Universal Store Holdings Ltd. · ASX:UNI
Universal Store — H1 FY23 Earnings Presentation
29 slides from Universal Store's earnings presentation, Feb 23, 2023
Slide 1: H1 FY23 Results Presentation
H1 FY 23 Results Presentation Brisbane, 23rd February 2023 Universal Store Holdings Limited (ASX:UNI) encloses for immediate release its H1 FY23 Results Presentation. Authorised for release by the Board of Directors of Universal Store Holdings Limited. For more information, please contact: Alice Bar
Slide 2: H1 FY23 Results Presentation
H1 FY23 RESULTS PRESENTATION 23rd FEBRUARY 2023
Slide 3: Agenda
H1 FY23 RESULTS PRESENTATION AGENDA PRESENTERS CONTENTS Alice Barbery Renee Jones H1 FY23 Overview CEO CFO Financial Results 13 years at Universal Store 4 years at Universal Store FY23 Priorities 30+ years’ industry experience 20+ years’ experience across retail and service industries Tradin
Slide 4: H1 FY23 Overview
Universal Store my, H1FY23 —— wa ie i ' —— ~ fl eh of hid
Slide 5: Financial Highlights
H1 FY23 RESULTS PRESENTATION H1 FY23 FINANCIAL HIGHLIGHTS STRONG GROWTH WITH GROUP SALES +34.5% AND UNDERLYING NPAT UP +44.4% VS PCP $146M 25.4 cents $28.5M $14.3M Underlying Underlying EBIT² Net Sales EPS¹ +43.2% vs. pcp Cash³ +34.5% vs. pcp (+36.2% excl. CTC) (+28.6% excl. CTC) 5.5% LFL⁴ $19.8M $1
Slide 6: Group Highlights
H1 FY23 RESULTS PRESENTATION H1 FY23 GROUP HIGHLIGHTS UNI GROUP'S FLEXIBLE BUSINESS MODEL CONTINUES TO SUCCESSFULLY ADAPT TO CHANGES IN CONSUMER BEHAVIOUR Strength in Q1 FY23 Perfect Stranger trial continues performance a result of to perform, with expansion plans physical stores reopening as now ‘i
Slide 7: UNI Group Continues to Deliver Impressive Results
H1 FY23 RESULTS PRESENTATION UNI GROUP CONTINUES TO DELIVER IMPRESSIVE RESULTS Total sales $145.7 million (+34.5% PHYSICAL STORES (#) LFL SALES GROWTH (%)¹ versus pcp), cycling store closure 10 28.5 4Yr average LFL +9.7% periods during H1 FY22 3 7 Return to LFL growth in H1 FY23¹, notwithstanding di
Slide 8: Financial Results
RT ge a et cme a .- Sf Universal Store es ay <r N= 8 AS ~ * FINANCIAL RESULTS 2
Slide 9: UNI Group Profit & Loss (Post AASB16)
H1 FY23 RESULTS PRESENTATION UNI GROUP PROFIT & LOSS (POST AASB16) Underlying Results ($m) Dec-22 Dec-21 % Change SALES • Sales $145.7 million (+34.5% versus pcp) Sales 145.7 108.3 34.5% • Group LFL +2.4%¹ Gross Profit 85.8 61.9 (38.6%) • Store sales +39.8% with LFL sales +5.5%¹ % Sales 58.9% 57.2%
Slide 10: UNI Group Sales Performance by Channel
H1 FY23 RESULTS PRESENTATION UNI GROUP SALES PERFORMANCE BY CHANNEL H1 FY20–FY23 SALES (A$M) Total H1 FY23 Sales +34.5% versus pcp¹ 1.7 3.7 3.8 Strong B&M performance across the Group (+39.8% 19.8 versus pcp). All stores trading, cycling store closures during pcp (July to 14.0 1.1 October 2021) 20.9
Slide 11: UNI Group Gross Margin
H1 FY23 RESULTS PRESENTATION UNI GROUP GROSS MARGIN SIGNIFICANT IMPROVEMENTS IN GROSS MARGIN (+170BPS) Product GM remains strong with private brand GROSS MARGIN (A$M & %) penetration steady during the half at 44% of sales¹. FY22 impacted by one-off mark downs associated ($m) (%) with store closures
Slide 12: UNI Group Costs of Doing Business (Post AASB16)
H1 FY23 RESULTS PRESENTATION UNI GROUP COSTS OF DOING BUSINESS (POST AASB16) Employee costs impacted by significant closure periods in the pcp resulting in increased spend of $6.2 million in store wages and 44.6 $1.5 million in DC wages in the current period Support office employee costs includes bo
Slide 13: UNI Group Balance Sheet
H1 FY23 RESULTS PRESENTATION UNI GROUP BALANCE SHEET Net Cash of $14.3 million, reflecting the Statutory Balance Sheet (A$m) Dec-22 Dec-21 FY22 $18.6m outlay associated with the CTC acquisition, paid on 31 October 2022, and Total Current assets 62.6 67.7 59.8 strong underlying cashflow Cash 29.2 48.
