Retail Food Group Limited · ASX:RFG
Retail Food — FY2010 Earnings Presentation
24 slides from Retail Food's earnings presentation, Aug 17, 2010
Slide 1: Results Presentation - Financial Year 2010
For personal use only Retail Food Group Limited Results Presentation - Financial Year 2010
Slide 2: Retail Food Group Limited (ASX: RFG)
Retail Food Group Limited (ASX: RFG) For personal use only RFG designs, develops and manages retail franchise systems and is the intellectual property owner and licensor of the: – Donut King – bb’s café – Brumby’s Bakeries – Michel’s Patisserie, and – Big Dad’s Pies franchise systems Over 1,100 fran
Slide 3: FY10 'Strength In Brands'
FY10 ‘Strength In Brands’ For personal use only Underlying business resilience: – Core NPAT: $26.4m ( 12.8%) – Core EPS: 25.6 cps ( 8.5%) – 27.0%) increasing payout ratio to 53% (1) Dividends: 11.75 cps ( – Cash flow: $29.2m ( 26.2%) equivalent to 98.2% conversion of EBITDA – Net debt: $72.9m ( 19.5
Slide 4: Summary Information
Summary Information For personal use only Statutory Results Core Operations (1) FY06 FY07 FY08 FY09 FY10 PCP % FY09 FY10 PCP % Franchise Network Sales (2) $143.1m $158.2m $592.0m $632.0m $640.6m 1.4% Total Revenue (3) $20.5m $23.6m $114.1m $130.5m $118.6m (9.1%) $130.5m $118.6m (9.1%) Adjusted Reven
Slide 5: Financial Highlights
Financial Highlights For personal use only Increased return to shareholders: – core EPS up 2.0cps (or 8.5%) to 25.6cps EPS (Basic) DPS – final dividend of 6.5cps fully franked (up 37% on pcp) 30 25 – full year dividend of 11.25cps up 27% on FY09 20 15 Continuing strong cash flows: 10 – net cash infl
Slide 6: Financial Highlights
Financial Highlights For personal use only Adjusted Revenue increase of 4% after normalising FY09 revenue by excluding: – sales revenue of $3.1m derived by CMF, prior to disposal in January 2009, and Rev enue Adj.Rev enue 140 – sales revenue of $13.4m derived from wholesale bakery supply to 120 Mich
Slide 7: Operational Highlights
Operational Highlights For personal use only Positive system metrics trend: – network sales up $8.6m to $640.0m – Weighted Average Weekly Sales (AWS) up 1.6% – Weighted ATVs up 3.2% - reflecting marketing initiatives centered on product bundling – customer count down 2.7% reflecting pressure on shop
Slide 8: Debt Structure & Covenants
Debt Structure & Covenants For personal use only Existing debt facility of $85.9m held with CBA classified as current liability in financial statements reflecting 5 December 2010 maturity At the beginning of FY10, the Board determined that delaying the refinance of the facility to 1Q11 would provide
Slide 9: Franchise System Metrics - KPIs
Franchise System Metrics - KPIs For personal use only Average Weekly Sales (AWS) Average Transaction Values (ATV) System FY10 FY09 FY10 FY09 Donut King (excl. 22 DCM outlets) 9,357 9,256 5.11 4.93 Growth v prior period 1.1% 0.8% 3.7% 7.4% bb's café 11,329 11,242 7.41 7.16 Growth v prior period 0.8%
Slide 10: Franchise System Metrics - Outlets
Franchise System Metrics - Outlets For personal use only System QLD NSW VIC TAS SA WA NT Aust China NZ Total Donut King 100 143 70 8 12 12 3 348 10 - 358 (incl. 22 DCM outlets) bb's café 20 1 9 - 8 - - 38 - 22 60 Brumby's Bakeries 131 34 68 - 18 52 9 312 - 18 330 Big Dad's Pies 37 - - - - - - 37 - -
Slide 11: Acquisitions
Acquisitions For personal use only Purchase Cash Scrip Acquired Date Of Franchise Network Consideration Consideration Consideration Outlets Acquisition $’m $’m $’m DCM Coffee & Donuts 23 13 Jan 2010 2.4 2.1 0.3 Brumby’s Bakeries North Queensland & New Zealand 56 15 Jan 2010 4.0 2.7 1.3 Brumby’s Bake
Slide 12: FY11 Initiatives
FY11 Initiatives For personal use only Further growth anticipated: – development of new products and menu innovations – integration of DCM Coffee & Donuts into Donut King – further integration and liberation of expenses – new store organic growth – non-traditional site opportunities – regional froze
