Accent Group Ltd · ASX:AX1
Accent — Shareholder Meeting (November 2017)
26 slides from Accent's shareholder meeting presentation, Nov 23, 2017
Slide 1: Annual General Meeting
Annual General Meeting 23 November 2017
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation contains summary information about RCG Corporation Limited (“RCG”) which is current as at the date of this presentation. This presentation contains certain forward-looking statements, including indications of, and guidance on, future earnings and fin
Slide 3: AGM Agenda
AGM Agenda Item • Welcome and introductions Ivan Hammerschlag • The 2017 financial year in review Hilton Brett • Omnichannel update Mark Teperson • Vision, value proposition and name change Daniel Agostinelli • Formal matters Ivan Hammerschlag • Concluding remarks David Gordon RCG Corporation Limite
Slide 4: 2017 Financial Year
2017 Financial Year Hilton Brett
Slide 5: About RCG
About RCG RCG Corporation Limited (RCG) is an investment holding company which owns and operates a number of footwear businesses in the performance and active lifestyle sectors. The acquisitions of the Accent Group in May 2015 and Hype DC in August 2016(a) has resulted in the creation of a regional
Slide 6: Historical returns and performance
Historical returns and performance As the charts on this Earnings and dividends per share page show, RCG 9.5 continues to be defined Cents per share by its track record of 7.5 outstanding performance 5.5 and the exceptional 3.5 returns it delivers on 1.5 shareholders funds. FY10 FY11 FY12 FY13 FY14
Slide 7: FY17 Financial Year Highlights
FY17 Financial Year Highlights Underlying(a) EBITDA Underlying (a) NPAT Underlying (a) EPS 30% 21% 7% $78.3m $39.9m 7.48c FY17 Dividends Compound Annual Cashflow From Ops 9% Total Shareholder Return Over 11 Years 3% 6.0 cents 22% $45.4m Completion of the Total number of stores Online Sales growth ac
Slide 8: FY17 summary financial performance
FY17 summary financial performance Underlying Profit Underlying profit adjustments § Although RCG acquired Hype with effect from 1 July Underlying(a) Profit ($000's) FY2017 FY2016 % Chg 2016, under the accounting standards Hype’s profits between the effective date and the Completion date Underlying
Slide 9: Earnings and dividends per share
Earnings and dividends per share $000's FY2017 FY2016 % Chg Underlying Diluted Earnings Per Share Underlying Net Profit After Tax (a) 39,923 32,998 21.0% Less non-controlling interests (195) (259) 24.7% NPAT used in the calculation of underlying EPS 39,728 32,739 21.3% Weighted average number of sha
Slide 10: Store network and distribution agreements
Store network and distribution agreements Timber Store Network (a) TAF Platypus Skechers Vans Podium Merrell Hype Other Total land FY2017 Stores at beginning of year 147 74 47 15 4 9 21 58 5 380 Stores opened 1 17 20 2 3 1 9 3 56 Stores closed (2) (1) (2) (1) (6) Stores at end of FY17 146 91 67 17 7
Slide 11: Platypus, Vans, Skechers, Hype
PLATYPUS» VANS SKECHERS HYPE
Slide 12: Accent Group
Accent Group Key Financial Highlights Commentary § Strengthen relationships with key partners and consolidate position as Total sales Total Retail Sales 79% market leader with differentiated, desirable and defensible market positioning for Platypus, Hype DC, Skechers and other banners Strategy 59% L
Slide 13: The Athlete's Foot
Thegm Athlete's Foot
Slide 14: The Athlete's Foot
The Athlete’s Foot Key Financial Highlights Commentary § Following strategic review, repositioning of brand towards TAF’s Total sales Franchisee sales 0.8% performance heritage Strategy § Decentralisation of eCommerce to deliver a seamless customer experience across all channels 1.6% Corp store sale
Slide 15: Slide 15
Slide 16: RCG Brands
RCG Brands Key Financial Highlights Commentary Strategy § Continue to focus on the distribution and growth of Merrell, CAT, Saucony and Sperry through key channel partners and RCG’s retail banners Total sales Total Retail Sales 1.7% 1.2% LFL Retail Sales 2.6% § Merrell Outdoor and Performance catego
Slide 17: Omni-Channel
Qmni-Channeé empAthlote's Foot HYPE PLATYPUS Timberland &
Slide 18: Omni-channel
Omni-channel RCG offers customers a market leading omnichannel experience with over 400 physical points of presence throughout Australia and New Zealand and an integrated eCommerce capability across its TAF, Platypus, Hype, Skechers, Vans, Merrell, Saucony and CAT brands. § Total online sales grew b
Slide 19: Corporate matters, Dividends, Trading update, Outlook
Corporate matters Dividends Trading update Outlook RCG Corporation Limited Annual General Meeting 23 November 2017 19
Slide 20: Corporate Matters
Corporate Matters § Subject to shareholder approval at this AGM, the listed entity will be changing its name from RCG Corporation Limited to Accent Group Limited § This change reflects the completion of the integration of the RCG, Accent and Hype businesses in to a single business with a common visi
Slide 21: Corporate Matters
Corporate Matters § On 28 August 2017, Michael Hirschowitz, the Group CFO and Finance Director announced that effective 28 February 2018 and after nearly 21 years with the group, he intends to step down as both an executive and a director after almost 30 years as a full-time executive in order spend
Slide 22: Corporate Matters
Corporate Matters § Having regard to the above and the changing nature of the business, as well as its substantially increased size and complexity, the Board has reflected on its own composition and begun a process of board renewal to support the business’s strategic growth objectives into the futur
Slide 23: Trading update and outlook
Trading update and outlook § RCG paid a fully franked final dividend of 3.0 cents per share on 25 September 2017 § This took total dividends in respect of FY17 to 6.0 cents per share, a 9% increase on DIVIDENDS the prior year’s payout § RCG expects its dividend payout ratio to be between 75% and 80%
Slide 24: Vision & guiding principles, Core Value proposition
Vision & guiding principles Core Value proposition Daniel Agostinelli RCG Corporation Limited Annual General Meeting 23 November 2017 24
Slide 25: Our Vision and Guiding Principles
Our Vision and Guiding Principles Strategic Vision To lead the performance and lifestyle footwear market across Australia and New Zealand, by delivering world-class consumer experiences, harnessing the power of our people, partnerships and products Key Guiding Principles Shareholder Company Delivery
Slide 26: Our Core Value Proposition
Our Core Value Proposition Ensuring our business remains distinctive, desirable and defensible Defend and grow our position Best-of-breed retail through Approximately 40% of retail as the leading player in premium store fitouts, visual sales from vertical and performance and lifestyle merchandising