yowie annual shareholder meeting · this presentation (the “presentation”)is confidential and...
TRANSCRIPT
1 © Yowie
Yowie Annual Shareholder Meeting
Perth, Australia
NOVEMBER 2016
2 © Yowie22 © Yowie
Disclaimer
This presentation (the “Presentation”) is confidential and its content may not be copied, reproduced, redistributed, quoted, referred to or
otherwise disclosed, in whole or in part, directly or indirectly, to any third party, except with the prior written consent of Yowie Group Ltd
(the “Company”).
This Presentation is for informational purposes only, and does not constitute or form part of an offer, solicitation or invitation of any offer, to
buy or subscribe for any securities, nor should it or any part of it form the basis of, or be relied in any connection with, any contract or
commitment whatsoever.
This Presentation contains interpretations and forward-looking statements that are subject to risk factors associated with the confectionary
and retail industries. You are cautioned not to place reliance on these forward-looking statements, which are based on the current views of
the Company on future events. The Company believes that the expectations reflected in the presentation are reasonable but may be
affected by a variety of variables and changes in underlying assumptions which could cause actual results to differ substantially from the
statements made.
The Company and its Directors, agents, officers or employees do not make any representation or warranty, express or implied, as to
endorsement of, the fairness, accuracy or completeness of any information, statement, representation or forecast contained in this
presentation and they do not accept any liability for any statement made in, or omitted from, this Presentation.
The information contained in this Presentation noted above are subject to change without notice. This presentation is intended only for
the recipients thereof and may not be forwarded or distributed to any other person and may not be copied or reproduced in any manner.
Kinder Surprise is copyright of Ferrero 2009 and a licensed trademark of the FERRERO INTERNATIONAL S.A.
Cadbury Schweppes PLC and Cadbury PLC mentioned in this document are now owned by the Kraft Foods Inc.
Prepared for Yowie Group Ltd for the Yowie TM Label
3 © Yowie33 © Yowie
Executive Summary –
Yowie Well Positioned for Strong Growth
Unique product and brand brings innovation to the
category with contemporary relevant positioning
Strong growth realization in US, with Global opportunities
#1 selling immediate consumption novelty chocolate
item in US
Potential to expand into digital and
entertainment categories
Building on talent base
US$30m cash and no debt – flexibility to ramp up
marketing spend and manufacturing to capture
the opportunity
4 © Yowie44 © Yowie
The Yowie Appeal
Unique multi-category offering – confectionery, collectible,
education through play & learn website
Strong brand mission – save the natural world
Collectibility and surprise
Digital engagement, play and learn
Premium price point
Value for consumers – confectionery plus collectible
Strong profit proposition for retailers
5 © Yowie
Yowie Brand Positioning
TARGET MARKETChildren, parents, guardians,
grandparents, family and friends –
for treat and everyday gifting
SAVE THE NATURAL WORLDLearn through Play – Educating
children to protect the environment
and endangered animals
5 © Yowie
6 © Yowie6 © Yowie
Text &
more text!
Yowie Key Objectives 2017
6
Strong top line growth
Strengthen brand awareness through innovative marketing
Permanent planogram placement at major US retailers
Achieve breadth and depth national US distribution
Launch Series 2 ‘All Americas Series’ and Series 3
‘Yowie World’ Limited Edition Yowie Collectibles
Launch pre Halloween & pre Easter
advertising campaigns
Launch Yowie publishing
Expansion into new markets beyond US
Double US foiling capacity
© Yowie
7 © Yowie77 © Yowie
Highlights from Q1 Performance
Appointed Cove Overley as CMO supporting global brand focus
Achieved record Net Sales of $4.9M a 104% increase over Q1 2016
on gross margin of 53%
Launched Series 2 in US
Reached highest US xAOC market share of 0.7%
#1 Novelty item and #4 chocolate item on front end at our top account
Produced a record 2.9M units
Initiated Fall marketing campaign on social media, TV and sampling
Continued distribution expansion into new retailers
Progressed work on new market entries and publishing
8 © Yowie8 © Yowie
Text &
more text!need N
Net Sales FY17, FY16 and FY15 by Quarter
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
FY 2015 FY 2016 FY 2017
Q1 Q2 Q3 Q4
9 © Yowie9 © Yowie
Text &
more text!
