Step One Clothing Limited · ASX:STP
Step One Clothing — FY2024 Earnings Presentation
25 slides from Step One Clothing's earnings presentation, Aug 21, 2024
Slide 1: FY24 Results Presentation
01 ST=P ONE UNDERWEAR FY24 CEO & Founder Greg Taylor CEO & Founder 21 August 2024
Slide 2: FY24 Results Highlights
For personal use only FY24 RESULTS HIGHLIGHTS Revenue 4 297%vs felere) $84.5NVi FY23: $65.2M Gross Margin Total Customers 4 01% vs felere) 4.23% on felere) 80.8% 1,670,000 FY23: 80.7% FY23: 1,358,000 EBITDA Cash Average Order Value 4 50.8% vs pcp 4.17% from Jun 23 4 71% vs pcp $18.1M $39.0Ni $96 FY2
Slide 3: International Growth and Word of Mouth
onty Ol PErS International Growth $22.0m FY22 AU $20.4m FY23 UK $27.1m FY24 US % Growth On Pcp us: UK: AU: Word of Mouth Our customers are becoming our biggest marketers 19% of ALL orders are from word of mouth Sumbissions au 30% 78,701 UK 26% 65,760 USA 4% 17,368
Slide 4: FY24 Financial Highlights
For personal use only FY24 FINANCIAL HIGHLIGHTS Very efficient digital marketers EBITDA ADVERTISING COST $M $M/% of Revenue 50.8% Increase 445% x 33.1% 357% ye be $277 Fy22 FY23 Fy24 Fy22 FY23 FY24 04 WEBSITE TRAFFIC CONVERSION RATE Direct Business #M Direct Business 53% — 9.1% Increase an ou % 15.3
Slide 5: How is Step One Growing Profitably?
HOW IS STEP ONE oF, GROWING PROFITABLY? 7 a = We sell a product that nearly every person wears every single day = Average wear - 18 hours per day = Functionally different underwear, not traditional underwear = Quality product with over 70,000 5-star reviews = Strong ESG messaging = Customer first fo
Slide 6: Sustainability Scorecard
SUSTAINABILITY SCORECARD ESGis in our DNA ~ ENVIRONMENT SOCIAL GOVERNANCE = FSC® Certified Supply chain Sg cc ie = Modern day slavery = compliance 5 « First time reporting our 5 carbon emissions rom te
Slide 7: Our ESG Credentials
OUR ESG CREDENTIALS COMPOSTABLE alia's FIRST clothing seive ful Chain-ot MADE FROM CORN COMPOSTABLE. ——»> FULL END-TO-END FSC® CERTIFIED SUPPLY CHAIN ee ® I’M CORNIER 4 THAN A DAD — —— : No Child labour No Forced Labour Fair working conditions 07
Slide 8: Growth Partnerships
pqsonal use only i For GROWTH PARTNERSHIPS Raised over $250,000 Sold 45,000+ pairs Over 8,000 new customers been Introduced to the brand 23% returning customers
Slide 9: Women's Range Growth
abe NGE we 8°% INCREASE IN aN , 4 WOMEN’S ORDER VOLUME y ._ a i“ NEW SMOOTHFIT - AUG 23 | ‘ ae | SS - i \ ’ SMOOTHFIT SMOOTHFIT SMOOTHFIT SMOOTHFIT BODY enon _§ BIKINI BRIEF G-STRING BRA FULL BRIEF
Slide 10: Boxer Trunks and Brief Fly
BOXER TRUNKS BRIEF FLY
Slide 11: Growth Partnerships: John Lewis
For personal use only GROWTH PARTNERSHIPS y ! © { « 2year deal + $250,000 raised « Over 45,000 pairs sold + Over 8,000 new customers + New Customer Aquisitions Hi JOHN LEWIs aG Pack of 3 = Online sales have performed very well + Retail exposure potential + John Lewis have over 30 UK locations ° mM M
Slide 12: Athlete Shareholders
ATHLETE SHAREHOLDERS = Athletes love and wear the product = Love it so much they have invested in the company = Not just paid ambassadors ‘ye Jimmy Spithill Total athletes social following: 1 Million+ 12
Slide 13: Market Size by Country
MARKET SIZE BY COUNTRY 2025 FORECAST TAM’ 2 = (eo) o 2 MARKET MEN’S WOMEN’S @ 5 Australia $5951) $1,100 - 2 United Kingdom? $2,631) $5,210 5 uw United States® $10,340) $21,875) Total $12,803) $28,185) *Source: Frost & Sullivan - STP Prospectus 2021 Page’s 35 - 38 1, TAM- Total Addressable Market 2.
