Breville Group Limited · ASX:BRG
Breville — Shareholder Meeting (November 2014)
30 slides from Breville's shareholder meeting presentation, Nov 12, 2014
Slide 1: Annual General Meeting Presentations cover letter
12 November 2014 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
12 November 2014 Chairman’s Address Slide 2 For personal use only Good morning ladies and gentlemen and welcome to Breville Group Limited’s 2014 AGM. Slide 3 It was 1974 when Breville first invented the jaffle maker, which back then was nicknamed a ‘Breville’. Forty years later in 2014, it is this t
Slide 3: Chairman's Address (continued)
This is a balanced result for the year, demonstrating the value of diversifying into new categories and geographies following the “Food Thinking” strategy. After assessing Breville’s financial performance, its working capital requirements and its future growth plans, your Board has increased dividen
Slide 4: Chairman's Address: Outlook
The Group's operating earnings for the first 4 months of the 2015 financial year to October 2014 have been consistent with our expectations for that period. However the key trading period of November and December, which was particularly strong last year, is always crucial to the Group’s results, not
Slide 5: CEO's Review of Operations
CEO’s Review of Operations Thank you Steve and welcome ladies and gentlemen. As many of you are aware, I have been CFO of Breville since September 2006 and took on the role as Interim CEO effective 21 August 2014. For personal use only The Breville Group is committed, and remains firmly focused, on
Slide 6: CEO's Review: Segment commentary
Despite the higher revenues, the stronger USD compared to that of the prior year, especially in the second half, resulted in higher product landed costs placing pressure on margins. EBIT margins were also adversely impacted by highly competitive market conditions. Going forward, the ANZ segment is e
Slide 7: CEO's Review: UK and balance sheet
The new UK business, which distributes Breville premium designed and developed products under a company-owned brand, Sage™, endorsed by internationally acclaimed chef Heston Blumenthal, delivered a positive earnings result in its first full year of trading. The EBIT margins within this segment are i
Slide 8: CEO's Review: Strategy
Turn to Slide 18 Since its humble beginnings in 1932, Breville has grown to become an iconic Australasian brand through thoughtful design and innovation. Globally, Breville is recognised for its expertise in kitchen appliances. Breville continues to engage with consumers through its core “Food Think
Slide 9: Closing remarks
Turn to Slide 21 On a personal note, I would like to thank the Board and the entire Breville Group team for their ongoing support and assistance. While we’ve had a challenging year, the team has demonstrated resilience, strength and continued creativity. Thank you for joining us today and please do
Slide 10: Breville Group Limited Annual General Meeting November 2014
Breville Group Limited For personal use only Annual General Meeting 12 November 2014 Sydney
Slide 11: Chairman's Address
For personal use only Chairman’s Address Mr Steven Fisher 2
Slide 12: Strategy
For personal use only Strategy The Group’s focus on its “Food Thinking” Strategy and commitment to investment in product development, innovation and marketing continues 3
Slide 13: Group FY14 Results Summary
For personal use only Group FY14 Results Summary % change from FY13 Revenue (including Keurig commission income) $541.6m +11.3% EBIT $70.4m -1.6% NPAT $48.8m -1.9% EPS 37.5 cents (FY13: 38.2 cents) -1.9% DPS: 27.0 cps, fully franked (FY13: 26.0 cps, 21.5 cps franked) +3.8% Net Cash $47.0m (FY13: $43
Slide 14: EBIT Returns
For personal use only EBIT Returns Reported EBIT 80,000 70,000 60,000 $000's 50,000 40,000 30,000 20,000 10,000 - FY09 FY10 FY11FY12 FY13 FY14 5 year compound annual growth of 24.6% 5
Slide 15: EPS and Dividends
