Breville Group Limited · ASX:BRG
Breville — Macquarie Investor Conference 2024
24 slides from Breville's conference presentation, May 6, 2024
Slide 1: Macquarie Investor Conference 2024 - Presentation (ASX announcement)
6 May 2024 For personal use only ASX Market Announcements Office, Australian Securities Exchange, 20 Bridge Street, Sydney NSW 2000 MACQUARIE INVESTOR CONFERENCE 2024 - PRESENTATION Attached is a copy of the Breville Group Limited’s presentation at the Macquarie Investor Conference 2024, to be held
Slide 2: Macquarie Investor Conference 7th May 2024
For personal use only Macquarie Investor Conference 7th May 2024
Slide 3: Disclaimer
Disclaimer To the extent this Presentation contains any forward-looking statements, such statements are not For personal use only guarantees of future performance and involve known and unknown risks and uncertainties and other factors, many of which are beyond the control of BRG, its Directors and m
Slide 4: Acknowledgement of Country
For personal use only Acknowledgement of Country We would like to acknowledge the traditional custodians on whose land we meet today. We would like to pay respect to their Elders: past and present; and further extend that respect to all Aboriginal and Torres Straight Islanders present here today. We
Slide 5: Investor Focused Presentation
For personal use only Investor Focused Presentation Presentation is intentionally tuned to what I believe a long-term investor should consider when contemplating going in or out of BRG. 4
Slide 6: Agenda: Forest for the Trees, Before and After, Guidance
• The “Forest for the Trees” Problem For personal use only • The “Before” and “After” Assessment as an FY30 predictor ‒ Addressable Market ‒ NPD ‒ GTM ‒ Platform • Reconfirming guidance 5
Slide 7: It's Sure Been Exciting
For personal use only It’s Sure Been Exciting FY18 FY19 FY20 FY21 FY22 FY23 FY24 • Trump tariffs: 15%, 25% • Brexit • Physical store closure • Supply chain breaking, LA • Demand deceleration • Continued demand • COVID begins – hard • Runaway demand, port, freight cost blowout • EU retailers go off t
Slide 8: Where's the R2? Which Event Drove the Outcome?
Where’s the R2? Which Event Drove the Outcome? A$ Millions 1,000 Net Sales Gross Profit EBIT 900 Revenue CAGR 15.5% For personal use only 800 700 600 500 400 300 Gross Profit CAGR 16.0% 200 100 EBIT CAGR 15.4% 0 1H18 1H19 1H20 1H21 1H22 1H23 1H24 FY18 FY19 FY20 FY21 FY22 FY23 FY24 • Trump tariffs: 1
Slide 9: What Were the Growth Drivers?
What Were the Growth Drivers? 1H21 Slide For personal use only • Sales and Operations Planning Tactical Operations Platform • Real-time order management • Real-time credit management • Geographic Expansion • New Product Development Strategic Acceleration Platform • Go-To-Market • Corporate Platform
Slide 10: The So What …
The So What … • Absent a structural change in the vertical, no macro event that occurred in the FY18 to FY24 period will have a For personal use only measurable impact on FY30 results. It’s noise. • However, how a company navigated through the minefield of FY18 – FY24 could have an impact on FY25-FY
Slide 11: Agenda: Forest for the Trees, Before and After, Guidance
• The “Forest for the Trees” Problem For personal use only • The “Before” and “After” Assessment as an FY30 predictor ‒ Addressable Market ‒ NPD ‒ GTM ‒ Platform • Reconfirming guidance 10
Slide 12: Materially Expanded The Addressable Market
