Yowie Group Ltd. · ASX:YOW
Yowie — Investor Presentation (September 2017)
30 slides from Yowie's investor presentation, September 2017
Slide 1: Investor Presentation September 2017
Investor Presentation September 2017 1 © Yowie
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Yowie Group Limited (ASX: YOW) (“Yowie” or the “Company”) in order to provide a high level overview of the Company. This presentation should not be considered as an offer or invitation to subscribe f or or purchase any shares in Yowie or as an induce
Slide 3: Contents
Contents 1. Yowie Overview 2. Investment Highlights 3. 2017 Performance 4. Business Model & Growth Strategy 5. Marketing and Social Media 6. Financial Review 7. Corporate Profiles 33 © Yowie
Slide 4: What is Yowie?
What is Yowie? Confectionery • Collectables • Yowie World Yowie Group Ltd is a global brand licensing company specialising in the development of consumer products designed to promote learning and increase both understanding and engaging with the natural world through the adventures and exploits of s
Slide 5: Save the Natural World
Confection with a cause ‘Save the Natural World’ Yowie confectionery was created to carry this message to educate children. 5 © Yowie
Slide 6: Investment highlights
Investment highlights Fastest growing Novelty Brand in the U.S. with significant category margins No.1 novelty item in the chocolate category in stores that carry Yowie On trend Mission supporting conservation and environment Highest quality collectable series in the category Play and learn digital
Slide 7: Highlights 2017
Highlights 2017 Net sales increased 51% to $19.5M Gross margin expansion of 300 basis points to 55% EBITDA loss excluding share based payments in 2017 narrowed to $3.38M from $4.07M in 2016 Increased distribution in Grocery and Convenience where ACV increased from 7.4% on a 52 week basis to 10.5% on
Slide 8: Category Leading Growth in U.S. Market
Category Leading Growth in U.S. Market Source: Nielsen Total US xAOC + Convenience 7/1/2017 8 © Yowie
Slide 9: 2017 Net Cashflow
2017 Net Cashflow Cashflow from: US$ Operating activities ($19.2M Receipts from customers (5,071,941) less $24.2M payments to suppliers and employees) Investing activities ($537K PPE and $538K Intangibles – (1,083,205) Series & Other IP Development) Financing activities ($780K Stock option exercises
Slide 10: Cash Reserves
Cash Reserves Consolidated 2017 2016 US$ US$ Cash at bank 26,108,980 9,963,309 Short-term deposits 768,600 21,729,956 26,877,580 31,693,265 10 © Yowie
Slide 11: 2018 Key Objectives
2018 Key Objectives 1) Revitalise US sales growth through launch of Series 3 and Discovery World into expanded Tier 1 retail footprint 2) Expand distribution in Australia and launch into Canada market. Develop UK via test market 3) Outlook: Revenue growth of 55% to 70% over 2017 4) Generate positive
Slide 12: Net Sales Growth '15 to '18
Net Sales Growth '15 to '18 35 $33M 30 25 $ MILLION 20 15 $30M 10 $19.5M $12.8M 5 $2M 0 2015 2016 2017 2018 NET SALES GROWTH 13 © Yowie
Slide 13: Financials Overview 2018
Financials Overview 2018 Net sales growth 55% to 70%, Q1 flat due to series launch timing Maintain strong gross margin above 50% Generate positive EBITDA x share based comp Generate positive after tax profits in Q4 Strong working capital position 13 12 © Yowie
Slide 14: Growth Strategy
Growth Strategy SALES MARKETING PEOPLE SUPPLY DIGITAL Channel Trial, test & Acquire and Ensure a Create expansion – learn strategy develop talent reliable and new revenue U.S market (as per sales) • efficient streams in • • Enhance supply chain new Increased Build innovation • categories customer in
Slide 15: Continued rapid growth in U.S. Retail Market
Continued rapid growth in U.S. Retail Market In just three years: 3 Tier-one national retail accounts 40,000+ Stores Sales across 50 current active account/account groups Four-person US based retail sales team is in place 15 © Yowie
Slide 16: Social media strategy: Investment
Social media strategy: Investment $2M+ digital marketing ongoing investment through Yowieworld.com, including FREE Yowie App Includes $1.5M+ in advertising support with kids making Yowie ads for kids Engage In-Store promotional opportunities with annual Eco C Affiliate with local zoos, aquariums and
Slide 17: Social media strategy: Results
Social media strategy: Results Yowie’s social media marketing strategy has paid dividends already. The Yowie World website has hit a new milestone with over 221K unique visitors since it launched, including 31K in August alone; The Yowie app has more than 10,000 downloads since launch; On Instagram,
Slide 18: Marketing Campaign Series 3
Marketing Campaign Series 3 1.4 Million Dollar Investment on Ad Spend 1 Million Dollar - 7 Webisodes of the Yowie Story made by Icon Films - Spring 2018 120 Second Hero Mini-film using VR - Week of Oct 1st - Target 20 Million Impressions, FB, IG, YT, TW 30 Second Commercial Video shot in 20 location
Slide 19: Marketing Campaign Series 3
Marketing Campaign Series 3 500K - 6 Book Series December 2017 250K - Investment in Influencer Campaign 200K - Investment in Yowie CollectorApp with QR Code Release 100K - Investment in DIY Videos for Capsules TOTAL: Over 3.5 Million Marketing campaign - Total Impressions, over 110 Million! 19 © Yow
Slide 20: Marketing Campaign Series 3
Marketing Campaign Series 3 Series 3 - Rescue Series, Fall 2017 26 To Collect! YOWIE Includes 9 Yowie Adversary Characters! Adversaries New Crystal Collection Poster with Rarity Scale Yowie World Collector App - Yowie and Species come to life on your mobile device and connects you to a network of co
Slide 21: Series 3 Critically Endangered Species
Series 3 Critically Endangered Species 21 © Yowie
Slide 22: Series 3 Critically Endangered Species
Series 3 Critically Endangered Species 22 © Yowie
Slide 23: Australia expansion on track
Australia expansion on track 23 © Yowie
Slide 24: Free downloadable poster
Free downloadable poster 24 24 © Yowie
Slide 25: Competitive products growing in number
Competitive products growing in number 25 © Yowie
Slide 26: Competitive products growing in number
Competitive products growing in number 26 © Yowie
Slide 27: Yowie animation & film development
Yowie animation & film development Yowie reaches a strategic five year animation agreement with the Bruce Davey - Mel Gibson-backed Icon Animation group in the US to broaden the market appeal of the Yowie story. Icon will produce seven, three to six minute duration webisodes for release at Easter 20
Slide 28: Historical financial performance
Historical financial performance 2017 2016 2015 2014 2013 Revenue (US$) 19,896,944 13,062,662 2,376,983 119,409 43,186 Net Loss (US$) (7,297,601) (7,397,939) (2,791,076) (5,913,790) (2,420,900) Closing Share Price (A$) 0.31 0.93 0.98 0.56 0.165 Number of Shares 214,055,365 206,372,375 139,230,199 11
Slide 29: Management Team
Management Team Non-Executive Director: Trevor Allen Executive Director: Patricia Fields Global Chief Executive Officer: Bert Alfonso President/Chief Operating Officer/General Manager YNA: Mark Schuessler Chief Marketing Officer: Cove Overley VP, Global Supply Chain Operations: Leo Valle 29 29 © Yow
Slide 30: © Yowie
© Yowie