Briscoe Group Limited · NZX:BGP
Briscoe — Shareholder Meeting (May 2024)
50 slides from Briscoe's shareholder meeting presentation, May 16, 2024
Slide 1: Board Chair's Address to the Annual Meeting of Shareholders
Bi BRISCOE GROUP LIMITED Board Chair’s Address to the Annual Meeting of Shareholders 16 May 2024 Good morning everybody... On behalf of the whole Board, welcome to the 2024 Annual Meeting of Briscoe Group Limited. It’s a pleasure to have so many shareholders, colleagues and friends with us today as
Slide 2: Board Chair's address (continued)
sourcing and purchasing and also initiatives such as direct to customer and changes in our media and marketing. You will hear more in relation to our strategy programme and the work that has been achieved in this area but what continues to drive and impress us as your Board, is the company’s strateg
Slide 3: Corporate governance and directors' fee pool
Given today’s meeting is the keystone occasion in our corporate governance timetable it’s fitting to provide some reflections on how the Board approaches its responsibilities in this area and how we work as a team. You'll be hearing from Rod the emphasis that is placed on working as a team at every
Slide 4: Sustainability strategy and climate disclosures
Our Sustainability strategy is embedded into our corporate strategy. It has four key pillars: Governance, Community, Our People, and the Environment. We have taken the approach that it was necessary to build the strategy — and the policies and programmes that will advance it — over time and with the
Slide 5: Chief Financial Officer's Address to the Annual Meeting
Bi BRISCOE GROUP LIMITED Chief Financial Officer’s Address to the Annual Meeting of Shareholders 16 May 2024 Thanks Rosanne and good morning everyone. At last year’s Annual Meeting | think we all agreed that there was no such thing as a “normal” year for retail — and that that had been particularly
Slide 6: Year ended January 2024 performance
We are proud of the performance we delivered last year so let’s have a look at some of areas of the Group’s performance that made up the result for the year ended January 2024. Sales for the year of $792 million, an increase of only 0.8% on the $786 million recorded for the previous year but an incr
Slide 7: Costs, inventory and capital investment
the year with increases in occupancy, stocktake and energy costs to name just a few. That’s before the 3 successive year of 6-7% increases in store wages. It was therefore a significant achievement for the Group to have decreased the overall cost of doing business in terms of both percentage of sale
Slide 8: Managing Director's Address to the Annual Meeting
Managing Director’s Address to the Annual Meeting of Shareholders 16 May 2024 Thanks Rosanne, and thanks to everybody here for coming along today, whether in person or online. It really was another tough year and | certainly share Rosanne’s view that the Board, the management team and all our people
Slide 9: People, wellbeing and safety
These are complemented by what | think we can say are proven leadership capabilities and a dedicated team approach. We continue to invest in programmes and, increasingly in technologies, for our people to benefit from risk reduction in their workplaces — for example, around manual handling procedure
Slide 10: Priorities and outlook
Nevertheless, the quality and dedication of our people, the strength of our brands, our ability to offer a compelling and enjoyable shopping experience, a trading platform that genuinely makes us easy to do business with, and our strong positions in the homewares and sporting goods markets, are all
Slide 11: Chief Operations Officer's Address to the Annual Meeting
Chief Operations Officer’s Address to the Annual Meeting of Shareholders 16 May 2024 Good Morning It’s fantastic to be here today to update you on our next evolution of the groups strategic plan and our progress against our sustainability commitments. Our last strategic plan delivered ahead of expec
Slide 12: Flagship stores, supply chain transformation, building blocks
3. And we are committed to defining the next generation of Flagship store concepts for both our Rebel and Briscoes stores at Mount Wellington here in Auckland. Nick will tell you more about these shortly. Supply chain Transformation- = This will be a game changer for the stores and for our customers
