Slide 1: FY2017 Results Presentation
For personal use only Beacon Lighting Group Limited FY2017 RESULTS PRESENTATION AUGUST 2017
Slide 2: Disclaimer
DISCLAIMER For personal use only The Presentation contains “forward-looking statements”. All statements other than those of historical facts included in the Presentation are forward-looking statements. Where the Company expresses or implies an expectation or belief as to future events or results, su
Slide 3: Contents
CONTENTS For personal use only 1 RESULTS OVERVIEW 2 TRADING PERFORMANCE 3 CASH FLOW, BALANCE SHEET, DIVIDEND 4 GROWTH STRATEGIES 5 FY2018 OUTLOOK 6 QUESTIONS RESULTS PRESENTATION FY2017 3
Slide 4: Please Note
For personal use only PLEASE NOTE For the purposes of this presentation, please note the following: • FY2017 was for the 52 weeks ending 25 June 2017 as presented in the Annual Report 2017 • FY2016 was for the underlying profit result for the 52 weeks ending 26 June 2016 as presented in the Annual R
Slide 5: Results Overview
For personal use only 1 RESULTS OVERVIEW
Slide 6: FY2017 Milestones
1 FY2017 MILESTONES For personal use only FY2017 was a year of very important milestones for the Beacon Lighting Group • It has been 50 years since the first Beacon Lighting store opened in Chapel Street, Prahran (VIC) in 1967 • The Group opened the 100th Beacon Lighting store at North Lakes (QLD) i
Slide 7: FY2017 Key Highlights
1 FY2017 KEY HIGHLIGHTS For personal use only • Record sales result at $214.4m increased by 11.0% • The opening of 8 new company stores, the purchase of 4 franchise stores and 4 new company stores in the process of being opened • Net increase of 11 company owned stores • Company store retail sales i
Slide 8: Year-on-Year Result
1 YEAR-ON-YEAR RESULT For personal use only #039;000 FY2016 (1) FY2017 Change $ Change % Sales 193,179 214,404 21,225 11.0% Gross Profit 123,483 135,640 12,157 9.8% Gross Profit Margin % 63.9% 63.3% Other Income (2) 3,647 3,104 (543) (14.9%) % of Sales 1.9% 1.4% Operating Expenses (3) (97,965) (111,128
Slide 9: Half-Year Split YOY
1 HALF-YEAR SPLIT YOY For personal use only #039;000 H1 FY2016 H1 FY2017 $ Change % Change H2 FY2016(1) H2 FY2017 $ Change % Change Sales 98,514 109,245 10,731 10.9% 94,665 105,159 10,494 11.1% Gross Profit 64,934 67,803 2,869 4.4% 58,549 67,837 9,288 15.9% Gross Profit Margin % 65.9% 62.1% 61.8% 64.5%
Slide 10: Trading Performance
For personal use only 2 TRADING PERFORMANCE
Slide 11: Sales
2 SALES For personal use only SALES: $214.4m increased by 11.0% • Record sales result in FY2017 • Retail sales increased by 10.7% • Continued to gain market share in the Australian retail lighting industry • Sales increased for each of the emerging businesses • Sales to franchise stores continued to
Slide 12: Company Store Comparative Sales
2 COMPANY STORE COMPARATIVE SALES For personal use only COMPARATIVE SALES: Increased by 1.2% • In H1 FY2017, operated in a unique environment competing with the liquidation sale of a major competitor • SA, QLD and NSW were the best performed states, while WA company store comparative sales declined
Slide 13: Gross Profit
2 GROSS PROFIT For personal use only Gross Profit $: Increased by 9.8% to $135.6m • Gross profit dollars increased by $12.2m • Deeper discounting impacted H1 margins but margin recovered in H2 across the Group • Margin mix is changing with the growth of the emerging businesses Gross Profit $m Gross
Slide 14: Other Income
2 OTHER INCOME For personal use only Other Income : Decreased by 14.9% to $3.1m (1) • Core marketing and royalty income from franchise stores continues to decline as franchise stores are acquired • Selling licence fees for the right to use the Group Intellectual Property continues to increase Other
Slide 15: Operating Expenses
2 OPERATING EXPENSES For personal use only Opex: Increase 1.1% of Sales to $111.1m #039;000 FY2016 FY2017 Chg $ Chg % Marketing 12,083 12,839 756 6.3% • Operating expenses increased by 1.1% as a % of Sales 6.3% 6.0% percentage of sales • Invested in Selling and Distribution activities to Selling and Di
Slide 16: Earnings
