MANAGEMENT PRESENTATION JUNE 2016 - HotCopper
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MANAGEMENT PRESENTATION JUNE 2016
DISCLAIMER This presentation contains This presentation is for Distribution of this presentation forward-looking statements and information purposes only. It (including electronically) may projections. These reflect our is not an offer of securities, be restricted by law. You should current expectations based on or a proposal or invitation to observe all such restrictions which what we think are reasonable make any such offer. It is not may apply in your jurisdiction. To assumptions but for any number investment advice or a securities the maximum extent permitted of reasons these assumptions recommendation, and does not by law, we will not be liable, may prove incorrect. We give no take into account any person’s whether in tort (including warranty or representation as to individual circumstances or negligence) or otherwise, to you our future financial performance objectives. Every investor should or any other person in relation to or any future matter. Except as make an independent assessment this presentation including any required by law or NZX listing of Cooks Global Foods on the error in it. rules, we are not obliged to basis of expert financial advice. update this presentation after its release, even if things change materially. MANAGEMENT PRESENTATION
Navan - IRELAND INTRODUCTION MANAGEMENT PRESENTATION
Cooks Global Foods (Cooks)owns the international intellectual property and master
franchising rights to the Esquires Coffee brand (excluding Australia and New Zealand).
WHO ARE WE 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.
MANAGEMENT PRESENTATION
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 Growing the Esquires brand Growing its supply chain
brand in its existing in strategically important new
markets; markets; and
MANAGEMENT PRESENTATION
GLOBAL COFFEE
INDUSTRY
OPPORTUNITY
Cooks is already firmly positioned First Wave Second Wave Third Wave
Entry Point, Existing Culture The Branded Offer, Starbucks Independent, specialty coffee
in the New Zealand led third wave Pioneers Culture
of global coffee culture
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
MANAGEMENT PRESENTATION
Belpark - INDONESIA BRAND POSITIONING MANAGEMENT PRESENTATION
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. MANAGEMENT PRESENTATION
NATURAL & ORGANIC AND 100%
ENVIRONMENTALLY FAIRTRADE
RESPONSIBLE
THE
SUSTAINABLE &
ETHICALLY SOURCED
BRAND ARTISAN &
AUTHENTIC
LOCAL REFLECTS NEW
PERSONALITY ZEALAND’S CULTURE
& COMMUNITY & HERITAGE
FOCUSED
OUR BRAND VALUES ARE APPLIED TO ALL THAT WE DO.
MANAGEMENT PRESENTATION
OUR
MARKET
POSITIONING
BRAND POSITIONING
PRICE
Premium - Coffee Roasters Cafe’s
Premium Mainstream
Mainstream
Main - Low Market
COFFEE QUALITY
MANAGEMENT PRESENTATIONOUR
TARGET
CUSTOMERS
FO L LOW
Premium High awareness Affluent, High awareness
Mainstream of Organic professional, and appreciation
Customers & Fairtrade well-travelled, for artisan
25-55 years old priniciples, and well- quality coffee,
health, educated. genuine, more
sustainability thoughtful and
Greater less corporate
appreciation experiences
of design, arts,
music, and
cultures
MANAGEMENT PRESENTATIONDurham - UK GROWTH OPPORTUNITY MANAGEMENT PRESENTATION
3 40 25 150
CONTINUING 50
TO EXPAND 200
26 200
OUR GLOBAL 9 30
22 80
PRESENCE
TOTAL TOTAL 2 50
87 CURRENT
STORE
NUMBERS
as of 31 March 2016
800
by March 2021
TARGET
STORE
NUMBERS
MANAGEMENT PRESENTATIONKEY GROWTH FACTORS COMPARE TO PRIOR FISCAL YEAR
UP 21
STORE NUMBERS
%
AVERAGE
UP 22 SALES
%
AVERAGE
UP 17
TRANSACTIONS
% AVERAGE
AS OF 31 MARCH 2016 AS OF 27 MARCH 2016 AS OF 27 MARCH 2016
UP 4 %
AVERAGE
AVERAGE TRANSACTION VALUE
AS OF 27 MARCH 2016
MANAGEMENT PRESENTATIONTHE BUSIEST STORE J E D D A H A I R P O R T, SAUDI ARABIA ( O P E N E D I N F E B R U A R Y 2015) MANAGEMENT PRESENTATION
HIGHEST SALES STORE IN GLOBAL SYSTEM M U L L I N G A R, CO. W E S T M E AT H . IRELAND ( O P E N E D I N A P R I L 2015) MANAGEMENT PRESENTATION
Tianjin - China RECENT MAJOR DEVELOPMENTS MANAGEMENT PRESENTATION
MAJOR RECENT
DEVELOPMENTS CHINA UK / IRELAND
Jiajiayue group became major 10 UK stores completed
shareholder in CGF rebranding with uplift in sales
Master Franchise acquired in growth and average spending.
