Slide 1: Accent Group Limited FY2020 Results Presentation
Accent Group Limited FY2020 Results Presentation 1 1
Slide 2: Table of contents
Table of contents Item Page Value creation and investor value proposition 3 FY20 summary results 4 Operating Review 6 Growth Plan 14 Dividends and Trading Update 22 Appendix 24 Accent Group Limited FY2020 Results Presentation 2 1
Slide 3: Value creation and investor value proposition
Value creation and investor value proposition 10-year Total Shareholder Return1 comparison Accent and ASX300 (30 June 2010 to 30 June 2020) o Compound EPS growth of 12.3% over the past 10 years. 900% Total Shareholder Return o Strong cash generation and dividend since 30 June 2010: 800% growth of 21
Slide 4: Record FY20 profit
Record FY20 profit1 Key Metrics Pre AASB 16 Pre AASB 16 % $’000’s FY20 FY19 Change Group Sales (inc. 948,935 935,344 +1.5% Franchisees) EBITDA 121,658 108,853 +11.8% EBIT 87,219 80,585 +8.2% PBT 83,557 77,020 +8.5% Digital Growth 69% 93% Inventory 129,106 131,470 Net Debt 31,213 49,427 FY20 Full Yea
Slide 5: Operational highlights
Operational highlights Digital growth: up 69% on FY19, run rate of over 20% of sales. Store growth: opened 57 new stores (including new store formats), 12 closures. The Athlete’s Foot (TAF) corporate stores: 68 corporate stores, up from 49 stores in FY19. Owned brands and product: launch of Shubar i
Slide 6: Operating Review
Operating Review (Subtype Auckland pictured)
Slide 7: Growth in digital sales
Growth in digital sales Digital sales up 69% on LY Contactable customers base grew by 2m to 6.8m FY20 digital sales Largest ever month were 17% of sales. in digital sales – Run rate of over May $29m dollars 20% of sales FY18 FY19 FY20 Record results Fulfilled +52% during key trade more orders than p
Slide 8: Growth in digital sales
Growth in digital sales FY18: 131% YoY growth FY19: 93% YoY growth FY20: 69% YoY growth o Total number of websites: 13. o Total number of websites: 17. o Total number of websites: 19. o 3 new websites launched: o 3 new websites launched: The o Seismic growth in digital sales in Platypus New Zealand,
Slide 9: Growth in digital sales
Growth in digital sales Website Sessions (4 week Rolling) Key Metrics over July 2019 - June 2020 COVID -19 FY20 FY20 FY20 (July ‘19 – (July ‘19 – April– June ’20) Mar ’20) June ’20) Digital Sales +69.0% +31.1% +142.1% Website Sessions +32.9% +29.1% +118.8% Orders +52.0% +24.8% +109.1% Conversion Rat
Slide 10: Growth in digital sales
Growth in digital sales o Integrated omnichannel capability including 19 websites and 500+ store network allows fast customer order fulfillment through Click and Dispatch and Click and Collect. o All physical stores operate as warehouses. During 4-week shut down of retail stores, stores operated as
Slide 11: Retail overview
Retail overview Key Financial Highlights Commentary Owned Retail Sales up 6.5% to $698.6m o LFL retail sales up 1.9%1. LFL Sales1 up 1.9% o Skechers, Vans, Dr Martens, Platypus and Hype DC continued sales growth, with gross margin broadly in line with last year. Store Network2 564 o Opened 57 new st
Slide 12: Wholesale & vertical brands
Wholesale & vertical brands Vertical Distribution and Wholesale Commentary o Wholesale sales were down -6.7% for the year due to the impact of lower demand in April and May. Wholesale sales bounced back in June to normal levels. o Forward pipeline strong with record wholesale sell in achieved in Van
Slide 13: COVID – 19 Impact
COVID – 19 Impact o With the event of COVID-19, in order to safeguard the health and safety of our team and customers, the Company initiated a national shutdown from 25 March for a then unknown duration. o All owned stores were closed to customers from 27 March and progressively reopened through ear
Slide 14: Growth Plan
Growth Plan
Slide 15: Growth plan achievements – Last 4 years
Growth plan achievements – Last 4 years Accent Group continues to drive innovation in retail o The Group’s mid to long term Acquired objective is to achieve greater business 30 franchises acquired than 10% compounding EPS 68 corporate stores growth over time. New o Continued drive to grow digital co
Slide 16: Digital growth – Future initiatives
1 Digital growth – Future initiatives Targeting 30% of sales from digital. Continue to enhance customers’ experience by optimising the customers’ journey and explore additional delivery options. Invest in the next generation of e-commerce for customers enabling best in class user experience. Continu
Slide 17: PIVOT
2 PIVOT o Launch of PIVOT Shellharbour (NSW) in June. Store trading ahead of expectations. o More than 40% of sales mix being achieved from apparel, equipment and accessories. o Launch digital platform in H1 FY21. o Grow store network up to 12 stores in FY21. o Development of 100% owned brand range.
