Little World Beverages Ltd Agm Presentation October 2009
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LI LITTLE WORLD BEVERAGES LTD AGM PRESENTATION OCTOBER 2009 1 Manufacturing Little Creatures White Rabbit Brewery (Fremantle) Brewery (Healesville) Stone & Wood Brewery (Byron Bay) 20% interest Pipsqueak Cidery (Fremantle) Sales & Hospitality Distribution 14 in-house In house Fremantle Melbourne Sales Staff Logistics Team National A/C Mgt Export Agreements 2 2009 in Review - Highlights • The commissioning and full operation of the new Fremantle brewing facility; • Completion and commissioning of the new White Rabbit Brewery in Healesville Victoria; • Expanded cellar door operations in Fremantle and a full year of trading at the Little Creatures Dining Hall, Melbourne; • Upgraded sales and distribution capability to leverage the broadened beverage portfolio; • Additional management expertise including the appointment of a Chief Operating Officer, while the management structure has been re- organised in anticipation of future growth. 3 Full Year Result 2009 Summary Strong Financial Result… 2009 2008 Change ($mill) ($mill) Sales ↑ 40.0% 47.75 34.10 EBITDA ↑ 61.5% 10.0 6.18 Net Profit ↑ 32.9% 4.53 3.41 Operating Cash Flow ↑ 34.0% 8.14 6.07 4 Full Year Result 2009 Summary Shareholder value…. Change 2009 2008 Earnings per share (diluted) ↑ 32.9% 6.66 cents 5.01 cents Debt / (Debt + Equity) 37.9% 27.5% Dividend per share ↑ 4.3% 4.8 cents 4.6 cents Price per share (30 June) $1.65 $1.50 5 5 Year Performance… (CAGR 34.5%) $12 M EBITDA $10.0 M $10 M $8 M $6.2 M $6 M $4.6 M $3.7 M $4 M $3.1 M $2 M $- FY'05 FY'06 FY'07 FY'08 FY'09 6 5 Year Performance… NPAT (CAGR 17.4%) $5.0 $4.5 M $4.5 $4.0 $3.4 M $3.5 $3.0 M $3.0 $2.7 M $2.4 M $2.5 $2.0 $1.5 $1.0 $0.5 $- FY'05 FY'06 FY'07 FY'08 FY'09 7 Fremantle Brewery fully operational • Officially opened by Minister for Tourism with Federal member for Fremantle and Fremantle Mayor in attendance. • New German built brew house is fully operational with expanded fermentation added. • Leading edge technology to ensure control, quality, maximize cost savings and waste management. • Capacity increased and can be further expanded by additional cellaring and process configuration without significant capital requirements. 8 Hospitality • Fremantle trading area expanded with new Deck & Brew House Bars • Hospitality division both in Fremantle & Fitzroy delivered great results and remain key contributors to the brand and organizational culture. Brand and 9 White Rabbit Brewery White Rabbit Brewery •The White Rabbit Brewery in Healesville: September’08 Healesville Victoria was commissioned late this FY. •A unique dark ale has been released into the Victorian market with other markets to follow in the first half of FY10. •The beer is a 5.2% dark ale fermented in open vessels which are designed to contribute delicious malt character and fruity esters on the palate, with firm hop bitterness provided balance to ensure we have a great drinking beer. 10 •Being made available in keg and pack distributed by the LWB sales team. 11 Beer • The premium and craft segments continue to grow at double digit levels and deliver better margin performance. • Retailers are reducing range of mainstream beer in favour of growing craft and premium beer significance. • Pale Ale continues to build a reputation as one of Australia’s great beers. • Rogers’ has experienced double digit growth for the last 6 years. • Bright Ale continues its strong performance particularly on draught with two successive years of double digit growth. • Pilsner, remains positioned as our “original house” lager style. 12 Cider • Cider growth internationally and a “first mover” opportunity lead to the creation of the company’s own cider product “Pipsqueak”. • Route to market aligned with existing distribution network. • Increasingly competitive market as majors introduce new products however Pipsqueak is maintaining solid growth year on year. 13 LWB Jones St Packaging & Logistics Centre 14 Capital Expenditure & Funding Capital expenditure program: Completed • New brewery commissioned with increased production capacity. • Packaging, Logistics & Admin premises at Jones St O’Connor. • Further expansion of Fremantle hospitality • Opening of new outdoor deck bar • Opening of White Rabbit Brewery • 20% investment in Stone & Wood Brewing in Byron Bay. Current Works • Minor additions to Dining Hall • Planning for FY10 investment in boardwalk link. • New Filter for Fremantle Brewery 15 Capital Expenditure & Funding Sources of funding – National Australia Bank $19.5m facility expiring in April 2012 – Funds from IPO $21.5m – Cash flow from operations. • The funding in place is sufficient to meet the planned capital expenditure program. 16 International • LWB have signed a new UK distribution agreement with Aspall Cyder Ltd. Aspall have their own sales team covering major regional wholesalers and national retail chains offering LWB a stronger springboard in this market. • LWB have signed a new Singapore agreement with Pacific Beverages Pte Ltd. PB also provide a stronger sales and distribution platform. • Little Creatures beers are also sold in New Zealand and Denmark. 17 Growth Strategy • Little Creatures Brewing plans to further establish a position as WA’s local brewer, in addition to growing national brand value by leveraging its key strengths in product quality and distinctive culture. • The premium and craft segments are the fastest growing in the beer market by volume & value. Little Creatures can benefit from what is expected to be a long term consumer preference for quality and differentiation. • Increase sales and distribution “muscle”: Little Creatures has increased its sales manning, installed better logistics and systems back up, and is progressively centralizing this division on the east coast. • Access product/creative development expertise to explore new opportunities. • Rollout of new White Rabbit Brewery product through FY10 with Victorian regional focus. • Managed seeding and growth of Pipsqueak Cider to gain market share of the growing cider category. • Cultivation of current & new export markets with long term objectives. 18 Disclaimer This presentation has been prepared by Little World Beverages Limited (LWB) and should not be considered in any way to be an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security, and neither this document nor anything in it shall form the basis of any contract or commitment. Prospective investors should make their own independent evaluation of an investment in LWB. Nothing in this presentation constitutes investment, legal, tax or other advice. The information in this presentation does not take into account your investment objectives, financial situation or particular needs. The information does not purport to constitute all the information that a potential investor may require in making an investment decision. LWB has prepared this presentation based on the information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by the law, none of LWB, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on part of any of them or any other person, for any loss arising from the use of this presentation or its content or otherwise arising in connection with it. 19 This presentation contains information about the past performance of LWB, past performance is not necessarily indicative of the future performance of LWB..