Breville Group Limited · ASX:BRG
Breville — H1 FY2016 Earnings Presentation
16 slides from Breville's earnings presentation, Feb 25, 2016
Slide 1: Half Year Ended 31 December 2015 Investor Presentation cover letter
25 February 2016 For personal use only Manager, Company Announcements, Australian Securities Exchange Limited, Level 4, 20 Bridge Street, Sydney NSW 2000 Half Year Ended 31 December 2015 Investor Presentation Attached is a copy of the Breville Group Limited Investor Presentation for the Half Year En
Slide 2: Half Year Results FY16 Investor Presentation
Breville Group Limited For personal use only HALF YEAR RESULTS FY16 INVESTOR PRESENTATION February 2016
Slide 3: Group Summary Result
Group Summary Result For personal use only Key points AUDm 1H16 1H15 % Chng Group revenue and EBIT growth continues Revenue 331.2 293.9 12.7% Continued global revenue growth from Breville designed and developed products EBITDA 50.7 47.2 7.4% North America – performed strongly, EBIT 46.1 43.6 5
Slide 4: Operating Segments
Operating Segments Operating segments For personal use only • North America — Breville brand – premium kitchen channels and own online retail platform • Australia and New Zealand (ANZ) — Breville brand – premium and sourced kitchen segment (including Breville-Nespresso2 co-branded single serve coffe
Slide 5: Segment Results
Segment Results For personal use only REVENUE EBIT EBIT MARGIN (%) AUDm 1H16 1H15 % Chng 1H16 1H15 % Chng 1H16 1H15 North America 151.8 116.0 30.8% 28.8 20.6 39.9% 19.0% 17.8% Australia and New Zealand 138.8 142.9 (2.8%) 11.3 16.3 (30.7%) 8.1% 11.4% (ANZ) Rest of World 40.6 35.1 15.9% 11.3 8.8 27.7%
Slide 6: Segment Results cont'd
Segment Results cont’d Key points For personal use only North America Strong growth – constant currency revenues for the half, 10.9% higher Revenue growth in core categories of beverage and cooking (from both new and existing product) Juicing category stabilised in the half Improved EBIT mar
Slide 7: Segment Results cont'd
Segment Results cont’d Key points For personal use only Rest of World UK business under Sage brand continues to build momentum showing solid revenue growth Rest of World distribution business delivering lower revenues in constant currency Certain distribution partners’ markets being materially
Slide 8: Financial Position at December
Financial Position at 31 December For personal use only Key points AUDm 1H16 1H15 Translation impact: weakening AUD Inventory 115.1 97.1 Working capital net increase compared to prior half Receivables 137.6 133.0 ‒ Inventory: net increase $18.1m, of which $4.1m due to Trade and other payables (9
Slide 9: Outlook
Outlook For personal use only Given the continued sporadic business conditions across the globe, the Group believes future financial performance will be relatively more unpredictable The Board and management, however, are encouraged by the first half performance and assuming no significant chang
Slide 10: BRG Today
BRG Today For personal use only Many of the ingredients for the strategic direction are already in place…… Strong and competitive product portfolio ‒ Proven success across the globe Committed, quality team R&D focus on consumer needs and food challenges ‒ Premium product positioning maintained
Slide 11: Global Products - the Driver of Success
Global Products - the Driver of Success For personal use only Global Products ANZ - Local Products - ANZ FY15 ≈ 95% of EBIT FY15 ≈ 5% of EBIT Significant Global Opportunity 10
Slide 12: Key Strategic Pillars
Key Strategic Pillars For personal use only Global, Innovation-Driven Product Company Market Expansion and Optimisation Scalable, Global Platform 11
Slide 13: Global, Innovation-Driven Product Company
Global, Innovation-Driven Product Company For personal use only The Group will transition into a global, innovation-driven product company by: Increasing the number of new global product releases; Shortening development cycles and accelerating new product introductions; Increasing the investme
Slide 14: Market Expansion and Optimisation
Market Expansion and Optimisation For personal use only The Group will focus on accelerating growth by increasing the size of its addressable market by: Improving go-to-market and geographic footprint effectiveness; Expanding into new channels where appropriate, driving greater penetration into
Slide 15: Scalable, Global Platform
Scalable, Global Platform For personal use only To support accelerated growth, the Group needs a global platform designed to scale: Transitioning from a historical decentralised structure into a functional global model to facilitate global alignment and resource allocation; Up-skilling key capab
Slide 16: Measuring Success
Measuring Success Key metrics to For personal use only measure success June 16 Dec 16 June 17 Dec 17 June 18 Inventory Cost structure re-allocation Growth rate acceleration Inventory New S&OP process impact should appear in 1H17, full run rate benefit realised by end FY18 Cost structure re-allocat