Breville Group Limited · ASX:BRG
Breville — Investor Presentation (August 2023)
36 slides from Breville's investor presentation, Aug 21, 2023
Slide 1: Full Year Results Investor Presentation – ASX cover letter
21 August 2023 ASX Market Announcements Office Australian Securities Exchange 20 Bridge Street Sydney NSW 2000 Full Year Results Investor Presentation – Year Ended 30 June 2023 Attached is a copy of the Breville Group Limited Full Year Results Investor Presentation for the year ended 30 June 2023. T
Slide 2: Full Year Results FY23 Investor Presentation
Breville Group Limited (ASX : BRG) FULL YEAR RESULTS FY23 Investor Presentation 21st August 2023
Slide 3: Disclaimer
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 and management, and in
Slide 4: Acknowledgement of Country
Acknowledgement of Country We would like to acknowledge the traditional custodians on whose land we meet today. We would like to pay respect to their Elders: past and present; and further extend that respect to all Aboriginal and Torres Straight Islanders present here today. We celebrate the continu
Slide 5: Solid year at top end of guidance
Group Summary Result Solid year at top end of guidance AUDm FY23 FY22 % Chng Commentary Revenue 1,478.6 1,418.4 4.2% • Solid revenue growth against a subdued consumer backdrop and strong prior year Gross Profit 516.9 485.9 6.4% • 2H23 revenue growth stepped up to 9.4% led by Gross margin (%) 35.0% 3
Slide 6: Segmental Results
Segmental Results Revenue Gross Profit Gross Margin (%) AUDm FY23 FY22 % Chng FY23 FY22 % Chng FY23 FY22 Global Product 1,279.2 1,178.5 8.5% 470.5 428.7 9.8% 36.8% 36.4% % Change CC* 4.1% Distribution 199.3 239.9 (16.9)% 46.4 57.2 (18.9)% 23.3% 23.8% TOTAL 1,478.6 1,418.4 4.2% 516.9 485.9 6.4% 35.0%
Slide 7: Global Product Segment by Theatre
Global Product Segment by Theatre GLOBAL PRODUCT SEGMENT REVENUE AUDm FY23 FY22 % Chng % Chng CC* Americas 701.2 605.0 15.9% 7.0% APAC 292.2 278.4 5.0% 4.3% EMEA 285.8 295.2 (3.2)% (3.1)% TOTAL 1,279.2 1,178.6 8.5% 4.1% *Cc: constant currency Commentary • All Theatres delivered positive sell-out uni
Slide 8: Global Product Segment by Theatre (cont’d)
Global Product Segment by Theatre (cont’d) GLOBAL PRODUCT SEGMENT REVENUE AUDm FY23 FY22 % Chng % Chng CC* Americas 701.2 605.0 15.9% 7.0% APAC 292.2 278.4 5.0% 4.3% EMEA 285.8 295.2 (3.2)% (3.1)% TOTAL 1,279.2 1,178.6 8.5% 4.1% *Cc: constant currency APAC • Positive unit sell-out growth in both hal
Slide 9: Opex Well Controlled and Aligned to Sales Trajectory
Opex Well Controlled and Aligned to A$m Sales Trajectory 11.6% EBIT % 11.0% -24.5 -6.5 172.0 156.4 31.0 15.6 EBIT Increase • $17.8m increase in • Key marketing projects investment functions largely completed in FY22 10% • $6.7m increase in other • Consumer facing activity functions including new mai
Slide 10: Inventory has peaked, now trending down to normalised level
Inventory has peaked, now trending down to A$m normalised level 445.9 439.6 Commentary 15.0 -96.6 41.2 • Like-for-like core inventory reduced by 349.3 34.1 22% or $96.6m in FY23 • Commercial decision made to normalise inventory through constraining GM purchases, not discounting; GM% GM improved 34.3
Slide 11: Financial Position at June
Financial Position at 30 June AUDm1 June 23 June 22 Commentary Inventory 439.6 445.9 • Working capital increase driven by receivables and payables Receivables – Receivables increased $82.6m, after strong Q4 sales, with days 276.8 194.2 outstanding consistent with prior period Trade and other payable
Slide 12: FY23: Netting Headwinds and Tailwinds
FY23: Netting Headwinds and Tailwinds Headwinds Tailwinds Net • Macro environment (inflation, Ukraine) • Macro environment (full employment) • Retailer destocking • Coffee & Cooking categories +4.2% Revenue • BBB bankruptcy • Unit sellout positive in all 3 Theatres • Distribution: Nespresso • New pr
Slide 13: FY24 Landscape as of August 21st 2023
FY24 Landscape as of August 21st 2023 Headwinds Tailwinds • Strong employment globally • Macro Forces: inflation, increasing interest rates, cost-of-living pressures • Strong NPD year with Launch v2.0 • On-going Ukraine war, impact on Europe VS • New geographies 1 year older (bigger) and increasing
Slide 14: Key Points FY23
Key Points FY23 • Sector leading sales growth and well controlled result, with healthy EBIT growth against a subdued consumer backdrop and strong denominator • Strength in geographic diversity with growth returning to EMEA in 2H23 • BBB exit and Lelit acquisition offsetting each other • Healthy gros
