Lovisa Holdings Ltd. · ASX:LOV
Lovisa — Shareholder Meeting (October 2019)
16 slides from Lovisa's shareholder meeting presentation, Oct 29, 2019
Slide 1: Lovisa Holdings Limited 2019 Annual General Meeting
Lovisa Holdings Limited 2019 ANNUAL GENERAL MEETING
Slide 2: Welcome to the Annual General Meeting of Lovisa Holdings Limited
WELCOME TO THE ANNUAL GENERAL MEETING OF LOVISA HOLDINGS LIMITED James King Director 2
Slide 3: Board of Directors, Chief Financial Officer and Company Secretary
BOARD OF DIRECTORS CHIEF FINANCIAL OFFICER AND COMPANY SECRETARY 3
Slide 4: FY19 key results: NPAT, EBIT, revenue, stores, dividend
$37.0M NPAT UP 3.0% EBIT up 2.8% $52.5M REVENUE UP 15.3% 0.5% _ §250.3M TOTAL STORES XS K FINAL DIVIDEND 390 A | 15.0 ces NET INCREASE OF \ FULLY FRANKED 64 STORES ee x Aisa 4
Slide 5: Store numbers as at 30 June 2019
38 8 19 9 28 8 25 18 61 154 22 * Store numbers as at 30 June 2019 5
Slide 6: 2019 Annual General Meeting
2019 ANNUAL GENERAL MEETING Shane Fallscheer Managing Director 6
Slide 7: FY19 Full Year Overview
FY19 FULL YEAR OVERVIEW • EBIT up 2.8% to $52.5m • eCommerce trading in the Australian/New Zealand market since • Total sales up 15.3% and comparable store sales down 0.5% for October 2018 and UK/EU since July 2019, providing enhanced the full year customer interaction capability • Gross margin cont
Slide 8: Trading Performance - Sales
TRADING PERFORMANCE - SALES Total sales up 15.3% from continued global rollout 280 260 • Total Global Sales Revenue up 15.3% to $250.3m from 240 acceleration in store rollout 220 • Return to positive comparable store sales for 2H19, resulting 200 in full year being down 0.5% compared to -1.8% in 1H1
Slide 9: Trading Performance - Gross Margin
TRADING PERFORMANCE - GROSS MARGIN Gross margin increased to 80.5% Gross Margin % 90.0% Gross Margin at Constant Currency* 80.0% FY19 FY19 FY18 70.0% 60.0% Currency USD 0.76 0.75 0.75 50.0% Sales 250,282 250,282 217,010 40.0% 77.1% 74.0% 78.8% 80.0% 80.5% 30.0% Cost of Sales (48,873) (49,721) (43,37
Slide 10: Cost of Doing Business
COST OF DOING BUSINESS Continued investment in global rollout 60% CODB % Sales • Investment into the growth of the business continued with the 50% addition of a number of senior leadership roles into the structure during the year to lead both existing and new territories 40% • Acceleration of rollou
Slide 11: Balance Sheet and Cash Flow
BALANCE SHEET AND CASH FLOW Strong Balance Sheet with Significant Capacity Available To Fund Growth (A$000s) FY19 HY19 FY18 Net Cash 11,192 32,284 21,057 • Balance sheet continues to be strong, with investment in fitout and inventory Receivables 7,413 4,631 4,881 for new stores and e-commerce implem
Slide 12: Store Growth
STORE GROWTH International Rollout Accelerates with a Net Increase of 64 Stores Store number growth • Number of international stores growing with offshore territories now 61% of the store network Country FY19 FY18 Var • Net increase of 64 stores for the year, with 70 new stores Australia 154 151 3 o
Slide 13: Operational Update
OPERATIONAL UPDATE • We continue to focus on investment in people and processes to ensure we remain efficient as we grow and able to execute on our strategic plans • Investment made into a number of senior roles in the first half of the financial year to lead our key markets, as well as leasing team
Slide 14: Summary
SUMMARY • EBIT of $52.5m and 80.5% Gross Margin (80.1% on constant currency) • Comparable store sales down 0.5% for the year, with positive comparable store sales for the second half • Lift in margin benefiting from currency tailwinds and tight inventory and promotion management • Continued CODB inv
Slide 15: Trading Update and Outlook
TRADING UPDATE AND OUTLOOK • Trading since the end of the financial year has seen a continuation of the improvement seen in the second half, with comparable store sales for the 17 weeks to date of +2.3% • Currency headwinds have begun to have an impact and will continue to do so through FY20 as our
Slide 16: Forward-looking statements
Some of the information contained in this presentation 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 future events of Lovisa