Endeavour Group Ltd · ASX:EDV
Endeavour — Investor Day (May 2022)
52 slides from Endeavour's investor day presentation, May 27, 2022
Slide 1: Endeavour Group's Investor Days
Endeavour Group’s Investor Days Sydney: Friday, 27 May 2022 Attached for release to the market are the presentations that will be given today on the second day of Endeavour Group’s Investor Days being held on 26-27 May 2022. The release of this announcement was authorised by the Disclosure Committee
Slide 2: Investor Days, Day Two
Hello Gorgeous, Newstead, QLD Investor Days 26 - 27 May 2022 Day Two
Slide 3: Acknowledgement of Country
Acknowledgement of Country Calling Country Whale Gadigal People
Slide 4: Sustainability
Sustainability Steve Donohue Chief Executive Officer Dan Holland Director, Corporate Affairs and Sustainability Dan Murphy’s, Double Bay, NSW
Slide 5: A positive imprint, made together
OUR WAYS OF WORKING We work with spirit OUR PURPOSE We’re team players Creating a We endeavour for better more sociable future OUR VALUES We’re real together We’re inclusive We’re responsible OUR SUSTAINABILITY AMBITION A positive imprint, made together
Slide 6: We've made good progress since the demerger
We’ve made good progress since the demerger AUGUST 2021 OCTOBER 2021 TO COME IN 2022 F23+ • Outlined broad Launched our Sustainability • Release our first report • Continue to strengthen sustainability agenda in Strategy including: against our Sustainability our TCFD disclosures Endeavour Group’s fi
Slide 7: Our sustainability principles
Our sustainability principles SUSTAINABILITY SUSTAINABILITY SUSTAINABILITY PRINCIPLE 1 PRINCIPLE 2 PRINCIPLE 3 Responsibility People Planet and Community Advocating responsible Championing individuality, Reducing our impact choices and supporting human and personal rights on the planet positive chan
Slide 8: Responsibility and Community
Responsibility and Community Advocating responsible choices and supporting positive change in our communities Goals 1 Demonstrate leadership in the responsible service of alcohol and gambling 2 Enable customers to make informed decisions about our products and services to encourage responsible consu
Slide 9: Our Responsibility & Community commitments
Responsibility and Community Our Responsibility & Community commitments We have 14 Responsibility & Community commitments including: 100% 100% 5m 20% Train 100% of team Achieve 100% Reach 5 million Link 20% of Long members in the compliance with people with Term Incentive principles of industry code
Slide 10: Responsible gambling: major initiatives
Responsibility and Community Responsible gambling: major initiatives Demonstrate leadership Institute best practices in our Use technology to build trust and venues set new standards • With our Responsible Gaming Charter and • Implement nationally • Installed voluntary independent audits consistent
Slide 11: Case study: ALeRT BETTOR Protection System
Case study ALeRT BETTOR Protection System • Partnered with Focal Research, a global leader in the area of gambling and advanced analytics, to progressively roll-out ALeRT BETTOR system to ALH venues • This will be the first Australian rollout of this market-leading technology • System uses predictiv
Slide 12: Case study: Anti Money Laundering (AML)
Case study Anti Money Laundering (AML) We are required to keep specific details of how our AML/Counter Terrorism Financing Program operates confidential, however, it’s independently reviewed biennially and regularly updated Smaller gaming rooms • Fewer machines per venue than other types of operatio
Slide 13: Responsible Service of Alcohol: major initiatives
Jimmy Brings On-Demand Delivery Responsibility and Community Responsible Service of Alcohol: major initiatives Go beyond regulatory obligations by asking for ID if a shopper looks under 25 and aiming to stop secondary supply through our “Don’t Buy it For Them” policy and campaign Collaborate with in
Slide 14: Community major initiatives
Responsibility and Community Community major initiatives Generate a measurable, positive impact in the communities we serve • Together with customers, donated $3.1m in F21 to national and local charities such as GIVIT and Very Special Kids • Continuously engage with communities through our ESG revie
Slide 15: People
People Championing individuality, human and personal rights Goals Create a safe, inclusive workplace where our teams are 1 trained and empowered 2 Respect and promote human rights and ethics in our operations and supply chain 3 Respect our customers’ privacy and acknowledge the importance of robust
Slide 16: Our People commitments
People Our People commitments We have 10 People commitments for example: 40:40:20 Bronze Information Responsible Achieve Board and senior Tier status Security Sourcing leadership diversity balance By 2025, achieve Respect our Manage an effective of 40:40:20 and build Bronze Tier employer customers’
Slide 17: Planet
Planet Reducing our impact on the planet Goals 1 Demonstrate our commitment to addressing climate change and reducing our carbon footprint 2 Adopt and maintain sustainable practices in our use of natural resources 3 Enhance the circularity of our products and our industry
