Retail Food Group Limited · ASX:RFG

Retail Food — H1 2010 Earnings Presentation

21 slides from Retail Food's earnings presentation, Feb 17, 2010

  1. Slide 1: Results Presentation for the Six Months Ended 31 December 2009 (1H10)

    April 2006 For personal use only Retail Food Group Limited Results Presentation for the Six Months Ended 31 December 2009 (1H10)

  2. Slide 2: Retail Food Group Limited

    Retail Food Group Limited For personal use only ƒ Owner, Developer, Manager and Licensor of Franchise Systems in Australia, New Zealand and China ƒ Listed on ASX on 22 June 2006 (ASX: RFG) ƒ Included in All Ordinaries (XAO) ƒ 103 million shares on issue ƒ Market capitalisation of c.$300 million (1)

  3. Slide 3: 1H10 Financial Highlights

    1H10 Financial Highlights For personal use only ƒ Excellent result attributable to: ƒ Solid underlying business performance ƒ Continuing realisation of acquisition synergies and revenue liberation, including ƒ Improved supplier relationship leveraging 1H10 1H09 % Change ↑↓ Retail Food Group 1H10 Res

  4. Slide 4: Financial Highlights (cont.)

    1H10 Financial Highlights (cont.) For personal use only ƒ NPAT growth of 18.3% to $12.5m underpinned by: ƒ CODB(1) reduction of $4.9m (or 16%) v 1H09, and ƒ Gross margin increase 1.6% Retail Food Group 1H10 Results Presentation ƒ Core Operations NPAT(2) growth of 13.5% to $12.6m ƒ EPS of 12.4 cps up

  5. Slide 5: Financial Highlights (cont.)

    1H10 Financial Highlights (cont.) For personal use only ƒ Adjusted revenue increased by 1.5% on 1H09 ƒ Franchise Revenue increase of 2% driven by increased royalty and licence fees ƒ Wholesale Revenue decrease due to sale of the CMF in 2H09 ($3.1m Retail Food Group 1H10 Results Presentation in 1H09)

  6. Slide 6: Operational Highlights

    1H10 Operational Highlights For personal use only ƒ 1H10 organic outlet growth of 20 consistent with guidance and reflective of: ƒ Depressed shopping centre development ƒ Reduced premium site opportunities ƒ Outlet closures of 28 primarily from acquisition identified legacy outlet closures with resp

  7. Slide 7: Income Statement

    1H10 Income Statement For personal use only Period Ended 31 December ($’millions) 1H10 1H09 % Change Wholesale / retail revenue 38.6 47.5 (18.7%) Franchising / other revenue (excluding marketing) 22.6 22.2 1.8% Total revenue (excluding marketing) 61.3 69.7 (12.1%) Cost of sales (25.9) (30.6) (15.4%)

  8. Slide 8: Statement of Financial Position

    1H10 Statement of Financial Position For personal use only Period Ended ($’millions) 31 Dec 2009 30 Jun 2009 % Change Total current assets 28.5 23.2 22.8% Total non-current assets 198.6 199.3 (0.3%) Total assets 227.1 222.5 2.1% Total current liabilities 101.8 14.2 618.8% Retail Food Group 1H10 Resu

  9. Slide 9: Operating Cash Flow

    1H10 Operating Cash Flow For personal use only ƒ Record 98.6% conversion of gross operating cash flow into EBITDA ƒ Continuing strong consistent cash flows from business operations a feature of RFG’s business model ƒ Supported interim dividend payout increase of 16.7% ƒ Excess free cash flow applied

  10. Slide 10: Debt Structure & Covenants

    1H10 Debt Structure & Covenants For personal use only 1H10 FY09 1H09 Status Net Debt ($’millions) (1) 77.1 90.6 107.7 Enhanced Trailing Interest Expense ($’millions) 7.3 8.4 10.5 Enhanced Interest Cover (times) (2) 5.86 4.93 3.56 Enhanced Operating Cashflow ($’millions) 13.8 23.2 9.5 Enhanced Retail

