City Chic Collective Limited · ASX:CCX
City Chic Collective — Investor Presentation (August 2018)
27 slides from City Chic Collective's investor presentation, Aug 28, 2018
Slide 1: Full Year Results FY18
SPECIALTY FASHION | GROUP FULL YEAR RESULTS FY18 city chic
Slide 2: Contents
CONTENTS 1 Results Overview 2 City Chic Overview 3 Financials Review 4 City Chic Highlights 5 Social Responsibility Appendix
Slide 3: Results Overview
RESULTS OVERVIEW SPECIALTY FASHION | GROUP
Slide 4: Key Highlights
KEY HIGHLIGHTS Successful Transaction Strong Results for City Chic Delivered $132m $19.9m Completed Structural Review Continuing Operations (City Chic) Underlying EBITDA of $19.9m vs Divested Millers, Katies, Autograph, $11.1m in prior year – result is at Crossroads and Rivers to Noni B for upper en
Slide 5: Results Summary
RESULTS SUMMARY Income Statement ($m) FY17 (Restated) FY18 Continuing1 Discontinued Total Continuing1 Discontinued Total Sales Revenue2 125.1 678.9 804.0 131.9 619.3 751.1 Comp Sales Growth3 6.7% (4.2%) (2.0%) 12.9% (3.7%) (1.3%) Underlying EBITDA 11.1 15.6 26.7 19.9 4.1 24.0 Underlying EBITDA Margi
Slide 6: Financial Snapshot: City Chic
FINANCIAL SNAPSHOT: CITY CHIC1 FY18 FINANCIAL PERFORMANCE 15.1% Margin Sales 12.9% CSG3 EBITDA $131.9m $19.9m CODB % of sales Revenue2 36.1% Online Sales (Underlying) decreased to 44.1% from 48.9% 59.0% Margin vs. 57.6% PCP EBIT 12.1% Margin Gross Profit $77.8m $16.0m Improved margin i
Slide 7: Strong Consistent Growth: City Chic
STRONG CONSISTENT GROWTH: CITY CHIC1 SALES ($m)2 COMP SALES GROWTH3 125.1 131.9 23.3% Consistent yoy sales growth (avg. 110.4 14% p.a. in last 3 years) driven primarily by online channels in 12.9% ANZ and USA Strong CSG underpinned by 6.7% expansion of customer base and innovative digital strate
Slide 8: Channels and Markets: City Chic
CHANNELS AND MARKETS: CITY CHIC1 CHANNEL: CONTRIBUTION2 Wholesale Strong cohesion between channels to deliver product to the City Chic 5% customer and enhance customer experience Market leading online platform with sales penetration of 36%2 Online Positive growth in store sales 36% Stores 59%
Slide 9: Operational Achievements in FY18
OPERATIONAL ACHIEVEMENTS IN FY18 Enhancements across the Expanded market presence in the USA business have driven performance and sets the business up for a Successful expansion in to Germany through Zalando partnership strong FY19 Introduced “Digital Dollars” to align incentives across channels Bro
