Oliver's Real Food Ltd. · ASX:OLI
Oliver's Real Food — Investor Presentation (November 2018)
54 slides from Oliver's Real Food's investor presentation, Nov 5, 2018
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Slide 2: Important notice and disclaimer
Important notice and disclaimer This company presentation (“Presentation”) has been prepared by Oliver’s Real Food Limited ABN 33 166 495 441 (“OLI”, “Oliver’s”, or “the Company”) Summary information: This Presentation contains summary information about OLI and its related bodies corporate and their
Slide 3: Contents
Executive Summary 4 Equity Raising 7 Offer Details 8 Source and Use of Funds 10 Indicative Timetable 14 Market Trends 15 Our Market 16 Strategy and Outlook 20 The Story of Oliver’s 21 Board of Directors 24 Executive Management 25 FY2018 Financial Results and Outlook 38 FY2018 Full Year Review 40 Fin
Slide 4: Executive Summary
Company →→ Oliver’s Real Food has created a market leading healthy food offering built primarily around the needs of highway travelling motorists, offering “Fresh, Highlights Natural and Organic” products to our customers →→ Oliver’s was established in 2003, with its first store opening in Wyong NSW
Slide 5: Executive Summary: Equity Raising
Equity Raising →→ $3.5M Placement and up to $3.9M Entitlement Offer, to raise a total of up to $7.4M →→ Funds raised will be used to accelerate our consolidation program and continue store development and rollout →→ Develop and open new stores to take advantage of sales and market momentum →→ Implem
Slide 6: Executive Summary: Outlook
Outlook →→ The consolidation approach to FY2019 will see many projects implemented to benefit and improve the performance of the brand. For FY2019 →→ As with any consolidation period, FY2019 results are transitional. This will see investment with part year benefits for some projects, investment with
Slide 7: Equity Raising
e ee i : ; equity raising oliver
Slide 8: Offer Details
Offer Overview →→ $3.5M Placement and up to $3.9M Entitlement Offer, to raise a total of up to $7.4M →→ Placement conducted on 1 and 2 November 2018 Placement →→ Placement of approximately 32 million shares to raise circa $3.5M offered to new and existing institutional investors →→ Shares issued und
Slide 9: Company Snapshot
Company Snapshot Capital Structure - as at 31 October 2018 Major Shareholders - by registered holding as at 31 October 2018 Ordinary shares on issue 213,960,081 HAURAKI TRUST COMPANY LIMITED 43,387,500 20.278% Restricted until BUTOF HOLDINGS PTY LTD 23,362,500 10.919% Restricted shares 71,687,500 21
Slide 10: Source and Use of Funds
Source and Use of Funds Funds raised will be used to accelerate our consolidation program and continue store development and rollout →→ Develop and open new stores to take advantage of sales and market momentum →→ Implement new instore kitchen and service equipment to improve speed of service and st
Slide 11: Source and Use of Funds
Source and Use of Funds $M (approx) $M Use of Funds* Maximum2 Raised Minimum1 Raised Source of Funds (approx) New Store Development & Roll Out $3.7 $1.6 Placement $3.5M Speed Ovens, Self Ordering Kiosks Entitlement Offer up to $3.9M $1.6 $1.6 & Wyong Refurbishment Total up to $7.4M NSW Warehouse & K
Slide 12: Specific Projects
Specific Projects Project Rationale Impact on the Business New Store This relates to the fitout of a leased location for the purposes of opening a new Oliver’s Store. This This expenditure will enhance the store portfolio and generate additional revenue and long term Development pricing relates to a
Slide 13: Specific Projects (continued)
Specific Projects (continued) Store Service This relates to the extensive refit of Wyong North and Wyong South stores. Both stores are >12yrs This essential refurbishment program will enhance the operational efficiencies of our 2 largest and Technology & old and require extensive refit including kit
