Cooks Coffee Company Limited logo

2021 Annual Shareholders Meeting Presentation

AGM28 September 2021CCCConsumer Staples

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Noinformationcontainedhereinhasbeenindependentlyauditedor

reviewedbyanyindependentthirdparty.

Thispresentationmaycontainforwardlookingstatementsandforecasts.

Allstatementscontainedinthispresentationthatarenotclearly

historicalinnatureorthatnecessarilydependonfutureeventsare

forward-looking,andthewords“forecast”,“anticipate”,“believe”,“expect”,

“potential”,“opportunity”,“estimate”,“plan”,andsimilarexpressionsare

generallyintendedtoidentifyforward-lookingstatements.Forward-

lookingstatementsaresubjecttovariousrisksanduncertainties.

Nothinginthispresentationisapromiseorrepresentationastothe

future.Statements,estimates,projectionsandforecastsinthis

presentationastofuturemattersmayprovetobeincorrect,andthe

recipientiscautionednottoplaceunduerelianceonforwardlooking

statements.Recipientsshouldconducttheirowninvestigations,

verificationsandassessmentsofthemeritsoftheopportunity,identify

theinformationthattheyrequireandengagetheirownprofessional

advisers.

Circumstancesmaychangeandthecontentsofthispresentationmay

becomeoutdatedasaresult.Cooksundertakesnoobligationtoupdate

forwardlookingstatementsifcircumstancesorestimatesoropinions

shouldchange(exceptasrequiredbyapplicablesecuritieslaw).

Exceptinsofarasliabilityunderanylawcannotbeexcluded,neither

CooksnoranyofCooks’directors,employees,shareholders,subsidiaries,

agents,advisers,oranyotherpersonwhomakesanyrepresentationor

warrantyshallhavenoresponsibilityorliabilityarisinginrespectofany

informationcontainedinthispresentationforerrorsoromissionsor

failuretocorrectorupdateanyinformationinthepresentation

(includingresponsibilitytoanypersonbyreasonofnegligence).

Q & A
Resolutions

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Presentation to shareholders.

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OverviewFY21Current

Status

Update by Major

Market

Outlook

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1

•Business simplified & focused on out of home coffee market in UK & Europe with low

corporate overhead

•Positive trends from FY20 were offset by the impact of Covid 19 in FY21

•Acquisition of Triple Two completed in June 2020

•UK & Ireland had challenging periods from April –July 2020 & from October 2020 with

Government restrictions

•Restrictions have eased as vaccination rates have increased in 2021

•UK has normal trading from 19

th

July

•Ireland is planned to return to normal trading from 22

nd

October

•Encouraging store sales trends in all markets since opening up

•Added net 13 new stores (including 9 Triple Two stores operating as at acquisition date)

in FY21 with 93 outlets open as at31

st

March 2021 in total

•12 new outlets added in the first half of FY22 & with 105 trading outlets today

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ESQUIRES COFFEE

HOUSES (IRELAND)

TONY MCVERRY

12 OUTLETS

TRIPLE TWO COFFEE

DAVID HODGETTS

20OUTLETS

FRANCHISE DEVELOPMENT

(MASTER FRANCHISEE MARKETS)

ESQUIRES COFFEE

(UK)

AIDEN KEEGAN

47 OUTLETS

BOARD OF DIRECTORS

KEITH JACKSON

MICHAEL HUTCHESON, PAUL ELLIOTT,

PEIHUAN WANG, QIANG KUI

PORTUGAL

1 OUTLET IN PORTO

SAUDI ARABIA

9OUTLETS

KUWAIT

5OUTLETS

BAHRAIN

5OUTLETS

JORDAN

1OUTLET

PAKISTAN

4OUTLETS

INDONESIA

1OUTLET

We would like to pay a special tribute to all our staff & franchisees who have shown great resilience in these challenging times

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•The acquisition of the fast-growing Triple Two Coffee

business in June 2020 has added scale to the core UK market

and placed CGF as the #4 Coffee focused chain in UK as

measured by total store numbers (Allegra Research) (after

Costa, Starbucks & Caffe Nero)

