Breville Group Limited · ASX:BRG
Breville — Shareholder Meeting (November 2017)
33 slides from Breville's shareholder meeting presentation, Nov 13, 2017
Slide 1: Annual General Meeting Presentations cover letter
13 November 2017 Manager, Company Announcements For personal use only ASX Limited Level 4, 20 Bridge Street Sydney NSW 2000 Dear Sir Breville Group Limited – Annual General Meeting Presentations Please find attached the Chairman’s Address to shareholders and CEO’s Review of Operations to be delivere
Slide 2: Chairman's Address
13 November 2017 Chairman’s Address Slide 2 For personal use only Good morning ladies and gentlemen and welcome to Breville Group Limited’s 2017 AGM. Turn to Slide 3 The 2017 financial year was another significant year of achievement for the Breville Group with continued sales and profit growth driv
Slide 3: Chairman's Address and CEO's Review of Operations
I would like to take a moment to formally thank and acknowledge the efforts of Jim and his talented management team, who delivered a number of foundational elements and key milestones in Breville’s transformation journey during FY17. I would also like to thank Breville team members around the world
Slide 4: CEO's Review: segment performance
share was declared, bringing the total dividends for the year to 30.5 cents per share, an increase of 7.0% on FY16. Turn to Slide 9 Drilling down to the segment level, you can see two very different stories playing through in FY17. For personal use only The Global segment delivered 14.3% revenue gro
Slide 5: CEO's Review: in-store execution and Europe
in front of us, but it is great to see the efforts we have put into this over the last two years finally reflected in store. Turn to Slide 14 We have made solid strides in delivering quality digital content to our retailers for their omni- For personal use only channel efforts as well as to consumer
Slide 6: CEO's Review: product development structure
From a structure perspective, the Sydney team focuses on breakthrough innovations. Once they develop the innovation into a flagship product, the Sydney team specifies how this innovation should be pulled through the product range. The offshore development centre takes the product specification hando
Slide 7: CEO's Review: supply chain and IT
demand variation. As we move through the holiday season, we will have a chance to assess the impact of these changes and apply what we learn to the planning cycle for next year. For the supply chain itself, we recently went live with a consolidation warehouse—enabling us to overcome any minimum orde
Slide 8: CEO's Review: EBIT acceleration and closing remarks
The final metric, EBIT acceleration, is the core objective of the acceleration program, though it is an output vs. an input. In FY17—a year where we added an incremental 1% of net sales to our marketing and R&D spend—we also delivered an EBIT growth of 7.2% over FY16 vs. the 5.9% growth we saw the y
Slide 9: Breville Group Limited Annual General Meeting November 17
Breville Group Limited Annual General Meeting 13 November 2017
Slide 10: Chairman's Address
Chairman’s Address Mr Steven Fisher 2 Breville
Slide 11: Continued sales and profit growth driven by transformational execution
“Continued sales and profit growth driven by transformational execution” 3 Breville
Slide 12: Group FY17 Results Summary
Group FY17 Results Summary % change FY17 from FY16 Revenue $605.7m 5.1% Earnings before interest and tax (EBIT) $79.0m 7.2% Net profit after taxation (NPAT) $53.8m 7.3% Earnings per share (EPS) 41.4 cps 7.3% Dividends per share (DPS) 30.5 cps 7.0% Net cash flows from operations $62.7m (FY16: $52.3m)
Slide 13: Thank you
