Breville Group Limited · ASX:BRG
Breville — Shareholder Meeting (November 2018)
33 slides from Breville's shareholder meeting presentation, Nov 13, 2018
Slide 1: Annual General Meeting Presentations cover letter
13 November 2018 Manager, Company Announcements For personal use only ASX Limited Level 4, 20 Bridge Street Sydney NSW 2000 Dear Sir Breville Group Limited – Annual General Meeting Presentations Please find attached the Chairman’s Address to shareholders and CEO’s Review of Operations to be delivere
Slide 2: Chairman's Address
13 November 2018 Chairman’s Address Slide 2 For personal use only Good morning ladies and gentlemen and welcome to Breville Group Limited’s 2018 AGM. Turn to Slide 3 The 2018 financial year has delivered another very strong result. Breville’s business model and strategy continues to deliver. The tra
Slide 3: Chairman's Address and CEO's Review of Operations
I would also like to thank Breville team members around the world for the creative passion and energy that they bring to our company. On behalf of our suppliers, customers, consumers and of course, our valued shareholders and my Board colleagues, I thank you all for your continued support. For perso
Slide 4: CEO's Review: regional growth and balance sheet
Turn to Slide 10 Disaggregating the Global Product growth, we saw solid performance across all geographies. North America led with 16.3%, followed by ROW at 10.7%, and ANZ at 9.1%, all in constant currency. Given that our launch into Germany materially reduced the ROW segment’s year-over- year growt
Slide 5: CEO's Review: new products for 1H FY19
products in stainless steel and 4 colours. We intend to maintain a stable colour selection for years to come, enabling our customers to coordinate their benchtop. Turn to Slide 15 We are launching 6 new products in the 1H FY19: For personal use only - The Barista ExpressTM Pro: an updated version of
Slide 6: Pizzaiolo brand launch
Lastly, we have a “Brand” launch. This takes the Priority execution, up-weights the media spend, and adds a launch campaign. This launch approach is reserved for new products that, in addition to being a great product, also make a strong brand statement. The Pizzaiolo is the first product receiving
Slide 7: Europe update
France, and Italy on the to-do list. Once Sage® is rolled out across Europe, we will take our new “Global” framework and evaluate other geographies. Turn to Slide 22 Zooming in to our current progress, so far Germany and Austria are on track. We had a Sage® For personal use only booth at IFA for the
Slide 8: Driver behind the transformation and closing remarks
German structure and process. And, our back office has deep, global capabilities built in verticals where the particular function plays a crucial role. Taken as a whole, we have put a global, functional expertise wrapper around a distinctive product innovation and execution capability. This is the d
Slide 9: Breville Group Limited Annual General Meeting November 2018
For personal use only = '— Po f Breville Group Limited Annual General Meeting November 2018 @ hw Ae 5h 3 | “uN Sages \
Slide 10: Chairman's Address
Chairman’s Address Mr Steven Fisher
Slide 11: Advancing through the acceleration program
“We continue to advance through our acceleration program and deliver growth in operating performance” o sy =” Breville | Sage
Slide 12: Group FY18 Results Summary
Group FY18 Results Summary % change FYi8 from FY17 Revenue $652.3m 7.7% Earnings before interest and tax (EBIT) $86.9m 10.0% Net profit after taxation (NPAT) $58.5m 8.7% Basic earnings per share (EPS) 45.0 cps 8.7% Dividends per share (DPS) 33.0 cps 8.2% Net cash flows from operations $88.7m (FY17:
