Yowie Group Ltd. · ASX:YOW
Yowie — Shareholder Meeting (November 2017)
45 slides from Yowie's shareholder meeting presentation, Nov 16, 2017
Slide 1: Annual General Meeting 2017
Annual General Meeting 2017 November 2017 1 © Yowie
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Yowie Group Limited (ASX: YOW) (“Yowie” or the “Company”) in order to provide a high level overview of the Company. This presentation should not be consideredas an offer or invitation to subscribe f or or purchase any shares in Yowie or as an inducem
Slide 3: Contents
Contents • Yowie Overview • 2017 Performance • 2018 Objectives & Q1 • Business Model & Growth Strategy • Country Business Overview • Marketing and Social Media • Future Opportunities in Digital • Corporate Profiles 33
Slide 4: Confectionery with a Cause
Confectionery with a Cause Modern Living with Kathy Ireland Modern Living Kathy Ireland 4
Slide 5: Save the Natural World
Confectionery with a cause ‘Save the Natural World’ Yowie confectionery was created to carry this message and educate children. 5 © Yowie
Slide 6: 2017 Accomplishments
2017 Accomplishments Net sales increased 51% to $19.5M Gross margin expansion of 300 basis points to 55% Narrowed EBITDA loss excluding share based payments to $3.4M from $4.0M Increased US market share in Nielsen reported xAOC (extended All Outlet Combined) in front-end chocolate confectionary from
Slide 7: 2018 Key Operational Objectives
2018 Key Operational Objectives 1) Revitalise US sales growth through launch of Series 3 and Discovery World into expanded Tier 1 retail footprint 2) Expand distribution in Australia and launch into Canada market. Develop UK via test market 3) Innovation focused, Series 4 ready 4) Expand chocolate w
Slide 8: Financial Objectives 2018
Financial Objectives 2018 Net sales growth 55%+, Q1 flat due to Series launch timing Maintain strong gross margin above 50% Generate positive EBITDA Excluding share based comp by Q4 Strong working capital position 13 8 © Yowie
Slide 9: Q1 2018 Progress
Q1 2018 Progress Net sales $4.6M (-7%) vs. Q1 2016 driven by innovation and merchandising timing Launched Yowie Series 3 & Discovery World Brand in US Expanded distribution accounts in US & Australia Entry into Canada via Mondoux Confectionery distributor Initiated UK test market Delivered strong Gr
Slide 10: Q2 Outlook
Q2 Outlook October sales providing a strong start to the quarter, bolstered by Series 3 in US and Australia sales ahead of expectations Feature end-cap program at our largest retailer starting in Nov. US Sales team reorganization gaining new accounts: Bed, Bath & Beyond Q1, Love’s Q1,Albertson Q3, W
Slide 11: Net Sales Growth '15 to '18
Net Sales Growth '15 to '18 35 30 25 $ MILLION 20 15 $30M 10 $19.5M $12.8M 5 $2M 0 2015 2016 2017 2018 (estimated) NET SALES GROWTH 11 © Yowie
Slide 12: Uses of Funds Outlook 2018 to 2021
Uses of Funds Outlook 2018 to 2021 Legal Brand Development & Acquisition - $3M to $5M Manufacturing Expansion - $3M to $6M Product Development & Innovation - $2M to $5M M&A opportunities - $5M to $10M Digital Animation Development - $2M to $4M Web site e Commerce - $1M to $3M Market Entries or Expan
Slide 13: Profit & Loss Leverage 2018 versus 2017
Profit & Loss Leverage 2018 versus 2017 Selling & Distribution are flat as a % to Net Sales One added sales person, consolidated YNA CEO and COO positions Marketing & Merchandising lower as a % of Net sales Two US campaigns (same) and added full year Australia and Canada G&A lower as a % of Net Sale
Slide 14: Improved Capabilities for 2018
Improved Capabilities for 2018 Restructured US Leadership and Sales Force deployment Accelerated fiscal 2018 innovation cycle with Series 4 ready to launch in US and Series 2 in Australia Enhanced production planning process to compliment market cycle Developed packaging options to meet retailer nee
Slide 15: Growth Strategy
