Retail Food Group Limited · ASX:RFG
Retail Food — Wilson HTM Investor Conference 2014
15 slides from Retail Food's conference presentation, Jun 3, 2014
Slide 1: Wilson HTM Investor Conference – 3rd June 2014
Wilson HTM Investor Conference – 3rd June 2014 For personal use only
Slide 2: Retail Food Group Limited (ASX: RFG)
Retail Food Group Limited (ASX: RFG) For personal use only RFG listed on 20th June 2006 and commenced quotation on the on 22nd June 2006 - 7 consecutive years of EBIT, NPAT, EPS & Dividend accretion (4) RFG designs, develops and manages retail franchise systems and is the intellectual property owner
Slide 3: Our Brand Systems comprise 1,400+ franchise outlets
Our Brand Systems comprise 1,400+(1) franchise outlets For personal use only 342 Donut King 286 Brumby’s Bakery 314 Michel’s 85 Esquires Coffee Outlets Outlets Outlets Patisserie Outlets (including bb’s Café) RFG conducts a pure franchise model: - all outlets franchised - non corporate model(2) Outl
Slide 4: Historical Performance – FY06 – FY13
Historical Performance – FY06 – FY13 For personal use only Financial Year – Core Performance (1) FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Total Revenue (2) $20.5m $23.6m $114.1m $130.5m $118.6m $110.0m $101.9m $117.0m EBIT $9.8m $12.2m $32.2m $40.1m $44.3m $46.0m $50.1m $55.9m NPAT $5.9m $7.5m $15.4m
Slide 5: Shareholder Value
Shareholder Value For personal use only 25.00 80.0% 70.8% 70.0% 62.5% 19.75 20.00 Dividends (cents per share) 59.5% 55.8% 60.0% 17.50 Payout Ratio (%) 45.9% Dividends (cents per 48.9% 14.50 50.0% 15.00 share) 39.2% 11.75 40.0% 10.00 9.25 8.50 30.0% Dividend payout ratio % (Core earnings) 6.25 20.0%
Slide 6: Franchisee Revenue, Outlet Numbers & Coffee Revenue
Franchisee Revenue, Outlet Numbers & Coffee Revenue For personal use only 120.0 1,600 1,374 1,400 100.0 1,209 1,148 95.6 1,200 1,122 1,052 1,063 80.0 Number of Outlets 78.7 1,000 $ million 69.0 Outlet numbers 60.0 800 61.3 Franchise revenue ($ million) 56.3 Coffee revenue ($ million) 53.8 48.4 600 4
Slide 7: EBIT Growth Demonstrated
EBIT Growth Demonstrated For personal use only Acquired EBIT and Organic Value Add 60 28.0 27.9 30 27.9 27.9 25.6 25.6 25.6 26.0 26.0 25.6 50 23.7 25 19.9 40 20 Earnings Per Share EBIT ($M) 30 15 10.5 20 10 10 5 0 0 Proven strategy driving growth: • Brand System acquisition and consolidation • Organ
Slide 8: 1H10 - 1H14 Summary
1H10 - 1H14 Summary For personal use only Statutory Results 1H10 1H11 1H12 1H13 1H14 PCP % Total Revenue (1) $61.3m $60.3m $49.5m $60.0m $64.6m 7.7% EBIT $21.5m $22.2m $24.0m $25.2m $27.4m 8.7% NPAT $12.5m $13.6m $14.5m $14.6m $17.3m 18.0% Basic EPS 12.4 cps 12.8 cps 13.4 cps 12.5 cps 12.9 cps 3.2%
Slide 9: 1H14 Summary of Brand System Performance
1H14 Summary of Brand System Performance For personal use only 1H14 Donut Brumby's Michel's QSR Other Summary King Bakery Patisserie GFR($m)(1) 43.7 9.3 8.8 13.1 10.0 2.5 EBITDA contributions of the respective Brand Systems FSF ($m)(1) 23.5 5.4 5.4 5.1 6.4 1.2 vindication of RFG’s multi-revenue EBIT
Slide 10: 1H14 Summary Financial Performance
1H14 Summary Financial Performance For personal use only 10
Slide 11: 1H14 Headlines
1H14 Headlines For personal use only Financial Headlines: - NPAT: $17.3m (up 18.0% on PCP) - EPS: 12.9 cps (up 3.2% on PCP) - Dividends: 10.75 cps (up 13.2% on PCP) - Gross debt: $62.9m with cash and facility headroom of $85.5m - Gearing: Conservative gearing ratio of 14.1% and interest coverage of
Slide 12: Initiatives – Non QSR Brand Systems
Initiatives – Non QSR Brand Systems For personal use only Project Evo new outlets and refurbishments c.80 across: - Donut King - Michel’s Patisserie - Brumby’s Bakery Continued backfill of Evo elements into existing Brand System networks, including: - Menu extension - Product innovation - Merchandis
Slide 13: Initiatives – QSR Brand Systems
Initiatives – QSR Brand Systems For personal use only QSR400: - Continuing to capitalise on strong new site pipeline - FY14 new outlet growth c.80 - Continued investment in franchise support initiatives Menu Innovation: - Launch of Crust’s ‘Premium Starters’ category - Pizza Capers: relaunch of high
Slide 14: Operational Initiatives & FY14 Outlook
Operational Initiatives & FY14 Outlook For personal use only Operational Initiatives: Commissioning of 2nd Australian coffee roasting facility at Yatala, QLD incorporating chocolate blending capability and syrup production Commissioning of Australian wholesale coffee division: - Launch of RFG propri
Slide 15: 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, and accept no responsibility or liabili
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