Shriro Holdings Ltd. · ASX:SHM
Shriro — Shareholder Meeting (May 2019)
21 slides from Shriro's shareholder meeting presentation, May 30, 2019
Slide 1: Chairman's Report
CHAIRMAN’S REPORT It is with pleasure that I welcome you to the 2019 Annual General Meeting of Shriro Holdings Limited. The 2018 year was a particularly disappointing period for the Company, where a profit after tax of $7.7 million was recorded, which was 49% below the prior year. The major factors
Slide 2: Chairman's report conclusion and thanks
efforts and dedication they have applied in addressing the issues and for their ongoing commitment. Similarly I would like to thank all our staff for their continued efforts and commitment and my fellow Directors for their input and support. Finally, and in particular, on behalf of the Board I would
Slide 3: AGM presentation
SHM AGM presentation May 2019 Tim Hargreaves | CEO
Slide 4: Results
CY18 CY17 Revenue Revenue (change) $181M $188.3M (3.8%) EBITDA EBITDA $14.3M $24.7M (42.1%) R E S U LT S NPAT NPAT $7.7M $14.5M (46.9%) Net Debt Net Debt $6.0M $2.0M (0.4 x EBITDA) (0.1 x EBITDA) Dividend Dividend 7.0 cents 11.0 cents (fully franked) (fully franked) 1
Slide 5: Structural Transformation
STRUCTURAL TRANSFORMATION • Consolidated 4 showrooms -> 2 showrooms • Savings, plus cost cutting = $2M saving p/a • Relocated product compliance team to Head Office (from Perth) • Established Innovation Division with dedicated resources • Appointed Export Manager / USA subsidiary • Appliance Divisio
Slide 6: Casio
CASIO • Record watch sales in Australia in 2018 • Effective marketing + new product release driving global + local demand • Shriro opens dedicated G-Shock store in Auckland International Airport • Rising Average Sell Price • Solid calculator demand based on mandated / highly recommended use in exams
Slide 7: Pioneer
• DJ Market leading position representing solid growth PIONEER • Car audio demand remains strong with alliance with key car manufacturers • Hifi category in decline 4
Slide 8: Appliances
APPLIANCES • A disappointing 2018 result, contributed to the lower group NPAT. • Competitive market pressures impacting margins • Headwinds in multi-residential development. New home build market, at this stage, proving to be more resilient • Renovation market subdued with tighter credit & home equi
Slide 9: BBQs: Everdure by Heston Blumenthal
BBQS EVERDURE BY HESTON BLUMENTHAL 4K recipient of prestigious ‘Red dot’ award winner • Trump driven US/China trade issues deferred sales in USA • Europe consumer take up on track - UK retailer John Lewis reported sales growth of our BBQ + 47% in the last 12 months • Award winning product design + f
Slide 10: Marketing: Events per key market
MARKETING: E V E N T S p e r k e y m a r k e t In-store live demonstrations + 2018 AUSTRALIA USA UK GERMANY 7
Slide 11: Marketing: Content
MARKETING: C o n t e n t INFLUENCERS CONSUMER EVENTS Connecting with Driving consumers to the end-user with Eg. Eg. content optimised digital platforms for smart phones RANGE 4.4 million views and counting DEALER LOCATOR PR SOCIAL MEDIA ADVERTISING TUTORIALS Heston on the living room RECIPES 8
Slide 12: Marketing: Snapshot // Advertising & PR
MARKETING: S n a p s h o t / / A d v e r t i s i n g & P R 2018 USA: Upcoming secured coverage 4.4mil views Germany - seeding AU: PR/Advertising from late 2018 - now 9
Slide 13: Marketing: Williams Sonoma Catalogue
MARKETING: W i l l i a m s S o n o m a C a t a l o g u e CIRCULATION 14 Mil* *as off 2018, as sourced by US distributor* 10
Slide 14: USA: Dealer Development
BURN PROGRAM 1 x FUSION DEMO UNIT 201 1 x FURNACE DEMO UNIT SUPPORT USA: 2018 IN STORE MERCHANDISING FOR NEW DEALERS DEALER DEVELOPMENT ADVERTISING TRADESHOWS HARDWARE PURSUING NEW DEALER LEADS APPLIANCE BBQ / HEARTH 11
Slide 15: Retailers
RETAILERS AUS NZ 312 stores 62 stores USA 300 stores EU 176 stores T OTA L 850 stores 12
Slide 16: Global Expansion
GLOBAL EXPANSION I N N O VAT I O N 2018 13
Slide 17: Future Planned Targets: South America, South Africa & India
F U T U R E P L A N N E D TA R G E T S : S o u t h A m e r i c a , S o u t h A f r i c a & I n d i a • Dedicated Export Manager appointed • USA Subsidiary established • Disciplined approach to expansion, key to long term success 14
Slide 18: Innovation
INNOVATION • Woolen replacement filters = Environmentally conscious consumer • Solution driven with style = Commercial (Home, Hotel) Applications 2018 • Style & market leading performance – Shriro technology & IP • Enhanced design • Casio unique DNA/style with smart watch technology 15
Slide 19: Innovation
INNOVATION • Contemporary – compact style • World first technology integration • Mid market <-> Weekend grill demand expansion • Smart phone integration • Link temperature probes & touch screen • Patented motorised pole technology glass display • On trend style & colour • Social media -> share exper
Slide 20: Strategy
S T R AT E G Y Grow organically, by setting a strong foundation, in the right markets, which is a low risk approach, with a long term outlook INNOVATION Shriro management is aiming for at least 15% of revenue to be derived from exports within 5 years REPUTATION GLOBAL RETURN Shriro’s focus on innova
Slide 21: Outlook
• 1st half (2019) result expected to be lower than last year, due to phasing & margin pressure • Full year result currently expected to be in line with 2018 • Uncertainty remains with Trump tariffs with our BBQ business in USA • Export market investment continues with focus on consumer pull through