Savor Ltd. · NZX:SVR
Savor — Shareholder Meeting (August 2022)
36 slides from Savor's shareholder meeting presentation, Aug 30, 2022
Slide 1: Annual Shareholders Meeting
Annual Shareholders Meeting 30 August 2022 LIMITED
Slide 2: Welcome
Welcome Savor Limited Annual Shareholders Meeting 2
Slide 3: Agenda
Agenda – Year to date trading update – External debt position – Key Objectives – Turning Savor into a $70m business by 2024 – Powering growth to $100m revenue – Focus for the next 12 months – Formal business – Questions – Close Savor Limited Annual Shareholders Meeting 3
Slide 4: Paul Robinson, Chairman
Chairman Paul Robinson Savor Limited Annual Shareholders Meeting 4
Slide 5: Year to date trading update - April through July
Year to date trading update - April through July Strong revenue performance of $14.5m with the Group bouncing back after Omicron restrictions lifted. Year to date revenue exceeding expectations with customer demand demonstrating the strength of our venues. Revenue ($14.5m) vs. budget ($11.3m) is 28%
Slide 6: Year to date trading update - April through July
Year to date trading update - April through July Our reaction has been to exercise our pricing power by: - In July, increasing menu pricing by an average of 7% across all venues - In August, increasing alcohol pricing by 10% across the Group The net result is an annualised increase in revenue of 11%
Slide 7: Ratio of debt to EBITDA
Ratio of debt to EBITDA * Debt repayment has continued at an 14.00 accelerate rate through COVID with $2.8m principal repayment since 12.00 April 2021. 10.00 Expected debt to EBITDA ratio to be 8.00 less than 1:1 by 2024 (excluding further growth opportunities). 6.00 4.00 This ratio of debt position
Slide 8: Trading snapshot
& Trading snapshot $8.5m Annualised expected sales $80 Average spend per head 21-23% EBITDA returns $42,500 Revenue per seat Revenue is exceeding expectations, especially at Mission Bay where the Azabu brand has been a great success story. Savor Limited Annual Shareholders Meeting 8
Slide 9: Trading snapshot
Trading snapshot $5.7m Annualised expected sales $90 Average spend per head 23-25% EBITDA returns $47,500 Revenue per seat – NSP is well ahead of budget for the year to date. – Alcohol sales representing 46% of revenue, a margin increase of 2% over 2019 sales. Savor Limited Annual Shareholders Meeti
Slide 10: Trading snapshot
Trading snapshot $15m Annualised expected sales $60 Average spend per head 20-22% EBITDA returns $89,000 Revenue per seat – At $15m of sales Amano would be NZ's most successful restaurant. – EBITDA and average spend are slightly lower than other venues as a result of the bakery outperforming by deli
Slide 11: Key objectives
Key objectives The Group has three key objectives: 1. 2. 3. Drive free cash flows Share price recovery Liquidity in our stock Savor Limited Annual Shareholders Meeting 11
Slide 12: Lucien Law, CEO
CEO Lucien Law Savor Limited Annual Shareholders Meeting 12
Slide 13: Turning Savor into a $70m revenue business
Turning Savor into a $70m revenue business Current portfolio of brands on track to deliver $50m revenue.* New venues - MoVida and Bivacco expected to contribute a further $20m of revenue.* No additional significant overhead cost. *Annualised and assuming an uninterrupted trading environment Savor Li
Slide 14: The pathway to $70m
The pathway to $70m COVID-19 80,000,000 $70m MoVida & Bivacco 70,000,000 $50m 60,000,000 Hipgroup Mission Bay 50,000,000 Savor NSP acquisition Divest Moa 40,000,000 30,000,000 Moa standalone 20,000,000 Moa standalone 10,000,000 0 2017 2018 2019 2019 2020 2021 2022 2024 Savor Limited Annual Sharehold
Slide 15: Expected trading snapshot
Expected trading snapshot Expected annual revenue from MoVida $7.5m and Bar Non Solo (L2) 20-22% EBITDA return (approx.) Iconic Melbourne concept opens today for the first time in New Zealand. A license agreement with potential for future expansion. Savor Limited Annual Shareholders Meeting 15
Slide 16: Bivacco - Expected trading
Bivacco - Expected trading Formally HQ in the Viaduct $12.5m Expected annual revenue 25% EBITDA return (approx.) High return expected due to location, complementary bar & strong beverage sales. Premium venue, arguably Viaduct Harbour's most desirable corner. Strong statement for Savor’s first venue
Slide 17: At $70m Savor has scale
At $70m Savor has scale • At $70m of revenue Savor is a $8-10m EBITDA business*: - Overheads & listing costs will be less than 5% of revenue - Opens Savor to a wider range of investors - Third party debt to EBITDA will be at an all time low of approximately 1:1 - Expected free cash flows of $3-5m an
Slide 18: Group Profitability
Group Profitability Savor transformed the Moa business from one 12,000,000 Movida & that focussed on revenue to a business driving Bivacco profitability. The merger of Savor ended the losses 10,000,000 and delivered a breakeven position for the first time since listing. 8,000,000 Hipgroup The acquis
