant & equipment (2.3) (3.4) Dividends (10.5) (10.5) Net debt (increase) / decrease (4.0) 3.3 • Cash flows from operating activities sound: - Slow moving App
Slide 16: Track Record
TRACK RECORD Above mid point of CY18 market guidance For personal use only EBITDA RESULTS 5 YEARS NPAT RESULTS 5 YEARS $M $M 8.9 12.4 13.2 14.5 7.7 18.7 22.1 22.8 24.7 14.3 CY14* CY15* CY16 CY17 CY18 CY14* CY15* CY16 CY17 CY18 *Pro-forma numbers 16
Slide 17: Opportunities
For personal use only OPPORTUNITIES • Product development is continuous in a number of Shriro’s brands. • Shriro has developed a global distribution network to maximise new product development returns. This network will continue to grow. • US subsidiary established, Shriro will hold stock in the US
Slide 18: Dividends
For personal use only Dividends • Fully franked dividend of 3.0 cents per share, record date 19th March 2019, payable 5th April 2019. Shriro’s dividend policy is: A target payout ratio of between 60% to 70% of NPAT subject to: • Shriro’s earnings, overall financial condition and requirements • The o
Slide 19: Outlook
OUTLOOK For personal use only • Uncertainty in many macro market metrics continues and Shriro’s performance is biased to the second half due to seasonal influences. • Global expansion and investment in marketing to a large global BBQ market, with a long term view. • The cost base of the business has