Shaver Shop Group Limited · ASX:SSG

Shaver Shop — FY2016 Earnings Presentation

26 slides from Shaver Shop's earnings presentation, Aug 25, 2016

  1. Slide 1: FY 2016 Full Year Results

    For personal use only Shaver Shop Group Limited FY 2016 FULL YEAR RESULTS Management Presentation 25 August 2016

  2. Slide 2: Important Notice and Disclaimer

    IMPORTANT NOTICE AND DISCLAIMER For personal use only This management presentation (“Presentation”) has been prepared by Shaver Shop Group Limited ACN 150 747 649 (“Shaver Shop”) and contains general background information about Shaver Shop, its subsidiaries and their activities which is current at

  3. Slide 3: Key Highlights

    KEY HIGHLIGHTS Achieved FY16 Pro Forma sales and EBITDA targets – well positioned for FY17 For personal use only • Total Sales of $106.7m up 68.7% on FY2015 (Prospectus Forecast $106.2m) • LFL Network Sales growth 10.7% (Prospectus Forecast 10.4%) Store sales • LFL Corporate Store Sales growth 9.2%

  4. Slide 4: Company Background & Competitive Advantage

    For personal use only COMPANY BACKGROUND & COMPETITIVE ADVANTAGE 4

  5. Slide 5: Introduction to Shaver Shop

    INTRODUCTION TO SHAVER SHOP Shaver Shop aspires to be the leader in ‘all things For personal use only related to hair removal’ Company snapshot > Trusted and respected retail brand founded in 1986 > Quality brands, at competitive prices, supported by excellent product knowledge > Total Network Sales

  6. Slide 6: History & Competitive Advantage

    HISTORY & COMPETITIVE ADVANTAGE A wide range of quality brands, at competitive prices, supported by excellent staff For personal use only product knowledge Store network reaches 100 (6 NZ stores) at 30 June 16. 2016 Shaver Shop IPO – 1 July Store network – 90. Online sales ~6.5% of National Sales 20

  7. Slide 7: Business Growth Drivers

    BUSINESS GROWTH DRIVERS For personal use only Ongoing product innovation & exclusivity Store maturity profile 1 > Continually evolving range to cater to changes in 5 > Shaver Shop stores typically take 24 months to reach personal grooming styles, new fashion trends, and maturity product innovations

  8. Slide 8: Stores

    STORES At 30 June 2016, 100 stores across Australia and New Zealand with significant For personal use only further rollout potential Corporate Store Profile Franchise Store Profile 90 60 80 80 50 70 16 56 Store numbers Store numbers 60 8 40 50 8 30 40 18 56 30 46 30 4 56 20 4 20 10 28 30 10 10 16 16

  9. Slide 9: FY2016 Operational Highlights

    For personal use only FY2016 OPERATIONAL HIGHLIGHTS 9

  10. Slide 10: Operational Highlights

    OPERATIONAL HIGHLIGHTS Strong finish to FY16 and progress made in FY17 YTD For personal use only > Celebrated our 30th year as a successful company > Opened our 100th store in Ocean Keys, WA > Increased consumer brand awareness to 80% > Completed 16 greenfield sites in FY16 > Total Corporate Stores

  11. Slide 11: LFL Network Sales 10.7% in FY16

    L4L NETWORK SALES1 10.7% IN FY16 L4L sales were a strong growth driver in FY16 For personal use only Total Network Sales – LFL Growth 12.0% 10.7% 10.0% 10.0% 9.4% > FY16 Total Network LFL sales growth 10.7% 8.0% > Corporate Store LFL sales growth 9.2% 6.0% 5.2% > Franchise Store LFL sales growth 12.

  12. Slide 12: Strong Performance from Key Categories

    STRONG PERFORMANCE FROM KEY CATEGORIES For personal use only > Hair removal sales up 11.8%* > Wet shave, beard trimmers, body grooming all performed strongly > Weakness in female long term hair removal and mens electric shaving due to relatively low levels of innovation for 2015 Christmas season > C

  13. Slide 13: FY 2016 Financial Highlights

    For personal use only FY 2016 FINANCIAL HIGHLIGHTS 13

  14. Slide 14: FY16 Results Above Prospectus Forecast

    FY16 RESULTS ABOVE PROSPECTUS FORECAST Shaver Shop has ended the financial year strongly and achieved FY16 prospectus For personal use only forecast on all key measures Statutory Pro Forma Prospectus Variance to Variance to Accounts Actual (IPO) Forecast IPO Forecast IPO Forecast $000's FY16 FY16 FY

