Slide 1: FY24 Results Presentation (updated)
ASX Announcement 22 August 2024 Step One Clothing Limited FY24 Results Presentation (updated) Step One Clothing Limited (ASX:STP) (“Step One” or “the Company”), has updated its FY24 Investor Presentation to rectify minor transcription errors, with particular reference to the UK revenue line on page
Slide 2: Step One Underwear FY24
ST=P ONE UNDERWEAR FY24 CEO & Founder Greg Taylor CEO & Founder 21 August 2024
Slide 3: FY24 Results Highlights
For personal use only FY24 RESULTS HIGHLIGHTS Revenue 4 297%vs felere) $84.5NVi FY23: $65.2M Gross Margin Total Customers 4 01% vs felere) 4.23% on felere) 80.8% 1,670,000 FY23: 80.7% FY23: 1,358,000 EBITDA Cash Average Order Value 4 50.8% vs pcp 4.17% from Jun 23 4 71% vs pcp $18.1M $39.0Ni $96 FY2
Slide 4: International Growth
onty Ol PErS International Growth $22.0m FY22 AU $20.4m FY23 UK $27.1m FY24 US % Growth On Pcp us: UK: AU: Word of Mouth Our customers are becoming our biggest marketers 19% of ALL orders are from word of mouth Submissions au 30% 78,701 UK 26% 65,760 USA 4% 17,368 03
Slide 5: FY24 Financial Highlights
For personal use only FY24 FINANCIAL HIGHLIGHTS Very efficient digital marketers EBITDA g s va Fy22 50.8% Increase 33.1% Increase Fy23 0 FY24 ADVERTISING COST $M/% of Revenue 445% \ 357% —_ 327% $277 Tit [=| WEBSITE TRAFFIC CONVERSION RATE Direct Business #M Direct Business 53% — 9.1% Increase an ou
Slide 6: How is Step One growing profitably?
HOW IS STEP ONE oF, GROWING PROFITABLY? 7 a = We sell a product that nearly every person wears every single day = Average wear - 18 hours per day = Functionally different underwear, not traditional underwear = Quality product with over 70,000 5-star reviews = Strong ESG messaging = Customer first fo
Slide 7: Sustainability Scorecard
SUSTAINABILITY SCORECARD ESGis in our DNA ~ ENVIRONMENT SOCIAL GOVERNANCE = FSC® Certified Supply chain Sg cc ie = Modern day slavery = compliance 5 « First time reporting our 5 carbon emissions rom te
Slide 8: Our ESG Credentials
OUR ESG CREDENTIALS ——»> FULL END-TO-END FSC® CERTIFIED SUPPLY CHAIN ee : No Child labour No Forced Labour Fair working conditions 100% HOME COMPOSTABLE MADE FROM CORN STARCH COMPOSTABLE. ® I'M CORNIER THAN A DAD
Slide 9: Growth Partnerships
GROWTH PARTNERSHIPS © t > | ie o . a f = és z me Ct i 5 « Raised over $250,000 — * Sold 45,000+ pairs 2 = Over 8,000 new customers al aS) been Introduced to the brand = = 23% returning customers
Slide 10: Women's range and SmoothFit
abe NGE 40 8% INCREASE IN ~~ 4 WOMEN’S ORDER VOLUME y ._ a is NEW SMOOTHFIT - AUG 23 | 5 eo a ~ — | ‘ 4 SMOOTHFIT SMOOTHFIT SMOOTHFIT SMOOTHFIT BODY enon BIKI [: BIKINI BRIEF G-STRING BRA FULL BRIEF
Slide 11: Men's range: Boxer Trunks, Brief, Fly
BOXER TRUNKS BRIEF FLY 10
Slide 12: Growth Partnerships: John Lewis
For personal use only GROWTH PARTNERSHIPS JOHN oe a LEWIS 1) PARTNERS I \ Move together for cerebral palsy 2 J ex jak Pack of 3 « 2year deal + $250,000 raised + Over 45,000 pairs sold * Online sales have * Over 8,000 new customers performed very well + New Customer Aquisitions + Retail exposure pote
Slide 13: Athlete Shareholders
ATHLETE SHAREHOLDERS = Athletes love and wear the product = Love it so much they have invested in the company = Not just paid ambassadors ‘ye Jimmy Spithill Total athletes social following: 1 Million+ 12
Slide 14: Market Size
MARKET SIZE BY COUNTRY 2025 FORECAST TAM’ 2 = (eo) o 2 MARKET MEN’S WOMEN’S @ 5 Australia $5951) $1,100 - 2 United Kingdom? $2,631) $5,210 5 uw United States® $10,340) $21,875) Total $12,803) $28,185) *Source: Frost & Sullivan - STP Prospectus 2021 Page’s 35 - 38 1, TAM- Total Addressable Market 2.
