Universal Store Holdings Ltd. · ASX:UNI
Universal Store — FY2021 Earnings Presentation
28 slides from Universal Store's earnings presentation, Aug 25, 2021
Slide 1: FY21 Results Presentation
UNIVERSAL STORE HOLDINGS LIMITED ACN 169 039 721 FY21 RESULTS PRESENTATION AUGUST 2021
Slide 2: Agenda
FY21 FULL YEAR RESULTS PRESENTATION AGENDA PRESENTERS CONTENTS Alice Barbery Renee Jones 1. FY21 Highlights CEO CFO 2. Financial Results ◼ 12 years at Universal Store ◼ Commenced at Universal Store 3. FY22 Priorities in 2019 ◼ 30+ years’ industry experience ◼ 20+ years’ experience across 4. FY22 Out
Slide 3: FY21 Highlights
FY21 FULL YEAR RESULTS PRESENTATION FY21 HIGHLIGHTS 1 3
Slide 4: FY21 Highlights
FY21 FULL YEAR RESULTS PRESENTATION FY21 HIGHLIGHTS DESPITE COVID-19 DISRUPTIONS AND MULTIPLE LOCKDOWNS UNIVERSAL STORE CONTINUED TO DELIVER IMPRESSIVE SALES AND PROFIT GROWTH 3 $210.8M Underlying Underlying 1 2 28.5% EPS $18.6M Sales $44.0M EBIT LFL Sales Net Cash +36% YoY 41.5 cents +86% YoY +90%
Slide 5: Universal Store Delivers Record Results Again
FY21 FULL YEAR RESULTS PRESENTATION UNIVERSAL STORE DELIVERS RECORD RESULTS AGAIN Exceptional results achieved despite the ongoing COVID-19 2 challenges including rolling Physical Stores (#) LFL Sales Growth (%) 28.5 67 lockdowns, restrictions and limited 60 65 opportunities for our customers to 52
Slide 6: A Customer View
FY21 FULL YEAR RESULTS PRESENTATION A CUSTOMER VIEW EVENTS THAT DRIVE LIFESTYLE CHANGE ARE COMMONLY TRIGGERS FOR FASHION PURCHASES COVID19 DEMONSTRATED THIS AGAIN Traditional occasions for shopping were cancelled or changed. Significant personal milestones (e.g. 21st birthday events) often missed, d
Slide 7: Financial Results
FY21 FULL YEAR RESULTS PRESENTATION FINANCIAL RESULTS 2 7
Slide 8: Profit & Loss
FY21 FULL YEAR RESULTS PRESENTATION PROFIT & LOSS STRONG SALES PERFORMANCE Underlying Results FY21 FY20 % Change • Sales $210.8m, up +$55.9m or 36.1% on FY20 Sales 210.8 154.9 36.1% 2 • Overall Group LFL +28.5% Gross Profit 123.9 87.6 41.4% • Stores sales up +30.9%, with LFL +21.8% • Online sales $2
Slide 9: Sales Performance
FY21 FULL YEAR RESULTS PRESENTATION SALES PERFORMANCE Total Sales growth of 36.1%, CAGR strong online and store performance despite impacts of FY18–FY21 SALES (FY18-FY21) 23% COVID-19 pandemic 220.0 210.0 210.8 200.0 72% Group LFL sales growth of 190.0 25.8 28.5%, with first half growth of 180.0 170
Slide 10: Unlocking Our Online Potential
FY21 FULL YEAR RESULTS PRESENTATION UNLOCKING OUR ONLINE POTENTIAL Universal Store’s online channel had a transformative year. It continues to enjoy attractive contribution margins and unit order economics, which have strengthened further since the launch of ship from store which commenced rollout i
Slide 11: Gross Margin
FY21 FULL YEAR RESULTS PRESENTATION GROSS MARGIN SIGNIFICANT STEP CHANGE PRIVATE BRAND % OF TOTAL SALES IN GROSS MARGIN UP 210 BPS 40.2% 29.0% 30.3% Strong private brand demand resulted in contribution 24.6% growing 30.3% to 40.2% of total in FY21. Customer demand and speed to market supported FY18
Slide 12: Costs of Doing Business
FY21 FULL YEAR RESULTS PRESENTATION COSTS OF DOING BUSINESS UNDERLYING CODB$ INCREASED TO SUPPORT SALES GROWTH AND INCLUDES PARTIAL NORMALISATION OF FY20 LEVELS WHICH WERE SUPPRESSED AS A RESULT OF COVID-19 Total CODB % was 35.6%, a 270 BPS improvement on prior year 41.8% sales 40.2% sales 38.9% sal
Slide 13: Balance Sheet
FY21 FULL YEAR RESULTS PRESENTATION BALANCE SHEET (A$ million) 1 STATUTORY BALANCE SHEET FY21 Underlying FY20 FY20 Total Current assets 53.5 27.6 58.6 Net Cash $18.6m an Cash 33.4 10.8 41.8 improvement of $22.7m on Trade Receivables 2.4 3.0 3.0 underlying FY20 due to strong Inventories 17.7 13.7 13.