Slide 18: Our Planet commitments
Planet Our Planet commitments We have 10 Planet commitments including: Natural 100% Zero Resources 100% By 2030, source By 2050, Adopt and maintain By 2025, 100% of all 100% renewable have net zero sustainable practices Pinnacle Drinks own electricity to power emissions in our use of natural brand p
Slide 19: In summary
In summary ● Sustainability is central to our purpose, values and ways of working and forms the basis for our social license to operate ● Our Sustainability Strategy outlines how we’ll create a positive imprint in three key areas: Responsibility and Community; People; and Planet ● We’re focused on m
Slide 20: Q&A Sustainability
Isabel Estate, Marlborough, New Zealand Q&A Sustainability
Slide 21: Claire Smith, Director, endeavourX
Claire Smith Director, endeavourX Personalisation squads workshop at the Harlequin Inn, Pyrmont, NSW
Slide 22: endeavourX at a glance: we manage the Group's digital platform
endeavourX at a glance: we manage the Group’s digital platform Websites & apps Membership programs eCommerce Group capabilities The front door to our brands Understanding and creating Providing easier ways to shop Providing digital capabilities to for all customers value for our most engaged as our
Slide 23: endeavourX at a glance
endeavourX at a glance Our assets 129m Total online web traffic ~1m Monthly active app users across ~4.4m Active retail loyalty members Group Our capabilities ~350 Team 7.5m Average number of personalised 35% Dan’s and BWS on-demand orders conversations initiated fulfilled via Jimmy per week (Q3 22)
Slide 24: Scale of our digital platform drives leading CX across our brands
Scale of our digital platform drives leading CX across our brands Deep understanding of Industry-leading personalised A growing, profitable Our digital talent and customers and journeys recommendations eCommerce business agile ways of working We’re focused on improving We’ve developed a unique, Our
Slide 25: Deep understanding of customers and their journeys
Deep understanding of customers and their journeys ENTICE BROWSE BUY FULFILL LOYALTY ROBIS TIME ON SITE ONLINE CONVERSION PICK-UP % ANNUAL SPEND 30% 25 MIN 4.5% 41% $3000 PREMIUM HOME PAGE EXPLORERS PDP PICK UP PRICE-SENSITIVE EXPLORERS SEARCH CART & CHECKOUT DELIVERY REPEAT QUICK QUALITY NAVIGATION
Slide 26: Currently working on ~65 initiatives across customer journey
Currently working on ~65 initiatives across customer journey ENTICE BROWSE BUY FULFILL LOYALTY ~20 initiatives ~10 initiatives ~15 initiatives ~10 initiatives ~10 initiatives BWS Cooler 3.0 with Dan Murphy’s Proof of Concept New team app for Hotels app and in-store and online in-app personalised bas
Slide 27: Industry-leading personalised recommendations
Industry-leading personalised recommendations Personalisation engine integrates Developed deep personalisation capability over time 4 core capabilities • Created Retail Single Customer View Action incubator F19 • ~2m active My Dan’s members and scan rate ~40% Cross functional team develop modular co
Slide 28: Our unique personalisation capabilities deliver recommendations
Our unique personalisation capabilities deliver recommendations based on customer patterns Three key components to our automated Machine Learning (ML) system 1 2 3 Hyperion ML Framework Cerberus Ensemble Model Dionysus Neural Network Recommendations based on Recommendations Recommendations previous
Slide 29: Blending our art with science makes recommendations resonate
Blending our art with science makes our recommendations resonate with customers Oenophile’s pick… Existing product dimensions don’t fully explain product clusters • Price range: wide range from $15 to $999, mostly above $40 • Varietals: mixed • Region and state: mixed • Total sales volume: $83m per
Slide 30: Growing and profitable eCommerce business
Growing and profitable eCommerce business Steadily built fulfillment capabilities and were well Our eCommerce business is profitable due positioned to meet customer needs during COVID-19 to our network, scale and focus on healthy baskets Store network and fulfillment capabilities 2012 • Dan’s offers
Slide 31: Enabled by our digital talent and agile ways of working
Enabled by our digital talent and agile ways of working Committed to agile and product-led ways of working and ongoing evolution Organised in four outcome focused tribes, deeply connected to our businesses and supported by our practices and chapters Fostered a culture that genuinely supports flexibi
Slide 32: Looking ahead, we will drive growth by uplifting BWS and ALH
Looking ahead, we will drive growth by uplifting BWS and ALH and continuing to mature Dan Murphy’s Monetisation & extensions Creating new income streams Multi-moment and services Dynamic optimised omni-channel experiences EFFECTIVENESS Connected Personalisation & integration Emerging Engagement & co
Slide 33: In summary
