Shaver Shop Group Limited · ASX:SSG
Shaver Shop — Shareholder Meeting (October 2017)
42 slides from Shaver Shop's shareholder meeting presentation, Oct 26, 2017
Slide 1: Annual General Meeting 26 October 2017
For personal use only Shaver Shop Group Limited ANNUAL GENERAL MEETING 26 October 2017 1
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
Slide 3: Contents
For personal use only CONTENTS 01 Welcome and introductions 02 Item 1 – Financial report - Chairman’s address - CEO & MD’s address 03 Items – 2 through 5 04 Conclusion 3
Slide 4: Introductions
INTRODUCTIONS SHAVER SHOP BOARD MEMBERS For personal use only BOARD MEMBERS OTHER REPRESENTATIVES > Brodie Arnhold, Chairman > Larry Hamson, Company > Cameron Fox, CEO & Managing Secretary Director > Daniel Rosenberg, PwC > Craig Mathieson > Trent Peterson > Brian Singer > Melanie Wilson 4
Slide 5: Welcome
WELCOME 2017 ANNUAL GENERAL MEETING For personal use only ADMITTANCE CARDS > YELLOW CARDS – voting shareholders & proxies > BLUE CARDS – non-voting shareholders (i.e. shareholder that has already voted) > RED CARDS – for visitors 5
Slide 6: Notice of Meeting
NOTICE OF MEETING ITEMS OF BUSINESS For personal use only 1. To receive and consider the Financial Report, Directors’ Report and Auditor’s Report of the Company and its controlled entities for the financial year ended 30 June 2017. 2. To adopt the Remuneration Report for the year ended 30 June 2017
Slide 7: Chairman's Address
For personal use only 2107 ANNUAL GENERAL MEETING CHAIRMAN’S ADDRESS Mr Brodie Arnhold 7
Slide 8: Company Overview
For personal use only 01. COMPANY OVERVIEW 8
Slide 9: Key Performance Trends
KEY PERFORMANCE TRENDS For personal use only Corporate Store like for like Reported Sales ($m) sales growth* (%) 160.0 12.0% 142.6 140.0 10.0% 9.5% 9.0% 9.2% 120.0 106.7 8.0% 7.2% Sales (A$m) 100.0 6.2% 80.0 6.0% 63.2 60.0 4.0% 40.0 34.1 22.8 2.0% 20.0 0.0 0.0% FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY1
Slide 10: Key Performance Trends (cont'd)
KEY PERFORMANCE TRENDS (CONT’D) For personal use only Pro forma EBITDA ($m) Corporate Store Profile (#) 16.0 14.9 100 95 90 8 14.0 12.6 80 7 80 12.0 70 16 Store numbers 60 56 8 10.0 50 8 8.0 7.2 40 30 18 80 5.6 30 6.0 4 56 4.2 20 10 4.0 30 10 16 16 2.0 0 FY13 FY14 FY15 FY16 FY17 0.0 Opening Buybacks
Slide 11: Cornerstones of Shaver Shop's Business
CORNERSTONES OF SHAVER SHOP’S BUSINESS ESTABLISHED FOR OVER 30 YEARS For personal use only Specialty category leadership Attractive growth category 1 > High market share – particularly at top price points 4 > Long term category growth c.6.4%** > 110 locations across ANZ > Comprehensive and expanding
Slide 12: FY2017 Snapshot
FY2017 SNAPSHOT Shaver Shop had a strong finish to FY2017 beating its Prospectus forecast with For personal use only EBITDA up 18.0% to $14.9 million Sales up Insert Braun Like for Like Sales Insert Foreo Growth image with 33.6% S9 image 6.2% to $142.6m woman Gross Profit Insert woman 7 Franchise Ma
Slide 13: Growth Plans & Capital Structure
For personal use only 03. GROWTH PLANS & CAPITAL STRUCTURE 13
Slide 14: Growth Plans
3 YEAR GROWTH PLANS For personal use only Organic Other > Like for like sales and earnings > Franchise buybacks growth > International > Grow multi-unit reseller channel > Potential synergistic bolt-on > c. 25-30 new stores across ANZ – acquisition FY18 to FY20 – case by case review > Continue onlin
Slide 15: Strong Balance Sheet & Cash Flow
STRONG BALANCE SHEET & CASH FLOW For personal use only > Low gearing – net debt of $9.3m at 30 June 2017 (gross debt - $11.8m) > $11.2m remaining debt capacity ($23m facility in place) > Net debt to EBITDA ratio – 0.6x > Strong operating cash flow > Average new store investment (inc. stock) approx.
