Adairs Ltd. · ASX:ADH
Adairs — Shareholder Meeting (October 2022)
25 slides from Adairs's shareholder meeting presentation, Oct 21, 2022
Slide 1: Adairs Limited Annual General Meeting
Adairs Limited Annual General Meeting 21 October 2022
Slide 2: Brett Chenoweth, Chair
1 BRETT CHENOWETH CHAIR
Slide 3: Your Board
Your Board 2 Brett Chenoweth Kate Spargo Trent Peterson Kiera Grant (Chair) David MacLean Mark Ronan, MD&CEO Michael Cherubino Non-executive Directors Executive Directors Independent Company secretary: Fay Hatzis
Slide 4: Chair's Report
3 CHAIR’S REPORT
Slide 5: Group result – FY22
Group result – FY22 4 v FY22 v FY21 v FY20 v FY19 1 Total Sales $565 million +12.9% +45.1% +64.1% Online Sales $195.4 million +4.5% +57.3% +232.3% Gross Margin 59.6% -520bps -120bps +40bps Underlying EBIT2 -30.0% +38.2% +76.0% $76.4 million Total dividend 18.0 cps -5.0 cps +8.0 cps +3.5 cps Note 1.
Slide 6: Our share price, EPS and DPS
Our share price 5 Since its IPO in 2015 Adairs has delivered steady and Sales, earnings per share and dividends since IPO consistent growth in sales (+168%) and earnings per 600 40.0 share (+103%) and paid out almost $1.00 in dividends 35.0 Since IPO CAGR 500 Group Sales 15.1% 30.0 Earnings per shar
Slide 7: Managing Director & CEO's Report
MANAGING DIRECTOR & CEO’S REPORT
Slide 8: FY22 strategic outcomes
FY22 strategic outcomes 7 Progress made on our strategic priorities … including important sustainability commitments Adairs Linen Lovers Sustainability Report ► More than 1 million paid-up members (+32% in last 3 years) ► Inaugural Sustainability Report produced Adairs store growth continues Planet
Slide 9: FY22 builds on our history of steady and consistent growth
FY22 builds on our history of steady and consistent growth 8 Historic growth (since IPO) Future growth drivers and 5-year target The Adairs Group comprises three vertically integrated brands, all with Group Sales ($m, FY15-FY22) Group EBIT ($m, FY15-FY22) attractive economics, clear growth pathways
Slide 10: So how could we get to $1bn+ of sales in 5 years? (Adairs stores)
So how could we get to $1bn+ of sales in 5 years? 9 Let’s start with brand Adairs and the correlation of store floorspace, loyalty membership and sales Stores drive customer and loyalty growth Linen Lover memberships v Store floor space (GLA) ► Stores are where >80% of our loyalty membership (Linen
Slide 11: So how could we get to $1bn of sales in 5 years? (Linen Lovers)
So how could we get to $1bn of sales in 5 years? 10 … and loyalty drives sales Total Sales (Adairs brand) v Linen Lover memberships ► Linen Lover members account for 80%+ of Adairs brand sales 450 FY21 – they are our most engaged customer, shopping twice as often and 425 spending 50% more per shop t
Slide 12: So how could we get to $1bn of sales in 5 years? (Mocka)
So how could we get to $1bn of sales in 5 years? 11 Mocka’s growth will come from greater brand awareness in Australia and establishing a physical presence in time The Australian furniture market ► Mocka is a small player in a very large market ► Sales have grown 30-35% in 4 of the last 5 years – FY
Slide 13: So how could we get to $1bn of sales in 5 years? (Focus on Furniture)
So how could we get to $1bn of sales in 5 years? 12 Focus on Furniture’s growth will come from a national store rollout program, unpinned by an enhanced in-store experience ► Focus’s fundamentals are already strong Priority markets – high quality product and superior value proposition QLD – excellen
Slide 14: Business Update
Business Update 13 Trading results for the first 16 weeks of FY23 remain in line with plan and consistent with guidance Unaudited sales Balance sheet (first 16 weeks of 1H FY23) v FY22 ► Inventory management remains a priority Group total + 45.5% – Mocka inventory continues to decline Group (ex. Foc
Slide 15: Meeting Resolutions
14 MEETING RESOLUTIONS
Slide 16: 1. Annual Financial Report
15 1. Annual Financial Report “To receive and consider the Financial Report of the Company and its controlled entities and the Reports of the Directors and Auditor for the year ended 26 June 2022.”
Slide 17: 2a. Re-election of Director
16 2a. Re-election of Director “That Trent Peterson, being eligible, be re-elected as a Director of the Company.” Usable Votes and Proxies Received Votes / Proxies % of Eligible Votes Cast (excluding abstentions) For: 43,053,491 86.93% Open/Undirected (Chairman) 455,324 0.92% Open/Undirected (Other)
Slide 18: 2b. Election of Director
17 2b. Election of Director “That Kate Spargo, being eligible, be re-elected as a Director of the Company.” Usable Votes and Proxies Received Votes / Proxies % of Eligible Votes Cast (excluding abstentions) For: 49,365,321 97.69% Open/Undirected (Chairman) 453,610 0.90% Open/Undirected (Other) 242,3
Slide 19: 2c. Election of Director
18 2c. Election of Director “That Kiera Grant, being eligible, be re-elected as a Director of the Company.” Usable Votes and Proxies Received Votes / Proxies % of Eligible Votes Cast (excluding abstentions) For: 49,320,162 97.68% Open/Undirected (Chairman) 453,324 0.90% Open/Undirected (Other) 242,3
Slide 20: 3. Remuneration Report
19 3. Remuneration Report “That the Remuneration Report for the year ended 26 June 2022 be adopted.” Usable Votes and Proxies Received Votes / Proxies % of Eligible Votes Cast (excluding abstentions) For: 39,675,020 92.45% Open/Undirected (Chairman) 478,007 1.11% Open/Undirected (Other) 242,367 0.56
Slide 21: 4. Approval of long-term incentive grant of Performance Rights to Mark Ronan
20 4. Approval of long-term incentive grant of Performance Rights to Mark Ronan “That approval be given for all purposes, including ASX Listing Rule 10.14, for the grant of Performance Rights to Mark Ronan as his annual long-term incentive for the year ended 25 June 2023 on the terms described in th
Slide 22: 5. Approval of long-term incentive grant of Performance Rights to Michael Cherubino
21 5. Approval of long-term incentive grant of Performance Rights to Michael Cherubino “That approval be given for all purposes, including ASX Listing Rule 10.14, for the grant of Performance Rights to Michael Cherubino as his annual long-term incentive for the year ended 25 June 2023 on the terms d
Slide 23: 6. Approval of the financial assistance resolution
6. Approval of the financial assistance 22 resolution “That, for the purposes of section 260B(2) of the Corporations Act 2001 (Cth), approval is given for the financial assistance to be provided by Refocus Furniture Pty Ltd (ACN 634 288 298) and its subsidiaries from time to time in connection with
Slide 24: Meeting Closed
23 MEETING CLOSED
Slide 25: Important Notice and Disclaimer
24 Important Notice and Disclaimer The material in this presentation is general background information about Adairs Limited (ABN 50 147 375 451) (Adairs) and its activities current as at the date of the presentation. It is information given in summary form and does not purport to be complete. It sho