Accent Group Ltd · ASX:AX1
Accent — FY2022 Earnings Presentation
20 slides from Accent's earnings presentation, Aug 19, 2022
Slide 1: Results Presentation
Results Presentation Year ended 26th June 2022
Slide 2: The Accent growth journey
The Accent growth journey 1.3b sales inc Owned sales franchisees ($ Millions) 1,103 968 Demonstrated track record 772 807 of retail sales growth driven 676 by store rollout and new banners FY18 FY19 FY20 FY21 FY22 446 stores 479 stores 524 stores 638 stores 762 stores1 Expansion of omni-channel ✓ Cl
Slide 3: The Accent business model
The Accent business model Accent Group’s mission is to be the market leading, digitally integrated retail and distribution business, in the performance lifestyle market for footwear, apparel and accessories across Australia and New Zealand. The Accent Business model Scalable, flexible and defensible
Slide 4: Value creation and investor value proposition
Value creation and investor value proposition Total Shareholder Return1 comparison for Accent and ASX200 (30 June 2012 to 24 June 20222) • A market leading digitally integrated 1,900% consumer business with 36 websites, Total Shareholder Return since 30 June 2012: 28 owned and distributed brands, 72
Slide 5: Accent's sustainability pillars
Accent’s sustainability pillars At Accent we “Make It Happen” Our People Our Responsibilities Our Environment Our people come first We act with integrity We care for our environment Community Reduce & Safety Partnerships Recycle Resources • Committed to providing a safe • Launch of “Stamp your Feet”
Slide 6: Contents
Contents Operational highlights 7 FY22 results summary 8 Operational update 9 Dividend and trading update 12 Appendix 13 Accent Group FY2022 Results Presentation 6
Slide 7: Operational highlights
Operational highlights Total Sales (inc Franchises) VIP & Loyalty 9.3 million $1.27 billion Contactable customers +11.3% on FY21 Additional 900,000 contactable customers in FY22 New Stores Vertical Owned Brands Sales 139 >70 million New stores opened 7% of sales New stores performing strongly Digita
Slide 8: FY22 sales and profit
FY22 sales and profit Key Metrics % $’000’s FY22 FY21 Change Commentary Group Sales (inc. Franchisees) 1,266,557 1,138,239 +11.3% • 400 stores were closed in H1 FY22 due to COVID-19 for 4 months EBITDA 213,565 242,015 (11.8%) – Estimated impact on sales was $95 million EBIT 62,2761 124,905 (50.1%) •
Slide 9: Operational update
Operational update Accent Group
Slide 10: Digital
Digital Digital Sales Growth FY20 FY21 FY22 Digital sales grew to $263.8m, +25.7% on FY21 Digital sales contributed to 24.4% of total retail sales1 1. Digital sales and total retail sales include The Athlete’s Foot franchises Key Metrics2 9.3m contactable Average order FY22 FY21 FY22 FY22 customers,
Slide 11: VIP & Loyalty
VIP & Loyalty Accent Group Contactable Customers (Million) 10.0 9.3 8.4 6.8 4.8 3.5 FY18 FY19 FY20 FY21 FY22 Target • 9.3 million contactable customers • Objective is to grow our customer database to 10 million customers • Platypus and Hype Loyalty launched in FY22, in addition to the existing progr
Slide 12: Retail, Wholesale & Vertical Owned Brands
Retail, Wholesale & Vertical Owned Brands Retail Store Network1 • New stores performing strongly 762 812 • Opened 139 new stores 638 68 74 • Momentum and performance across the Glue business continues to 694 564 strengthen, including new stores in these banners FY21 FY22 Target FY23 • At least 50 ne
Slide 13: Dividends and trading update
Dividends and trading update
Slide 14: Dividends and trading update
Dividends and trading update • Accent Group has announced a final dividend for FY22 of 4.00 cents per share, fully franked, payable on 15 September 2022 to shareholders registered on 1 September 2022 Dividends • Accent Group continues to be defined by strong cash conversion and the consistent strong
Slide 15: Appendix
Appendix Accent Group
Slide 16: Store network and distribution agreements
Store network and distribution agreements Store Network1 Jun-22 TAF Platypus Skechers Vans Timberland Dr Martens Merrell Hype Glue Stylerunner Other Discontinued Total Stores at End of 145 148 131 28 8 15 15 79 22 4 32 11 638 FY21 FY22 Stores Opened 10 24 22 11 2 6 1 10 8 19 16 10 139 Stores Closed
Slide 17: Gross margin and FX rate
Gross margin and FX rate Statutory Gross Margin % and FX Rate Overview 59% 0.80 58% 0.75 0.75 57% 0.74 0.741 0.75 56% Gross Margin % 55% 0.70 FX Hedge Rate 0.70 0.70 0.70 54% 53% 56.1% 56.1% 55.8% 54.8% 0.65 52% 54.2% 52.7% 51% 50% 0.60 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Hedge Rate Gross Margin FX R
Slide 18: FY22 summary of financial performance
FY22 summary of financial performance Financial Summary— Comparable Financial Information Operating Highlights % • Total company owned sales of $1.1 billion, up Profit & Loss ($000's) FY22 FY21 Change 14.0% on prior year Sales Owned sales 1,103,488 967,755 14.0% • Estimated impact of COVID-19 disrup
Slide 19: Balance sheet
Balance sheet Balance Sheet Commentary $000's FY22 FY21 • Property, plant and equipment increased due to significant investment in 139 new Trade receivables and prepayments 55,895 44,540 stores Inventories 241,631 216,881 Trade payables and provisions (159,600) (169,323) Net working capital 137,926
Slide 20: Notice and disclaimer
Notice and disclaimer • This presentation has been prepared by Accent Group Limited ABN 85 108 096 251 (Accent Group or Company) and is general background information in relation to Accent Group and its activities current as at the date of this presentation. It is information given in summary form a