Slide 1: Beacon Lighting Group Limited Results Presentation
For personal use only Beacon Lighting Group Limited RESULTS PRESENTATION
Slide 2: Disclaimer
DISCLAIMER For personal use only The Presentation contains “forward-looking statements”. All statements other than those of historical facts included in the Presentation are forward-looking statements. Where the Company expresses or implies an expectation or belief as to future events or results, su
Slide 3: Contents
CONTENTS For personal use only 1 RESULTS OVERVIEW 2 TRADING PERFORMANCE 3 CASH FLOW, BALANCE SHEET, DIVIDENDS 4 GROWTH STRATEGIES 5 H2 FY2017 OUTLOOK 6 QUESTIONS RESULTS PRESENTATION H1 FY2017 3
Slide 4: Please Note
PLEASE NOTE For personal use only For the purposes of this presentation, please note the following: • H1 FY2017 was for the 26 weeks ending 25 December 2016 • H1 FY2016 was for the 26 weeks ending 27 December 2015 • H1 FY2015 was for the 26 weeks ending 28 December 2014 • H1 FY2014 based on the pro
Slide 5: Results Overview
For personal use only 1 RESULTS OVERVIEW
Slide 6: H1 FY2017 Highlights
1 H1 FY2017 HIGHLIGHTS For personal use only • In FY2017, Beacon Lighting celebrates 50 Years of Living Brighter • Achieved record sales up $10.7m, an increase of 10.9% • Strong value promotions to compete against the national withdrawal of the Masters home improvement stores • Company store compara
Slide 7: H1 FY2017 Result
1 H1 FY2017 RESULT For personal use only $’000 H1 FY2016 H1 FY2017 Change $ Change % Sales 98,514 109,245 10,731 10.9% Gross Profit 64,934 67,803 2,869 4.4% Gross Profit Margin 65.9% 62.1% Other Income 1,763 1,766 3 0.2% % of Sales 1.8% 1.6% Operating Expenses (1) (49,143) (54,432) (5,289) 10.8% % o
Slide 8: Trading Performance
For personal use only 2 TRADING PERFORMANCE
Slide 9: Sales
2 SALES For personal use only SALES: $109.2m increased by 10.9% • Record first half year sales • Company store sales increased by 9.2% • Commercial Offices sales increased by 23.5% • Beacon Solar sales have increased by 222.4% Total Sales $m Sales Increase % 109.2 98.5 21.9% 90.8 74.5 12.7% 66.1 10.
Slide 10: Company Store Comparative Sales
2 COMPANY STORE COMPARATIVE SALES For personal use only COMPARATIVE SALES: Increased by 1.2% • Operating in a unique competitive environment with a national competitor in Masters closing down • Good comparative sales growth in NSW and SA • December 2016 comparative sales growth was encouraging Compa
Slide 11: Gross Profit
2 GROSS PROFIT For personal use only Gross Profit Dollars: Increased by 4.4% to $67.8m • Strong value promotional pricing was necessary in order to maintain market share • Margin mix is changing with the growth in emerging businesses • FX benefits in H1 FY16 gross margin were not repeated in H1 FY17
Slide 12: Other Income
2 OTHER INCOME For personal use only Other Income: Increased by 0.2% to $1.8m • Selling licence fees for the right to use the Group Intellectual Property • Marketing and royalty income continues to decline as franchise stores are acquired Other Income $m 2.3 2.1 2.0 1.8 1.8 H1 FY13 H1 FY14 H1 FY15 H
Slide 13: Operating Expenses
2 OPERATING EXPENSES For personal use only $’000 H1 FY2016 H1 FY2017 Chg $ Chg % Opex: Decreased by 0.1% of Sales Marketing 6,003 6,298 295 4.9% % of Sales 6.1% 5.8% • Operating expense decrease of 0.1% of sales to $54.4m Selling and Distribution 34,839 39,578 4,739 13.6% % of Sales 35.4% 36.2% • Pr
Slide 14: Earnings
2 EARNINGS For personal use only EBITDA: -13.8% to $15.1m EBIT: -15.9% to $13.7m EBITDA $m EBIT $m 17.5 16.3 15.1 14.5 13.4 13.7 11.0 10.0 8.2 7.2 H1 FY13 H1 FY14 H1 FY15 H1 FY16 H1 FY17 H1 FY13 H1 FY14 H1 FY15 H1 FY16 H1 FY17 NPAT: -15.0% to $9.4m EBITDA Margin: 13.9% NPAT $m 11.1 EBITDA Margin 17.
