Breville Group Limited · ASX:BRG
Breville — Investor Presentation (August 2020)
25 slides from Breville's investor presentation, Aug 13, 2020
Slide 1: ASX announcement: Year Ended 30 June 2020 Investor Presentation
13 August 2020 Manager, Company Announcements, Australian Securities Exchange Limited, 20 Bridge Street, Sydney NSW 2000 Year Ended 30 June 2020 Investor Presentation Attached is a copy of the Breville Group Limited Investor Presentation for the Year Ended 30 June 2020. The release of this announcem
Slide 2: Full Year FY20 Results Investor Presentation
Breville Group Limited (BRG) FULL YEAR FY20 RESULTS Investor Presentation 13th August 2020 Se 's cs ff >a A ‘ o Breville h age’ \ Sp) 9 sg du : AN “ANN
Slide 3: Disclaimer
Disclaimer To the extent this Presentation contains any forward looking statements, such statements 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, its Directors and management, and in
Slide 4: FY20 financial summary
AUDm FY20 FY19 % Chng • Revenue 952.2 760.0 25.3% Gross Profit 320.6 271.2 18.2% EBITDA 126.5 114.0 11.0% • EBIT 100.9 97.3 3.7% NPAT 66.2 67.4 (1.8)% • Basic EPS (cents) 50.5 51.8 (2.5)% Net cash ($m) 128.5 9.8 • Normalised EBIT1 113.1 97.3 16.2% • Normalised EBIT Growth 14.3% (excluding AASB 16 im
Slide 5: Revenue and EBIT by segment
REVENUE EBIT EBIT MARGIN (%) AUDm Normalised Normalised FY20 FY19 % Chng FY201 FY19 % Chng FY201 FY19 Global Product 764.4 612.0 24.9% 90.2 78.8 +14.5% 11.8% 12.9% % Change CC2 20.1% Distribution 187.8 148.0 26.9% 22.9 18.5 +23.8% 12.3% 12.5% TOTAL 952.2 760.0 25.3% 113.1 97.3 +16.2% 11.9% 12.8% • •
Slide 6: Global Product Segment Revenue
GLOBAL PRODUCT SEGMENT REVENUE AUDm FY20 FY19 % Chng $A % Chng CC1 North America 420.4 357.4 17.6% 11.3% Australia and 157.4 132.9 18.4% 18.3% New Zealand (ANZ) Europe 143.3 89.6 60.1% 54.8% Rest of World (ROW) 43.3 32.1 34.8% 25.6% TOTAL 764.4 612.0 24.9% 20.1% • • • • 5
Slide 7: Statutory EBIT to Normalised EBIT bridge
A$m 124.1 9.6 7.7 3.3 113.1 13.6 100.9 • • Abnormal expenses Abnormal cost savings • • Statutory EBIT Doubtful debt IoT Impairment Compensation Marketing Normalised Provisioning Reduction Reduction EBIT 6
Slide 8: Shareholders' equity and capital employed
AUDm FY20 FY19 Inventory 153.7 152.3 • Receivables 156.1 154.6 • Trade and other payables (147.9) (122.7) - Working Capital 161.9 184.2 Fixed assets 13.5 12.0 - Intangibles 160.2 123.4 Other (liabilities) / assets (37.7) (19.1) - NET ASSETS EMPLOYED 297.9 300.5 • Net (Cash) / debt (128.5) (9.8) - Sh
Slide 9: Key Take Outs From Financial Performance
Key Take Outs From Financial Performance * Topline growth and gross profit delivery has remained strong throughout FY20 * Very noisy expense year with doubtful debt provisioning, IoT impairment and temporary cost cuts. Normalised EBIT growth +14% * Current business trajectory is healthy, and the bal
Slide 10: Geographic Expansion / Product to Solution Evolution
» * Geographic Expansion * Product to Solution Evolution
Slide 11: Sage is Live in France
Sage is Live in France boulanger pied is ets Bes) , ara P= amazon Sage.com ae ~ ss a ° lm . Loe @ MaxiCoffee cuisine : LaRedoute £2 Sue Herat) one) GCE 0: % Cas RIVE GAUCHE ro =WHOLESALE
Slide 12: Sage expansion FY11 to FY20
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 11
Slide 13: Sage is Expanding: Middle East
Sage is Expanding: Middle East o S| ¢ Middle East region (excluding Israel) is transitioning from Breville to Sage * Region uses the same plug as the UK. Brand flip enables partner to eS take mixed container shipments from UK warehouse 4 oe arehouses ho s& ; * Can extend range and launch new product
Slide 14: Extending Website Infrastructure To Distributor
Extending Website Infrastructure To Distributor Sage Middle East E Meet the on we | Partner Checkout Sage Product Master Browsé \ - =~ | _Leatiifinore \ Products. a — | abontEspresso ae < zm i), Partner Delivery Discover Our Products * Phase I: Supply Chain * Phase II: Go To Market
Slide 15: Geographic Expansion
FY15 FY16 FY17 FY18 FY19 AvgFY15-FY19 FY20 14
Slide 16: FY21: Geographic Expansion Now Multi-Theatre
FY21: Geographic Expansion Now Multi-Theatre Americas EMEA ! APAC - Mexico
Slide 17: Product to Solution Evolution
* Geographic Expansion » * Product to Solution Evolution
Slide 18: Migrating Up the Product Value Curve
Migrating Up the Product Value Curve Solution Thinking Category Thinking Food Thinking FY16
Slide 19: Solution Framework
Solution Framework Ecosystem Content/ Services Platform When there’s a buyer and a seller, one of them is typically responsible for providing the solution.
Slide 20: ChefSteps Joule Sous Vide
ChefSteps Joule Sous Vide Ecosystem Content ChefSteps 20% Platform Proprietary IoT Platform 1,000,000 users of Chefsteps.com User Generated Content
Slide 21: Joule Oven Air Fryer Pro: FY21 Launch
Joule Oven Air Fryer Pro: FY21 Launch Ecosystem Content HE ChefSteps 15% Breville Platform _+= Standards-based IoT - Platform Cy | * Chefs * 1,000,000 users of Chefsteps.com (user generated content) * Breville Smart Oven Air Customers
Slide 22: Convergence to standards-based IoT Platform
Convergence to standards-based IoT Platform Proprietary IoT Platform Proprietary IoT Platform Standards-based IoT Platform Proprietary IoT Platform Future Acquired IoT Products Breville Products in Development * Future releases written to \___ standards-based platform * Versions in field updated to
Slide 23: Thoughts Exiting FY20
Thoughts Exiting FY20 * Breville was more fortunate than most No COVID outbreak at our manufacturers forcing a prolonged shutdown Breville’s strong inventory position in Northern Hemisphere when COVID began Quarantine and work-from-home has been a tailwind so far * After initial shock, value chain t
Slide 24: Statutory to normalised results reconciliation
FY19 FY20 % Growth Normalisation FY20 % Growth AUD $m Reduced Doubtful debt IoT Compensation Statutory Statutory Statutory provision 1 impairment 2 reductions3 marketing Normalised Normalised spend 4 Revenue 760.0 952.2 25.3% 952.2 25.3% Gross Profit 271.2 320.6 18.2% 320.6 18.2% Mktg Expenses (32.2
Slide 25: Full Year FY20 Results
Breville Group Limited (BRG) FULL YEAR FY20 RESULTS Investor Presentation 13th August 2020 > 's cs ff x A \ I Breville | age’ \ Sp) 9 sg du :