Slide 14: Indicative Timetable
Summary of key Placement and Entitlement Offer Dates** Trading halt, conduct of Placement THURSDAY, 1 NOVEMBER 2018 Placement closes FRIDAY, 2 NOVEMBER 2018 Announce results of Placement and launch of Entitlement Offer Before trading WEDNESDAY, 5 NOVEMBER 2018 Record Date for determining entitlement
Slide 15: Market Trends
oliver's market trends ED YOUR coos
Slide 16: Our Market
Australia owns 53% of the World’s organic farmland having increased 23% since 2015. The Australian organic supermarket category is now estimated to be a $2.4b industry. SOURCE: AusVeg Statistics OUR MARKET 16
Slide 17: 2.25m Australians follow a vegetarian or plant-based diet
2.25m Australians follow a vegetarian or plant-based (vegan) diet. SOURCE: Roy Morgan Research OUR MARKET 17
Slide 18: Asia Pacific consumers willing to pay a premium
25 to 40 percent of consumers in the Asia Pacific Region are willing to pay a premium for foods free from artificial colours, flavours & gluten, low in fat & salt, and higher in protein and fibre. SOURCE: Nielsen Research OUR MARKET 18
Slide 19: Consumers Looking for Health
Consumers Looking for Health Cuisine/food concepts - popularity, growing and declining (%) Modern Australian 87.4 2.2 Italian (other than fast food) 81.5 -12.5 Seafood 80.5 8.8 Chinese 79.1 -16 Healthy eating 78.5 14.7 Thai 78.3 -3.8 Indian 61.7 -9.8 Vietnamese 55.6 0.9 Japanese & Korean 54.5 1.8 Me
Slide 20: Strategy and Outlook
liver's strategy and outlook gers
Slide 21: The Story of Oliver's
The Story of Oliver’s Established in 2003, today Oliver’s operates 28 stores in New South Wales, Victoria and Queensland, all serviced by central commercial kitchens and distribution centres in Wyong, Melbourne and Brisbane. In 2015, Oliver’s became the World’s First certified organic fast food chai
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Slide 23: Our Purpose, Mission and Values
OUR PURPOSE OUR MISSION “TO EMPOWER “TO PROVIDE OUR CUSTOMERS TO LIVE A HAPPIER AND EXCEPTIONALLY vrata DELICIOUS 1° NUTRITIOUS a REAL FOOD" FEED 08 GOOD BODY, MIND & SPIRIT OUR VALUES WE ARE ABSOLUTELY CUSTOMER FOCUSED passionate ethical accountable conscious exceptional WE ARE ALWAYS POSITIVE IN W
Slide 24: Board of Directors
Oliver’s Board and its advisors compose a depth and breadth of experience that will ensure good governance and astute business leadership across a broad spectrum of commercial, legal and accounting disciplines Mark Richardson Katherine Hatzis John Diddams Peter Rodwell Emma Lawler Chairman and Indep
Slide 25: Executive Management
Greg Madigan Alan Lee Mark Shalala Neil Temple Kelly Pumpa Sally Fong Robert Vandermaat Robbie Williams Chief Executive Officer Chief Financial Officer Chief of Operations Chief Technology Officer Chief People Officer Chief Development Officer Chief Supply Officer Chief Marketing Officer Greg has ov
Slide 26: FY2019 Business Platforms
Sally Fong Robert Vandermaat Alan Lee Neil Temple Chief Development Officer Chief Supply Officer Chief Financial Officer Chief Technology Officer Mark Shalala Robert Vandermaat Robbie Williams Kelly Pumpa Chief of Operations Chief Supply Officer Chief Marketing Officer Chief People Officer FY2019 BU
Slide 27: Store Locations
Brisbane As at 30 June, 2018, Oliver’s Real Food owned and operated 28 organically certified quick service restaurants 1. MARYBOROUGH, QLD 18. WALLAN NORTHBOUND, VIC 2. ARATULA, QLD 19. WALLAN SOUTHBOUND, VIC 3. COOMERA, QLD 20. EASTLINK OUTBOUND, VIC 4. CHINDERAH, NSW 21. EASTLINK INBOUND, VIC 5. F
Slide 28: Planned Store Development
