Shaver Shop Group Limited · ASX:SSG
Shaver Shop — FY2020 Earnings Presentation
30 slides from Shaver Shop's earnings presentation, Aug 24, 2020
Slide 1: Results Presentation
SHAVER SHOP GROUP LIMITED RESULTS PRESENTATION 24 AUGUST 2020
Slide 2: Agenda
01 FY2020 HIGHLIGHTS 02 FY2020 FINANCIAL RESULTS SUMMARY 03 OMNI RETAIL CATEGORY LEADERSHIP 04 TRADING UPDATE & OUTLOOK 05 INVESTMENT SUMMARY
Slide 3: FY2020 Highlights
FY2020 HIGHLIGHTS 3
Slide 4: FY2020 Highlights
FY2020 HIGHLIGHTS RECORD SALES AND PROFIT GIVEN OMNI RETAIL STRENGTH > Total sales up 16.4% to $194.9m with LFL sales up 15.3% – Adapted quickly to meet COVID-19 challenges & opportunity – Exceptional in-store service metrics > Online sales up 103.5% to $47.8m (now 22.7% of sales) > Gross profit mar
Slide 5: Strong sales growth across H1 and H2 FY2020
Strong sales growth across H1 & H2 Sales Growth ($Am) H1 and H2 FY2020 Consistent growth reflects Shaver Shop’s execution across the year and the sector’s resilience > Shaver Shop’s omni-retail investments delivered sales growth across H1 as well as H2 > 20 months of consecutive LFL sales growth +22
Slide 6: FY2020 Trading Review
FY2020 Trading Review Pre COVID-19 Sales Performance (July ‘19 to Mar ‘20) FY2020 Trends in Total and Like for Like Sales Growth > Trading performance was tracking ahead of internal targets through Mar ‘20 45.0% > H1 FY2020 – LFL sales up 9.3%, Online sales up 61% 39.6% 40.0% > FY2020 EBITDA guidanc
Slide 7: COVID-19 Update
COVID-19 UPDATE Successfully navigating challenges while maintaining growth > Health and wellbeing of our customers and team members has always been, and will remain, our top priority > Social distancing and related restrictions has accelerated adoption of DIY personal care and grooming appliances >
Slide 8: FY2020 Financial Results Summary
FY2020 FINANCIAL RESULTS SUMMARY 8
Slide 9: Record sales and profitability
Record sales and profitability Comparative Normalised Resilience of Shaver Shop’s business model Comparable Profit & Loss A$ millions FY20 FY19 (AASB 117) (AASB 117) Variance Variance ($) (%) and successful omni-retail execution Sales 194.9 167.4 27.5 16.4% reflected in FY2020 results Gross profit 8
Slide 10: Shaver Shop has a strong growth trajectory
Shaver Shop has a strong growth trajectory Online sales now the dominant driver of growth and accelerating Consistent Sales Growth (A$ millions) Online Sales Growth (%) 200 120.0% 103.5% 0.3 100.0% 150 5.4 12.1 80.0% 100 194.9 167.1 60.0% 149.6 46.6% 130.4 50 106.7 40.0% 29.7% 30.0% 0 20.0% 9.0% FY1
Slide 11: Operating leverage driving EBITDA growth
Operating leverage driving EBITDA growth Shaver Shop’s distributed fulfilment model has successfully managed the surge in online sales without commensurate OPEX growth Record EBITDA up 36.0% to $18.4 million (A$m) 15.3% LFL Sales Growth(inc Online) was key EBITDA driver (A$m) 20.0 25.0 0.5 (0.6) 0.6
Slide 12: Balance sheet
Balance sheet Shaver Shop’s strong liquidity position gives it strength and flexibility entering FY2021 > Net cash of $12.6 million at 30 June 20 driven by: – Stock realisation strategies Removal of Recognition AASB 16 of AASB 117 – Deferred rent payments - $2.7m Lease Assets Lease Pro-forma AASB 16
Slide 13: Cash flow
Cash flow Operating cash flow $28.9m - up 131% Reclass of > Operating cash flow benefited from deliberate Reported operating Pro Forma Reported FY20 lease FY20 FY19 AASB 117 reductions in working capital in Q4 FY2020 to A$ millions (AASB 16) payments (AASB 117) (AASB 117) Variance improve liquidity
Slide 14: Capital management
Capital management Consistent growth in dividends over the last four years > Reflecting FY2020 performance, no JobKeeper support, strong FY2020 Dividends (Special & Final) 4.8 cents per share balance sheet and growth outlook, Directors have declared a fully-franked 2.7cps final dividend for FY2020 –
Slide 15: Omni Retail Category Leadership
OMNI RETAIL CATEGORY LEADERSHIP 15
Slide 16: Large and growing market