Slide 15: 5 Pillars of Profitable Growth
Step One is built on a customer first approach, with innovative products and a model that is capital light and maintains a strong ESG focus 5 PILLARS OF PROFITABLE GROWTH For perso
Slide 16: Outlook
> c je) o 7) S © c je) 7) pe o ioe - e) LL OUTLOOK Step One remains confident in the opportunities in each country and its ability to execute on the Company’s strategy, looking to expand the range and recruit new customers through partnerships. The Company will continue to pursue profitable growth i
Slide 17: Summary
For personal use only Revenue 29.7% vs pcp $84.5 Summary EBITDA 50.8% vs pcp $18.1 100% DIVIDEND Excellent kkk kk 40,268 reviewson —Trustpilot 15,152 reviews on prooucr 9) Review FORK IK Womens 30% vs pcp 30 $1.75N TAM 6,810 reviews on Geycle wkkkk Reviewsas of Friday %6 August 2024
Slide 18: Attachments
For personal use only ATTACHMENTS FY24 Financial data for analysts 17
Slide 19: FY24 Results Highlights
For personal use only FY24 RESULTS HIGHLIGHTS Founder-led business with highly scalable model & strong track record of growth REVENUE FY24 $84.5m 1H24 $45.1m 2H24 $39.5m NET PROFIT FY24 $12.4m 1H24 $71m 2H24 $5.3m WEBSITE VISITS’ FY24 15.5m 1H24 83m 2H24 7am CUSTOMERS' Jun-24 1,670,000 1H24 182,000
Slide 20: What Makes Step One Financially Attractive
For personal use only WHAT MAKES STEP ONE FINANCIALLY ATTRACTIVE Balance sheet Well funded and capital light Income Statement ASSETS LIABILITIES REVENUE $63.5 $11.3 $84.5 Including: Including: Including: $39.0! Cash $9.0M Supplier payables $79.9 Direct $19.0M Inventory $07 Taxes payable $47M Indirec
Slide 21: Income Statement
For personal use only INCOME STATEMENT Australia UK USA Revenue Cost of sales Gross profit Gross Margin % Advertising & marketing! Advertising as percent of revenue Distribution & fulfilment Distribution as percent of revenue Merchant and transaction fees Transaction fees as % of Revenue Contributio
Slide 22: Balance Sheet
For personal use only BALANCE SHEET RB Assets Current Assets Cash and cash equivalents Trade and other receivables Inventories Other assets Non-current Assets Property, plant and equipment Intangibles Deferred tax assets Total assets Liabilities Current Liabilities Trade and other payables Deferred
Slide 23: Cash Flow Statement
For personal use only CASH FLOW STATEMENT Receipts from customers (inclusive of GST/VAT) Payments to suppliers and employees (inclusive of GST/VAT) Interest received Finance costs (lease) Income taxes paid Net cash from/(used in) operating activities ‘Term deposit >3 months Equipment and intangibles
Slide 24: Local Distribution
For personal use only LOCAL DISTRIBUTION Local warehousing and fulfilment for prompt customer delivery = Product is warehoused in each country with 3PLs in Australia East Coast, UK East Coast & USA West Coast 3PLs manage all inventory & logistics in each country + 3PLs manage all inventory & logisti
Slide 25: A Brief History of Step One
For personal use only A BRIEF HISTORY OF STEP ONE Founder-led business with highly scalable model & strong track record of growth (aon) (ao) (200) (sem) (onan) (ataa >) (an) (000) (anes) Step One is born Idea, Product Dev & 1st Order I'S A SELLOUT! Video = 4M Views Sell Out 5,000 pairs Re-order 20,0
Slide 26: Important Notice
For personal use only IMPORTANT NOTICE The material in this presentation has been prepared by Step One Clothing Limited (ASX: STP) (“Step One” or the “Company") and is general background information about Step One’s activities current as at the date of this presentation. The information is given in