Net cash position at US$30million ending Q1 2016
No debt
Accounts receivable 98% current,
collected within 30 days
Building inventory in Q2 fiscal year to
service larger number of customers
Low fixed asset position
Strong Balance Sheet
9 © Yowie
10 © Yowie1010 © Yowie
Yowie Growth Pillars
SALES
Channel
expansion -
U.S market
•
Increased
customer base
•
Increased
breadth &
depth of
distribution
•
Market
expansion –
global
•
Increase
merchandising
MARKETING
Trial, test &
learn strategy
(as per sales)
•
Build
investment
based on
results
•
Mixed media &
key market
testing
•
Increase brand
awareness
•
Develop world
conservation
partnerships
PEOPLE
Acquire and
develop talent
•
Strengthened
support
functions
•
Increase sales
force
SUPPLY
Ensure a
reliable and
efficient
supply chain
•
Reduce cost
of production
as scale
increases
•
Seek new
sources of
supply
DIGITAL
Create new
revenue
streams in
new
categories
•
Publishing
•
Webisodes
development
•
Film & Cartoon
11 © Yowie1111 © Yowie
Significantly Expand Distribution in US
Added 9 new accounts in Q1
Increasing US sales resources
Merchandising units sold in Q1 reached 17,500 X 48 count
units providing increased merchandising at US retailers
Achieved 0.7% market share in Nielsen xAOC latest 52 weeks
Participated in McLane customer Trade Show to reach
new customers
12 © Yowie1212 © Yowie
YOWIE! A Top Novelty Item in Total US xAOC
$42.98
$24.48 $22.15
$18.32
$15.79$14.98 $14.44
$14.26 $14.24$14.12 $13.90
$13.75$13.30 $13.04
$12.74 $12.33 $11.94 $11.69 $11.59 $11.49
32.5
92.3
86.2 83.383.6
90.691.5 91.3
84.0 84.6
91.0
79.0 78.4
81.3
61.365.9
76.5
83.2 84.5 83.5
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
$45.00
$50.00
YOWIE CHOCNOVELTY 1 OZ081080802001
SNICKERS SINGLES1.86 OZ
004000042431
REESE PNT BTRCUP MLK KNG 2.8OZ 003400000480
M&M PEANUTKING SZ 3.27 OZ004000000432
KIT KAT KING SIZE3 OZ
003400000229
REEESE CUPSINGLES 1.5 OZ003400000440
HERSHEY MILKSINGLES 1.55 OZ003400000240
KIT KAT SINGLES1.5 OZ
003400000246
SNICKERS KINGSIZE 3.29 OZ
004000000263
M&M PEANUTSINGLES 1.74 OZ004000000032
HERSHEY ALMONDSINGLES 1.45 OZ003400000241
ICE BRK WNTRMNT BRTH 1.5 OZ
003400000009
TWIX CARAMELKING SIZE 3.02 OZ
004000000405
ICE BRK BRTHSWTN CNST 1.5 OZ
003400000007
LNDT EXC DRK 70PCT BAR 3.5 OZ003746601763
BRTH SVR SPRMSWTN 1.27 OZ003400000337
M&M'S MILK KINGSIZE SZ 3.14 OZ004000000431
ALTD PPRM BRTHSWTN 1.76 OZ002200015933
HERSH COOKIES &CRÈME SNG 1.55
OZ 003400000239
TIC TAC FRSH BRTHSWTN CNST 1 OZ
000980000761
Immediate Consumption Confectionery: $ Per Store Per Weeks SellingNielsen: Total US xAOC Latest 52 Weeks Ending 10/8/2016
$ Per Store Weeks Selling % ACV
2x the productivity of leading brands with only a 32.5% ACV
Source: Nielsen Total US xAOC 52 Weeks Ending 10/8/2016
13 © Yowie1313 © Yowie
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
6/7/
201
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/201
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7/19
/201
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/201
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9/20
/201
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10/1
1/2
014
11/1
/201
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11/2
2/2
014
12/1
3/2
014
1/3/
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1/24
/201
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2/14
/201
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3/7/
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3/28
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4/18
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/201
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6/20
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7/11
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8/1/
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8/22
/201
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9/12
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10/3
/201
5
10/2
4/2
015
11/1
4/2
015
12/5
/201
5
12/2
6/2
015
1/16
/201
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2/6/
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2/27
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6
The Yowie Growth Trajectory
YOWIE!The Fastest Growing Novelty Brand in the US!
Yowie is a Multi
Million $ Brand
in the US!
$23 Million in
CUM $ sales
since launch!11/15/2014
$237,764
10/10/2016
$23,268,163
13 © Yowie
14 © Yowie1414 © Yowie
Yowie Tier 1 Partners in the US-Today
15 © Yowie15 © Yowie
Text &
more text!Mass Merchandiser: From successful trial to national rollout to
over 4,500 stores
Drug: National pharmaceutical retailer 6,500 stores
Fuel & Convenience: 2 national groups
Grocery: National grocer rollout to 1,318 stores
General Retail: Cost Plus World Market
Distributors: 6 Distributors delivering coverage across 50 U.S States
Leisure & Entertainment: Zoos and Resorts
Also Selling On Line: 2 on-line retailers
Store Expansion: Reached over 40k stores in 2016 fiscal
U.S. Market Retail Accounts Update
16 © Yowie16 © Yowie
Text &
more text!