Slide 13: Appendices
Appendices For personal use only Appendix 1 – FY10 Performance Appendix 2 – Earnings Performance Appendix 3 – Cashflow Performance Appendix 4 – Statement of Financial Position Appendix 5 – Franchise Systems – Donut King – bb’s café – Brumby’s Bakeries – Michel’s Patisserie – Brumby’s GO! – Big Dad’s
Slide 14: FY10 Performance
Appendix 1 – FY10 Performance For personal use only 14 Retail Food Group Limited - FY10 Results Presentation
Slide 15: Earnings Performance
Appendix 2 - Earnings Performance For personal use only Key earnings highlights: FY10 FY09 $’m $’m Core NPAT of $26.4m (12.8% increase on FY09) after Revenue from franchising operations 61.3 56.3 adjusting for impacts of derivative financial instruments (interest rate swaps) Revenue from wholesale /
Slide 16: Cash Flow Performance
Appendix 3 - Cash Flow Performance For personal use only Key cash flow highlights: FY10 FY09 $’m $’m Overall increase in cash holdings by $7.7m reflects Receipts from customers 147.7 157.4 continuing strong cash flows – a feature of RFG’s business model – supported by balanced investment and Payment
Slide 17: Financial Position
Appendix 4 - Financial Position For personal use only FY10 FY09 Key balance sheet highlights: $’000 $’000 Increase in net assets by $31.8m reflects reducing Assets: working capital requirements and well managed debt and equity structures Cash reserves 13.1 5.4 Trade receivables 13.1 15.0 Significant
Slide 18: Franchise Systems - Donut King
Appendix 5 – Franchise Systems For personal use only Australia’s largest specialty donut and coffee chain Serves 30 million donuts to Australians every year Operates within the ‘impulse buy’, ‘reward’ and ‘treat’ segments of the food retailing sector FY10 Performance: Network Sales: $155.9m (FY09: $
Slide 19: Franchise Systems - bb's café
Appendix 5 – Franchise Systems For personal use only Café franchise with 38 outlets in Australia and 22 outlets in New Zealand. Operates within the ‘time out’, ‘relaxation’ and ‘meeting place’ segment of the food retailing and quality coffee sector. Successful launch of ‘My Local Café’ sub-branding
Slide 20: Franchise Systems - Brumby's Bakeries
Appendix 5 – Franchise Systems For personal use only Australia’s second largest specialty bread and savoury retail franchise chain Operates within the “baked fresh” and “convenient” bakery segment “You’ll Get More at Brumby’s” marketing campaign launched in FY10 Current focus on non-traditional site
Slide 21: Franchise Systems - Brumby's GO!
Appendix 5 – Franchise Systems For personal use only Brumby’s GO! offers quality fresh sandwiches, snacks and savouries Operates within the “pre-made”, “snack” and “convenient” segments 10 outlets commissioned Focus on regional locations Offers an alternative to the traditional Brumby’s product offe
Slide 22: Franchise Systems - Big Dad's Pies
Appendix 5 – Franchise Systems For personal use only Big Dad’s Pies is a South East Queensland-centric franchise system, acquired April 2010 Famous for delivering a large 300g pie with a traditional home made baked veneer Concept offers a lower entry cost compared to other RFG franchise systems ($20
Slide 23: RFG Investment Credentials
RFG Investment Credentials For personal use only RFG was established in 1989 and is a leading Australian retail food brand manager and franchising company Leading retail food brand with 1,122 franchised outlets in Australia, New Zealand and China (as at 30 June 2010) manager and franchisor RFG is an
Slide 24: Disclaimer
Disclaimer For personal use only No responsibility for contents of Presentation To the maximum extent permitted by law, Retail Food Group Limited (ABN 31 106 840 082), its officers, advisers and representatives: make no representation, warranty or undertaking, express or implied, as to the adequacy,