Breville Group Limited · ASX:BRG
Breville — Macquarie Investor Conference 2019
28 slides from Breville's conference presentation, Apr 30, 2019
Slide 1: Breville Group Limited (BRG) Macquarie Investor Conference
Breville Group Limited (BRG) Macquarie Investor Conference April 30th, 2019 Master Every Moment Breville | Sage
Slide 2: Breville Overview
» - Breville Overview Why are Breville’s products successful, globally? What are Breville’s growth engines? How much headroom does Breville Have to Grow? Financial Outcomes Breville | Sage
Slide 3: Breville Overview
Breville Overview 87 year old global, innovation-driven product company in the small domestic appliance market Products sold in 57 countries: 11 through direct model Report in two segments: Global segment and Distribution segment Market Global products under the Breville® brand, except in the EU whe
Slide 4: FY18 Global Segment Geographic Revenue Distribution
FY18 Global Segment Geographic Revenue Distribution No s Europe $61.8M iad Rest of World $37.6M % a America $303.6M ‘> ¥en
Slide 5: Global Distributed Team
Global Distributed Team COO CTO SVP Corporate Development Global Systems Architect Global Customer Service Manager Global Logistics Manager Global S&OP Manager General Counsel CEO CFO Global Controller Global Product Officer Global Quality Manager Global Go-To-Market Officer
Slide 6: Breville Overview
Breville Overview » - Why are Breville’s products successful, globally? What are Breville’s growth engines? How much headroom does Breville Have to Grow? Financial Outcomes Breville | Sage
Slide 7: Breville Innovates to Solve Consumer Problems
Breville Innovates to Solve Consumer Problems Many companies in the SDA vertical are marketing led (price/feature). Breville is engineering led, driven by consumer and food process insights (problem driven). Each Breville product is meticulously engineered and tested to solve real consumer problems
Slide 8: A Few Examples
A Few Examples Consumer Challenge Breville Solution - How can consumers make café quality coffee at home without having to learn to be a barista? - How can consumers make restaurant quality pizza at home without having to build a wood-fired oven? Smart Oven® Pizzaiolo - How can consumers make perfec
Slide 9: Every Product Began As a Consumer Problem
Every Product Began As a Consumer Problem
Slide 10: Our vision...
Our vision... Inspire consumers to make every food moment a perfect occasion. Never Compromise. Never Settle for average or OK. Master Every Moment. Master Every Moment Breville | Sage
Slide 11: We Then Wrap the Innovation in a Premium Design
We Then Wrap the Innovation in a Premium Design. ...
Slide 12: Resulting in Design Awards and a Patent Portfolio
Resulting in Design Awards and a Patent Portfolio ... Z : - Over 130 design reddot Good Design Award IDSA lL oOUN awards + »~ 650 invention patents - ~500 design patents
Slide 13: Our Most Recent Award
Our Most Recent Award Oracle® Touch Barista Touch™ Barista Express Pro™ 2017 Best New 2018 Best New 2019 Best New Product Product Product
Slide 14: But Most Importantly, Satisfied Customers
But Most Importantly, Satisfied Customers te Ye ve ve vy Der Kaffee und die milchfunktion sind super 18. Marz 2019 Stil: Touchscreen Gr6fe: Tampern manuell, Milchschaumautomatik — Verifizierter Kauf Einfache Handhabung, Touch ist etwas schwerfallig aber der Kaffee ist super! kKkekkk Lennard - et ar
Slide 15: Breville Overview
Breville Overview Why are Breville’s products successful, globally? » - What are Breville’s growth engines? How much headroom does Breville Have to Grow? Financial Outcomes Breville | Sage
Slide 16: Breville's Growth Engines
Breville’s Growth Engines New Product Go To Geographic Inorganic Development Market Expansion Growth
Slide 17: Development
Development Breville’s Growth Engines | New Product Lifeblood of Breville’s long-term growth and success Increasing investment in R&D Shortening average product development cycle with addition of development centre in China Adding “category thinking” to “food thinking” innovation engine Building cro
Slide 18: Market
Market Breville’s Growth Engines } Gots | Store In Store Point Of Sale Demonstration & Merchandising a Sales Associate Training alias All Content
Slide 19: Breville's Growth Engines: Geographic Expansion
Breville’s Growth Engines = FY13: UK FY16-FY17: Nordics, Baltics, Eastern Europe (Sage distributors) FY18: Germany & Austria FY19: Netherlands, Belgium, Luxembourg, Switzerland, and Turkey FY20: Spain... Breville | Sage
Slide 20: UK and Germany growth by half-year
UK1H14 UK1H15 UK1H16 DE1H19 UK1H17 20
Slide 21: Growth: Inorganic
Growth Breville’s Growth Engines | Inorgani One small acquisition to date: Aquaport® Corporate platform designed to accelerate integration Material balance sheet capacity Recently added SVP Corporate Development to manage and drive the process Breville | Sage
Slide 22: Reinforcing Loop of Innovation Driven Growth
Reinforcing Loop of Innovation Driven Growth Increase Investment Accelerate Revenue Inorganic g ~. Increase Investment Increase Revenue Geography Increase Geographic Footprint Accelerate Revenue Marketing & NPD Efficiency
Slide 23: Breville Overview
Breville Overview Why are Breville’s products successful, globally? What are the Breville’s growth engines? » - How much headroom does Breville Have to Grow? Financial Outcomes Breville | Sage
Slide 24: Population, Per Capita GDP and GDP by region
ANZ North America Europe ROW Population 29,977,470 362,786,189 531,818,188 Per Capita GDP (USD) $50,215 $58,507 $43,706 GDP (USD mil) $1,505,319 $21,225,532 $23,243,646 GDP ANZ Multiple 1.0x 14.1x 15.4x FY18 Segment Revenue (AUD mil) $124 $304 $62 $38 Theoretical Opportunity (AUD mil) Index $1,748 $
Slide 25: Breville Overview
Breville Overview Why are Breville’s products successful, globally? What are the Breville’s growth engines? How much headroom does Breville Have to Grow? »> - Financial Outcomes Breville | Sage
Slide 26: 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% 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% Marketing / R&D Spen
Slide 27: Marketing/R&D as % of Revenue
Marketing/R&D as % of Revenue ~11.0% 10.5% 9.5% 8.5% 8.0% EBIT (AUD) • • • 27
Slide 28: Reaffirming Outlook
Reaffirming Outlook * The Board and management are mindful of the dynamic nature of the current global political and economic environment, but are encouraged by the continued progress of the acceleration program. * Assuming no significant change in economic conditions in the Group’s major trading ma