Accent Group Ltd · ASX:AX1
Accent — Shareholder Meeting (November 2018)
23 slides from Accent's shareholder meeting presentation, Nov 23, 2018
Slide 1: Accent Group Limited 2018 AGM
Accent Group Limited 2018 AGM 1
Slide 2: David Gordon, Chairman
David Gordon Chairman Accent Group Limited 2018 AGM 2
Slide 3: Agenda
Agenda Item Welcome and introduction Update on growth plan FY18 financial performance and shareholder value creation Trading update and outlook Formal business Accent Group Limited 2018 AGM 3
Slide 4: Daniel Agostinelli, CEO
Daniel Agostinelli CEO Accent Group Limited 2018 AGM 4
Slide 5: Growth Plan: New stores
Growth Plan New stores • New store openings ahead of plans • More than 40 new stores now expected to open in FY19 • Platypus megastores opening in Melbourne Central and Pitt Street Sydney Store Network * 500 482 480 460 446 440 430 420 400 FY17 FY18 FY19e *Net after store closures The new Platypus M
Slide 6: Growth Plan: Digital
Growth Plan Digital • FY18 digital sales up 131% on FY17, and up c88%YTD FY19 • Rollout of same day delivery during FY19 • Endless aisle across all banners • Launch of The Trybe, a new premium kids lifestyle website Accent Group Limited 2018 AGM 6
Slide 7: Growth Plan: Brand licence renewals
Growth Plan Brand licence renewals • Palladium licence renewed until 2023 • CAT and Saucony licences renewed until 2021 • Timberland distribution renewed until December 2019 Distribution Expiry date FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 agreements Stance Jun-19 Timberland Dec-19 Merrell D
Slide 8: Growth Plan: New and vertical brands
Growth Plan New and vertical brands • Supra, Sneaker Lab, Filling Pieces and AARK • Vertical accessories, including Hype, Platypus and The Athlete’s Foot branded socks and shoe cleaners currently rolling out Accent Group Limited 2018 AGM 8
Slide 9: Growth Plan: The Athlete's Foot
Growth Plan The Athlete’s Foot • Currently 39 corporate stores, ahead of expectations • 6 acquired stores already refurbished and open for trade • Expect to finish FY19 with approximately 50 corporate stores The Athlete’s Foot Epping The Athlete’s Foot Southland Accent Group Limited 2018 AGM 9
Slide 10: Growth Plan: Subtype acquisition
Growth Plan Subtype acquisition • Premium lifestyle and streetwear retailer • Access to top tier product Subtype store in Sydney Subtype store in Sydney – adidas Yeezy launch November 18 Accent Group Limited 2018 AGM 10
Slide 11: FY18 Financial Performance
FY18 Financial Performance(a) Underlying EBITDA Underlying NPAT Underlying EPS 16% 18% 17% $90.8m $47.1m 8.78c FY18 Dividend Net Debt Inventory 12.5% $34.9m $98.6m $30m of debt Last year $112m 6.75 cents repaid Underlying Sales New Stores Digital Sales Growth (inc TAF Franchises) 5% +31 131% $861m 4
Slide 12: Shareholder Value Creation
Shareholder Value Creation Strong shareholder returns delivered over the past 5 financial years (up to 1 July 2018) • Total shareholder return over the past 5 years of 177%, a Compound Annual Growth Rate (CAGR) of 22.6% • Compounding earnings per share growth of 15.3% per annum Accent Group Limited
Slide 13: Trading Update and Outlook
Trading Update and Outlook Trading Update The full year FY18 results announcement in August 18 outlined that Accent Group was targeting mid-single digit EBITDA growth in FY19 through: • Low single digit LFL store growth, continued strong growth in digital and growth from new stores • Continued margi
Slide 14: Trading Update and Outlook (cont)
Trading Update and Outlook (cont) Trading Update (cont) Overall results for first 20 weeks of FY19 have been materially stronger than expected. This is as a result of: • LFL sales after the first 20 weeks are up 2.5% on last year and on track to our expectations • Digital growth is stronger than exp
Slide 15: Trading Update and Outlook (cont)
Trading Update and Outlook (cont) Outlook • Accent Group still has a significant proportion of the H1 and annual EBITDA to achieve in the key Christmas and back to school periods through December and January. Operational plans are well set for this key trading period. • Based on the strong results a
Slide 16: Accent Group Limited 2018 AGM
Accent Group Limited 2018 AGM 16
Slide 17: 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 1 July 2018. Accent Group Limited 2018 AGM 17
Slide 18: Formal Business: Adoption of the Remuneration Report
Formal Business Item 2 – Adoption of the Remuneration Report That the Remuneration Report as set out in the Annual Report of the Company for the year ended 1 July 2018 be adopted. For Against Open 142,910,917 45,522,715 1,382,726 75.28% 23.99% 0.73% Accent Group Limited 2018 AGM 18
Slide 19: Formal Business: Re-election of Mr Michael Hapgood
Formal Business Item 3a – re-election of Mr Michael Hapgood That Mr Michael Hapgood, who retires in accordance with rules 22.1 and 22.2 of the Company’s Constitution and ASX Listing Rule 14.4, and being eligible for re-election, be re-elected as a Director of the Company. For Against Open 288,624,98
Slide 20: Formal Business: Election of Mr Stephen Goddard
Formal Business Item 3b – election of Mr Stephen Goddard That Mr Stephen Goddard who, having been appointed as a Director of the Company on 23 November 2017 in accordance with rule 21.2.1 of the Company’s Constitution, retires in accordance with rule 22.1 of the Company’s Constitution and ASX Listin
Slide 21: Formal Business: Election of Ms Donna Player
Formal Business Item 3c – election of Ms Donna Player That Ms Donna Player who, having been appointed as a Director of the Company on 23 November 2017 in accordance with rule 21.2.1 of the Company’s Constitution, retires in accordance with ASX Listing Rule 14.4, and being eligible for election, be e
Slide 22: Formal Business: Election of Mr Brett Blundy
Formal Business Item 3d – election of Mr Brett Blundy That Mr Brett Blundy who, having been appointed as a Director of the Company on 6 December 2017 in accordance with rule 21.2.1 of the Company’s Constitution, retires in accordance with ASX Listing Rule 14.4, and being eligible for election, be el
Slide 23: 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 FY18 Annual Report and accompanying information released to the market on 28 August 2018. The inform