Oliver's Real Food Ltd. · ASX:OLI
Oliver's Real Food — FY2017 Earnings Presentation
30 slides from Oliver's Real Food's earnings presentation, Sep 21, 2017
Slide 1: For personal use only
For personal use only
Slide 2: Important notice and disclaimer
Important notice and disclaimer This investor presentation ("Presentation") has been prepared by Oliver's Real Food Limited ABN 33 166 495 442 ("OLI") Summary information: This Presentation contains summary information about OLI and its related bodies corporate and their activities, which is current
Slide 3: Contents
Full Year Review Franchise Buy Back Financial Overview Trading Performance Sales Balance Sheet and Cash Flow FY2018 Forecast New Store Roll Out Sale and Lease Back Technology Online Marketplace Red Dragon and Supply Chain Community Board of Directors “Would you LIKE BEANS» with that?” oliver's 4 a —
Slide 4: Three new stores
THREE | NEW STORES CHINDERAH NSW. : fay PARK NSW 4 BALLARAT VIC Fe
Slide 5: Full Year Review
During the financial year, the Company t > Successfully raised $15m via an IPO in June 2017 + Opened 3 new corporate stores - Chinderah, Ferry Park and Ballarat; + Bought back 7 franchised stores Coffs Harbour, Eastlink Inbound, Hexham, Wyong Northbound, Goulburn, Wyong Southbound and Wallan Northbo
Slide 6: Subsequent to the FY2017 reporting period
Subsequent to the FY2017 reporting period + On7 July, the Company acquired the remaining 25% equity interest in Red Dragon Organics, of which the Company already held 75% equity interest + OniSeptember 2017, the Company acquired the land and buildings as well as the business located at Maryborough i
Slide 7: Franchise Buybacks
In FY2017 we set out to bring some of our most successful franchised stores back into the corporate business. By June 30th we had purchased 7 out of the 8 Franchised stores from franchisee's. These included, > Wyong Northbound NSW, Wyong Southbound NSW, Hexham NSW, Coffs Harbour NSW, Goulburn NSW, W
Slide 8: Financial Overview
Financial Overview Year ended Year ended Variance 30-Jun-17 30-Jun-16 cc $'000s Actual Actual Actual Revenue from ordinary activities 20,749 17,126 21.2% Gross Profit 13,944 10,494 32.9% Gross Margin 67.2% 61.3% 5.9% Other income 398 2774 (85.7%) Operating Expenses (16,625) (11,517) 44.4% EBITDA* (2
Slide 9: Trading Performance Sales
Trading Performance Sales Group Sales Store Numbers $25.0 25 $20.7 $171 ia FY2015 FY2016 FY2017 FY2015 FY2016 FY2017 + Group sales up by 21.2% in FY2017 > Group sales up by 63.5% from FY2015 to FY2017 while store numbers increased from 12 to 20 for the same period + Comparable sales growth in FY2017
Slide 10: Balance Sheet
Balance Sheet $'000s 2017 Cash and cash equivalent 6.344 Receivables 1,426 Inventories 1,341 Total current assets 9,111 Property, plant & equipment 10,737 Intangible assets 6,677 Deferred tax assets 572 Other non-current assets 428 Total assets 27,525 Payables 2,542 Borrowings 253 Provisions 235 Tot
Slide 11: Cash Flow
Cash Flow $'000s 2017 2016 Cash used in operating activities (2,145) (1,060) Net Finance costs (413) (269) Tax paid (7) (49) Net cash used in operating activities (2,635) (1,378) Property, plant & equipment (4,065) 2,510 Business (8,107) (659) Net cash used in / from investing activities (12,172) 1,
Slide 12: Strongly Positioned to Achieve FY2018 Forecast
Strongly Positioned to Achieve FY2018 Forecast + The Board confirms the FY2018 Forecast in the Prospectus > Sales: $41.9m + EBITDA: $4.8m + NPAT: $2.4m + Year-to-date performance (2 months to August 2017) + Same stores' sales growth: 6.3% (ahead of forecast) + Gross margin: 74.9% (ahead of forecast)
Slide 13: FY2018 Forecast Stores
