Accent Group Ltd · ASX:AX1
Accent — H1 FY2021 Earnings Presentation
21 slides from Accent's earnings presentation, Feb 23, 2021
Slide 1: H1 FY2021 Results Presentation
RESULTS PRESENTATION HALF YEAR ENDED 27TH OF DECEMBER 2021 Accent Group H1 FY2021 Results Presentation 1 1
Slide 2: Table of contents
Table of contents Item Page Value creation and investor value proposition 3 H1 FY21 summary results 4 VIP, Vertical, Virtual 6 Retail & wholesale 10 Growth plan update 11 Appendix 14 Accent Group H1 FY2021 Results Presentation 2 1
Slide 3: Value creation and investor value proposition
Value creation and investor value proposition 10-year Total Shareholder Return1 comparison Accent and ASX200 (30 June 2010 to 24 December 20202) o A market leading digitally integrated Total Shareholder Return consumer business with 21 websites, 16 1,200% since 30 June 2010: owned and distributed br
Slide 4: Record H1 FY21 profit
Record H1 FY21 profit Key Metrics1 % $’000’s H1 FY21 H1 FY20 Change EBITDA (pre AASB-16) 97,461 67,704 +44.0% EBITDA 138,449 107,355 +29.0% Group Sales (inc. Franchisees) 541,328 507,894 +6.6% EBIT 81,834 55,548 +47.3% PBT 75,219 48,400 +55.4% NPAT 52,799 33,563 +57.3% Digital Growth 110% 33% Invent
Slide 5: Operational highlights
Operational highlights Digital Growth VIP & Loyalty 7.6 million +110% on H1 FY20 Contactable customers 22.3% of total sales Additional 800k contactable customers in H1 FY20 Stores Vertical +50 +50% new stores opened sales growth 50 new stores opened, 5 closures $10 million in H1 FY21 The Athlete’s F
Slide 6: Digital, Virtual, VIP, Retail & Wholesale
Digital, Virtual, VIP, Retail & Wholesale (Stylerunner Armadale in the picture) Accent Group H1 FY2021 Results Presentation 6 4
Slide 7: Digital
Digital Digital Sales Growth FY19 FY20 FY21 Digital sales up 110% on H1 FY20 Contactable customer base grew by 800k to 7.6m H1 FY21 digital Delivery of online sales were 22.3% orders up to the of sales 22nd of December in FY18 time for Christmas FY19 Key Metrics1 FY20 Pre- Since Record results Fulfi
Slide 8: Virtual & VIP
Virtual & VIP Virtual: • Virtual sales enabled across all Accent sites and performed strongly • $4.3m in virtual sales YTD1 in FY21, run rate of $100k per week from a standing start in April 2020 • Successful launch and rollout of the TAF Virtual Fit program, with sales above expectations Accent Gro
Slide 9: Vertical
Vertical • Vertical program continues to gain Vertical and Owned Brands Sales momentum • $9.7m of sales in H1 FY21, up 47.5% on prior year ($6.6m) 65.0% Margin • On track to achieve over $20m in 63.2% Margin sales in FY21 • Targeting 10%+ mix of sales over time Accent Group H1 FY2021 Results Present
Slide 10: Retail & Wholesale
Retail & Wholesale Retail: Store Network1 • Owned retail sales of $411.4m, up 7.7% on prior 609 year sales of $382m 569 524 76 77 • LFL sales were up 2.7% for H1 FY21 • Strong retail sales with standout performances 493 in Hype DC, Skechers, Platypus and Subtype 447 • TAF experienced outstanding gro
Slide 11: Growth Plan Update
Growth Plan Update
Slide 12: Growth plan update
Growth plan update Objectives ✓ One hour click and collect and same day/after hours delivery options • On track to grow to 30% of retail sales Digital and Virtual continue to grow in usage 1 over time ✓ Continued investment in virtual sales capability • Target contactable customers of 10 2 VIP and L
Slide 13: Dividends and trading update
Dividends and trading update o Accent Group has announced an interim dividend for FY21 of 8.00 cents per share, fully franked, payable on 18 March 2021 to shareholders registered on 11 March 2021 Dividends o The interim dividend is up 52.4% on prior year (H1 FY20, 5.25 cents) o Accent Group continue
Slide 14: Appendix
Appendix Accent Group Limited FY2019 Results Presentation 14
Slide 15: Store network and distribution agreements
Store network and distribution agreements Store Network1 Dec-20 Other/ Store Network1 TAF Platypus Skechers Vans Timberland Dr Martens Merrell Hype Subtype Trybe PIVOT Total S’Runner Stores at End of 145 125 112 24 7 6 16 71 3 8 1 6 524 FY20 H1 FY21 Stores Opened 1 13 13 2 1 5 1 5 1 2 5 1 50 Stores
Slide 16: Gross margin and FX rate
Gross margin and FX rate Statutory Gross Margin % and FX Rate (AUD/USD Cover) Statutory Gross Margin % and FX Rate (Forward USD Cover) 60% 0.8 0.79 56% 0.76 FX Rate (Forward USD Cover) 0.75 0.74 Gross Margin % 0.73 52% 0.72 58.1% 57.3% 56.7% 0.70 54.5% 0.7 52.7% 48% 51.2% 0.67 44% 0.65 FY16 FY17 H1
Slide 17: H1 FY21 summary of financial performance
H1 FY21 summary of financial performance Financial Summary1 – Comparable Financial Information Operating Highlights % o Total company owned sales of $466.9m, up Profit & Loss ($000's) H1 FY21 H1 FY20 5.1% on prior year Change Sales Owned sales 466,893 444,170 5.1% o Sales impact of Victoria, Aucklan
Slide 18: Balance sheet
Balance sheet Balance Sheet Commentary $000's H1 FY21 H1 FY20 o Inventory increase driven by investment in new stores and vertical products Trade receivables and prepayments 34,797 35,328 o Property, plant and equipment increased due to Inventories 172,906 164,151 significant investment in new store
Slide 19: Impact of new lease accounting standard AASB 16 Leases
Impact of new lease accounting standard AASB 16 Leases The implementation of AASB 16 Leases has significantly changed reported results however the standard does not have an economic impact on the Group, its cashflows, debt covenants or shareholder value. Below is a summary of the H1 FY21 reported re
Slide 20: Accent Group overview
Accent Group overview Accent Group is the largest retailer and wholesaler of premium lifestyle footwear in the Australia and New Zealand region. Owned Multibrand Retail Banners Retail & Wholesale Distribution Retail and Accent has the exclusive rights to distribute these brands in Australia Wholesal
Slide 21: Notice and Disclaimer
Notice and Disclaimer o This presentation contains summary information about Accent Group Limited which is current as at the date of this presentation. o This presentation contains certain forward-looking statements, including indications of, and guidance on, future earnings and financial position a