Slide 13: Supplier vetting and product recycling
Looking ahead to this year we will be working with our local suppliers to follow the same process, this will include suppliers of both goods and services. In total this encompasses over 450 suppliers and our target is to have vetted over 90% of suppliers by the end of 2024. To reduce the amount of p
Slide 14: General Manager Retail Operations & Property's Address
General Manager — Retail Operations & Property’s Address to the Annual Meeting of Shareholders 16 May 2024 Thanks Andrew. Good morning, everyone. Step change in customer service: I'll start by sharing with you the retail teams relentless focus on improving the customer experience. 5 years ago, our c
Slide 15: Customer experience and electronic shelf labels
All these initiatives create an enhanced experience for our customers and seamlessly connect instore with online. The retail leadership team are fully empowered and supported to ensure all customers have a great experience with us. We are proud of the results, which provide us with a high degree of
Slide 16: GM Supply Chain's Address to the Annual Meeting
Bi BRISCOE GROUP LIMITED GM Supply Chain’s Address to the Annual Meeting of Shareholders 16 May 2024 Our supply chain transformation is now moving from planning to delivery. We have selected the SCALE Warehouse Management System (WMS) from Manhattan Associates to drive our future supply chain. Imple
Slide 17: Goods to person shuttle ASRS
An important feature of our new DC will be a goods to person shuttle ASRS. A comprehensive review of warehouse automation options conducted during 2023 concluded with us selecting a preferred partner and completing the design of the system. The outcome is a state-of-the-art solution comprising the f
Slide 18: Annual Meeting May 2024
Annual Meeting May 16 2024 3} -$ ° w Pa gE:
Slide 19: Proxies and resolution voting results
i I P ROX i E S tee) ee et ot capital) , Resolution 1 84.70% 15.13% 0.17% 3.24% . 6,144,747 1,092,836 5,706 7,243,289 Resolution 2 84.83% 15.09% 0.08% 3.25% .- 6,077,037 1,024,411 72,891 7,174,339 Resolution 3 84.71% 14.28% 1.01% 3.22% 7 Resolution 4 84.69% 15.13% 0.18% 3.25%
Slide 20: Financial Performance Year Ended January 2024
Financial Performance Year Ended 28 January 2024
Slide 21: OCR
Source: rbnz.govt.nz OCR 4.25% 5.50%
Slide 22: Inflation
INFLATION ( INFLATION 8.0% 7.2% 7.0% 6.0% 5.0% 4.7% 4.0% 4.0% 3.0% 1.6% 2.0% 1.0% 0.0% 2018 2019 2020 2021 2022 2023 Mar-24 Source: rbnz.govt.nz
Slide 23: NZD:USD
Q ” > NZD :USD NZD 0.75 0.73 i 3 0.65 0.60 0.55 g 3 veady ree e-aed ve-uer 2-290 ET-AON &t-O ez-das ez-Bny zr ev-une ez-hew eeady ezHeW ez-aa4 ev-uer za 2Z-AON zB te-das 7z-any zane ze-unr zz-AOW tady zeW z-aa4 ze-uer Te390 TR-AON 12-90 Tz-das Te-any T2411 Te-unr Te-AeW Teady Te2eW Te-494 Source: bn
Slide 24: Total Sales ($M)
TOTALSALES ($M) 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
Slide 25: Quarterly Sales Growth
QUARTERLY SALES GROWTH Qr4
Slide 26: Quarterly Sales Growth
QUARTERLY SALES GROWTH 2.8% 2.4% Qtri 2 Qtr3 Qtr4 -1.9%
Slide 27: Gross Profit Margin %
GROSS PROFIT MARGIN % 45.8% 44.0% 43.8% J] 42.0% 1" 400% ee oar 39.4%, .°" a —a - 38.0% 36.0% 34.0% 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 1 1 ! a, rte ' 1 ' i) '
Slide 28: Cost of Doing Business
COST OF DOING BUSINESS Cost of Doing Business 27.91% 27.27% 27.20% see > 26.90% 208 YE Jan-21 YE Jan-22 YE Jan-23 YE Jan-24
Slide 29: Inventory
INVENTORY INVENTORY (SM) 120 91 87 81 | YEJan-18 YEJan-19 YEJan-20 YEJan-21 YEJan-22 YEJan-23 YEJan-24
Slide 30: Full Year NPAT ($M)
FULL YEAR NPAT ($M) 87.9 73.2 61.3 62.6 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
Slide 31: Strategic Plan & Sustainability Update
Strategic Plan & “ig fs Sustainability Update Andrew Scott
Slide 32: Strategic Plan Achievements 2020-2023
Strategic Plan Achievements 2020 - 2023 BRISCOE GROUP LIMITED * Over 110 projects delivered across the three-year plan + Step-change in customer satisfaction delivered + Inventory optimisation a key focus + New growth channel DTC (Direct to Consumer) now delivering significant sales revenue + Aclear
Slide 33: 2024-2027 Briscoe Group Strategy
2024-2027 Briscoe Group Strategy GOAL Deliver the Best Retail Experience in New Zealand LONG TERM GROWTH ACCELERATION The best retail experience in NZ STRATEGY RETAIL EXPERIENCE SUPPLY CHAIN EVOLUTION ‘TRANSFORMATION FUTURE STATE World class supply chain to empower NZ’s best store network & team Cur