•Allegra Research in the UK showed that the market declined

39% in CY 2020. ECUK sales were down 29%

•Group revenue is strongly linked to store sales which was

impacted by Covid (see Graph) showing comparative data

which also shows strong recovery as relaxation of

Government restrictions allow

•Covid “new normal” has greater emphasis on digital factors

along with delivery and click & collect now gaining consumer

acceptance. Delivery partnerships with Deliveroo & Uber Eats

are in place in UK & Ireland

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$8,756,721

$3,722,733

$9,255,437

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

$10,000,000

FY20

FY21

FY22

UK Store Sales April

-

August 2019

-

2021 NZ$

$5,942,647

$1,543,088

$2,126,682

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

FY20

FY21

FY22

IRELAND Store Sales April

-

August 2019

-

2021 NZ$

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1

• Group revenue from continuing activities was down 59% in FY21

•Growth in FY20 was 8% with a Covid impact affecting the final 3

weeks

•Corporate overheads reduced in FY21 to $1.266m v $2.021m for

FY20

•Cash flow from operating activities was positive $36,000 in FY21

v $193,000

•Corporate overheads reduced significantly in FY21 with expenses

of $1.266m compared to $2.021m for FY20

•Delays in store openings and other non-operational factors have

resulted in revenue of $4.991m being deferred until stores open &

revenue is released (IFRS 15). Delays are mainly related to Covid

factors. Net IFRS adjustments are $4.011m

•Operational earnings trends with the IFRS & other non-cash

adjustments are shown in the table

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$3,801,965

$4,114,179

$1,661,593

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

FY19

FY20

FY21

CGF Revenue trends FY19

-

FY21

CGF Trends

FY20

FY21

Operational earnings

$227,000

$2,800,600

Non Cash Adjustments

-$194,000

-$4,032,600

Reported Earnings

$33,000

-$1,232,000

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•Trends show sales v 2019 under various levels of

restriction to week 4 September

•Same store sales are 8% up on 2019 for YTD

with new outlets representing 28% of sales

•Strong growth in order value which is up 33% to

£6.60 from £4.96 in 2019

•Government support has been strong with VAT

reduced from 20% to 5% to 30/9/21 & then

12.5% to 31/3/22

•47 stores operating as at today

9

45%

78%

120%

135%

0%

20%

40%

60%

80%

100%

120%

140%

160%

Take Out Only

Outdoor Dining

Indoor Dining

"Normal Trading"

ECUK 2021 Sales Comparison v 2019 by stage of restriction

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1

•Trends below show sales v 2019 under various levels

of restriction to week 4 September

•Re-opening to “normal trading” planned from 22

nd

October 2021

•Major impact on sales has been in Malls & Dublin City

•Malls have often been closed due to Covid restrictions &

some are still on restricted trading hours

•Dublin City outlets affected by low tourism numbers & lack

of workers in CBD.

•Retail parks are more local

•12 stores operating as at today with 3 new stores

planned to open before Xmas

10

45.6%

78.2%

98.1%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

Takeout Only

Outdoor Dining

Limited Indoor Dining

Ireland Same Store Sales v 2019

97%

67%

74%

84%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

Retail ParksMallsCBDSSS

Irish Sales by Channel v 2019

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•Business acquired in June 2020

•No comparative sales v 2019 but sales trends similar

toECUK in 2021 as shown in graph

•Store opening program was delayed in FY21 but has

resumed strongly in FY22

•To date 11 stores added in this financial year with at

least 5 more planned in FY22

•20 stores operating as at today

•Strong growth path

•Recently named by independent study of UK Coffee

Shop market from IGD as one of the “rising stars”

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£6,012

£18,293

£39,474

£52,874

£0

£10,000

£20,000

£30,000

£40,000

£50,000

£60,000

Takeaway

Outdoor Dining

Indoor Dining

Normal Trading

Triple Two Average Weekly Sales by level of Restriction

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Saudi Arabia (9 outlets)

•New stores added at the new Jeddah Airport & in Mecca in last 2 months

•First drive thru outlet now trading with 5 more planned in next 12 months

•Al Salam Mall renovated

Kuwait (5 Outlets)

•Numerous Government restrictions have delayed growth plans

Bahrain (5 Outlets)

•Store opening program delayed

Jordan (1 Outlet)

•Store opening program delayed

Indonesia (1 Outlet)

•Store opening program delayed

Pakistan (4 Outlets)

•New Master Franchisee in place since late February 2021

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•Continue recovery from Covid-19 period

•Organic growth in core markets via new franchised outlets & same store growth

•Resume previous pathway of new franchised store acquisition

•Possible further synergistic acquisitions to grow scale & critical mass in core markets

•Consider master franchise arrangements in core EU region

•Build profitability and cash flow to grow share value

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Q & A

Please send your questions privately to

Adminor send to everyone via Zoomchat

if you want the question to be public.

•Please vote by sending the following information to
Admin via Zoom chat.

•Shareholder CSN: (Please provide)

•Resolution 1 (Re-Election of Graeme Keith Jackson):

(Please select: F/A/D *)

•Resolution 2 (Auditors): (Please select: F/A/D *)

•FOR/AGAINST/DISCRETIONARY

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RE-ELECTION OF GRAEME KEITH JACKSON
That Graeme Keith Jackson, who retires in accordance with NZX Listing Rule 2.7.1,

and being eligible for re-election,

be re-elected as a director of the Company.

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PROXIES FOR AGAINST DISCRETIONARY

VOTES 166,806,05920,213,769256,286

PERCENTAGE 89.07%10.79%0.14%

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AUDITOR’S REMUNERATION

“That the Board is authorised to fix the auditor’s remuneration.”

PROXIES FOR AGAINST DISCRETIONARY

VOTES 186,871,274148,554256,286

PERCENTAGE 99.78%0.08%0.14%

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Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.

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