Retail Food Group Limited · ASX:RFG
Retail Food — H1 2009 Earnings Presentation
21 slides from Retail Food's earnings presentation, Mar 3, 2009
Slide 1: Half Year Results Presentation for the Six Months ended 31 December 2008
April 2006 For personal use only Retail Food Group Limited Half Year Results Presentation for the Six Months ended 31 December 2008 (1H09)
Slide 2: Highlights of 1H09
Highlights of 1H09 For personal use only Summary Financial Information 1H09 1H08(1) $ Change % Change Total Revenue(2) $69.7m $50.2m $19.5m 38.8% EBITDA $20.6m $17.2m $3.4m 19.8% EBIT $19.8m $16.8m $3.0m 17.9% NPAT $10.6m $8.9m $1.7m 19.1% Basic EPS 10.7 cps 11.2 cps (0.5 cps) (4.7%) Retail Food Gro
Slide 3: Highlights of 1H09 - Core Operations
Highlights of 1H09 - “Core Operations” For personal use only Reconciliation of Core Operations (1) 1H09 1H08 $ Change % Change Performance Network Sales $323.1m $306.3m $16.8m 5.5% EBIT $19.8m $16.8m $3.0m 17.9% Adjust: change in fair value of $0.3m ($0.8m) derivative financial instruments Retail Fo
Slide 4: 1H09 Financial Performance – EBIT & NPAT
1H09 Financial Performance – EBIT & NPAT For personal use only EBIT EBIT Actual Core Ops 25 Consistent EBIT accretion historically driven by franchise revenue increases 20 32% increase on 1H08 Core Operations 15 Despite upscale of operations EBIT $ millions Up 34% Up 167% Up 18% Up 32% continued to
Slide 5: 1H09 Financial Performance - EPS
1H09 Financial Performance - EPS For personal use only EPS Actual Core Ops 12 10 8 Up 34% Up 104% Up 22% cps 6 11.2 11.2 10.7 Retail Food Group 1H09 Results Presentation 9.2 4 5.5 2 4.1 Down -4% 0 1H06 1H07 1H08 1H09 1H08 Core Ops 1H09 Core Ops EPS reduction of .5 cents 1H09 v 1H08 as a result of no
Slide 6: 1H09 Financial Performance – Balance Sheet
1H09 Financial Performance – Balance Sheet For personal use only $millions 1H09 1H08 Balance Sheet Highlights Cash and cash equivalents 5.1 4.1 Increase in net current assets (excluding the CMF PPE Trade and other receivables 16.8 15.0 and associated liabilities) to $7.0m reflects: Other financial a
Slide 7: 1H09 Financial Performance – Cash Flow
1H09 Financial Performance – Cash Flow For personal use only $millions 1H09 1H08 >90% increase in net cash from operations Cash flows from operating activities compared to 1H08 Receipts from customers 80.8 57.7 Payments to suppliers and employees (62.3) (46.4) Strong positive cash flow supports: • I
Slide 8: 1H09 - Debt Structure & Covenants
1H09 - Debt Structure & Covenants For personal use only Bank Covenant RFG at 31/12/08 • Leverage Ratio (total debt/EBITDA) < 4.0 times Complied • Interest Cover > 3.0 times Complied • Gearing Ratio (total debt/total debt +equity) < 60% Complied • Current Ratio >1.5 times Complied Margin 1.35 Vary 1.
