Nick Scali Limited · ASX:NCK
Nick Scali — Investor Presentation (February 2022)
16 slides from Nick Scali's investor presentation, Feb 3, 2022
Slide 1: H1 FY22 Results Presentation
H1 FY22 Results Presentation 3 February 2022
Slide 2: H1 FY22 Highlights
H1 FY22 Highlights Outstanding Order Sales Revenue Acquisition of Plush Bank $180.3m1 completed Nov 21 $174.7m for $101.4m (+5.4% vs H1 FY21) (H1 FY21: $103.1m) Interim Dividend Underlying Net Store Network 35.0 cents per share Profit After Tax2 108 Showrooms $35.6m Payout Ratio3 84.5% Nick Scali Fu
Slide 3: Revenue
Revenue Sales revenue ($’m) Revenue growth (%) vs H1 FY21 Total +5.4% Nick Scali - 7.5% 21.7 41.3 • Despite elevated opening order bank at 1 July 2021, Nick Scali revenue down due to Covid 28.8 disruption to three areas: o Temporary store closures between July and November; o Lockdowns in sourcing l
Slide 4: Sales Orders & Trading
Sales Orders & Trading Group Sales Orders Total • Total written sales orders of $203.4m, representing growth of 6.4% on H1 FY21 Nick Scali Group Outstanding Order Bank • Q1 trading capacity reduced by 55% vs FY21 due • Total order bank at 31 December 2021 of to temporary store closures in NSW, Victo
Slide 5: Financial Performance
Financial Performance H1 FY21 H1 FY22 Sales revenue 171.1 180.3 Cost of sales (61.6) (66.4) Gross profit 109.5 113.9 Other income 0.8 0.7 1Operating expenses (37.4) (41.6) Depreciation (15.5) (17.9) Finance costs (3.3) (3.9) 1Underlying profit before tax 54.2 51.2 Income tax (16.1) (15.7) 1Underlyin
Slide 6: Cashflow
Cashflow Opening Cash 106.9 Cashflow from Operating Activities 42.3 Operating Lease • Cash of $24.2m generated from operating Payments 18.1 activities (incl. operating lease payments) New Corporate Facility 65.0 • Five year $65m corporate facility secured to fund Plush acquisition. $10m repaid in De
Slide 7: Balance Sheet
Balance Sheet Jun 21 Dec 21 Inventory – On hand ($’m) Cash 106.9 60.6 Inventory – In transit 11.7 17.7 DCs Showrooms Jun 21 Inventory – On hand 35.0 42.7 18.8 16.2 Property – At net book value 83.4 91.2 Plant & equipment 15.2 20.8 DCs Showrooms Dec 21 18.2 24.5 Leased assets 170.9 224.2 Intangibles
Slide 8: Nick Scali Online
Nick Scali Online Online written sales orders($’m) Plush, 2.4 • Nick Scali Online written sales orders of $16.6m, up 88.6% vs 1HFY21, supplemented by online written sales orders of $2.4m for Plush, post- acquisition +88.6% • Nick Scali Online revenue of $13.7m delivering an incremental EBIT contribu
Slide 9: Plush Acquisition
Plush Acquisition Overview Opportunities • Acquisition of 100% of Plush-Think Sofas Pty Ltd • Supply chain synergies completed on 1 November 2021 for $101.4m on - consolidation of overseas suppliers an adjusted cash-free debt-free basis - optimisation of shipping and inbound logistics - utilisation
Slide 10: Store Network
Store Network Western Australia Nick Scali: 4 Queensland Plush: 4 Nick Scali: 12 Plush: 8 Jun New Dec Target 2021 Stores 2021 New South Wales Nick Scali: 20 Nick Scali Plush: 17 Australia 57 - 57 73 New Zealand 4 1 5 13 61 1 62 86 Plush Think Sofas Australia 46 - 46 85-90 New Zealand - - - 5-10 Sout
Slide 11: Property
Property Location Date Net Lettable Acquired Area (m2) Historical cost $98.5m Auburn, NSW Dec 2017 5,469 Net book value $91.2m Auburn, NSW Feb 2020 788 Alexandria, NSW Jul 2010 1,680 Caringbah, NSW Jul 2014 2,633 Fyshwick, ACT Nov 2012 4,120 • Townsville purchase of a combined showroom and Nunawadin
Slide 12: FY22 Outlook
FY22 Outlook • January trading has provided a strong foundation for Jan FY22 revenue growth vs FY21 vs FY20 • Trading during January in Nick Scali stores was down 6% Group1 due to a 25% decline in store traffic and difficulties caused by the Omicron variant. However, the Group saw Total Written Sale
Slide 13: nickscali
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Slide 14: 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
Slide 15: Appendix 1 NPAT Reconciliation
Appendix 1 NPAT Reconciliation H1 FY21 H1 FY22 Reported 1One-off Underlying Reported 2One-off Underlying Items Items Sales revenue 171.1 - 171.1 180.3 - 180.3 Cost of sales (61.6) - (61.6) (66.4) - (66.4) Gross profit 109.5 - 109.5 113.9 - 113.9 Other income 0.8 - 0.8 0.7 - 0.7 Operating expenses (3
Slide 16: Appendix 2 EBIT Reconciliation
Appendix 2 EBIT Reconciliation H1 FY21 H1 FY22 Reported EBITDA 76.3 70.1 1One-off items (3.6) 2.9 Underlying EBITDA 72.7 73.0 Depreciation & Amortisation (15.5) (17.9) Underlying EBIT 57.2 55.1 1 One-off items in H1 FY22 relate to the acquisition of Plush-Think Sofas Pty Ltd. One-off items in H1 FY2