Shaver Shop Group Limited · ASX:SSG
Shaver Shop — FY2017 Earnings Presentation
32 slides from Shaver Shop's earnings presentation, Aug 24, 2017
Slide 1: FY2017 Results Investor Presentation
Shaver Shop Group Limited FY2017 RESULTS INVESTOR PRESENTATION 24 August 2017 1
Slide 2: 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 3: Table of Contents
TABLE OF CONTENTS 01 Key business highlights 02 Financial results 03 Cornerstones of our business 04 Key growth drivers 05 Summary & outlook 06 Appendices 3
Slide 4: Key Business Highlights
01. KEY BUSINESS HIGHLIGHTS 4
Slide 5: FY2017 Snapshot
FY2017 SNAPSHOT Shaver Shop had a strong finish to FY2017 beating its Prospectus forecast with EBITDA up 18.0% to $14.9 million Sales up Insert Braun Like for Like Sales Insert Foreo Growth image with 33.6% S9 image 6.2% to $142.6m woman Gross Profit Insert woman 7 Franchise Margin using SS Bare Buy
Slide 6: FY17 Key Highlights
FY17 KEY HIGHLIGHTS Achieved Prospectus forecast and delivered another year of significant earnings growth • Total Sales up 33.6% to $142.6m on prior corresponding period (pcp) Store • FY17 LFL Network Sales growth +9.1% (pcp +10.7%) sales • FY17 LFL Corporate Store Sales growth +6.2% (pcp +9.2%) •
Slide 7: Performance Trends
PERFORMANCE TRENDS Corporate Store like for like Reported Sales ($m) sales growth* (%) 160.0 12.0% 142.6 140.0 10.0% 9.5% 9.0% 9.2% 120.0 106.7 8.0% 7.2% Sales (A$m) 100.0 6.2% 80.0 6.0% 63.2 60.0 4.0% 40.0 34.1 22.8 2.0% 20.0 0.0 0.0% FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 * LFL sales gr
Slide 8: Performance Trends (Cont'd)
PERFORMANCE TRENDS (CONT’D) Pro forma EBITDA ($m) Corporate Store Profile (#) 16.0 14.9 100 95 90 8 14.0 12.6 80 7 80 12.0 70 16 Store numbers 60 56 8 10.0 50 8 8.0 7.2 40 30 18 80 5.6 30 6.0 4 56 4.2 20 10 4.0 30 10 16 16 2.0 0 FY13 FY14 FY15 FY16 FY17 0.0 Opening Buybacks Greenfields FY13 FY14 FY1
Slide 9: Financial Results
SHOVER SHOP RANSFORM YOURSELF
Slide 10: Financial Results Summary
FINANCIAL RESULTS SUMMARY Key highlights > Achieved prospectus forecast > Strong top line growth supported by 6.2% like for like sales growth > Network online sales up 9.4% to $11.7m > Successful foray into multi-unit reseller channel in 2H FY17 contributed to rate of like for like sales growth > Pr
Slide 11: Profit & Loss vs FY2016
PROFIT & LOSS VS FY2016 Shaver Shop had a strong finish to FY2017 and is continuing to invest in the foundations to drive long term growth and increased shareholder value. Pro forma EPS up 20.7% and cash NPAT (adjusted for franchise termination tax benefit) up 23.0%. Pro Forma Pro Forma Variance Var
Slide 12: Profit & Loss vs Prospectus
PROFIT & LOSS VS PROSPECTUS Shaver Shop exceeded its prospectus forecast in FY17. Strong top line growth through multi- unit sales (at lower margin) enabled incremental CAPEX and OPEX investments to be made to build brand presence, enhance operational capability and accelerate e-commerce initiatives
Slide 13: Cost of Doing Business (CODB)
COST OF DOING BUSINESS (CODB) CODB as % of Sales Lower CODB% of sales despite 16.0% incremental 2H investments 14.8% 14.7% 14.0% > Pro forma CODB as a percentage of sales decreased 90 bps to 33.8% in FY17 (FY16 – 12.0% 34.7%) 9.2% 10.0% > Incremental 2H FY17 investments made in 8.8% marketing to dri
Slide 14: EBITDA Bridge
EBITDA BRIDGE Corporate store EBITDA growth re-invested in leadership talent, brand development and digital projects to improve competitive positioning 20,000 2,776 18,000 3,529 (1,810) (421) 16,000 14,906 14,000 (1,908) 12,604 136 12,000 A$ (000's) 10,000 8,000 6,000 4,000 2,000 - FY16 Pro Like for
Slide 15: Strong Financial Position
STRONG FINANCIAL POSITION Low gearing and high liquidity Inventory Position ($A 000s) 35,000 Statutory Pro Forma Statutory $000's 30-Jun-16 30-Jun-16 30-Jun-17 Change % 30,000 877 3,675 Cash 4,334 2,529 2,389 -6% 25,000 3,006 Inventory 18,115 18,115 29,123 61% 3,450 20,000 Other assets 48,441 49,322
Slide 16: Pro Forma Net Cash Flow
PRO FORMA NET CASH FLOW Pro Forma Pro Forma Variance ($) FY17 v > Pro forma net operating cashflow (before $'000 FY16 FY17 FY16 interest & tax) was $7.4m primarily due: EBITDA 12,604 14,870 2,266 Non-cash items 308 (308) – deliberate investment in stock (see prior Change in working capital (excludin
