Breville Group Limited · ASX:BRG
Breville — Shareholder Meeting (November 2009)
27 slides from Breville's shareholder meeting presentation, Nov 10, 2009
Slide 1: Breville Group Limited Annual General Meeting
For personal use only Breville Group Limited Annual General Meeting 10 November 2009 Sydney
Slide 2: Chairman's Address
For personal use only Chairman’s Address Mr John Schmoll
Slide 3: A Refocused and Strengthened Company
A Refocused and Strengthened Company For personal use only “A journey with a clear strategic focus on delivering a resilient growth asset” FY02-FY07: Investment in International platform FY02: Housewares International Limited (“HWI”) acquires Breville FY03: Breville brand launched in the USA &
Slide 4: A Refocused and Strengthened Company
A Refocused and Strengthened Company For personal use only “Difficult but necessary decisions have been made….emerging benefits becoming apparent” More profitable sales mix Improved return on capital Lower gearing Payment of dividends resumed All conducted in a challenging and volatile mac
Slide 5: A Refocused and Strengthened Company
A Refocused and Strengthened Company For personal use only FY10: Well placed to benefit from a recovery in key markets Clear and consistent strategy Strong financial foundation Experienced management team in place Trading ahead of expectations Encouraging positive momentum as evidenced by
Slide 6: A clear and consistent strategy
A clear and consistent strategy For personal use only • Focus on core electrical business • Quality brands • Quality and innovative products • Quality execution • Product and consumer focus is fundamental • Australian operations • Continue to grow market share profitably in a mature market • Interna
Slide 7: GUD Offer
GUD Offer For personal use only “Given Breville’s clear strategic value, it is not surprising there is again interest in acquiring the Company” Your Board has advised that you TAKE NO ACTION pending the Board’s recommendation Your Board has been carefully considering the Offer and has engaged an
Slide 8: CEO's Address
For personal use only CEO’s Address Mr Stephen Audsley
Slide 9: 2009 – A challenging year in the broader economy
2009 – A challenging year in the broader economy For personal use only Australia/NZ North America 20.0 110 400 70 Aust. Consumer Sentiment Index US Consumer Confidence Index Australian Retail Sales (A$bn) US Retail Sales (US$bn) 380 60 19.5 100 360 50 19.0 90 340 40 18.5 80 320 30 18.0 70 300 20 Jun
Slide 10: Financial Results Summary
Financial Results Summary For personal use only REPORTED UNDERLYING* A$ Million FY09 FY08 % Chng FY09 FY08 % Chng Group Sales Revenue 431.9 410.2 5.3 431.9 410.2 5.3 EBITDA 30.0 37.2 (19.4) 33.6 35.3 (4.9) EBIT 23.4 31.9 (26.5) 27.1 30.1 (10.0) PBT 15.6 26.5 (41.1) 21.5 24.1 (10.8) PAT 11.8 20.9 (43
Slide 11: Geographic Diversity
Geographic Diversity For personal use only Australia : Strength of brands and market position reinforced Encouraging increase in sales driven by Breville and Kambrook Enhanced market position and profitable growth in key category segments EBITDA growth underpinned by successful product launc
Slide 12: Australia
Australia For personal use only REPORTED UNDERLYING* A$ Million FY09 FY08 % Chng FY09 FY08 % Chng Sales 211.9 190.8 11.1 211.9 190.8 11.1 EBITDA 19.9 18.6 7.0 22.1 16.9 30.8 EBITDA % 9.4% 9.8% 10.4% 8.9% Strong growth in Sales and EBITDA Growth driven primarily by the launch and successful sell-
Slide 13: International
International For personal use only REPORTED UNDERLYING* A$ Million FY09 FY08 % Chng FY09 FY08 % Chng Sales 220.0 218.8 0.5 220.0 218.8 0.5 EBITDA 12.4 19.6 (36.7) 13.7 19.6 (30.1) EBITDA % 5.6% 9.0% 6.2% 9.0% Challenging and volatile market conditions - rising commodity/factory prices in 1H09 wit
Slide 14: Foreign exchange impacts