Slide 18: Stylerunner
3 Stylerunner Acquired Stylerunner in November 2019. Successfully integrated the new business into the Accent umbrella, with original team members transitioning well. The team is expanding to support growth expectations. Performance since the acquisition has been extremely promising, delivering grow
Slide 19: Growth plan update
Growth plan update 4 The Athlete’s Foot 5 New Stores 6 Vertical Brands and Product o The 2 remaining New Zealand o Accent remains committed to opening o Continue to expand this program in franchisee stores acquired. New new stores where required return on FY21 and beyond. Zealand is now fully corpor
Slide 20: Store network and distribution agreements
Store network and distribution agreements Store Network1 Jun-20 Other/S’Run Store Network1 TAF Platypus Skechers Vans Timberland Dr Martens Merrell Hype Sub Type Trybe PIVOT Total ner Stores at End of 143 114 94 24 7 4 20 65 2 3 3 479 FY19 FY20 Stores Opened 7 11 19 0 0 2 0 7 1 5 1 4 57 Stores Close
Slide 21: Gross margin and FX rate
Gross margin and FX rate Statutory Gross Margin % and FX Rate (AUD/USD Cover) Statutory Gross Margin % and FX Rate (Forward USD Cover) 57% 0.77 56% 0.75 0.74 FX Rate (Forward USD Cover) 55% Gross Margin % 54% 0.72 56.1% 55.8% 53% 0.70 0.70 54.8% 0.70 52% 52.7% 0.68 51% 0.67 FY17 FY18 FY19 FY20 FY21
Slide 22: Dividends and Trading Update
Dividends and Trading Update Accent Group Limited FY2019 Results Presentation 22
Slide 23: Dividends and trading update
Dividends and trading update o Accent Group has announced a final dividend for FY20 of 4.00 cents per share, fully franked, payable on 24 September 2020 to shareholders registered on 10 September 2020. o Total dividends for FY20 of 9.25 cents per share, fully franked, is up 12.1% on prior year (FY19
Slide 24: Appendix
Appendix Accent Group Limited FY2019 Results Presentation 24
Slide 25: FY20 summary of financial performance
FY20 summary of financial performance Financial Summary1 – Comparable Financial Information Operating Highlights Pre AASB 16 Pre AASB 16 % o Total company owned sales of $807.1m, up Profit & Loss ($000's) FY20 FY19 Change 4.5% on prior year. Sales Owned sales 807,092 772,466 4.5% o Sales impact in M
Slide 26: Balance sheet
Balance sheet Balance Sheet Commentary Post AASB 16 Pre AASB 16 Pre AASB 16 o Inventory decreased due to significant efforts to $000's FY20 FY20 FY19 right size inventory following a $56m shortfall in sales in March and April. Trade receivables and 37,771 41,389 31,820 prepayments o Property, plant
Slide 27: Cash flow
Cash flow Cash Flow – Comparable Financial Information Commentary o Property, plant and equipment driven from Pre AASB 16 Pre AASB 16 significant investment in 57 new stores and 29 FY20 FY19 refurbishments. $000's EBITDA 121,658 108,853 o Net payments for the purchases of business Change in working
Slide 28: Impact of new lease accounting standard AASB 16 Leases
Impact of new lease accounting standard AASB 16 Leases The implementation of AASB 16 Leases has significantly changed reported results however the standard does not have an economic impact on the Group, its cashflows, debt covenants or shareholder value. Below is a summary of the FY20 reported resul
Slide 29: Accent Group overview
Accent Group overview Accent Group is the largest retailer and wholesaler of premium lifestyle footwear in the Australia and New Zealand region. Owned Multibrand Retail Banners Vertical Retail & Wholesale Distribution Retail and Accent has the exclusive rights to distribute these brands in Australia
Slide 30: Notice and Disclaimer
Notice and Disclaimer o This presentation contains summary information about Accent Group Limited which is current as at the date of this presentation. o This presentation contains certain forward-looking statements, including indications of, and guidance on, future earnings and financial position a