Collins Foods Limited · ASX:CKF
Collins Foods — FY2016 Earnings Presentation
21 slides from Collins Foods's earnings presentation, Jun 28, 2016
Slide 1: FY16 Financial Year Results
For personal use only COLLINS FOODS LIMITED FY16 FINANCIAL YEAR RESULTS 28 June 2016
Slide 2: FY16: growth across all key financial metrics
FY16: growth across all key financial metrics For personal use only FY15 FY16 FY16 FY16 Change vs • Underlying NPAT up 22.3% to $30.1m Underlying Statutory Significant Underlying FY15 [1] Items Underlying $m [2] • Revenue up 0.5% to $574.3m - excluding additional trading week in Revenue 571.6 574.3
Slide 3: FY16 operational highlights
FY16 operational highlights For personal use only • Further margin • Sizzler Australia continues to • EBITDA positive at Stand improvement delivering generate positive EBITDA level stronger EBITDA • 4 Sizzler restaurants closed. • New Pacific Fair Stand • Strong top line growth of Store count stands
Slide 4: KFC growth across all key performance metrics
For personal use only KFC growth across all key performance metrics Page 3
Slide 5: KFC growth across all key performance metrics
KFC growth across all key performance metrics For personal use only FY15 FY16 Change vs • Revenue up 3.8% to $501.6m - excluding extra trading week in FY15 Underlying Statutory FY15 revenue was up 5.6% [1] Underlying • Same Store Sales growth of: Restaurants ($m) - Year end 3.1% using Collins Food
Slide 6: Driving new product innovation whilst offering great core products and value
Driving new product innovation whilst offering great core products and value keeps customers coming back For personal use only Core product innovation Zinger Black, Zinger Taco and On The ‘Original new Go Bucket led the way in keeping the brand fresh and contemporary product and packaging ideas cont
Slide 7: Continued investment driving further growth
Continued investment driving further growth For personal use only Harrisdale (WA) • Capex of circa $12m for KFC network development 6 new builds • Additional capex of circa $14m for KFC remodel program 20 major remodels 8 minor remodels Toowoomba East (QLD) • Core maintenance and systems capit
Slide 8: Operational execution remains a key driver of ongoing success
Operational execution remains a key driver of ongoing success For personal use only • Creating a quick and efficient drive-thru experience, for over half of our customers, is central to our operational focus • Reconfigured front counter flow, enhanced with digital menu boards elevating the customer
Slide 9: Acquisition of KFC restaurants
Acquisition of 13 KFC restaurants For personal use only • Acquisition of 13 KFC restaurants located around the New South Wales and Victorian border announced in May • Provides growth opportunities in these States NORTHERN TERRITORY (4) • On a trailing basis Sales were $32.3m and EBITDA (pre-synergie
Slide 10: Sizzler Australia providing positive EBITDA contribution
For personal use only Sizzler Australia providing positive EBITDA contribution Page 9
Slide 11: Sizzler Australia providing positive EBITDA contribution
Sizzler Australia providing positive EBITDA contribution For personal use only FY15 FY16 FY16 FY16 Change vs • Overall revenue down 17.9% Underlying Statutory Significant Underlying FY15 [1] Items Underlying • 4 restaurants closed during year [2] Restaurants ($m) • Ongoing focus on cost management h
Slide 12: Sizzler Asia continues to grow
Sizzler Asia continues to grow For personal use only • Sizzler Asia continues to grow through increased royalty revenue and store count • Royalty revenue up 14.5% • 5 new restaurants opened in Thailand and 1 new restaurant opened in Japan • 6 further new restaurant openings are planned for FY17 Page
Slide 13: Snag Stand continues to evolve
For personal use only Snag Stand continues to evolve Page 12
Slide 14: Snag Stand continues to evolve
Snag Stand continues to evolve For personal use only • Total of 6 Stands – 5 company owned, 1 franchised • Overall Stand EBITDA is positive • New Stand at Pacific Fair which incorporates new brand design elements is trading well • Remaining 50% of equity purchased by Collins post year end for a nomi
Slide 15: Financial overview
For personal use only Financial overview Page 14
Slide 16: Positive cash flow has reduced overall net debt
Positive cash flow has reduced overall net debt For personal use only $m FY15 FY16 Net Operating cash flows before interest, tax and • Net cash flow positive $10.3m 67.8 72.9 working capital change • Net operating cash flow before interest, tax and Change in working capital 3.2 (2.4) working capital
Slide 17: Lower net debt and lower net leverage ratio
Lower net debt and lower net leverage ratio For personal use only 135 Net Debt / Net Leverage Ratio 2.75 130 $128.0m 2.50 • Net debt down $10.3m to $112.5m Net Leverage Ratio 125 $122.8m 2.25 Net Debt $m • Increased covenant headroom with net 2.22 120 2.00 leverage ratio down to 1.52 115 $112.5m 1.7
Slide 18: Balance sheet
Balance sheet For personal use only $m 3 May 2015 1 May 2016 • Cash balance up $10.3m to $52.5m Cash and equivalents 42.2 52.5 • Property, plant and equipment up $8.5m due to Total current assets 53.1 65.9 new restaurants and remodels partially offset by Property, plant and equipment 79.5 88.0 resta
Slide 19: Priorities for FY17
Priorities for FY17 For personal use only • Growing the KFC business through: existing store sales growth building 7-8 new stores and continuing remodel program exploring further acquisition opportunities that meet Collins Foods strategic criteria • Embed 13 KFC stores recently acquired in New
Slide 20: Questions
For personal use only Page 19 Questions
Slide 21: Disclaimer
Disclaimer For personal use only This presentation contains forward looking statements which may be subject to significant uncertainties beyond CKF’s control. No representation is made as to the accuracy or reliability of forward looking statements or the assumptions on which they are based. Circums