Collins Foods Limited · ASX:CKF
Collins Foods — Shareholder Meeting (September 2013)
34 slides from Collins Foods's shareholder meeting presentation, Sep 4, 2013
Slide 1: 2013 Annual General Meeting
For personal use only COLLINS FOODS LIMITED 2013 Annual General Meeting 4 September 2013 COLLINS FOODS LIMITED 0
Slide 2: Disclaimer
Disclaimer For personal use only This presentation contains forward looking statements which may be subject to significant uncertainties beyond CKF's control. No representation is made as to the accuracy or reliability of forward looking statements or the assumptions on which they are based. Circums
Slide 3: Evacuation diagram
Evacuation diagram For personal use only COLLINS FOODS LIMITED 2
Slide 4: Chairman's Address
For personal use only CHAIRMAN’S ADDRESS Russell Tate COLLINS FOODS LIMITED 3
Slide 5: Chief Executive Officer's Address
For personal use only CHIEF EXECUTIVE OFFICER’S ADDRESS Kevin Perkins COLLINS FOODS LIMITED 4
Slide 6: Today's agenda
Today’s agenda For personal use only SECTION 1 – Financial performance in line with expectations SECTION 2 – KFC returns to growth SECTION 3 – Sizzler in transition SECTION 4 – Further growth expected in FY14 SECTION 5 – AGM business COLLINS FOODS LIMITED 5
Slide 7: Financial performance in line with expectations
For personal use only Financial performance in line with expectations COLLINS FOODS LIMITED 6
Slide 8: FY13 financial results – in line with expectations
FY13 financial results – in line with expectations For personal use only • Revenue up 4.3%(i) to $423.9m • EBITDA down 7.6%(i) to $47.2m • NPAT of $16.4m in line with expectations vs FY12 statutory NPAT of $11.4m and FY12 pro forma(i) NPAT of $18.4m • EPS of 17.6 cents up 22.2% vs FY12 statutory EPS
Slide 9: Strong balance sheet
Strong balance sheet For personal use only Balance sheet 28 April 2013 29 April 2012 • Cash up $4.4m to $23.6m $m $m – strong cash flow generation Cash and equivalents 23.6 19.2 • Property, plant and equipment up $1.6m Total current assets 31.8 25.3 to $59.1m Property, plant and 59.1 57.5 – new rest
Slide 10: Strong, growing cashflows
Strong, growing cashflows For personal use only $million FY13 FY12 • Operating cashflow up 15.7% to $41.2m – interest down $9.8m Net operating cash flows before 50.1 51.2 interest and tax rate and debt down on prior year Net interest paid (6.0) (15.8) – tax paid up $3.1m (tax losses utilised from
Slide 11: KFC returns to growth
For personal use only KFC returns to growth COLLINS FOODS LIMITED 10
Slide 12: KFC top-line returns to growth
KFC top-line returns to growth For personal use only $million FY13 FY12* Change • Revenue up 5.8% to $318.2m Restaurants: – average 120.9 119.5 1.4 – SSSG of 4.2% (FY12: down 1.8%) – period end 122.0 121.0 1.0 – free-standing and service centre Revenue 318.2 300.8 5.8% locations driving growth
Slide 13: KFC capex focused on growth
KFC capex focused on growth For personal use only FY13 Total • Total capex of $15.8m, up $1.2m on Growth capex = $11.6m FY12 Maintenance = $3.1m IT = $1.1m − $2.4m: 2 new restaurants − $4.3m: 2 rebuilds/relocates and existing site in Gladstone purchased New restaurants Rebuilding/relocating $2.4m $4
Slide 14: New KFC restaurants
New KFC restaurants For personal use only North Lakes Opened 12 August 2013 Capital spend $1,307k Projected WSA $51.6k Actual WSA $56k Chinchilla To be completed 10 September 2013 Capital spend $1,231k Projected WSA $45.5k WSA – weekly store average COLLINS FOODS LIMITED 13
Slide 15: Major reimage and rebuild
Major reimage and rebuild For personal use only Completed 21 June 2013 Capital spend $443k Projected WSA $69.9k Actual WSA $75.3K Maryborough - REIMAGE Re-opened 24 July 2013 Capital spend $1,450k Projected WSA $73.4k Actual WSA $112k Gympie - REBUILD Kallangur - REIMAGE Re-opened 19 June 2013 Capit
Slide 16: Successful marketing campaigns...
