Breville Group Limited · ASX:BRG
Breville — Shareholder Meeting (November 2016)
42 slides from Breville's shareholder meeting presentation, Nov 21, 2016
Slide 1: Annual General Meeting Presentations cover letter
21 November 2016 Manager, Company Announcements For personal use only ASX Limited Level 4, 20 Bridge Street Sydney NSW 2000 Dear Sir Breville Group Limited – Annual General Meeting Presentations Please find attached the Chairman’s Address to shareholders and CEO’s Review of Operations to be delivere
Slide 2: Chairman's Address (script)
21 November 2016 Chairman’s Address Slide 2 Good morning ladies and gentlemen and welcome to Breville Group Limited’s 2016 AGM. For personal use only Turn to Slide 3 The 2016 financial year has been a busy one for your Company, delivering a result with growth in both revenue and EBIT while simultane
Slide 3: Chairman's Address: cash flow and outlook (script)
Cash flow from operating activities of $52.3m was $6.6m higher compared to the prior year and net cash at year end was $36.1m, compared to $32.8m at the same time in the prior year. Jim will provide you with more detail when he addresses you including the changes to the supply chain process and mode
Slide 4: CEO's Review of Operations (script)
CEO’s Review of Operations Thank you, Steve. I’d like to welcome everyone to Breville’s Annual General Meeting. Thank you for taking the time to join us today. Turn to Slide 8 For personal use only I thought I’d start by giving everyone a summary of the numbers we reported in August for our FY16 res
Slide 5: Creatista product commentary (script)
What would happen if you combined the convenience of Nespresso capsule coffee … with the Barista-quality automatic milk of an Oracle? You’d get the Creatista. Turn to Slide 14 For context, this is an example of the print advertising for the Creatista … highlighting the ability to do latte art with a
Slide 6: Go-to-market commentary (script)
The Smart Oven Pro, a derivative of our current oven, that now meets the A13 regulatory requirements of the European market Turn to Slide 21 While the product team has been busy, they are not the only ones working hard. The Go- To-Market team has also been putting in the long hours to deliver agains
Slide 7: Transformation program update (script)
Turn to Slide 27 I’d now like to give you an update on our transformation program. Turn to Slide 28 In the 1H FY16 announcement, I described our go-forward transformation plan for For personal use only accelerating the business. Given the historical success of Breville’s product strategy, the answer
Slide 8: Go-to-market execution commentary (script)
Given that we already sell in 65 countries, the path to growing the Market is less about adding more countries and more about materially improving the effectiveness of our go- to-market execution in existing geographies. To accomplish this, the Go-To-Market team is in the process of re-architecting
Slide 9: Closing remarks (script)
The final measure, our EBIT growth rate, is an output of the transformation program vs. an input. For FY16/FY15, we saw a positive movement from being down (1.2%) in FY15/FY14 to a yr/yr increase of 5.9%. Obviously, this is heading in the right direction, though the real focus in the short term will
Slide 10: Breville Group Limited Annual General Meeting November 2016
Breville Group Limited For personal use only Annual General Meeting 21 November 2016
Slide 11: Chairman's Address
For personal use only Chairman’s Address Mr Steven Fisher 2
Slide 12: The transformation into a scalable, global, innovation-driven product company is underway
For personal use only “The transformation into a scalable, global, innovation- driven product company is underway” 3
Slide 13: Group FY16 Results Summary
Group FY16 Results Summary For personal use only % change FY16 from FY15 Revenue $576.6m 9.4% Earnings before interest and tax (EBIT) $73.7m 5.9% Net profit after taxation (NPAT) $50.2m 7.5% Earnings per share (EPS) 38.6 cps 7.5% Dividends per share (DPS) 28.5 cps 5.6% • Net Cash flows from operatio
Slide 14: Outlook
Outlook For personal use only • Successfully progressing through strategic transformation • Continued increased investment in product development, marketing and infrastructure improvement projects • Trading to end of October 2016 broadly in line with expectations • Business conditions, particularly
Slide 15: Thank you
Thank you For personal use only • Thank you — Breville team — Board colleagues — Suppliers, customers and consumers — Valued shareholders 6
Slide 16: CEO's Address
For personal use only CEO’s Address Mr Jim Clayton 7
Slide 17: AGM Agenda
AGM Agenda For personal use only • The Numbers • New Products & GTM • Transformation Program Update • Next Steps 8
Slide 18: Group Result Summary