—— Brisbane FY2018 FORECAST 33 STORES 1. WYONG NTH - AUG 2005 2. WYONG STH - APR 2006 3. HEXHAM - APR 2009 4, OFFICER OUT - DEC 2013 5. OFFICER IN - JAN 2014 6. EASTLINK OUT - MAR 2014 7. GEELONG STH - JUN 2014 8, GEELONG NTH - JUL 2014, 9. WALLAN NTH - DEC 2014 10. WALLAN STH - DEC 2014 TI. EASTLIN
Slide 14: Chinderah NSW
FEED YOUR GOOD Ste oe no _ (6) CHINDERAH NSW | OPEN 21 DEC 2016 FY2017 Sales since opening: $0.8m, in line with forecast
Slide 15: Ferry Park NSW
(6) FERRY PARK NSW | OPEN 1 MAY 2017 FY2017 Sales since opening: $0.2m, ahead of forecast
Slide 16: Ballarat VIC
Be fee Fiera BALLARAT VIC | OPEN 28 JUNE 2017 > Opened ahead of schedule, no contribution to FY2017
Slide 17: Oliver's first Queensland store
Oliver's first Queensland store, no contribution to FY2017
Slide 18: For personal use only
For personal use only
Slide 19: Horsham VIC
——— | REAL COFFEE ° REAL — { FRESH. NATURAL ORGANI A HORSHAM VIC | OPEN 18 AUG 2017 > Example of an Oliver's rebranded store (previously a Red Rooster restaurant), no contribution to FY2017
Slide 20: Maryborough food van
ee Currently on Maryborough and trading well (not budgeted) + Will move to Sutton Forest during the construction period
Slide 21: New rebranded store
s= i ES - REAL FOOD, REAL COFFEE, Oliver's Ee FEED rOUR Goon | New rebranded store (previously a McDonald's restaurant)
Slide 22: Port Macquarie NSW
PORT MACQUARIE NSW | UNDER CONSTRUCTION > er Oliver's flagship store - to be opened by December 2017
Slide 23: Sale and Lease Back
Land Sale Contributions From time to time, the opportunity exists for us to purchase select properties, rebrand them and sell them with a lease in place to Oliver's at an annual rental that works for our business. This strategy has already proven to produce significant contributions in the past. For
Slide 24: Oliver's Technology Delivering Results
Oliver's Technology Delivering Results > Real-time access to all store metrics including sales, inventory (COGS) and labour Micro-level capture of transactions across the complete supply chain, allowing detailed analysis and identification of trends, purchasing levels and margin Just-in-Time (JIT) i
Slide 25: Online Sales Platform Gaining Momentum
Online Sales Platform Gaining Momentum + Online Subscription Sales have been initiated Customers now have the ability to order products via a regular subscription model i.e. Send me 100 coffee pods + We now have Multiple Payment Options including Credit card, PayPal and Apple-Pay + Gift Cards to be
Slide 26: Oliver's Now Owns 100% of Red Dragon Organics
Oliver's Now Owns 100% of Red Dragon Organics Specialist organic beverage manufacturer, Red Dragon Organics supplies: + Organic Living Elixir + Sugar Free Organic Living Elixir + Organic Ginger Beer, and + Organic Lemon, Lime & Bitters Red Dragon supplies over 500 other retailers with beverages unde
Slide 27: Supply Chain Efficiencies are on Target
Supply Chain Efficiencies are on Target Oliver's expects continued economies of scale from the growth of the existing store network. These benefits include: > = Improved terms from suppliers Ability to amortise overheads over a large number of stores Bron secret cases ae ul : Greater utilisation of
Slide 28: Community - Oliver's Real Food Racing
Impact of Partnership Forge a strong relationship between the Australian cycling community and the Oliver's brand Cycling is one of Australia’s key growth sports, with the latest findings showing that 19% (or 3.7 million people) of the population cycle regularly. ! Promotion of cycling as a key part
Slide 29: Oliver's Board of Directors
OLIVER'S BOARD OF DIRECTORS Oliver's Board and its advisors compose a depth and breadth of experience that will ensure good governance and astute business leadership across a broad spectrum of commercial, legal and accounting disciplines. MARK RICHARDSON Non-Executive, Chairperson Mark co-founded Wo
Slide 30: Thank you. Questions?
G THANK YOU. Questions?