February 2015 Ethical Consumer Magazine
Major joint venture signed with ranks Esquires Coffee stores as
China Bu Bu Gao (Better Life) having one of the best social and
Group in May 2015 environmental impacts of the 14
major UK coffee chains surveyed in
Latest new store - Chongqing – the study.
April 2016
Ireland 4 new stores opened in
26 Stores operating Mullingar,Navan and Galway in
2015 with the Dublin O’Connell
Street Store opened in March
2016.
MANAGEMENT PRESENTATIONINDONESIA MIDDLE EAST CANADA
First two stores opened in Jakarta Master Franchise agreements for Three stores in Alberta, including
in early 2016 Jordan signed one drive through
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
MANAGEMENT PRESENTATIONEXISITING 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
MANAGEMENT PRESENTATIONNEW 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
MANAGEMENT PRESENTATIONNEW 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
MANAGEMENT PRESENTATIONGRAEME KEITH
JACKSON
CONTROLLED
34% OTHERS
140,504,423.5
COOKS INVESTMENT
17%
32,890,456
NEW
HOLDING LIMITED
25%
103,330,704.5
SHAREHOLDING GRAEME KEITH
JACKSON
9%
STRUCTURE 37,173,719
ADG
INVESTMENTS
LIMITED
11%
42,199,758
SHANDONG
JIAJIAYUE
INVESTMENTS YUNNAN
METROPOLITAN
25% CONSTRUCTION
INVESTMENTS
103,330,704.5
13%
53,290,600
MANAGEMENT PRESENTATION8%
KUWAIT
16%
CHINA
4%
BAHRAIN
7%
SAUDI ARABIA
ESQUIRES 2%
REVENUE UAE
2%
BREAKDOWN CANADA
AS OF 21 FEBRUARY 2016
22%
IRELAND
39%
UK
MANAGEMENT PRESENTATIONHOW WE FY15 REVENUE SOURCE
G E N E R AT E
REVENUE 20%
Retail sales
25%
Income from
Revenue streams through Esquires other products
include income from coffee and
other branded product sales; 2%
Design fees
Royalty income; Retail Store sales;
Master Franchise fees and Store
opening fees 2%
Store opening
Design fees generated from fees
Design Environments revenue
Income from Supply Companies:
Progressive Processors international sales
10%
Master franchise
of kiwifruit and asparagus products
19%
Income from
fees
Scarborough Fair Organic and Fairtrade tea,
coffee and hot chocolate sales to retail and coffee sales
commercial markets in New Zealand and
Australia
22%
Royalty income
MANAGEMENT PRESENTATIONSENIOR MANAGEMENT
KEITH JACKSON DOUG WILLIAMSON TONY MCVERRY ELLEN ZHANG MICHELLE BRICK
EXECUTIVE CHAIRMAN MANAGING DIRECTOR MANAGING DIRECTOR MANAGING DIRECTOR MANAGING DIRECTOR
– GREAT BRITAIN – IRELAND – CHINA – CANADA
JOHN MACDONALD CRAIG BROWN CHRIS JOSEPH SHANE MOATES ALI SHACKELL
DESIGN & BRAND MANAGER CHIEF FINANCIAL OFFICER INTERNATIONAL FRANCHISE GM MARKETS & CHANNELS HR MANAGER
SUPPORT
MANAGEMENT PRESENTATIONACHIEVEMENTS
LAST 6 MONTHS
EXIT OF DSL FOR THE INTRODUCTION OF FURTHER COMMITMENT A NUMBER OF SENIOR
MAJORITY OF THEIR NEW SIGNIFICANT FROM EXISTING CHINESE MANAGEMENT AND
SHARES, AS DIRECTORS SHAREHOLDER (JIAJIAYUE SHAREHOLDER YMCI MASTER FRANCHISE
AND EXECUTIVES (JJY) GROUP FROM WITH $1.9M INVESTMENT PARTNERS HAVE TAKEN
CHINA) – CURRENTLY 25% INTO SPV UP SHARES IN SPV
UNDER SAME TERMS
DSL is the investment vehicle of Stuart and
Lewis Deeks.
JJY are JV partner with CGF in Shandong
Province
YMCI are owned by province of Yunnan in
South West of China
AND CONDITIONS AS
BEING OFFERED TO NEW
Sale of 136million shares at NZ$5 cents per
share.
Operate 636 supermarkets in Shandong
including more than 180 as under SPAR
Part of the company is listed on the
Shanghai Stock Exchange under number
INVESTOR
franchise 600239.ss
Employ more than 30,000 people YMCI appointing Director to CGF Board
from May 2016
Turnover >NZ$4b
JJY planning to list on Shanghai Stock
Exchange in 2016
Chairman will become a Director of CGF
from May 2016
MANAGEMENT PRESENTATIONLOOKING
AHEAD ESQUIRES IS FORECASTING TO
CONTINUE TO GROW STORE
NUMBERS
CONTINUED ROLLOUT OF ESQUIRES
STORES AND REBRANDING
GROWING OUR SUPPLY CHAIN
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