Slide 15: Reinforcing Growth Vectors
Reinforcing Growth Vectors Forward Integrating into Solutions Geographic Expansion Investment into R&D, Marketing, and Technology Services Unified, Global SaaS Platform 14
Slide 16: Mexico Manufacturing Facility is Live
Mexico Manufacturing Facility is Live Barista Express® • Barista Express® now manufactured in Mexico (120v) and China (120v/240v) • Shorter, more responsive supply chain for Americas with increased capacity • Product “Assembled in Mexico” is not burdened with Trump Tariff 15
Slide 17: Extending Baratza’s Beautiful Brown Box
Extending Baratza’s “Beautiful Brown Box” Initiative to Breville|Sage Breville|Sage is redesigning its packaging across the entire range to maximise the use of recyclable materials. 16
Slide 18: New Colour Range
New Colour Range 17
Slide 19: the Barista Touch Impress
the Barista Touch™ Impress * * AFR, Life & Leisure, John Davidson, March 16, 2023 18
Slide 20: the Vertuo Creatista
the Vertuo Creatista® Yea ay Ae Pe P's Vu BARATZA’ [fChefSteps beanz.com
Slide 21: Cook twice as fast with Joule Turbo
the Joule® Turbo Sous Vide Cook twice as fast with Joule® Turbo 20
Slide 22: Reinforcing Growth Vectors
Reinforcing Growth Vectors Forward Integrating into Solutions Geographic Expansion Investment into R&D, Marketing, and Technology Services Unified, Global SaaS Platform 21
Slide 23: Introducing Breville
INTRODUCING Breville CLASSES, RECIPES, AND COOK GUIDES, EXPERTLY TAILORED FOR YOUR BREVILLE APPLIANCE. “) r 1g = 3 lm “4 Co 1" PSN Carolina Géiden Pulled d ra + Ultimate Air-Friéd’Steak Pork \md ef Wellington PM ndiine the 3 L ¢ Joule Oveg Air Pp EE Fryer 4 | . “tattice : ‘tm man oe > patterned past
Slide 24: Breville
Breville + Fc00s Guided Recipes My Cook Guides Thive & On-demand rested & tuned 223 > a) BRGGROUP | Breville Soge ULELIT BARATZA’ fichetsteps beanz:.com
Slide 25: Joule Oven Air Fryer Pro Smart Oven
Joule® Oven Air Fryer Pro Smart Oven® Air Fryer Pro Smart Oven® Air Fryer Smart Oven® Pro BPZ820 Smart Oven® Pizzaiolo Joule Turbo Sous Vide 24
Slide 26: Reinforcing Growth Vectors
Reinforcing Growth Vectors Forward Integrating into Solutions Geographic Expansion Investment into R&D, Marketing, and Technology Services Unified, Global SaaS Platform 25
Slide 27: Transactional Automation
Transactional Automation Despite … • Order count increasing ~300%; • Expanding from a 5-country model to a 22-country model; and, • Executing 4 acquisitions, with 100% manual transactions We have migrated automated orders from 32% of all orders to 85%. It’s worth noting that we even know the answer
Slide 28: Multi-Brand B2B Portal: Long Tail Automation
Multi-Brand B2B Portal: Long Tail Automation 27
Slide 29: Digital Infrastructure: Reusable Components
Digital Infrastructure: Reusable Components 28
Slide 30: Entering a New Country: South Korea
Entering a New Country: South Korea 29
Slide 31: Lelit as at Acquisition
Lelit as at Acquisition • Dealer-based channel model, manual orders • Single warehouse in Italy • “Direct” in the EU • Distributor-based Dealer model for all markets outside of EU Italian-based manufacturer filling global orders 30
Slide 32: Lelit Today
Lelit Today • Direct in EU, US, and AU with 4 warehouse locations; Premium mass channel in 1H24 • Transitioning to multi-brand portal to automate Dealer orders • Lelit transacted on the Global Platform 4 months after transaction close • New transacting website launching in the US this month (Aug ’23
Slide 33: Platform Takeaways
Platform Takeaways • First and foremost—Speed – The productization and standardization of the platform means we can enter new countries and assimilate acquisitions without slowing down – The componentisation of our web infrastructure enables us to stand up new sites quickly with proven underlying co
Slide 34: Reinforcing Growth Vectors
Reinforcing Growth Vectors Forward Integrating into Solutions Geographic Expansion Investment into R&D, Marketing, and Technology Services Unified, Global SaaS Platform 33
Slide 35: Geographic/Channel Expansion
Geographic/Channel Expansion • Target (US) • Europe Direct • US Direct • B2B Portal (US) • Australia Direct • Australia Direct • Indonesia Distributor • US, EU, AU limited range • US, EU, AU limited range • China Specialty Coffee “Premium Mass” “Premium Mass” Distributor 34
Slide 36: Full Year Results FY23
Breville Group Limited (ASX : BRG) FULL YEAR RESULTS FY23 Investor Presentation 21st August 2023