  15. Slide 15: FY16 vs FY15 Performance

    FY16 VS FY15 PERFORMANCE Strong performance vs prior year across all key financial metrics For personal use only Pro Forma Pro Forma Actual Actual $ Var % Var $000's FY15 FY16 Sales 63,242 106,711 43,469 68.7% Gross profit 26,460 45,622 19,163 72.4% Gross margin % 41.8% 42.8% 0.9% Franchise & other

  16. Slide 16: Normalised NPAT (New Capital Structure)

    NORMALISED NPAT (NEW CAPITAL STRUCTURE) FY16 normalised pro-forma NPAT $7.96m after adjusting for new capital structure For personal use only Pro Forma Prospectus Variance to Variance to Actual (IPO) Forecast IPO Forecast IPO Forecast $000's FY16 FY16 FY16 ($) FY16 (%) Pro forma NPAT 7,523 7,496 27

  17. Slide 17: Pro Forma Adjustments

    PRO FORMA ADJUSTMENTS ACTUAL VS PROSPECTUS FORECAST For personal use only IPO Pro > Pro forma adjustments largely Pro Forma Forma Fav (Unfav) consistent with Prospectus Accounts Forecast Variance #039;000 FY16 FY16 FY16 > Publicly company audit fee Statutory NPAT 3,854 3,898 (44) adjustment ($81k) refl

  18. Slide 18: Summary of Pro Forma Revenue and EBITDA

    SUMMARY OF PRO FORMA REVENUE AND EBITDA For personal use only Achieved Prospectus targets for Sales and EBITDA 120.0 Revenue - $106.7m up 68.7% (Prospectus $106.2m) 100.0 A$m 106.7 Growth in sales over FY 2015 led by a range of factors 80.0 Sales (A$m) > Annual Corporate Store L4L growth since FY13

  19. Slide 19: EBITDA Bridge – FY15 to FY16

    EBITDA BRIDGE – FY15 TO FY16 For personal use only 18,000 16,000 572 (3,070) 1,892 550 14,000 4,138 12,603 12,000 10,000 1,344 8,000 7,177 6,000 4,000 2,000 - FY15 Pro Corporate LFL FY15 buy FY16 buy FY15 FY16 Marketing FY16 Pro forma EBITDA backs backs Greenfields Greenfields fund, forma EBITDA Fra

  20. Slide 20: Consolidated Statutory and Pro-Forma Balance Sheet at Jun 2016

    CONSOLIDATED STATUTORY AND PRO-FORMA BALANCE SHEET AT 30 JUN 2016 For personal use only Pro Forma Pro Forma Statutory $000's 31-Dec-15 30-Jun-16 30-Jun-16 Cash 20,955 3,148 4,334 Inventory 19,752 18,115 18,115 Other assets 46,544 48,441 48,441 Total assets 87,251 69,704 70,890 Interest bearing liabi

  21. Slide 21: Consolidated Pro Forma Cash Flow

    CONSOLIDATED PRO FORMA CASH FLOW Improved pro forma operating and net cash flow versus Prospectus forecast For personal use only Prospectus Pro Pro Forma Forma Forecast Actual Variance ($) #039;000 FY16 FY16 Actual FY16 EBITDA 12,494 12,604 110 Non-cash adjustments to EBITDA - 308 308 Other working cap

  22. Slide 22: FY 2017 Outlook

    For personal use only FY 2017 OUTLOOK 22

  23. Slide 23: FY 2017 Outlook

    FY 2017 OUTLOOK Remain confident of achieving FY17 Prospectus forecast For personal use only > L4L Network trading performance for FY17 expected to be in-line with Prospectus expectation of 2.7% as we are cycling off a strong prior corresponding period > Level of Christmas product innovation and pro

  24. Slide 24: Appendices

    For personal use only APPENDICES 24

  25. Slide 25: Key Operating Metrics

    KEY OPERATING METRICS For personal use only Pro forma Pro forma Historical Forecast FY13 FY14 FY15 FY16 FY16 Number of corporate stores 16 30 56 80 80 Number of franchise stores 56 46 28 20 20 Total stores 72 76 84 100 100 Corporate store sales (#039;000) 22,844 34,095 63,242 106,711 106,173 Franchise

  26. Slide 26: For personal use only

    For personal use only

Shaver Shop Group — FY2016 Earnings Presentation on 6ix