Shriro Holdings Ltd. · ASX:SHM
Shriro — Shareholder Meeting (May 2020)
38 slides from Shriro's shareholder meeting presentation, May 28, 2020
Slide 1: Chairman's Address
SHRIRO HOLDINGS LIMITED CHAIRMAN’S ADDRESS After my introductory remarks, Tim Hargreaves, the Company’s CEO, will present the outcomes of the 2019 financial year in more detail before we proceed with the formal business of the meeting. It is with pleasure that I welcome you to Shriro Holdings Limite
Slide 2: Chairman's Address: COVID-19 comments
Before I hand over to Tim, it’s appropriate that I comment on the recent economic events that have occurred as a result of the Governments response to the outbreak of the COVID‐19 Virus. Like many businesses, Shriro’s operations have been impacted by the government enforced retail shutdowns and soci
Slide 3: AGM Presentation 28 May 2020
R | RO AGM PR E NTATION 28% May 2020 BLANCO CASIO Essvoscision. CVETdure Robinhood OMega Ailtise
Slide 4: Stephen Heath, Chairman
STEPHEN HEAT Chairman ft
Slide 5: SHM Board Members
Slide 6: FY19 Results
FY19 RESUETS CY19 Revenue $172.1M (5.0%) CY19 EBITDA $18.0M (6.3%) CY19 UNDERLYING NPAT $6.5M (5.8%) CY19 CASH POSITION +$6.0M CY19 DIVIDEND 7.0c Fully Franked CY18 Revenue $181.1M CY18 EBITDA $19.2M CY18 UNDERLYING NPAT $6.9M CYI8 DEBT POSITION -$6.0M CY18 DIVIDEND 7.0c Fully Franked
Slide 7: Chairman's Address: FY19 Results
CHAIRMAN’S ADDRESS FY19 Results Group revenues declined by 5% with challenging market conditions impacting the Australian Appliances business and lower BBQ sales associated with the slower than anticipated expansion in the USA Timepiece lead by GShock posted a record sales result in Australia. The N
Slide 8: Chairman's Address: Key Initiatives
CHAIRMAN’S ADDRESS Key Initiatives Operational productivity Omega Brand Refresh Investment Brand Websites and Social Media Investment Extending the effectiveness of global reach of BBQ's
Slide 9: Chairman's Address: COVID-19
CHAIRMAN’S ADDRESS COVID-19 * Shriro remains committed to supporting the containment of the virus and ensuring the safety and health of staff & customers * Managements contingency planning resulted in the smooth and efficient staff transition to “work from home” + Staff have agreed to reduce working
Slide 10: Tim Hargreaves, Chief Executive Officer
TIM HARGREAVES Chief Executive Officer
Slide 11: Strong Foundations
STRONG FOUNDATIONS * No debt-—net cash inflows of +$12M in CY19 ¢ Extended supplier payment terms assisting our cash position to manage the challenging economic conditions * Strong balance sheet (no intangibles) inventory clean of key stock issues * CY19 gross profit % remained stable despite the de
Slide 12: COVID-19 — Staff Response
COVID-19 — STAFF | RESPONSE ¢ A\l 239 employees safe and healthy « Effective contingency planning, assisted in rapid & smooth Working from Home policy for all applicable staff - All staff have agreed to a temporary reduction in working hours leading to a 40% saving in wage cost (Apr-May) « Australia
Slide 13: COVID-19 — Staff
COVID-19 — STAFF ° Staff working time reduced to 3 days per week, ° CY20 Revenue = 85% CY19 with operational flexibility to cover 5 day per week L 3days + 4 days per week work load * CY20 Revenue = 90% CY19 L 4days — 5 days per week * Flexibility in working hours will be maintained for CY20 if tradi
Slide 14: Transformation
TRANSFORMATION « Driving efficiencies to lower our cost base in challenging economic conditions * Capital intensive costs reduced, with all instate showrooms closed > consolidate to Sydney ¢ Reduced ongoing BBQ product costs through favourable royalty negotiations « Increased investment in digital a
Slide 15: Australia: Appliances Business
AUSTRALIA Appliances Business ° Revenue declined in a challenging property cycle ° New Australian Appliance Group created to strengthen . sales and marketing execution *° Fragmented sales & operational structure ° New Omega range with distinctive design launched in *° Aged inventory and obsolete ran
Slide 16: Australia: Appliances Business
AUSTRALIA Appliances Business Omega Appliances Website New Omega In-store Display Updated Handles & knobs. 4
Slide 17: Australia: Casio Business
AUSTRALIA Casio Business * Record GShock watch sales driven by higher Average Sell Price * — Strong growth in musical instruments with new upgraded product + Australia/NZ exclusive school scientific calculator range dominates market, with teacher resource program matching state curriculums + Supply
Slide 18: Australia: Casio Consumer Engagement
AUSTRALIA Casio Business — Consumer Engagement Social Influencer Reach Social Media Platforms = G-SHOCK « GShock Website 16
Slide 19: Australia: Seasonal BBQ, Heating & Cooling
AUSTRALIA Seasonal — BBQ, Heating & Cooling * Omega Altise/Everdure heater sales below prior year with * _EHB product upgrades, further improving quality — warmer than anticipated winter season reinforcing premium offering + Revenues of Evedure by Heston Range (EHB) - (4 year * EHB digital refresh c
