Breville Group Limited · ASX:BRG
Breville — Investor Presentation (February 2022)
38 slides from Breville's investor presentation, Feb 16, 2022
Slide 1: ASX announcement cover letter: Half Year Ended 31 December 2021
16 February 2022 ASX Market Announcements Office Australian Securities Exchange 20 Bridge Street Sydney NSW 2000 Breville Group Limited – Half Year Ended 31 December 2021 Investor Presentation Attached is a copy of the Breville Group Limited Investor Presentation for the Half Year Ended 31 December
Slide 2: Breville Group Limited Half Year Results FY22
Breville Group Limited (BRG) HALF YEAR RESULTS FY22 Investor Presentation 16 February 2022 @ Mince
Slide 3: Disclaimer
Disclaimer To the extent this Presentation contains any forward-looking statements, such statements are not guarantees of future performance and involve known and unknown risks and uncertainties and other factors, many of which are beyond the control of Breville, its Directors and management, and in
Slide 4: Group results summary 1H22
AUDm 1H22 1H212 % Chng • Revenue 878.7 711.0 23.6% EBITDA 125.5 107.6 16.6% • EBIT 112.5 91.7 22.8% EBIT margin (%) 12.8% 12.9% • NPAT 77.7 62.1 25.1% Basic EPS (cents) 55.8 45.1 23.7% • Dividend per share 15.0 13.0 15.4% (cents) • Franked (%) 100% 100% ROE1 (%) • 19.7% 19.7% Net cash / (debt) 31.7
Slide 5: Revenue, EBIT and EBIT margin by segment
REVENUE EBIT EBIT MARGIN (%) AUDm 1H22 1H21 % Chng 1H22 1H212 % Chng 1H22 1H21 Global Product 733.9 592.9 23.8% 96.2 76.3 26.1% 13.1% 12.9% % Change CC1 23.8% Distribution 144.7 118.1 22.6% 16.3 15.3 6.1% 11.2% 13.0% TOTAL 878.7 711.0 23.6% 112.5 91.7 22.8% 12.8% 12.9% • • • • • 4
Slide 6: Global Product segment revenue by region
GLOBAL PRODUCT SEGMENT REVENUE AUDm 1H19-1H22 1H22 1H21 % Chng $A % Chng CC* CAGR CC* Americas 370.1 314.9 17.5% 17.1% 20.0% EMEA 201.1 145.3 38.4% 39.4% 50.0% APAC 162.7 132.8 22.6% 22.0% 26.0% TOTAL 733.9 592.9 23.8% 23.8% 27.5% • • • 5
Slide 7: EBIT bridge 1H21 to 1H22
A$m (7.7) Gross Margin (0.9)% decrease (22.0) (22.0) 58.7 112.5 Increased (8.2) investment in Other overheads Marketing, R&D, 91.7 and Technology Net sales growth of 23.6% 12.9% 12.8% Margin Margin Funds generation +$51m Funds invested $(31)m 1H 21 EBIT Sales Growth GM% Mkt/ Other 1H 22 EBIT R&D/Tec
Slide 8: Balance sheet and shareholders' equity
AUDm 1H22 1H212 • Inventory 293.3 160.5 Receivables 375.4 270.7 Trade and other payables (335.1) (228.1) • Working Capital 333.6 203.1 Fixed assets 14.4 12.2 • Intangibles 241.8 218.0 Other (liabilities)/assets (net) (37.4) (48.1) • NET ASSETS EMPLOYED 552.4 385.2 Net (Cash) / debt (31.7) (90.6) • S
Slide 9: Key Points 1HFY22
Key Points 1HFY22 Throughout the 1H 22, we experienced strong consumer demand for our Global Products in all geographies. Business has more than doubled in 3 years Sell-in revenue was disrupted by logistical constraints, primarily in the USA, with unusually high goods in transit constraining growth
Slide 10: Digital Platforms
» - Digital Platforms * 2H Considerations and FY22 Outlook Breville | Sage
Slide 11: EBIT bridges FY20 to FY21 and 1HFY21 to 1HFY22
FY20 Sales GM% Mkt, R&D Other FY21 1HFY21 Sales GM% Mkt, R&D Other 1HFY22 EBIT1 Growth and Tech EBIT EBIT Growth and Tech EBIT 10
Slide 12: Digital Offense Acceleration
Digital Offense Acceleration ™ - Global Platform * Customer Experience Platform - Breville | Sage .com - Experience Hub - My Breville | Sage - Sage Studios * Solution Platforms - Connectivity Platform - Ecosystem Platform Breville | Sage
Slide 13: Scalable Global Platform
Scalable Global Platform Analytic / Visibility Layer Breville.com Beanz.com ; Sales & Customer Solution Operations Relationship Platform Planning Management eCommerce Search eCommerce Engine Middleware Golden US Canada Mexico UK Germany Template Supplier Product Data Master Master Master Lake Cetene
Slide 14: Define once, use everywhere
Define once, use everywhere Update once, update everywhere 13
Slide 15: Digital Offense Acceleration
Digital Offense Acceleration * Global Platform ™ - Customer Experience Platform - Breville | Sage .com - Experience Hub - My Breville | Sage - Sage Studios * Solution Platforms - Connectivity Platform - Ecosystem Platform Breville | Sage
Slide 16: Redesigning eCommerce Site
Redesigning eCommerce Site Master Every Moment Customer-centric navigation architecture that gets them to where they want to be, quickly.
