Breville Group Limited · ASX:BRG
Breville — Investor Presentation (August 2019)
19 slides from Breville's investor presentation, Aug 15, 2019
Slide 1: Year Ended 30 June 2019 Investor Presentation (ASX cover letter)
15 August 2019 Manager, Company Announcements, Australian Securities Exchange Limited, 20 Bridge Street, Sydney NSW 2000 Year Ended 30 June 2019 Investor Presentation Attached is a copy of the Breville Group Limited Investor Presentation for the Year Ended 30 June 2019. Yours faithfully Sasha Kitto
Slide 2: Year End Results FY19 Investor Presentation
Breville Group Limited YEAR END RESULTS FY19 INVESTOR PRESENTATION August 2019
Slide 3: Disclaimer
Disclaimer To the extent this Presentation contains any forward looking statements, such statements are not guarantees of future performance and involve known and unknown risks and uncertainties and other factors, many of which are beyond the control of Breville, its Directors and management, and in
Slide 4: Group Summary Result
Group Summary Result AUDm FY19 FY18 % Chng Commentary Revenue 760.0 646.82 17.5% • Robust revenue growth +17.5% and Global segment constant currency revenue growth +12.0% driven by EBITDA 114.0 100.2 13.7% – European expansion EBIT 97.3 86.9 12.0% – Strong USA Growth – Resilient Australian growth EB
Slide 5: Segment Results
Segment Results REVENUE1 EBIT EBIT MARGIN (%) AUDm FY19 FY18 % Chng FY19 FY18 % Chng FY19 FY18 Global Product 612.0 522.2 17.2% 78.8 73.3 7.5% 12.9% 14.0% % Change CC* 12.0% Distribution 148.0 124.6 18.8% 18.5 13.6 36.0% 12.5% 10.8% TOTAL 760.0 646.8 17.5% 97.3 86.9 12.0% 12.8% 13.4% 1 FY18 Revenue
Slide 6: Segment Results cont'd
Segment Results cont’d GLOBAL PRODUCT SEGMENT REVENUE AUDm FY19 FY18 % Chng $A % Chng CC* North America 357.4 298.9 19.6% 12.8% Australia and 132.9 123.9 7.2% 7.0% New Zealand (ANZ) Europe** 89.6 63.0 42.1% 35.1% Rest of World (ROW)*** 32.1 36.4 (11.4)% (17.7)% TOTAL 612.0 522.2 17.2% 12.0% * CC – C
Slide 7: Financial Position at 30 June
Financial Position at 30 June AUDm FY19 FY18 Commentary Inventory 152.3 99.7 Strategic investment in working capital to support sustained growth Receivables 154.6 104.4 – On going strong sales growth ramping up baseline inventory & increasing receivables in Q4 including Trade and other payables (122
Slide 8: Investment in Working Capital – supporting Growth
Investment in Working Capital – supporting Growth Inventory * 152 14 Commentary 11 • Core business inventory continuing to turn ~4x per annum and A$ m 119 8 growing in line with revenue 100 19 • ROW zero stock export sales moved into onshore Euro pool • Some FY20 Christmas purchases for US brought f
Slide 9: Growth Acceleration Framework
Growth Acceleration Framework More Larger Product Market Acceleration Program Trajectory EBIT Scalable, Acceleration Platform Historical Trajectory Growth-oriented Business Model Time 8
Slide 10: ChefSteps At a Glance
ChefSteps At a Glance More Product This is the best Sous Vide machine we’ve ever used* ~ 1 million ~ 850 Compelling ~ 300,000 Talented Team consumers Professionally consumer sous connected of Food using Produced vide product consumers Thinkers ChefSteps.com Recipes *Bonappetit, https://www.bonappeti
Slide 11: FY20 Sous Vide Category Range
FY20 Sous Vide Category Range More Product Chef Series Pro Ultra TM Chef Series ProTM Sous-Vide ProTM Joule Sous-VideTM Commercial Prosumer Consumer 10
Slide 12: Fastest Flat White In the World
Fastest Flat White In the World More Product • Simultaneous Coffee and Milk with 3 second heat up time • Café quality microfoam Creatista ™ Plus milk • Touchscreen coffee recipe selector • Coffee recipe personalisation • Hot water dispenser for tea Creatista ™ Uno Creatista™ Pro 11
Slide 13: Why Choose When You Can Have Both …
Why Choose When You Can Have Both … More Product BLENDER JUICER The Super Q™ Juice Fountain® Cold XL The Q™ Juice Fountain® Cold Plus 3X Bluicer Pro™ Getting Healthy Has Never Been Easier Fresh and Furious™ Juice Fountain® Cold 12
Slide 14: FY20 Brand Launches
FY20 Brand Launches Larger Market 1H FY20 2H FY20 3X Bluicer Pro™ 3X Bluicer™ 13
Slide 15: Europe Update – Germany/Austria
Europe Update – Germany/Austria Larger Market FY Revenue Since Launch UK vs. Germany +68% UKFY14 UKFY15 UKFY16 UKFY17 DEFY19 • New Geography offense is working … In its first full year, Germany exceeded the performance of the UK in its fourth year. • Jan-Jun 2019, Sage is market leader in Gfk Espres
Slide 16: Continuing Unification of Europe under Sage
Continuing Unification of Europe under Sage Larger Market Direct Model – UK – Germany / Austria – Benelux – Switzerland – Spain (1H FY20) – France (2H FY20) Through Partners – Nordics – Baltics – Eastern Europe 2HFY20 – Turkey Not Yet Planned 1HFY20 – Portugal – Italy 15
Slide 17: Global Platform 2.0 Scalable Platform
Global Platform 2.0 Scalable Platform v1.0 Platform v2.0 Platform* Business Intelligence POS Business Intelligence Manufacturers / Logistics Manufacturers / Logistics eComm S&OP CRM Retail Partners Retail Partners eComm S&OP CRM Middleware ERP ERP PIM • Forced Global organisation onto legacy, • Glob
Slide 18: Evolving to Sustainable Business Model
Evolving to Sustainable Business Model Business Model 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% FY15 FY16 FY17 FY18 FY19 -2.0% Mkt/R&D as % Sales EBIT Growth Over the last 4 years, Breville has managed to grow marketing and R&D spend as a percent of net sales while simultaneously accelerating the EBIT gr
Slide 19: Acceleration Program Scorecard
Acceleration Program Scorecard Acceleration Program Scorecard FY15 FY16 FY17 FY18 FY19 FY19/FY15 BRG Revenue (AUDm) 527.0 576.6 605.7 646.8 760.0 44.2% Global Segment 373.3 427.2 469.6 522.2 612.0 63.9% Distribution Segment 153.7 149.4 136.2 124.6 148.0 (3.7)% Distribution Segment EBIT N/A 8.6 6.6 1