In summary • Our digital platforms enable leading customer experiences and omni-channel growth • We create scale by leveraging investment and capability across our portfolio of brands • Looking ahead, we see opportunities to drive growth by uplifting BWS and ALH's digital experience while continuing
Slide 34: Q&A
O&A endeavour *
Slide 35: Pinnacle Drinks
Pinnacle Drinks Paul Walton Director, Pinnacle Drinks Krondorf Cellar Door, Barossa Valley, SA
Slide 36: Pinnacle at a glance
Pinnacle at a glance Our customer reach Our growth Our premium customers and margin Top 4 +50% 116% Growth in Pinnacle sales Branded liquor supplier in Over-index with since F19 total Australian retail by premium customers sales (#1 in wine) vs. total Endeavour 69% 3x +35% Sales growth vs. Margin ac
Slide 37: Pinnacle History
Pinnacle 1859 Inaugural brand Stonyfell releases first wines History Pinnacle Drinks is a customer focused brand 2004 Woolworths Liquor Brands established builder which has evolved through a series of targeted investments, initiatives and 2011 Acquired Cellarmasters business partnerships 2014 Commen
Slide 38: Pinnacle Journey
Pinnacle’s focus on crafting quality sees the Pinnacle Journey portfolio growing fastest in premium brands Distribution of Pinnacle wine sales 528 Awards received in F21, including 10 best in class trophies and growth over 3 years The Ethereal One Fleurieu Grenache first Premium Imports Category Rol
Slide 39: Together, we craft brands people love
‘Together, we craft brands people love’ Krondorf Cellar Door, Barossa Valley, SA
Slide 40: Pinnacle operates end-to-end across Endeavour's value chain
Pinnacle operates end-to-end across Endeavour’s value chain Raw Materials Production Assets & Insights, NPD & Brand Distribution Owned strategic super Supplier Partnerships Building Channels premium vineyards Premium commercial winery Customer insights and category Endeavour core retail AU/NZ premiu
Slide 41: Pinnacle creates value for Endeavour Group in five key ways
Pinnacle creates value for Endeavour Group in five key ways Lead in Trends Invigorate Unlock Growth Differentiation Lead in and Innovation Categories and Opportunities and Team Sustainability Delight customers with Enhance Margin Activate growth in Advocacy Leverage viticulture, quality brands and n
Slide 42: Rainbird Seltzer
Delight customers with quality brands and products that lead trends by leveraging our insights and capabilities Leveraged Endeavour and global insights to develop and launch brand at rapid speed One of the first brands launched in the emerging seltzer category in Lead in Trends September 2020 and In
Slide 43: Enhance Margin
Invigorate Categories and Enhance Margin Simplify the value chain, invigorate categories, while providing customers greater choice Endeavour was underpenetrated in premium wine, presenting customer growth and margin opportunity Established Paragon in 2019 to house Endeavour’s premium wine brands fro
Slide 44: New Channels
Unlock Growth Opportunities Activate growth in new channels and New Channels geographies, while building our portfolio via targeted M&A opportunities Establishing foundations to grow in: Hotels On Demand DAN PICKED Subscriptions Restaurants & Travel Branded Export Delivering 67%* growth F22 YTD *Exc
Slide 45: Loud & Proud
Energise store and venue teams around our brands, to delight customers, including bold in-store activations Endeavour Proud Committee identified an opportunity to support the LGBTQIA+ community <8 weeks before Mardi Gras Developed ‘Loud & Proud’ products Differentiation and ranged in every BWS and D
Slide 46: Chapel Hill
Lead in Sustainability Leverage viticulture, manufacturing and Chapel Hill brand capabilities to lead in sustainability across our industry Chapel Hill team and passionate viticulturist Rachel Steer identified opportunities to implement more sustainable practices Installed major solar systems and wa
Slide 47: Pinnacle Drinks in summary
Pinnacle Drinks in summary Pinnacle Drinks is a customer focused brand builder which has evolved through a series of targeted investments, initiatives and partnerships Five key ways we enable Endeavour: - Lead in Trends and Innovation - Invigorate Categories and Enhance Margin - Unlock Growth Opport
Slide 48: Q&A
Q&A Josef Chromy, Tasmania
Slide 49: Conclusion
Conclusion Steve Donohue Chief Executive Officer Coopers Ale House, Gepps Cross, SA
Slide 50: In summary
In summary In our first year we: Looking ahead, we’re focused on: Delivered one of the largest demergers in Navigating headwinds Australian history Continuing to build out the foundations for our United our team around a common purpose, future growth values, ways of working and vision Leveraging our
Slide 51: Thank you
Thank you Dancaption Photo Murphy’s, Gawler, SA here
Slide 52: Disclaimers
Disclaimers This presentation is dated 27 May 2022 and unless stated otherwise is current as at that date. This presentation contains summary and general information about Endeavour Group Limited and its controlled entities (together, ‘Endeavour Group’), and Endeavour Group’s activities as at the da