Breville Group Limited · ASX:BRG
Breville — FY2017 Earnings Presentation
17 slides from Breville's earnings presentation, Aug 17, 2017
Slide 1: Year Ended 30 June 2017 Investor Presentation
17 August 2017 For personal use only Manager, Company Announcements, Australian Securities Exchange Limited, 20 Bridge Street, Sydney NSW 2000 Year Ended 30 June 2017 Investor Presentation Attached is a copy of the Breville Group Limited Investor Presentation for the Year Ended 30 June 2017. Yours f
Slide 2: Year End Results FY17 Investor Presentation
Breville Group Limited YEAR END RESULTS FY17 INVESTOR PRESENTATION August 2017 Breville
Slide 3: FY17 financial summary
AUDm FY17 FY16 % Chng For personal use only Revenue 605.7 576.6 5.1% • EBITDA 89.8 83.4 7.6% • EBIT 79.0 73.7 7.2% EBIT margin (%) 13.0% 12.8% • NPAT 53.8 50.2 7.3% Basic EPS (cents) 41.4 38.6 7.3% • ROE1 (%) 21.3% 21.0% Dividends per share • (cents) 30.5 28.5 7.0% • Interim 15.5 14.5 • Final 15.0 1
Slide 4: Revenue and EBIT by segment
REVENUE EBIT EBIT MARGIN (%) AUDm For personal use only FY17 FY16 % Chng FY17 FY16 % Chng FY17 FY16 Global Product 469.6 427.2 9.9% 72.4 65.1 11.1% 15.4% 15.3% % Change CC* 14.3% Distribution 136.2 149.4 (8.8%) 6.6 8.6 (22.5%) 4.9% 5.7% TOTAL 605.7 576.6 5.1% 79.0 73.7 7.2% 13.0% 12.8% • • • • 3
Slide 5: Global Product segment revenue
GLOBAL PRODUCT SEGMENT REVENUE AUDm For personal use only FY17 FY16 % Chng $A % Chng *CC North America 265.1 251.8 5.3% 9.8% Australia and New Zealand 114.1 93.2 22.4% 22.0% (ANZ) Rest of World 90.4 82.3 9.9% 18.9% TOTAL 469.6 427.2 9.9% 14.3% • • • 4
Slide 6: Balance sheet summary
AUDm FY17 FY16 For personal use only • Inventory 116.6 107.7 Receivables 106.4 89.5 Trade and other payables (94.8) (74.9) Working Capital 128.2 122.3 Fixed assets 10.7 11.8 • Intangibles 100.1 92.1 Other (liabilities)/assets (20.7) (16.3) • (net) NET ASSETS EMPLOYED 218.3 209.9 (Cash) (net) (41.3)
Slide 7: FY17 Inventory Position
FY17 Inventory Position Inventory / Trailing 12 month COGs* 1H FY17 2H FY17 BRG 26.3% 32.0% ANZ +UK 26.4%** North America 46.3% North America FY17 Inventory Position FY18 New Purchase Pattern a 46.3% Illustrative 15% 31.3% 26.3% 5% 33 New Front edge Products 1H FY18 Pre- Christmas Nespresso FY17 Yea
Slide 8: Growth Acceleration Framework
Growth Acceleration Framework More Larger Product Market Scalable, Acceleration Platform | Growth-oriented Business Model | 7 Breville
Slide 9: Breville Launch Support
For personal use only • • • Breville Launch Support 8
Slide 10: Improving In-Store Customer Experience
Improving In-Store Customer Experience Breville In Store Retailer Sales Associate Demonstration Program Training Program Breville
Slide 11: Example Launch with Retail Partner
Example Launch with Retail Partner Physical Store All Breville Demonstrators switch to Oracle Touch 6 Breville Product POS Card (on product) Booklet Outreach Media Harvey Norman executes TV and Radio Breville executes digital campaign Brev
Slide 12: Early Results: One Product, One Retailer
Early Results: One Product, One Retailer o Uploads ~ Most popular~ Grid .®. Miter rs E % = How to make an Enchanted The Barista Express Espresso How to make a Dragons Den Breville Smart Oven - The Best How to extract more nutrients Hous: Sago 618,711 views + 4 years ago 572,109 views + 2 ago 566,300
Slide 13: Expanding Sage brand in Europe
12 Expand e3 f « 4 2 Bw: g o YJ rey: Current in-market Sage brand — UKdirect model — Nordics & Baltics through partners ing “Sage” Brand 25 io re 2 g eo VY Tey eens ae on FY18 expansion — Czech Republic, et. al., through partner (in market 2H FY18) Breville
Slide 14: For personal use only
13 For personal use only • • • • • • • • ≈
Slide 15: For personal use only
14 For personal use only – – – – – – – –
Slide 16: Acceleration Program Scorecard
Acceleration Program Scorecard Key metrics to measure June 16 Dec 16 June 17 Dec 17 June 18 success* T poe eee s.r Inventory Lope Cost structure | posvsssoesstoeesneesnoe po ; H reallocation ©5535 Growthrate 9000 penne nee eee ee we == === 5 = += =e acceleration 2s t= +--+
Slide 17: Inventory as % of cost of sales
Inventory as % of cost of sales* FY17 1H17 BRG 32.0% 26.3% For personal use only ANZ + UK** 26.4% North America 46.3% • • ≈ • • • 16