2019 Annual Shareholders Meeting Presentation

2019 ANNUAL
SHAREHOLDERS MEETING
27
TH
S E P T E M B E R2019-Link Market Office,Auckland

IMPORTANT NOTE ANDDISCLAIMER
Noinformationcontainedhereinhasbeenindependentlyaudited
orreviewedbyanyindependentthirdparty.
Thispresentationmaycontainforwardlookingstatementsand
forecasts.Allstatementscontainedinthispresentationthatare
notclearlyhistoricalinnatureorthatnecessarilydependonfuture
eventsareforward-looking,andthewords“forecast”,
“anticipate”,“believe”,“expect”,“potential”,
“opportunity”,“estimate”,“plan”,andsimilarexpressions
aregenerallyintendedtoidentifyforward-lookingstatements.
Forward-lookingstatementsaresubjecttovariousrisksand
uncertainties.
Nothinginthispresentationisapromiseorrepresentationasto
thefuture.Statements,estimates,projectionsandforecastsinthis
presentationastofuturemattersmayprovetobeincorrect,and
therecipientiscautionednottoplaceunduerelianceonforward
lookingstatements.Recipientsshouldconducttheirown
investigations,verificationsandassessmentsofthemeritsofthe
opportunity,identifytheinformationthattheyrequireand
engagetheirownprofessionaladvisers.
Circumstancesmaychangeandthecontentsofthispresentation
maybecomeoutdatedasaresult.Cooksundertakesnoobligation
toupdateforwardlookingstatementsifcircumstancesorestimates
oropinionsshouldchange(exceptasrequiredbyapplicable
securitieslaw).
Exceptinsofarasliabilityunderanylawcannotbeexcluded,neither
CooksnoranyofCooks’directors,employees,shareholders,
subsidiaries,agents,advisers,oranyotherpersonwhomakesany
representationorwarrantyshallhavenoresponsibilityorliability
arisinginrespectofanyinformationcontainedinthispresentation
forerrorsoromissionsorfailuretocorrectorupdateany
informationinthepresentation(includingresponsibilitytoany
personbyreasonofnegligence).

AGENDA
Executive
Chairman’s
Introduction
Business of the
AnnualShareholders
Meeting
•ShareholderDiscussion
•Resolutions
•Re-election ofDirectors
•Auditor’s
Remuneration
•Constitution
amendments
•OtherBusiness

117
1
OUTLET
NUMBERS
Storenumberscontinueincreasefrom
93storesinMarch2018,drivinghigher
royaltyandfranchisesalesincome
GroundedResponsibleCoffee’s
productlineexpandedfrom4skusto
12&storepresenceincreasedfrom40
CountdownSupermarketsto150New
Zealandwide,salesgrowth78%
comparedwithFY18.
Internal Design team restructuredin
Dec2018and will breakeven in
FY20.
$49.6MILLION
Esquirestotalstorenetworksales
2
in
FY19up10.9%fromFY18.
UP
UP
1
Based on Cooks’ store numbers as of 31 March 2019, Including China’s ESQ EspressModels.
2
TotalstorenetworksalesaretheaggregateofsalesofallEsquiresbrandedcoffeestores,whetherfranchisedorowned,acrossthecompany’sglobalbrandnetwork.Cooksderivesincomefromitsfranchisedstoresfromfranchise
relatedfees,primarilyrelatedtothesesaleslevelsaswellasstoresalesforthosestoresdirectlyownedbythecompany.Totalnetworkstoresales,therefore,haveacorrelationtotheportionofrevenueearnedbyCooksGlobalFoods
relatingtorecurringfranchisefees.However,theyarenotandshouldnotbeconfusedwiththerevenueofCooksGlobalFoodswhichisreportedinitsfinancialstatementsasthetwodonotdirectly
correlate.
2019 HIGHLIGHTS
$2
MILLION
UP
CruxProductsexported$2millionof
productsfromNewZealandto
ChinainFY19.
78%
SALES
GROWTH
UP
$400k p.a.
SAV
E

Ourcafesareindependently
ownedandhavetheirown
character,thatisblendedwith
Esquirescorevaluesand
personableapproach.
EachCaféhasbeendesigned,
specificallyforeachlocal
neighbourhood,thismeans,allof
ourCafesaredifferent,yetbuilt
andoperatedonthesame
foundationsandofcourse,the
samegreattastingcoffee.

RESPONSIBLE COFFEE,
RESPONSIBLE PEOPLE
RESPECT FOR WHAT WE EAT
& DRINK
NEIGHBOURHOOD
CARE
HEALTHIER PEOPLE
WILL LEAD US TO A
HEALTHEIR PLANET
-BLENDED WITH THE CHARACTER OF OUR LOCAL PARTNERS -

SALES BY MARKET; UK & IRELAND AT 73.3% OF TOTAL SALES
UK, 41.6%
Europe, 1.3%
I re l and, 31.7%
Chi na & As ia, 7.6%
Ca na da, 0.6%
Mi ddle East, 17.3%
Sales by Market FY19
Le Prestige Mall, Jeddah, KSA

UK REGIONAL DEVELOPMENT STRATEGY DRIVING GROWTH
1.UK divided into 11 regions
2.Regional Developers are incentivized to grow
a)Royalty streams are divided 50/50
3.2 Regions already sold
4.FY19 store sales up 17%

Based on store numbers, Esquires is ranked among the top UK Coffee Focused Chains, NB: Nero owns
Coffee #1 & Harris & Hoole.
UK COFFEE FOCUSED BRANDED CHAIN MARKET LEADERS

ESQUIRES LEICESTER UK

NEW UK ESQUIRES CAFES:
ESQUIRES VICARAGE RD (WATFORD FOOTBALL CLUB)ESQUIRES ADDLESTONE, SURREY

IRELAND GROWING STRONGLY; SALES FY19 +16% VS. FY18.
*Recent re-organisation of the Dublin regional structure will assist focus and profit.

