Adairs Ltd. · ASX:ADH

Adairs — Shareholder Meeting (November 2016)

23 slides from Adairs's shareholder meeting presentation, Nov 18, 2016

  1. Slide 1: Annual General Meeting

    ANNUAL GENERAL MEETING 18 NOVEMBER 2016 For personal use only

  2. Slide 2: Welcome to the Annual General Meeting of Adairs Limited

    Welcome to the Annual General Meeting of Adairs Limited For personal use only Michael Butler Chairman 1

  3. Slide 3: FY16 Results

    FY16 Results David MacLean For personal use only Managing Director 2

  4. Slide 4: FY16 pro forma results highlights

    FY16 pro forma results highlights Outperformed FY16 EBIT Prospectus forecast and our guidance For personal use only LFL sales Sales Update photo $247.4m 11.7% up 17.3% Cycling +21.6% pcp Gross profit margin CODB 43.1% of sales 61.0% down from 44.1% Full Year EBIT NPAT Dividend $39.2m $26.1m 11.5cps

  5. Slide 5: A track record of delivery

    A track record of delivery Adairs has delivered strong financial performance as a result of the strategies For personal use only successfully implemented by management over the last 5+ years LFL SALES GROWTH (%) REVENUE ($M) Number of Stores GROSS MARGIN (%) EBIT ($M) EBIT Margin Note: Based on the

  6. Slide 6: FY17 Trading & Strategy Update

    FY17 Trading & Strategy Update For personal use only Mark Ronan COO & CEO Elect 5

  7. Slide 7: Trading over first four months of FY17

    Trading over first four months of FY17 Poor execution on fashion linen slowed growth For personal use only • First four months trading of FY17 (Jul-Oct 16) was below company expectations with flat like for like sales. • Cycled exceptionally strong LFL in YTD pcp (~+20%) • Trading softness heavily bi

  8. Slide 8: Trading over first four months of FY17

    Trading over first four months of FY17 Poor execution on fashion linen slowed growth For personal use only • Online sales (approx. 8% of sales) grew at 15% – below company expectations due to the same product issues and a temporary pull-back in online marketing due to implementation phase of our new

  9. Slide 9: Return to Growth 2H FY17

    Return to Growth 2H FY17 Business is in good shape to return to growth in H2 FY17 For personal use only • Finished October with a ‘clean’ inventory position • Non-bedlinen product categories, including Adairs’ expansion ‘decorator’ categories, have performed in line with expectations  Delivered +5%

  10. Slide 10: Strategy: Key growth drivers

    Strategy: Key growth drivers Consistent with our long term strategic initiatives, revenue growth has 6 controllable key drivers supported by excellence in customer service, retail execution and scalable For personal use only infrastructure. ‘Market growth’ now broadly in line with long term averages

  11. Slide 11: International omni store expansion (NZ)

    International omni store expansion (NZ)  First store in NZ opened on 20 October 2017 (Sylvia Park – a Homemaker format store in a For personal use only shopping centre)  Initial trading – albeit only first 4 weeks – has been strong  Next NZ store to open on the 8th of December  Two additional si

  12. Slide 12: FY17 updated outlook

    FY17 updated outlook For personal use only Revised FY17 guidance Previous FY17 guidance Year end store numbers 160-165 160-165 LFL sales growth ‘low’ single digits ‘mid’ single digits Total sales ($m) 265 - 275 275 - 285 Gross Margin 58.5% - 60.5% 60% - 62% 2 Capex ($m) 11 - 13 13.5 - 15 FY17 EBIT v

  13. Slide 13: Questions?

    For personal use only 12 Questions?

  14. Slide 14: Meeting Resolutions

    For personal use only Meeting Resolutions 13

  15. Slide 15: 1. Annual Financial Report

    1. Annual Financial Report For personal use only “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 3 July 2016.” 14

  16. Slide 16: 2a. Re-election of Trent Peterson

    2a. Re-election of Trent Peterson For personal use only “That Trent Peterson, being eligible, be re-elected as a Director of the Company.” Usable Proxies Received Proxies % of Total Capital For: 135,076,318 81.4% Against: 358,774 0.2% Abstained: 891,281 0.5% 15

  17. Slide 17: 2b. Re-election of Kate Spargo

    2b. Re-election of Kate Spargo For personal use only “That Kate Spargo, being eligible, be re-elected as a Director of the Company.” Usable Proxies Received Proxies % of Total Capital For: 127,992,353 77.2% Against: 8,072,739 4.9% Abstained: 891,281 0.5% 16

  18. Slide 18: 3. Remuneration Report

    3. Remuneration Report For personal use only “That the Remuneration Report for the year ended 3 July 2016 be adopted.” Usable Proxies Received Proxies % of Total Capital For: 130,841,065 78.9% Against: 5,037 0.0% Abstained: 1,516,511 0.9% 17

  19. Slide 19: 4. Approval of long term incentive to Mark Ronan

    4. Approval of long term incentive to Mark Ronan For personal use only “That approval be given for all purposes, including ASX Listing Rule 10.14, for the grant of options to Mark Ronan as his annual long term incentive for the year ended 2 July 2017 on the terms described in the explanatory notes a

  20. Slide 20: 5. Approval of long term incentive to Michael Cherubino

    5. Approval of long term incentive to Michael Cherubino For personal use only “That approval be given for all purposes, including ASX Listing Rule 10.14, for the grant of options to Michael Cherubino as his annual long term incentive for the year ended 2 July 2017 on the terms described in the expla

  21. Slide 21: 6. Appointment of Auditor

    6. Appointment of Auditor For personal use only “That Ernst & Young, having been duly nominated by a shareholder of the Company and having consented in writing to act, be appointed as auditor of the Company.” Usable Proxies Received Proxies % of Total Capital For: 136,065,092 82.0% Against: - 0.0% A

  22. Slide 22: Meeting Closed

    For personal use only Meeting Closed 21

  23. Slide 23: 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

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