Successful marketing campaigns... For personal use only • “Goodification” campaign featuring the switch to Australian grown canola oils was positively received • “Summer Cricket” campaign featuring Madden brothers was successful in re-engaging customers with the brand • Value deals continue to reson
Slide 17: KFC promotions driving sales…
KFC promotions driving sales… For personal use only • Targeted high end value offers (eg Family Dinner Box and WOW Dinner) resonating well with customers • Successful Winter campaign with a new chicken on the bone variant (Sweet Sesame Chicken) running for 8 weeks • Breakfast trial including coffee
Slide 18: Sizzler in transition
For personal use only Sizzler in transition COLLINS FOODS LIMITED 17
Slide 19: Sizzler performance reflects transition being undertaken
Sizzler performance reflects transition being undertaken For personal use only $million FY13 FY12* Change • Overall revenue flat at $105.6m with Australian Restaurants: SSSG down 2.4% – average** 27.0 26.4 0.6 − casual dining sector impacted more than QSR – period end** 27.0 27.0 – in current econ
Slide 20: Repositioning Sizzler for growth
Repositioning Sizzler for growth For personal use only • Repositioning the Sizzler menu to offer “More Choice/Better Value” − detailed menu development and costing nearing completion − lunch and dinner menu currently being tested • Introducing more relevant and frequent food news through a stronger
Slide 21: Sizzler strategic review at core of transformation
Sizzler strategic review at core of transformation For personal use only • Review of Sizzler format, layout and design for a cost efficient and ‘investable’ model − design and layout of a smaller footprint − ideal seating capacity and flow − salad bar format layout and design − improved store econom
Slide 22: Corporate Social Responsibility
Corporate Social Responsibility For personal use only Workplace Believe in all “Goodification” Recycling program giving people and diversity programs • Total Funds raised • 72 Supported • The switch to • New recycling since launch of the Wage Employees Australian grown system rolled out program in w
Slide 23: Further growth expected in FY14
For personal use only Further growth expected in FY14 COLLINS FOODS LIMITED 22
Slide 24: QSR/casual dining landscape
QSR/casual dining landscape For personal use only • Rising costs present an ongoing challenge … building economies of scale and maximising cost efficiencies is key • Retail environment remains challenging • Growth opportunities are prevalent in under developed territories/growth corridors • Focus on
Slide 25: Year to date and FY14 Outlook
Year to date and FY14 Outlook • For personal use only Gympie rebuild resulted in a sales record for the first seven days • On target to open four new KFC stores before December 2013 with three more to open late in the fourth quarter – permits Go To Plan • KFC same store sales performance flat • KFC
Slide 26: Thank you
For personal use only Thank you COLLINS FOODS LIMITED 25
Slide 27: AGM Business
For personal use only AGM BUSINESS COLLINS FOODS LIMITED 26
Slide 28: Item – Financial and other reports
Item 1 – Financial and other reports For personal use only To receive and consider the Financial Report, Directors’ Report and Independent Auditor’s Report of the Company and its controlled entities for the financial period ended 28 April 2013. COLLINS FOODS LIMITED 27
Slide 29: Item – Re-election of Director
Item 2 – Re-election of Director For personal use only To consider and if thought fit pass the following ordinary resolution: • “To re-elect as a Director of the Company, Ms Bronwyn Morris who, being a Director of the Company, retires and, being eligible, offers herself for re-election.” PROXIES In
Slide 30: Item – Election of Director
Item 3 – Election of Director For personal use only To consider and if thought fit pass the following ordinary resolution: • “To elect as a Director of the Company, Mr Stephen Copulos who was appointed as a Director by the Board on 12 April 2013.” PROXIES In respect of this item of business, the fol
Slide 31: Item – Adoption of Remuneration Report
Item 4 – Adoption of Remuneration Report For personal use only To consider and if thought fit pass the following ordinary resolution: • “That the Remuneration Report (which forms part of the Directors’ Report) in respect of the period ended 28 April 2013 be adopted.” PROXIES In respect of this item
Slide 32: Item – Approval of Executive and Employee Incentive Plan
Item 5 – Approval of Executive and Employee Incentive Plan For personal use only To consider and if thought fit pass the following ordinary resolution: • “That for the purpose of Listing Rule 7.2 exception 9 and for all other purposes, the Collins Foods Limited Executive and Employee Incentive Plan
Slide 33: Item – Approval for proposed issue of Performance Rights to Kevin Perkins under LTIP
Item 6 – Approval for proposed issue of Performance Rights to Kevin Perkins under LTIP For personal use only To consider and if thought fit pass the following ordinary resolution: • “That for the purpose of Listing Rule 10.14 and for all other purposes, approval is given for the issue to the Managin
Slide 34: Questions
For personal use only Questions COLLINS FOODS LIMITED 33