Slide 1: Beacon Lighting Group Limited Results Presentation FY2014
For personal use only Beacon Lighting Group Limited RESULTS PRESENTATION F Y 20 14
Slide 2: Agenda
AGENDA For personal use only 1. BACKGROUND 2. RESULTS OVERVIEW 3. TRADING PERFORMANCE 4. CASH FLOW, BALANCE SHEET, DIVIDEND 5. GROWTH STRATEGY UPDATE 6. FY2015 OUTLOOK 7. QUESTIONS 2
Slide 3: Background
BACKGROUND For personal use only • Beacon Lighting Group is the leading specialist lighting retailer in Australia. • From a single store in Melbourne in 1967, Beacon Lighting has grown to now operate 85 stores nationally with scope for significant additional expansion. • The business has continued t
Slide 4: Results Overview
For personal use only RESULTS OVERVIEW 4
Slide 5: Please Note
For personal use only PLEASE NOTE • In the Annual Report 2014, please note the following: - FY2014 was for the 52 weeks ending 29 June 2014 - FY2013 was for the 53 weeks ending 30 June 2013 • For the purposes of this presentation, FY2013 will be presented on a 52 week basis • The 52 week FY2013 Pro
Slide 6: Highlights
HIGHLIGHTS For personal use only • Successful IPO on April 15th 2014 • Prospectus forecast achieved • Record sales and profit results • Sales increased by $17.4m, 13.1% ahead of last year • Designed and developed 440 exclusive new products • Opened six new stores, plus purchased one franchise store
Slide 7: Year-on-Year Result
YEAR-ON-YEAR RESULT For personal use only $ Inc / Dec % Inc / Dec $ ‘000 FY2013 (1) FY2014 on Last Year on Last Year Sales 132,932 150,338 17,406 13.1% Gross Profit 85,599 96,660 11,061 12.9% Gross Profit Margin 64.4% 64.3% Other Income 4,575 5,521 946 20.7% % of Sales 3.4% 3.7% Operating Expenses (
Slide 8: Prospectus Forecast
PROSPECTUS FORECAST For personal use only Prospectus Actual $ Inc / Dec % Inc / Dec $ ‘000 FY2014 (1) FY2014 Prospectus Prospectus Sales 150,261 150,338 77 0.1% Gross Profit 96,611 96,660 49 0.1% Gross Profit Margin 64.3% 64.3% Other Income 5,503 5,521 18 0.3% % of Sales 3.7% 3.7% Operating Expenses
Slide 9: Half-Year Split Year on Year
HALF-YEAR SPLIT YEAR ON YEAR For personal use only $ Inc / Dec % Inc / Dec $ Inc / Dec % Inc / Dec $ ‘000 H1 FY2013 (1) H1 FY2014 (2) H2 FY2013 (3) H2 FY2014 (4) on Last Year on Last Year on Last Year on Last Year Sales 66,061 74,497 8,436 12.8% 66,871 75,841 8,970 13.4% Gross Profit 42,222 49,145 6
Slide 10: Trading Performance
For personal use only TRADING PERFORMANCE 10
Slide 11: Sales
SALES For personal use only SALES: +13.1% to $150.3m • Sales increase in H1 +12.8% and H2 +13.4%. • Record sales exceeding $150m. • Strong company stores comparative sales throughout FY2014 of 5.7% • Online sales grew by 41% • Sales to trade customers strengthened by 21% Total Sales $m Comp Store Sa
Slide 12: Gross Margin
GROSS MARGIN For personal use only Gross Margin: 64.3% • Gross Margin 64.3% in line with last year • H1 FY2014: 66.0% strong AUD and retail price management • H2 FY2014: 62.7% AUD fall and promotions impact Gross Profit Margins 66.0% 64.3% 62.7% H1 FY14 H2 FY14 FY14 12
Slide 13: Other Income
OTHER INCOME For personal use only Other Income: + 20.7% to $5.5m • Other income increased as a result of customs import duty refunds by $1.2m • Core other income (royalties & marketing contribution) fell as franchise stores were purchased. 13
Slide 14: Operating Expenses
OPERATING EXPENSES For personal use only Operating Expenses: Down 0.73% of sales to $82.1m • Operating expenses decreased by 0.73% of sales on previous year • Productivity gains realised in distribution and marketing • General and Admin productivity gain (excl. significant items) $ ‘000 FY2013 (1) %
Slide 15: Earnings
EARNINGS For personal use only EBITDA: + 20.9% to $20.1m EBITDA $m 20.1 EBIT: + 24.5% to $18.1m 15.9 16.6 NPAT: + 24.8% to $11.8m FY2012 FY2013 FY2014 EBIT $m EBIT Margin NPAT $m 18.1 12.0% 11.8 14.0 14.5 11.6% 9.5 10.9% 9.3 FY2012 FY2013 FY2014 FY2012 FY2013 FY2014 FY2012 FY2013 FY2014 15
Slide 16: Cash Flow, Balance Sheet, Dividends
For personal use only CASH FLOW, BALANCE SHEET, DIVIDENDS 16
Slide 17: Cash Flow
CASH FLOW For personal use only Capital Expenditure $5.0m $ ‘000 FY2013 FY2014 Cash flow from Operations • New Stores Capex $2.5m Receipts from customers 154,777 167,236 Payment to suppliers & employees (135,378) (144,612) • Relocation $0.4m Other (836) (892) • Exist Store Capex $1.4m Income Tax Pai
Slide 18: Balance Sheet
BALANCE SHEET For personal use only $ ‘000 FY2013 FY2014 Receivables Cash 7,602 11,427 • Franchise $3.3m Receivables 15,207 8,217 • Commercial $4.1m Inventories 29,073 32,194 Payables Other 673 365 Total Current Assets 52,555 52,203 • Creditors $6.8m PPE 14,025 16,818 • Trade Finance $16.1m Intangib
Slide 19: Dividends
DIVIDENDS For personal use only • 1.4 cents per share for H2 FY2014 • Record date 4th September 2014 • Payment date 26th September 2014 • Payout ratio in the future expected to be 50% to 60% of NPAT 19
Slide 20: Growth Strategy Update
For personal use only GROWTH STRATEGY UPDATE 20
Slide 21: Growth Strategy Update
GROWTH STRATEGY UPDATE For personal use only GROWTH STRATEGY DETAIL UPDATE NEW STORE ROLLOUT Target 6 new stores per year • Committed to 6 net new stores • Opened Mittagong (NSW) in July 2014 • Small store formats and regional store success enables expansion to new locations • Independent analysis c
Slide 22: Growth Strategy Update
GROWTH STRATEGY UPDATE For personal use only GROWTH STRATEGY DETAIL UPDATE ACQUISITIONS Businesses that have synergies • Consider acquisitions of existing lighting retail stores in Australia with the core Beacon business • Consider acquisitions of Franchise operated Beacon Lighting stores • Acquisit
Slide 23: FY2015 Outlook
For personal use only FY2015 OUTLOOK 23
Slide 24: FY2015 Outlook
FY2015 OUTLOOK For personal use only Beacon Lighting • Company store comparative sales have made a positive start to the year • Store roll out is on track for 6 new stores. Mittagong (NSW) opened in July 2014. Further confirmed new stores at Port Macquarie (NSW), Pakenham (VIC), Maribyrnong (VIC), N