Collins Foods Limited · ASX:CKF
Collins Foods — Shareholder Meeting (September 2014)
30 slides from Collins Foods's shareholder meeting presentation, Sep 3, 2014
Slide 1: Collins Foods Limited 2014 Annual General Meeting
For personal use only COLLINS FOODS LIMITED 2014 ANNUAL GENERAL MEETING 3 SEPTEMBER 2014
Slide 2: Evacuation diagram
For personal use only Evacuation diagram
Slide 3: Chairman's address
For personal use only Chairman’s address Russell Tate
Slide 4: Managing Director & CEO's address
For personal use only Managing Director & CEO’s address Kevin Perkins
Slide 5: Today's Agenda
Today’s Agenda For personal use only • SECTION 1: Financial overview • SECTION 2: KFC improves margin and consolidates the WA/NT acquisition • SECTION 3: Sizzler remains in transition • SECTION 4: Snag Stand concept evolving • SECTION 5: Positive FY15 outlook • SECTION 6: AGM business Page 4
Slide 6: Financial overview
Picture to be inserted For personal use only Financial overview
Slide 7: FY14 financial overview
FY14 financial overview For personal use only Change • Underlying NPAT up 9.3% to $17.9m WA Significant FY14 versus FY13 FY14 impact (1) items (2) Underlying FY13 $m Underlying • Final dividend 6 cps (fully franked) bringing the full year dividend to 10.5 cps – an increase of Revenue 423.9 440.6 15.
Slide 8: Comfortable debt profile
Comfortable debt profile For personal use only • Increased overall debt facilities to $175m up from Net debt () v Net leverage ratio (–) $145m to support KFC WA/NT acquisition 150 2.75 • Net debt up $46.4m to $127.4m (FY13: $81m) 2.50 125 • Strong net operating cash flow generation in the 2.25 busi
Slide 9: FY14 operational highlights
FY14 operational highlights For personal use only • Acquired and successfully integrated 42 restaurants • Continued Top-line growth - revenue growth of 3.5% and SSS up 0.8% • Built 4 new restaurants, closed 1 and undertook 12 major remodels and 5 minor remodels • EBITDA margin up 120 bps as a result
Slide 10: KFC improves margin & consolidates the WA/NT acquisition
For personal use only KFC improves margin & consolidates the WA/NT acquisition
Slide 11: KFC WA/NT – building a national footprint
KFC WA/NT – building a national footprint For personal use only • Transaction completed on 7 March 2014 • Integration of acquisition complete NORTHERN TERRITORY (4) • New store – Rockingham – under construction with a further 2-3 stores to be built in calendar year 16 • 5 Major remodels to be comple
Slide 12: Operational efficiencies driving margin improvements
Operational efficiencies driving margin improvements For personal use only • In-store labour – direct and indirect – efficiencies and productivity gains have been key to margin improvements • Service flow format and associated benefits have been rolled out across all non food court stores with posit
Slide 13: KFC capex focused on growth
KFC capex focused on growth For personal use only 25 Total KFC capex of ~ $31m for FY15: 20 • ~ $20.6m for Queensland: – 5 new builds 15 – 11 major remodels $m 10 – 5 minor remodels 5 • ~ $10.4m for WA/NT: 0 – 2 new builds FY14 FY15 FY15 KFC Qld/NSW KFC WA/NT – 5 major remodels – 2 minor remodels Ma
Slide 14: KFC growth layers in test
KFC growth layers in test For personal use only • Breakfast • Beverages • Mobile ordering • Digital menu boards
Slide 15: New builds and remodels
New builds and remodels For personal use only 4 new builds 12 major remodels 5 minor remodels North Lakes Gympie Kallangur Page 14
Slide 16: Sizzler remains in transition
For personal use only Sizzler remains in transition
Slide 17: Sizzler performance reflects ongoing transition
Sizzler performance reflects ongoing transition For personal use only • Overall revenue down 9.3% to $95.8m with Sizzler Australia SSS down 9.3% • Closed Sizzler Cairns in February 2014 on expiry of lease – location was no longer suitable • Revenue decline has put pressure on margins with 150 bps de
Slide 18: A fresh new look and feel for Sizzler
A fresh new look and feel for Sizzler For personal use only • Get Refreshed is a Brand wide initiative designed to contemporise Sizzler and re-engage with our guests • Key elements of Get Refreshed include: – creating a fresh/contemporary look and feel in the restaurants – elevating both the food an
Slide 19: Get Refreshed being roll-out
Get Refreshed being roll-out For personal use only • Sizzler Cleveland opened 2 June with the key Get Refreshed elements included an overall front of house remodel • Sales in Cleveland have been positive and over target • Over the next 6 to 8 months Get Refreshed aspects to be rolled out across a nu
Slide 20: Sizzler Asia continues to grow
Sizzler Asia continues to grow For personal use only • Royalty revenue over the year Sizzler Restaurants in Asia up 9.9% • Opened 4 new restaurants in China and Thailand during FY14 9 • New restaurants in China have performed well on opening 9 42 China Japan Thailand Page 19
Slide 21: Snag Stand concept evolving
For personal use only Snag Stand concept evolving
Slide 22: Snag Stand concept evolving
Snag Stand concept evolving For personal use only • Competes in the fast growing “Fast Casual” segment that overlaps and competes with QSR and Casual Dining – emerging Brands include Grill’d Burgers, Guzman Y Gomez and Mad Mex • An opportunity to be part of the fastest growing segment in the industr
Slide 23: Positive FY15 outlook
Picture to be inserted For personal use only Positive FY15 outlook
Slide 24: Priorities, outlook and results to date for FY15
Priorities, outlook and results to date for FY15 For personal use only • Build 7 KFC restaurants – 5 in Qld and 2 in WA • Summary unaudited financial results include: • 11 Major KFC remodels in Qld and 5 in WA – revenue of $124.3 million, up 28% on prior corresponding period (pcp) [1] • Return Sizzl
Slide 25: Questions
For personal use only Questions
Slide 26: AGM business
For personal use only AGM business
Slide 27: Item 1. Financial and other reports
Item 1. Financial and other reports For personal use only To receive and consider the Financial Report, Directors’ Report and Independent Auditor’s Report of the Company and its controlled entities for the financial period ended 27 April 2014 Page 26
Slide 28: Item 2. Re-election of Director – Russell Tate
Item 2. Re-election of Director – Russell Tate For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution • “To re-elect as a Director of the Company, Russell Tate who, being a Director of the Company, retires and, being eligible, offers himself
Slide 29: Item 3. Adoption of Remuneration Report
Item 3. Adoption of Remuneration Report For personal use only To consider and, if thought fit, to pass the following as an ordinary resolution • “That the Remuneration Report (which forms part of the Directors’ Report) in respect of the period ended 27 April 2014 be adopted.” • Note: This resolution
Slide 30: Disclaimer
Disclaimer For personal use only This presentation contains forward looking statements which may be subject to significant uncertainties beyond CKF’s control. No representation is made as to the accuracy or reliability of forward looking statements or the assumptions on which they are based. Circums