Slide 1: Results Presentation Half Year Ended 30 December 2018
LIMITED RESULTS PRESENTATION HALF YEAR ENDED 30 DECEMBER 2018
Slide 2: Our Brands
SKECHERS. STANCE @ Our Brands PLATYPUS VANS © HYPE = “A The Athlete's Foot “OFF THE WALL” Tunberland & MERRELL. 2 SAUCONY > — SPERRY Since 1935 usddery 7) ayepy
Slide 3: Table of contents
Table of contents Item Page Financial Year highlights 4 Accent Group business model 5 H1 FY19 summary of financial performance 6 Retail performance 8 Omnichannel performance 10 Wholesale & Vertical Brands performance 12 Growth plan update 14-15 Dividends, Trading Update & Outlook 17 Appendix 18 3
Slide 4: Financial Year highlights
Financial Year highlights(a) $’000’s H1 FY19 H1 FY18 % Change NPAT $32,159 $25,260 +27.3% EBITDA $61,260 $49,669 +23.3% EPS 5.69 cents 4.74 cents +20% FY19 Interim 4.50 cents 3.00 cents +50% Dividend Gross Margin 57.3% 54.5% +280 bps Operating Cash $49,311 $31,097 +58.6% Flow (a) All figures in this
Slide 5: Accent Group business model
Accent Group business model Accent Group owns a powerful, scalable, end to end supply chain with direct access to brands and customers that ensure a strong and competitive position for growth. Strong Brand and Retail Banners and Large Store Network & Product Relationships Distributed Brands Customer
Slide 6: H1 FY19 summary of financial performance
H1 FY19 summary of financial performance Financial Summary Operating Highlights Profit & Loss ($000's) H1 FY19 H1 FY18 Var LY • Total company owned sales of $389.4 million, up 11.2% on prior year. Owned Sales 389,391 350,257 11.2% • Total sales (including The Athlete’s Foot franchise Gross Margin ($
Slide 7: Retail Update
Slide 8: Retail performance
Retail performance Key Financial Highlights Commentary Owned Retail Sales up 12.2%, $331.1m • H1 LFL retail sales up 1.2%(a). LFL Sales(a) up 1.2% • Total omnichannel sales grew by 94%. Gross Margin up 330 bps • Significant improvement in Gross Profit margin for the half year, up 330 basis points on
Slide 9: Omnichannel Update
Omnichannel Update
Slide 10: Omnichannel performance
Omnichannel performance Omnichannel Sales Growth % Commentary 200% 170% • Total omnichannel sales grew by 94% for H1 150% FY19, this was on top of the 170% growth in the 100% 94% same period LY. 100% • 16 websites now in operation across AU & NZ. Sales 50% • 1 NEW website due to launch in H2 FY19 (V
Slide 11: Wholesale & Vertical Brands Update
11
Slide 12: Wholesale & Vertical Brand performance
Wholesale & Vertical Brand performance Key Financial Highlights Commentary Wholesale Sales up 5.7%, $58.3m • Strong sales performance from Vans, Dr Martens, Merrell and Wholesale Gross Profit up 20 bps CAT. • Skechers wholesale sales were in line with expectations as we Vertical Distribution and con
Slide 13: Growth Plan Update
Growth Plan Update
Slide 14: Growth plan update
Growth plan update 1 TAF 2 Omnichannel 3 Vertical Product • Now expect to own 50 corporate • Endless aisle and same day delivery • Continue to expand this program stores by the end of FY19 have launched and will continue to in H2 FY19 and beyond roll out across the balance of the • 26 TAF stores acq
Slide 15: Growth plan update
Growth plan update 4 New Stores 5 International • A further 18 stores to open in H2 • Considerable market investigation and FY19 due diligence conducted on specific opportunities in Singapore and other • Platypus Pitt St Superstore Asian markets scheduled to open in Q4 • As an outcome of this discip
Slide 16: Dividends, Trading Update & Outlook
vidends, jing Update _ + Outlook
Slide 17: Dividends, Trading update and FY19 outlook
Dividends, Trading update and FY19 outlook • Accent Group has announced an interim ordinary dividend of 4.50 cents per share, fully franked, payable on 21 March 2019 to shareholders registered on 07 March 2019. • On the basis of strong profit growth and operating cashflow in H1, and expectations of
Slide 18: Appendix
18
Slide 19: Store network and distribution agreements
Store network and distribution agreements Dr Podium / Store Network (a) TAF Platypus Skechers Vans Timberland Merrell Hype Sub Type Trybe Total Martens Other Stores at end of FY18 143 98 81 17 7 2 22 64 12 446 FY2019 H1 Stores at beginning of year 143 98 81 17 7 2 22 64 12 446 Stores opened 2 9 8 6
Slide 20: Balance Sheet
Balance Sheet Balance Sheet ($000's) Dec-18 Dec-17 Commentary Cash and cash equivalents 40,089 50,895 Trade and other receivables 22,992 20,433 • Net Debt $31m down from $50m at December 2017 Inventories 126,148 106,197 • Cash and cash equivalents down from $50.9m to $40.1m Property, plant and equip
Slide 21: Cash Flow
Cash Flow Cash Flow ($000's) Dec-18 Dec-17 Commentary EBITDA 61,260 49,669 • 59% increase in operating cash flow vs. last year Change in working capital 5,523 1,460 • Positive net cash flow Net interest and finance costs paid (2,261) (1,870) Income tax paid (18,584) (14,871) • Increase in investing
Slide 22: Earnings and dividends per share
Earnings and dividends per share % $000's H1 FY19 H1 FY18 Change Diluted Earnings Per Share Reported Net Profit After Tax 32,159 25,260 27.3% Non-controlling interest (13) 39 NPAT used in the calculation of the 32,146 25,299 27.1% EPS Weighted average number of 565,313 533,374 6.0% shares (in thousa
Slide 23: About Accent Group Limited
About Accent Group Limited Accent Group Limited (AX1) is a regional leader in the retail and distribution sectors of performance and lifestyle footwear, with over 465 stores across 10 different retail banners and exclusive distribution rights for 12 international brands across Australia and New Zeal
Slide 24: Notice And Disclaimer
Notice And Disclaimer This presentation contains summary information about the Accent Group Limited which is current as at the date of this presentation. This presentation contains certain forward-looking statements, including indications of, and guidance on, future earnings and financial position a