Slide 1: Financial Year 2022 Half-Year Results
FINANCIAL YEAR 2022 HALF-YEAR RESULTS JOYCE CORPORATION DELIVERS STRONG OPERATIONAL PERFORMANCE February 2022
Slide 2: Disclaimer
DISCLAIMER Information contained in this presentation may involve forward looking statements, and accuracy, completeness or correctness of data presented the information, opinions and comments about the future including possible future performance estimates, estimated conclusions contained in this p
Slide 3: Operating Results
OPERATING RESULTS FINANCIAL YEAR 2022 HALF-YEAR RESULTS -1HY 22-
Slide 4: Joyce Corporation: Continued revenue growth and solid returns
JOYCE CORPORATION Continued revenue growth and solid returns STRONG PERFORMANCE ACROSS THE GROUP Positive underlying retail demand delivers strong operational $61.5M $6.7M performance and revenue growth of 16.4% despite Revenue Group NPAT significant COVID disruptions $9.6M $17.2M Strong balance she
Slide 5: Results Overview: Increasing returns to shareholders
RESULTS OVERVIEW Increasing returns to shareholders Joyce Corporation 1HY 22 FY21 Total 1HY 21 7.5 cents fully franked Dividend (cents) 7.5 17.0 7.0 interim dividend NPAT to JYC Shareholders - continuing 3,734 7,574 4,000* (57% of normalised operations ($’000) NPAT) Dividends paid ($’000) 2,117 4,78
Slide 6: Results Overview: Key financial performance metrics
RESULTS OVERVIEW Key financial performance metrics STRONG OPERATIONAL PERFORMANCE ACROSS THE GROUP Ongoing trend of revenue growth driven by strong 1HY 22 1HY 21 Variance Variance Joyce Corporation Consolidated Results ($’000) ($’000) ($) (%) consumer demand and expansion of network Revenue 61,546 5
Slide 7: Results Overview: Key financial position metrics
RESULTS OVERVIEW Key financial position metrics Joyce Corporation Consolidated Results Dec 21 Jun 21 Dec 20 Strong Net Cash Position of $17.2m with significant borrowing Closing Group Cash 17,188 19,881 18,203 capacity and gearing potential Debt - - (5,521) Net Cash/(Debt) 17,188 19,881 12,682 Stron
Slide 8: Flow of Economic Interest into Joyce Corporation
JOYCE CORPORATION Flow of Economic Interest into Joyce Corporation 51% Majority Interest in Net Profit attributable to JYC KWB Shareholders 26 showrooms JOYCE CORPORATION (ASX: JYC) Net Cash $17.2M Franchise Fee Income at 31 Dec 2021 BEDSHED 34 Stores Franchise Operator Property Sale increases funds
Slide 9: KWB Group
KWB GROUP CONTINUED GROWTH IN AUSTRALIA’S HOME RENOVATION MARKET
Slide 10: KWB Group
KWB GROUP Kitchen Connection, Wallspan, Wardrobe Connection Leader in Australia’s home renovation market, focus on delivering outstanding kitchen and wardrobe solutions to customers looking to renovate their homes Target “Do It For Me” market by delivering positive, seamless and hassle-free renovati
Slide 11: KWB Group Snapshot
KWB GROUP SNAPSHOT Strengthening the brand and growing the footprint 26 showrooms across Queensland, South Australia and New South Wales Further Expansion into NSW in 1HY 22 and 2021 14 calendar year: - Artarmon May 2021 4 - Penrith - Belrose July 2021 October 2021 8 Strong trading and operational p
Slide 12: KWB Group Results: Revenue and Order Growth
KWB GROUP $60 Revenue Growth ($ million) $1.8 $51.1 $8.7 RESULTS $40 $40.7 Continued Revenue and $20 Order Growth $0 1HY 21 Revenue Revenue generated from like New showrooms opened during 1HY 22 Revenue Continued strong demand despite for like showrooms 2021* widespread lockdowns and Segment Revenue
Slide 13: KWB Group Results: Growth in Returns and Margins
KWB GROUP Segment EBIT $m (1HY 22 vs 1HY 21) Segment EBIT Margin % (1HY 22 vs 1HY 21*) RESULTS $9.1M $6.9M* 17.8% 17.0*% Continued Growth in Returns and Margins Revenue and EBIT 1HY 16-22 ($ million) $60 $10 Revenue EBIT Strong management and $50 $8 operational performance in face of $40 COVID inter
