Adairs Ltd. · ASX:ADH
Adairs — Corporate Update (April 2016)
18 slides from Adairs's corporate update, Apr 27, 2016
Slide 1: Store visits - Melbourne
Store visits - Melbourne For personal use only 27 APRIL 2016 Adairs Fountain Gate Homemaker Store
Slide 2: Business overview
Business overview Adairs is a differentiated, vertically integrated retailer delivering strong financial results For personal use only Adairs is a leading specialty retailer of homewares and home furnishings in Australia 143 stores Australia-wide across five different physical formats being Adai
Slide 3: 143 stores around Australia
143 stores around Australia For personal use only 1 88 - Adairs Stores (incl. Outlet) 40 - Homemaker Stores 18 7 2 10 - Adairs Kids Stores 11 5 5 - UHR Stores (inc. Myer concessions) 5 1 DC and HQ 14 3 25 1 27 5 13 4 1 1H16 stores refurbished 1H16 new stores Adairs Kids - Rhodes Adairs Kids – Belros
Slide 4: Differentiated customer proposition
Differentiated customer proposition Fashion, quality and value, coupled with superior service For personal use only Price Features of Adairs’ marketplace Low High Highest Adairs targets mid to upper demographic customers value who are house proud and passionate about design and Adairs market posit
Slide 5: Differentiated product offering
Differentiated product offering Continued product and range differentiation to drive above-market LFL sales growth For personal use only STAPLE REVENUE FASHION AND DECORATOR REVENUE PRODUCT AND RANGE A$91M IN FY15 (43%) A$121M IN FY15 (57%) DIFFERENTIATION STRATEGY Fashion and Decorator product is
Slide 6: A multi format store portfolio - Adairs
A multi format store portfolio CORE STORE FORMAT - ADAIRS For personal use only Chadstone Shopping Centre Store 81 Avg. Capex1 $300k Numbers Primary store format offering the Staple range Description and a select offering from the Fashion and Avg. Inventory $110k Decorator categories Average Size ~1
Slide 7: A multi format store portfolio - Adairs Homemaker
A multi format store portfolio CORE STORE FORMAT – ADAIRS HOMEMAKER For personal use only Store 40 Avg. Capex1 $520k Numbers Larger store format with an expanded range of Description Fashion and Decorator products, including home Avg. Inventory $185k furnishings, homewares and furniture Average Size
Slide 8: A multi format store portfolio - Adairs Kids
A multi format store portfolio EMERGING STORE FORMAT – ADAIRS KIDS For personal use only Store 10 Avg. Capex1 $280k Numbers Targets parents and carers for baby, child and Description pre-teens. Offering Staple and Fashion and Avg. Inventory $60k Decorator products for the child's bedroom Shopping ce
Slide 9: A multi format store portfolio - Urban Home Republic
A multi format store portfolio EMERGING STORE FORMAT – URBAN HOME REPUBLIC For personal use only UHR Highpoint Concession Store 1 5 Avg. Capex2 $300k Numbers Contemporary fashion home furnishings for Description the home decorator demographic, with a Avg. Inventory $90k narrow selection from the Sta
Slide 10: State of the art Distribution Centre - Keysborough DC
State of the art Distribution Centre Keysborough DC For personal use only 2 6,679 m facility with 10m roof spanning height and Total product units despatched Size Units Dispatched large external canopy area. (estimated) for FY16: 5.6 million 4 internal recessed loading docks provides container sched
Slide 11: State of the art Distribution Centre - Scoresby DC
State of the art Distribution Centre Scoresby DC For personal use only 2 5,500m facility with large external canopy and 3 Total product units despatched Size Units Dispatched loading docks. (estimated) for FY16: 1.6 million Full product scanning throughout the Caters for all Furniture product and so
Slide 12: State of the art Distribution Centre - Ongoing Initiatives
State of the art Distribution Centre Ongoing Initiatives For personal use only Moved to nightly product replenishment to provide increased efficiency and cater for growth (weekdays) Increase the level of cross docked product (carton and labelled by store) direct into Toll transport hubs to minim
Slide 13: A comparison of peers
A comparison of peers 1H16 LFL sales For personal use only 1H15 LFL sales 1H14 LFL sales Source: Publicly available company data 12
Slide 14: Delivering strong financial performance
… Delivering strong financial performance Adairs has delivered strong financial performance as a result of the strategies successfully implemented by management over the last 5+ years For personal use only LFL SALES GROWTH (%) REVENUE ($M) Number of stores 122 126 128 1351 1461 AVG. TRANSACTIONS PER
Slide 15: Multiple growth strategies
Multiple growth strategies Adairs’ key strategies will drive continued growth in revenue and EBIT For personal use only CONTINUED PRODUCT AND RANGE DIFFERENTIATION AUSTRALIAN STORE ROLLOUT • Continued product and range differentiation to drive above market LFL • Targeting 8–12 ‘net new’ store openin
Slide 16: Adairs FY16 Outlook
Adairs FY16 Outlook Strong first half performance resulting in upward revision to guidance For personal use only REVISED FY16 GUIDANCE COMMENTARY Prospectus Guidance • FY16 forecast revised upwards sales and earnings Sales $231m $245 - $255m • Cycling higher LFL sales in 2H (2H15 +21.5%) GP% 61.50%
Slide 17: Thank you
For personal use only 16 Thank you
Slide 18: Disclaimer
Disclaimer Some of the information contained in this presentation contains “forward-looking statements” which may not directly or For personal use only exclusively relate to historical facts. These forward-looking statements reflect Adairs Limited current intentions, plans, expectations, assumptions