Foreign exchange impacts For personal use only The foreign exchange environment was volatile in FY09 1.00 Transactional exposure Purchases/sourcing in USD AUD depreciation vs the USD resulted in higher procurement 0.90 costs in Australia, NZ & Canada International operations (US denominated
Slide 15: Balance Sheet at June
Balance Sheet at 30 June For personal use only A$ Million FY09 FY08 Fixed assets 8.2 9.1 Intangibles 67.7 65.8 Other (liabilities)/assets (net) (6.2) 8.7 Working Capital 94.6 91.4 Inventory 68.2 80.8 Receivables 68.6 62.7 Trade and other payables (42.2) (52.1) NET ASSETS EMPLOYED 164.3 175.0 B
Slide 16: Strategy
Strategy For personal use only Continued strategic investment in product innovation and marketing to leverage leading product design and development capabilities Australia : steady growth in market share and profitability strong pipeline of new product launches enhanced brand strength and
Slide 17: Core focus on the "Food and Beverage" category
For personal use only Core focus on the “Food and Beverage” category Over 90% of the Breville brand’s revenue is derived from the Food and Beverage category The growth in this category in the LTM has been around 25% higher than the growth in the total small domestic appliance category* Renewed
Slide 18: Food Thinkers
U —unta For persona Food Thinkers: ‘A group of people that are passionate about leveraging the pleasure of food and the pped secrets of food preparation”
Slide 19: Simple moments of brilliance
. -Simple moments got brilliance: — ‘We believe in giving people that simple moment of ~ brilliance in the kitchen - where the little touches of Oingenuity can make any of us feel truly accomplished sand at ease with cooking” = Asi) FOr pers
Slide 20: Thought For Food
Thought For FoodTM For personal use only Breville well placed to benefit from improved trading conditions in core Australian and North American markets 20
Slide 21: Thought for food
Breville _=‘hought for food = ©) »A food focussed acampaign me jwhere SCCING tgs fl ais believing. ~<Si © LL
Slide 22: Thought for food: On Television
Thought for food s5On Television en Starting Spring 2009 Ores running ads @) for our most popular (espresso machine and —jthe No.1* toaster in _——the market. Ads for @Uthe Fresca Espresso © Machine™ and © Professional 4 Slice (/) Toaster will feature in = ; @)top-tating shows on Channel 9, Channel 7
Slide 23: Thought for food: Video Demonstrations
Thought for food s Video Demonstrations (€ Nine 30-second 7. oS ” - © videos demonstrate ny 7 , hy \ @ Breville’s ‘thought Be for food’ in action, (Gp) , See coffee bean meet See lamb meet See butter meet focussing on key BES860 Fresca BSC560 ikon™ Slow Cooker BEMS800 Wizz™ = Espresso Machine™ with
Slide 24: Thought for food: Online
Thought for food a ey laste ~cOm-:au Dy The nine ‘thought for food’ Expanding multiple video banner a first for Taste.com.au video demonstrations seen above will run extensively online through our ea de wwe © Café quality coffee starts here sponsorship of News Limited’s Taste.com.au website — a waa
Slide 25: Thought for food: In Magazines
Thought for food In Magazines Ads for our key on h products appear ina range of top-circulating SS ice 7 home and lifestyle a Y) titles, including Good =) Weekend, Australian ~—3 Women’s Weekly, . : : Sydney Magazine, & 5 a Better Homes & = ( Gardens, Sunday Life = Gp) : mae sand Australian Good ee
Slide 26: Thought for food: On mobile
Thought for food Soa <® on mobile = , ©) Instore materials, continue the ‘Thought for food’ theme and Cp) = aives consumers the opportunity to watch —) @@Product demos at = 1 aa Ikon 600 era of purchase on Blender ©theiz mobiles, simply ~pby sending a text and receiving Instore material continues th
Slide 27: Trading update
Trading update For personal use only Breville is well placed to benefit from improved trading conditions in core Australian and North American markets FY10 trading to date pleasing with encouraging pre-Christmas sell-in Benefits of recent cost reductions beginning to flow through On target f