Slide 16: Disciplined Capital Management
DISCIPLINED CAPITAL MANAGEMENT For personal use only > Focus on maximising shareholder value in a sustainable manner > Amended dividend policy to payout approx. 50% of “Cash NPAT” – Full year dividends (interim and final) of 4.0 cents/share (100% franked) – c.47% payout ratio of Cash NPAT > Establis
Slide 17: CEO & MD's Address
For personal use only 2107 ANNUAL GENERAL MEETING CEO & MD’S ADDRESS Mr Cameron Fox 17
Slide 18: FY17 Financial Results
For personal use only 01. FY17 FINANCIAL RESULTS 18
Slide 19: Financial Results Summary
FINANCIAL RESULTS SUMMARY For personal use only FY17 Key highlights > Achieved prospectus forecast > Strong top line growth supported by 6.2% like for like sales growth > Network online sales up 9.4% to $11.7m > Successful foray into multi-unit reseller channel in 2H FY17 contributed to rate of like
Slide 20: Met or Exceeded All Key Prospectus Measures
SHAVER SHOP MET OR EXCEEDED ALL KEY PROSPECTUS MEASURES For personal use only Prospectus Forecast Pro Forma Actual Variance Variance $000's FY17 FY17 ($) (%) Sales 127,119 142,568 15,449 12.2% Gross profit 54,379 59,473 5,094 9.4% Gross margin % 42.8% 41.7% (1.1%) (2.5%) Franchise & other income 3,6
Slide 21: Sales Trend
SALES TREND For personal use only Corporate Stores Multi- Multi-unit resale channel Quarterly like for like sales trend Sales contribution 30.0% 24.5% 25.0% 20.0% 15.0% 11.0% 10.0% 6.9% 5.0% 3.2% Aug-16 Jul-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Aug-17 Jul-17 Sep-17
Slide 22: FY18 Growth Initiatives
For personal use only 03. FY18 GROWTH INITIATIVES 22
Slide 23: Promising Christmas Program
PROMISING CHRISTMAS PROGRAM For personal use only Key category developments > Dyson Supersonic expected to offset Dafni comparable sales risk > Men's Electric Shaver Star Wars launch > Beard trimmer innovation > Wet Shave range expansion and subscription offering > Long Term Hair Removal – range exp
Slide 24: E-Commerce Initiatives
E-COMMERCE INITIATIVES For personal use only Key initiatives > Ongoing enhancement to range of products available online > Omni channel view of customer > Subscription offer > Click & collect > Back-office integration to POS and Australia Post > Personalised web campaigns > Increasing social media r
Slide 25: Brand Realignment: A Beauty Destination
BRAND REALIGNMENT A BEAUTY DESTINATION ‘MORE FOR HER’ For personal use only Exciting range expansion with Recent developments global brands > Launched Dyson SupersonicTM in Q1 FY18 > StylPro launched exclusively in Q4 FY17 > Dafni exclusivity retained through Christmas 2017 > Foreo launched in Q2 FY
Slide 26: Additional Corporate Stores
ADDITIONAL CORPORATE STORES For personal use only Greenfield store rollout Franchise buybacks > 95 corporate stores at 30 June 2017 > The Glen, VIC completed late September > 7 new stores to open prior to Christmas > Erina Fair, NSW agreed to complete 31 and one in 2H FY18 October 17 > Pilot of 200
Slide 27: Multi-Unit Resale Channel
MULTI-UNIT RESALE CHANNEL For personal use only Early but encouraging sales of additional lines into this channel > Continuing to increase knowledge about this channel > Cautiously optimistic of demand for broader range of product across multiple categories > Delivering focused marketing campaigns t
Slide 28: Trading Update & Outlook
For personal use only 03. TRADING UPDATE & OUTLOOK 28
Slide 29: Trading Update
