Slide 1: F24 Results Presentation
Endeavour Group F24 Results Presentation The Manly Hotel, Manly QLD
Slide 2: Overview and Group Strategy
Overview and Group Strategy Steve Donohue, CEO The Brook Hotel, Mitchelton QLD
Slide 3: Acknowledgement of country
Acknowledgement of country Artwork: Celebration Place by Riki Salam Mualgal, Kaurareg, Kuku Yalanji)
Slide 4: Creating a more sociable future, together
Creating a more sociable future, together 4
Slide 5: Group highlights
Group highlights “e. endeavour MMe = ys group > %
Slide 6: F24 at a glance - Resilience and execution
F24 at a glance - Resilience and execution ● Resilient trading performance delivers sales growth in Retail and Hotels ● EBIT growth driven by gross margin expansion and cost optimisation ● Focused strategy execution with emphasis on streamlining and simplifying the business ● Disciplined capital man
Slide 7: F24 financial highlights
F24 financial highlights Financial strength Delivering Revenue & earnings & capital discipline for shareholders $12.3b 3.6% $1.2b F23 $767m 28.6c 3.1% 52W 1.8% Operating cash flow Earnings per share Sales $1.1b 3.1% 108% Target: 90110% 21.8c In line with F23 EBIT 52W 1.8% Cash realisation r
Slide 8: Consistent delivery driving stable growth and returns
Consistent delivery driving stable growth and returns Group Sales of $12.3b Group EBIT of $1.1b 2.0% CAGR 5.5% CAGR EPS of 28.6c DPS of 21.8c 4.9% CAGR 3.9% CAGR n.a. 8 Note: F24 results are on a 53-week basis.
Slide 9: Delivering our strategy
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Slide 10: Our vision is to be the leading platform enabling social occasions
Australiaʼs #1 large format Our vision is to be the Australiaʼs largest network of hospitality drinks retailer and the destination for value, leading platform venues range and service enabling social Shared Social occasions Customer Australiaʼs largest Portfolio of exclusive and most convenient bran
Slide 11: We are positioned to deliver value for our stakeholders
We are positioned to deliver value for our stakeholders Attractive business Simple, scalable, customer-first strategy Creating value fundamentals Network scale Create meaningful experiences for our shared social customer Customers Australiaʼs largest retail drinks and Convenience, range, value and h
Slide 12: Delivering on our strategy scorecard commitments
Delivering on our strategy scorecard commitments ● Customer value: Dan Murphyʼs achieved highest ever price leadership gap to nearest competitor1; value perception 26 pts Shared customer ahead of competition2 foundations ● Customer experience: VOC 2 pts to 81 in Dan Murphyʼs and 1 pts to 75 in BW
Slide 13: Customer focus driving strong performance
Customer focus driving strong performance F24 highlights F24 highlights F24 highlights F24 highlights ● 5.4m My Danʼs active ● ‘Appy Dealsʼ member prices ● $1.8b sales growing over 4% ● Price benchmarking2 confirms members 250k, 83% scan launched, increasing Monthly leading value position in F&B
Slide 14: One Endeavour program update
One Endeavour program update Continuing to make progress Project timeline F23 F24 F25 F26 F27 F28/29 ● Implemented lease and spend (non Completed and Inflight trade) management systems for the Spend Management Complete group Property Lease Management Complete ● People systems separation and consolid
Slide 15: Creating our positive imprint
Creating our positive imprint People Responsibility and Community Planet Championing individuality, Advocating responsible choices and supporting positive Reducing our impact human and personal rights change in our communities on the planet Voice of team 44m customer engagements in responsible consu
Slide 16: Group Financials
Group Financials Kate Beattie, CFO New Brighton Hotel, Manly NSW
Slide 17: Resilient Group financial performance
Resilient Group financial performance F24 F23 CHANGE $ million 53 WEEKS 52 WEEKS CHANGE 52 WEEKS Sales 12,309 11,884 3.6% 1.8% ● Sales growth of 3.6% 1.8% 52W Operating Retail EBIT 717 677 5.9% 4.7% Operating Hotels EBIT 451 435 3.7% 1.8% ● Operating EBIT growth 4.9% 3.4% 52W underpinn