Slide 14: Underlying Cashflow
FY21 FULL YEAR RESULTS PRESENTATION UNDERLYING CASHFLOW (A$ million) The normalized cashflow presented removes the ‘noise’ arising from the IPO FY21 FY20 Change and pre-IPO capital structure Underlying EBITDA 48.7 27.3 20.5 Strong cashflow delivered again in FY21 with high levels of EBITDA cash Chan
Slide 15: FY22 Group Priorities
FY21 FULL YEAR RESULTS PRESENTATION FY22 GROUP PRIORITIES 3 15
Slide 16: FY22 Group Priorities
FY21 FULL YEAR RESULTS PRESENTATION FY22 GROUP PRIORITIES WE WILL CONTINUE TO EXECUTE ON OUR STRATEGIC PRIORITIES AND MANAGE FOR THE UNIQUE AND VOLATILE TRADING ENVIRONMENT NEW STORE ROLLOUT OPTIMISE PRODUCT MIX 1 • 7–10 stores planned for FY22 4 • Continue brand and range curation, injecting fresh
Slide 17: Universal Store's Omni-Channel Model
FY21 FULL YEAR RESULTS PRESENTATION UNIVERSAL STORE’S OMNI-CHANNEL MODEL Universal Stores’ growth is powered by a channel agnostic business model leveraging a single retail brand, infrastructure, and team to support its online and store channels. This model drives cost effective customer acquisition
Slide 18: FY22 Outlook
FY21 FULL YEAR RESULTS PRESENTATION FY22 OUTLOOK 4 18
Slide 19: FY22 Outlook
FY21 FULL YEAR RESULTS PRESENTATION FY22 OUTLOOK OUR SALES RESULTS ONLINE AND IN “OPEN MARKETS” GIVE US CONFIDENCE THAT OUR CUSTOMERS HAS BOTH THE CAPACITY AND APPETITE TO SHOP WHEN CIRCUMSTANCES PERMIT In the first 8 weeks of FY22 (‘YTD FY22’) total sales were down 20.7% versus YTD FY21, a shortfal
Slide 20: Appendix
FY21 FULL YEAR RESULTS PRESENTATION APPENDIX 5 20
Slide 21: Appendix 1: Universal Store - Overview
FY21 full year results presentation APPENDIX 1: UNIVERSAL STORE - OVERVIEW A leading Australian youth-focused apparel retailer with customer service at its core Who is Universal Store? Who is our quintessential customer? Omni-channel retailer Millennials and Gen Z Fashion focused (16-35 year old) (a
Slide 22: Appendix 2: FY21 COVID-19 Impacts Recap
FY21 FULL YEAR RESULTS PRESENTATION APPENDIX 2: FY21 COVID-19 IMPACTS RECAP UNIVERSAL STORE DELIVERED STRONG GROWTH IN A CHALLENGING OPERATING ENVIRONMENT. • 19 lockdowns across all states resulting in store closures from 2 days to 84 days in duration since March 2020 to date. • The 84 day lockdown
Slide 23: Appendix 3: Underlying Profit & Loss Statement
FY21 full year results presentation APPENDIX 3: UNDERLYING PROFIT & LOSS STATEMENT $m Notes FY18 FY19 FY20 FY21 Physical store revenue 107.2 137.9 141.3 185.0 % growth 28.7% 2.5% 30.9% Online revenue 5.1 8.5 13.6 25.8 % growth 66.7% 60.0% 90.3% Revenue 112.3 146.5 154.9 210.8 % growth 28.1% 30.5% 5.
Slide 24: Appendix 4: P&L Underlying to Statutory Reconciliation
FY21 FULL YEAR RESULTS PRESENTATION APPENDIX 4: P&L UNDERLYING TO STATUTORY RECONCILIATION $m Note FY21 FY20 1. Transaction costs relate to legal, advisors Statutory EBITDA 61.9 46.6 and accounting costs incurred with respect to the preparation of the IPO. Transaction costs 1 6.7 0.7 2. Incremental
Slide 25: Appendix 5: Cash Flow Underlying to Statutory Reconciliation
FY21 FULL YEAR RESULTS PRESENTATION APPENDIX 5: CASH FLOW UNDERLYING TO STATUTORY RECONCILIATION $m Note FY21 FY20 1. Incremental public company cost EBITDA 61.9 46.6 primarily relate to additional Directors’ Non-cash items in EBITDA: fee, Directors’ and officers’ insurance costs and compliance cost
Slide 26: Appendix 6: Store Footprint
FY21 FULL YEAR RESULTS PRESENTATION APPENDIX 6: STORE FOOTPRINT TOTAL STORE 67 NT 1 QLD 20 WA 11 2 SA NSW 18 ACT 2 VIC 13 26
Slide 27: Disclaimer
FY21 FULL YEAR RESULTS PRESENTATION DISCLAIMER The material contained in this This presentation may contain forward- To the extent permitted by law, presentation has been prepared by looking statements with respect to the no responsibility for any loss arising Universal Store Holdings Limited ABN 94
Slide 28: Universal Spirit
FY21 FULL YEAR RESULTS PRESENTATION UNIVERSAL SPIRIT The unique ability to create memorable and positive experiences for all. Creating an experience that is fun, open and based on kindness. The environment that enables a person to be their best. 28
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