Slide 20: New Zealand: Casio, Pioneer & Robinhood
New Zealand Casio, Pioneer & Robinhood Revenues and margins showed modest growth despite subdued consumer spending and currency devaluation Robinhood appliance and laundry business continues to strengthen, capitalising on last 2 years brand/product investment Casio business continues to perform well
Slide 21: New Zealand: Commercial Appliances
New Zealand Commercial Appliances Project won by Monaco with Robinhood product * Government funded social housing project Project to deliver up to 4,000 homes over 4 years Communities} * — Clever living project focused on supplying new housing Blanco appliances specified exclusively BUNNINGS TRADE &
Slide 22: Export Markets
Export Markets Revenues declined to $3.4M with the lingering impact of USA tariffs and lag in establishing key retail partnerships International network further strengthened by establishment of Shriro direct USA operations and the addition of South Africa and Israel markets New lower Fat Duck Group
Slide 23: Consumer Engagement
Consumer Engagement AWARENESS @A DIGITAL MARKETING BD VOCAGY INTEREST EMAL AUTOMATION, ‘SEO & CONTENT REVIEWS & SOCIAL POSTS: EMAIL AUTOMATION, &.CUSTOMER SERVICE everdure RESEARCH INSTORE &.WEBSTE LOYALTY PURCHASE PURCHASE 21
Slide 24: Consumer Engagement
Consumer Engagement amazoncom Amazon Customer Reviews PURCHASE amazon QR code at front of manual directs customer to Amazon Everdure Brand Page registration Everdure by Heston Blumenthal Owners Group
Slide 25: Consumer Engagement
Consumer Engagement Sie Amazon Everdure Brand Page Everdure by Heston Blumenthal Owners Group, { amazon.com Amazon Customer Reviews 23
Slide 26: Mighty Helpful: Distribution Channels
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Slide 27: New Product Development
New Product “Creating higher value propositions with award winning design & innovation” - \. Lalo O# @ bu Development (] [estsustepenooucrons = + New eveLop ST Electric ignition charcoal + Power pole rotisserie * — Cliplock Fork System * — Integrated/Bluetooth temperature probes Robinhood Ironing Sy
Slide 28: Strategy
Strategy Continued investment in technology & design to create value propositions and underwrite long term growth Product & Aftercare Service to cater for Long term strategies established for product, people and “Consumer Centric” increasing consumer expectations digital systems Footprint of 9 count
Slide 29: Outlook
Outlook * Uncertainty remains around the extent and length of the impact of COVID-19 + Year to Date (YTD, Jan-Apr) Group revenues 16% lower than last YTD. April, negatively impacted by retail closures in Australia (partial) and New Zealand (full). May results rebounding with the easing of COVID-19 r
Slide 30: Matters of Meeting: Financial Reporting
SS SHRIRO MATTERS OF MEETING Financial Reporting To consider in respect of the Company for the year ended 31 December 2019: 1. The Annual Financial Report; 2. The Director's Report; and 3. The Independent Auditor's Report. a—
Slide 31: Resolution: Adopt the Remuneration Report
RESOLUTION 1 To Adopt the Remuneration Report * Toconsider and if thought fit pass the following as an advisory resolution: * To adopt the Remuneration Report of the Company for the year ended 31 December 2019 as set out on pages 25 to 30 of the Annual Report. Under the Corporations act, this resolu
Slide 32: Resolution: Election of Director Stephen Heath
RESOLUTION 2 Election of a Director, Stephen Heath * Toconsider and if thought fit, pass the following as an Ordinary Resolution: *« “That Stephen Heath, being a Director of the Company who was appointed by the Directors on 24 October, 2019, who retires under rule 8.1(c) of the Company's Constitutio
Slide 33: Resolution: Election of Director Cheryl Hayman
RESOLUTION 3 Election of a Director, Cheryl Hayman * Toconsider and if thought fit, pass the following as an Ordinary Resolution: ¢« “That Cheryl Hayman, being a Director of the Company who was appointed by the Directors on 24 October, 2019, who retires under rule 8.1(c) of the Company's Constitutio
Slide 34: Resolution: Grant of Performance Rights to the CEO
RESOLUTION 4 Grant of Performance Rights to the CEO * Toconsider and if thought fit pass the following as an ordinary resolution: * That approval be given to grant 359,28] rights valued at $240,000 to the CEO and Director Tim Hargreaves under the Shriro Holdings Limited Equity Incentive Plan, for th
Slide 35: Questions
SS) sHRIRO QUESTIONS
Slide 36: Meeting Closed
D EETING CLOS SS SHRIRO M
Slide 37: Disclaimer
Disclaimer This presentation (Document) has been prepared by Shriro Holdings Limited ABN 29605279329 (Shriro Holdings Limited the Company). This document is a presentation to provide background information on the Company and its subsidiaries and is not an offer or invitation or recommendation to sub
Slide 38: RO
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