Slide 18: Strong cash generation
Strong cash generation F24 F23 ● Strong cash realisation ratio of 108% $ million 53 WEEKS 52 WEEKS CHANGE ● Improved working capital from lower inventory with unit EBIT 1,055 1,023 32 volume reduction more than offsetting COGS inflation and Depreciation and amortisation network expansion expense
Slide 19: Ample flexibility and funding capacity
Ample flexibility and funding capacity Net debt Net debt reduction of $55 million ● Net debt reduced by $55m $1,927m $1,872m ● Leverage ratio1 of 3.5x within target range and consistent with investment grade credit metrics ● Refinanced syndicated debt facility originally maturing June 2025, extendin
Slide 20: Disciplined capital expenditure
Disciplined capital expenditure $ million F24 Capex1 F23 Capex2 Change ● Total capital expenditure $64m lower Stay in business 85 48 37 than F23 Renewals 43 61 18 ● Retail SIB non-recurring catch up in store Pinnacle 47 48 1 IT, paused during COVID Network expansion 48 52 4 ● Fewer and more ca
Slide 21: Retail
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Slide 22: Retail financial performance
Retail financial performance ● Sales growth of 3.4% 52W 1.7%) delivered in softening market conditions; BWS and Dan Murphy's comparable store sales growth 1.1% 52W ● GP margin expansion supported by product innovation and AI-driven price and promotion optimisation which funded price investmen
Slide 23: Hotels
Hotels The Manly Hotel, Manly QLD
Slide 24: Hotels financial performance
Hotels financial performance ● Sales growth 52W) of 2.3% driven by strong F&B sales, with all drivers in growth in H2; Comparable hotel sales growth 1.5% 52W ● Gaming momentum supported by targeted investment in new product, mitigating early adoption of changes to Vic gaming hours ● GP margin e
Slide 25: Good progress on our Property strategy
Good progress on our Property strategy Optimising our Property portfolio Disciplined portfolio management The Morris WA Dublin Docks QLD ● Improving portfolio quality with two acquisitions and two divestments; one further divestment post balance date Before ● Progressing our strong renewal pipel
Slide 26: Promising early returns from recent investments
Promising early returns from recent investments The Manly Hotel The Gap Tavern The Brook Hotel Brisbane, QLD Brisbane, QLD Brisbane, QLD ● Venue tailored for local demographic ● 15+ years since last renewal ● Whole of venue redevelopment with updated facade, renovated front including new Dan M
Slide 27: Outlook
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Slide 28: F25 priorities
F25 priorities Maximise returns from existing asset base and grow network ● Maintain price competitiveness, grow new stores and comparable store sales, maintain EBIT margins Accelerate delivery of our strategy ● Progressing towards unlocking the $150m EBIT opportunity, outlined at the Hotels Investo
Slide 29: F25 outlook
F25 outlook ● Early underlying sales momentum improving ● Price leadership and value focus attracting an increasingly value-conscious consumer ● Looking ahead to key H1 trading events as the go-to brands and venues for social occasions ● Responding to cost inflation by tightly managing CODB ● Struct
Slide 30: Committed to shareholder value creation per our Strategy Scorecard
Committed to shareholder value creation per our Strategy Scorecard Revenue Grow revenue at or above market Earnings Mid-to-high single digit EBIT growth Sustainably Grow margin Capital discipline Cash conversion ratio of 90110% Targeting Expand ROFE long-term Financial strength shareholder value Ma
Slide 31: Q&A
Q&A Steve Donohue Chief Executive Officer Kate Beattie Chief Financial Officer
Slide 32: Appendix
Appendix endeavour group Wy My aS AAs
Slide 33: Our strategy scorecard