Slide 15: Cash Flow, Balance Sheet & Dividends
For personal use only 3 CASH FLOW, BALANCE SHEET & DIVIDENDS
Slide 16: Cash Flow
3 CASH FLOW For personal use only Capital Expenditure $4.6m $ ‘000 H1 FY2016 H1 FY2017 Cash Flow from Operations • New Stores Capex $3.2m Receipts from Customers 105,935 122,079 Payments to Suppliers & Employees (94,869) (108,096) • Information Tech. $0.5m Other (499) (557) • Major Refits $0.3m Inco
Slide 17: Balance Sheet
3 BALANCE SHEET For personal use only Debtors $ ‘000 H1 FY2016 H1 FY2017 • Commercial $5.3m Cash 13,107 8,270 Receivables 8,317 9,334 • Franchise $2.0m Inventories 52,251 53,616 • Solar $1.6m Other 837 1,793 Total Current Assets 74,512 73,013 Borrowings PPE 20,526 25,216 • Trade Finance $21.1m Intan
Slide 18: Dividends
3 DIVIDENDS For personal use only • Fully franked dividend of 2.35 cents per share for H1 FY2017 (2.30 cents per share in H1 FY2016) • Record date 3rd March 2017 • Payment date 24th March 2016 • Annual payout ratio expected to be 50% to 60% of NPAT RESULTS PRESENTATION H1 FY2017 18
Slide 19: Growth Strategies
For personal use only 4 GROWTH STRATEGIES
Slide 20: New Store Rollout
4 NEW STORE ROLLOUT For personal use only Beacon Lighting will continue to target the opening of six new company operated stores in Australia each year • Opened four new company stores at South Melbourne (VIC), Marsden Park (NSW), Brookvale (NSW) and Claremont (WA) • Closed the South Wharf (VIC) sto
Slide 21: Optimise Existing Stores
4 OPTIMISE EXISTING STORES For personal use only Beacon Lighting believes it is able to grow sales and profit through the continued investment in the existing stores network • Strong value promotional pricing was necessary to maintain to our market share • Launched the Premium Beacon Design Service
Slide 22: New Product Ranges
4 NEW PRODUCT RANGES For personal use only Beacon Lighting will offer an extensive range of the latest fashion, trend and energy efficient products to our customers • Designed and developed 278 exclusive new products for our customers • Introduced 89 new technically advanced LED Light Globes for the
Slide 23: Online and Social Media
4 ONLINE AND SOCIAL MEDIA For personal use only Beacon Lighting will continue to enhance our online presence in order to drive incremental sales • Online sales increased by 48.4% over H1 FY2016 • Launched Afterpay on the Beacon Lighting website to provide extended payment options for our customers •
Slide 24: Emerging Businesses
4 EMERGING BUSINESSES For personal use only Beacon Lighting will continue to grow our emerging businesses: Beacon International, Light Source Solutions, Beacon Solar and Masson for Light • Beacon Solar has had an outstanding half year in terms of sales and profitability COMMERCIALSOLAR COMMERCIAL EN
Slide 25: Acquisitions
4 ACQUISITIONS For personal use only Beacon Lighting intends to investigate and pursue local and international business opportunities that complement the core activities of the Group • Purchased the Jindalee (QLD), Moonah (TAS) and Frankston (VIC) franchise stores and converted them into company sto
Slide 26: Efficiency Gains
4 EFFICIENCY GAINS For personal use only Beacon Lighting will continue to target expense efficiency gains and manage the growth of expenses • Continue to maintain customer service levels within our stores in order to grow market share • Continue to invest in the emerging businesses ahead of the reve
Slide 27: H2 FY2017 Outlook
For personal use only 5 H2 FY2017 OUTLOOK
Slide 28: H2 FY2017 Outlook
5 H2 FY2017 OUTLOOK For personal use only Beacon Lighting • Company store comparative sales have made a positive start to the second half • Looking forward to advancing our market share in the retail lighting market • Celebrating the opening of the 100th Beacon Lighting store in North Lakes (QLD) •
Slide 29: H2 FY2017 Outlook Continued
5 H2 FY2017 OUTLOOK CONTINUED For personal use only • Opportunities for new Beacon Lighting stores at ex Masters store locations will continue to be investigated • Acquired Masson Manufacturing business to develop bespoke lighting products • Beacon International in the USA and Germany will generate
Slide 30: Questions
For personal use only 6 QUESTIONS