Planned Store Development Brisbane Existing Stores 22. OFFICER OUTBOUND, VIC 1. MARYBOROUGH, QLD 23. OFFICER INBOUND, VIC 2. ARATULA, QLD 24. PEN-LINK OUTBOUND, VIC 3. COOMERA, QLD 25. PEN-LINK INBOUND, VIC 4. CHINDERAH, NSW 26. GEELONG SOUTHBOUND, VIC 5. FERRY PARK, NSW 27. GEELONG NORTHBOUND, VIC
Slide 29: Sale and Lease Back
Sale and Lease Back From time to time, the opportunity exists for us to purchase selected businesses/properties, rebrand them and sell them with a lease in place to Oliver’s at an annual rental that works for our business. This strategy has already proven to produce significant contributions in the
Slide 30: Oliver's Technology Advancements
Oliver’s Technology Advancements →→ Recent development and testing of our custom self-order kiosks has proven highly successful with a significantly higher Kiosk vs Counter average transaction value (ATV). This, accompanied by the decrease in ordering wait times, and associated labour saving opportu
Slide 31: Supply Chain Efficiencies
Supply Chain Efficiencies Owning and controlling our own supply and distribution network is the envy of any QSR operator. Our warehouses, integrated with our central kitchens, where possible, provide total product control and allow effective cost control. As the Oliver’s network of stores continues
Slide 32: Customer Satisfaction - Net Promoter Score
NPS 60 55 50 45 EASTER, ANZAC & SCHOOL HOLIDAYS QUEEN’S SCHOOL HOLIDAYS BIRTHDAY 40 WEEKEND 35 WEEK 3/4 10/4 17/4 24/4 1/5 8/5 15/5 22/5 29/5 5/6 12/6 19/6 26/6 3/7 10/7 17/7 24/7 31/7 7/8 14/8 21/8 28/8 4/9 11/9 18/9 25/9 ENDING CUSTOMER FEEDBACK 7231 5955 4891 6184 3788 4016 4192 3576 3719 4489 47
Slide 33: Introduced New Menu Items
Introduced New Menu Items Plant-Based Fresh Sides Buddha Bowls Christmas Turkey & Cranberry Relish Sandwich Pulled Pork & Appleslaw Roll LTO Updated Pocket Range, now in Classic and Maxx sizes →→ Enhanced vegan (plant-based) range. →→ Menu Development Committee introduced that looks at Oliver’s menu
Slide 34: Red Dragon Organics
Red Dragon Organics Oliver’s owns 100% of The Delicious & Nutritious Food Company Pty Ltd (D&N), specialist organic beverage manufacturer of Red Dragon products, which supplies Organic Living Elixir, Living Elixir - Honey Brew (low sugar), Organic Ginger Beer and Organic Lemon, Lime & Bitters. Olive
Slide 35: FY2019 Marketing Plan
WINDOW 1 WINDOW 2 WINDOW 3 WINDOW 4 WINDOW 5 WINDOW 6 WINDOW 7 WINDOW 8 WINDOW 9 START DATE 4-JUL-18 15-AUG-18 19-SEP-18 31-OCT-18 26-DEC-18 16-JAN-19 27-FEB-19 3-APR-19 15-MAY-19 END DATE 7-AUG-18 18-SEP-18 30-OCT-18 25-DEC-18 15-JAN-19 26-FEB-19 2-APR-19 14-MAY-19 25-JUN-19 WEEKS 5 6 6 8 4 6 5 6 6
Slide 36: Outdoor Advertising
→→ Outdoor advertising/billboards is our core marketing strategy launched to attract customers to our Highway locations. →→ Currently we have 38 billboards in use across the network, many with commercial suppliers, and some with private land owners. →→ The majority of the billboards have now been re
Slide 37: Community
Community Community engagement is important to Oliver’s, especially in our rural township locations. We have aligned our charity and community commitment to Rural Aid Australia who are providing holistic support to the type of farmers that Oliver’s rely upon. Our ‘Love Bucket’ donations will be regu
Slide 38: FY2018 Financial Results and Outlook
FY2018 financial results and outlook 38
Slide 39: FY2018 Highlights
CASH % REVENUE BALANCE ¥ Ne 9M AT 30 JUNE 2018 r e TO $35.9 BRRSANE i Bey! CAN ty OPERTION i. ali +4.3% y fasgye amen ff i NINE z SELF NEW : EBITDA OF \ age Wy "3$2.7M—( “FOR 2018 > = ORDER Uti tA viene of TRANSITIONED \ supply FLeet LEASING J appressen \\) EASING UNDER man, §=©PERFORMING : i STORE:
Slide 40: FY2018 Full Year Review
FY2018 Full Year Review →→ Revenue for the FY2018 Year increased 73.2% to $35.9m. Same store growth of the existing network was 4.3%. →→ Revenue growth was achieved through the opening of nine (9) new corporate owned and operated stores including: →→ Aratula, Horsham, Maryborough, Euroa, Port Macqua
