City Chic Collective Limited · ASX:CCX
City Chic Collective — FY2021 Earnings Presentation
32 slides from City Chic Collective's earnings presentation, Aug 26, 2021
Slide 1: FY21 Results
Od fi city chic collective LEADING A WORLD OF CURVES FY21 RESULTS 26 August 2021
Slide 2: Contents
CONTENTS FY21 Result Overview Business Overview and Strategy FY21 Financial Review FY22 Update and Outlook Phil Ryan, CEO Munraj Dhaliwal, CFO city chic collective
Slide 3: FY21 Result Overview
FY21 RESULT OVERVIEW
Slide 4: FY21 Result Highlights
FY21 RESULT HIGHLIGHTS $258m 73% 107m 58.1m Global Sales Online Sales Australia, New Zealand, USA, Canada, UK, Europe, Middle East Penetration2 Active Customers? Website TrafficS 407k Net New Customers 68% YoY Growth 32.9% 31.6% 44% _— = . (e) Top-line Sales Comp Sales Sales Revenue $258.5m 1.07m 58
Slide 5: Business Overview and Strategy
Entry into the UK market with acquisition of Evans; integration Launched new marketplace partnerships including Next (Uk), complete and growth strategy launched Freemans (UK), Curvissa (UK) & Hudson's Bay Company (Canada) i. “aE Implemented strategy to re-engage the Avenue customer base and drive ma
Slide 6: Sales Performance by Channel & Region
city chic collective } SALES PERFORMANCE BY CHANNEL & REGION REVENUE BY CHANNEL - Se oe 2 _ Online Website 184.6 55.6% 64.5% 37.5% 91 9.2 Stores 67.0 11.2% 1.4% 12.1% Pe Marketplace 45 (44.0%) (37.7%) NA 55.6 Wholesale 2.4 (68.5%) (66.1%) REVENUE BY REGION 144.5 27.1% © 27.3% © 32.2% 26 Americas 996
Slide 7: Global Customer Base Growth
GLOBAL CUSTOMER BASE GROWTH Customer Numbers! ‘000 385 +61% Growth 1,070 +72% Growth 801 663 515 Jun-19 Dec-19 Jun-20, Dec-20 Jun-21 Active customers increased from 663k to 1,070k in the last 12 months representing a 61% increase Active customer growth in all regions; includes Avenue and Evans custo
Slide 8: Financial Performance
FINANCIAL PERFORMANCE Track record of strong consistent sales and earnings growth SALES GROWTH EBITDA GROWTH EBIT GROWTH Sales Revenue $m Underlying EBITDA’ $m Underlying EBIT' $m $258.5 $42.4 $36.0 $194.5 Hone $19.1 1 $26.5 $131.9 E ss0.7 ! $24.9 1 1 q $61, . $16.0 s104.9 $19.1 FYI8 FYI9 FY20 FYI8
Slide 9: Business Overview and Strategy
BUSINESS OVERVIEW AND STRATEGY
Slide 10: World of Curves
World of Curves THE DESTINATION FOR HER EVERY LIFESTYLE NEED OUR STRATE! ital and GLOBAL PLUS-SIZE MARKET GLOBAL DIGITAL STORE FRONTS << GLOBAL PRODUCT RANGE Global Plus-size Customer city chic avenue Sk+ 15+ ELSES Veet Saag EVANS nayabi STYLES BRANDS? fashion, youth, conversative, intimates & Partn
Slide 11: Avenue CCX
avenue CCX Slips § Creeves FOXaROYAL city Chie ca CLOUDWALKERS®
Slide 12: Customer-Centric Operating Model
CUSTOMER-CENTRIC OPERATING MODEL Nimble operating model; respond quickly to changes in demand @ Geographically city chic collective Strong engagement Highly engaged and Omni-channel through social growing customer strategy; multiple media and base touchpoints World of Curves 2 S Cae) © Long-standing
Slide 13: Global Business Overview
GLOBAL BUSINESS OVERVIEW AMERICAS Wholesale, 2% Marketplace, 4% $100m Revenue Online Websites, 94% * 522k Active Customers! + 32m Annual Traffic? + A$180 avg Annual Spend? (note: average USD FX rate of 0.74 in FY21) EMEA Pre-Acquisition: * Revenue: A$46m + Traffic: 19m Wholesale, 6% Marketplace, 1%
Slide 14: Global Plus-Size Landscape
GLOBAL PLUS-SIZE LANDSCAPE Currently address US$100bn+ of the US$180bn! total global plus size market Entry into US$45bn European market in FY22 with Navabi acquisition? ANZ, $2bn US, $49bn. GROWTH RoW, $726n Qy UK, $7bn Canada, $5bn EU, $45bn ONLINE City Chic’s current penetration by product stream
Slide 15: Current Brand Portfolio & Strategic Opportunity
CURRENT BRAND PORTFOLIO & STRATEGIC OPPORTUNITY Opportunity to address global plus-size market with our portfolio of brands OUR BRANDS AUSTRALIA & NEW ZEALAND UNITED STATES OF AMERICA UNITED KINGDOM EUROPE city chic collective FASHION / YOUTH city chic CCX Greater Share of Wallet Market Share Expans
Slide 16: Key Initiatives to Lead a World of Curves
KEY INITIATIVES TO LEAD A WORLD OF CURVES MARKET SHARE EXPANSION IN THE USA MARKET SHARE EXPANSION IN THE UK MARKET ENTRY FOR ‘CONSERVATIVE VALUE’ IN ANZ MARKET ENTRY IN EUROPE EXPAND FASHION / YOUTH OFFERING GLOBALLY Significant market share opportunity in the US$49bn! market Cross-selling of City
Slide 17: An Update on Evans