Thank you * Thank you — Breville team — Board colleagues — Suppliers, customers and consumers — Valued shareholders
Slide 14: CEO's Address
CEO’s Address Jim Clayton 6 Breville
Slide 15: AGM Agenda
AGM Agenda * The Numbers * Global Segment Acceleration Program * Distribution Segment Turnaround Program * Scalable Platform * Next Steps 7 Breville
Slide 16: FY17 financial results
AUDm FY17 FY16 % Chng For personal use only Revenue 605.7 576.6 5.1% • EBITDA 89.8 83.4 7.6% • EBIT 79.0 73.7 7.2% EBIT margin (%) 13.0% 12.8% • NPAT 53.8 50.2 7.3% Basic EPS (cents) 41.4 38.6 7.3% • ROE1 (%) 21.3% 21.0% • Dividends per share (cents) 30.5 28.5 7.0% • Interim 15.5 14.5 • Final 15.0 1
Slide 17: Revenue and EBIT by segment
REVENUE EBIT EBIT MARGIN (%) AUDm For personal use only FY17 FY16 % Chng FY17 FY16 % Chng FY17 FY16 Global Product 469.6 427.2 9.9% 72.4 65.1 11.1% 15.4% 15.3% % Change CC* 14.3% Distribution 136.2 149.4 (8.8%) 6.6 8.6 (22.5%) 4.9% 5.7% TOTAL 605.7 576.6 5.1% 79.0 73.7 7.2% 13.0% 12.8% • • • • 9
Slide 18: Global Product Segment Revenue
GLOBAL PRODUCT SEGMENT REVENUE AUDm For personal use only FY17 FY16 % Chng $A % Chng *CC North America 265.1 251.8 5.3% 9.8% Australia and 114.1 93.2 22.4% 22.0% New Zealand (ANZ) Rest of World 90.4 82.3 9.9% 18.9% TOTAL 469.6 427.2 9.9% 14.3% • • • 10
Slide 19: Balance sheet summary
AUDm FY17 FY16 For personal use only • Inventory 116.6 107.7 Receivables 106.4 89.5 Trade and other payables (94.8) (74.9) Working Capital 128.2 122.3 Fixed assets 10.7 11.8 • Intangibles 100.1 92.1 Other (liabilities)/assets (net) (20.7) (16.3) • NET ASSETS EMPLOYED 218.3 209.9 (Cash) (net) (41.3)
Slide 20: For personal use only
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Slide 21: Continuing to Improve In Store Execution
Continuing to Improve In Store Execution K 2 = Point of Sale Material In Store Demonstration Program Retailer Sales Associate Training Program Breville
Slide 22: Delivering Digital Content at Launch
Delivering Digital Content at Launch (cont.) p> pl gi) 0:00/1:39 Barista Touch Breville
Slide 23: Continuing Expansion of Sage Brand
Continuing Expansion of “Sage” Brand Current in-market Sage brand FY18 expansion + UKdirect model + Czech Republic, et. al., through - Nordics & Baltics through partner (in market 2H FY18) partners Breville
Slide 24: Launching New Innovation-Driven Products
Launching New Innovation-Driven Products Precision Brewer - Thermal Oracle Touch Barista Touch NutriJuicer Cold XL Tea Maker Lite Smart Tea Infuser Big Squeeze Sommelier Compact Convection Smart Oven Breville
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Slide 27: Distribution Segment Turnaround
Distribution Segment Turnaround FY17 FY18 Aquaport Acquisition - ANZ | Dolce Gusto Distribution - ANZ | Nespresso Distribution —- North America Nespresso Distribution —- North America (partial year) (full year) Nespresso Distribution - ANZ Nespresso Distribution - ANZ Breville Mid-Market Breville Mi
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Slide 32: Acceleration Program Scorecard
Acceleration Program Scorecard Key metrics to measure success* June 16 Dec 16 June 17 Dec 17 June 18 Inventory ee Cost structure pecan nee eee n nnn e ene e ee : H reallocation 90 wren nec enennee- Pe Growth rate pene ee enn ee nee nnn n eo ee e222 52-885 acceleration Loo -------------- eee ----- ==
Slide 33: Disclaimer
Disclaimer This Presentation contains certain ‘forward looking statements’ including indications of, and guidance or outlook on, future earnings or financial position or performance. The forward looking statements contained in this Presentation are not guarantees of future performance and involve kn