Slide 17: Return and Capital Ratios
RETURN AND CAPITAL RATIOS Pro Forma Pro Forma Strong capital position FY16 FY17 > Significant headroom in all debt Number of corporate stores 80 95 covenants Pro forma diluted earnings per share > Fixed charge cover remained above 2X (cents)* 6.0 7.2 > Return on equity increased 90bps to Fixed charg
Slide 18: Cornerstones of Our Business (A Recap)
03. CORNERSTONES OF OUR BUSINESS (A RECAP) 18
Slide 19: Business Cornerstones (A Recap)
BUSINESS CORNERSTONES (A RECAP) Category leadership Attractive growth category (personal care & beauty) 1 > High market share – particularly at top price points 4 > Long term category growth c.6.4%** > 110 locations across ANZ > Comprehensive and expanding range (innovation) > Offer all key brands i
Slide 20: Key Growth Drivers
04. KEY GROWTH DRIVERS 20
Slide 21: Like for Like Sales Growth
LIKE FOR LIKE SALES GROWTH L4L growth of 6.2% in FY17 > Shaver Shop continued its track record of robust like for like sales growth > Suppliers continuing to innovate and offer Shaver Shop exclusive distribution rights > Increasing understanding of the multi-unit reseller channel and our ability to
Slide 22: Continued Brand Realignment: A Beauty Destination 'More for Her'
CONTINUED BRAND REALIGNMENT A BEAUTY DESTINATION ‘MORE FOR HER’ EXCITING RANGE EXPANSION WITH GLOBAL BRANDS RECENT DEVELOPMENTS > Launching Dyson SupersonicTM in Q2 FY18 > StylPro launched exclusively in Q4 FY17 > Dafni exclusivity retained through Christmas 2017 > Foreo launched in Q2 FY17 > Veet a
Slide 23: New Store Rollout
NEW STORE ROLLOUT 8 GREENFIELD STORES OPENED IN FY17 > Greenfield stores met target in FY17 > Continuing to evaluate each new store on a case by case basis > Seven additional sites committed in 1H FY18 including a 200 sq m store at Belrose, NSW – home maker centre > Trialing new store formats and re
Slide 24: Franchise Buybacks
FRANCHISE BUYBACKS Remaining true to investment discipline > 13 franchised stores in network at 30 June 2017 > 1 franchise (The Glen, VIC) contracted to buyback in September 2017 > Remaining franchise stores are amongst the largest stores (by sales) and well run making it more difficult to buyback a
Slide 25: Digital Investments Delivering Growth
DIGITAL INVESTMENTS DELIVERING GROWTH Accelerating e- e-commerce investments > New e-commerce site has delivered >20% growth over prior period since launch > Leveraged 2H EBITDA upside to accelerate incremental digital functionality – Customer testimonials - launched – Buy-now/pay-later options – la
Slide 26: Summary & Outlook
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Slide 27: Summary
SUMMARY Agile response to multi-unit reseller channel opportunity enhanced our H2 results and enabled accelerated digital, marketing and talent investments > Entrepreneurial approach remains a core strength of Shaver Shop (adaptability and innovation are two core values for all staff) > Exceeded FY1
Slide 28: Outlook
OUTLOOK Solid start to FY18 and promising Christmas promotional program. Supply uncertainty for key “multi-unit” product lines and seasonal reliance on Christmas period creates difficulty in forecasting with certainty at this time > Shaver Shop remains in a strong and differentiated position – Excel
Slide 29: Appendices
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Slide 30: FY17 Reconciliation of Statutory to Pro Forma Results
FY17 RECONCILIATION OF STATUTORY TO PRO FORMA RESULTS Share Based Statutory Payments Pro Forma $A 000s FY17 FY17 FY17 Sales 142,568 142,568 Cost of goods sold (83,095) (83,095) Gross profit 59,473 59,473 Gross margin % 41.7% 41.7% Franchise and other revenue 3,570 3,570 Employee benefits expense (20
Slide 31: Key Performance Metrics
KEY PERFORMANCE METRICS Pro Forma Pro Forma FY16 FY 17 Number of corporate stores 80 95 Number of franchise stores 20 13 Total stores 100 108 Corporate store sales ($'000) 106,711 142,568 Franchise store sales ($'000) 43,555 37,614 Total network sales ($'000) 150,266 180,182 Corporate store LFL sale
Slide 32: Thank You
SHAVER SHOP FY2017 RESULTS INVESTOR PRESENTION THANK YOU 32