Adairs Ltd. · ASX:ADH
Adairs — Shareholder Meeting (October 2021)
26 slides from Adairs's shareholder meeting presentation, Oct 20, 2021
Slide 1: Adairs Limited Annual General Meeting
Adairs Limited Annual General Meeting 20 October 2021
Slide 2: Brett Chenoweth, Chair
1 BRETT CHENOWETH CHAIR
Slide 3: Your Board
Your Board 2 Brett Chenoweth Trent Peterson Kate Spargo Kiera Grant (Chair) Simon West David MacLean Mark Ronan, MD&CEO Michael Cherubino Non-executive Directors Executive Directors Independent Company secretary: Fay Hatzis
Slide 4: Chair's Report
3 CHAIR’S REPORT
Slide 5: FY21 highlights
FY21 highlights 4 Omni-channel strategy drives record sales Supply chain strategy ► Group Sales +28.5% to $499.8m ► New DHL-operated national distribution completed ► Group online sales of $187.0m (37.4% of total sales) ► Annualised cost savings of c.$3.5m p.a. (pro-rata in FY22) ► Adairs online sal
Slide 6: Managing Director & CEO's Report
5 MANAGING DIRECTOR & CEO’S REPORT
Slide 7: Relationship between total sales and Linen Lovers membership
The relationship between total sales and Linen Lovers membership levels 6 Linen Lover membership growth is a key driver of sales. Member retention initiatives and the facilitation of online sign-ups through the upgrade of our digital platform in FY22 offer significant upside to existing growth rates
Slide 8: Relationship between store sales and retail floor space
The relationship between store sales and retail floor space 7 Growing store floor space through new and up-sized stores will continue to drive store sales Store sales v Store floor space (GLA) ► Store sales are highly correlated to store 350 floor space ► Each additional m2 typically adds c.$4k in 3
Slide 9: Omni conversion
Omni conversion 8 Omni customer are the most valuable and COVID has significantly increased the number of Adairs customers who now shop Adairs both online and in-store ► Multi-channel customers are 40-110% more ► The number of customers actively shopping across valuable than single-channel customers
Slide 10: Our business model
Our business model 9 1 Proven and resilient business model (with material scope to grow) Strong brands (that we own and control) Large and loyal customer base ► Lower cost of customer acquisition and retention ► >950k paid up Linen Lover Club members ► Brand and product exclusivity – Highly engaged
Slide 11: Digital transformation and omni-channel leadership
Digital transformation and omni-channel leadership 10 Our multi-channel model gives us a larger TAM, significant synergy across channels, and delivers customers a superior and more flexible shopping experience 2 Digital transformation and omni-channel leadership Development of our digital channel Hi
Slide 12: Mocka growth
Mocka growth 11 3 Mocka growth How big could Mocka Australia get if it ► Australian brand awareness growing rapidly with AU website achieved "sales to population" parity with NZ? visits +35% in FY21 ► We are investing to enable future growth – New CEO (Vanessa Brennan) appointed $132.1 – Early settl
Slide 13: Profitable store formats
Profitable store formats 12 Our stores are key to being omni and retain significant growth potential 4 Profitable store formats ► All Stores are profitable with relatively short lease terms ► Store floor space +8.2% in FY21 via new and upsized stores ► Larger stores are more profitable and significa
Slide 14: Drivers of Future Growth – Supply chain
Drivers of Future Growth – Supply chain 13 Our new NDC is now operating and will assist in enabling our digital strategy and delivering profitable growth for the next decade 5 Omni Supply Chain Strategy New National Distribution Centre ► DHL is the operator our focus remains on customers and produ
Slide 15: Outlook
Outlook 14 Market perspective Current environment ► Adairs and Mocka continue to benefit from consumers’ ► While COVID-19 store closures will impact our 1H FY22 increased focus on their homes as a sanctuary, and results, our performance online and in regions that have increasingly a place of work, e
Slide 16: Meeting Resolutions
15 MEETING RESOLUTIONS
Slide 17: 1. Annual Financial Report
16 1. Annual Financial Report “To receive and consider the Financial Report of the Company and its controlled entities and the Reports of the Directors and Auditor for the year ended 27 June 2021.”
Slide 18: 2. Re-election of Director
17 2. Re-election of Director “That Michael Cherubino, being eligible, be re-elected as a Director of the Company.” Usable Votes and Proxies Received Votes / Proxies % of Eligible Votes Cast (excluding abstentions) For: 71,842,628 96.24% Open/Undirected (Chairman) 404,983 0.54% Open/Undirected (Othe
Slide 19: 3. Election of Director
18 3. Election of Director “That Brett Chenoweth, being eligible, be elected as a Director of the Company.” Usable Votes and Proxies Received Votes / Proxies % of Eligible Votes Cast (excluding abstentions) For: 73,661,687 98.71% Open/Undirected (Chairman) 405,103 0.54% Open/Undirected (Other) 458,7
Slide 20: 4. Remuneration Report
19 4. Remuneration Report “That the Remuneration Report for the year ended 27 June 2021 be adopted.” Usable Votes and Proxies Received Votes / Proxies % of Eligible Votes Cast (excluding abstentions) For: 54,936,737 82.93% Open/Undirected (Chairman) 399,082 0.60% Open/Undirected (Other) 458,708 0.69
Slide 21: 5. Approval of long-term incentive grant of options to Mark Ronan
20 5. Approval of long-term incentive grant of options to Mark Ronan “That approval be given for all purposes, including ASX Listing Rule 10.14, for the grant of options to Mark Ronan as his annual long-term incentive for the year ended 26 June 2022 on the terms described in the explanatory notes ac
Slide 22: 6. Approval of long-term incentive grant of options to Michael Cherubino
21 6. Approval of long-term incentive grant of options to Michael Cherubino “That approval be given for all purposes, including ASX Listing Rule 10.14, for the grant of options to Michael Cherubino as his annual long-term incentive for the year ended 26 June 2022 on the terms described in the explan
Slide 23: 7. Alteration to the terms of options under Equity Incentive Plan
7. Alteration to the terms of options 22 issued under the Company’s Equity Incentive Plan “That approval be given for the purposes of ASX Listing Rule 6.23.4 and for all other purposes to amend the terms of options which have been issued under the Company’s Equity Incentive Plan to allow for a cashl
Slide 24: 8. Approval of non-executive director remuneration
8. Approval of non-executive 23 director remuneration “That the maximum aggregate annual remuneration of the non-executive directors be increased by $200,000 from $600,000 to $800,000 per annum.” Usable Votes and Proxies Received Votes / Proxies % of Eligible Votes Cast (excluding abstentions) For:
Slide 25: Meeting Closed
24 MEETING CLOSED
Slide 26: Disclaimer
Strong Omni Channel Execution 25 Disclaimer Some of the information contained in this presentation contains “forward-looking statements” which may not directly or exclusively relate to historical facts. These forward-looking statements reflect Adairs Limited current intentions, plans, expectations,