Ensure Reliable & Cost Efficient Supply Chain
16
State of the art chocolate molding and packaging
line supports significant expansion capability
90 million units p.a. molding capacity
Ability to optimize costs going forward
Expansion to 40 million p.a. packaging
by mid-November 2016
Strong Quality Control Systems
Exploring alternate supply sources
© Yowie
17 © Yowie
Enter New Markets
Developing market research for North America expansion
Conducted Focus Group research in Asia
Developing distribution plan for Australia
Assessing distribution partners in Europe
Exploring lower priced product
for price segmentation
Developing launch plan for 2 new
markets in 2017
17 © Yowie
18 © Yowie18 © Yowie
Text &
more text!
Build Global Brand Awareness through Innovative Marketing
Next stage development Yowieworld.com
Increased advertising investment in US of $2M+, including TV
Expanded Yowie Collectibles program
New Yowieworld.com Collectors Zone
Seasonal promotion activities
New “my protectedspecies” consumer promotion
Partnerships and Aliances with conservation entities
Affiliation with local Zoos, Aquariums and Ecology-based ve
Market research
18 © Yowie
19 © Yowie
Fall Marketing Campaign
19 © Yowie
Key objective of the Fall campaign is raising brand
awareness
Social media campaign near 50M impression on
Facebook and YouTube
Pre-Halloween includes 10 Yowie Viral videos
(50K views in first 2 days)
TV ads in 2 cities on popular networks: Nickelodeon,
Nick@Nite, Cartoon Network, NBC
Sampling to consumers at zoos
Use of Bus Kings in 2 cities to reach mass audience
20 © Yowie2020 © Yowie
84.5 Million Total Impressions
360˚ Yowie $1.1 Million Advertising Campaign
50 Bus Kings
Illinois & Texas
10.8M
Impressions
38.8M
Impressions
4.2M Impressions
Mobile Video
On Air Broadcast
2.0 M Impressions
Illinois & Texas
21 © Yowie2121 © Yowie
Bus Kings
21
22 © Yowie© Yowie2222
Create new revenue streams in new categories
23 © Yowie23 © Yowie
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more text!
Publishing
Yowie Publishing to launch in fiscal 2017
23 © Yowie
24 © Yowie2424 © Yowie
Investing in YowieWorld.com
Next stage development using new insights and learning
New content, new and better gaming
New creative considering publishing animation
Exploring live footage of animals in their natural habitat
NEW! Tabs:
“Collectors” tab to organize your Yowie collection
“Video” tab features all the latest advertising materials
“My Protected Species” tab featuring new consumer promotion
2424
25 © Yowie2525 © Yowie
Yowie Animation & Film Development
Meetings progressing with animators, studios
and distributors
Studios and distributors are excited by the potential
of the Yowie creative
Yowie confectionery generates unique marketing
opportunities through retail network distribution
Currently in negotiation with experienced Hollywood
film script writer identified for development of Yowie
webisodes, animated series and feature film script.
25 © Yowie
26 © Yowie© Yowie2626
Acquiring &
Developing Talent
27 © Yowie27 © Yowie
Text &
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Group Organizational Structure
Group CEO
YGL
CEO
YNA
V P Supply Chain
& Logistics
YNA
Director Supply Chain
& Logistics
Director Customer Service
Executive Administration
Supply Chain & Logistics
SVP Sales
YNA
VP Sales
YNA
SVP Sales
YNA
Financial Controller
YNA
Accounting Administrator
YNA
Accounts Administrator
YNA
Operations Planning
YGL
Contract Manufacturing
COO
YGL
Company Secretary
YGL
Group Accountant
YGL
Corporate Accountant
YGL
Accounting Administrator
YGLCreative Consultant
YOSH - Design Studio
Commercial Finance
Manager
YGL
Chief Marketing OfficerYHKHL
Creative Advisor
Bruce Davey
BOARD of DIRECTORS
YOWIE GROUP LIMITED
Executive Chairman
Executive Director
Non Executive Director
27
28 © Yowie28 © Yowie
Our Objectives for 2017
On track for strong growth versus 2016
Increase US sales team and add new accounts
Improve cash outflow versus 2016 despite significant
talent acquisition and marketing investment
Significantly increase brand awareness in US
Continue to gain US market share
Double foiling capacity by November 2016
On track to publish Yowie books
Enter new markets
Maintain strong balance sheet
29 © Yowie
Invest for success in Yowie today!