Lovisa Holdings Ltd. · ASX:LOV
Lovisa — Shareholder Meeting (October 2016)
28 slides from Lovisa's shareholder meeting presentation, Oct 25, 2016
Slide 1: 2016 Annual General Meeting
For personal use only = 2 0 16 ANNUAL GENERAL MEETING
Slide 2: Welcome to the Annual General Meeting
ANNUAL GENERAL MEETING For personal use only We l c o m e t o t h e A n n u a l G e n e ra l M e e t i n g of Lovisa Holdings Limited M i c h a e l K ay N o n E xe c u t i v e Independent Chairman
Slide 3: FY2016 Snapshot
FY2016 S N A P S H O T TOTAL STORE NUMBERS For personal use only LFL SALES +5.5% 250 REVENUE UP GROSS PROFIT UP 14.3% TO 9.8% TO $153M $114M EBIT SUCCESSFUL UK PILOT FINAL DIVIDEND OF 2.0CPS, $24.2M PROGRAM FULLY FRANKED
Slide 4: Managing Director's Presentation
ANNUAL GENERAL MEETING For personal use only Managing Directors Presentation S h a n e Fa l l s c h e e r
Slide 5: FY2016 Financial Highlights
FY 2016 FINANCIAL HIGHLIGHTS For personal use only L I F T IN U N D E R LY I N G E A R N I N G S B E F O R E F X A N D I P O PROFORMA A D J U S T M E N T S • EBIT of $24.2m and Gross Margin of 74% • Result was impacted by the devaluation of the Australian Dollar and the South African Rand • Revenue
Slide 6: FY16 Trading Performance Sales
FY16 TRADING PERFORMANCE SALES L F L s a l e s u p 5.5% $153.5m For personal use only 160 $134.3m 140 120 $105.7m 100 $70.3m 80 60 40 20 FY13 FY14 FY15 FY16 • Total Global Sales up 14.3% to $153.5m; • Australia and New Zealand up 6% to $108m • International expansion continues up 41% to $45m • Enter
Slide 7: FY16 Trading Performance Gross Margin
FY16 TRADING PERFORMANCE G R O S S MARGIN G R O S S M A R G I N S B U F F E T E D BY D E VA LUAT I O N O F A U D For personal use only Gross Margin at Constant Currency* • Gross profit increased 9.8% to $113.6m FY16 FY16 FY15 Currency USD 0.752 0.878 0.878 • Gross Margin for the year was 74% followi
Slide 8: Balance Sheet and Cashflow
BALANCE SHEET AND CASHFLOW H E A LT H Y B A L A N C E S H E E T A N D S T R O N G C A S H F L O W For personal use only • Cash flow from operations lifted 26% to (A$’000s) FY16 FY15 $32m Net Cash 4,729 2,343 Receivables 2,293 2,147 Inventories 15,034 15,012 • Capital expenditure of $4.6m on new stor
Slide 9: Store Growth
STORE GROWTH C O N T I N U E D I N T E R N AT I O N A L E X PA N S I O N W I T H N E T I N C R E A S E For personal use only OF 11 STORES OPENING DURING THE 2016 YEAR • Store growth continues offshore, with 44% of Store number growth stores now outside of Australia Current FY16 FY15 Australia 148 14
Slide 10: UK Rollout Progressing as Expected
U K ROLLOUT PROGRESSING AS EXPECTED UK PILOT PROGRAM SUPPORTS A CONTINUTED ROLLOUT OF THE UK MARKET For personal use only • Embarked on pilot program in November 2015 to determine feasibility of the UK market • Opened three stores in FY16 being Leeds, Bromley, Brighton and Manchester in July • Board
Slide 11: Trading Update
TRADING UPDATE • We have experienced a strong start to the year with same store For personal use only sales growth in Q1 tracking above the 3% to 5% range as anticipated, following the retail price increases in the second half of FY16 • Currently at 262 stores after opening an additional 12 this yea
Slide 12: Notice of Meeting Agenda Items
ANNUAL GENERAL MEETING For personal use only Notice of Meeting Agenda Items Michael Kay N o n E xe c u t i v e Independent Chairman
Slide 13: Financial Report
FINANCIAL REPORT For personal use only “ To receive and consider the Financial Report of the Company and the Directors’ Report and the Auditor's Report for the year ended 3 July 2016”
Slide 14: Remuneration Report
REMUNERATION REPORT For personal use only “That, the Remuneration Report for the year end 3 July 2016, being part of the Directors’ Report, be adopted”
Slide 15: Proxies Received
PROXIES RECEIVED For personal use only For: 33,098,285 Against: 231,060 Open - Usable 139,634
Slide 16: Re-election of Michael Kay
RE-ELECTION OF MICHAEL KAY For personal use only "That Michael Kay be elected as a Director of the Company”
Slide 17: Proxies Received
PROXIES RECEIVED For personal use only For: 75,371,775 Against: 3,313,075 Open – Usable 4,641,134
Slide 18: Re-election of James King
RE-ELECTION OF JAMES KING For personal use only "That James King be elected as a Director of the Company”
Slide 19: Proxies Received
PROXIES RECEIVED For personal use only For: 78,673,350 Against: - Open – Usable 4,652,634
Slide 20: Approval IPO Options Grant
APPROVAL IPO OPTIONS GRANT "That, approval be given for all For personal use only purposes, including ASX listing Rule 10.14, for the grant of options under the Equity Incentive Plan to the Managing Director, Shane Fallscheer, as his initial public offering long term incentive, on the terms describe
Slide 21: Proxies Received
PROXIES RECEIVED For personal use only For: 77,487,345 Against: 37,000 Open – Usable: 4,650,634
Slide 22: Approval FY17 Options
APPROVAL FY17 OPTIONS "That, approval be given for all For personal use only purposes, including ASX listing Rule 10.14, for the grant of options under the Equity Incentive Plan to the Managing Director, Shane Fallscheer, as his incentive for the year ended 2 July 2017, on the terms described in the
Slide 23: Proxies Received
PROXIES RECEIVED For personal use only For: 77,299,535 Against: 219,810 Open – Usable 4,655,634
Slide 24: Questions
ANNUAL GENERAL MEETING For personal use only QUESTIONS
Slide 25: Thank You
ANNUAL GENERAL MEETING For personal use only T H A N K YO U
Slide 26: For personal use only
Some of the information contained in this presentation For personal use only contains “forward-looking statements” which may not directly or exclusively relate to historical facts. These forward-looking statements reflect the current intentions, plans, expectations, assumptions and beliefs about fut
Slide 27: Appendix – Profit and Loss Statement
A P P E N D I X 1 – PROFIT AND LOSS STATEMENT L I F T IN U N D E R LY I N G E A R N I N G S B E F O R E F X A N D IPO p r o f o r m a A D J U S T M E N T S For personal use only PROFORMA EARNINGS ADJUSTED FOR IPO AND PUT OPTION IN FY15 ($’m) FY16 FY15 Variance (%) Actual Proforma Proforma Revenue 15
Slide 28: Appendix – Reconciliation of statutory EBIT to proforma EBIT
APPENDIX 2 Reconciliation of FY15 statutory EBIT to proforma EBIT For personal use only (A$’000s) FY15 Consolidated statutory EBIT 37,470 Change in provision for share buy back (14,756) IPO costs 2,115 Proforma EBIT 24,829 Reconciliation of FY16 statutory EBIT to constant currency EBIT (A$’000s) FY1