Briscoe Group Limited · NZX:BGP
Briscoe — Briscoe Group Australasia — Investor Presentation (October 2017)
25 slides from Briscoe's investor presentation, Oct 2, 2017
Slide 1: October 2017
For personal use only October 2017
Slide 2: Contents
For personal use only Contents 01 Overview of Briscoe Group 2 02 Key strengths 5 03 Financial performance 11 04 Briscoe Group strategy 13 05 Sector benchmarking 20 A Board and management 22
Slide 3: Overview of Briscoe Group
For personal use only 01 Overview of Briscoe Group
Slide 4: Briscoe Group overview
Briscoe Group overview For personal use only Briscoe Group is New Zealand’s leading homeware and sporting goods retailer. BGP listed on the NZX in December 2001 and the ASX in July 2017. Retail brands Sales history 583 Homeware 553 — Supplies quality and competitively priced homeware 507 484 — Large
Slide 5: Strong track record
Strong track record For personal use only Briscoe Group’s experienced management team and Board of Directors have achieved a track record of delivering strong returns to shareholders Aggregate total shareholder return over the last five years History of delivering consistent earnings growth (August
Slide 6: Key strengths
For personal use only Key strengths 02
Slide 7: Quality of product ranges
Quality of product ranges For personal use only Homeware Selected brands stocked by Briscoes Homeware include: ‘Good-better-best’ product strategy Ability to offer true value across a number of price points Sporting goods Close relationships with supply partners to build desirable product rang
Slide 8: Focus on customer engagement
Focus on customer engagement For personal use only Customer service and engagement is a priority Introducing programmes that will improve customer engagement and enhance service at the checkouts Process reviews across all service areas have resulted in improved order-picking accuracy and speed,
Slide 9: Nationwide store footprint
Nationwide store footprint For personal use only Expertise in ‘big box’ retail Extensive store network Coverage across all of New Zealand’s main centres Continued investment in development, upgrading and refurbishing Auckland the store network to improve customers’ in-store experience Hamilton N
Slide 10: Significant growth in online sales channel
Significant growth in online sales channel For personal use only Online sales now >7% of Group sales Online sales as a % of Group sales Part of the Group’s omni-channel strategy 7.2 >40% growth per annum for the last two years, 1H18 +41% 6.1 Strong growth expected for the foreseeable future 4.
Slide 11: Proven operational approach
Proven operational approach For personal use only Core strategy to focus on effective retailing — Brand selection and management — Inventory control — Gross Profit management — Wage and expense control Simplified operational and organisational structures — ‘Profit Centre’ driven with focus on an
Slide 12: Financial performance
For personal use only 03 Financial performance
Slide 13: Financial performance overview
Financial performance overview For personal use only Briscoe Group has a history of earnings growth over the last six years with EBIT growing from $37m in FY12 to $80m in FY17 Briscoe Group financial performance FY12 – FY17 As reported NZ$m, year ending CAGR Briscoe Group financial performance overv
Slide 14: Briscoe Group strategy
For personal use only 04 Briscoe Group strategy
Slide 15: Key strategies
Key strategies For personal use only Be the first choice for customers considering purchasing homeware or sporting goods Doing things better Understanding our customer 1 Growth initiatives Store network expansion 2 Improve website and digital communication Acquisition – Aus/NZ Enhance bric
Slide 16: Key strategies: understanding our customer
Key strategies For personal use only Doing things better Understanding our customer 1 - Research and insights - Marketing tests - Tokenised data - Loyalty Improve website and digital communication - Platform review and replacement - Routing enhancement - Click & Collect - Social Media Enhance
Slide 17: Key strategies: doing things better
Key strategies For personal use only Doing things better Maintain best ranges of brands 1 - Exclusivity - Good/better/best strategy Improve operations and systems - Product availability - Conversion rate - Store management structure Build rewarding careers for our people - Clear and appealing
Slide 18: Key strategies: growth initiatives
Key strategies For personal use only Growth initiatives 2 Store network expansion - Where return justifies investment - Strategic property investment Acquisition – Aus/NZ - Kathmandu (July 2015) - Strategic 19.8% purchase - Largest single shareholder - Significant ROI PAGE 17
Slide 19: NZ / Australia retail environment – key themes
NZ / Australia retail environment – key themes For personal use only Fragmentation of media Online and social media Changing the way retailers engage with Growth of online channel and importance consumers of social media Amazon International retailers Entrance into the Australian market Increasing p
Slide 20: Briscoe Group trading update 1H18
Briscoe Group trading update 1H18 For personal use only Total Sales $280.3m (+4.4%) Sales and EBIT 1H12 – 1H18 (NZ$m) Homeware +4.6% 400 45 42 Sporting Goods +4.2% 350 39 38 40 38 Same-Store-Sales growth (+4.4%) Homeware +5.0% 314 300 309 35 Sporting Goods +3.4% 280 276 268 266 250 Gross Pro
Slide 21: Sector benchmarking
For personal use only 05 Sector benchmarking
Slide 22: Sector benchmarking – sales growth and EBIT margin
Sector benchmarking – sales growth and EBIT margin For personal use only Briscoe Group has delivered consistent same-store sales growth and expanded its EBIT margin over time Same store sales growth (%) EBIT margin 10% 16% 14% 8% 13.7% 8.0% 12% 11.9% 6% 10% 10.5% EBIT margin (%) SSS growth (%) 5.4%
Slide 23: Appendix: Board and management
For personal use only A APPENDIX Board and management
Slide 24: Board of Directors
Board of Directors For personal use only Dame Rosanne Meo Director and Chairman Tony Batterton Non-Executive Director — Appointed Chairman in 2001 — Appointed in 2016 — Extensive governance experience of over 25 years, — Partner and Executive Director of Evergreen Partners mostly in New Zealand but
Slide 25: Senior Management
Senior Management For personal use only Geoff Scowcroft Chief Financial Officer Stephen Jones Group General Manager – Operations — Joined Briscoe Group as Chief Financial Officer in 2002 with — Joined Briscoe Group in 2017 responsibility for finance, IT, and administration — Over 25 years of multi-n
Briscoe Group Australasia — Investor Presentation (October 2017) on 6ix