Nick Scali Limited · ASX:NCK
Nick Scali — Macquarie Investor Conference 2021
18 slides from Nick Scali's conference presentation, May 5, 2021
Slide 1: Macquarie Investor Conference Presentation
For personal use only 5 MAY 2021 Nick Scali Limited (NCK.ASX) Macquarie Investor Conference Presentation
Slide 2: Nick Scali Overview
For personal use only Nick Scali Overview
Slide 3: Introduction to Nick Scali
Introduction to Nick Scali For personal use only Founded in 1962, Nick Scali is a mid-premium direct to consumer retailer of lounges and household furniture People People • 550 Staff • 520 AU staff • 30 NZ staff Infrastructure Operations • 61 Showrooms • $338m+ Revenue1 • 6 Distribution Centres • $6
Slide 4: Nick Scali Business Model Summary
Nick Scali Business Model Summary For personal use only Nick Scali maintains a high margin, low inventory model when compared to other retail & consumer peers Key characteristics of Nick Scali’s business model Favourable working capital profile given deposit received from customers prior to suppli
Slide 5: Historical operating margins & profitability
Historical operating margins & profitability For personal use only Nick Scali’s business model has allowed it to successfully drive sustainable expansion of both revenue & earnings over the long term 350 64.00% 300 63.00% 250 10.5% 62.00% Revenue CAGR RHS Margin (%) (FY10A - FY20A) LHS (A$m) 200 61.
Slide 6: Industry leading margins
Industry leading margins For personal use only Sustained margin expansion has resulted in industry leading homewares & furniture operating margins EBITDA margins1 40% 35% 30% 25% 20% Peer average of 16% 15% 10% 5% 0% Nick Scali ANZ Average US Average Online pure-play Notes 1. EBITDA margins presente
Slide 7: 1H FY21 Results Recap
For personal use only 1H FY21 Results Recap
Slide 8: Results Overview
Results Overview For personal use only Summary results for 1H FY21 presented below 1H FY21 Highlights • Written sales orders and revenue at record levels, with 58% growth in like- • Sales orders: $191.1m (PY: $126.1m) for-like sales orders and 24% sales revenue growth • Revenue: $171.1m (PY: $137.5m
Slide 9: Trading Update
For personal use only Trading Update
Slide 10: Trading Update
Trading Update For personal use only Continued positive trading momentum through the March quarter and to the end of April 2021 Trading Update Written Sales Order Growth (pcp %) As highlighted in the half year result on 4 February 2021, written 80% sales orders grew 52% in H1 FY21 70% — Trading re
Slide 11: Future Growth Opportunities
For personal use only Future Growth Opportunities
Slide 12: Future Growth
Future Growth For personal use only Nick Scali has several levers to drive sustained revenue & earnings growth Organic growth initiatives 1 Expand the store network across Australia & New Zealand, initially targeting 86 showrooms across both Expand the store markets network Recent store openings
Slide 13: Store Network
Store Network For personal use only Opportunity to significantly grow the store network, targeting at least 86 showrooms across Australia and New Zealand 100 Nick Scali showrooms At 4 May 2021 Australia 57 90 New Zealand 4 80 40% future 25 growth Total 61 70 identified in store network 60 50 Two new
Slide 14: Property
Property For personal use only Property portfolio of 37,000sqm which is expected to be further enhanced via expansion and redevelopment opportunities Location State/ Date acquired Site area NLA (sqm) Territory (sqm) Commentary Auburn NSW December 2017 4,763 5,469 37,000sqm of property held by the
Slide 15: Online & Digital Offering
Online & Digital Offering For personal use only Online remains an exciting growth opportunity for Nick Scali to capitalise on consumers increased propensity to engage digitally Online Commentary Online sales offering launched in April 2020 — Online channel supported by large-scale distribution inf
Slide 16: Outlook
For personal use only Outlook
Slide 17: Outlook
Outlook For personal use only NPAT expected to be in the range of $78-80m, an increase of approximately 85-90% versus the previous financial year Store Network The company expects to open a total of 3 new showrooms in FY21, one located in Victoria, one in NSW and one new showroom in New Zealand —
Slide 18: Important notice and Disclaimer
Important notice and Disclaimer For personal use only Nick Scali Limited (the “Company”) advises that the information in this presentation contains general background information about the Company’s activities as at the date of the presentation. It is information given in summary form and is based o