Slide 1: Results Presentation: Year Ended 30 June 2019
RESULTS PRESENTATION YEAR ENDED 30TH OF JUNE 2019 Accent Group Limited FY2019 Results Presentation 1 1
Slide 2: Table of contents
Table of contents Item Page Retail 7 Wholesale & Vertical Brands 10 Growth Plan 12 Dividends, Trading Update & Outlook 16 Appendix 18 Accent Group Limited FY2019 Results Presentation 2 1
Slide 3: Shareholder value creation
Shareholder value creation 10-year Total Shareholder Return1 comparison Accent and ASX300 (30 June 2009 to 28 June 2019) 1,200% 1,000% Total Shareholder Return since 30 June 2009: Accent Group: 25.3% (Annualised Return) 850.6% 800% ASX300 Index: 11.5% (Annualised Return) 600% 400% 200% 196.8% 0% 200
Slide 4: Another record year of profit
Another record year of profit1 Key Metrics FY15 to FY19 Owned Sales ($m) % $’000’s FY19 FY18 Change 772 676 EBITDA $108,853 $88,828 +22.5% 607 414 NPAT $53,886 $44,000 +22.5% 113 Owned Sales $772,466 $675,571 +14.3% FY15 FY16 FY17 FY18 FY19 EPS 10.02 cents 8.23 cents +21.7% FY15 to FY19 EBITDA ($m)
Slide 5: Growth plan on track
Growth plan on track •✓ New stores: opened 54 new stores •✓ Digital growth: 93% (run rate of 15% of sales) •✓ The Athlete’s Foot (TAF) corporate stores: 49 corporate stores up from 28 stores in FY19 •✓ Vertical product: $4.5m of sales at 70% + Gross Margin •✓ Launched The Trybe: 4 stores now open an
Slide 6: FY19 summary of financial performance
FY19 summary of financial performance Financial Summary1 Operating Highlights % Profit & Loss ($000's) FY19 FY18 Change • Total company owned sales of $772.5m, up 14.3% on prior year. Owned Sales 772,466 675,571 14.3% • Total sales (including TAF franchise stores) of Gross Profit 433,125 370,081 17.
Slide 7: Retail
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Slide 8: Retail
Retail Key Financial Highlights Commentary Owned Retail Sales up 15.8% to $656.2m • LFL retail sales up 2.3%1. H2 LFL retail sales up 3.5%1 LFL Sales1 up 2.3% • Total digital sales grew by 93%. Retail Gross Margin % • Platypus, Skechers, Vans, Dr Martens, Timberland and Merrell traded strongly in H2
Slide 9: Digital
Digital Digital Sales Growth Commentary 131% • Total digital sales grew by 93% for FY19, this was on top of the 131% growth in the same period LY. 100% 93% • TAF digital sales growth % of 87%. (% Growth) Sales • 17 websites now in operation across AU & NZ. • Launch of The Trybe, Vans NZ and new Subt
Slide 10: Wholesale & Vertical Brands
Wholesale & Vertical Brands Accent Group Limited FY2019 Results Presentation 10
Slide 11: Wholesale & vertical brands
Wholesale & vertical brands Key Financial Highlights Commentary Wholesale Sales up 7% to $116.3m • Strong sales performance from Vans, Dr Martens, Merrell and CAT. Wholesale Gross Margin % • Skechers wholesale sales were in line with expectations as the Skechers store network rollout continues. Vert
Slide 12: Growth Plan
Growth Plan Growth Plan Update
Slide 13: Growth plan update
Growth plan update 1 The Athlete’s Foot 2 Digital 3 Vertical Product • 65 corporate stores expected by the • Targeting 20% of sales within the next • Continue to expand this program in end of FY20 3 years FY20 and beyond • Commenced the rollout of MyFIT 3D, • Key focus on customer acquisition and •
Slide 14: Growth plan update (cont'd)
Growth plan update (cont’d) 4 New Stores 5 The Trybe • More than 40 new stores (excluding • In October 2018 the Group launched a closures) planned to open in FY20 kids focused online site to target a across Hype, Platypus, Skechers, Dr new segment for Accent Group Martens, CAT, Merrell, TAF and Vans
