Breville Group Limited · ASX:BRG
Breville — Investor Presentation (August 2018)
21 slides from Breville's investor presentation, Aug 16, 2018
Slide 1: Year Ended 30 June 2018 Investor Presentation
16 August 2018 Manager, Company Announcements, Australian Securities Exchange Limited, 20 Bridge Street, Sydney NSW 2000 Year Ended 30 June 2018 Investor Presentation Attached is a copy of the Breville Group Limited Investor Presentation for the Year Ended 30 June 2018. Yours faithfully Sasha Kitto
Slide 2: Year End Results FY18
Breville Group Limited YEAR END RESULTS FY18 INVESTOR PRESENTATION August 2018
Slide 3: Group Summary Result
Group Summary Result AUDm FY18 FY17 % Chng Key points Revenue 652.3 605.7 7.7% • Group revenue 8.7% higher in constant currency EBITDA 100.2 89.8 11.6% • EBIT vs. EBITDA growth rate differential reflecting continued EBIT 86.9 79.0 10.0% investment in R&D • EBIT growth trend continues, EBIT margin (%
Slide 4: Segment Results
Segment Results REVENUE EBIT EBIT MARGIN (%) AUDm FY18 FY17 % Chng FY18 FY17 % Chng FY18 FY17 Global Product 526.9 469.6 12.2% 73.3 72.4 1.2% 13.9% 15.4% % Change CC* 13.4% Distribution 125.5 136.2 (7.8%) 13.6 6.6 106.1% 10.8% 4.9% TOTAL 652.3 605.7 7.7% 86.9 79.0 10.0% 13.3% 13.0% Minor differences
Slide 5: Segment Results cont’d
Segment Results cont’d GLOBAL PRODUCT SEGMENT REVENUE AUDm FY18 FY17 % Chng $A % Chng CC* North America 303.6 265.1 14.5% 16.3% Australia and New Zealand 123.9 114.1 8.6% 9.1% (ANZ) Rest of World 99.4 90.4 9.9% 10.7% TOTAL 526.9 469.6 12.2% 13.4% *CC – Constant Currency Key points The Global Product
Slide 6: Financial Position at 30 June
Financial Position at 30 June AUDm FY18 FY17 Key points • Inventory declined $16.9m as the Inventory 99.7 116.6 Nespresso® inventory bubble in FY17 Receivables 104.4 106.4 flattened out, the adjusted holiday Trade and other payables (84.6) (94.8) ramp up pattern and the sales & operations process co
Slide 7: Growth Acceleration Framework
Growth Acceleration Framework More Larger Product Market Acceleration Program Trajectory EBIT Scalable, Acceleration Platform Historical Trajectory Growth-oriented Business Model Time 6
Slide 8: From Product Development to Commercialisation
From Product Development to Commercialisation “Customer Segment Thinking” Range Product Range Product “Food Thinking” 7
Slide 9: Coordinated Range
Coordinated Range Common Design Language Common Colour Pallet 8
Slide 10: Pulling Innovation Through the Range
Pulling Innovation Through the Range ThermoJet TM Heating System Achieves optimal extraction temperature in 3 Seconds Barista ExpressTM Pro BambinoTM Plus Barista TouchTM Creatista ® Pro Creatista ® Uno 9
Slide 11: Extending Innovation to New Customer Segments
Extending Innovation to New Customer Segments Barista ExpressTM Pro BambinoTM Plus • Delivers the 4 elements of cafe quality coffee • 1st compact espresso machine to meet the 4 • 3 second heat up time: ThermoJetTM heating elements of cafe quality coffee* system • 3 second heat up time: ThermoJetTM h
Slide 12: Pulling Innovation Through the Range (cont.)
Pulling Innovation Through the Range (cont.) Smart OvenTM Air Smart OvenTM Pro Smart OvenTM Smart OvenTM Compact Smart Mini Smart OvenTM Compact Convection OvenTM Element IQ ® Puts the Right Amount of Heat in the Right Places Smart OvenTM Pizzaiolo 11
Slide 13: The Smart Oven Pizzaiolo
The Smart OvenTM Pizzaiolo Food Science: The secret to a perfect Neapolitan pizza is cooking it in less than 2 minutes* 400°C First electric domestic pizza oven capable of replicating commercial wood-fired oven performance * In Search of Perfection, Pizza, Season 1: Episode 5 (https://vimeo.com/3443
Slide 14: First Breville “Brand Launch”
First Breville “Brand Launch” Seed Tease Launch Accelerate Apr - June Jul - Sep Oct Nov – Mar19 We stress tested the product with leading Pizzaiolos and Professional Chefs across New York, Chicago, Sydney, San Francisco, Portland and Los Angeles Here are the (restaurant-worthy) results: 13
Slide 15: First Breville “Brand Launch” (cont.)
First Breville “Brand Launch” (cont.) Seed Tease Launch Accelerate Apr - June Jul - Sep Oct Nov – Mar19 • Launched Pizzaiolo microsite: www.smartovenpizzaiolo.breville.com/us • Joint launch with Williams Sonoma® - Williams Sonoma® Holiday press day - Physical infrastructure (kitchens) • Digital camp
Slide 16: Our Vision
Our Vision Inspire consumers to make every food moment a perfect occasion – “Master Every Moment” Our Mission To make the process a pleasure and the end result perfect, every time – “Provide Mastery in a Box” Our Guiding Principles 1. Define the perfect result. Then let you personalise it. 2. Innova
Slide 17: Europe Update: Germany / Austria
Europe Update: Germany / Austria • Launched April 1st as planned • Team complete, supply chain automated • Currently transacting through approximately 600 doors • Premium in-store positioning, Saturn, Hamburg supported by demonstration • Take over Creatista® range January 1, 2019 16
Slide 18: Europe Update: Beyond Germany / Austria
Europe Update: Beyond Germany / Austria • Expect to enter FY18 direct Sage Benelux/Switzerland Sage markets before end of FY19 distributor markets • Will result in ≈ $1M headwind for FY19 FY19 new direct Sage markets Sage IFA Presence BRG Warehouse Sage partners now being served by European warehous
Slide 19: Acceleration Program Update
Acceleration Program Update • Continued to expand organisational capability: CFO, Organisation CTO, AU Sales, and NA Sales Ops • Entire logistics system now leveraging 3PLs Operations • Germany/Austria transactions fully automated • Phasing in serialisation, expanding co-planning • Rolling out chat
Slide 20: Acceleration Program Update (cont.)
Acceleration Program Update (cont.) Inventory as % of cost of sales* FY18 1H FY18 FY17 Inventory BRG 27.0% 30.9% 32.3% BRG with 12 month COS** 24.7% 27.7% 29.3% * Cost of sales comprises only the cost of inventory ** Excludes inventory and cost of sales from Nestle® Dolce Gusto®, Aquaport® and Europ
Slide 21: Acceleration Program Scorecard
Acceleration Program Scorecard Acceleration Program Scorecard FY15 FY16 FY17 FY18 FY18/FY15 BRG Revenue (AUDm) 527.0 576.6 605.7 652.3 23.8% Global Segment 373.3 427.2 469.6 526.9 41.1% Distribution Segment 153.7 149.4 136.2 125.5 (18.4%) EBIT 69.6 73.7 79.0 86.9 24.9% EBIT Yr/Yr Growth (1.2%) 5.9%