Large and growing market Shaver Shop is a market leader with plans to further growth market share Beauty & Personal Care Market Growth ($A m) > Healthy, beauty and personal care market is estimated to be $10B+ in Australia & New Zealand 12,000 > Product categories straddle all age groups and 10,000
Slide 17: Marketing strategies support physical, digital and emotion driven retailing
Marketing strategies support physical, digital and emotion driven retailing ‘Always On’ marketing approach attracts new and existing customers across all channels In store TVC’s Catalogues (digital) EDM’s Website Social Digital Influencers 17 INVESTOR PRESENTATION AUGUST 2020 17
Slide 18: Shaver Shop is a digital leader in our category
Shaver Shop is a digital leader in our category Digital strategy complements in-store service excellence driving significant sales growth Online Sales ($m) up 103.5% to $47.8 million > Online sales was the key growth driver in FY2020 - up 103.5% 60.0 > Strong foundational IT platforms in-place and r
Slide 19: Our stores and people remain a competitive advantage
Our stores and people remain a competitive advantage Product knowledge and service excellence creates strong brand connection > Store teams are product and category experts > Technical and personal nature of grooming and personal care categories encourages human/emotional connection > Ongoing produc
Slide 20: Trading Update and Outlook
TRADING UPDATE AND OUTLOOK 20
Slide 21: Strong start to FY2021
Strong start to FY2021 Encouraging early trading performance despite store closures in VIC and NZ > LFL sales growth (excludes new & closed stores) over the first 7 weeks of FY2021 up 28.2% > Total sales growth over first 7 weeks of FY2021 up 27.5% with online sales up 187% > Core hair removal and h
Slide 22: Outlook
Outlook Shaver Shop’s business model has proven extremely resilient > Given COVID-19 uncertainties and importance of Christmas season trading result, the Board is not providing FY2021 guidance at this time > Demand for DIY personal care and beauty expected to continue due to long term demand drivers
Slide 23: FY2021+ Growth Initiatives
FY2021+ Growth Initiatives Increase market share - Utilise DIY trend to enhance Increase existing customer value brand exposure through online, social and traditional channels - Maintain service excellence to Product innovation & expansion - Target 1 million customer drive repeat business database w
Slide 24: Investment Summary
SHOVER SHOP BANISEORM YOURSELF” INVESTMENT SUMMARY
Slide 25: Investment Summary
Investment Summary Large and growing market driven by changing consumer preferences and new product innovation Significant potential to further increase market share Strong brand awareness in Australia Differentiated & resilient specialty retail business model – Service excellence and unparalleled p
Slide 26: Appendices
Appendices 26
Slide 27: Key performance metrics
Key performance metrics Comparative Normalised FY2020 FY2019 Comparable Accounting (AASB 117) (AASB 117) Number of corporate stores 117 113 Number of franchise stores 6 8 Total stores 123 121 Corporate store sales (A$m) 194.9 167.4 Franchise store sales (A$m) 15.8 18.1 Total network sales (A$m) 210.
Slide 28: Profit & Loss - AASB16 to AASB117 Reconciliation
Profit & Loss - AASB16 to AASB117 Reconciliation Recognition Recognition Reported of AASB 117 of AASB 16 Comparative Reported Normalised FY20 Operating Depreciatio FY20 FY19 Normali- FY19 $Am (AASB 16) Lease Expense n & Interest (AASB 117) (AASB 117) sation (AASB 117) Sales 194.9 194.9 167.4 167.4 C
Slide 29: Important notice and disclaimer
Important notice and disclaimer This management presentation (“Presentation”) has been prepared by Shaver Shop Group Limited ACN 150 747 649 (“Shaver Shop”) and contains general background information about Shaver Shop, its subsidiaries and their activities which is current at the date of this Prese
Slide 30: FY2020 Results Presentation
SHAVER SHOP GROUP LIMITED FY2020 RESULTS PRESENTATION 24 AUGUST 2020