Group Result Summary For personal use only Key points AUDm FY16 FY15 % Chng Steady revenue and EBIT growth Revenue 576.6 527.0 9.4% EBIT growth lower than EBITDA growth EBITDA 83.4 77.0 8.3% because of higher depreciation and EBIT 73.7 69.6 5.9% amortisation EBIT margin % impacted by increased
Slide 19: Segment Results Summary
Segment Results Summary Key points For personal use only REVENUE EBIT EBIT MARGIN (%) AUDm North America FY16 FY15 % Chng FY16 FY15 % Chng FY16 FY15 - Revenue growth of 10.3% (const. $) - More favourable mix drove margin North America 251.8 203.1 24.0% 43.6 31.9 36.9% 17.3% 15.7% improvement - con
Slide 20: Financial Position at June
Financial Position at 30 June Key points For personal use only AUDm FY16 FY15 Working capital Inventory 107.7 108.3 ‒ Inventory marginally lower than pcp, incrementally improving inventory turns Receivables 89.5 88.7 ‒ Payables decrease of $10.3m because of lower Trade and other payables (74.9) (8
Slide 21: AGM Agenda
AGM Agenda For personal use only • The Numbers • New Products & GTM • Transformation Program Update • Next Steps 12
Slide 22: What if you combined Nespresso capsule convenience with barista-quality milk
What if you combined For personal use only the convenience of Nespresso capsule coffee... … with barista-quality automatic milk from the Breville Oracle®? 13
Slide 23: TV Commercial link
For personal use only TV Commercial link
Slide 24: Introducing the Creatista range
Introducing the Creatista range For personal use only Creatista Plus Creatista Key Features • One touch Automatic Steam Wand Barista-Quality Milk (Latte Art). • Adjustable temperature control … get the beverage at exactly the right temperature. • Fastest espresso . . . 3 second (Plus) or 10 second h
Slide 25: But wait... there's more
For personal use only But wait... there’s more What if this amazing machine was combined with a new premium range of benchtop appliances … 16
Slide 26: Introducing the Luxe Collection
Introducing the Luxe Collection For personal use only the Bakery Boss™ the Soft Top™ Luxe the Creatista the Toast Select™ Luxe 17
Slide 27: The Luxe Colour Range
The Luxe Colour Range For personal use only 18
Slide 28: New Products
For personal use only 19 New Products
Slide 29: New products: Smoking Gun, Perfect Press, Smart Oven
The Smoking Gun The Perfect Press For personal use only The Smart Oven Air The Smart Oven Pro 20
Slide 30: For personal use only
For personal use only 21
Slide 31: Go To Market Transformation
Go To Market Transformation For personal use only Every Screen Last Few Steps Culture of Launch 22
Slide 32: Coffee Campaign: Every Screen
COFFEE CAMPAIGN For personal use only Every Screen 23
Slide 33: The Smoking Gun: Every Screen
THE SMOKING GUN Every Screen For personal use only 24
Slide 34: Last Few Feet
For personal use only 25 Last Few Feet
Slide 35: Culture of Launch
Culture of Launch For personal use only Activity Launch Calendar Launch Markets Mass Production Australia Marketing & Content Strategy New Zealand Retailer Meetings (NDA) USA Creative Development Canada Long Lead Media (Embargo) Russia Product Review Seeding United Kingdom Sales/Demo Training Retail
Slide 36: AGM Agenda
AGM Agenda For personal use only • The Numbers • New Products & GTM • Transformation Program Update • Next Steps 27
Slide 37: Transformation Plan
Transformation Plan For personal use only “Selling more Products into a larger Market on a corporate Platform designed to scale efficiently and effectively.” 28
Slide 38: Scalable Platform Update
Scalable Platform Update For personal use only • Moved from holding company structure with regional businesses into a Corporate global structure with sales regions Structure • Separated global business from ANZ Regional business • Completed transition from 5 independent supply chains to a single, gl
Slide 39: Product & Market Update
Product & Market Update For personal use only • Beginning migration from spending 8.0-8.5% of Net Sales on Marketing and Business R&D to a business model spending ≈12.0% of Net Sales on Marketing and Model R&D • Learning how to shorten the development cycle when it makes sense Product (Creatista ini
Slide 40: AGM Agenda
AGM Agenda For personal use only • The Numbers • New Products & GTM • Transformation Program Update • Next Steps 31
Slide 41: Transformation: Next Steps
Transformation: Next Steps For personal use only Scalable platform Infrastructure on track … finish implementations Organisational learning to work effectively in new model Product / go-to-market levers Continue to work on new product process acceleration, building on early success Execute g
Slide 42: Transformation Scorecard
Transformation Scorecard Key metrics to For personal use only measure success* June 16 Dec 16 June 17 Dec 17 June 18 Inventory Cost structure re-allocation Growth rate acceleration Inventory Slightly improved inventory turns FY16 vs. FY15 Trade payables reduction leading indicator of change, res