Accent Group Ltd · ASX:AX1
Accent — Shareholder Meeting (November 2020)
30 slides from Accent's shareholder meeting presentation, Nov 20, 2020
Slide 1: 2020 Annual General Meeting
2020 ANNUAL Accent Group FY2020 AGM Presentation GENERAL MEETING 1
Slide 2: Online attendees – Question process
ONLINE attendees – QUESTION process When the Question function is available, the Q&A icon will appear at the top of the app To send in a question, click in the ‘Ask a question’ box, type your question and press the send arrow Your question will be sent immediately for review Received Accent Group FY
Slide 3: Online attendees – Voting process
ONLINE attendees – VOTING process When the poll is open, the vote will be accessible by selecting the voting icon at the top of the screen To vote simply select the direction in which you would like to cast your vote. The selected option will change colour For Against Abstain There is no submit or s
Slide 4: The Board
The Board David Gordon - Chairman Daniel Agostinelli - CEO Donna Player Joshua Lowcock Michael Hapgood Stephen Goddard Accent Group FY2020 AGM Presentation 4 1
Slide 5: Other attendees
Other attendees Matthew Durbin – Celesti Harmse – David White – Group CFO & General Counsel & Partner, Deloitte Joint Company Joint Company Secretary Secretary Accent Group FY2020 AGM Presentation 5 1
Slide 6: Agenda
Agenda Item Welcome and Introduction Chairman’s review FY20 financial performance and shareholder value creation Growth plan update – VIP Virtual Vertical Trading update Formal business Accent Group FY2020 AGM Presentation 6 1
Slide 7: Chairman's review
Chairman’s review This has been a year like no other! Accent Group FY2020 AGM Presentation 7 3
Slide 8: FY20 financial performance
FY20 financial performance1 $’000’s Pre AASB 16 FY20 Pre AASB 16 FY19 % Change Group Sales (inc. Franchisees) 948,935 935,344 +1.5% EBITDA 121,658 108,853 +11.8% EBIT 87,219 80,585 +8.2% PBT 83,557 77,020 +8.5% Digital Growth 69% 93% Inventory 129,106 131,470 Net Debt 31,213 49,427 FY20 Full Year Di
Slide 9: Shareholder value creation
Shareholder value creation 10-year Total Shareholder Return1 comparison Accent and ASX300 (30 June 2010 to 28 June 2020) 900% 800% Total Shareholder Return since 30 June 2010: 700% Accent Group: 20.4% (Annualised Return) ASX300 Index: 9.2% (Annualised Return) 600% 542.3% 500% 400% 300% 200% 142.1% 1
Slide 10: VIP Virtual Vertical – Daniel Agostinelli, Group CEO
VIP Virtual Vertical Daniel Agostinelli - Group CEO Accent Group FY2020 AGM Presentation 10 1
Slide 11: Accent Group – VIP Virtual Vertical
Accent Group – VIP Virtual Vertical FY16 FY17 FY18 FY19 FY20 FY21 and beyond 5 websites 11 websites 13 websites 17 websites 19 websites 22+ websites Digital & Digital Hub in Same day delivery Online > 20% of Virtual Melbourne Endless aisle sales run rate Target 30% digital Click and dispatch sales 6
Slide 12: Seismic growth in digital sales continues
Seismic growth in digital sales continues • Strong results delivered across all digital KPIs FY19 FY20 FY21 for FY20 • Seismic growth in digital sales continued in the period July 2020 to October 2020, with sales up 143.0% on prior year and representing c25% of retail sales • Conversion rates remain
Slide 13: VIP & loyalty
VIP & loyalty • Objective is to grow our customer database Accent Group Loyalty Members to 10m customers over time • The Group has deep experience in customer loyalty in The Athlete’s Foot and Merrell businesses • The intent is to introduce loyalty programs across all banners • Skechers loyalty prog
Slide 14: Virtual sales and service
Virtual sales and service • Creates a digital experience that brings the best of our store experience to online shopping • Creates an experience that is knowledgeable, authentic & human • Drives incremental sales through increased conversion rates, average order value and repeat customers • Innovate
Slide 15: Vertical
Vertical • $4.5m of sales in FY19. Launch of Vertical and Owned Brands Sales Hype, Platypus and The Athlete’s Foot (TAF) shoecare, socks and accessories. Accessories Shoecare, • $13.5m sales in FY20. Launch of socks and accessories Shubar in Hype, Alpha in TAF and Trybe Accessories. • Expand the ver
Slide 16: Store growth
