Adairs Ltd. · ASX:ADH

Adairs — Goldman Sachs Seventh Annual Small and Mid-Cap Conference (May 2016)

10 slides from Adairs's conference presentation, May 12, 2016

  1. Slide 1: Goldman Sachs Seventh Annual Small and Mid-Cap Conference

    Goldman Sachs Seventh Annual Small and Mid-Cap Conference 12 May 2016

  2. Slide 2: Introduction to Adairs

    Introduction to Adairs Adairs is a differentiated, vertically integrated retailer delivering strong financial results  Adairs is a leading specialty retailer of homewares and home furnishings in Australia  143 stores Australia-wide across five different physical formats being Adairs, Adairs Homema

  3. Slide 3: Differentiated customer proposition

    Differentiated customer proposition Fashion, quality and value, coupled with superior service Price Features of Adairs’ marketplace Low High Highest  Adairs targets mid to upper demographic customers value who are house proud and passionate about design and Adairs market position has home decoratio

  4. Slide 4: Differentiated product offering

    Differentiated product offering… Continued product and range differentiation to drive above-market LFL sales growth STAPLE REVENUE FASHION AND DECORATOR REVENUE PRODUCT AND RANGE A$91M IN FY15 (43%) A$121M IN FY15 (57%) DIFFERENTIATION STRATEGY  Fashion and Decorator product is key to Adairs’ produ

  5. Slide 5: Across a multi format store portfolio

    … across a multi format store portfolio Adairs operates 143 stores Australia-wide across five physical store formats, plus online CORE STORE FORMATS EMERGING STORE FORMATS Adairs Adairs Homemaker Adairs Kids UHR Outlet Store 1 81 40 10 5 7 Numbers Larger store format with an Targets parents and Cont

  6. Slide 6: Delivering strong financial performance

    … Delivering strong financial performance Adairs has delivered strong financial performance as a result of the strategies successfully implemented by management over the last 5+ years LFL SALES GROWTH (%) REVENUE ($M) Number of stores 122 126 128 1351 1461 AVG. TRANSACTIONS PER GROSS MARGIN (%) STOR

  7. Slide 7: Multiple growth strategies

    Multiple growth strategies Adairs’ key strategies will drive continued growth in revenue and EBIT CONTINUED PRODUCT AND RANGE DIFFERENTIATION AUSTRALIAN STORE ROLLOUT • Continued product and range differentiation to drive above market LFL • Targeting 8–12 ‘net new’ store openings per annum over the

  8. Slide 8: Adairs FY16 Outlook

    Adairs FY16 Outlook Strong first half performance resulting in upward revision to guidance FY16 GUIDANCE COMMENTARY Prospectus Guidance • FY16 forecast revised upwards sales and earnings Sales $231m $245 - $255m • Cycling higher LFL sales in 2H (2H15 +21.5%) GP% 61.50% 60 - 61% • Expect moderation i

  9. Slide 9: Questions?

    ions? a —) ® —_ oO

  10. Slide 10: Disclaimer

    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, assumptions and beliefs about fut

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