Slide 14: UNI Group Cashflow
H1 FY23 RESULTS PRESENTATION UNI GROUP CASHFLOW Operating Cashflow (A$m) Dec-22 Dec-21 Change Strong EBITDA delivered again 39.2 31.7 7.6 up $7.6 million on pcp EBITDA Change in inventories (8.2) 0.5 (8.7) Change in trade payables 8.3 9.9 (1.8) Increased inventory to support Change in other working
Slide 15: FY23 Priorities
Universal Store FY23 PRIORITIES
Slide 16: Universal Store Priority Update
H1 FY23 RESULTS PRESENTATION H1 FY23 UNIVERSAL STORE PRIORITY UPDATE UNIVERSAL STORE CONTINUES TO EXECUTE ON STRATEGIC PRIORITIES AND INTEGRATE THE RECENTLY ACQUIRED THRILLS BUSINESS INTO STRATEGIC ROADMAP NEW STORE ROLLOUT OPTIMISE PRODUCT MIX CUSTOMER • Group: Six new stores opened in H1 FY23, • F
Slide 17: Digital Priorities
H1 FY23 RESULTS PRESENTATION DIGITAL PRIORITIES +6.0% 3.1% $110 Growth in Net Unique Conversion of NUV, down from Average basket size of online in H1 FY23 Visitors (NUV) vs FY22 3.7% in FY22 (versus $91 in store) FY23 PLAN Enhance and grow our Customer data Perfect Stranger Web store platform to f
Slide 18: Perfect Stranger Update
H1 FY23 RESULTS PRESENTATION PERFECT STRANGER UPDATE HISTORICAL CONTEXT INSIGHTS AND FOCUS • PS was created in 2014 as a versatile, trend-setting label to fill • More feminine store environment (vs Universal Store) gaps in our range that were not catered for by our 3rd party • Warm and service orien
Slide 19: CTC Business and Performance Update
H1 FY23 RESULTS PRESENTATION CTC BUSINESS AND PERFORMANCE UPDATE IMPRESSIVE CTC SALES GROWTH SUSTAINED POST-ACQUISITION AS WE CONTINUE TO INVEST TO SUPPORT LONG TERM GROWTH • Pleasing trading performance in H1 FY23, including continued CTC SALES support from consumers and wholesale accounts (UNAUDIT
Slide 20: Trading Update & Outlook
Universal Store TRADING UPDATE & OUTLOOK
Slide 21: H2 FY23 Trading Update & Outlook
H1 FY23 RESULTS PRESENTATION H2 FY23 TRADING UPDATE & OUTLOOK MOMENTUM CONTINUES ACROSS FIRST 7 WEEKS OF H2 Encouraging performance during the Gross margin remains strong as first seven weeks of H2 FY23, promotional discipline continues supported by the inventory position at December 2022: 2 CODB re
Slide 22: Appendix
Universal Store APPENDIX
Slide 23: Appendix 1: P&L Underlying to Statutory Reconciliation
H1 FY23 RESULTS PRESENTATION APPENDIX 1: P&L UNDERLYING TO STATUTORY RECONCILIATION $million Note Dec-22 Dec-21 1. Transaction costs relate to legal, advisors and accounting costs incurred with respect to the acquisition of CTC business. Statutory EBITDA 39.2 31.7 2. Removal of the tax deduction on
Slide 24: Appendix 2: H1 FY23 Consolidation Overview ($M)
H1 FY23 RESULTS PRESENTATION APPENDIX 2: H1 FY23 CONSOLIDATION OVERVIEW ($M) Note: The elimination primarily results CTC US¹ UNI to sales (and margin) by CTC to Universal Store where the inventory is Underlying Results ($m) (2mths) (6mths) Elimination4 Group still "on hand" at the end of the reporti
Slide 25: Appendix 3: US Sustainability Priorities
H1 FY23 RESULTS PRESENTATION APPENDIX 3: US SUSTAINABILITY PRIORITIES DEVELOPMENT & IMPLEMENTATION OF KEY SUSTAINBILITY AND ENVIRONMENTAL TARGETS* TREAD LIGHTLY EXPECT TRANSPARENCY CLIMATE ACTION Reduce our impact. Put an end to poor working Reverse climate change Preserve our resources. conditions
Slide 26: Appendix 4: Group Overview
H1 FY23 RESULTS PRESENTATION APPENDIX 4: GROUP OVERVIEW Australia’s premier A grower of Customer focused, Focused on owner and operator businesses, with detail oriented, results, risk of youth and young excellence in culture, nimble, multi- management, adult fashion retail execution and channel oper
Slide 27: Appendix 5: Store Footprint
H1 FY23 RESULTS PRESENTATION APPENDIX 5: STORE FOOTPRINT 1 PROPERTY NT 19 QLD 4 6 WA SA 4 21 13 NSW 4 1 ACT 2 VIC 2 15 TOTAL GROUP STORES* 93 #76 Universal Store stores TAS #10 THRILLS stores #7 Perfect Stranger stores 1 * Plus web store for each brand.
Slide 28: Disclaimer
H1 FY23 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 operat
Slide 29: Universal Spirit
H1 FY23 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
Universal Store Holdings — H1 FY23 Earnings Presentation on 6ix