Slide 34: Sustainability — Scope Reduction Timeline
Sustainability — Scope 1 Reduction Timeline BRISCOE GROUP LIMITED + Defined our sustainability strategy, a 7 aa ur Scope 1 Emissions outlining are key areas of focus Reduction Roadmap ENDED Sanuan Doses De TONNES , inpis owe for Governance, Community, our People and the Environment @ 21026 Fortites
Slide 35: Sustainability — Increasing our Positive Impact on Communities
Sustainability — Increasing our Positive Impact on Communities: BRISCOE GROUP LIMITED + Another Record year of fundraising for our partners Cure Kids - $1.15m * Total to date over $1lm in fundraising + Over 500x applications for Rebel Sport grants from local community sports clubs + First 10x grants
Slide 36: Sustainability — Supplier Compliance
Sustainability — Supplier Compliance BRISCOE GROUP LIMITED . Using the Verisio and their Suppliers Declared Factories . 100% ethical software we have aie mapped our direct Import 20% ; 70% supply chain _ 0 + Over 280x direct import factories 40% 0% now vetted os 10% + Local onshore product and ome ;
Slide 37: Delivering the Best Retail Experience
Delivering the Best Retail Experience Nick Turner
Slide 38: Retail Experience
Retail Experience BRISCOE GROUP LIMITED 5S, purchase Sem ime re ship it tc
Slide 39: Step Change in Customer Service
Step Change in Customer Service 2019 Net Promoter Score 2020 2021 2022 2023 YEAR —e—Briscoes —e=—Rebel 2024 :-@-@-@ BRISCOES you'll never buy better NPS for April 2024 6.1% Increase on the same month of 2023 (76) NPS for all 2024 so far 3.2% Increase on all 2023 (78) pieces of feedback for 2024 20 f
Slide 40: Introducing Electronic Shelf Labels
Introducing Electronic Shelf Labels BRISCOE GROUP LIMITED
Slide 41: Introducing Electronic Shelf Labels
Introducing Electronic Shelf Labels BRISCOE Successfully trialed in 8x stores last year + Installing into ALL stores by August 2024 + Improved sales * Enhanced customer experience * More efficient promotional event execution + Roadmap of initiatives for future benefits * Large investment in retail o
Slide 42: Store Refurbishments
Store Refurbishments BRISCOE GROUP LIMITED
Slide 43: Store Refurbishments
Store Refurbishments BRISCOE GROUP LIMITED + Brand new Rebel Ashburton last year * 7x full store refurbishments 2023 * 7x full store refurbishments 2024-2025 + Enhanced customer experience + Provide retail environments that reflect the G X REBEL quality international brands we sell SPORT + Fit for m
Slide 44: Supply Chain Transformation
Supply Chain “fff Transformation Darren Porteous
Slide 45: Warehouse Management Technology
Warehouse Management Technology BRISCOE + We have selected the Warehouse Management System (WMS) to drive our future supply chain + Implementation is underway in our current warehouse and will be completed by July 2024 + This WMS will orchestrate how our new site will operate from inbound planning t
Slide 46: New North Island Distribution Centre
New North Island Distribution Centre We have selected the site for our new North Island Distribution Centre Ten-year design level Housing more than 17,000 pallets in storage, plus almost 40,000 totes for storage of smaller items in the Automated Storage and Retrieval System The site offers a flowthr
Slide 47: Warehouse Automation
Warehouse Automation BRISCOE = Animportant feature of our new DC will be an Automated Storage and Retrieval System (ASRS) " The system contains the following features: " Decant stations = An ASRS holding around 40,000 storage locations = Carton erectors, label applicators and carton closers " Ergono
Slide 48: Benefits of our New Distribution Centre
Benefits our New Distribution Centre Improved on Shelf Availability Optimised allocation of stock to stores by implementing a model that uses additional data points to provide better results Reduced Days of Cover In-store Reducing excess stock in-store allows us to bring new products and ranges into
Slide 49: DC Construction Timeline
DC Construction Timeline BRISCOE sROUP LIMITED Jun-24 Dec-24 Dec 25 Land and building Jun-25 uliging envelope Dec-26 . Consent lodged ql complete contracts signed “ Construction . Warehouse . Site preparation . Racking and . . 1 Concept design H 1 Steel expected to site H an 1 automation goes live 1
Slide 50: =) O > x Cc (e) & _
=) O > x Cc (e) & _