AN UPDATE ON EVANS ACQUISITION HIGHLIGHTS Completed acquisition of UK-based Evans eCommerce and wholesale business on 23 Dec 20 for £22.7m (A$40.2m) Scale and profitability in new market UK plus-size market valued at US$7bn! Platform to expand further in the region £23m annual online revenue? £3m an
Slide 18: Introducing Navabi
INTRODUCING navabi ACQUISITION UPDATE * Continued deliveries of inventory order book, plus City Chic and Avenue product in transit ACQUISITION HIGHLIGHTS * Website build and integration well progressed + Established eCommerce retailer with a strong position in the significant with expected completio
Slide 19: Global Marketplace Partnerships
GLOBAL MARKETPLACE PARTNERSHIPS! Partnerships in new and existing regions form a part of our customer acquisition strategy; leveraging infrastructure to profitably bring awareness to our global brands as trends continue online Established? New in 2H FY21 1H FY22 THE ICONIC ebay xmacys NORDSTROM SON'
Slide 20: FY21 Financial Review
FY21 FINANCIAL REVIEW
Slide 21: Financial Performance
city chic collective FINANCIAL PERFORMANCE |A$m:_Continuing Operations Sales Revenue Revenue Growth vs PCP Comparable Sales Growth] Online % of Sales Revenue Gross Trading Margin? Gross Trading Margin % Fulfilment costs* Employee Benefits Expense Advertising Expenses Marketing Expenses Rent (Pre-AAS
Slide 22: Impacts on FY21 Sales and Costs
IMPACTS ON FY21 SALES AND COSTS TOPLINE SALES vs COMPARABLE SALES iS) © © iS) city chic collective } Additional 15 weeks contribution from Avenue vs FY20! US marketplace and wholesale partner sales temporarily lost while partners managed through the pandemic; $8.8m fall in partner sales vs FY20 14 h
Slide 23: Cash Flow
CASH FLOW * Normalised Operating Cash Flow of $24.2m for FY21 vs $20.9m in FY20. Net normalisation adjustments of $9.1m to the FY21 Statutory Operating Cash Flow A$m: Continuin rations FY19 ByZ FY21 includes: - Reclassification of rental payments to financing cash flows in relation to Re fi ) eceipt
Slide 24: Financial Position
FINANCIAL POSITION A$m, Cash and cash equivalents Inventories Other Current Assets Property, plant, equipment Right-of-use assets Intangibles Deferred tax asset Non-current Assets TOTAL ASSETS. Trade and other payables Provisions and Other Borrowings Lease liabilities Current liabilities Borrowings
Slide 25: FY22 Update and Outlook
FY22 UPDATE AND OUTLOOK
Slide 26: FY22 Update and Outlook
FY22 UPDATE AND OUTLOOK » In the first eight weeks of FY22, City Chic is pleased to advise that the company has continued to deliver strong positive top-line and comparable sales growth + Avenue continues to trade strongly, materially above pre-acquisition levels + Evans has rebounded strongly and i
Slide 27: Appendix
APPENDIX
Slide 28: Impact of AASB16
IMPACT OF AASB16 AASBI6 adopted from 1 July 2019 Profit & Loss (Continuing Operations!) Sales 2585 - 2585 1945 G40 32.9% Conte oF wane Cap - (98.7) (822) 165)—(20.1% Gross Trading Profit 159.8 - 159.8 123 474 42.2% Cost of Doing Business 2g) 8) (120.7) (858) G16) - 36.8% EBITDA 47.0 (7.8) 391 265 15
Slide 29: Earnings Reconciliation
EARNINGS RECONCILIATION A$ million FY20 FY21 FY20 FY21 FY20 FY21 Underlying EBITDA 26.5 424 - - 26.5 424 Depreciation & amortisation (8.8) (6.4) - - (6.8) (6.4) Underlying EBIT 20.7 36.0 - - 20.7 36.0 Net Interest expense! (0.5) (0.4) - - (0.5) (0.4) Underlying NPBT 20.1 35.6 - - 20.1 35.6 Taxation
Slide 30: Ethical Trade Update
ETHICAL TRADE UPDATE We welcome the new opportunities and recognise the challenges that come with the growth of brands and the diversification of our supply chain. Our goal is to work together with all our global partners for a more positive impact to people and planet. Our FY21 Highlights Published
Slide 31: Store
city chic collective STORE + 89 stores as at the end of June 2021 + Portfolio rotation to newer fit-outs in FY21: 12 new stores opened, 16 closures; 3 relocation to a larger format site + 7 larger format flagship stores with average footprint of ¢.220m? + 21 newer stores in the ‘Gold’ look design an
Slide 32: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER This presentation has been prepared by City Chic Collective Limited (the “Company”). It contains general background information about the Company's activities and does not purport to be complete. It should be read in conjunction with the Company's other periodic and con