2 EARNINGS For personal use only EBITDA: (5.3%) to $27.6m EBIT: (7.5%) to $24.6m 29.2 26.6 27.6 25.0 24.6 27.4 20.1 18.1 16.6 14.5 FY2013 FY2014 FY2015 FY2016(1) FY2017 FY2013 FY2014 FY2015 FY2016(1) FY2017 12.8% 13.4% 15.3% 15.1% 12.9% 10.9% 12.0% 14.0% 13.8% 11.5% EBITDA Margin EBIT Margin NPAT: (
Slide 17: Cash Flow, Balance Sheet & Dividend
For personal use only 3 CASH FLOW, BALANCE SHEET & DIVIDEND
Slide 18: Cash Flow
3 CASH FLOW For personal use only Capital Expenditure $9.9m #039;000 FY2016 FY2017 Cash Flow from Operations • New Stores Capex $6.0m Receipts from Customers 208,300 238,846 Payments to Suppliers & Employees (187,815) (209,926) • Other Store Capex $0.9m Other (1,068) (1,211) • Information Tech. $0.9m I
Slide 19: Balance Sheet
3 BALANCE SHEET For personal use only Debtors #039;000 FY2016 FY2017 • Commercial $7.5m Cash 9,128 12,925 Receivables 9,315 9,613 • Franchise $1.9m Inventories 51,737 55,267 Borrowings Other 970 1,175 • Inventory Finance $23.3m Total Current Assets 71,150 78,980 • General Finance $5.8m PPE 22,076 28,86
Slide 20: Dividend
3 DIVIDEND For personal use only • Paid 2.35 cents per share for H1 FY2017 (2.30 cents for H1 FY2016) • Declared a 2.40 cents per share for H2 FY2017 (2.40 cents for H2 FY2016) • Fully franked dividend of 4.75 cents per share for FY2017 (4.70 cents for FY2016) • Record date 15th September 2017 • Pay
Slide 21: Growth Strategies
For personal use only 4 GROWTH STRATEGIES
Slide 22: Optimise Existing Stores
4 OPTIMISE EXISTING STORES For personal use only Beacon Lighting will target the growth of sales and profit through the optimisation of the existing stores network. • New company stores that have opened in the recent years are yet to mature from a sales perspective • Ongoing marketing program refine
Slide 23: Emerging Businesses
4 EMERGING BUSINESSES For personal use only Beacon Lighting will target the growth of sales and profit of the emerging businesses • Beacon Solar growth is driven by providing innovative energy efficient solutions to our commercial customers • Beacon International opened new businesses in Germany and
Slide 24: New Store Rollout
4 NEW STORE ROLLOUT For personal use only Beacon Lighting will continue to target the opening of six new company operated stores in Australia each year • Opened eight new company stores at South Melbourne (VIC), Marsden Park (NSW), Brookvale (NSW), Claremont (WA), North Lakes (QLD), Burwood (VIC), B
Slide 25: New Product Ranges
4 NEW PRODUCT RANGES For personal use only Beacon Lighting will continue to offer an extensive range of the latest fashion, trend and energy efficient products to our customers • Designed and developed 450 exclusive new products for our customers • Introduced a broad range of GE LED Globes for the R
Slide 26: Online and Social Media
4 ONLINE AND SOCIAL MEDIA For personal use only Beacon Lighting will continue to enhance our online presence in order to drive incremental sales • Online sales increased by 53.8% over FY2016 • Beacon International is already selling products on Amazon in Europe and USA. Plan to investigate the use o
Slide 27: Acquisitions
4 ACQUISITIONS For personal use only Beacon Lighting will continue to investigate local and international business opportunities that complement the core business activities • Purchased the Jindalee (QLD), Moonah (TAS), Frankston (VIC) and Midland (WA) franchise stores and converted them to company
Slide 28: Efficiency Gains
4 EFFICIENCY GAINS For personal use only Beacon Lighting will continue to target expense efficiency gains and manage the growth of expenses • As new stores and new businesses mature, expense efficiency gains can be expected to be realised • Direct factory deliveries to the 3PL network continue to in
Slide 29: FY2018 Outlook
For personal use only 5 FY2018 OUTLOOK
Slide 30: FY2018 Outlook
5 FY2018 OUTLOOK For personal use only Beacon Lighting • Company store comparative sales have made an encouraging start to FY2018 • Emerging businesses have also made an encouraging start to FY2018 • The Nunawading (VIC) franchise store was purchased and converted into a company store in July 2017 •
Slide 31: Questions
For personal use only 6 QUESTIONS