Slide 1: FY2016 Results Presentation
For personal use only Beacon Lighting Group Limited FY2016 RESULTS PRESENTATION AUGUST 2016
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, DIVIDEND 4 GROWTH STRATEGIES 5 FY2017 OUTLOOK 6 QUESTIONS 3
Slide 4: Please Note
For personal use only PLEASE NOTE For the purposes of this presentation, please note the following: • FY2016 was for the underlying profit result for the 52 weeks ending 26 June 2016 as presented in the Annual Report 2016 • FY2015 was for the 52 weeks ending 28 June 2015 as presented in the Annual R
Slide 5: Results Overview
For personal use only 1 RESULTS OVERVIEW
Slide 6: FY2016 Highlights
1 FY2016 HIGHLIGHTS For personal use only • Record sales and profit result • Sales increased by $13.8m, 7.7% ahead of FY2015 • Gross profit dollar increase of $7.4m, 6.4% ahead of FY2015 • Opened 5 new company stores and purchased 2 franchise stores • Established Light Source Solution, the GE globe
Slide 7: Year-on-Year Result
1 YEAR-ON-YEAR RESULT For personal use only $ Inc / Dec % Inc / Dec #039;000 FY2015 FY2016 (1) on Last Year on Last Year Sales 179,386 193,179 13,793 7.7% Gross Profit 116,041 123,483 7,442 6.4% Gross Profit Margin 64.7% 63.9% Other Income 3,949 3,647 (302) (7.6%) % of Sales 2.2% 1.9% Operating Expense
Slide 8: Profit Reconciliation
1 PROFIT RECONCILIATION For personal use only During FY2016, the Beacon Lighting Group implemented a new inventory valuation system and conducted a review of the supply chain costs to be capitalised into inventory. The effect of this change in methodology was to increase inventory and gross profit b
Slide 9: Half-Year Split YOY
1 HALF-YEAR SPLIT YOY For personal use only $ Inc / Dec % Inc / Dec $ Inc / Dec % Inc / Dec #039;000 H1 FY2015 H1 FY2016 H2 FY2015 H2 FY2016 (1) on Last Year on Last Year on Last Year on Last Year Sales 90,829 98,514 7,685 8.5% 88,557 94,665 6,108 6.9% Gross Profit 58,247 64,934 6,687 11.5% 57,794 58,5
Slide 10: Trading Performance
For personal use only 2 TRADING PERFORMANCE
Slide 11: Sales
2 SALES For personal use only Sales: +7.7% to $193.2m • Record sales result in FY2016 • Sales increase in H1 +8.5% and H2 +6.9% • Strong sales growth in Trade, Commercial and Beacon International • Online sales increased by 20.3% over FY2015 Sales $m Sales Increase % 193.2 8.5% 179.4 7.7% 150.3 6.9%
Slide 12: Company Store Comparative Sales
2 COMPANY STORE COMPARATIVE SALES For personal use only Comparative Sales: +2.7% Increase • C omparative company store sales were solid in H1 FY16 but challenging in H2 FY16 • Comparative increase in FY2016 was 2.7%, for H1 FY16 was 5.1% and H2 FY16 was 0.1% • NSW was the best performing state Compa
Slide 13: Gross Profit
2 GROSS PROFIT For personal use only Gross Profit $: +6.4% Increase • Gross profit $ increased by 11.5% in H1 FY FY2016 and 1.3% in H2 FY2016 • Gross profit margin for FY2016 was 63.9%, for H1 FY2016 was 65.9% and H2 FY2016 was 61.8% • Margin mix is changing with the growth in Trade, Commercial and
Slide 14: Other Income
2 OTHER INCOME For personal use only Other Income: -7.6% to $3.6m • Core marketing and royalty income continues to decline as franchise stores are acquired and converted into company operated stores Other Income $m 5.5 5.4 4.6 3.9 3.6 FY2012 FY2013 FY2014(1) FY2015 FY2016 (1) FY2014 Other Income inc
Slide 15: Operating Expenses
2 OPERATING EXPENSES For personal use only Opex: Down 0.9% of Sales to $98.0m • Operating expenses decreased by 0.9% of sales compared to FY2015 • Significant expense productivity gains in General and Admin expenses #039;000 FY2015 % to Sales FY2016 % to Sales Opex% of Sales Sales 179,386 193,179 56.3%
Slide 16: Earnings
2 EARNINGS For personal use only EBITDA: +6.5% to $29.2m EBIT: +6.3% to $26.6m NPAT: +5.1% to $17.8m EPS: +5.0% to 8.27 cents EBITDA $m EBIT $m 29.2 26.6 27.4 25.0 20.1 18.1 15.9 16.6 14.0 14.5 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 EBITDA Margin EBIT Margin 13.2% 12.8% 13.4% 15.3% 15.1%
