Collins Foods Limited · ASX:CKF
Collins Foods — Shareholder Meeting (September 2012)
22 slides from Collins Foods's shareholder meeting presentation, Sep 4, 2012
Slide 1: 2012 Annual General Meeting CEO's Presentation
2012 ANNUAL GENERAL MEETING CEO’S PRESENTATION For personal use only
Slide 2: Agenda
Agenda For personal use only 1. Financial Results 2. Year in Review 3. Growth Strategies and Initiatives 4. Trading Update and Outlook 2
Slide 3: FY12 results summary
FY12 results summary Proforma For personal use only Proforma 1 FY12 FY11 Change (A$m) • Revenue down slightly on lower customer Revenue 406.5 410.8 (1)% counts in tough trading environment marked by intense competition Gross Profit 213.9 218.3 (2)% • EBITDA down 9% on lower revenues and EBITDA 2 51.
Slide 4: KFC performance
KFC performance For personal use only Proforma 1 (A$m) FY12 FY11 Change • Revenue down 1% on prior year reflecting weaker trading environment Restaurants 121 119 2 Period End • Same Store Sales down 1.8% Revenue 300.8 303.3 (1)% • Mining regions traded well, foodcourts and % SSSG (1.8)% 1.5% tourist
Slide 5: Sizzler performance
Sizzler performance For personal use only • Revenue down 2% on prior year reflecting Proforma 1 (A$m) FY12 FY11 Change weaker trading environment Restaurants 27 26 1 • Same Store Sales down 4.0% Period End Revenue 105.8 107.5 (2)% • EBITDA down $2.1m as planned menu price increases were not instigat
Slide 6: Growth strategies and initiatives
Growth strategies and initiatives For personal use only • Refocused store rollout and refurbishment programme • Brand building and product development supported by new marketing campaigns • Operating efficiencies 6
Slide 7: Refocused store rollout and refurbishment programme
Refocused store rollout and refurbishment programme For personal use only • Focused on new stores in growth locations (eg mining centres) and in service centre developments to deliver strong returns on investment • Ongoing review of food court portfolio • Refurbishments on basis of revised store cap
Slide 8: New stores and refurbishments in FY12
New stores and refurbishments in FY12 For personal use only • Upper Coomera– new store • Opened November 2011 • Annualised cash on cash return 58.7% • Valley Metro– new store • Opened August 2012 • Early sales results encouraging 8
Slide 9: New stores and refurbishments in FY12
New stores and refurbishments in FY12 For personal use only • Browns Plains – refurbishment Reopened August 2012 Early Sales tracking above targets Before After 9
Slide 10: Refocused store rollout and refurbishment programme
Refocused store rollout and refurbishment programme For personal use only • Refurbishments on basis of revised store capital strategy incorporating sustainability considerations and increasing seating capacity • FY13 – hold on all Sizzler refurbishments and new stores in Australia until revised stor
Slide 11: Brand building and product development supported by new marketing campaigns
Brand building and product development supported by new marketing campaigns For personal use only • Re-emphasis of core, unique and superior KFC products • Ongoing development of non-fried products and ‘in-between’ meal snacking options • Breakfast offering currently being trialled by Yum! • Raising
Slide 12: Brand and product initiatives
Brand and product initiatives For personal use only 12
Slide 13: Brand building and product development supported by new marketing campaigns
Brand building and product development supported by new marketing campaigns For personal use only • Continual evolution and upgrade of quality products • Re-emphasis of core and unique Sizzler offering • Expansion of digital marketing 13
Slide 14: Brand and product initiatives
Brand and product initiatives For personal use only 14
Slide 15: Operating efficiencies
Operating efficiencies For personal use only • Introduction of new and enhanced service methods including online ordering, kiosks, dual lane drive-thru • Enhanced production planning tools • Menu simplification and electronic order boards • New service flow methodologies 15
Slide 16: Technology to Improve Productivity and Customer Service
Technology to Improve Productivity and Customer Service For personal use only • New Manager of Innovation and Customer Technologies appointed 16
Slide 17: Self Serve Kiosks
Self Serve Kiosks For personal use only • 10 installed • Showing positive results in terms of customer service, average check and operating efficiences • Rolling out 9 more this year
Slide 18: Online and mobile ordering
Online and mobile ordering For personal use only • Pilot in Townsville (6 stores) went live 22 August
Slide 19: Online and mobile ordering
Online and mobile ordering For personal use only 19
Slide 20: Operating efficiencies
Operating efficiencies For personal use only • Testing of new and enhanced ordering systems • Operations engineering review of in-store processes to improve productivity • Digital menu boards in development 20
Slide 21: Outlook
Outlook For personal use only • FY13 Q1 SSSG: KFC 3.5% and Sizzler 0.1% • Expect clearer picture post September/ October • Produce price and labour costs pressures being felt, particularly in Sizzler • US drought impact on wheat prices – potential poultry price increases for Q4 FY13 and FY14 • Carbo
Slide 22: 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