Slide 1: Investor Presentation: Joyce Corporation - Positioned for Growth
INVESTOR PRESENTATION JOYCE CORPORATION - POSITIONED FOR GROWTH August 2021
Slide 2: Disclaimer
DISCLAIMER Information contained in this presentation may involve forward looking statements, and No warranty or representation is expressed or implied or will be made as to the fairness, comments about the future including possible future performance estimates, estimated accuracy, completeness or c
Slide 3: Operating Results: Year Ended 30 June 2021
OPERATING RESULTS YEAR ENDED 30 JUNE 2021
Slide 4: Strong Year with record results
JOYCE CORPORATION Strong Year with record results MULTIPLE HIGHLIGHTS ACROSS THE GROUP Robust consumer demand and higher sales levels converted $111.2M $13.0M to strong earnings growth across all businesses in the Group. Revenue ↑ 30% Group NPAT* ↑ 386% Significant uplift in cash position, profit an
Slide 5: Results Overview: Increasing returns to shareholders
RESULTS OVERVIEW Increasing returns to shareholders Joyce Corporation FY21 Final FY21 Total FY20 Total Dividend (cents) 10.0 17.0 10.0 Record full year NPAT to JYC Shareholders - continuing dividend of 17 7,574 7,574 (1,107) operations ($’000) cents fully franked Dividends paid ($’000) 2,817 4,789 2
Slide 6: Results Overview: Key financial performance metrics
RESULTS OVERVIEW Key financial performance metrics MULTIPLE HIGHLIGHTS ACROSS THE BUSINESSES Ongoing trend of FY 21 FY 20 Variance Variance Joyce Corporation Consolidated Results revenue growth driven by ($’000) ($’000) ($) (%) strong consumer demand Revenue (from continuing operations) 111,224 85,7
Slide 7: Results Overview: Key financial position metrics
RESULTS OVERVIEW Key financial position metrics STRONG BALANCE SHEET PROVIDES Joyce Corporation Consolidated Results Jun 21 Jun 20 Variance Variance PLATFORM FOR GROWTH Closing Group Cash 19,881 10,643 Debt - (5,751) Increase in profitability - direct improvement in operating Net Cash/(Debt) 19,881
Slide 8: Flow of Economic Interest into Joyce Corporation
JOYCE CORPORATION Flow of Economic Interest into Joyce Corporation 51% Majority Interest in Net Profit attributable to JYC KWB Shareholders JOYCE CORPORATION (ASX: JYC) Net Cash $19.9M BEDSHED Franchise Fee Income at 30 Jun 2021 Franchise Operator Perth Property ~$5M BEDSHED 100% Ownership Franking
Slide 9: KWB Group
KWB GROUP CONSISTENT TRACK RECORD OF GROWTH IN AUSTRALIA’S HOME RENOVATION MARKET
Slide 10: KWB Group
KWB GROUP Kitchen Connection, Wallspan, Wardrobe Connection Leader in Australia’s home renovation market, focus on delivering outstanding kitchen and wardrobe solutions to customers looking to renovate their homes Target Do It For Me by delivering positive, seamless and hassle-free renovation and de
Slide 11: KWB Group Snapshot
KWB GROUP SNAPSHOT Strengthening the brand and growing the footprint 25 showrooms across Queensland, South Australia and New South Wales 14 4 Expansion into NSW in 2021 financial year: Tweed Heads July 2020 7 Tuggerah Lakes Oct 2020 Castle Hill Dec 2020 Artarmon May 2021 Strong trading across new st
Slide 12: KWB Group Results
KWB GROUP Revenue Growth ($ million) $100 $7.3 $89.7 RESULTS $14.9 $80 $67.5 $60 Record Revenue and Orders $40 $20 Record revenue of $89.7M $0 FY 20 FY 21 Revenue from FY 20 New showrooms FY 21** FY 21 Revenue (34% increase on FY 20 $67.5M) showrooms Segment Revenue $m (FY21 vs FY20) Revenue Growth%
Slide 13: KWB Group Results
KWB GROUP Segment EBIT $m (FY21 vs FY20) Segment EBIT Margin % (FY21 vs FY20) RESULTS $16.3M $11.3M 18% 17% Proven track record of growth in showroom network and Revenue and EBIT FY16-21 ($ million) revenue and profitability $90 Revenue EBIT $18 $80 $16 $70 $14 Record EBIT of $16.3M (45% $60 $12 Rev
Slide 14: KWB Business Model
KWB BUSINESS MODEL WHAT WE DO Targeting the middle market ‘Do It For Me’ renovations Close out Retail Leader in Australia’s home renovation market Oversee to Design installation Deliver positive, seamless and hassle- free renovation and design experiences – from inspiration to installation Manage De
