Accent Group Ltd · ASX:AX1
Accent — Shareholder Meeting (November 2019)
27 slides from Accent's shareholder meeting presentation, Nov 28, 2019
Slide 1: 2019 Annual General Meeting
2019 ANNUAL GENERAL MEETING Accent Group Limited 2019 AGM Presentation 1 1
Slide 2: Table of contents
Table of contents David Gordon Chairman Daniel Agostinelli CEO Accent Group Limited 2019 AGM Presentation 2 1
Slide 3: Agenda
Agenda Item Welcome and Introduction Accent driving innovation in Retail Innovation for growth – growth plan update FY19 financial performance and shareholder value creation Trading outlook and Board changes Formal business Accent Group Limited 2019 AGM Presentation 3 1
Slide 4: Accent Group – Innovating for growth
Accent Group – Innovating for growth Accent Group continues to drive innovation in retail Acquired business 49 corporate stores 65 corporate stores New concepts Premium footwear 5 websites 11 websites 13 websites 17 websites marketplace Same day delivery Digital Endless aisle 17 websites Click and d
Slide 5: Store growth core business
Store growth core business • New store openings in line with plan • On track to open at least 40 new stores excluding Trybe and PIVOT • New stores continue to perform in line with expectations • Opened 2 Platypus superstores and first CAT store in Australia • Innovative store experiences – live perf
Slide 6: The Athlete's Foot
The Athlete’s Foot • Launch and rollout of MyFit 3D, latest foot scanning technology • Agreed on commercial terms to purchase remaining New Zealand franchisees in February 2020 • On track to have at least 65 corporate ANZ stores by the end of FY20 Melbourne Central TAF store opening My Fit 3D, foot
Slide 7: The Trybe
The Trybe • Launch of 4 stores and website to target kids segment • Innovative customer experience elements including contemporary fitting spaces, digital screens and interactive play zones • Further 3 stores to be opened in time for Christmas FY20, targeting 12 stores opened by the end of FY20 • La
Slide 8: PIVOT
PIVOT • Launch and trial of PIVOT in H2 FY20, a new lifestyle concept • Opportunity to segment the Australian lifestyle footwear market with value products that are not available in the Australian market • Plan to have no crossover of products and styles between PIVOT and existing banners Platypus,
Slide 9: Crèmm
Crèmm • Launch of Crèmm, a premium online footwear and accessories marketplace • Showcasing vertical brands, supplied brands and 3rd party brands in a unique digital marketplace • Launch with 50 plus brands and 4,500 styles, expected to double over the next 6 months with a strong pipeline of interes
Slide 10: Stylerunner
Stylerunner • The premium online site for activewear in the ANZ market • $12m in net sales in FY19 across apparel, footwear and accessories • Operates in the $4.6bn Activewear market in Australia • 600,000 Instagram followers • Access to top tier athleisure brands and products from Nike, adidas, P.E
Slide 11: Digital
Digital • FY19 digital sales up 93% on FY18 • Completion of endless aisle and same day delivery rollout across all banners • Customers’ preference for express delivery (less than 3 hours) ahead of expectations • 4.8m customers registered through various loyalty programs, up 37% (~1.3m customers) ver
Slide 12: New and vertical brands
New and vertical brands • $4.5m of sales at 70% margin since launch in November ‘18 • Targeting at least $15m in sales FY20 • Launching Trybe accessories and Shu Bar footwear in Hype, both planned for December ‘19 Accent Group Limited 2019 AGM Presentation 12 4
Slide 13: Brand licence renewals
Brand licence renewals • Dr Martens renewed until March 2024 • Merrell contract extension confirmed until December 2024 • Vans contract extension confirmed until December 2023 • Sperry contract extension agreed in principle until December 2022 Distribution Agreements CAT Apparel Dec-20 Timberland De
Slide 14: FY19 financial performance
FY19 financial performance1 Key Metrics FY15 to FY19 Owned Sales ($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) 109
Slide 15: 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 16: Trading outlook
Trading outlook Accent Group continues to expect another year of profit growth, delivered through: • Low single digit LFL growth, including strong digital growth; • New stores and annualisation of stores opened in FY19; • Growth from TAF corporate stores; • Gross margin % in line with prior year as
Slide 17: Board changes
Board changes • Stephen Kulmar has announced his intention to retire from the Board effective from the end of the AGM, after 12 years on the Board and chairing the remuneration and nomination committee since 2016. Stephen has played an invaluable role in guiding the Company’s succession plan and inc
Slide 18: Formal Business
Formal Business Formal Business Growth Plan Update
Slide 19: 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 30 June 2019. Accent Group Limited 2019 AGM Presentation 19 12
Slide 20: Formal business – Adoption of the Remuneration Report
Formal business Item 2 – Adoption of the Remuneration Report • The remuneration objectives of the Company are set out in the annual report, including the Company’s objectives to incentivise above average executive performance. • The CEO’s FY19 remuneration included a short term incentive payment of
Slide 21: Formal business – Remuneration Report vote
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 30 June 2019 be adopted. For Against Open 130,428,444 81,068,987 1,542,296 61.22% 38.05% 0.73% Accent Group Limited 2019 AGM Presentation 21 12
Slide 22: Formal business – Re-election of Mr David Gordon
Formal business Item 3a – Re-election of Mr David Gordon That Mr David Gordon, 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 317,610,579 44,6
Slide 23: Formal business – Re-election of Mr Stephen Goddard
Formal business Item 3b – Re-election of Mr Stephen Goddard That Mr Stephen Goddard, who retires in accordance with rule 22.1 of the Company’s Constitution, and being eligible for re-election, be re-elected as a Director of the Company. For Against Open 357,156,301 5,163,601 1,515,184 98.17% 1.42% 0
Slide 24: Formal business – Increase non-executive directors' fees
Formal business Item 4 – Increase the maximum aggregate amount of non-executive directors’ fees That, in accordance with ASX Listing Rule 10.17 and for all other purposes, the total aggregate amount of directors’ fees that may be paid to the Company’s non-executive Directors in any financial year be
Slide 25: Formal business – Approval of Performance Rights Plan
Formal business Item 5 – Approval of Performance Rights Plan That, for the purpose of ASX Listing Rule 7.2, Exception 9 and for all other purposes, Shareholders approve the issue of securities under the Performance Rights Plan as an exception to ASX Listing Rule 7.1 as described in the Explanatory S
Slide 26: Formal business – Grant of Performance Rights to Mr Agostinelli
Formal business Item 6 – Grant of Performance Rights to a Director and related party, Mr Daniel Agostinelli That, for the purposes of section 200B of the Corporations Act, ASX Listing Rule 10.14 and for all other purposes, Shareholders approve the grant by the Company to Mr Daniel Agostinelli of 795
Slide 27: 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 FY19 Annual Report and accompanying information released to the market on 22 August 2019. The inform