ACCENT GROUP LIMITED — AGM Information 2023

Nov 16, 2023

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2023 Annual General Meeting

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Accent Group FY2023 AGM Presentation

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Accent Group FY2023 AGM Presentation

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David Gordon Chairman

Daniel Agostinelli Group CEO

Accent Group FY2023 AGM Presentation

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Joshua Lowcock

Brett Blundy

Michael Hapgood

Donna Player

Stephen Goddard

Accent Group FY2023 AGM Presentation

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Anne Loveridge AM

Lawrence Myers

Accent Group FY2023 AGM Presentation

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Matthew Durbin Group CFOO & Joint Company Secretary

Alethea Lee Group General Counsel & Joint Company Secretary

Alison Milner Partner, PWC

Accent Group FY2023 AGM Presentation

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Welcome and Introduction

Chairman’s report

CEO report

Trading update

Formal business

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Accent Group FY2023 AGM Presentation

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$1.57b sales inc.
Owned sales franchisees [1]
($ Millions)
Demonstrated track
record of retail sales 1,393
1,103
growth driven by 968
store rollout and new 772 807
banners
FY19 FY20 FY21 FY22 FY23
479 stores 524 stores 638 stores 762 stores 821 stores
Expansion of omni-  Click and dispatch
channel capabilities  Endless aisle 9.3m customers
and contactable  Same day delivery 17 websites 35 websites
5 websites
customer database 4.8m contactable 9.8m customers
2.5m contactable
customers
customers
Growth in existing
and new distributed
brands
Apparel and vertical 7% of sales
sales growth strategy
>7% of sales
0.6% of sales
1. Includes stores and digital sites, non-IFRS measure
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Accent Group FY2023 AGM Presentation

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Accent Group’s mission is to be the market leading, digitally integrated retail and distribution business, in the performance lifestyle market for footwear, apparel and accessories across Australia and New Zealand.

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Global
Distributed
Brands
Retail
786 Retail Stores
and 35 Online Sites
Wholesale
17 Wholesale
Vertical
Brands
Apparel
Owned
Brands
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The Accent Business model

Scalable, flexible and defensible

Multi-Brand Retail Banners

Range global third party brands, global distributed brands, and owned vertical brands and products through online and stores

Global Distributed Brands

Dedicated retail stores and online sites, as well as wholesale customer channels

Vertical Apparel Owned Brands

Supports margin growth and product differentiation in multi-brand banners, as well as having dedicated online sites

Accent Group FY2023 AGM Presentation

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Key Metrics

Key Metrics
Profit & Loss ($000's)	FY23	FY22 % Change
Owned sales Gross profit Gross margin (%) CODB– excl. lease depreciation & interest CODB %– excl. lease depreciation & interest CODB % Other income– inc. royalties and franchise fees	1,393,257 768,842 55.2% (498,052) 35.7% 44.5% 27,431	1,103,488 26.3% 598,496 54.2% 100bps (411,240) 37.3% (160bps) 47.3% (280bps) 26,309
EBITDA	298,221	213,565 39.6%
Depreciation on leases Depreciation & amortisation	(107,893) (51,540)	(98,654) (52,635)
EBIT	138,788	62,276 122.9%
Net finance costs on lease liabilities Net interest (paid) / received	(13,702) (5,470)	(12,271) (3,413)
PBT	119,616	46,592 156.7%
Tax	(30,963)	(15,128)
Net Profit After Tax	88,653	31,464 181.8%

1. FY22 EBIT includes one off non-cash charges of $7.7m, $5.2m relating to the transition out of PIVOT stores and $2.5m relating to store lease assets in a small number of stores where customer traffic levels have still not recovered

Accent Group FY2023 AGM Presentation

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Total Shareholder Return[(][1)] comparison of Accent and the ASX200 (30 June 2013 to 30 June 2023)

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1,000%
Total Shareholder Return
since 30 June 2013:
Accent Group: 20.9%
(Annualised Return)
750%
ASX200 Index: 10.1%
(Annualised Return)
500%
567.6%
250%
160.7%
0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
AX1 ASX200
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Source: Bloomberg.

1. Assumes 100% dividend reinvestment on the ex-dividend date.

Accent Group FY2023 AGM Presentation

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At Accent we “ ” Make It Happen

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Our People

Our people come first

Safety

• Committed to providing a safe working environment

• Regular monitoring of key safety metrics

• In April 2022, the Group launched a digitally delivered and enhanced health and safety training for all retail team members

Our Responsibilities

We act with integrity

Community Partnerships

• Expansion of initiatives driven by “Stamp your Feet

• Contribution of $450,000 across three years to Headspace and NZ Youth Line

• Our brands continue to support their respective charity partnerships

Our Environment

We care for our environment

Reduce & Recycle Resources

• Accent Group is a key member of the Australian Sporting Goods Association (ASGA)

• Over 300 shoe recycling collection points across our stores

• In FY23, almost 70,000 pairs of shoes were recycled

Accent Group FY2023 AGM Presentation

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Daniel Agostinelli Group CEO