CHINA IS NOW RESTRUCTURED AND SELF FUNDING
1.Cooks 21% shareholding has a carrying value of
NZ$3.08m.
2.Express Units major focus due to economics.
3.Flagship stores in Beijing & Shanghai for brand
validation.
4.Have had extensive dialogue with the FMA over last 12
months who formed a view that this carrying value was
not substantiated.
5.Cooks commissioned a valuation from Censere Limited
who valued the shareholding at NZ$5.6m –6.08m.
6.The China business is in a development phase and
currently remains loss making. The valuation was based
on company forecasts.
7.Cooks recognises uncertainty in valuation and has kept
carrying value at NZ$3.08m.
8.Cooks remain in ongoing dialogue with the FMA
regarding the carrying value.

SECOND STORE OPENING IN PAKISTAN; DOLMEN MALL
New Zealand’s Ambassador, Hamish
MacMastercutting the opening
ribbon at Dolmen.

NEW STORE OPENING IN JORDAN; ABDALI, AMMAN, JORDAN

1.Channels served are Retail & Office in New Zealand & Office in
Australia.
2.Small but one of the fastest growing brands in NZ Supermarkets
at 78% growth
3.100,000 Trees will be planted by the end of FY20.
Manufacturer Perform ance
T. Jacobs Douw e Egberts NZ$90,852.810.5%
T. Nestle New Zealand Ltd$72,852.72.4%
T. Heinz Watties$27,305.1-13.0%
T. Suntory$21,480.05.9%
T. Avalanche Coffee Ltd$12,365.123.4%
T. Private Label$8,529.72.3%
T. Cantarella Bros Pty Ltd$5,852.414.4%
T. AB Food & Beverages Aust Pty Ltd$5,597.93.9%
T. Havana Coffee Works Ltd$4,192.711.2%
T. Karajoz Coffee Com pany$2,728.229.8%
T. Fresh Food Services (NZ) Pty Ltd$2,101.3-8.6%
T. Shott Beverages Ltd$556.65.5%
T. Scarborough Fair Ltd$516.178.4%

SUMMARY
1.Growth strategies focused on core markets of UK & Ireland.
2.Restructuring of China, UK & Corporate provides solid base to move forward.
3.Company listed on NZX Main Board on 24
th
June 2019

THANK YOU.

Q&A

RESOLUTIONONE
PROXIESFORAGAINSTDISCRETIONARY
VOTES
PERCENTAGE
RE-ELECTION OF PAUL VALENTINE MARKELLIOTT
“ThatPaulValentineMarkElliott,whoretiresinaccordancewithNZXListingRule 2.7.1,and
beingeligibleforre-election,bere-electedasadirectoroftheCompany.”
155,994,317NIL
98.17%
0%1.83%
2,912,973

PROXIESFORAGAINSTDISCRETIONARY
VOTES
PERCENTAGE
RE-ELECTION OF PEIHUAN WANG
“ThatPeihuanWang,whoretiresinaccordancewithNZXListingRule2.7.1,and being
eligibleforre-election,bere-electedasadirectoroftheCompany.”
RESOLUTIONTWO
155,994,317
NIL
98.17%
0%1.83%
2,912,973

RE-ELECTION OF QIANGKUI
“ThatQiangKui,whoretiresinaccordancewithNZXListingRule2.7.1,andbeing eligible
forre-election,bere-electedasadirectoroftheCompany.”
PROXIESFORAGAINSTDISCRETIONARY
VOTES
PERCENTAGE
RESOLUTIONTHREE
155,994,317NIL
98.17%
0%1.83%
2,912,973

AUDITOR’SREMUNERATION
“ThattheBoardisauthorisedtofixtheauditor’s
remuneration.”
PROXIESFORAGAINSTDISCRETIONARY
VOTES
PERCENTAGE
RESOLUTIONFOUR
155,994,317
NIL
98.17%
0%1.83%
2,912,973

CONSTITUTIONAMENDMENTS
“That under section 32 of the Companies Act 1993, the Company amend its existing
Constitution in the manner marked up in the Constitution as presented to shareholdersatthe
annualmeetingofshareholderswitheffectfromthedateofthisspecial resolution being
passed.”
PROXIESFORAGAINSTDISCRETIONARY
VOTES
PERCENTAGE
RESOLUTIONFIVE
155,899,7233,000
98.16%
0%1.83%
2,913,973

OTHER BUSINESS

COMPANYNUMBERPOSTALADDRESSTELEPHONE
2089337
INVESTORS
+64 21 702509
BANKERS
ANZBANK,
AUCKLAND
SHAREREGISTRY
LINK MARKET
SERVICESLIMITED
LEVEL 11,
DELOITTECENTRE
80 QUEENSTREET
AUCKLAND1010
TEL: +64 9 3755998
EMAIL: ENQUIRIES@
LINKMARKETSERVICES.
CO.NZ
FAX: +64 9 3755990
POSTALADDRESS:
P.O. BOX 91976
AUCKLAND1142
EMAIL
INFO@
COOKSGLOBALFOODS.
COM
DIRECTORS
KEITHJACKSON
PEIHUANWANG
QIANGKUI
MICHAELHUTCHESON
PAULELLIOTT
SOLICITORS
DUNCANCOTTERILL
AUDITORS
BDO
AUCKLAND
REGISTERED
OFFICE
LEVEL5,
3 CITYROAD
AUCKLAND1010
P.O. BOX 6570
WELLESLEYSTREET
AUCKLAND
+64 9 3040567
YEAR OF
INCORPORATION
2008
FOR FURTHER INFORMATION