Slide 1: Financial Year 2022 Results
FINANCIAL YEAR 2022 RESULTS STRONG OPERATIONAL AND FINANCIAL PERFORMANCE August 2022
Slide 2: Disclaimer
DISCLAIMER Information contained in this presentation may involve forward looking statements, and accuracy, completeness or correctness of data presented the information, opinions and comments about the future including possible future performance estimates, estimated conclusions contained in this p
Slide 3: Joyce Corporation: Flow of Economic Interest
JOYCE CORPORATION Flow of Economic Interest into Joyce Corporation 51% Majority Interest in Net Profit Attributable to JYC Shareholders KWB 26 showrooms JOYCE CORPORATION (ASX: JYC) Franchise Fee Income BEDSHED 36 Stores Consolidated Net Franchise Operator Cash $31.9M at 30 Jun 2022 BEDSHED Property
Slide 4: Operating Results
OPERATING RESULTS FINANCIAL YEAR 2022 YEAR END RESULTS
Slide 5: Overview
JOYCE CORPORATION Overview Strong operational and financial performance delivered across the Group $129.0M $17.6M Revenue Group NPAT* Revenue growth of 16% and strong margins maintained in $25.7M challenging operating conditions Operating Cash Flow $31.9M Reported NPAT attributable to Joyce Sharehol
Slide 6: Results Overview: Increasing returns to shareholders
RESULTS OVERVIEW Increasing returns to shareholders Joyce Corporation FY 22 Final FY 22 Total FY 21 Total Record 10.5 cents final Dividend (cents) 10.5 18.0 17.0 dividend and 18 cent full NPAT to JYC Shareholders ($’000) 9,086 9,086 7,574 year dividend (fully Normalised NPAT* to JYC Shareholders ($’
Slide 7: Key financial performance metrics
RESULTS OVERVIEW Key financial performance metrics STRONG OPERATIONAL PERFORMANCE ACROSS THE GROUP FY 22 FY 21 Variance Variance Continued trend of revenue Joyce Corporation Consolidated Results ($’000) ($’000) ($’000) (%) growth driven by strong Revenue 129,016 111,224 17,792 16% consumer demand an
Slide 8: Key financial position metrics
RESULTS OVERVIEW Key financial position metrics Jun 22 Jun 21 Variance Variance Joyce Corporation Consolidated Results Strong Net Cash Position of ($’000) ($’000) ($’000) (%) $31.9m with significant borrowing Closing Group Cash 31,933 19,881 12,052 61% capacity and gearing potential Debt - - - - Ope
Slide 9: KWB Group
KWB GROUP HIGH PERFORMANCE IN AUSTRALIA’S HOME RENOVATION MARKET
Slide 10: Snapshot
SNAPSHOT Marketing mage Kitchen Connection & Wallspan Leader in Australia’s Kitchen and Wardrobe renovation market, delivering kitchen and wardrobe solutions Kitchen Connection Unique value proposition delivering a Wallspan Kitchens and Wardrobes 13 positive, seamless and hassle-free design & instal
Slide 11: Business Model Customer Journey
BUSINESS MODEL CUSTOMER JOURNEY Seeking to become the clear market Completion & Showroom Seek Referral (specify & qualify) leader in the 'Do It For Me' segment of the Australia Kitchen Renovation Market in both revenue and referral Delivery of exceptional retail and Installation Design & sell instal
Slide 12: Short Term Initiatives and Kitchen Renovation Market
Short Term Initiatives Kitchen Renovation Market Notional Demand for Kitchen Renovations, Program of Showroom Wardrobe Model Evolving 160,000 Australia1 Upgrades in FY 23 ~$8M Revenue FY 22 Number of renovations Refits, Relocations and - Integrated Manufacturing 155,000 Makeovers - In Home Sales Exp
Slide 13: KWB Results
KWB RESULTS $120 Revenue Growth ($ million) $14.6 $3.6 $108.0 $100 Continued Revenue and $80 $89.7 Order Growth $60 $40 $20 Record revenue of $108M (20% increase $0 on FY 21) FY 21 Revenue Revenue generated from like for Revenue from new showrooms like showrooms opened during 2022 (1) FY 22 Revenue
Slide 14: KWB Results: Record Performance