For personal use only EPS and Dividends 45.00 EPS and DPS 40.00 35.00 ce nts per s hare 30.00 25.00 Earnings per share 20.00 (reported) - basic 15.00 10.00 Dividends per share 5.00 - FY09 FY10 FY11 FY12 FY13 FY14 5 year compound annual growth • EPS of 32.8% • DPS of 37.5% 6
Slide 16: Outlook FY2015
For personal use only Outlook FY2015 • Broader business conditions challenging and competitive • First half of the 2015 year cycling against a strong 2014 first half – particularly North American juicer sales • Group’s operating earnings through to October 2014 consistent with expectations • Too ear
Slide 17: Thank you
For personal use only Thank you • Thank you — Breville team — Board colleagues — Suppliers, customers and consumers — Valued shareholders • Board — New appointments Non-Executive Director: Tim Antonie Lead Independent Director: Lawrence Myers — Audit and risk committee resignations Steven Fish
Slide 18: CEO's Review of Operations
For personal use only CEO’s Review of Operations Mr Mervyn Cohen Interim CEO 9
Slide 19: Group Summary Result
For personal use only Group Summary Result AUDm FY14 FY13 % Chng Sale of goods 539.9 469.4 15.0% Keurig commission income 1.7 17.1 (90.1%) Revenue 541.6 486.5 11.3% EBITDA 77.9 78.9 (1.2%) EBIT 70.4 71.6 (1.6%) NPAT 48.8 49.7 (1.9%) • Business is well diversified by product, category and geography •
Slide 20: Segment Results
Segment Results REVENUE EBIT For personal use only AUDm FY14 FY13 % Chng FY14 FY13 % Chng Australia and New Zealand (ANZ) 261.6 240.9 8.6% 24.9 27.3 (9.1%) North America 200.2 192.4 4.1% 30.1 37.9 (20.5%) Rest of World 79.8 51.1 56.1% 20.2 15.7 28.8% Other - 2.1 (4.7) (9.3) TOTAL 541.6 486.5 11.3% 7
Slide 21: Australia and New Zealand (ANZ)
Australia and New Zealand (ANZ) 1H 2H FY For personal use only AUDm 1H14 1H13 % Chng 2H14 2H13 % Chng FY14 FY13 % Chng Revenue 144.6 130.9 10.4% 117.0 110.0 6.4% 261.6 240.9 8.6% EBITDA 16.6 17.4 (4.9%) 9.4 10.9 (13.4%) 26.0 28.3 (8.2%) EBIT 16.1 16.9 (5.0%) 8.8 10.4 (15.7%) 24.9 27.3 (9.1%) EBIT %
Slide 22: North America
North America 1H 2H FY For personal use only % % % AUDm 1H14 1H13 Chng 2H14 2H13 Chng FY14 FY13 Chng Sale of goods 128.7 99.1 29.9% 69.8 76.2 (8.4%) 198.5 175.3 13.2% Commission income 1.3 12.7 (89.8%) 0.4 4.4 (90.8%) 1.7 17.1 (90.1%) Revenue 130.0 111.8 16.3% 70.2 80.6 (12.9%) 200.2 192.4 4.1% EBIT
Slide 23: Rest of World
Rest of World 1H 2H FY For personal use only AUDm 1H14 1H13 % Chng 2H14 2H13 % Chng FY14 FY13 % Chng Revenue 36.6 21.7 69.1% 43.2 29.4 46.6% 79.8 51.1 56.1% EBITDA 9.6 7.5 27.9% 10.7 8.2 30.0% 20.2 15.7 29.0% EBIT 9.5 7.5 27.8% 10.7 8.2 29.8% 20.2 15.7 28.8% EBIT % 26.1% 34.5% 24.7% 27.9% 25.3% 30.7
Slide 24: Financial Position at June
For personal use only Financial Position at 30 June AUDm FY14 FY13 • Strong balance sheet – solid foundation • Group continues to invest in efficiency and cost Inventory 94.3 83.8 improvement projects Receivables 78.4 90.8 ‒ leased distribution centre (Sydney–based Australian distribution business)
Slide 25: the Boss Blender
16 For personal use only TM the Boss Blender
Slide 26: PolyScience
PolyScience • PolyScience culinary division acquired shortly after end of 2014 financial year For personal use only • Market leader in the sous-vide category – commercial and professional markets • Sous-vide cooking method: — Food sealed in airtight plastic bags in a water bath in a temperature-cont
Slide 27: Strategic Initiatives
Strategic Initiatives • Core strategy For personal use only — “Food Thinking” — Deliver sustainable growth through product innovation, brand management and distribution capabilities across multiple geographies • The Group has: — Continued to invest in product development and launched a number of fla
Slide 28: Strategic Initiatives cont'd
Strategic Initiatives cont’d • The Group’s strategy includes a number of initiatives aimed at addressing the expected For personal use only challenging broader business conditions to be faced in FY15. The team is focused on: — Integrating the culinary division of PolyScience and extending our produc
Slide 29: the Oracle
20 For personal use only the Oracle TM
Slide 30: Breville Thought for food
Breville Thought for food