Slide 13: Thank You
Thank You Thank You - Breville | Sage team - Board colleagues - Suppliers, customers, and consumers - Valued shareholders
Slide 14: CEO's Address
CEO’s Address Jim Clayton
Slide 15: AGM Agenda
AGM Agenda * The Numbers * 1H FY19 New Products * Brand Launch - Europe Update * Driver Behind the Transformation Breville | Sage
Slide 16: FY18 financial summary
AUDm FY18 FY17 % Chng • For personal use only Revenue 652.3 605.7 7.7% EBITDA 100.2 89.8 11.6% • EBIT 86.9 79.0 10.0% • EBIT margin (%) 13.3% 13.0% NPAT 58.5 53.8 8.7% • Basic EPS (cents) 45.0 41.4 8.7% 1 ROE (%) 21.6% 21.3% Dividends per share • (cents) 33.0 30.5 8.2% • Interim 16.5 15.5 • Final 16
Slide 17: Revenue and EBIT by segment
REVENUE EBIT EBIT MARGIN (%) AUDm For personal use only FY18 FY17 % Chng FY18 FY17 % Chng FY18 FY17 Global Product 526.9 469.6 12.2% 73.3 72.4 1.2% 13.9% 15.4% % Change CC* 13.4% Distribution 125.5 136.2 (7.8%) 13.6 6.6 106.1% 10.8% 4.9% TOTAL 652.3 605.7 7.7% 86.9 79.0 10.0% 13.3% 13.0% • • • • 9
Slide 18: Global Product Segment Revenue
GLOBAL PRODUCT SEGMENT REVENUE AUDm For personal use only FY18 FY17 % Chng $A % Chng CC* North America 303.6 265.1 14.5% 16.3% Australia and New Zealand 123.9 114.1 8.6% 9.1% (ANZ) Rest of World 99.4 90.4 9.9% 10.7% TOTAL 526.9 469.6 12.2% 13.4% • • • 10
Slide 19: Balance sheet summary
AUDm FY18 FY17 For personal use only • Inventory 99.7 116.6 ® Receivables 104.4 106.4 Trade and other payables (84.6) (94.8) Working Capital 119.5 128.2 Fixed assets 11.4 10.7 • Intangibles 112.6 100.1 Other (liabilities)/assets (18.3) (20.7) • (net) NET ASSETS EMPLOYED 225.2 218.3 (Cash) (net) (58.
Slide 20: Acceleration Program Scorecard
Acceleration Program Scorecard FY15 FY16 FY17 FY18 FY18/FY15 BRG Revenue (AUDm) 527.0 576.6 605.7 652.3 23.8% For personal use only Global Segment 373.3 427.2 469.6 526.9 41.1% Distribution Segment 153.7 149.4 136.2 125.5 (18.4%) EBIT 69.6 73.7 79.0 86.9 24.9% EBIT Yr/Yr Growth (1.2%) 5.9% 7.2% 10.0
Slide 21: For personal use only
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Slide 22: Coordinated Range
Coordinated Range KITCHEN NOIR Common Design Language Common Colour Palette i. Se 7 ae rac Q | Ls
Slide 23: 1H FY19 New Products
1H FYi9 New Products Barista Express™ Pro | Tea Maker™ Compact* the Fresh & Furious™* Soft Top Luxe™ Kettle Variable Temp* * Designed and developed by the Offshore Development Centre \ 5 eid ie
Slide 24: For personal use only
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Slide 26: Pizzaiolo Brand Launch
Pizzaiolo Brand Launch | Seed Tease Launch Accelerate | Apr - June Jul - Sep Oct Nov - Mar19 THE US, LAUNCH OF THE SMART OVEN PIZZAIOLO
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Slide 28: Redefining "Global"
Redefining “Global” FY15: “global” FY18: “Global” Direct Market English Speaking Market Distributor Market Non-English Speaking Market Direct Market Local market capable of profitably supporting a direct go-to-market model Distributor Market Local market best served through strong relationships form
Slide 29: For personal use only
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Slide 32: Deliberate Capability Augmentation
Deliberate Capability Augmentation Nike, Ralph Lauren, David Jones, Diageo, Steinway, Sotheby’s Sony, Bose, Dyson, Electrolux, Toshiba M&M Mars, Compaq/HP, Cisco/Linksys Belkin Dyson, Toshiba Premium Product Development ant IBM Siemens = . Ascential Q (consumer) Deep SDA Expertise Novell ~Y Aspect S
Slide 33: Disclaimer
Disclaimer This Presentation contains certain ‘forward looking statements’. The forward looking statements contained in this Presentation 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