KWB RESULTS Operating EBIT $m (FY 221 vs FY 21) Segment Operating EBIT Margin % (FY 221 vs FY 21) Record Performance in $19.2M $16.3M 17.8% 18.2% Challenging Operating Conditions Revenue and Operating EBIT FY 16-221 ($ million) $120 $22 Revenue EBIT $20 Results delivered against backdrop of $100 $18
Slide 15: Bedshed
BEDSHED DELIVERING ON FRANCHISE NETWORK GROWTH AMBITIONS
Slide 16: Snapshot
SNAPSHOT Franchised and Company-Owned Stores Well established Australian household name, delivering high quality bedroom furnishings for over 40 Years Strong brand and loyal customer base 40-store network predominantly run and owned by 2 franchisees (includes 4 Company-Owned stores) Consistent deliv
Slide 17: Business Model Customer Proposition
BUSINESS MODEL CUSTOMER PROPOSITION Proven Successful Franchisor “People focused position Many franchise partners in network 20+ of listening and years understanding our Only 1 franchised store up for resale in customers changing 10+ years needs. Our position is no 7 franchise renewals in FY22 at 10
Slide 18: Growth Strategy
Growth Strategy Bedding Market1 2,000 Franchise Network Growth: 1,500 • Low capital intensity and marginal cost to expand the Bedding ($M) 1,000 franchisee network 500 • 3 New Franchisees in NSW in FY 22 with Ballarat - opened Aug 22, taking total to 36 FY 19 FY 20 FY 21 FY 22 • Focus on growth in N
Slide 19: Bedshed Results
BEDSHED RESULTS Franchise Operations EBIT Franchisee Operations EBIT ($m) and EBIT Margin % FY 18 - 22) 3,000 60 Strong Performance across Network EBIT Margin 2,500 50 Franchise Network delivers increased 2,000 40 EBIT ($’000) Revenue of $5.3M and increased EBIT of Margin % 1,500 30 $2.8M 1,000 20 F
Slide 20: Crave
CRAVE NEW PILOT BUSINESS
Slide 21: Crave Snapshot
CRAVE SNAPSHOT Launching as Pilot Q1 FY 23 Targeting an emerging but fast growing and under serviced market segment Significant potential revenue pool with high value jobs and substantial market size Utilises strength of Joyce Group supply chain access, marketing expertise, logistics and industry re
Slide 22: Future Growth
PAJOXCE FUTURE GROWTH
Slide 23: Joyce Corporation: Strong Foundations for Growth
OUR VISION UNIQUE VALUE JOYCE CORPORATION We seek to make a meaningful positive PROPOSITIONS Strong Foundations for Growth difference to the lives of our Working together is key to success shareholders, partners, franchisees, High performing businesses with strong employees and customers Shareholder
Slide 24: Future Growth
FUTURE GROWTH Focus on Organic Growth from portfolio Significant potential to expand footprint Focus on growth in NSW with strong Crave Home Staging is natural fit to nationally with near term focus on pipeline of potential franchisees in portfolio continued expansion in Sydney NSW and nationa
Slide 25: Corporate Directory
CORPORATE DIRECTORY Top 20 JYC Shareholders – 23 August 2022 BOARD OF DIRECTORS Jeremy Kirkwood - Non-executive Director (Chair) Karen Gadsby - Non-executive Director (Deputy Chair) Daniel Smetana - Non-executive Director Timothy Hantke - Non-executive Director Travis McKenzie - Non-executive Direct
Slide 26: References
REFERENCES This Announcement should be read in conjunction with the following documents lodged with the ASX on 30 August 2022 under the ASX ticker JYC: • Annual Report for the financial year ended 30 June 2022 • Appendix 4E • Appendix 2A: Dividend/Distribution • Appendix 3C: Notification of buy-back
Slide 27: Appendix A: Normalising Adjustments
APPENDIX A: NORMALISING ADJUSTMENTS Consolidated effect ($M) NPAT attributable to JYC Adjustments for ‘one-off’ events Profit shareholders Tax NPAT Before Tax ($M) 2022 Financial Year Crave establishment expenses 0.45 (0.13) 0.32 0.32 Gain on revaluation of KWB Group Investment Property (6.38) 1.91