Shriro Holdings Ltd. · ASX:SHM
Shriro — H1 2019 Earnings Presentation
17 slides from Shriro's earnings presentation, Aug 27, 2019
Slide 1: Shriro Holdings Ltd Investor Presentation 2019 Half Year Results
For personal use only SHRIRO HOLDINGS LTD (SHM) INVESTOR PRESENTATION 2019 Half Year Results 27th August 2019
Slide 2: Half Year Highlights
JUNE 2019 For personal use only Half Year Highlights NPBT, $3.6M, (+3% on 1H18) NPAT of $2.7M, in line with underlying 1H18 Lower operating costs $1.5M ( 6%) on 1H18 Zero debt, net cash position. Net cash inflows of +$10.3M for the year to 30 June 2019 Revenue 3% lower due to lower exports Interim d
Slide 3: Revenue Split
REVENUE SPLIT For personal use only 1ST Half 2019 AUSTRALIA NEW ZEALAND EXPORT MARKETS 75% 22% 3% * EXPORT TERRITORIES USA Benelux Canada UK Germany France Scandinavia Israel 3 *Appliances Only
Slide 4: Profit & Loss Statement
PROFIT & LOSS STATEMENT For personal use only Half Year Ended 30th June 2019 4 49 4 48 1 = #$ #$ %$!!!( Revenue decline of 3.0% in a difficult trading environment for Export and 2*#* 2,#/ %-#*6& #%#" Appliances !"" !< .*#/6 .+#16 Margin contraction due to, competitive market pressures particularly A
Slide 5: Balance Sheet
BALANCE SHEET For personal use only As at 30 June 2019 53 $49 53 $48 1 1 Net cash position. Shriro has changed its net debt position of $9.2M at $!!#""#" +#+ *#- 30 June 18, to a cash position of $1.1M at 30 June 19. Net cash ,.#. ,0#1 .*#+ .0#. generated = $10.3M over the year to 30 June 19 /#. /#+
Slide 6: Cash Flows
CASH FLOWS For personal use only Half Year Ended 30 June 2019 4 49 4 48 1 1 /"&"! !##%#" 44*6 3*6 Cash flows from operating activities improved: !" ' %+#/& %+#*& Clearance of aged and discontinued Appliances stock %,#3& %0#1& #" !"+-!". 7*3 -7*5. Debtors continue to be well controlled *Includes rent
Slide 7: Australian Market
AUSTRALIAN MARKET For personal use only Breakdown Revenue flat vs 1H18 Everdure by Heston BBQ sales gained traction (3rd season). Release of new models contributed to revenue growth of BBQs +16% on 1H18 New Omega Altise heating range released. Revenue lifted +9% on 1H18 NEW RELEASE NEW RELEASE 7
Slide 8: Australian Market Cont.
AUSTRALIAN MARKET For personal use only Breakdown Cont. Casio revenue remained strong, +11% on 1H18, with continued growth off GSHOCK Watches. Musical instruments/keyboards were one of the key growth contributors Appliances sales revenue was down 6.3% in 1st half on 1H18. Shriro believe e the busine
Slide 9: New Zealand Market
NEW ZEALAND MARKET For personal use only Breakdown Revenue was flat due to subdued retail conditions Sales of GSHOCK was +8% vs 1H18. The Auckland Airport Store continues to exceed management expectations Higher priced GSHOCK premium range attracting tourist dollar 9
Slide 10: New Zealand Market Cont.
NEW ZEALAND MARKET For personal use only Breakdown Cont. Appliance revenue was flat. Lower Omega sales were offset by Robinhood Increased Robinhood marketing contributed to growth Independent consumer reviews are influencing purchase decisions 10
Slide 11: Export Markets
EXPORT MARKETS For personal use only Breakdown 1st half revenue lower due to challenging USA market conditions European markets, particularly Germany & Scandinavia reporting good 2019 season sell-through Export markets where sales seasons are 2 years plus* are EXPORT TERRITORIES reporting market tra
Slide 12: Key Export Markets
KEY EXPORT MARKETS For personal use only Breakdown Revenue down due to late BBQ stock arrival into USA for the 2018 season. Dealers carrying 2018 stock into 2019 season Trump tariff increases 0 - 10% 10 - 25% has created uncertainty Everdure by Heston stockists have reported promising sell-through o
Slide 13: Key Export Markets Cont.
KEY EXPORT MARKETS For personal use only Breakdown Cont. Positive dealer sell-through, compared to 2018 season Dealer base increased by 50% in last 12 months Engaged distribution partner + 4 dedicated sales staff Targeting top Garten (Garden) Centres for a 2020 Rollout 13 Localised marketing activit
Slide 14: Kitchen Appliances
KITCHEN APPLIANCES For personal use only Breakdown Strong, experienced management team and structure now in place Trans-Tasman (Aust/NZ) alignment of sales, marketing & operations strategy Continue to drive efficiencies in a market that is experiencing headwinds New Omega range developed for 2020 la
Slide 15: Innovation Roadmap
INNOVATION For personal use only Roadmap CURRENT FUTURE Focus on innovation to continue. However, 2020 will see some new product release consolidation. 15
Slide 16: Innovation: Air Movement
INNOVATION For personal use only Air Movement Shriro’s proven product development track record continues with the launch of ”Project Aura” - new cooling technology. Global patent pending Australian launch October 2019 Export sales planned for 2020. USA approval/certification underway. Patent app no.
Slide 17: Outlook
OUTLOOK For personal use only Seasonality bias revenue to 2nd half of calendar year, due to Back School, & Christmas sales Appliances business stabilising. Shifting capital investment from bricks and mortar showrooms to digital brand strategy & experienced sales and marketing team Measured approach