Nick Scali Limited · ASX:NCK
Nick Scali — Macquarie Conference 2022
15 slides from Nick Scali's conference presentation, May 4, 2022
Slide 1: Macquarie Conference Investor Presentation
Macquarie Conference Investor Presentation 4 May 2022
Slide 2: Historical Performance
Historical Performance Sales Revenue & NPAT ($’m) 373.0 15 year (FY07-FY21) revenue CAGR: 11.9% 15 year (FY07-FY21) NPAT CAGR: 17.6% 250.8 268.0 262.5 232.9 203.0 141.4 155.7 127.4 96.4 100.0 103.4 77.2 78.8 77.5 84.2 37.2 41.0 42.1 42.1 11.3 11.6 12.2 14.2 17.1 26.1 8.7 6.6 4.8 9.0 FY07 FY08 FY09 F
Slide 3: H1 FY22 Recap
H1 FY22 Recap Sales revenue ($’m) Underlying net profit after tax1 ($’m) 180.3 38.1 35.6 171.1 H1 FY21 H1 FY22 H1 FY21 H1 FY22 • Revenue up 5.4% • Underlying NPAT1 down 6.6%, due to temporary • Nick Scali revenue ($158.6m) down due to store closures and supply chain disruption temporary store closur
Slide 4: Cashflow & Balance Sheet
Cashflow & Balance Sheet Jun 21 Dec 21 H1 FY22 Recap Cash 106.9 60.6 • Five year $65m corporate facility secured to fund Inventory – In transit 11.7 17.7 Plush acquisition. $10m repaid in December 2021 Inventory – On hand 35.0 42.7 • Net $101.4m paid to acquire Plush Property – At net book value 83.
Slide 5: H2 FY22 Trading Update
H2 FY22 Trading Update H2 FY22 H2 FY22, to 30 April (To 30 April) • Written sales orders for the four months to April, $m vs FY21 including Plush, totalled $182.2m, up 36.5% on FY21 Group • Total written sales orders for Nick Scali for the four Total Written Sales Orders 182.2 + 36.5% months from Ja
Slide 6: Plush Acquisition
Plush Acquisition Overview Strategic Rationale • Plush is a leading lounge retailer with a network of • Complimentary offering and business model 46 showrooms across mainland Australia, and over 280 employees • Significant synergies from integration - aligned distribution - supplier consolidation -
Slide 7: Plush Integration: Gross Margin Initiatives
Plush Integration Gross Margin Initiatives Pre Integration Post Integration • Core range of 45 lounges • 50% of range replaced with new models Product Range • Top 20 lounges account for 90% of sales • Price range widened to include lower price points, • 80% of lounges priced $3,500-$5,500 generating
Slide 8: Plush Integration: Cost of Doing Business Initiatives
Plush Integration Cost of Doing Business Initiatives Pre Integration Post Integration • Mix of third party logistics facilities across five • Integration of Plush logistics capability within the Logistics & locations existing NCK DC facilities Warehousing • No common platform or warehouse management
Slide 9: Store Network
Store Network Western Australia Nick Scali: 6 Queensland Plush: 4 Nick Scali: 12 Plush: 8 Planned December Long New Current 2022 Term Stores New South Wales Target Target (H1 FY23) Nick Scali: 20 Plush: 17 Nick Scali Australia 57 2 59 73 New Zealand 5 - 5 13 62 2 64 86 Plush Australia 46 3 49 85 New
Slide 10: Property
Property Fyshwick Redevelopment March 2022 Location Date Net Lettable Annualised rental saving of $0.6m + lease income Acquired Area (m2) Townsville Acquisition & Redevelopment Auburn, NSW Dec 2017 5,469 May 2022 Annualised rental saving of $0.5m Auburn, NSW Feb 2020 788 Alexandria, NSW Jul 2010 1,6
Slide 11: Online
Online Overview Nick Scali Online • Nick Scali online launched in April 2020 Product Mix • Nick Scali Group online sales orders of $16.6m in 1H FY22, up from $8.8m in 1H FY21 • Nick Scali Online revenue of $13.7m in 1H FY22, incremental EBIT contribution of $8.0m1 • Online sales orders up 43% YoY in
Slide 12: Pillars of Growth
Pillars of Growth 1 • Focused on improvement of the Plush business through better merchandising and store Plush presentation 2 • Roll-out of the Nick Scali and Plush brands across Australia and New Zealand New store roll-out • Current network of 108 stores has scope to increase by 78 stores, leverag
Slide 13: Outlook
Outlook FY22 Financial Year • Given the scale of the outstanding sales order bank and deliveries in Q3 FY22, the Group entered the final quarter of FY22 in a strong position to deliver revenue and profit growth on the prior year. This is despite lockdowns impacting sales orders during the first half
Slide 14: Q&A
Q&A nickscali
Slide 15: Important Notice & Disclaimer
Important Notice & Disclaimer Nick Scali Limited (the “Company”) advises that the information in this presentation contains general background information about the Company’s activities as at the date of the presentation. It is information given in summary form and is based on information available