Growth Strategy SALES MARKETING PEOPLE SUPPLY DIGITAL Channel Trial, test & Acquire and Ensure a Create expansion – learn strategy develop talent reliable and new revenue U.S market • • efficient streams in • Build Enhance supply chain new Increase investment innovation • categories customer based o
Slide 16: US Chocolate Market Dynamics
US Chocolate Market Dynamics • Total 52 Wk. Chocolate Candy retail sales $11.4B (source IRI) • U Low growth category +1.2% with +90% household penetration • Seasonal $2.8B (25%) around 4 holidays (source IRI) • Healthier snack trends impact consumption • Social responsibility trends increasing • Ind
Slide 17: Strong Consistent Growth
Yowie Leads % Category Growth in U.S. Market Nielsen Total US X AOC + Mass, Club, Grocery & Convenience 7/1/2017 45,000,000 $42,785,400 40,000,000 35,000,000 30,000,000 25,000,000 Strong Consistent Growth 20,000,000 $15,725,000 15,000,000 14.25 Million 10,000,000 5,000,000 $1,475,000 0 Nielsen Total
Slide 18: Continued rapid growth in U.S. Retail Market
Continued rapid growth in U.S. Retail Market In just three years: 4 Tier-one national retail accounts Sales across 50 current active account/account groups Four-person US based retail sales team is in place 18 © Yowie
Slide 19: Packaging Options for Retail
Packaging Options for Retail 19 © Yowie
Slide 20: Prominent Position on Front End and Aisle
Prominent Position on Front End and Aisle Walmart Walgreens 20
Slide 21: Nielsen Report Oct. 2017 Largest Retailer
Nielsen Report Oct. 2017 Largest Retailer All Information is Confidential and not for distribution without the written permission from Yowie 21
Slide 22: Nielsen Report Oct 2017 Largest Retailer
Nielsen Report Oct 2017 Largest Retailer All Information is Confidential and not for distribution without the written permission from Yowie 22
Slide 23: Competitive products growing in number
Competitive products growing in number 23 © Yowie
Slide 24: Competitive products growing in number
Competitive products growing in number 24 © Yowie
Slide 25: Australia expansion on track
Australia expansion on track 25 © Yowie
Slide 26: Canada Market Entry
Atte= Canada Market Entry Agreement with Mondoux Confectionery enables access to strong DSD coverage of 8000 C Stores in Quebec and strong distribution capabilities across Canada Launch will include use of merchandising units as well as counter placed display units Social media support will begin in
Slide 27: Yowie & Kinder Display Units Canada
Yowie & Kinder Display Units Canada +240 count +240 count 48 Units In Aisle 15 ft from Across from Check- 15 ft from cash Check-out out 10 ft away All Information is Confidential and not for distribution without the written permission from Yowie 27
Slide 28: Social media strategy: Investment
Social media strategy: Investment $2M+ digital marketing ongoing investment through Yowieworld.com, including FREE Yowie App Includes $1.4M+ in advertising support with kids influencing Yowie ads for kids Develop Ads that promote sharing and enhance Brand awareness Affiliate with local zoos, aquariu
Slide 29: Social media strategy: Results
Social media strategy: Results Yowie’s social media marketing strategy is gaining traction. The Yowie World Official website has hit a new milestone with over 813K page views, 288K sessions and 216K unique users. The Yowie app has more than 10,400 downloads since launch; On Instagram; strategic foll
Slide 30: Facebook Page Growth - Page Likes
Facebook Page Growth - Page Likes FY2017 Growth FY2018 Growth YTD 30
Slide 31: Marketing Campaign Series 3
Marketing Campaign Series 3 Series 3 - Rescue Series, Fall 2017 26 ToCollect! 3 Super Rare Chase Figures YOWIE Includes 6 Yowie Adversary Characters! Adversaries New Crystal Collection Poster with Rarity Scale Yowie World Collector App - Yowie connects you to a network of collectors and swappers Yow
Slide 32: Marketing Campaign Series 3
Marketing Campaign Series 3 1.4 Million Dollar Investment on Ad Spend 1 Million Dollar - 7 Webisodes of the Yowie Story made by Icon Films - Spring 2018 120 Second Hero Mini-film using VR - Week of Nov 1st - Target 20 Million Impressions, FB, IG, YT, TW 30 Second Commercial Video shot in 20 location