Slide 9: 1H09 Financial Performance – Franchise Systems
1H09 Financial Performance – Franchise Systems For personal use only Total Michel’s Brumby’s Donut King(5) bb’s café (5) CMF/Other(6) 1H09 1H08 1H09 1H08 1H09 1H08 1H09 1H08 1H09 1HY08 1H09 1HY08 Total Revenue (1) 69.7 50.2 46.8 31.3 9.1 7.7 9.4 8.6 1.2 1.2 3.2 1.4 Franchise Revenue (1)(3) 22.2 17.1
Slide 10: Franchise - Outlets by System by Territory
Franchise - Outlets by System by Territory For personal use only Franchise System QLD NSW VIC TAS SA WA NT Aust China NZ Total Donut King 97 113 70 8 12 14 3 317 3(2) 0 320 bb's café 24 3 9 0 8 0 0 44 24 68 Brumby's 127 37 72 0 17 51 8 312 20 332 Retail Food Group 1H09 Results Presentation Michel's
Slide 11: Franchise - Outlet Growth & Targets
Franchise - Outlet Growth & Targets For personal use only Original Revised Forecast Forecast Forecast Forecast RFG System Outlets DK BB MP bb's 1H09 1H09 2H09 FY09 FY09 Opening Balance 307 329 348 68 1052 1052 1052 Openings 17 12 6 3 38 33 22 55 59 Closures 4 9 7 3 23 19 3 22 31 Retail Food Group 1H
Slide 12: Franchise – 1H09 AWS & ATV
Franchise – 1H09 AWS & ATV For personal use only Franchise System Average Weekly Sales (AWS) Average Transaction Value (ATV) 1H07 1H08 1H09 1H07 1H08 1H09 Donut King 9,334 9,684 9,653 4.35 4.58 4.87 PCP Growth 1.2% 3.8% -0.3% 6.6% 5.3% 6.3% bb’s café 9,978 10,462 11,382 6.32 6.75 7.16 PCP Growth 6.0
Slide 13: Franchise - System Overview
Franchise - System Overview For personal use only Michel’s Patisserie Physical integration following 14 December 2007 acquisition completed System conversion to traditional royalty model commenced (30+ outlet pilot underway) Pilot franchisee outlet support for royalty model encouraging – no withdraw
Slide 14: Franchise - System Overview
Franchise - System Overview For personal use only Donut King System continues to lead other systems in new outlet growth International expansion in China continues – 3 outlets (includes 1 training store) trading Focus on reversing negative trending AWS in Victoria – negative growth contributed to by
Slide 15: 2H09 – Revenue and Profit Drivers
2H09 – Revenue and Profit Drivers For personal use only Continued focus on developing and enhancing all revenue drivers in FY09 including: delivering forecast new store growth supporting AWS and ATV growth through strategic marketing initiatives renegotiating and leveraging supplier contracts and li
Slide 16: 2H09 – Outlook and Guidance
2H09 – Outlook and Guidance For personal use only CMF sale settled January 2009 The Australian retailing landscape is depressed and experiencing further contraction, the ultimate extent of which at this juncture is simply speculation RFG franchise systems are not immune or insulated but to date have
Slide 17: 1H09 Appendix
1H09 Appendix For personal use only 1. RFG Overview 18 2. RFG – The Franchise Systems 19 Retail Food Group 1H09 Results Presentation 3. RFG - Investment Credentials 20 17
Slide 18: RFG - Overview
RFG - Overview For personal use only Retail Food Group Limited (RFG) is an Australian company listed on the ASX since 22nd June 2006, whose franchise systems were also developed in Australia Founded in 1989 RFG is the Intellectual Property owner of 4 full format franchise systems being Donut King, b
Slide 19: RFG – The Franchise Systems
RFG – The Franchise Systems For personal use only FY2006 Network Sales: $123m FY2006 Network Sales: $20m FY2007 Network Sales: $133m FY2007 Network Sales: $26m FY2008 Network Sales: $144m FY2008 Network Sales: $34m 1H09 Network Sales: $78.2m (excl China) 1H09 Network Sales: $17.5m Outlets 30 June 20
Slide 20: RFG – Investment Credentials
RFG – Investment Credentials For personal use only Leading retail food brand RFG was established in 1989 and is a leading Australian retail food brand manager and franchising company with in excess of 1065 franchised outlets in Australia and New Zealand manager and franchising RFG is an intellectual
Slide 21: Disclaimer
Disclaimer For personal use only No responsibility for contents of Investor 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 th