Slide 17: Cash Flow, Balance Sheet, Dividends
For personal use only 3 CASH FLOW, BALANCE SHEET, DIVIDENDS
Slide 18: Cash Flow
3 CASH FLOW For personal use only Capital Expenditure $5.6m #039;000 FY2015 FY2016 • New Stores Capex $2.0m Cash Flow from Operations • Other Store Capex. $1.3m Receipts from Customers 201,208 208,300 Payment to Suppliers & Employees (184,439) (187,688) • Information Tech. $1.0m Other (1,119) (1,068) •
Slide 19: Balance Sheet
3 BALANCE SHEET For personal use only #039;000 FY2015 FY2016 Debtors Cash 11,779 9,255 Receivables 7,017 9,188 • Franchise $3.0m Inventories 44,656 51,737 • Commercial $5.9m Other 997 970 Total Current Assets 64,449 71,150 Payables PPE 19,121 22,076 • Trade Creditors $6.6m Intangible 5,085 4,965 Other
Slide 20: Dividends
3 DIVIDENDS For personal use only • Paid 2.3 cents per share for H1 FY2016 • Declared a 2.4 cents per share for H2 FY2016 • Fully franked total of 4.7 cents per share for FY2016, an increase of 11.9% over FY2015 • Record date 2nd September 2016 • Payment date 30th September 2016 • Payout ratio in th
Slide 21: Growth Strategies
For personal use only 4 GROWTH STRATEGIES
Slide 22: 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 five new company stores at Bundall (QLD), Maribyrnong (VIC), Gungahlin (ACT), Fairfield Wates (QLD) and Preston (VIC). 96 91 85 11 79 74 1
Slide 23: Australian Store Network
4 AUSTRALIAN STORE NETWORK For personal use only Current Stores 96 Potential New Stores 50 s 1 Current Store Stores 0 Potential N ew s 23 NT Current Store Stores 12 Potential N ew s 13 Current Store Stores 3 Potential N ew QLD WA s 6 Current Store Stores 2 s 23 Potential New Current Store Stores 17
Slide 24: 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. • E xpanded the Alexandria (NSW) store • Major refurbishments at the Osborne Park (WA) and Southport (QLD) stores • Refurbish
Slide 25: 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 509 exclusive new products for our customers • Introduced the brass and copper trends to lighting in Australi
Slide 26: Online & Social Media
4 ONLINE & 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 20.3% over FY2015 • Major upgrade of the Beacon Lighting retail website to enable better customer experience • 169,000 VIP custo
Slide 27: Emerging Businesses
4 EMERGING BUSINESSES For personal use only Beacon Lighting will continue to grow our emerging businesses: Beacon International, Light Source Solutions and Beacon Solar. • Beacon International sales increased by 32.7% in FY2016 • Light Source Solutions (GE globes distribution) business is meeting ou
Slide 28: Acquisitions
4 ACQUISITIONS For personal use only Beacon Lighting intends to investigate and pursue local and international business opportunities that complement the core business activities. • Purchased the Essendon (VIC) and Watergardens (VIC) franchise stores and converted them to company stores • C ommenced
Slide 29: New Markets
4 NEW MARKETS For personal use only Beacon Lighting will continue to look for opportunities to leverage our existing capabilities into new markets. • Beacon International is now selling to customers in more than twenty different countries • E-Commerce provider Amazon Germany is a significant sales c
Slide 30: Efficiency Gains
4 EFFICIENCY GAINS For personal use only Beacon Lighting will continue to target expense efficiency gains and manage the growth of expenses. • Increased interstate 3PL distributions by 27.6% • C ontinued to work with all service providers to deliver further efficiency gains for the Group • C ontinue
Slide 31: FY2017 Outlook
For personal use only 5 FY2017 OUTLOOK
Slide 32: FY2017 Outlook
5 FY2017 OUTLOOK For personal use only Beacon Lighting • Company store comparative sales have made a positive start to the new year • The Jindalee (QLD) franchise store was purchased and converted into a company store in July 2016 • The Masson for Light (VIC) architectural lighting store was purchas
Slide 33: Questions
For personal use only 6 QUESTIONS