ACCENT GROUP LIMITED — AGM Information 2024

Nov 20, 2024

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2024 Annual General Meeting

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Accent Group FY2024 AGM Presentation

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Accent Group FY2024 AGM Presentation

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The Board
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David Gordon Chairman

Daniel Agostinelli Group CEO

Accent Group FY2024 AGM Presentation

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The Board
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Michael Hapgood

Donna Player

Anne Loveridge AM

Lawrence Myers

Accent Group FY2024 AGM Presentation

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Other attendees
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Matthew Durbin Group CFOO & Joint Company Secretary

Nikki Nuttall Group General Counsel & Joint Company Secretary

Alison Milner Partner, PWC

Accent Group FY2024 AGM Presentation

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Welcome and Introduction

Chairman’s report

CEO report

Trading update

Formal business

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Accent Group FY2024 AGM Presentation

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The Accent growth journey
$1.6b sales inc.
franchisees [1]
+78%
Demonstrated track $1,393 $1,435
record of retail sales $968 $1,103
$807
growth driven by
store rollout and new
banners
FY20 FY21 FY22 FY23 FY24
524 Stores 638 Stores 762 Stores 821 Stores 895 Stores
Expansion of omni-
channel capabilities and  Click and dispatch
contactable customer  Endless aisle 17 websites >9m CUSTOMERS 32 websites
database  Same day delivery 4.8m contactable 10.2m contactable
customers customers
Growth in existing
and new distributed 14 distribution
brands agreements
Apparel and vertical
sales growth strategy
2% of sales 7% of sales c.9% of sales
1. Includes stores and digital sites, non-IFRS measure
Owned Sales ($millions)
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Accent Group FY2024 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
863 Retail Stores
and 32 Online Sites
Wholesale
14 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 FY2024 AGM Presentation

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Financial Summary FY24 vs FY23[1 ]

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Profit & Loss ($000's) FY24 FY23 % Change
Owned sales 1,434,898 1,393,257 3.0%
Gross profit 800,144 768,842
Gross margin (%) 55.8% 55.2% 58bps
CODB – excl. lease depreciation & interest (525,911) (498,052)
CODB % – excl. lease depreciation & interest 36.7% 35.7% 90bps
CODB % 45.9% 44.5% 138bps
Other income – inc. royalties and franchise fees 19,454 27,431
EBITDA 293,687 298,221 (1.5%)
Depreciation on leases (115,200) (107,893)
Depreciation & amortisation (68,093) (51,540)
EBIT 110,394 138,788 (20.5%)
Net finance costs on lease liabilities (16,798) (13,702)
Net interest (paid) / received (9,180) (5,470)
PBT 84,416 119,616 (29.4%)
Tax (24,886) (30,963)
Net Profit After Tax 59,530 88,653 (32.9%)
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1. Financial results for the 52 weeks ended 30 June 2024, are presented on a statutory post AASB 16 basis unless otherwise noted. Prior year comparisons are presented on the same basis for the 53 weeks ended 2 July 2023.

Accent Group FY2024 AGM Presentation

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Total Shareholder Return[(][1)] comparison of Accent and the ASX200 (30 June 2014 to 28 June 2024

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1,000%
Total Shareholder Return
since 30 June 2014:
Accent Group: 21.2%
(Annualised Return)
750%
ASX200 Index: 9.5%
(Annualised Return)
500%
581.1%
250%
148.3%
0%
2014 2015 2017 2018 2019 2021 2022 2024
AX1 ASX200
Source: Bloomberg.
1. Assumes 100% dividend reinvestment on the ex-dividend date..
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Accent Group FY2024 AGM Presentation

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At Accent we “ ” Make It Happen

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Our People

Our people come first

Safety

• 600 safety audits completed

• Improved safety reporting

• Upweighted training program

Diversity & Inclusion

• 65:35 Female to Male ratio

• 30% Female Board representation

Training

• Leadership Academy

• 475 participants in AG UNI

Our Responsibilities

We act with integrity

Ethical Sourcing & Modern Slavery

• Policies updated

• OSC portal used for factory audit data

Community Partnerships

• 3-Year Headspace and NZ Youth Line program

• Local community programs lead by Brands

Data Security

• Enhanced anti-phishing and incidence response programs

Our Environment

We care for our environment

Recycle Program through ASGA

• 286 customer shoe recycling collection points across our stores

• • 51,486 pairs of shoes were collected

Sustainable Product

• Alpha Dux school shoes made with recycled leather.

Climate

• Scope 1 & 2 emissions calculated

• Preparing to meet the new Carbon reporting standards in FY26

• Accent Group remains an APCO member for packaging compliance

Accent Group FY2024 AGM Presentation

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Daniel Agostinelli

Group CEO

Total Sales (inc Franchises)

$1.61 billion1 +2.7% on FY23

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Vertical Owned Brand Sales

>$125 million

c.9% of total sales

New Stores

93

new stores opened during FY24 across Australia and New Zealand

36

stores now open representing a fastgrowing world class lifestyle apparel brand

26

new stores opened across Australia and New Zealand

23

new stores opened across Australia and New Zealand

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Customers & Loyalty

10.2 million Contactable customers 400,000 increase since June 23

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1. Financial results for the 52 weeks ended 30 June 2024, are presented on a statutory post AASB 16 basis unless otherwise noted. Prior year comparisons are presented on the same basis for the 53 weeks ended 2 July 2023.

Accent Group FY2024 AGM Presentation

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Retail

Store Network[1]

• Retail sales of $1.27 billion, up 6.3% on FY23

• 93 new stores added to the Accent Group network in FY24

• Strong retail performance across Skechers, Hype, TAF, Stylerunner, Nude Lucy and others

• 36 Nude Lucy stores now open with consistently growing results YoY

Wholesale

• Wholesale sales of $164 million, down 16.9% on FY23

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895
821
762
638
524
FY20 FY21 FY22 FY23 FY24
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Vertical Owned Brands

• Strong continued double-digit growth in Vertical Owned sales

• Sales of over $125 million, representing c.9% of total owned sales

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Vertical Owned Brands Sales ($ Millions)

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$125m
>$100m
$75m
$26m
$13m
FY20 FY21 FY22 FY23 FY24
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Accent Group FY2024 AGM Presentation

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Accent Group Contactable Customers (Millions)

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+4.1%
10.2
9.8 million
9.3
8.4 customers
6.8
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FY20
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FY21
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FY22
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FY23

FY24

• Contactable customers continues to grow to 10.2 million .

• Loyalty program membership of 8.1 million across TAF, Skechers, Platypus, Hype DC, Glue Store and Merrell.

• In November ‘23 the company launched an exclusive loyalty partnership with Qantas where customers can earn and spend Qantas points across Accents banners.

• The average spend on the Qantas linked transactions to date is significantly higher than the Accent average.

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Accent Group FY2024 AGM Presentation

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• Update on trade for the first 20 weeks of FY25

• Total Group owned sales YTD are up 6.8%

• LFL sales for the first 20 weeks are up 3.5%

• FY25 gross margin % YTD is down 70bp with the comparable period last year

• CODB % to sales to the end of week 20 is starting to gain traction, with CODB% to sales showing a small improvement to last year

• Store opening program is on track – around 40 new stores expected to open in H1 FY25

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

• Frasers update – following the announcement in August of the Frasers Group shareholding, the Board intends to appoint Dave Forsey, a former CEO of Sports Direct and the current General Manager of APMEA for Frasers to the Accent Board effective at the end of the AGM on 21 November 2024.

Accent Group FY2024 AGM Presentation

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