Universal Store Holdings Ltd. · ASX:UNI
Universal Store — H1 FY22 Earnings Presentation
26 slides from Universal Store's earnings presentation, Feb 23, 2022
Slide 1: H1 FY22 Presentation
UNIVERSAL STORE HOLDINGS LIMITED ACN 169 039 721 ACN 628 836 484 H1 FY22 PRESENTATION FEBUARY 2022
Slide 2: Agenda
FY22 HALF YEAR RESULTS PRESENTATION AGENDA PRESENTERS CONTENTS Alice Barbery Renee Jones H1 FY22 Overview CEO CFO Financial Results 12 years at Universal Store 3 years at Universal Store FY22 Priorities 30+ years’ industry experience 20+ years’ experience across retail and service industries
Slide 3: H1 FY22 Overview
FY22 HALF YEAR RESULTS PRESENTATION H1 FY22 OVERVIEW 3
Slide 4: We Continue to Successfully Navigate Trading Conditions Disrupted by COVID-19
FY22 HALF YEAR RESULTS PRESENTATION WE CONTINUE TO SUCCESSFULLY NAVIGATE TRADING CONDITIONS DISRUPTED BY COVID-19 OUR SALES RESULTS WHEN CENTRES ARE OPEN AND CUSTOMERS FEEL SAFE TO VISIT ARE EVIDENCE OF THE STRENGTH OF OUR OFFER. THE PERFORMANCE OF OUR ONLINE CHANNEL DEMONSTRATES THE POWER OF OUR OM
Slide 5: Significant Trading Disruption During the Half Arising from Government Mandated Store Closures
FY22 HALF YEAR RESULTS PRESENTATION SIGNIFICANT TRADING DISRUPTION DURING THE HALF ARISING FROM GOVERNMENT MANDATED STORE CLOSURES The store closures in NSW, VIC and the ACT Physical Stores (#) LFL Sales Growth (%) 2 76 resulted in 3,192 lost trading days in the 3 67 Perfect 28.5 half (equating to 2
Slide 6: Financial Results
FY22 HALF YEAR RESULTS PRESENTATION FINANCIAL RESULTS 6
Slide 7: Profit & Loss
FY22 HALF YEAR RESULTS PRESENTATION PROFIT & LOSS SALES • Sales $108.3m, down $9.7m or 8.2% on FY21 Underlying Results Dec-21 Dec-20 % Change • The store closures in NSW, VIC and the ACT resulted in 3,192 lost trading days in the half (equating to 25.5% of potential trading days) Sales 108.3 118.0 (
Slide 8: Indicative Underlying EBIT Bridge
FY22 HALF YEAR RESULTS PRESENTATION INDICATIVE UNDERLYING EBIT BRIDGE THE MAJOR CONTRIBUTORS TO THE EBIT DECLINE IN H1 FY22 VS PRIOR YEAR ARE RELATED TO MANAGING THE BUSINESS THROUGH COVID-19 AND SHOULD NOT BE RECURRING IN THE JobKeeper: In H1 FY21 we received MEDIUM TERM a net JobKeeper benefit of
Slide 9: Sales Performance
FY22 HALF YEAR RESULTS PRESENTATION SALES PERFORMANCE Total Sales for the half down 8.2% H1 FY18–FY22 SALES on FY21 due to mandated store closures July to October 140.0 130.0 120.0 118.0 Strong online performance 108.3 delivering $20.9m of sales 110.0 14.0 contributing 19.3% of total sales 100.0 95.
Slide 10: Gross Profit Performance
FY22 HALF YEAR RESULTS PRESENTATION GROSS PROFIT PERFORMANCE Total GP $ for the half down H1 FY18–FY22 GP $6.0m on FY21 predominantly due to store mandated closures July to 59.00% October 80.0 70.0 67.9 58.50% 61.9 60.0 5.8 GP margin (ex delivery) up 60bps 54.5 8.8 58.00% Benefits from direct sourci
Slide 11: Costs of Doing Business
FY22 HALF YEAR RESULTS PRESENTATION COSTS OF DOING BUSINESS UNDERLYING CODB$ INCREASED BY $1.5M, PREDOMINATELY Total CODB at 37.3% of sales up on DRIVEN BY INCREMENTAL INVESTMENTS IN OUR DIGITAL H1 of FY21, however LY included net JobKeeper benefit ($3.0m) MARKETING1 CHANNEL (subsequently repaid), a
Slide 12: Balance Sheet
FY22 HALF YEAR RESULTS PRESENTATION BALANCE SHEET (A$ million) STATUTORY BALANCE SHEET Dec-21 Dec-20 FY21 Total Current assets 67.7 54.3 53.5 Net Cash $33.8m an improvement Cash 48.8 37.2 33.4 of $15.4m on FY21 due to strong Trade Receivables 1.8 1.7 2.4 cash generation Inventories 17.1 15.4 17.7 To
Slide 13: Cashflow
