Lovisa Holdings Ltd. · ASX:LOV
Lovisa — Shareholder Meeting (November 2015)
22 slides from Lovisa's shareholder meeting presentation, November 2015
Slide 1: Lovisa Holdings Limited 2015 AGM
Lovisa Holdings Limited 2015 AGM Paul Cave Chairman
Slide 2: Board of Directors
BOARD OF DIRECTORS Paul Cave, Chairman Tracey Blundy, Non-executive Director Shane Fallscheer, CEO and Executive Director
Slide 3: FY15 Highlights
FY15 HIGHLIGHTS • 55 new stores in five countries, closing the year with 239 stores • Sales of $134.3m, an increase of 27.1% over prior year • Earnings of $17.6m, compared to $7.7m in the prior year, and $1.2m ahead of prospectus forecast • A successful listing on the ASX in December 2014.
Slide 4: Dividends & Market Capitalisation
DIVIDENDS & MARKET CAPITALISATION • Shareholders received fully franked dividends of 10.7c per share, a yield of 5.4% on the IPO list price • This was in line with prospectus forecast • Share price yesterday closed at $3.21, a 61% increase on listing price. • With the share price closing yesterday a
Slide 5: Corporate Governance
CORPORATE GOVERNANCE The Board has adopted a Corporate Governance Charter, Code of Conduct and a comprehensive set of Board policies regarding; • independence and conflicts of interest • risk management • continuous disclosure • securities trading • an audit committee charter to assist in the discha
Slide 6: Corporate Governance: Matters reserved for the Board
CORPORATE GOVERNANCE Matters reserved for the Board • appointment of a Chair • appointment and removal of the CEO • appointment of directors to fill a vacancy or as additional Director • establishment of Board committees, their membership and delegated authorities • approval of dividends • approval
Slide 7: Lovisa Holdings Limited 2015 AGM - Shane Fallscheer
Lovisa Holdings Limited 2015 AGM Shane Fallscheer Chief Executive Officer
Slide 8: FY15 Highlights
FY15 HIGHLIGHTS • Revenue increased by 27.1% to $134.3m • GM increased from 76.0% to 77.1% • Gross profit increased by 28.7% to $103.5m, and was in line with prospectus • EBIT (adjusted for exceptionals related to the IPO) of $24.8m was ahead of prospectus forecast by $1.3m. • NPAT of $17.6m was $1.
Slide 9: FY15 Highlights: Cost of doing business
FY15 HIGHLIGHTS Cost of doing business reduced from 62% to 54% due to; • Closure of low turnover stores in AUS • Addition of stores overseas that generally enjoy a lower cost of doing business • Operational leverage of the Support Centre team in Melbourne
Slide 10: FY15 Highlights: Store growth
FY15 HIGHLIGHTS FY 15 commenced with 210 stores - Acquisition of 21 stores in SAF - Recently opened in our ninth country with a store in Oman
Slide 11: FY15 Highlights: Middle East growth
FY15 HIGHLIGHTS - Middle East has ongoing growth opportunities • Claires – 145 stores • Accessorize – 115 stores - Lovisa currently trades from 14 locations - Population of 45 million across our franchised territories
Slide 12: Stores at year end were 239
FY15 HIGHLIGHTS Stores at year end were 239
Slide 13: UK Expansion
UK EXPANSION • Over the last year Lovisa has conducted due diligence on a number of larger northern hemisphere markets • The board has now agreed to run a pilot program of 3-5 stores in the UK • We have been active in the market looking for the right opportunities • Our goal is to open these 3-5 sto
Slide 14: UK Expansion: Pilot objectives
UK EXPANSION • This pilot is to not just understand the sales potential but all other elements; Range suitability Price architecture Wage costs Build out costs • Our two main competitors have Claires – 390 stores Accessorize – 274 stores
Slide 15: UK Expansion: First lease in Leeds
UK EXPANSION • Our first lease has been agreed in the “Trinity Centre” Leeds • This store will open week 1 December • We have chosen to run the pilot outside of London
Slide 16: UK Expansion
UK EXPANSION • Some peoples perception of the UK high street
Slide 17: UK Expansion: Population of Leeds
UK EXPANSION Population of Leeds is 750,000, this is 2x Canberra
Slide 18: UK Expansion: Next stores and capex
UK EXPANSION • Negotiations are well advanced to open another 2 to 4 stores in the UK by end Q3 FY16 • Capex for the pilot program in FY16 of around $1m and OPEX of $500k • We will update you on our progress in the half year roadshow
Slide 19: Resolutions
Lovisa Holdings Limited 2015 AGM Resolutions
Slide 20: Lovisa AGM – Item 1
Lovisa AGM – Item 1 Item 1 – To receive and consider the Financial Report of the Company, and the Directors Report and the Auditors Report for the year ended 28 June 2015
Slide 21: Lovisa AGM – Proxy Votes: Remuneration Report
Lovisa AGM – Proxy Votes Item 2 – Adoption of the Remuneration Report For 28,312,571 Open 120,624 Against 52,350 Votes available to the Chairman 28,485,545 As a % of issued share capital 27.13% Abstain 26,789
Slide 22: Lovisa AGM – Proxy Votes: Appointment of Auditor
Lovisa AGM – Proxy Votes Item 4 – Appointment of Auditor For 30,579,715 Open 120,624 Against 0 Votes available to the Chairman 30,700,339 As a % of issued share capital 29.24% Abstain 0
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