Collins Foods Limited · ASX:CKF
Collins Foods — Investor Day (October 2018)
22 slides from Collins Foods's investor day presentation, Oct 4, 2018
Slide 1: Collins Foods Limited Investor Day
COLLINS For personal use only FOODS LIMITED INVESTOR DAY 4 October 2018 ACN 151 420 781
Slide 2: Collins Foods' management team
Collins Foods’ management team For personal use only Graham Maxwell Mark van ‘t Loo Managing Director & Chief Executive Officer Collins Foods Europe – Chief Executive Officer Joined Collins Foods: 2013 Joined Collins Foods: 2017 Nigel Williams Drew O’Malley Group Chief Financial Officer Chief Operat
Slide 3: Collins Foods' 50 year growth story
Collins Foods’ 50 year growth story NETHERLANDS GERMANY For personal use only JAPAN CHINA THAILAND AUSTRALIA 1968 1969 1979 1985 1992 2005 2011 Collins Foods Collins Foods Collins Foods Collins Foods opens its Collins Foods Management and 4th Aug 2011 – Collins obtains KFC opens its first KFC introd
Slide 4: Delivered consistent and significant growth over past years
Delivered consistent and significant growth over past 5 years For personal use only Collins Foods owned restaurants Revenue 770.9 271 229 633.6 574.3 571.6 199 197 193 AUD$ MILLION RESTAURANT 425.1 423.9 149 NUMBERS FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 Underlying EBITDA Underl
Slide 5: Strong cash flow supporting strategic growth
Strong cash flow supporting strategic growth For personal use only ► Operating cash flow has increased 80% in 5 years ► Net leverage ratio (NLR) well within covenant maximum of 2.75 ► Capital spend reflects growth in restaurant base ► Lease adjusted interest cover ratio of 2.73 as at end FY18 (coven
Slide 6: KFC Australia
For personal use only KFC Australia Page 5
Slide 7: KFC Australia has built a national footprint
KFC Australia has built a national footprint 5 For personal use only ► Collins Foods now accounts for over 35% of Yum! KFC national presence Restaurant numbers 227 222 ► During the last 5 years, Collins Foods has acquired 83 195 restaurants in 3 separate deals: 177 171 167 122 ○ 42 restaurants in WA
Slide 8: KFC Australia has delivered consistently strong revenue and EBITDA growth
KFC Australia has delivered consistently strong revenue and EBITDA growth For personal use only ► KFC Australia revenue has grown by 96% over 5 years ► KFC Australia EBITDA has grown by 122% over 5 years ► This revenue growth has been generated by: ► Disciplined focus on efficiency and productivity
Slide 9: KFC Australia has substantial opportunities for growth
KFC Australia has substantial opportunities for growth For personal use only SALES / DELIVERY / DEVELOPMENT MARGIN DIGITAL / ACQUISITION ► Ongoing focus on innovative products underpinned by a ► Currently operating with ► Targeting to build 40 to 45 strong value proposition delivery in 32 restaurant
Slide 10: KFC Europe
For personal use only KFC Europe Page 9
Slide 11: KFC Europe presents a significant avenue for growth
KFC Europe presents a significant avenue for growth For personal use only ► QSR industry well established in Europe ► Penetration of KFC restaurants to other major QSR players much lower in Netherlands and Germany compared to Australia (illustrated below) NETHERLANDS ► KFC Europe restaurants acquire
Slide 12: KFC has a stronger market presence in the Netherlands than Germany
KFC has a stronger market presence in the Netherlands than Germany For personal use only KFC Netherlands ► Good market presence with growing brand awareness Rijswijk, ► Strong sales and transaction growth NED ► EBITDA margin in the high teens ► Good development opportunity KFC Germany ► Brand is sti
Slide 13: KFC Europe has significant growth opportunities
KFC Europe has significant growth opportunities For personal use only SALES / MARGIN / DEVELOPMENT OPERATIONS BACK OFFICE / ACQUISITION ► Drive a strong value ► Tighter management of ► Expect to build 6 new proposition within the brand margins restaurants this financial year (particularly in Germany
Slide 14: Taco Bell
For personal use only Taco Bell Page 13
Slide 15: Taco Bell offers potential growth avenue in Australia
Taco Bell offers potential growth avenue in Australia For personal use only ► Significant growth within the Mexican category ► Opportunity for a QSR brand in a ‘fast casual’ dominated segment ► Convenience of drive through with QSR+ dining experience ► QSR pricing while delivering fast casual produc
Slide 16: Collins Foods successfully launches Taco Bell in Australia
Collins Foods successfully launches Taco Bell in Australia For personal use only Page 15
Slide 17: Collins Foods to build Taco Bell restaurants over the next 3 years
Collins Foods to build 50 Taco Bell restaurants over the next 3 years For personal use only ► First Taco Bell opened in November 2017 in Annerley, Brisbane ► Further 3 new restaurants expected to open before end of calendar year – Robina, Cleveland and North Lakes ► Entered into a development agreem
Slide 18: People and culture
For personal use only People and culture Page 17
Slide 19: Our people are the key to our success
Our people are the key to our success For personal use only A business with heart underpinned by a culture that genuinely cares We are driven by our passion to make a real difference in young people’s lives… we take our role very seriously and do this by enabling them to: KFC 3 brands with over 13,5
Slide 20: Growth agenda
Growth agenda For personal use only KFC AUSTRALIA KFC EUROPE TACO BELL AUSTRALIA Broaden home delivery network Enhanced value proposition and Establish and build the Taco Bell brand greater brand awareness in Europe in Australia Expansion of digital platform Elevate operational excellence
Slide 21: Questions
For personal use only Questions Page 20
Slide 22: Disclaimer
Disclaimer For personal use only ► This presentation contains forward looking statements which may be subject to significant uncertainties beyond CKF’s control. ► No representation is made as to the accuracy or reliability of forward looking statements or the assumptions on which they are based. ► C