Accent Group Ltd · ASX:AX1
Accent — H1 FY2022 Earnings Presentation
20 slides from Accent's earnings presentation, Feb 22, 2022
Slide 1: Results Presentation Half Year Ended 27th of December 2021
RESULTS PRESENTATION HALF YEAR ENDED 27TH OF DECEMBER 2021 Accent Group H1 FY2022 Results Presentation 1 1
Slide 2: Table of contents
Table of contents Item Page Value creation and investor value proposition 3 FY22 results summary 4 Operational update 7 Retail & wholesale 10 Growth plan update 11 Appendix 14 Accent Group H1 FY2022 Results Presentation 2 1
Slide 3: Value creation and investor value proposition
Value creation and investor value proposition Total Shareholder Return (1) comparison Accent and ASX200 (30 June 2011 to 24 December 2021(2)) o A market leading digitally integrated Total Shareholder Return consumer business with 32 websites, 28 since 30 June 2011: owned and distributed brands, 706
Slide 4: H1 FY22 sales and profit
H1 FY22 sales and profit Key Metrics % $’000’s H1 FY22 H1 FY21(1) Change Group Sales (inc. Franchisees) 593,963 541,328 +9.7% EBITDA 99,545 138,114 (27.9%) EBIT 30,301 81,677 (62.9%) PBT 22,123 75,062 (70.5%) NPAT 14,759 52,689 (72.0%) Digital Growth 47.9% 110% Inventory 230,512 172,906 Interim Divi
Slide 5: Operational highlights
Operational highlights Total Sales (inc Franchises) VIP & Loyalty 9 million $594m Contactable customers +9.7% on H1 FY21 Additional 600,000 contactable customers in H1 FY22 New Stores Vertical Owned Brands 104 $30.2m new stores opened sales New stores performing strongly +210.8% sales growth on H1 F
Slide 6: H1 FY22 summary of financial performance
H1 FY22 summary of financial performance Financial Summary– Comparable Financial Information Operating Highlights % Profit & Loss ($000's) H1 FY22 H1 FY21(1) o Total company owned sales of $525.2m, up 12.5% on Change prior year. Owned sales 525,208 466,893 12.5% o Compared to management expectations
Slide 7: Operational Update
Operational Update( Accent Group H1 FY2022 Results Presentation 7
Slide 8: Digital
Digital Digital Sales Growth Digital sales grew to $159.8m, +47.9% on top of the 110% growth in H1 FY21. FY19 FY20 FY21 FY22 Digital sales contributed to 31.2% of total retail sales (1) 9m contactable Website sessions customers +600k on for the Group FY21 increased by 8.8% FY18 FY19 Key Metrics (2)
Slide 9: VIP & Loyalty
VIP & Loyalty • 9m contactable customers Accent Group Loyalty Members • Objective is to grow our customer database to 10m customers • Hype loyalty program launched in November ‘21. 700,000 customers in the program, including 135,000 new customers since launch • Skechers: 1.2m loyalty customers added
Slide 10: Retail & Wholesale
Retail & Wholesale Retail Store Network (1) >770 • Owned retail sales of $443.3m ($408m excluding 738 Glue Store) up 7.7% on prior year sales of $411.4m 638 69 • New stores performing strongly 74 • Opened 104 new stores 669 564 Wholesale • Wholesale sales of $81.9m ($66m excluding FY21 H1 FY22 Targe
Slide 11: Growth Plan Update
Growth Plan Update
Slide 12: Growth plan update
Growth plan update Objectives ✓ Further new and re platformed best in class websites planned to • On track to sustainably grow to 30% of 1 Digital and Virtual open in H2 FY22 retail sales ✓ Contactable database now 9 million customers • Targeting contactable customers of 10 2 VIP and Loyalty ✓ Hype
Slide 13: Dividends and trading update
Dividends and trading update o Accent Group has announced an interim dividend for FY22 of 2.50 cents per share, fully franked, payable on 17 March 2022 to shareholders registered on 10 March 2022 Dividends o Accent Group continues to be defined by strong cash conversion and the consistent strong ret
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-21 Trybe & Other/4 TAF Platypus Skechers Vans Timberland Dr Martens Merrell Hype Glue Stylerunner Total PIVOT Workers Stores at End of 145 148 131 28 8 15 15 79 22 20 4 23 638 FY21 FY21 Stores Opened 8 14 19 9 1 5 0 9 4 7 15 13 104 Stores
Slide 16: Gross margin and FX rate
Gross margin and FX rate Statutory Gross Margin % and FX Rate (AUD/USD Cover) Accent Group H1 FY2022 Results Presentation 16 19
Slide 17: Balance sheet
Balance sheet Balance Sheet Commentary $000's H1 FY22 FY21 (June’21) H1 FY21(1) o Inventory levels in line with expectations with clean aged inventory. Year on year increase driven by investment in 104 new stores in H1 Trade receivables and 51,099 44,540 34,797 FY22 (c$21m), 69 new stores in H2 FY21
Slide 18: Change in accounting policy – Software as a Service
Change in accounting policy – Software as a Service The implementation of the IFRIC agenda decisions on Software as a Service (“Saas”) accounting policy has marginally changed H1 FY21 reported results. Below is a summary of the H1 FY21 results reflecting the adoption of the accounting policy compare
Slide 19: 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 20: 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