Slide 15: Strong brand and reputation for excellence
KWB GROUP Strong brand and reputation for excellence All brands rate highly on independent review sites for the service and satisfaction provided to its customers Significantly outperform major peers (eg Freedom, Good Guys) All reviews from verified customers and actively seek positive and negative
Slide 16: Bedshed
BEDSHED AN ENDURING SUCCESS STORY IN BEDDING AND FURNISHINGS
Slide 17: Bedshed: Franchised and company owned stores
BEDSHED Franchised and company owned stores Well established Australian household name, delivering high quality bedroom furnishings for over 40 Years Strong brand and loyal customer base 37-store network predominantly run and owned by franchisees and including 32 franchisee stores Consistent perform
Slide 18: Bedshed: Positive trading momentum continues
BEDSHED Positive trading momentum continues 2 Established brand over 40 years with 37 stores across WA, Queensland, Victoria and ACT 12 9 Establishing NSW presence (after 2 COVID Interruption) 11 Established e-store in 2021 to sell and distribute on-line 10 Franchise operations Developing a pipeline
Slide 19: Bedshed Results
BEDSHED RESULTS 3 EBIT ($m) and EBIT Margin % FY18-21 - Franchisee EBIT Margin 60 Positive trading momentum 55 continues 2 EBIT ($m) Margin % 50 Consistent improvement in 1 performance across the 45 Bedshed network 0 40 FY18 FY19 FY20 FY21 Supply chain resilience supported increased sales Segment Re
Slide 20: Bedshed: Franchise model
BEDSHED Franchise model Successful Franchisee model with strong franchisee engagement and support of the business strategy. Strong relationship with 1 franchised store up for resale in 9 years Many franchise partners in network since 1980’s 20
Slide 21: Bedshed: Marketing
BEDSHED Marketing Launch of new brand campaign - authentic bedroom moments Positioning Bedshed as ‘whole of bedroom’ experts Continuing evolution of brand awareness and longevity of customer 21
Slide 22: Future Growth / Next Steps
PSOXCE FUTURE GROWTH | NEXT STEPS
Slide 23: Outlook for Organic Future Growth
OUTLOOK FOR ORGANIC FUTURE GROWTH KWB and Bedshed underpin revenue growth potential KWB Significant potential to expand footprint: • Near term Network Expansion in NSW • Longer term opportunities in untapped states, Victoria and WA Proven track record of growth in returns from operational and cost e
Slide 24: Outlook for Future Growth
OUTLOOK FOR FUTURE GROWTH Joyce Corporate Corporate strategy Our partnership approach Positioned for growth • Immediate focus on potential organic growth • Employ or partner exceptional management • Well established and consistently performing opportunities across KWB and Bedshed teams who are empow
Slide 25: Joyce Corporation: Who we are, vision and value propositions
JOYCE CORPORATION OUR VISION UNIQUE VALUE PROPOSITIONS Who we are and Mission Vision We seek to make a Working together is key to success meaningful positive difference to the lives of Shareholders Fast growing ASX-listed company our shareholders, partners, Track record of Total Shareholder Returns.
Slide 26: Corporate Directory
CORPORATE DIRECTORY Top 20 JYC Shareholders - 25 August 2021 Rank Name Units % Units 1 ADAMIC PTY LTD 7,711,568 27.38 2 UFBA PTY LTD 1,800,000 6.39 BOARD OF DIRECTORS 3 DANIEL SMETANA <THE D A SMETANA FAMILY A/C> 1,224,651 4.35 4 ONE MANAGED INVT FUNDS LTD <1 A/C> 1,000,000 3.55 Jeremy Kirkwood - No
Slide 27: References
REFERENCES This Announcement should be read in conjunction with the following documents lodged with the ASX on 31 August 2021 under the ASX ticker JYC: • Annual Report for the financial year ended 30 June 2021. • Appendix 4E • Dividend/Distribution • Financial Year 2021 Results -Investor Presentatio
Slide 28: Thank You
THANK YOU CONTACT : dmadden@joycecorp.com.au 08 9445 1055