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A new record year…

Total Sales (inc Franchises) ¹ EBIT $1.57 billion $138.8 million +23.7% on FY22 +122.9% increase on FY22 FY23: 53 Weeks Vs FY22: 52 Weeks

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Stores

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Comp Performance
10.2%
LFL [1] store
performance
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New Stores 20 18 80 22 new stores opened new stores opened new stores opened stores now trading across Australia and across Australia and during FY23 across Australia New Zealand New Zealand

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Online & Loyalty

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Digital Share VIP & Loyalty Platforms
9.8 million
19.1% 11
Contactable customers
of total retail sales new and re-
+0.5m increase since
(inc franchise) platformed websites
June ‘22
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1. Non-IFRS measure

2. Like for like (“LFL”) retail sales based on 52 weeks for current and comparative periods, include TAF Franchises sales, digital sales and Glue store. The LFL measurement is consistent with prior releases and includes the year-onyear sales comparison for all stores in which a sale has been recorded on the same day the prior year.

Accent Group FY2023 AGM Presentation

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Digital Sales Growth

		$39.0 m $51.6 m $109.0 m $159.9 m $134.0 m $44.8 m $89.8 m $100.9 m $105.5 m $126.5 m $83.8 m $141.4 m $209.9 m $265.4 m $260.5 m FY19 FY20 FY21 FY22 FY23 H1 H2 Total
Digital sales increased to $260.5m,211.0%on FY19 comparative Digital sales contributed to 19.1% of total retail sales1
Average Order rate increased by 15.9% in comparison to FY22 Sales growth of 19.8%from H2 FY22 to H2 FY23 9.8m contactable customers +500kon FY22 Growth inHype & Platypus Loyalty Programs 11 New/re-platformed websites 1. Digital sales and total retail sales include The Athlete’s Foot franchises Key Metrics Digital Sales Website Sessions Orders Conversion Rate Digital as a % of Total Retail Sales Avg. Order Value +48.5% FY21 Full Year +24.4% +30.8% +5.1% 20.9% +4.7% +211.0% FY19 Full Year +91.0% +118.4% +14.4% 10.2% +42.5% (1.9%) FY23 Full Year (0.1%) (15.3%) (15.2%) 19.1% +15.9% 2. Percentages shown for FY23 represent movements on equivalent FY22 period; (16.2%) FY23 H12 (11.4%) (30.4%) (21.5%) 18.9% +20.5% +19.8% FY23 H22 +14.7% +11.5% (2.8%) 19.3% +7.5% Variance to FY22 Variance to FY19

Accent Group FY2023 AGM Presentation

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Accent Group Contactable Customers

(Millions)

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9.8
9.3
8.4
6.8
4.8
FY19 FY20 FY21 FY22 FY23
Members (millions)
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• 9.8 million contactable customers

• Platypus, Hype and Skechers continue to deliver growth through driving engagement with their Loyalty Programs

• Loyalty program driving repeat spend with a total membership now >8 million

• Continuous investment into our customer loyalty database

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Accent Group FY2023 AGM Presentation

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Retail & Wholesale

• Opened 80 new stores

• Transitioned 15 stores from discontinued brands to existing brands

• Strong retail performance in all major banners

• 22 Nude Lucy stores now trading in Australia

• Wholesale sales growth of 10% from prior period

Store Network[1]

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821
762
638
524
479
FY19 FY20 FY21 FY22 FY23
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1. Includes store closures and websites. For a breakdown by banner refer to page 11

Vertical Owned Brands

• Strong continued growth in Vertical Owned sales of over 40%

• Sales of over $100 million, representing

• 7% of total sales

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Vertical Owned Brands Sales
($ Millions)
>$100m
$75m
$26m
$13m
$5m
FY19 FY20 FY21 FY22 FY23
Sales (Millions)
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Accent Group FY2023 AGM Presentation

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• Update on trade for the first 19 weeks of FY24

• Total Group owned sales YTD are up 2.1% compared to FY23

• LFL sales for the first 19 weeks are down 2.0%

• FY24 gross margin % YTD is broadly in line to the comparable period last year

• CODB % to sales to the end of week 19 is higher than the prior year due to inflationary pressures on costs and weaker like-for-like sales

• Wholesale sales are more challenging reflecting softer demand from other retailers

• Store opening program is on track – 70 new stores expected to open in H1 FY24

• In-stock position along with sales and operational plans are well set heading into the three most important trading months of the year

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This presentation contains general background information about Accent Group’s current activities and provides additional comment on, and should be read in conjunction with, the FY23 Annual Report and accompanying information released to the market on 24 August 2023.

Important Notice and Disclaimer

The information is a summary only and is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. Investors should assess their own individual financial circumstances and seek independent advice before making any investment decision.

This presentation contains forward looking statements about our belief, intent or expectations. Such statements involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond our control and may cause actual results to vary in a material manner.

While all reasonable care has been taken in the preparation of this presentation, Accent Group, its subsidiaries and their respective directors, officers and employees accept no responsibility for any loss or damage resulting from use of or reliance on this presentation by any person.

Accent Group FY2023 AGM Presentation