Store growth • New store openings ahead of plan • On track to open approximately 80 new stores including new concepts in FY2021 • Potential closure of up to 15 stores where sustainable forward rents cannot be agreed • Strong performance from new stores continues Store Network1 590+ 524 479 77 96 447
Slide 17: PIVOT
PIVOT • Very pleased with PIVOT performance to date • Strong support from brand partners • Digital platform launched in Q2 FY21 • Launch of PIVOT Shellharbour (NSW) in June, Highpoint (VIC) in October and Ballarat (VIC) in November. Stores trading ahead of expectations. • 15 stores signed to open by
Slide 18: Stylerunner
Stylerunner • Performance since the acquisition has been outstanding • Q1 sales up 60.9% on prior year. Q1 gross margin $ up 153% on prior year. • Launched first TVC during Q4 FY20 • New website launched in October 2020 • First store opened in Armadale, performance to date strong. Signed an addition
Slide 19: Trading update
Trading update • Trade to date is well ahead of expectations driven by continued digital growth, strong store reopening in Victoria and ongoing strong trade in other states and New Zealand • LFL sales as at week 20 of 1.3%. Excluding Victoria and Auckland lockdowns, 15.7%. • Digital sales as at week
Slide 20: Formal Business
Formal Business Formal Business Growth Plan Update
Slide 21: Formal business – Financial statements and reports
Formal business Item 1: Financial statements and reports • To receive and consider the Company’s Financial Report, together with the Directors’ Report and Auditor’s Report, for the year ended 28 June 2020. Accent Group FY2020 AGM Presentation 21 12
Slide 22: Formal business – Adoption of the Remuneration Report
Formal business Item 2 – Adoption of the Remuneration Report To consider and, if thought fit, pass the following resolution as ordinary resolution: “That the Remuneration Report as set out in the Annual Report of the Company for the year ended 28 June 2020 be adopted” For Against Open 105,358,356 12
Slide 23: Item 3a – Re-election of Mr Michael Hapgood
Formal business Item 3a – Re-election of Mr Michael Hapgood To consider and, if thought fit, pass the following resolution as ordinary resolution: “That Mr Michael Hapgood, who retires in accordance with rules 22.1 of the Company’s Constitution, and being eligible for re-election, be re-elected as a
Slide 24: Item 3b – Election of Mr Joshua Lowcock
Formal business Item 3b – Election of Mr Joshua Lowcock To consider and, if thought fit, pass the following resolution as ordinary resolution: “That Mr Joshua Lowcock who, having been appointed as a Director of the Company on 28 November 2019 in accordance with rule 21.2.1 of the Company’s Constitut
Slide 25: Item 4 – Grant of Performance Rights to Daniel Agostinelli
Formal business Item 4 – Grant of Performance Rights to a Director and related party, Mr Daniel Agostinelli To consider and, if thought fit, pass the following resolution as an ordinary resolution: “That, for the purposes of section 200B of the Corporations Act, ASX Listing Rule 10.14 and for all ot
Slide 26: Item – Amendments to Constitution
Formal business Item 5 – Amendments to Constitution To consider and, if thought fit, pass the following resolution as a special resolution: “That, for the purposes of section 136(2) of the Corporations Act, the Constitution of the Company be amended as outlined in the Explanatory Statement which acc
Slide 27: Accent Group FY2020 AGM Presentation
Accent Group FY2020 AGM Presentation 27 12
Slide 28: Item 6: Resolution to spill the Board (conditional item)
Formal business Item 6: Resolution to spill the Board (conditional item) Subject to and conditional on at least 25% of the votes validly cast on the resolution to adopt the Remuneration Report for the year ended 28 June 2020 (proposed in Item 2) being cast against that resolution, to consider and, i
Slide 29: Accent Group FY2020 AGM Presentation
Accent Group FY2020 AGM Presentation 29 12
Slide 30: Notice and disclaimer
Notice and disclaimer This presentation contains general background information about Accent Group’s current activities and provides additional comment on, and should be read in conjunction with, the FY20 Annual Report and accompanying information released to the market on 26 August 2020. The inform