City Chic Collective Limited · ASX:CCX
City Chic Collective — H1 FY2020 Earnings Presentation
27 slides from City Chic Collective's earnings presentation, Feb 20, 2020
Slide 1: Leading a World of Curves – 1H FY20 Results
LEADING A WORLD OF CURVES 1H FY20 RESULTS 20 February 2020 1
Slide 2: 1H FY20 Result Highlights
1H FY20 RESULT HIGHLIGHTS $105m Global Sales $16.0m Reported Profit Before Tax (Continuing Operations) $19.1m Underlying EBITDA? 53% Online Sales Penetration 1. Excludes Wholesale and Online Marketplaces, and 1 1 1 ent acquisitions Avenue and Hips & Curves city chic collective 3, Aojused for avenue
Slide 3: Contents
CONTENTS 1) City Chic Collective 2) 1H FY20 Result Overview 3} 1H FY20 Financial Review (4 ) Outlook Phil Ryan, CEO Munraj Dhaliwal, CFO
Slide 4: City Chic Collective
CITY CHIC COLLECTIVE
Slide 5: Our Vision is to Lead a World of Curves
OUR VISION IS TO LEAD A WORLD OF CURVES OUTSTANDING PLUS-SIZE GLOBAL OMNI-CHANNEL EXPANDING GLOBALLY BRANDS RETAILER * Australia - Stores, Website city chic 4s Online Website - multigle websites globally ¢ US - Website, Marketplace, CCX « Stores - 107 in ANZ Wholesale avenue * Online Marketplace! +
Slide 6: Customer-Centric Operating Model
CUSTOMER-CENTRIC OPERATING MODEL CUSTOMERS ARE AT THE HEART OF EVERYTHING 1. Defined as transacted in last 12 months. Includes Avenue and Hips & Curves customers who have transacted since acquisition
Slide 7: A Global Collective of Plus-Size Brands
A GLOBAL COLLECTIVE OF PLUS-SIZE BRANDS Segment Age Price Point Channel Region city chic Fashion Forward 18-35 Mid/High Stores Online Marketplace Partnerships ANZ, USA, EU, UK COX Youth Casual 18-25 Mid/High Stores Online ANZ avenue Conservative 35-55 Mid-market Online US A [ ad 2 pe J Slips gc eed
Slide 8: Avenue
avenue Q) Acquired e-commerce assets of US plus-size retailer Avenue in October 2019 for US$16.5m ©) Independent US website targeting women with mid- market price point QC) Met key strategic objectives of US customer base growth and plus-size segment expansion 1H FY20 Update FY20 Priorities * Tradin
Slide 9: Industry Trends
INDUSTRY TRENDS: P Strong growth in global plus-size market STRATEGIC PRIORITI Underserviced customer, limited choice for quality and fit OUR STRENGTHS Demand for seamless multi- channel offering Scalability of online retailing, endless aisle Value in loyalty and personalisation | \ > SCALING GLOBAL
Slide 10: 1H FY20 Result Overview
1H FY20 RESULT OVERVIEW
Slide 11: 1H FY20 Result Summary
1H FY20 RESULT SUMMARY ‘S) Strong 1H FY20 result with 11.3% comparative sales growth! and Underlying EBITDA growth of 20.8%2 business; store rollout on track in ANZ and 6) Delivered strong growth in online and our offshore supporting online growth customer base growth and segment expansion; 6) Avenu
Slide 12: 1H FY20 Operational Highlights
1H FY20 OPERATIONAL HIGHLIGHTS Acquisition ana 53%! Northern Hemisphere SISK integration o Online sales F Active Customers revenue tripled Avenue penetration p globally? Global e-commerce platform upgrade launched for City Chic 3.5x range online vs in-store for City Chic New US partners 7 new stores
Slide 13: Performance by Channel & Region
PERFORMANCE BY CHANNEL & REGION + Online represents 53%? of total sales 12 months to 29 Dec 19 12 months to 30 Dec 18 - Strong growth for CC ANZ and US A$m 1H19 2H19_ 1H20 5% 5% website; the most profitable channels: 7 Z 5% - Avenue contribution represents 11 weeks Stores 43 333 413 6% . \ q cont ea