Slide 15: Growth plan update (cont'd)
Growth plan update (cont’d) 6 Hype & Platypus 7 PIVOT • Hype will extend its focus on the • Launch and trial of a new lifestyle sneaker obsessed teen, working with concept named PIVOT the brands to launch new innovations, more quick-to-market products and expanded assortments. This will be • Opportu
Slide 16: Dividends, Trading Update & Outlook
Dividends, Trading Update & Outlook Accent Group Limited FY2019 Results Presentation 16
Slide 17: Dividends, trading update and FY20 outlook
Dividends, trading update and FY20 outlook • Accent Group has announced a final ordinary dividend of 3.75 cents per share, fully franked, payable on 26 September 2019 to shareholders registered on 12 September 2019 • Total dividends for FY19 of 8.25 cents per share, fully franked, were up 22.2% up o
Slide 18: Appendix
Appendix Accent Group Limited FY2019 Results Presentation 18
Slide 19: Accent Group overview
Accent Group overview Accent Group is the largest retailer and wholesaler of premium lifestyle footwear in the Australia and New Zealand region. Owned Multibrand Retail Banners Exclusive Wholesale Distribution Retail and Accent has the exclusive rights to distribute these brands in Australia Wholesa
Slide 20: Gross margin and FX rate
Gross margin and FX rate The Group has forward USD cover at an average of $0.72 for approximately 80% of its planned FY20 USD purchases (vs $0.75 in FY19) Statutory Gross Margin % and FX Rate (Forward USD Cover) 57% 0.80 0.79 56% 0.78 FX Rate (Forward USD Cover) 55% Gross Margin % 0.76 0.75 54% 0.74
Slide 21: Store network and distribution agreements
Store network and distribution agreements Store Network1 June-2019 Dr Sub Podium Store Network1 TAF Platypus Skechers Vans Timberland Martens Merrell Hype Type Trybe PIVOT /Other Total Stores at End of FY18 143 98 81 17 7 2 22 64 12 446 FY19 Stores Opened 5 14 13 7 2 1 5 3 3 1 54 Stores Closed (6) (
Slide 22: Balance sheet
Balance sheet Balance Sheet Commentary $000's FY19 FY18 • Cash on hand of $36.7m after the investment in the acquisition of TAF corporate stores and Subtype ($11.8m). Cash and cash equivalents 36,698 38,772 • Inventory increase due to investment in new stores and TAF Trade and other receivables 29,7
Slide 23: Earnings and dividends per share
Earnings and dividends per share $000’s FY19 FY18 % Change Earnings Per Share Reported Net Profit after Tax 53,886 44,000 22.5% Less non-controlling Interests (17) (43) NPAT used in the calculation 53,869 43,957 22.5% of the EPS Weighted average number of shares 537,380 533,848 0.7% (in thousands) E
Slide 24: Cash flow
Cash flow Cash Flow Commentary $000's FY19 FY18 • Increase in investing cash outflows driven by the acquisitions of TAF corporate stores and Subtype. EBITDA 108,853 88,828 Change in working capital (9,134) 3,950 • Increase in property, plant and equipment due to significant Net interest and finance
Slide 25: Impact of new lease accounting standard AASB 16 Leases
Impact of new lease accounting standard AASB 16 Leases The implementation of AASB 16 Leases will significantly change reported results however will have no economic impact on the Group, its cashflows, debt covenants or shareholder value. The Group has assessed the estimated impact that AASB 16 would
Slide 26: Notice and Disclaimer
Notice and Disclaimer • This presentation contains summary information about Accent Group Limited 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 financial position an