Slide 10: City Chic Overview
2 CITY CHIC OVERVIEW SPECIALTY FASHION | GROUP.
Slide 11: Bold Sexy Glam
LEADING A WORLD OF CURVES BOLD SEXY GLAM CHIC We Are We Fit for We Are a We Create Fearless Confidence Sisterhood Unique Experiences • City Chic is devoted to serving our curvy, fashion-forward customer and making her feel sexy and glam • We have a long standing team who understands our girls’ needs
Slide 12: Executive Leadership Team
EXECUTIVE LEADERSHIP TEAM Select Prior Experience Carley Turner Carley was part of the City Chic founding team in 2006 General Manager of City Head of Brand Chic since City Chic’s Group Marketing and Ecommerce for SFG brands inception in 2006 Joined Oct 2005 25 years’ experience in the retai
Slide 13: Omni-Channel Strategy
OMNI-CHANNEL STRATEGY ONLINE ONLINE CITY CHIC MARKETPLACES Customer centric approach Well presented and consistent customer touchpoints Understand customer wants and spending behaviour WHOLESALE STORES Align team incentives across channels Broader ranges to better serve our customer Maintain nimble
Slide 14: Store Portfolio Strategy
STORE PORTFOLIO STRATEGY Overview Store Growth Strategy 107 Myer • Bricks and mortar footprint in Australia and NZ, Identified a number of attractive locations for 13 primarily in CBD, metropolitan and major large format stores; opportunity to expand regional shopping centres footprint and offer •
Slide 15: Online Strategy
ONLINE STRATEGY City Chic Online Growth Strategy Investment in customer experience – platform / website enhancements, improved delivery capabilities, web chat 36% capability, improved packaging, 24-hr customer service Online Sales Investment in in-store digital experience – “endless aisle” and “stor
Slide 16: Financials Review
INA aE REVIEW _* SPECIALTY FASHION | GROUP
Slide 17: Financial Performance Review
FINANCIAL PERFORMANCE REVIEW A$m FY16 FY17 FY18 Consistent, strong yoy sales growth (avg 14% p.a., last 3 Continuing Operations: Underlying yrs.) Comp sales growth picked up momentum in FY18, driven by Sales Revenue1 $110.4m $125.1m $131.9m strong performance across online and stores Revenue Gro
Slide 18: Accounting for the Divestment – FY18
ACCOUNTING FOR THE DIVESTMENT – FY18 Bridge: City Chic Underlying EBITDA to Group Reported NPAT ($m) Detailed reconciliation set out in Appendix Additional transitional and separation Continuing Operations expenses will be incurred in FY191 (5.8) 2.8 (5.4) 3.5 19.9 16.9 15.0 (24.3) (9.3) Underlying
Slide 19: Financial Position Review
FINANCIAL POSITION REVIEW A$m 30 Jun 17 1 Jul 18 Year end cash balance does not include $31m of proceeds Cash and cash equivalents 17.4 28.9 from sale of brands to Noni B (received on 2 July 2018) Inventories 90.8 15.8 Net cash post transaction settlement and separation costs of approximately $2
Slide 20: City Chic Highlights
4 CITY CHIC HIGHLIGE SPECIALTY FASHION | GROUP
Slide 21: City Chic Highlights
CITY CHIC HIGHLIGHTS Leading plus-size specialty retailer in Australasia, well positioned against broader retail headwinds Significant growth opportunities across City Chic’s omni-channel network Strong momentum across all channels, particularly online Fast growing and loyal customer base Management
Slide 22: Social Responsibility
SPECIALTY FASHION | GROUP.
Slide 23: Ethical Trade Update
ETHICAL TRADE UPDATE 1 2 3 We expect workers in our We are committed to We source product in a supply chain to have safe educating our business, recognised, and healthy working and suppliers, on modern RESPONSIBLE and conditions in an slavery and providing transparent supply chain1. environment wher
Slide 24: Appendix
APPENDIX
Slide 25: Divestment Overview
DIVESTMENT OVERVIEW In November 2017, the Board established an Independent Review Committee (IRC) to conduct a structural review After considering various proposals and strategic options the IRC concluded that retaining City Chic and divesting the balance of the portfolio would maximise value fo
Slide 26: Earnings Reconciliation
EARNINGS RECONCILIATION Continuing Discontinued Continuing Discontinued A$m FY17 FY18 FY17 FY18 A$m FY17 FY18 FY17 FY18 Underlying EBITDA 11.1 19.9 15.6 4.1 Retention/redundancy payments – 1.7 – – Depreciation & amortisation (4.4) (3.9) (17.7) (16.3) Onerous lease/contract provisions – 3.9 – – Other
Slide 27: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER This presentation has been prepared by Specialty Fashion Group Limited (the “Company”). It contains general background information about the Company’s activities current as at the date of the presentation. It is information given in summary form and does not purport to
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