Oliver's Real Food Ltd. · ASX:OLI
Oliver's Real Food — FY2018 Earnings Presentation
37 slides from Oliver's Real Food's earnings presentation, Aug 30, 2018
Slide 1: For personal use only
For personal use only 1
Slide 2: Important notice and disclaimer
Important notice and disclaimer This investor presentation (“Presentation”) has been prepared by Oliver’s Real Food Limited ABN 33 166 495 441 (“OLI”) Summary information: This Presentation contains summary information about OLI and its related bodies corporate and their activities, which is current
Slide 3: Contents
FY2018 Full Year Review 5 Executive Management 6 For personal use only Store Locations 7 FY2018 Financial Overview 8 FY2018 EBITDA 10 FY2018 Sales 11 FY2018 Gross Margin 12 FY2018 Balance Sheet 13 FY2018 Cash Flow 14 Business Platforms 15 Store Development 16 Technology 27 Supply Chain 28 Marketing
Slide 4: For personal use only
REVENUE Neu Ne BRISBANE k FRONT SOuM ye Been Lt > \ OPENED \ +4.3% yy, bingy fin LAUNCHED | J NINE es a = WwW. nT | Topmilaer |) Rigas ii é LEASING @ y gai ADDRESSED opel PERFORMING J vf VS Loss OF 4 SALE OF } Wic) (fe 2.3M__f/ PROPERTY FOR 2017 fh suo +$2.07: j MARYBOROUGH +$1.85M
Slide 5: Full Year Review
Full Year Review For personal use only →→ Revenue for the FY2018 Year increased 73.2% to $35.9m. Same store growth of the existing network was 4.3%. →→ Revenue growth was achieved through the opening of nine (9) new corporate owned and operated stores including: →→ Aratula, Horsham, Maryborough, Eur
Slide 6: Executive Management
For personal use only Greg Madigan Alan Lee Mark Shalala Neil Temple Kelly Pumpa Sally Fong Robert Vandermaat Robbie Williams Chief Executive Officer Chief Financial Officer Chief of Operations Chief Technology Officer Chief People Officer Chief Development Officer Chief Supply Officer Chief Marketi
Slide 7: Store Locations
Brisbane As at 30 June, 2018, Oliver’s Real Food For personal use only owned and operated 28 organically certified quick service restaurants 1. MARYBOROUGH, QLD 18. WALLAN NORTHBOUND, VIC 2. ARATULA, QLD 19. WALLAN SOUTHBOUND, VIC 3. COOMERA, QLD 20. EASTLINK OUTBOUND, VIC 4. CHINDERAH, NSW 21. EAST
Slide 8: Financial Overview
Financial Overview Year ended Year ended Year ended Variance 30-JUN-16 30-JUN-17 30-JUN-18 % $’000s Actual Actual Actual Actual For personal use only Revenue from ordinary activities 17,126 20,749 35,928 73.2% Gross Profit 10,494 13,944 27,472 97.0% Gross Margin 61.3% 67.2% 76.4% 9.2% Other income 2
Slide 9: Underlying EBITDA and NPAT
Underlying EBITDA and NPAT For personal use only Year ended Year ended $’000s 30-JUN-17 30-JUN-18 Reported EBITDA (2,283) 2,702 Normalisation Adjustments 677 655 Underlying EBITDA* (1,606) 3,357 *Underlying EBITDA excludes one-off expenses that are not considered to form the ordinary part of the bus
Slide 10: EBITDA Chart
EBITDA Chart For personal use only $2.702 3.0 2.0 $1.751 1.0 ($2.283) $,m 0.0 FY2016 FY2017 FY2018 -1.0 -2.0 -3.0 →→ EBITDA FY2018 increased 218.4% to $2.7m →→ EBITDA improvement of $5m between FY2017 and FY2018 results →→ Underlying EBITDA of $3.4m (Refer to page 9) EBITDA 10
Slide 11: Trading Performance Sales
Trading Performance Sales Group Sales Store Numbers For personal use only $40.0 30 28 $35.0 $35.9 25 $30.0 20 20 $25.0 $20.0 15 17 $20.7 $’m $15.0 $17.1 10 $10.0 5 $5.0 $.0 0 FY2016 FY2017 FY2018 FY2016 FY2017 FY2018 →→ Group Sales up by 73.2% in FY2018 to $35.9m. →→ Store numbers increased from 20
Slide 12: Gross Margin
Gross Margin For personal use only 80.0 $30.0 $27.472 70.0 76.4% $25.0 60.0 67.2% 61.3% $20.0 50.0 40.0 $15.0 $’m % 30.0 $13.944 $10.0 $10.494 20.0 $5.0 10.0 0.0 $0.0 FY2016 FY2017 FY2018 FY2016 FY2017 FY2018 →→ Gross profit increased 97.0% to $27.4m. →→ Gross margin increased to 76.4% from 67.2%. G
Slide 13: Balance Sheet
Balance Sheet $’000s 2016 2017 2018 Cash and cash equivalent 839 6,344 2,859 For personal use only Receivables 997 1,426 1,070 Inventories 948 1,341 2,095 Total current assets 2,784 9,111 6,025 Property, plant & equipment 4,007 10,737 15,287 Intangible assets 1,055 6,677 8,935 Deferred tax assets 14
Slide 14: Cash Flow
Cash Flow For personal use only $’000s 2017 2017 2018 Cash provided by operating activities (1,060) (2,145) 1,716 Net finance costs (269) (413) (89) Tax paid (49) (77) (278) Net cash used in operating activities (1,378) (2,635) 1,349 Property, plant & equipment 2,510 (4,065) (2,792) Business (659) (
Slide 15: Business Platforms
For personal use only Sally Fong Robert Vandermaat Alan Lee Neil Temple Chief Development Officer Chief Supply Officer Chief Financial Officer Chief Technology Officer Mark Shalala Robert Vandermaat Robbie Williams Kelly Pumpa Chief of Operations Chief Supply Officer Chief Marketing Officer Chief Pe
Slide 16: FY2019 Store Development
Brisbane FY2019 Store Development 1. MARYBOROUGH, QLD 21. EASTLINK INBOUND, VIC For personal use only 2. ARATULA, QLD 22. OFFICER OUTBOUND, VIC 3. COOMERA, QLD 23. OFFICER INBOUND, VIC 4. CHINDERAH, NSW 24. PEN-LINK OUTBOUND, VIC 5. FERRY PARK, NSW 25. PEN-LINK INBOUND, VIC 6. COFFS HARBOUR, NSW 26.