Slide 17: Disparate Digital Assets
Disparate Digital Assets MICROSITES RECIPES SUPPORT & SERVICE Breville Sage ‘HOW TO’ PRODUCT INFORMATION Smart Onn Air Fryer SeSmart Oven Pizailo
Slide 18: Experience Hub
Experience Hub Food Prep Products Cooking Products Coffee Products Shop Discover Single, unified, structured framework for all Breville | Sage digital content
Slide 19: My Breville | Sage
My Breville | Sage Support My Products Warranty a \ / Breville &GQees Tutorials Account Details Master Classes My Breville —= My Orders My Orders Recipes My Subscriptions Instruction Guides Single access point giving each customer everything that is relevant to them, from their perspective
Slide 20: Sage Studios
Sage Studios Sage Studios bridges the Physical and the Digital, providing customers with live support and training, at scale.
Slide 21: Digital Offense Acceleration
Digital Offense Acceleration * Global Platform * Customer Experience Platform - Breville | Sage .com - Experience Hub - My Breville | Sage - Sage Studios * Solution Platforms » - Connectivity Platform - Ecosystem Platform Breville | Sage
Slide 22: Delivering Outcomes, not Products
Delivering Outcomes, not Products ‘Loas| ‘C 6} i y & 5) eee 6 |
Slide 23: Connectivity Platform is the Asset
Connectivity Platform is the Asset Device Content Security Management Management Over-The-Air Telemetry Update Voice Services Device-specific code ylomowmely uorjeorddy elnpow AyATOaUUOD Voice Framework While the oven runs on the platform, the platform is agnostic to the endpoint device
Slide 24: Digital Offense Acceleration
Digital Offense Acceleration * Global Platform * Customer Experience Platform - Breville | Sage .com - Experience Hub - My Breville | Sage - Sage Studios * Solution Platforms - Connectivity Platform »> - Ecosystem Platform Breville | Sage
Slide 25: Café Quality Defined
Café Quality Defined
Slide 26: Elements of Café Quality Coffee
4 Elements of Café Quality Coffee
Slide 27: Café Quality At Home
Café Quality At Home MONARCH Café Quality in the cup occurs at the intersection of Specialty Coffee Equipment and Specialty Coffee: Machine delivering the 4 elements, and premium grade specialty coffee.
Slide 28: Elements of Café Quality Coffee At Home
4 Elements of Café Quality Coffee At Home ‘ \ Training Coffee Machine (4 Se <—— Specialty Coffee
Slide 29: Specialty Coffee: Beanz.com
Specialty Coffee: Beanz.com ~~, Fresh beans from local roasters, delivered to your door. The Bean-efits a eee Q RA zi q .o==Oy) q -) BiE= wv) Keep it fresh Find your match Homegrown roasters Subscribe and save US rw Bes SUK 50 Best Roasters 21 Best Roasters 200+ Coffees PAA 60+ Coffees
Slide 30: Integrating Elements Into Seamless Solution Flow
Integrating 4 Elements Into Seamless Solution Flow A Gemttiee| = Breville x beanz Complete coffee bundles tailored to you Your perfect machine, essential accessories and beans selected to your taste am | 20% OFF The Perfect Fresh Roasted Barista Tool Kit Training and Machine for You Coffee Beans ‘Es
Slide 31: Ecosystem
Ecosystem Content Providers Platform is the Asset Roasters Warehouse API / Development Environment Content Operating . [ssa System Security API / Development Environment S B Breville | Master eanz Sage.com Class S Architecturally, the Ecosystem Platform resembles a Smart TV platform, matching a glob
Slide 32: Platform Offense Investment Summary
Platform Offense Investment Summary Continued rollout and hardening of the Global Platform. Australia is all that remains for existing countries. Ground up rebuild and redesign of website for consumer-centric engagement. Consolidated content in Experience Hub and created path for customers to quickl
Slide 33: 2H Considerations and FY22 Outlook
* Digital Platforms » * 2H Considerations and FY22 Outlook Breville | Sage
Slide 34: 2H22 Considerations
2H22 Considerations * Expect supply chain complexities and inflationary pressures to continue. Managing the former through forward planning and the latter by increasing prices where appropriate. * Consistent with prior years we will invest into R&D, GTM, and Technology in the 2H to re-platform the c
Slide 35: Inventory levels FY15 to FY23
400 350 300 250 200 150 100 50 0 FY15 1H16 FY16 1H17 FY17 1H18 FY18 1H19 FY19 1H20 FY20 1H21 FY21 1H22 FY22 1H23 FY23 1H24 • • 34
Slide 36: Inventory Commentary
Inventory Commentary ¢ BREVILLE IS NOT A RETAILER: INVENTORY IS GOOD - Inventory does not go stale: ~7-year average product life cycle - Price does not decline over time (we’re increasing price) - Carrying cost is negligible * Trying to ride above COVID equilibrium level by end of FY22 to insulate 1
Slide 37: FY22 Outlook
FY22 Outlook We expect EBIT for the full year of FY22 to be consistent with the markets’ current consensus forecast of ~$156m assuming: No significant change in economic conditions in the Group’s major trading markets; No material supply chain interruptions beyond what we experienced in the 1H FY22;
Slide 38: Breville Group Limited Half Year Results FY22
Breville Group Limited (BRG) HALF YEAR RESULTS FY22 Investor Presentation 16 February 2022 @ Mince Ay aN 3 A
Breville Group — Investor Presentation (February 2022) on 6ix