Materially Expanded The Addressable Market FY17 FY19 FY24 Run Rate Direct Markets Australia Germany (‘18) Spain (‘20) For personal use only New Zealand Austria (‘18) France (‘20) 22 Countries United States BeNeLux (‘19) Mexico (‘21) Canada Switzerland Italy (‘21) United (‘19) Portugal (‘21) Kingdom
Slide 13: Materially Grew Product Portfolio
Materially Grew Product Portfolio New Products Released FY19 – FY24 For personal use only Barista Express Barista Touch the Joule® Air Fryer The Smart OvenTM Smart Oven® Paradice 16 Sous Chef® 16 InFizzTM Fusion ImpressTM ImpressTM Pro Air Fryer Pizzaiolo The Comb -WaveTM The Smooth The Compact Para
Slide 14: Extended Portfolio and Added Capability
For personal use only Extended Portfolio and Added Capability 13
Slide 15: GTM – Launch v2.0 vs. v1.0
14 For personal use only Wk1 Wk2 Wk3 Wk4 Wk5 Wk6 Wk7 Wk8 Wk9 Wk10 Wk11 Wk12 Wk13 Wk14 Wk15 Wk16 Wk17 Wk18 Wk19 Wk20 Wk21 Wk22 Wk23 Wk24 Wk25 Wk26 Wk27 Wk28 Barista Pro Wk29 Wk30 Wk31 Wk32 Wk33 Wk34 Wk35 Wk36 Wk37 Barista Impress Wk38 Wk39 Wk40 Wk41 Wk42 Wk43 Wk44 Wk45 Wk46 GTM – Launch v2.0 vs. v1.0
Slide 16: Forward Integrating to Customer Outcomes
Forward Integrating to Customer Outcomes: Delivering A True Café Quality Flat White Made By You in Your House For personal use only Barista Training 15
Slide 17: Introducing Breville+
Introducing Breville+ Ltow Breville he ps home cooks Dalance automation and aulonomvy in the ki ing the ir
Slide 18: Replatformed Company
Replatformed Company FY19 FY24 For personal use only Business Intelligence US website CA website UK website Websites Beanz.com Breville+ B2B Portal US ERP CA ERP UK ERP Web components & Services AU website NZ website DE website Middleware ERP AU ERP NZ ERP DE ERP PIM CMS Data Lake • Single metadata
Slide 19: Team / Business Processes Reflection
Team / Business Processes Reflection A$ Millions 1,000 Net Sales Gross Profit Revenue CAGR 900 15.5% 800 For personal use only 700 600 500 400 Gross Profit 300 CAGR 16.0% 200 EBIT CAGR 100 15.4% 0 1H18 1H19 1H20 1H21 1H22 1H23 1H24 Despite unprecedented uncertainty and volatility, the BRG team navig
Slide 20: Summary Slide
Summary Slide FY17/19 FY24 • Direct in English- • Legacy, localised • Expanded addressable • Single, global platform speaking countries technology platform market 50%+ • Best-in-class • FY19 A$760M Net For personal use only product company Sales • Solutions Company, leading • Expanded capabilities/
Slide 21: BRG's FY25-FY30 Plan: More of the Same
BRG’s FY25-FY30 Plan More of the Same 1. Invest more into Marketing, R&D, and Tech For personal use only Services 2. Convert more countries to a direct go-to- market for Breville, Baratza, and Lelit 3. Continue to develop and improve solution offerings for coffee and cooking/food prep For FY25-FY30
Slide 22: Agenda: Forest for the Trees, Before and After, Guidance
• The “Forest for the Trees” Problem For personal use only • The “Before” and “After” Assessment as an FY30 predictor ‒ Addressable Market ‒ NPD ‒ GTM ‒ Platform • Reconfirming guidance 21
Slide 23: FY24 Outlook: Maintaining Guidance
FY24 Outlook: Maintaining Guidance We reiterate and maintain our previous guidance for the fiscal year. We expect EBIT growth for the full year to be between 5.0% - 7.5% For personal use only assuming: • No significant change in economic conditions in the Group’s major trading markets; • No material
Slide 24: Macquarie Investor Conference 7th May 2024
For personal use only Macquarie Investor Conference 7th May 2024