Slide 17: Aratula QLD store opened July 2017
(6) ARATULA QLD | OPENED 13 JULY 2017
Slide 18: Opened August 2017, closed May 2018
For personal use only OPENED 18 AUGUST 2017, CLOSED 23 MAY 2018 18
Slide 19: For personal use only
For personal use only 19
Slide 20: Euroa VIC opened Nov 2017
EUROA VIC | OPENED 2 NOV 2017 20
Slide 21: Port Macquarie NSW opened Nov 2017
6) PORT MACQUARIE NSW | OPENED 16 NOV 2017 21
Slide 22: For personal use only
For personal use only 22
Slide 23: Opened May 2018
For personal use only OPENED 3 MAY 2018 23
Slide 24: Opened June 2018
For personal use only OPENED 21 JUNE 2018 24
Slide 25: Opened June 2018
For personal use only OPENED 28 JUNE 2018 25
Slide 26: Sale and Lease Back
For personal use only Sale and Lease Back From time to time, the opportunity exists for us to purchase selected businesses/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
Slide 27: Oliver's Technology Advancements
Oliver’s Technology Advancements →→ Deployment of self-serve kiosks across two trial locations. Software platform For personal use only developed and owned by Oliver’s, with full integration to the wider OliVerse store operations ecosystem. Early results show an increase in Kiosk vs Counter average
Slide 28: Supply Chain Efficiencies
For personal use only Supply Chain Efficiencies Oliver’s expects continued economies of scale from the growth of the existing store network as well as supply chain efficiencies such as: →→ Supplier agreements under negotiation to consolidate suppliers and achieve improved terms and rebates →→ New Qu
Slide 29: NPS
NPS 60 55 For personal use only 50 45 EASTER, ANZAC & SCHOOL HOLIDAYS QUEEN’S BIRTHDAY 40 WEEKEND 35 WK1 WK2 WK3 WK4 WK5 WK6 WK7 WK8 WK9 WK10 WK11 WK12 WK13 WK14 WK15 WK16 WK17 WK18 WK19 WK20 WK21 WK22 WK23 WK24 WK25 WK26 CUSTOMER FEEDBACK 7231 5955 4891 6184 3788 4016 4192 3576 3719 4489 4777 3490
Slide 30: Introduced New Menu Items
Introduced New Menu Items Vegan - Sweet Potato & Salad Sandwich Oliver’s Real Crisps For personal use only Sweet Potato, Marlborough Sea Salt or Rosemary & Thyme Potato Salad Breakfast Options Vegan Red Pepper Rice Salad Rosemary Baked Potatoes Turmeric Latté & Sweet Potato Strips →→ Enhanced vegan
Slide 31: For personal use only
WINDOW 1 WINDOW 2 WINDOW 3 WINDOW 4 WINDOW 5 WINDOW 6 WINDOW 7 WINDOW 8 WINDOW 9 START DATE 4-JUL-18 15-AUG-18 19-SEP-18 31-OCT-18 26-DEC-18 16-JAN-19 27-FEB-19 3-APR-19 15-MAY-19 END DATE 7-AUG-18 18-SEP-18 30-OCT-18 25-DEC-18 15-JAN-19 26-FEB-19 2-APR-19 14-MAY-19 25-JUN-19 WEEKS 5 6 6 8 4 6 5 6 6
Slide 32: Outdoor Advertising
For personal use only →→ Outdoor advertising/billboard strategy launched and in production →→ 20 billboards in the process of being re-skinned per the above artwork →→ Each billboard site lists specific distance to the closest store →→ The new outdoor advertising strategy caters to both existing and
Slide 33: Community
For personal use only →→ The brand exited from the relationship with Oxfam Australia in July, 2018. →→ We have re-aligned our charity and community commitment to Rural Aid Australia. →→ ‘Love Bucket’ support will be regularly reviewed to remain relevant to community needs. O_TT_Oxfa m_A4.indd 1 16/1
Slide 34: Community - Oliver's Real Food Racing
For personal use only Impact of Partnership Our ongoing partnership with the Oliver’s Racing Team has built a strong relationship between the Australian cycling community and the Oliver’s brand. In the past year Oliver’s racing has gained Australian UCI Continental status. In the first half of 2018
Slide 35: FY2019 Earnings Guidance
For personal use only The directors advise that they do not intend to provide FY2019 earnings guidance at this time, until results from the many initiatives in progress are realised and will review this position again at the Annual General Meeting (AGM). FY2019 EARNINGS GUIDANCE 35
Slide 36: 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 For personal use only Mark Richardson Katherine Hatzis John Diddams Peter Rodwell Emma Law
Slide 37: For personal use only
Eor oersonal use or fresh. oliver's organic. FEED YOUR GOOD