TRADING UPDATE Like for like sales up +9.9% over first 16 weeks (to 20 October) of FY18 and For personal use only approx. +3% underlying like for like sales growth (excluding multi-unit reseller channel) > Solid start to FY18 and promising Christmas promotional program – Successful Father’s Day camp
Slide 30: Ordinary Business
For personal use only 2107 ANNUAL GENERAL MEETING ORDINARY BUSINESS 30
Slide 31: 2017 Annual General Meeting Reminder
2017 ANNUAL GENERAL MEETING For personal use only REMINDER > YELLOW CARDS – voting shareholders & proxies – can ask questions > BLUE CARDS - non-voting shareholders – can ask questions (i.e. shareholder that has already voted) > RED CARDS – for visitors (cannot ask questions or vote) 31
Slide 32: Conduct of a Poll
CONDUCT OF A POLL For personal use only >To be conducted at the end of the meeting following consideration and discussion of all items of business 32
Slide 33: Item 1. Financial Report
ITEM 1. FINANCIAL REPORT For personal use only >“To receive and consider the Financial Report, Directors’ Report and Auditor’s Report of the Company and its controlled entities for the financial year ended 30 June 2017.” >Note: There is no vote on this item of business. 33
Slide 34: Item 2. Remuneration Report
ITEM 2. REMUNERATION REPORT For personal use only >To consider and, if thought fit, to pass the following resolution: “That the Remuneration Report (which forms part of the Directors’ Report) in respect of the financial year ended 30 June 2017 be adopted.” >Note: This resolution is advisory only and
Slide 35: Item 2. Remuneration Report Proxies Received
ITEM 2. REMUNERATION REPORT PROXIES RECEIVED For personal use only Proxies Received # votes For: 59,645,270 Against: 7,471,455 Open: 49,834 35
Slide 36: Item 3. Election of Director – Mr Trent Peterson
ITEM 3. ELECTION OF DIRECTOR – MR TRENT PETERSON For personal use only >To consider, and if thought fit, to pass the following resolution: “That Trent Peterson, in accordance with rule 66.2 of the Company’s constitution and, being eligible, offers himself for election as a Director of the Company.”
Slide 37: Item 3. Proxies Received
ITEM 3. ELECTION OF MR T PETERSON PROXIES RECEIVED For personal use only Proxies Received # votes For: 82,189,445 Against: 7,335,155 Open: 633,005 37
Slide 38: Item 4. Election of Director – Mrs Melanie Wilson
ITEM 4. ELECTION OF DIRECTOR – MRS MELANIE WILSON For personal use only >To consider, and if thought fit, to pass the following resolution: “That Melanie Wilson, in accordance with rule 66.2 of the Company’s constitution and, being eligible, offers herself for election as a Director of the Company.”
Slide 39: Item 4. Proxies Received
ITEM 4. ELECTION OF MRS M WILSON PROXIES RECEIVED For personal use only Proxies Received # votes For: 76,635,975 Against: 12,888,625 Open: 633,005 39
Slide 40: Item 5. Approval of Issue of Securities Under LTI Plan
ITEM 5. APPROVAL OF ISSUE OF SECURITIES UNDER LONG TERM INCENTIVE (LTI) PLAN TO MR CAMERON FOX, CEO AND MANAGING For personal use only DIRECTOR >To consider and, if thought fit, to pass the following resolution: “That for the purpose of the ASX Listing Rule 10.14 and all other purposes, approval is
Slide 41: Item 5. Proxies Received
ITEM 5. APPROVAL OF ISSUE OF SECURITIES TO MR C FOX UNDER LTI PLAN For personal use only PROXIES RECEIVED Proxies Received # votes For: 78,665,252 Against: 7,793,374 Open: 631,005 41
Slide 42: Thank You
SHAVER SHOP 2017 ANNUAL GENERAL MEETING For personal use only THANK YOU 42
Shaver Shop Group — Shareholder Meeting (October 2017) on 6ix