Slide 41: Financial Overview & Outlook
Financial Overview & Outlook YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 30-JUN-16 30-JUN-17 30-JUN-18 30-JUN-19 ACTUAL ACTUAL ACTUAL PROFORMA## Revenue from ordinary activities $17.1M $20.7M $35.9M $40M TO $43.2M Gross Profit $10.5M $13.9M $27.5M $30M TO $32.7M Gross Margin 61.3% 67.2% 76.4% 75.7%
Slide 42: Operational EBITDA
Operational EBITDA Chart $4.0M 4.0 3.0 $3.0M 2.0 $1.5M 1.0 $0.8M $1.0M $,m 0.0 FY2016A FY2017A FY2018A FY2019F FY2020F -1.0 ($1.0M) -2.0 -3.0 ($2.3M) Excludes land sales EBITDA OPERATIONAL EBITDA 42
Slide 43: Sales
Trading Performance Sales 35 $45.0 $43.2 $40.0 Group Sales 30 Store Numbers 32 $40.0 28 $35.0 $35.9 25 $30.0 20 20 $25.0 $20.0 15 17 $20.7 $’m $15.0 $17.1 10 $10.0 5 $5.0 $.0 0 FY2016 FY2017 FY2018 FY2019F FY2016 FY2017 FY2018 FY2019F SALES 43
Slide 44: Gross Margin
Gross Margin Gross Profit $35.0 $32.7 80.0 $30.0 $30.0 $27.5 70.0 76.4% 75.7% $25.0 60.0 67.2% 61.3% $20.0 50.0 40.0 $15.0 $’m % 30.0 $13.9 $10.0 $10.5 20.0 $5.0 10.0 0.0 $0.0 FY2016 FY2017 FY2018 FY2019F FY2016 FY2017 FY2018 FY2019F GROSS MARGIN 44
Slide 45: Balance Sheet
Balance Sheet $’000s JUNE 2016 JUNE 2017 JUNE 2018 JUNE 2019 ACTUAL ACTUAL ACTUAL PROFORMA* Cash and cash equivalent $0.8M $6.3M $2.8M $5.1M Receivables $1.0M $1.4M $1.0M $1.1M Inventories $0.9M $1.3M $2.0M $2.0M Total current assets $2.7M $9.1M $6.0M $8.2M Property, plant & equipment $4.0M $10.7M $
Slide 46: Key Risks
: oliver's key risks FEED YOUR GOOD
Slide 47: Key Risks: Specific to Oliver's
Risks specific to an investment in Oliver’s Real Food Limited Risk Summary Competition The Company operates in a competitive retail market which is subject to moderate barriers to entry and is subject to changing consumer preferences. The Company’s competition includes fast food restaurants, cafes,
Slide 48: Key Risks (continued)
Risks specific to an investment in Oliver’s Real Food Limited (continued) Risk Summary Traffic diversion and The Company’s stores are located on arterial highways, and are accessible only via these roads. Future growth is predicated on the belief that these roads will continue to experience a high l
Slide 49: Key Risks: Industry
Risks specific to the industry in which Oliver’s operates Risk Summary Food safety and There is a risk that a serious food poisoning incident could occur in a commercial kitchen or store as a result of operational lapse in procedures or malicious tampering by an employee or the public. The sanitatio
Slide 50: Key Risks: Investment in Oliver's Shares
Risks associated with an investment in Oliver’s Shares Risk Summary Trading and liquidity Development of an active market for the Shares is not guaranteed, and there may be only a small number of potential buyers or sellers of the Shares on the ASX at any given time. in Shares The result of there be
Slide 51: Key Risks: Shares (continued)
Risks associated with an investment in Oliver’s Shares (continued) Risk Summary General investment The price at which Shares are quoted on the ASX may increase or decrease due to a number of factors. These factors may cause the Shares to trade at prices below the price at which the Shares are being
Slide 52: Foreign Selling Restrictions
foreign selling restrictions 52
Slide 53: Foreign Jurisdictions
Foreign Jurisdictions No action has been taken to register or qualify the New Shares, or the Retail Entitlement Offer, or otherwise to permit a public offering of the New Shares, in any jurisdiction outside Australia and New Zealand. The Offer of New Shares does not, and is not intended to, constitu
Slide 54: fresh. oliver's
fresh. oliver's organic. FEED YOUR GOOD
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