Breville Group Limited · ASX:BRG
Breville — FY2016 Earnings Presentation
19 slides from Breville's earnings presentation, Aug 25, 2016
Slide 1: Year Ended 30 June 2016 Investor Presentation
25 August 2016 For personal use only Manager, Company Announcements, Australian Securities Exchange Limited, Level 4, 20 Bridge Street, Sydney NSW 2000 Year Ended 30 June 2016 Investor Presentation Attached is a copy of the Breville Group Limited Investor Presentation for the Year Ended 30 June 2016
Slide 2: Year End Results FY16 Investor Presentation
Breville Group Limited For personal use only YEAR END RESULTS FY16 INVESTOR PRESENTATION August 2016
Slide 3: Group Summary Result
Group Summary Result AUDm FY16 FY15 % Chng Key points For personal use only Revenue 576.6 527.0 9.4% • Steady growth in Group revenue and EBIT EBITDA 83.4 77.0 8.3% • EBIT growth % lower than EBITDA EBIT 73.7 69.6 5.9% growth % - higher depreciation and EBIT margin (%) 12.8% 13.2% amortisation follo
Slide 4: Operating Segments
Operating Segments Operating segments For personal use only • North America — Breville designed and developed product • Australia and New Zealand (ANZ) — Breville designed and developed and sourced product (including Breville-Nespresso2 co-branded single serve coffee machines) — Kambrook – sourced p
Slide 5: Segment Results
Segment Results REVENUE EBIT EBIT MARGIN (%) AUDm For personal use only FY16 FY15 % Chng FY16 FY15 % Chng FY16 FY15 North America 251.8 203.1 24.0% 43.6 31.9 36.9% 17.3% 15.7% Australia and New Zealand 242.6 245.1 (1.0%) 16.6 18.3 (9.4%) 6.9% 7.5% (ANZ) Rest of World 82.3 78.8 4.3% 22.1 20.3 8.4% 26
Slide 6: Segment Results Key points
Segment Results Key points • North America For personal use only — Strong growth – constant currency revenues for the year 10.3% higher — Ongoing positive growth since the juicing category re-set, which commenced in calendar year 2014 — Revenue growth in core categories of beverage and cooking (from
Slide 7: Segment Results cont’d
Segment Results cont’d Key points • Rest of World For personal use only — UK business under Sage brand continues its solid performance with 7.4% constant currency revenue growth — UK revenue increase driven by expanded customer base and wider product range — Lower constant currency Rest of World dis
Slide 8: Financial Position at June
Financial Position at 30 June AUDm FY16 FY15 Key points For personal use only Inventory 107.7 108.3 • Working capital Receivables 89.5 88.7 ‒ Inventories: net decrease $0.6m, excluding the impact of currency $1.9m lower. Improved Trade and other payables (74.9) (85.2) inventory turns compared to pcp
Slide 9: Breville Transformation Update
Breville Transformation Update Transformation program outlined in February 2016 on track and further enhanced … For personal use only Product • Global: Seeing success in evolution of product development process • ANZ: Aligned for portfolio acceleration Market • Global: Progressing with end-to-end tr
Slide 10: Product: Transformation Process
For personal use only Product: Transformation Process • Will deliver the best quality outcome of any product in its category “Shortening development cycles and accelerating new product introductions” • Revenue acceleration through transformation: — Original target release date, Sep. 2017, new releas
Slide 11: Product: Innovation Pipeline
For personal use only Product: Innovation Pipeline • The Control Freak™ is an example of the strength of Breville’s innovation pipeline • The world’s first induction cooker that can set and hold temperatures from 30°C - 250°C in 1°C increments for any length of time Restaurant Chef Location The Fat
Slide 12: Product: ANZ Business Unit
Product: ANZ Business Unit CATEGORY For personal use only ANZ Best Breville Global Kambrook Breville Breville Local Global Better Breville Local Good Kambrook / Ronson ANZ • Accelerate introduction of new products Category Management • Better alignment of portfolio with retailer & customer needs Bre
Slide 13: GTM: Effectiveness & Expansion
For personal use only GTM: Effectiveness & Expansion Nespresso Machine Partnership Sales force effectiveness • Completed multi-country FY16 pilots • Realigned sale force for FY17 – at scale pilots Go to market • Kicked off global, end-to-end project for redesigning our go-to-market • Support omni-ch
Slide 14: Scalable Platform
Scalable Platform Supply Chain (units) For personal use only Marketing ERP Control Breville Global Sales Tower ANZ Region Product Finance (AUD$) t0 Single Version of The Truth Single Version of The Truth PAST FUTURE 13
Slide 15: Scalable Platform
Scalable Platform Current Supply Chain Consolidation Warehouse For personal use only • Point-to-Point – 200,000 combinations • 2,000 Combinations (100x) • Alleviates minimum order quantity challenge, mixed container 14
Slide 16: Scalable Platform
Scalable Platform Sales & operations planning For personal use only • Implementation complete Sales & operations planning (100%) eCommerce re-platform • Currently in process eCommerce re-platform CRM (40%) 2H FY17 2H FY17 Customer relationship management (CRM) • US/Canada live, ANZ & UK in process E
Slide 17: Transformation: Next Steps
Transformation: Next Steps Scalable platform For personal use only • Infrastructure on track … finish implementations • Organisational learning to work effectively in new model Product / go-to-market levers • Continue to work on new product process acceleration, building on early success • Execute g
Slide 18: Transformation Scorecard
Transformation Scorecard Key metrics to measure success* June 16 Dec 16 June 17 Dec 17 June 18 For personal use only Inventory Cost structure re-allocation Growth rate acceleration Inventory • Slightly improved inventory turns FY16 vs. FY15 • Trade payables reduction leading indicator of change, res
Slide 19: Outlook
Outlook • The Board and management are encouraged by the full year financial performance of the Group. For personal use only • The 2017 financial year is expected to be challenging as the Group progresses through the execution of its transformation plan and anticipates global business conditions to