Slide 33: Marketing Campaign Series 3
Marketing Campaign Series 3 Investment in Influencer Campaign S3 Investment in YowieScope Collector App with Augemented Reality Figure detection Investment in DIY Videos for capsule recycling Marketing campaign overall - Total Impressions, over 110 Million! 33 © Yowie
Slide 34: 120 Second Hero Video Yowie Group's Most Successful Commercial
120 Second Hero Video Yowie Group’s Most Successful Commercial 6.1Million views in One Week 8.9Million Reach Over 20K Engagements (shares, comments, reactions) VR Spirit Animal Experience Click above 34 © Yowie
Slide 35: Social Media Launch Strategy: Australia & New Zealand
Social Media Launch Strategy: Australia & New Zealand Single Sites Mirror Pages LOCAL PAGE GAMES GLOBAL LOCAL PAGE LOCAL PAGE AUS/NZ AUS/NZ Webpage Content Selected Lang. Yowie World Yowie World • Yowie World ANZ Facebook ANZ Instagram • Content • Yowie World • Videos Page Page • Parents • Facebook
Slide 36: Social Media Launch Strategy: Canada
Social Media Launch Strategy: Canada Single Sites Mirror Pages FR EN EN BY USER FR EN FR EN French English Content Selected Lang. Yowie World Yowie World Webpage • Yowie World • Yowie World Canada Canada • Content Facebook Videos EN • • Facebook Instagram • Parents Games • Videos FR Contact Page Pag
Slide 37: Partnership Wildlife Conservation Society
Partnership Wildlife Conservation Society • Founded in 1895 to conserve wildlife and wild places • Conserves +2M square miles of wild places globally • Operates in +60 countries and all the world’s oceans • Agreement with Yowie includes educational content and Series 4 co-development • Partnership f
Slide 38: Partnership Wildlife Conservation Society
Partnership Wildlife Conservation Society 20 New Species Designed by the WCS 6 New Yowie Character Collectibles 38 © Yowie
Slide 39: Reliable & Efficient Supply Chain
Reliable & Efficient Supply Chain Complexity of Supply Chain increasing HK/China based Collectible innovation ensures high quality Third party testing ensures highest product safety profile Strong partnership with US Chocolate Toll Manufacturer Added new Co-Packing supplier for increased flexibility
Slide 40: Reliable & Efficient Supply Chain
Reliable & Efficient Supply Chain Assessing Australia supply for future development Strong Gross Margin in mid-50% range Implementing MRP and Inventory Planning module for accuracy New SVP Supply Chain with significant industry experience 40
Slide 41: Yowie Webisode & Cartoon Animation Development
Yowie Webisode & Cartoon Animation Development Yowie reaches a strategic five year animation agreement with the Bruce Davey - Mel Gibson-backed Icon Animation group in the US to broaden the market appeal of the Yowie story and characters. Icon will produce seven, three to six minute duration webisod
Slide 42: Group Organizational Structure
Group Organizational Structure Text & BOARD of DIRECTORS Chief Marketing Officer more text! Global Marketing Director YHKHL Company Secretary YGL Merchandise Designer Group CEO YGL Head of Travel Retail Commercial Finance Manager YHKH YGL VP – Global Supply Chain Corporate Accountant Group Accountan
Slide 43: Board & Management Team
Board & Management Team Non-Executive Chair: Louis Carroll Non-Executive Director: Trevor Allen Executive Director: Patricia Fields Global Chief Executive Officer: Bert Alfonso President/Chief Operating Officer/General Manager YNA: Mark Schuessler Chief Marketing Officer: Cove Overley VP, Global Sup
Slide 44: Why Invest in Yowie?
Why Invest in Yowie? Fastest growing Novelty Brand in the U.S. with significant category margins No.1 novelty item in the chocolate category in stores that carry Yowie On trend Mission supporting conservation and environment Highest quality collectable in the category Play and learn digital assets v
Slide 45: © Yowie
45 © Yowie