Our strategy scorecard Planning Progressing Achieving Off Plan Shared customer Efficient end-to-end Capital allocation to One team living our Positive and sustainable Deliver shareholder foundations business drive growth purpose and values imprint returns Drive revenue growth through Grow earnings a
Slide 34: Capital management framework supports growth and shareholder returns
Capital management framework supports growth and shareholder returns Operating cash flow 90110% cash realisation) Targeting investment grade credit metrics Dividends Lease liability Sustaining CAPEX ● Free cash flow deployed to dividends, capex, and debt reduction or returned 7075% repayment ● St
Slide 35: One Endeavour technology program overview
One Endeavour technology program overview Separate and simplify our technology landscape Establishing group-wide, ERP fit-for-purpose core systems ＞ Separating our Retail business from Woolworths grocery and general merchandise technology ＞ Largest systems include ERP, Stores Infrastructure and Appl
Slide 36: Network
Network 1 275 9 Dan Murphyʼs stores2 17 5 56 427 1,453 18 BWS stores 27 144 137 27 1 19 101 38 354 Hotels (incl. managed clubs) Key: 2 3 86 397 55 Dan Murphyʼs BWS 84 331 86 1 6 Wineries Hotels (incl clubs) Wineries 3 3 36 6 1 1 Bottling facilities Bottling facilities 1. As at 30 June 2024. 2. Inc
Slide 37: Group sales composition
Group sales F241 F23 CHANGE BWS and Dan Murphy's 81.2% 81.1% 9 bps composition Specialty 2 2.1% 2.3% 17 bps Gaming 6.7% 6.8% 11 bps Bars 5.1% 5.0% 8 bps Food 3.8% 3.7% 8 bps Accommodation 0.8% 0.8% 2 bps Other Hotels 0.3% 0.3% 2 bps Total 100.0% 100.0% 1. 52-week basis. 2. Specialty includes Jimmy
Slide 38: Group financial performance
F24 F23 CHANGE Group $ million 53 WEEKS 52 WEEKS CHANGE 52 WEEKS financial Sales Retail 10,246 9,905 3.4% 1.7% performance Hotels 2,063 1,979 4.2% 2.3% Total sales 12,309 11,884 3.6% 1.8% Profit for the period Operating Retail EBIT 717 677 5.9% 4.7% Operating Hotels EBIT 451 435 3.7% 1.8% Othe
Slide 39: Balance sheet
F24 F23 Balance $ million 30 JUNE 2024 25 JUNE 2023 Change sheet Trade working capital Lease assets 725 3,201 778 3,197 53 4 Property, plant and equipment 2,234 2,095 139 Intangible assets 4,274 4,260 14 Other liabilities (net) 710 731 21 Funds employed 9,724 9,599 125 Tax liabilities (net) 20
Slide 40: Cash flow
Cash flow $ million F24 53 WEEKS F23 52 WEEKS CHANGE EBIT 1,055 1,023 32 Depreciation and amortisation expenses 607 573 34 Changes in trade working capital 68 261 329 Changes in assets and liabilities and other non-cash items 17 67 84 Finance costs on borrowings paid 117 61 56 Paymen
Slide 41: Historical financial performance
Historical financial performance1 COVID19 unwind / Pre COVID19 COVID19 Post COVID19 Retail H1 F19 H2 F19 H1 F20 H2 F20 H1 F21 H2 F21 H1 F22 H2 F22 H1 F23 H2 F23 H1 F24 H2 F24 Sales $M 4,564 3,889 4,777 4,509 5,690 4,488 5,657 4,429 5,446 4,459 5,583 4,491 Operating EBIT 316 222 338 231 419 250
Slide 42: Summary of forward looking statements
Summary of forward looking statements Area Description We are targeting cumulative optimisation savings of $290 million+ by F26, with $190 million delivered as at end F24, to Group optimisation mitigate inflationary pressures and enable continued investment in line with strategy. Effective tax rate
Slide 43: Comparative figures
Comparative figures Normalised 52-week Equivalent F19 Information, Equivalent F20 Information and 52-week F24 Information Woolworths' Drinks and Hotels businesses were transferred to, and merged The financial year 2023 F23) comprised 52 weeks, while financial year 2024 with, Endeavour Group Limited
Slide 44: Glossary
Glossary Term Description CAGR Compound annual growth rate Cash realisation ratio Operating cash flow as a percentage of Group profit for the year after income tax but before depreciation and amortisation Cost of doing business CODB Expenses which relate to the operation of the business eCommerce
Slide 45: Disclaimers
Disclaimers This presentation is dated 26 August 2024 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, the Group, or Endeavour Group), and Endeavour Group