Collins Foods Limited · ASX:CKF
Collins Foods — Brisbane Investor Forum (August 2022)
24 slides from Collins Foods's conference presentation, Aug 16, 2022
Slide 1: Brisbane investor forum
Collins For personal use only Foods Limited Brisbane investor forum 17 August 2022 ACN 151 420781 Authorised for Release by the Disclosure Committee
Slide 2: A company built around Vision, Mission & Values
A company built around Vision, Mission & Values… For personal use only 1
Slide 3: Operating world-class QSR brands built for growth & scale
… operating WORLD-CLASS QSR BRANDS BUILT FOR GROWTH & SCALE For personal use only KFC Australia KFC Europe Taco Bell Australia • Powerhouse core business unit, with • Emerging opportunity, with 62 • Newest growth channel, with 24 263 restaurants restaurants in the Netherlands and restaurants and cou
Slide 4: Collins Foods has delivered consistent solid growth over the past 5+ years
Collins Foods has delivered consistent solid growth over the past 5+ years… For personal use only CAGR 7.0% CAGR 11.0% 1,184.50 343 1065.9 313 301 981.7 284 271 901.2 RESTAURANT AUD$ MILLION 229 770.9 NUMBERS 633.6 FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22 Collins Foods owned resta
Slide 5: Generating strong operating cashflows and growing dividends
… generating strong operating cashflows and growing dividends… For personal use only • Operating cashflow up more than 60% over the last 5 years • Operating cashflow supports capital investment to grow restaurant base across Taco Bell and KFC Europe • Dividend payment up more than 59% over the last
Slide 6: A healthy balance sheet with funding capacity to support growth initiatives
… and a healthy balance sheet, with Funding capacity To support growth initiatives… For personal use only Net debt ($m)/ net leverage ratio* • Net leverage ratio* (pre AASB 16) of 1.17 ‒ significant headroom to covenant maximum of 2.75 • Net debt of $174.9m(1) $203.2 ‒ significant headroom to curren
Slide 7: Leading to a 70% share price increase over the past years
… leading to a 70% share price increase over the past 5 years For personal use only $10.25 $6.03 Source: ASX 6
Slide 8: Kentucky Fried Chicken Australia
For personal use only Kentucky Fried Chicken Australia
Slide 9: A brand that's loved and trusted with clear market growth potential
A brand that’s loved and trusted with CLEAR market growth potential For personal use only Yum! CFL 10 6 QLD 232 163 163 232 163 NSW 330 240 13 98 66 VIC 262 183 4 60 49 TAS 16 15 15 330 240 SA 60 49 9 WA 98 66 54 NT 10 6 5 20 48 9 ACT 20 9 - 262 183 1028 731 263 Source 16 15 McDonalds: https://www.s
Slide 10: Strong new store pipeline, bolstered by innovation
Strong new store pipeline, bolstered by innovation For personal use only • Development Agreement adds at least 55 new restaurants by 2028 • Free-standing drive thru remains our primary format, 9 to 12 plus innovation to future proof our business 11 10 • Solar panels now installed 9 in 103 locations,
Slide 11: Investment in digital and delivery underpins enhanced customer experience and growth
Investment in Digital and delivery underpins enhanced customer experience and growth... For personal use only ‘KFC Delivers' taking share 16.9% 16.3% 213 208 13.3% 12.5% 148 66 6 H1 FY21 H2 FY21 H1 FY22 H2 FY22 FY18 FY19 FY20 FY21 FY22 Sales % E-Commerce Stores with delivery Delivery penetration >80
Slide 12: Product innovation, brand strength and value positioning mitigating margin headwinds
… with product innovation, brand strength and “value” positioning mitigating margin headwinds For personal use only …coming soon 11
Slide 13: Kentucky Fried Chicken Europe
For personal use only Kentucky Fried Chicken Europe
Slide 14: Netherlands Corporate Franchise Agreement underpins Europe growth strategy
Netherlands Corporate Franchise Agreement underpins Europe growth strategy For personal use only • Commencement of Netherlands Corporate Franchise Agreement (CFA) on 31 December 2021 • CFA ensures Collins Foods has primary operational control over this market ‒ refined marketing strategy with a retu
Slide 15: Marketing strategy aims to maintain sales momentum while mitigating margin headwinds
Marketing strategy aims to maintain sales momentum while mitigating significant margin headwinds For personal use only • Renewed focus on Core and shift from "Disruptive Value" to “Everyday Value” supporting positive sales momentum in both Netherlands and Germany • Recent advertising campaigns have
Slide 16: Significant expansion opportunities in Europe despite current market dynamics
significant expansion opportunities in europe despite CURRENT market dynamics For personal use only • Collins Foods' footprint increased to 45 out of 82 total KFC restaurants in Netherlands (55% market share), following Netherlands restaurant count ‒ acquisition of 15 restaurants from 3 separate fra
Slide 17: Australia Taco Bell
For personal use only Australia Taco bell
Slide 18: Mexican is the fastest growing segment of Australian QSR
Mexican is the fastest growing segment of Australian qsr For personal use only 682 604 513 477 418 340 264 160 47 103 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Mexican QSR sales in Australia ($m)* * Source: Euromonitor / Bain & Co 17
Slide 19: Marketing efforts centred on establishing brand's taste and value credentials
Marketing efforts centred on establishing brand's taste and value credentials For personal use only • Focus on improving value and quality of offering is starting to generate positive results ‒ menu changes made to increase portion size and value perception ‒ leveraging KFC expertise to improve oper
Slide 20: Store rollout to accelerate in FY23
Store rollout to accelerate in FY23 For personal use only • Successful opening of 4 restaurants in FY22, all drive-thru, despite COVID-related building delays in Melbourne ‒ Midland, VIC opened on 29 September 2021 ‒ Eatons Hill, QLD opened on 2 November 2021 ‒ Berwick South, VIC opened on 12 April
Slide 21: Outlook
For personal use only OUTLOOK
Slide 22: FY23 & beyond: Collins Foods' recipe for long-term success
Fy23 & beyond: COLLINS FOODS’ recipe for LONG-TERM SUCCESS For personal use only Collins foods' strengths are well-suited to navigate a turbulent environment • A healthy balance sheet • World-class, scalable brands • Specialisation in the resilient, value-centric QSR sector • Operational excellence
Slide 23: Thank you. Questions?
For personal use only Thank you. Questions?
Slide 24: For further information please contact
For further information please contact CORPORATE Drew O’Malley For personal use only Managing Director & CEO P: +61-7 3352 0800 INVESTORS Ronn Bechler Automic Group P: +61-400 009 774 E: ronn.bechler@automicgroup.com.au MEDIA Tristan Everett Automic Group P: +61-403 789 096 E: tristan.everett@automi
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