FY22 HALF YEAR RESULTS PRESENTATION CASHFLOW (A$ million) STATUTORY CASHFLOW Dec-21 Dec-20 Change EBITDA 31.7 36.2 (4.5) Strong cashflow delivered again in FY21 with high levels of EBITDA cash Change in inventories 0.5 (1.7) 2.2 conversion Change in trade payables 9.9 7.9 2.0 Change in other working
Slide 14: Group Priorities
FY22 HALF YEAR RESULTS PRESENTATION GROUP PRIORITIES 14
Slide 15: FY22 Group Priorities
FY22 HALF YEAR RESULTS PRESENTATION FY22 GROUP PRIORITIES WE CONTINUE TO EXECUTE ON OUR STRATEGIC PRIORITIES AND MANAGE FOR THE UNIQUE AND VOLATILE TRADING ENVIRONMENT NEW STORE ROLLOUT OPTIMISE PRODUCT MIX 1 • Nine new stores opened H1 FY22, including our first two permanent Perfect Stranger sites
Slide 16: Perfect Stranger Trial to Progress
FY22 HALF YEAR RESULTS PRESENTATION PERFECT STRANGER TRIAL TO PROGRESS PLEASING PERFORMANCE OF OUR PERFECT STRANGER STORES TO DATE. WE WILL CONTINUE TO REFINE OUR PRODUCT AND SERVICE OFFER AS WE PROGRESS TO PHASE 3 Phase 1 Phase 2 Phase 3 DEC 20 – NOV 21 NOV 21 – DEC 21 JAN 22 – JAN 23 Open two stor
Slide 17: Marketing Update
FY22 HALF YEAR RESULTS PRESENTATION MARKETING UPDATE BRANDING • Growing brand awareness key to realising growth objectives • First time Universal Store has invested in above the line marketing, focused in underpenetrated states (NSW and VIC) DIGITAL • In H1 FY22 we increased our Google spend by ~95%
Slide 18: FY22 Group Priorities - Sustainability
FY22 HALF YEAR RESULTS PRESENTATION FY22 GROUP PRIORITIES - SUSTAINABILITY WE CONTINUE TO FOCUS ON OUR ENVIROMENTAL FOOTPRINT AND HAVE DEVELOPED THE BELOW SUSTAINBILITY TARGETS FOR THE BUSINESS PRODUCT EXCELLENCE SUPPLIER PARTNERSHIPS IMPACT ON THE COMMUNITY TREAD LIGHTLY EXPECT TRANSPARENCY CLIMATE
Slide 19: Outlook
FY22 HALF YEAR RESULTS PRESENTATION OUTLOOK
Slide 20: FY22 Outlook
FY22 HALF YEAR RESULTS PRESENTATION FY22 OUTLOOK WE REMAIN OPTIMISTIC AND CONFIDENT OUR CUSTOMERS WILL RETURN TO STORES AS OMICRON CASES SUBSIDE AND COMMUNITIES BEGIN TO LIVE AND NORMALIZE THEIR ACTIVITIES In the first eight weeks of H2 FY22 total sales were up 5.0% versus H2 FY21 (8 weeks), an incr
Slide 21: Appendix
FY22 HALF YEAR RESULTS PRESENTATION APPENDIX 21
Slide 22: Appendix 1: Universal Store - Overview
FY22 HALF YEAR RESULTS PRESENTATION APPENDIX 1: UNIVERSAL STORE - OVERVIEW A leading Australian youth-focused apparel retailer with customer service at its core Who is Universal Store? Who is our quintessential customer? Omni-channel retailer Millennials and Gen Z Fashion focused (16-35 year old) (a
Slide 23: Appendix 2: P&L Underlying to Statutory Reconciliation
FY22 HALF YEAR RESULTS PRESENTATION APPENDIX 2: P&L UNDERLYING TO STATUTORY RECONCILIATION $million Note Dec-21 Dec-20 1. Transaction costs relate to legal, advisors and accounting costs incurred with respect to the Statutory EBITDA 31.7 36.2 preparation of the IPO. Transaction costs 1 0 6.7 2. Incr
Slide 24: Appendix 3: Store Footprint
FY22 HALF YEAR RESULTS PRESENTATION APPENDIX 3: STORE FOOTPRINT TOTAL PHYSICAL STORES 76 NT 1 QLD 22 WA 12 4 SA NSW 20 ACT 2 VIC 15 PLUS 2 WEBSTORES www.univeralstore.com.au www.perfectstranger.com.au 24
Slide 25: Disclaimer
FY22 HALF YEAR RESULTS PRESENTATION DISCLAIMER The material contained in this This presentation may contain forward- To the extent permitted by law, presentation has been prepared by looking statements with respect to the no responsibility for any loss arising Universal Store Holdings Limited ABN 94
Slide 26: Universal Spirit
FY22 HALF YEAR RESULTS PRESENTATION UNIVERSAL SPIRIT The unique ability to create memorable and positive experiences for all. Creating an experience that is fun, open and based on kindness. The environment that enables a person to be their best.
Universal Store Holdings — H1 FY22 Earnings Presentation on 6ix