  11. Slide 11: Franchise System KPIs

    1H10 Franchise System KPIs For personal use only Average Weekly Sales (AWS) Average Transaction Values (ATV) 1H10 1H09 1H10 1H09 9,716 9,653 5.08 4.87 pcp growth 0.7% (0.3%) 4.3% 6.3% 11,408 11,382 7.37 7.16 pcp growth 0.2% 8.8% 2.9% 6.1% Retail Food Group 1H10 Results Presentation 13,731 13,582 5.8

  12. Slide 12: Outlets by System by Territory

    1H10 Outlets by System by Territory For personal use only Franchise System QLD NSW VIC TAS SA WA NT Aust China NZ Total 99 117 70 8 12 11 3 320 7 0 327 21 1 9 0 8 0 0 39 0 21 60 131 35 70 0 18 50 8 312 0 19 331 57 180 61 0 23 11 0 332 0 5 337 Retail Food Group 1H10 Results Presentation Total 308 333

  13. Slide 13: FY10 Acquisitions

    FY10 Acquisitions For personal use only Acquired Completion / Purchase Cash Scrip Franchise System Outlets Control Date Consideration Component Component DCM Coffee & Muffins (DCM) 23 13/01/2010 $2.4m $2.1m $0.3m Brumby’s Bakeries FNQ & NZ 56 15/01/2010 $4.0m $2.68m $1.32m Brumby’s Bakeries WA & NT

  14. Slide 14: FY10 Outlook & Guidance

    FY10 Outlook & Guidance For personal use only ƒ Organic growth of 40 outlets anticipated ‐ tempered by stagnant shopping centre development ƒ Outlet population fortified by 2H10 acquisitions ƒ Acquisition identified legacy outlet closures with respect to the Brumby’s Bakeries and Michel’s Patisserie

  15. Slide 15: Appendices

    April 2006 For personal use only Appendices Retail Food Group 1H10 Results Presentation 1H10 Results Presentation 15

  16. Slide 16: Appendix I - Franchise Systems

    Appendix I ‐ Franchise Systems For personal use only Retail Food Group 1H10 Results Presentation ƒ Australia’s largest speciality donut and coffee chain, operating 320 stores across Australia, employing over 4,600 1H10 Highlights: staff and serving over 30 million donuts each year ƒ Network Sales $7

  17. Slide 17: Appendix I - Franchise Systems (cont.)

    Appendix I ‐ Franchise Systems (cont.) For personal use only Retail Food Group 1H10 Results Presentation ƒ Michel’s Patisserie has grown to become one of Australia’s largest speciality ‘coffee and cake’ retailers 1H10 Highlights: ƒ Operates within the ‘treat’, ‘take a ƒ Network Sales $107.1m (1H09:

  18. Slide 18: Appendix I - Franchise Systems (cont.)

    Appendix I ‐ Franchise Systems (cont.) For personal use only Retail Food Group 1H10 Results Presentation ƒ Brumby’s Bakeries is a speciality bread and savoury retailer ƒ Operates within the ‘baked fresh’, 1H10 Highlights: ‘convenient’ and ‘wholesale’ segment ƒ Network Sales $117.9m (1H09: ƒ Weakenin

  19. Slide 19: Appendix I - Franchise Systems (cont.)

    Appendix I ‐ Franchise Systems (cont.) For personal use only Retail Food Group 1H10 Results Presentation ƒ bb’s café is a café franchise with 39 outlets in Australia and 21 outlets in New Zealand ƒ Operates within the ‘time out’, 1H10 Highlights: ‘relaxation’ and ‘meeting place’ segment ƒ Network Sa

  20. Slide 20: Appendix - Segmented Income Statement

    Appendix 2 – Segmented Income Statement For personal use only Wholesale Revenue $38.6m Franchise Revenue $30.7m Michel’s Coffee Other Franchise Licence Initial & Other Marketing Wholesale Revenue Revenue Service Fees Associated $0.3m Revenue Revenue $7.0m $2.4m Fees $4.8m Fees $8.1m $29.2m $13.7m $3

  21. Slide 21: Disclaimer

    Disclaimer For personal use only No responsibility for contents of Presentation To the maximum extent permitted by law, Retail Food Group Limited (ABN 31 106 840 082), its officers, advisers and representatives: • make no representation, warranty or undertaking, express or implied, as to the adequac

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