Slide 19: Savor has the portfolio of brands to grow to a $100m revenue business
Savor has the portfolio of brands to grow to a $100m revenue business Savor Limited Annual Shareholders Meeting 19
Slide 20: Growth to $100m revenue has 3 pillars
Growth to $100m revenue has 3 pillars 1 2 3 Signature Oji Amano venues FA ST CA S UA L Savor Limited Annual Shareholders Meeting 20
Slide 21: Fast food with slow food values
Fast food with slow food values Savor Limited Annual Shareholders Meeting 21
Slide 22: OJI – the positioning
OJI – the positioning MULTI SITES Oji Sushi is positioned as a premium, specialist sushi brand, competing with the likes of St Pierre's. However, we believe we have a higher quality sushi menu leaning LOW PREMIUM QUALITY on our experience and skill from our Japanese restaurants. SINGLE SITE Savor Li
Slide 23: OJI – a brand in growth
OJI – a brand in growth When Savor acquired OJI we identified 3 areas for expansion. OJI Stores OJI Inside OJI in Schools • 3x existing stores. • 1x Four Square in July with future Four Square • We saw a gap in the healthy quality lunch time offer in – 2x Commercial Bay. roll out planned. schools an
Slide 24: OJI: Sustained sales growth
OJI: Sustained sales growth Over the past 6 month sales have tripled, $350,000 from $100k to $300k per month of sales. $300,000 20% month-on-month growth for the past 6 months. $250,000 We see more growth with the CBD getting $200,000 busier from tourists and summer trading. $150,000 We believe sale
Slide 25: Amano - Bakery
Amano - Bakery Amano Bakery provides an all-day bakery offering a step above the market. Opened in 2016 with solid founding credentials, Amano has become a leading artisan bakery in Auckland. $60k Average weekly revenue ($3.1m) $17 Average transaction size 4,300 Customers per week 17-20% EBITDA retu
Slide 26: Amano - Bakery expansion
Amano - Bakery expansion Amano Bakery consistently exceeds $60k of sales per week. It has proven to be resilient to the ebb & flow of CBD workers and maintained its sales as “work from home” trends have continued. Centralised production would ensure high quality & allow for further expansion. Savor
Slide 27: Amano expansion
Amano expansion Focusing on two key areas of growth. Amano Britomart Amano Bakery Amano Wholesale • Amano Britomart is a brand temple of • Amano Bakery standalone stores. • We have large retailers with strong excellence for the Amano brand. demand for our quality product. • Bakery / Deli / neighbour
Slide 28: The pathway to $70m
The pathway to $70m COVID-19 80,000,000 $70m MoVida & Bivacco 70,000,000 $50m 60,000,000 Hipgroup Mission Bay 50,000,000 Savor NSP acquisition Divest Moa 40,000,000 30,000,000 Moa standalone 20,000,000 Moa standalone 10,000,000 0 2017 2018 2019 2019 2020 2021 2022 2024 Savor Limited Annual Sharehold
Slide 29: Formalities
Formalities The Group needs to address the following: Resolution 1. Re-election of Paul Robinson Resolution 2. Re-election of Lucien Law Resolution 3. Auditor Remuneration Savor Limited Annual Shareholders Meeting 29
Slide 30: Resolution 1
Resolution 1 That Mr Paul Robinson be Paul Robinson was appointed to the Board in April 2019 and elected by shareholders in September 2019. Paul therefore re-elected as a Director of offers himself for re-election by shareholders at the 2022 Annual Meeting. Paul is currently Chair of the Board and a
Slide 31: Resolution 2
Resolution 2 That Mr Lucien Law be Lucien Law was appointed to the Board in April 2019 and elected by shareholders in September 2019. Lucien therefore offers himself for re- re-elected as a Director election by shareholders at the 2022 Annual Meeting. Lucien is currently a member of the People & Cul
Slide 32: Resolution 3
Resolution 3 To authorise the Directors to fix the auditors’ remuneration. Savor Limited Annual Shareholders Meeting 32
Slide 33: Questions
Questions Savor Limited Annual Shareholders Meeting 33
Slide 34: Thank you for attending our Annual Shareholders Meeting
Thank you for attending our Annual Shareholders Meeting 30 August 2022 LIMITED
Slide 35: Important Notice and Disclaimer
Important Notice and Disclaimer Disclaimer This presentation has been prepared by Savor Limited (NZ company number 3979219, NZX ticker SVR (the “Company”). Information This presentation contains summary information about the Company and its activities which is current as at the date of this presenta
Slide 36: Important Notice and Disclaimer
Important Notice and Disclaimer Non-GAAP financial information Certain financial information included in this presentation is non-GAAP financial information. This non-GAAP financial information is not audited, and caution should be exercised as other companies may calculate these measures differentl