Breville Group Limited · ASX:BRG
Breville — Macquarie Investor Conference 2021
25 slides from Breville's conference presentation, May 6, 2021
Slide 1: Macquarie Investor Conference 2021 - Presentation (ASX cover letter)
6 May 2021 For personal use only Manager, Company Announcements, Australian Securities Exchange Limited, Level 4, 20 Bridge Street, Sydney NSW 2000 MACQUARIE INVESTOR CONFERENCE 2021 - PRESENTATION Attached is a copy of the Breville Group Limited’s presentation at the Macquarie Investor Conference 2
Slide 2: Breville Group Limited Macquarie Investor Conference Presentation
Breville Group For personal use only Limited (BRG) Macquarie Investor Conference Presentation 6th May 2021
Slide 3: Disclaimer
For personal use only Disclaimer To the extent this Presentation contains any forward-looking statements, such statements are not guarantees of future performance and involve known and unknown risks and uncertainties and other factors, many of which are beyond the control of Breville, its Directors
Slide 4: For personal use only
For personal use only • Breville Fundamentals • Solution Migration • COVID Interlude • Outlook Confirmation 3
Slide 5: Breville|Sage Vision Statement
For personal use only Breville|Sage Vision Statement 4
Slide 6: Large, Untapped Revenue Opportunity
Large, Untapped Revenue Opportunity Morgan Stanley Research Report, July 13 2020 For personal use only • One of the few, truly global Australian companies • At ~A$1B in revenue, have a long way to go • Assuming large, untapped opportunity, focus reverts to team’s ability to execute 5
Slide 7: Reinforcing Loop of Innovation Driven Growth
For personal use only Reinforcing Loop of Innovation Driven Growth Increase Investment GTM Accelerate Revenue Inorganic NPD R Increase Investment Increase Revenue Geography Increase Geographic Footprint Accelerate Revenue Marketing & NPD Efficiency 6
Slide 8: Investing Behind Organic Growth Drivers
Investing Behind Organic Growth Drivers Marketing and R&D Expenditure For personal use only 180 12.0% 11.0% 10.5% 10.2% 160 9.5% 10.0% 140 8.5% 8.0% 120 8.0% 97.3 100 83.3 6.0% 80 68.7 57.6 60 49 4.0% 42.2 40 2.0% 20 0 0.0% * FY15 FY16 FY17 FY18 FY19 FY20 AUDm % Revenue As an innovation-driven compa
Slide 9: Continuous Cadence of Geographic Rollout
For personal use only Continuous Cadence of Geographic Rollout FY16-17 Apr 2018 Apr 2019 Sep 2019 Apr 2020 Apr 2021 • Nordics • Germany • BeNeLux • Spain • France • Italy • Baltics • Austria • Switzerland • Turkey • Middle East • Portugal • Eastern Europe • Mexico 8
Slide 10: Using Inorganic Lever to Accelerate Flywheel
For personal use only Using Inorganic Lever to Accelerate Flywheel 9
Slide 11: Rolling Out Corporate Platform Designed to Scale
Rolling Out Corporate Platform Designed to Scale Business Intelligence / Analytics For personal use only Solutions S&OP Websites CRM Middleware ERP DAM PIM • Common, global, cloud-based instance • Reduces cost of change (new country) and shortens time-to-market for new global capabilities • Designed
Slide 12: Reinforcing Loop of Innovation Driven Growth
For personal use only Reinforcing Loop of Innovation Driven Growth GTM Inorganic NPD R Geography Corporate Platform 11
Slide 13: Team Capable of Executing Against Opportunity
For personal use only Team Capable of Executing Against Opportunity Nike, Ralph Lauren, Sony, Bose, Dyson, David Jones, Electrolux, Toshiba Diageo M&M Mars, Dyson, Toshiba Compaq/HP, Cisco/Linksys Belkin Premium Product Development IBM Bosch Ascential (consumer) Deep SDA Expertise Novell Aspect Symp
Slide 14: Results to Date on Track
Results to Date on Track BRG Yr/Yr EBIT Growth Rate For personal use only ~20% 20.0% 16.2% 15.0% 12.0% 10.0% 10.0% 7.2% 5.9% 5.0% 0.0% FY16 FY17 FY18 FY19 FY20 FY21F * * Estimate based on current EBIT guidance of $136M for FY21. 13
Slide 15: Strategy Driving Geographic Diversification
Strategy Driving Geographic Diversification 1HFY17 Global Product Segment Net Sales 1HFY21 Global Product Segment Net Sales Total: A$ 265M Total: A$ 593M For personal use only 22% 26% Global Product Segment 60% 4 Year CAGR*: 21% 14% 54% 24% EMEA APAC Americas 4 Year CAGR* 39% 18% 18% EMEA + APAC is
Slide 16: For personal use only
For personal use only • Breville Fundamentals • Solution Migration • COVID Interlude • Outlook Confirmation 15
Slide 17: Migrating Up the Product Value Curve
For personal use only Migrating Up the Product Value Curve 16
Slide 18: Joule Oven Air Fryer Pro Ecosystem
Joule Oven Air Fryer Pro Ecosystem For personal use only Product Content 15% Content Platform Standards-based IoT Platform • Chefs • 1,000,000 users of Chefsteps.com (user generated content) • Breville Smart Oven Air Customers 17
Slide 19: End-to-End Coffee Solution
End-to-End Coffee Solution Ecosystem For personal use only Products Content/Service Content Platform Coffee Marketplace Dropship / Subscription Services ERP • Specialty Coffee Roasters • Specialty Coffee Cafes 18 18
Slide 20: For personal use only
For personal use only • Breville Fundamentals • Solution Migration • COVID Interlude • Outlook Confirmation 19
Slide 21: Demand Line Characteristics
Demand Line Characteristics • Breville has been a net beneficiary of the work-from-home environment. For personal use only • Consumers have been trading up (premiumisation). • Consumers are adjusting to the retail environment as they find it (lockdown, open). Mix across retailers in flux as stores o
Slide 22: Supply Characteristics
Supply Characteristics • 2H20 and 1H21 was a chasing game, with sell out outstripping planned sell in. For personal use only • 2H21 has created the opportunity to catch the demand curve. Next step is re-pipelining the supply chain and staying in front of demand. • Forward planning has enabled us to
Slide 23: Tactics For Managing Through COVID Interlude
Tactics For Managing Through COVID Interlude • Accept that demand line is unpredictable—react quickly once it reveals itself. For personal use only • Supply chain is challenged—pull early to get out of the way, and plan over longer horizons to avoid problems. • Provide retail partners with as much t
Slide 24: For personal use only
For personal use only • Breville Fundamentals • Solution Migration • COVID Interlude • Outlook Confirmation 23
Slide 25: Reconfirming FY21 Guidance
For personal use only Reconfirming FY21 Guidance • Assuming no significant change in economic conditions in the Group’s major trading markets, given the H1 21 performance, we expect EBIT for the full year of FY21 to be approximately $136M. • Over the 2H, we expect continued investment in marketing,