City Chic Collective Limited · ASX:CCX
City Chic Collective — FY2020 Earnings Presentation
25 slides from City Chic Collective's earnings presentation, Aug 27, 2020
Slide 1: Leading a World of Curves: FY20 Results
city chic collective LEADING A WORLD OF CURVES FY20 RESULTS 27 August 2020
Slide 2: FY20 Result Highlights
FY20 RESULT HIGHLIGHTS $194m 31.0% Global Sales Top Line Sales Growth 0.4% 663k 65% Comp Sales! Growth Active Customers? Online Sales Growth of 278k Penetration® $26.5m 6.6% Underlying Underlying EBITDA EBITDA‘ Growth 13.6% Underlying EBITDA Margin Statutory Profit Before Tax (Continuing Operations®
Slide 3: Contents
CONTENTS @ <ity chic Collective 2) FY20 Results Overview 3) FY20 Financials Review (4 } Outlook Phil Ryan, CEO Munraj Dhaliwal, CFO
Slide 4: City Chic Collective
CITY CHIC COLLECTIVE
Slide 5: Outstanding plus size brands, global omni-channel retailer
OUTSTANDING PLUS SIZE GLOBAL OMNI-CHANNEL EXPANDING DOMESTIC AND BRANDS RETAILER city chic Senne ctx * Stores avenue * Marketplace! Slgps § Crarves FOX. PAL Wholesale? Being where she wants, when she wants us Leading position in an underserviced segment Strategic priorities: scaling g Digital custom
Slide 6: Customer-centric operating model
CUSTOMER- CENTRIC OPERATING MODEL OUR CUSTOMERS ARE AT THE HEART OF EVERYTHING WE 1. Defined as transacted in last 12 months. Includes Avenue and Hips & PB Curves customers who have transacted since acquisition 6
Slide 7: Global plus-size market overview
GLOBAL PLUS-SIZE MARKET OVERVIEW f ( lec | ve Australia and New Zealand women’s plus-size apparel market of approximately ~ A$ibn! v Leadership position with significant share in Fashion / Youth. Opportunity in Everyday Fashion -~ mr 7 Substantial market opportunity for City Chic . . F Global market
Slide 8: A global collective of plus-size brands
A GLOBAL COLLECTIVE OF PLUS-SIZE BRAND city chic Segment Fashion Forward Age Price 7 ms Point Mid/High Online Stores channel Marketplace Partnerships Region ANZ, USA, EU, UK city chic collective CCX Youth Casual 18-25 Mid/High Hips § Ceerves FOXaROYAL Playwear & Intimates Lifestyle 18-39 Mid-market
Slide 9: Avenue
avenue QC) Acquired e-commerce assets of US plus-size retailer Avenue in October 2019 for US$16.5m QO) Independent US website targeting everyday fashion, with mid-market price point QC) Met City Chic’s key strategic objectives of US customer acquisition and expansion of product offering FY20 Update
Slide 10: Catherines
CATHERINES + In July 2020, City Chic was nominated as Stalking Horse Bidder for Catherines’ eCommerce assets! * Catherines is a women’s apparel, intimates, footwear and accessories retail brand targeting the value-conscious, mature plus-size customer * Founded in 1960 in Memphis, Tennessee, with hig
Slide 11: FY20 Results Overview
FY20 RESULTS OVERVIEW
Slide 12: Trading through COVID-19
TRADING THROUGH COVID-19 * Leading omni-channel business with early online presence (since 2008) * Two-thirds of total revenue from online; offsets temporary stores closures * Global operations traded profitably during COVID-19 restrictions * Relatively low fixed cost base, early action to realise c
Slide 13: FY20 Results & Operational Highlights
FY20 RESULTS & OPERATIONAL HIGHLIG@® — Financial Highlights Operational Highlights FY20 sales revenue of $194.5m, representing 31.0% YoY total sales growth and 0.4% comparable sales growth! Expanded online Acquisition and offering and launch of integration of Avenue Fox & Royal (Hips & Gross margin
Slide 14: Revenue by Channel
REVENUE BY CHANNEL * Online represents 65% of total sales’ - Active customer base and online sales $m FY18 FY1I9 FY20 growth globally - Avenue contribution represents 37 weeks Stores 78.1 746 60.2 post acquisition Online Website 41.2 556 1187 + Store revenue flat in 1H, and impacted heavily by COVID
Slide 15: FY20 Financials Review
FY20 FINANCIALS REVIEW
Slide 16: Income statement summary
• • • 148.4 194.5 12.6% 31.0% • 12.2% 0.4% 85.9 93.5 • 57.8% 48.1% (61.0) (67.0) 41.3% 34.4% 24.9 26.5 • 16.8% 13.6% 21.5% 6.6% • 14.3 9.2 1.7 0.5 16.0 9.7 •
Slide 17: Cash flow summary
• 163.6 209.0 (166.1) (181.5) 0.6 2.2 (1.9) (4.4) (3.8) 25.2 (8.1) (5.5) 31.1 - - (25.7) • (2.5) - 20.5 (31.2) • - (11.6) - 17.5 (9.6) (2.9) (22.5) 3.0 • (5.8) (2.9) • - 1.1 (5.8) (1.8)
Slide 18: Balance sheet
• • 23.2 14.9 21.4 19.4 36.8 38.1 5.9 10.2 7.3 48.5 61.9 66.8 • 9.3 10.6 8.9 - 30.4 22.3 15.2 39.0 39.2 12.1 11.0 8.6 36.5 91.1 79.0 85.0 153.0 145.8 • 25.5 37.9 37.5 11.4 11.1 9.0 • - 12.5 - - 12.1 9.2 37.0 73.7 55.7 - 5.0 17.5 3.8 0.3 0.8 - 22.6 18.0 • 3.8 27.9 36.3 40.7 101.6 92.0 44.3 51.4 53.9
Slide 19: Outlook
OUTLOOK
Slide 20: FY21 Update and Outlook
FY21 UPDATE AND OUTLOOK Positive | Working towards ¢ a s comparable sales | the successful a Leverage product hy Grow customer Well capitalised to growth year to closing of a across global ] base across pursue multiple date and Avenue Catherines BI online footprint to , segments and avenues for cont
Slide 21: Appendix
APPENDIX
Slide 22: Impact of AASB 16
IMPACT OF AASB 16 AASBI6 adopted from 1 July 2019 (no adjustment for prior year comparatives) Profit & Loss (Continuing Operations!) FY20. FY20 A$ million Statutory | AASB 16 Underlying | Underlying | Underlying | Variance | Variance Post AASBI6| Impact | Pre AASBIG |Adjustments’ Pre AASBI6 | Pre AA
Slide 23: Earnings Reconciliation
EARNINGS RECONCILIATION Pee FYI9 FY20 Underlying EBITDA 24.9 26.5 Depreciation & amortisation G9) G8) - - G9) G8) Underlying EBIT 20.9 20.7 - - 20.9 207 Net Interest expense! 04 (5) - - 04 (05) Underlying NPBT 213 201 - - a3 201 Release of USA store exit cost provision 03 - - - 03 = Onerous head off
Slide 24: Ethical Trade Update
ETHICAL TRADE UPDATE, “As we navigate through this global pandemic, we continue to place great importance on all our ethical trade policies and responsible sourcing practices” Our COVID-19 Fashion Commitment 1. Support workers’ wages by honoring supplier commitments 2, Identify and support the worke
Slide 25: 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 current as at the date of the presentation. It is information given in summary form and does not purport to be