Slide 14: 5 Pillars of Profitable Growth
Step One is built on a customer first approach, with innovative products and a model that is capital light and maintains a strong ESG focus 5 PILLARS OF PROFITABLE GROWTH For perso
Slide 15: Outlook
> c je) o 7) S © c je) 7) pe o ioe - e) LL OUTLOOK Step One remains confident in the opportunities in each country and its ability to execute on the Company’s strategy, looking to expand the range and recruit new customers through partnerships. The Company will continue to pursue profitable growth i
Slide 16: Summary
For personal use only Revenue 29.7% vs pcp $84.5 Summary EBITDA 50.8% vs pcp $18.1 100% DIVIDEND Excellent kkk kk 40,268 reviewson —Trustpilot 16 15,152 reviews on PRODUCT( 9) REVIEW FORK IK Womens 30% vs pcp 30 $1.75N TAM 6,810 reviewson Geycle wkkkk Reviewsas of Friday %6 August 2024 Th 4
Slide 17: Attachments: FY24 Financial Data for Analysts
For personal use only ATTACHMENTS FY24 Financial data for analysts 17
Slide 18: FY24 Results Highlights
For personal use only FY24 RESULTS HIGHLIGHTS Founder-led business with highly scalable model & strong track record of growth REVENUE FY24 $84.5m 1H24 $45.1m 2H24 $39.5m NET PROFIT FY24 $12.4m 1H24 $71m 2H24 $5.3m WEBSITE VISITS’ FY24 15.5m 1H24 83m 2H24 7am CUSTOMERS' Jun-24 1,670,000 1H24 182,000
Slide 19: What Makes Step One Financially Attractive
For personal use only WHAT MAKES STEP ONE FINANCIALLY ATTRACTIVE Balance sheet Well funded and capital light Income Statement ASSETS LIABILITIES REVENUE $63.5 $11.3 $84.5 Including: Including: Including: $39.0! Cash $9.0M Supplier payables $79.9 Direct $19.0M Inventory $07 Taxes payable $47M Indirec
Slide 20: Income Statement
For personal use only INCOME STATEMENT i 222 es eee [8000 $00 8000 = GOMMENTARY Australia 50873 43006 7867 18.3% UK 20,129 20,367 6762 3a2% + Revenue increased 29.7% on USA 6546 ten 4735 2615% meena Revenue 84,548 65,184 19,364 207% Cost of sales (16215) (12,580) (3635) 28.9% — Gross profit 68,333 5
Slide 21: Balance Sheet
For personal use only BALANCE SHEET RB Assets Current Assets Cash and cash equivalents Trade and other receivables Inventories Other assets Non-current Assets Property, plant and equipment Intangibles Deferred tax assets Total assets Liabilities Current Liabilities Trade and other payables Deferred
Slide 22: Cash Flow Statement
For personal use only CASH FLOW STATEMENT Receipts from customers (inclusive of GST/VAT) Payments to suppliers and employees (inclusive of GST/VAT) Interest received Finance costs (lease) Income taxes paid Net cash from/(used in) operating activities ‘Term deposit >3 months Equipment and intangibles
Slide 23: Local Distribution
For personal use only LOCAL DISTRIBUTION Local warehousing and fulfilment for prompt customer delivery = Product is warehoused in each country with 3PLs in Australia East Coast, UK East Coast & USA West Coast 3PLs manage all inventory & logistics in each country + 3PLs manage all inventory & logisti
Slide 24: A Brief History of Step One
For personal use only A BRIEF HISTORY OF STEP ONE Founder-led business with highly scalable model & strong track record of growth (aon) (ao) (200) (sem) (onan) (ataa >) (an) (000) (anes) Step One is born Idea, Product Dev & 1st Order I'S A SELLOUT! Video = 4M Views Sell Out 5,000 pairs Re-order 20,0
Slide 25: Important Notice
For personal use only IMPORTANT NOTICE The material in this presentation has been prepared by Step One Clothing Limited (ASX: STP) (“Step One” or the “Company") and is general background information about Step One’s activities current as at the date of this presentation. The information is given in