MANAGEMENT PRESENTATION JUNE 2016

Transcription

1 MANAGEMENT PRESENTATION JUNE 2016

2 DISCLAIMER This presentation contains forward-looking statements and projections. These reflect our current expectations based on what we think are reasonable assumptions but for any number of reasons these assumptions may prove incorrect. We give no warranty or representation as to our future financial performance or any future matter. Except as required by law or NZX listing rules, we are not obliged to update this presentation after its release, even if things change materially. This presentation is for information purposes only. It is not an offer of securities, or a proposal or invitation to make any such offer. It is not investment advice or a securities recommendation, and does not take into account any person s individual circumstances or objectives. Every investor should make an independent assessment of Cooks Global Foods on the basis of expert financial advice. Distribution of this presentation (including electronically) may be restricted by law. You should observe all such restrictions which may apply in your jurisdiction. To the maximum extent permitted by law, we will not be liable, whether in tort (including negligence) or otherwise, to you or any other person in relation to this presentation including any error in it.

3 Navan - IRELAND INTRODUCTION

4 WHO ARE WE Cooks Global Foods (Cooks)owns the international intellectual property and master franchising rights to the Esquires Coffee brand (excluding Australia and New Zealand). In the UK, Ireland and China it directly operates and franchises Esquires Coffee stores; whilst in the Bahrain, Egypt, Jordan, Kuwait, Saudi Arabia, Indonesia, Northern Cyprus, and Canada it has master franchise agreements. It operates an in-house design company, Design Environments to ensure Esquires Organic, Fairtrade, natural, environmentally responsible, artisan and authentic core values are embedded in all Esquires stores. Cooks also owns Scarborough Fair and Progressive Processors, respectively a supplier of Organic and Fairtrade coffee, tea and hot chocolate and a manufacturer of value-added horticulture products.

5 VISION AND STRATEGY OUR VISION To be the world s leading Organic and Fairtrade coffee retailer. STRATEGY Cooks has three elements to its core growth strategy: Growing the Esquires brand in its existing markets; Growing the Esquires brand in strategically important new markets; and Growing its supply chain

6 GLOBAL COFFEE INDUSTRY OPPORTUNITY Cooks is already firmly positioned in the New Zealand led third wave of global coffee culture First Wave Entry Point, Existing Culture Second Wave The Branded Offer, Starbucks Pioneers Culture Third Wave Independent, specialty coffee Opportunity to leverage this with our unique ability to provide Organic and Fairtrade food and beverage offerings tailored to the local market as well as providing stores with design elements that reflect the local environment. Coffee Market Stages in Developed Markets

7 Belpark - INDONESIA BRAND POSITIONING

8 DOUBLE CERTIFICATIONS Esquires coffee beans come from certified fair-trade and organic farms in Peru, Honduras, Indonesia and Ethiopia, roasted in Scotland and New Zealand. Esquires and Scarborough Fair also source 100% fair trade and organic tea from Sri Lanka.

9 NATURAL & ENVIRONMENTALLY RESPONSIBLE ORGANIC AND 100% FAIRTRADE SUSTAINABLE & ETHICALLY SOURCED THE BRAND ARTISAN & AUTHENTIC LOCAL PERSONALITY & COMMUNITY FOCUSED REFLECTS NEW ZEALAND S CULTURE & HERITAGE OUR BRAND VALUES ARE APPLIED TO ALL THAT WE DO.

10 OUR MARKET POSITIONING BRAND POSITIONING PRICE Premium - Coffee Roasters Cafe s Premium Mainstream Mainstream Main - Low Market COFFEE QUALITY

11 OUR TARGET CUSTOMERS FOLLOW Premium Mainstream Customers years old High awareness of Organic & Fairtrade priniciples, health, sustainability Greater appreciation of design, arts, music, and cultures Affluent, professional, well-travelled, and welleducated. High awareness and appreciation for artisan quality coffee, genuine, more thoughtful and less corporate experiences

12 Durham - UK GROWTH OPPORTUNITY

13 CONTINUING TO EXPAND OUR GLOBAL PRESENCE TOTAL TOTAL CURRENT STORE NUMBERS as of 31 March 2016 by March 2021 TARGET STORE NUMBERS 2 50

14 KEY GROWTH FACTORS COMPARE TO PRIOR FISCAL YEAR UP 21 % 22 % UP UP 17% 4 % UP AS OF 31 MARCH 2016 AVERAGE STORE NUMBERS SALES AS OF 27 MARCH 2016 AVERAGE AS OF 27 MARCH 2016 AVERAGE AVERAGE TRANSACTION VALUE AS OF 27 MARCH 2016 AVERAGE TRANSACTIONS

15 THE BUSIEST STORE JEDDAH AIRPORT, SAUDI ARABIA (OPENED IN FEBRUARY 2015)

16 HIGHEST SALES STORE IN GLOBAL SYSTEM MULLINGAR, CO. WESTMEATH. IRELAND (OPENED IN APRIL 2015)

17 Tianjin - China RECENT MAJOR DEVELOPMENTS

18 MAJOR RECENT DEVELOPMENTS CHINA Jiajiayue group became major shareholder in CGF Master Franchise acquired in February 2015 Major joint venture signed with China Bu Bu Gao (Better Life) Group in May 2015 Latest new store - Chongqing April Stores operating UK / IRELAND 10 UK stores completed rebranding with uplift in sales growth and average spending. Ethical Consumer Magazine ranks Esquires Coffee stores as having one of the best social and environmental impacts of the 14 major UK coffee chains surveyed in the study. Ireland 4 new stores opened in Mullingar,Navan and Galway in 2015 with the Dublin O Connell Street Store opened in March 2016.

