Beacon Lighting Group Ltd · ASX:BLX
Beacon Lighting — Investor Presentation (November 2014)
20 slides from Beacon Lighting's investor presentation, Nov 21, 2014
Slide 1: LFRA Presentation November 2014
For personal use only LFRA PRESENTATION November 2014
Slide 2: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER For personal use only The Presentation contains “forward-looking statements”. All statements other than those of historical facts included in the Presentation are forward-looking statements. Where the Company expresses or implies an expectation or belief as to future ev
Slide 3: Introduction
INTRODUCTION For personal use only • Succesful listing on ASX on April 15 2014. • Beacon Lighting Group is the leading specialist lighting retailer in Australia. • From a single store in Melbourne in 1967, Beacon Lighting has grown to now operate 88 stores nationally with scope for significant addit
Slide 4: The History of Beacon Lighting
THE HISTORY OF BEACON LIGHTING For personal use only The first Beacon A new large Trade Club VIP Program Lighting store opens store format launched launched In Prahran layout is introduced Ian Robinson Beacon Lighting purchases the becomes single store a major national operation retailer shop bright
Slide 5: Beacon Lighting Investment Highlights
BEACON LIGHTING INVESTMENT HIGHLIGHTS For personal use only 1 A long and proud history of growing revenue and profit since formation in 1967 2 A strong financial position with no material debt and solid cashflow 3 Dominant specialist lighting retailer with 92 locations around Australia 4 A proven re
Slide 6: Group Overview
GROUP OVERVIEW For personal use only Beacon Lighting Company Franchise Beacon Lighting Beacon Beacon Retail Stores Retail Stores Commercial International Solar COMMERCIAL INTERNATIONAL L I G H T & FA N S O U R C I N G 75 Stores 13 Stores 4 Sales Offices Emerging Business (HK) Emerging Business 6
Slide 7: Speciality Retail Lighting Stores
SPECIALITY RETAIL LIGHTING STORES For personal use only NUMBER OF STORES & SALES OFFICES 92 4 Commercial Sales Offices 13 Franchised Beacon Lighting Retail Stores 75 Company Owned Beacon Lighting Retail Stores 5 5 5 4 4 4 4 3 3 3 3 3 Andrews Light Up De Lights Lights For You The Light Factory Beacon
Slide 8: Beacon Lighting Store Numbers
BEACON LIGHTING STORE NUMBERS For personal use only 100 88 90 80 70 60 50 40 30 20 10 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 CURRENT NOTE: Includes franchise stores but does not include 4 commercial sales offices. 8
Slide 9: Beacon Lighting Sales $ Millions
BEACON LIGHTING SALES $ MILLIONS For personal use only 180 160 140 120 100 80 60 40 20 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 1. Sales are normalised and shown for continuing businesses only. 2. Sales include company stores, wholesale sales to franchise stores,
Slide 10: Product Range
PRODUCT RANGE For personal use only Pendants Table Lamps Floor Lamps Ceiling Fans Chandeliers Exteriors Globes Downlights Wall Lights Spotlights Bathroom Batten Fix Flush Mounts Accessories Solar Panels 10
Slide 11: Key Industry Drivers
KEY INDUSTRY DRIVERS For personal use only • Housing activity - Decorating and Renovating - New home starts - Auction clearance rates • Technological advancement - Energy efficiency - LED lighting - Increasingly technical product “Smart Lighting” • Regulation - Phase out of incandescent lighting - I
Slide 12: Group Performance
GROUP PERFORMANCE For personal use only • Growth has been delivered by the strategy of continued store rollout and increased self supply. • Continued comparative and total store sales growth. • Continued growth in trade sales. • The business continues to make significant investment in product develo
Slide 13: Considerations of Why to Go to an IPO
CONSIDERATIONS OF WHY TO GO TO AN IPO For personal use only Majority shareholder wishes to protect the investment for the future. Improve the governance of the business, to protect the investment. Establish appropriate Boards. Board of Directors to play a more formal role. Audit Committee Remunerati
Slide 14: A Change in Leadership Is Required
A CHANGE IN LEADERSHIP IS REQUIRED For personal use only • New CEO appointed. • Other senior positions need to be secured for the future. 14
Slide 15: Reasons for IPO
REASONS FOR IPO For personal use only • 45% shareholder partner was interested in an exit. - A relatively small investment has appreciated substantially. - Time to capitalize on the increased value. • The company is now of a size that requires more formal processes. 15
Slide 16: The Process
THE PROCESS For personal use only Establish a Due Diligence Committee • Corporate advisor • Non-Executive Directors • Investigating accountants • ASX Legal advisory firm 16
Slide 17: Preparations
PREPARATIONS For personal use only • Financial performance needs to be adequate to cover the costs approx. 5% of funds raised. • All Boards need to be established minimum 6 months preferably 18 months prior. • Produce a Prospectus. 17
Slide 18: Basis of IPO Valuation
BASIS OF IPO VALUATION For personal use only • Value of the business is calculated on Net Profit after Tax, by a multiplier. • Reasonable value for new retail companies is 10 to 13 times NPAT. • Established retail businesses can perform at significantly higher multiples. 18
Slide 19: Reason for Exceeding Expectations
REASON FOR EXCEEDING EXPECTATIONS For personal use only • IPO offer price 66 cents, opens and holds $1.06 Brand well known, high awareness. Average sales increase over the last 10 years is 13%. Housing Industry buoyant. Dominant position in the category. 19
Slide 20: Reflections
REFLECTIONS For personal use only • Definitely achieved goals. • New energy with a new CEO. • Many Beacon Associates are now Shareholders. • Business is more highly regarded as a Public company, especially in the eyes of the larger customers. • The structure is now more appropriate for the long term
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