Slide 14: Track Record of Delivering Consistent Growth
@awNe SALES ($m)! 1H18 aT IHFY20 has the same number of trading days as IHFY19 and 2 less trading days than THFV18 Excludes Wholesale and Online Marketplaces, and recent acquisitions Avenue and Hips & Curves Onin sents websites and online marketplace sales, ona rolling 12-month basis Underiying EBIT
Slide 15: 1H FY20 Financial Review
1H FY20 FINANCIAL REVIEW
Slide 16: 1H FY20 Results Overview – Financial Performance
Sales Revenue $104.8m EBITDA? (Underlying) $19.1m PBT (Reported, Continuing) $16.0m underlying) and Et Judes $1.5m share 1H FY20 RESULTS OVERVIEW FINANCIAL PERFORMANCE 11.3% comparable sales growth! Gross Profit + 53% online penetration? $56.8m * 18.2% Margin EBITS . 9 \ 20.8% growth vs PCP (Underly
Slide 17: • 75.4 104.8 • 7.1% 39.0% 11.4% 11.3% • 45.6 56.8 60.4% 54.2% 15.8
• 75.4 104.8 • 7.1% 39.0% 11.4% 11.3% • 45.6 56.8 60.4% 54.2% 15.8 19.1 • 21.0% 18.2% 21.5% 20.8% • • 9.9 10.5 0.3 0.1 10.1 10.6 •
Slide 18: • 82.2 114.8 (90.2) (95.6) 0.2 0.0 (1.0) (4.0) (8.7) 15.2 (3.5) (4.0) 31.1
• 82.2 114.8 (90.2) (95.6) 0.2 0.0 (1.0) (4.0) (8.7) 15.2 (3.5) (4.0) 31.1 - - (25.7) • 27.6 (29.7) (12.9) - - (7.2) - 17.5 • - (2.9) (12.9) 7.4 • 6.0 (7.1)
Slide 19: • 35.5 23.2 14.9 • 15.2 19.4 36.8 6.0 5.9 14.4 56.7 48.5 66.1
• 35.5 23.2 14.9 • 15.2 19.4 36.8 6.0 5.9 14.4 56.7 48.5 66.1 • 8.3 9.3 10.6 - - 30.4 12.0 15.2 39.0 • 7.3 12.1 9.4 27.6 36.5 89.5 84.3 85.0 155.6 20.6 25.5 39.5 11.4 11.4 10.2 • - - 12.5 - - 12.1 32.1 37.0 74.3 • - - 5.0 • 4.0 3.8 0.3 - - 22.6 4.0 3.8 27.9 36.1 40.7 102.2 • 48.2 44.3 53.4
Slide 20: • • • 25.3 7.9 17.3 1.8 - 1.8 27.0 7.9 19.1 (8.6) (6.3)
• • • 25.3 7.9 17.3 1.8 - 1.8 27.0 7.9 19.1 (8.6) (6.3) (2.3) 18.4 1.6 16.8 (0.6) (0.5) (0.1) 17.8 1.1 16.7
Slide 21: Outlook
x oO oO 4 E D oO
Slide 22: FY20 Update and Outlook
FY20 UPDATE AND OUTLOOK Positive comp Pleasing growth in of Grow customer Leverage product performance from 2HFY20 to date; base across across global Avenue, focus on Build on trial in on track for positive segments and online footprint to implementing Europe and UK comp growth for regions drive sca
Slide 23: Global Plus-Size Retailer
GLOBAL PLUS-SIZE RETAILER Scaling across channels, segments & regions cify chic CCX Slips 5 Crees
Slide 24: Appendix
APPENDIX
Slide 25: Ethical Trade Update
ETHICAL TRADE UPDATE Our Ethical Trade Scorecard FY19 Achieved B+ in the Ethical Fashion Report Green Light in Oxfam's Living Wage Company Tracker Rolled out our Grievance Hotline across Tier 1 Strengthened our Zero Tolerance policies to continue to fight for a safer and slave free supply chain Publ
Slide 26: 15.8 19.1 - - 15.8 19.1 (1.0) (2.3) - - (1.0) (2.3) 14.8 16.8
15.8 19.1 - - 15.8 19.1 (1.0) (2.3) - - (1.0) (2.3) 14.8 16.8 - - 14.8 16.8 0.2 (0.1) - - 0.2 (0.1) 15.0 16.7 - - 15.0 16.7 (1.1) - - - (1.1) - - (1.8) 0.4 2.7 0.4 0.9 - 1.1 - - - 1.1 (1.1) (0.7) 0.4 2.7 (0.7) 2.0 13.9 16.0 0.4 2.7 14.3 18.6 (4.0) (5.5) (0.1) (2.5) (4.2) (8.0) 9.9 10.5 0.3 0.1 10.1
Slide 27: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER This presentation has been prepared by City Chic Collective Limited (the “Company”). It contains general background information about the Company's activities current as at the date of the presentation, It is information given in summary form and does not purport to be
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