Slide 14: The KWB Business Model
KWB BUSINESS The KWB Business Model MODEL Targeting the middle market Close out Retail “Do It For Me” renovations Leader in Australia’s home renovation market Oversee to Design installation Deliver positive, seamless and hassle-free renovation and design experiences – from inspiration to installatio
Slide 15: Bedshed
BEDSHED DELIVERING ON GROWTH AMBITIONS
Slide 16: Bedshed: Franchised and company owned stores
BEDSHED Franchised and company owned stores Well established Australian household name, delivering high quality bedroom furnishings for over 40 Years Strong brand and loyal customer base 39-store network predominantly run and owned by franchisees including 4 company-owned stores plus Sydney E-Store
Slide 17: Bedshed: Growth in Franchisee Network
BEDSHED Growth in Franchisee Network 39 operations across WA, Queensland, Victoria, ACT and NSW 2 Successful e-store strategy with 2 new franchisee operations in NSW in 1HY 22: 12 9 - Tuggerah - Rutherford Oct 21 Dec 21 2 Alexandria franchisee operation scheduled 13 for opening Q4 Financial Year 202
Slide 18: Bedshed Results
Franchise Operation EBIT BEDSHED RESULTS 2,000 Franchisee Operations EBIT ($m) and EBIT Margin % (1HY 19-22) 65 EBIT Margin 60 Positive trading momentum 1,500 55 continues 50 EBIT ($’000) 45 Margin % 1,000 Consistent like for like store 40 performance across the Bedshed 35 500 30 network in face of
Slide 19: Bedshed: Successful Franchisee model
BEDSHED Successful Franchisee model Many franchise partners in network 20yrs+ (1 franchised store up for resale in 10 years Multiple franchise renewals in 1HY 22 demonstrate current strength of relationship and brand Supply Chain Focus on maintaining supply chain for franchisees and company stores a
Slide 20: Future Growth
PIJOYCE FUTURE GROWTH
Slide 21: Joyce Corporation: Vision, Purpose and Unique Value Propositions
JOYCE CORPORATION OUR VISION UNIQUE VALUE PROPOSITIONS We seek to make a meaningful positive difference to the lives of our Working together is key to success shareholders, partners, franchisees, • Fast growing ASX-listed company employees and customers Shareholders operating and invested in quality
Slide 22: Outlook for Organic Future Growth
OUTLOOK FOR ORGANIC FUTURE GROWTH KWB and Bedshed provide significant organic growth potential KWB Significant potential to expand footprint: • Near term Network Expansion in NSW • Longer term opportunities in untapped States, Victoria and WA Proven track record of growth in returns from operational
Slide 23: Outlook for Future Growth: Corporate strategy
OUTLOOK FOR FUTURE GROWTH Joyce Corporate Corporate strategy • Committed to delivering increased earnings while establishing a solid platform for future growth. • Immediate focus on potential organic growth opportunities across KWB and Bedshed • 51% Ownership in KWB a cornerstone asset • Apply a fil
Slide 24: Corporate Directory and Top Shareholders
CORPORATE DIRECTORY Top 20 JYC Shareholders – 21 February 2022 Rank Name Units % Units 1 ADAMIC PTY LTD 7,711,568 27.3 2 UFBA PTY LTD 1,800,000 6.4 3 DANIEL SMETANA <THE D A SMETANA FAMILY A/C> 1,224,651 4.4 BOARD OF DIRECTORS 4 ONE MANAGED INVT FUNDS LTD <1 A/C> 1,031,055 3.6 5 MR DONALD TEO 990,00
Slide 25: References
REFERENCES This Announcement should be read in conjunction with the following documents lodged with the ASX on 24 February 2022 under the ASX ticker JYC: • Half Year Report for the financial year ended 31 December 2021 • Appendix 4D • Dividend/Distribution • Financial Year 2022 Half Year Results 1 A