Shriro Holdings Ltd. · ASX:SHM
Shriro — FY2019 Earnings Presentation
15 slides from Shriro's earnings presentation, Feb 27, 2020
Slide 1: Investor Presentation: 2019 Annual Results
For personal use only SHRIRO HOLDINGS LTD (SHM) INVESTOR PRESENTATION 2019 Annual Results 27th of February 2020
Slide 2: 2019 Full Year Highlights
2019 Full Year Highlights For personal use only NPBT, $9.4M (down 1.1% on 2018) Underlying NPAT of $6.5M (down 5.8% on 2018) Strong balance sheet, zero debt, cash position of $6M (Net cash inflows of $12M for year end CY19) The anticipated downturn in the property development cycle, resulted in a 5%
Slide 3: Revenue Split
REVENUE SPLIT 2019 For personal use only AUSTRALIA NEW ZEALAND EXPORT MARKETS 74% 24% 2% * EXPORT TERRITORIES USA Benelux Canada UK Germany France Scandinavia Israel South Africa* *Appliances Only *New markets 3
Slide 4: Profit & Loss Statement
PROFIT & LOSS STATEMENT Year Ended 31st December 2019 For personal use only ! # Revenue was negatively impacted by a decline in the Appliances sales, (.)!( (/(!( #,!'3$ ! and export sales performed below expectations . *0!(3 *0!+3 Gross margin held up, despite currency headwinds " #+0!*$ #,)!)$ #,!-
Slide 5: Balance Sheet
BALANCE SHEET As at 31 December 2019 For personal use only )((+ )((* & & -!' (!+ Cash on hand of $6M, no debt. This is a $12M better position than the )-!) *)!0 *+!/ */!0 prior year, despite paying 7 cents per share dividends in CY19 (!0 *!/ -/!0 ..!' Debtors are lower at year end, as some sales wer
Slide 6: Cash Flows
CASH FLOWS Year Ended 31 December 2019 For personal use only Correction of inventory levels to the current sales run- "$ "# rate and the lower debtors balances resulted in Cash Flows from Operating Activities being significantly higher than the previous year and NPAT !"$ % !# !" Continued investment
Slide 7: Australian Market Breakdown
AUSTRALIAN MARKET Breakdown For personal use only Australian Group revenue down 5.1% on CY18, due mostly to lower appliances & cooling products categories Record GShock watch sales, driven by premium product and strong online retailer growth 40th Anniversary of Casio musical instruments, resulted in
Slide 8: Australian Market Breakdown Cont.
AUSTRALIAN MARKET Breakdown Cont. For personal use only Appliance sales revenue down 16% on CY18. As market headwinds remain, operating costs have been reduced to match market conditions New Omega Range, to be released 2nd quarter CY20 with a more contemporary, synchronised look and feel Increased i
Slide 9: New Zealand Market Breakdown
NEW ZEALAND MARKET Breakdown For personal use only New Zealand Group revenue +3.0%, margins up despite market competition, & currency devaluation Strong growth on the back of digital marketing in company owned Robinhood brand. Revenue up 20% on CY18 Continued G Shock watch growth of +8% on CY18. Auc
Slide 10: Export Markets Europe & Other
EXPORT - MARKETS EUROPE & OTHER Breakdown For personal use only Export revenue declined to $3.4m, this was as a result of a delay in establishing key retail partnerships, impact of tarrifs on product pricing and brand marketing execution. North American distributor was replaced with a subsidiary res
Slide 11: Export Market – North America Digital Market Strategy
EXPORT MARKET – NORTH AMERICA Digital Market Strategy For personal use only Utilise digital analytic tools to identify our key target markets Example of North American marketing strategy within key regions of North America to better focus our marketing efforts Website optimisation (SEO) – Increased
Slide 12: Export Markets – North America
EXPORT MARKETS- NORTH AMERICA “Developing strong foundations for future growth" SHRIRO USA For personal use only RETAILERS HPBA CHANNEL DISTRIBUTORS INDEPENDENT RETAILERS (APPROX. 300) END CONSUMER The creation of a subsidiary in California that is acting as a sales support office for direct retaile
Slide 13: New Product Development
NEW PRODUCT DEVELOPMENT Breakdown Cont. For personal use only Developed new product with innovation Widening product portfolio compliant for larger markets, such as USA to capitalise on Shriro’s developing distribution channels 1st sales are forecast to be 2nd half CY20 25MJ 15MJ AURA Fan Gas heatin
Slide 14: Innovation Roadmap
INNOVATION Roadmap For personal use only Focus on innovation to continue. However, 2020 will see some new product release consolidation. 14
Slide 15: Outlook
OUTLOOK For personal use only Lower more productive operating cost base now established. New company wide digital marketing/e-commerce infrastructure in place. Shriro is now well positioned to connect to global consumer base and supply more via the expanding e-commerce market BBQ business to benefit