19 INDONESIA First two stores opened in Jakarta in early 2016 MIDDLE EAST Master Franchise agreements for Jordan signed First store in Egypt opened January 2016 New store opened in Dubai in September 2015 Second outlet at Jeddah Airport opened December 2015 New store in Bahrain opened February 2016 in Dragon Mall CANADA Three stores in Alberta, including one drive through

20 EXISITING SHAREHOLDER YMCI GROUP Yunnan Metropolitan Real Estate Development Co.,Ltd (YMCI) China-based real estate development company, investments in HK and the UK Principally engaged in the real estate distribution, land primary development and property management. Owned by Yunnan Provincial government Market Capital CNY 7.9 billion / NZ$1.9 billion Kunming International Convention and Exhibition Center Crowne Plaza Beijing Sun Palace

21 NEW SHAREHOLDER JIAJIAYUE GROUP Top 30 Chinese Retail Chain Over 636 supermarkets, plus convenience stores, hotels and commercial real estate. Over 30,000 staff 2014 Sales over CNY 10 billion, NZ$2.4 billion Own a sheep and beef farm at Port Waikato. Partner with Esquires China since 2012, to build 50 stores in Shandong. Rongcheng Jiulongsheng Hotel, Shandong New Zealand Prime Minister John Key and JJY Chairman Wang Peihuan

22 NEW CHINESE PARTNER BUBUGAO GROUP (BETTER LIFE) Top 30 Chinese Retail Chain Over 472 supermarkets, plus convenience stores, hotels, shopping malls and commercial real estate. Over 60,000 staff 2014 Sales over CNY 27 billion, NZ$6.5 billion Partner with Esquires China since May 2015, aims to build 30 stores in Hunan, new store opened in November 2015 China MD Ellen Zhang with store staff CGF Executive Chairman Keith Jackson and BBG Chairman Wang Tian

23 NEW SHAREHOLDING STRUCTURE GRAEME KEITH JACKSON CONTROLLED 34% 140,504,423.5 COOKS INVESTMENT HOLDING LIMITED 25% 103,330,704.5 GRAEME KEITH JACKSON 9% 37,173,719 SHANDONG JIAJIAYUE INVESTMENTS 25% 103,330,704.5 YUNNAN METROPOLITAN CONSTRUCTION INVESTMENTS 13% 53,290,600 OTHERS 17% 32,890,456 ADG INVESTMENTS LIMITED 11% 42,199,758

24 ESQUIRES REVENUE BREAKDOWN AS OF 21 FEBRUARY % CHINA 22% IRELAND 8% KUWAIT 4% BAHRAIN 7% SAUDI ARABIA UK 2% UAE 2% CANADA 39%

25 HOW WE GENERATE REVENUE Revenue streams through Esquires include income from coffee and other branded product sales; Royalty income; Retail Store sales; Master Franchise fees and Store opening fees Design fees generated from Design Environments revenue 25% Income from other products FY15 REVENUE SOURCE 20% Retail sales 2% Design fees 2% Store opening fees Income from Supply Companies: Progressive Processors international sales of kiwifruit and asparagus products Scarborough Fair Organic and Fairtrade tea, coffee and hot chocolate sales to retail and commercial markets in New Zealand and Australia 19% Income from coffee sales 22% Royalty income 10% Master franchise fees

26 SENIOR MANAGEMENT KEITH JACKSON EXECUTIVE CHAIRMAN DOUG WILLIAMSON MANAGING DIRECTOR GREAT BRITAIN TONY MCVERRY MANAGING DIRECTOR IRELAND ELLEN ZHANG MANAGING DIRECTOR CHINA MICHELLE BRICK MANAGING DIRECTOR CANADA JOHN MACDONALD DESIGN & BRAND MANAGER CRAIG BROWN CHIEF FINANCIAL OFFICER CHRIS JOSEPH INTERNATIONAL FRANCHISE SUPPORT SHANE MOATES GM MARKETS & CHANNELS ALI SHACKELL HR MANAGER

27 ACHIEVEMENTS LAST 6 MONTHS EXIT OF DSL FOR THE MAJORITY OF THEIR SHARES, AS DIRECTORS AND EXECUTIVES DSL is the investment vehicle of Stuart and Lewis Deeks. Sale of 136million shares at NZ$5 cents per share. INTRODUCTION OF NEW SIGNIFICANT SHAREHOLDER (JIAJIAYUE (JJY) GROUP FROM CHINA) CURRENTLY 25% JJY are JV partner with CGF in Shandong Province Operate 636 supermarkets in Shandong including more than 180 as under SPAR franchise FURTHER COMMITMENT FROM EXISTING CHINESE SHAREHOLDER YMCI WITH $1.9M INVESTMENT INTO SPV YMCI are owned by province of Yunnan in South West of China Part of the company is listed on the Shanghai Stock Exchange under number ss A NUMBER OF SENIOR MANAGEMENT AND MASTER FRANCHISE PARTNERS HAVE TAKEN UP SHARES IN SPV UNDER SAME TERMS AND CONDITIONS AS BEING OFFERED TO NEW INVESTOR Employ more than 30,000 people Turnover >NZ$4b JJY planning to list on Shanghai Stock Exchange in 2016 Chairman will become a Director of CGF from May 2016 YMCI appointing Director to CGF Board from May 2016

28 LOOKING AHEAD ESQUIRES IS FORECASTING TO CONTINUE TO GROW STORE NUMBERS CONTINUED ROLLOUT OF ESQUIRES STORES AND REBRANDING GROWING OUR SUPPLY CHAIN