DUSK GROUP LIMITED — AGM Information 2024

Nov 17, 2024

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Dusk Group Limited (ASX:DSK)

2024 Annual General Meeting 18 November 2024

Board of Directors

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John Joyce Chairman

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Vlad Yakubson CEO and Managing Director

Non-executive directors

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David MacLean Tracy Mellor Katherine Ostin Trent Peterson

Dusk Group Limited - 2024 AGM Presentation

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Agenda

01

Chairman’s Address John Joyce

02 03 CEO and Managing Director’s Address Vlad Yakubson

Formal Business

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Dusk Group Limited - 2024 AGM Presentation

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Chairman’s
Address
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FY24 Financial Overview

Transformational year with new management team and new strategy in place. dusk delivered quarter on quarter improvements in sales trends as FY24 progressed

$126.7m

$81.5m

64.3%

$6.2m

Total Sales

-7.9% on pcp[1]

LFL sales -12.1% on pcp[2]

Gross Profit[3]

-7.5% vs pcp

Gross Profit % +20 basis points higher on pcp

Pro Forma EBIT[4] FY23: $16.5m

2H sales trend materially improved on 1H

$20.8m $15.5m Net cash Inventory at year end FY23: $15.2m FY23: $16.0m

4 cps

6.9 eps 4 cps Earnings per share[5] Final dividend[6] FY23: 18.6 cents FY24: Total dividends per share of 6.5 cps fully franked

1. Prior Corresponding period; 2. Like-for-like sales; 3. Gross Profit is on a Pro Forma basis 4. Pro Forma EBIT is unaudited and pre-AASB. It excludes a non-cash impairment of $0.4m relating to the carrying value of Property, Plant & Equipment associated with underperforming stores in NZ; 5. Basic EPS is on a statutory basis; 6. FY23 full year dividend totaled 11 cps fully franked;

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CEO and
Managing
Director’s
Address
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Dusk Group Limited - 2024 AGM Presentation

The Year in Review

Improvement in sales run rate through 2H FY24 reflects better execution and the early phase of new strategic initiatives gaining traction.

Renewal of Significant talent renewal across key leadership roles in the business. New leadership team in place, which brings fresh perspectives leadership team to strategy, trade and brand rejuvenation. Implementation of Improved sales performance in 2H FY24 reflects the implementation of several strategic initiatives focused on product key strategic initiatives rejuvenation, disciplined promotional activity and improving online trade. Better omni-channel Enhanced execution in our online channel as 2H progressed, following the website upgrade in June 2024 and supported by a experience renewed focus on superior digitally led marketing. Gross profit % Our gross profit % has been maintained due to the realisation of efficiencies identified in our supply chain and tactical control of maintained the promotional calendar. Strong financial dusk finished FY24 with closing cash of $20.8m and no debt. Inventory of $15.5m at year end was slightly ahead of FY23 and position remains clean and well balanced. dusk has declared a final dividend of 4 cps full franked.

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Key strategic priorities – FY25 and beyond

Grow market share and reassert our leadership in the home fragrance category and gifting.

• Increasing New customer Redefine our

• 1 2 3 customer frequency acquisition brand identity

• • Deliver more product newness, more often, • Introduce more contemporary ranges • Upgrade brand handwriting to broaden with monthly injections of new seasonal and alongside proven traditional and novelty appeal and elevate styling trend lines products • Amplify our destination appeal in key

• • Continue to expand new product categories • Target new customer cohorts of seasonal events (Christmas, Easter, through test & learn (e.g. unisex, car, bath 15–22 year-olds and male shoppers Halloween, and Mother’s Day) and body – more occasions, and more uses) • Increased focus on social media and digital • Extend focus to sub-events (Valentine’s Day,

• • Increase frequency and variety of product marketing channels Lunar NY, Father’s Day) collaborations • Provide value to different customer cohorts • Smooth the sales curve with improvement in

• • Introduction of new product that appeals to at various price points customer frequency and being on time with a younger target audience (in addition to relevant market trends • Category creep will offer more variety and

• core customer) more reasons to visit dusk • Become top-of-mind destination for

• • Use CRM and our dusk Rewards program to • Test & learn both new entry level product all year-round gifting (birthdays, drive customer inspiration and awareness of anniversaries, housewarming & dinner party our new lines lines, and higher price point products gifts) and personal shopping • New store design fit out is in development

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Leading a product-led turnaround

A reset of our product strategy is at the heart of our turnaround. We are implementing material changes in both execution and the strategic aspects of product development, ranging, sourcing, and supply chain

New products and ranges, more often

We are reinvigorating the cadence of product innovation and newness in our range, which commenced in 2H FY24, and will accelerate further in FY25. Newness drives frequency, and excitement.

Our data and IP informs ranging in existing categories

We are encouraged by the results we have seen so far testing new product lines within existing categories, whilst maintaining proven winners and seasonal favourites.

Significant opportunity for category creep

Actively exploring category creep opportunities with a test & learn approach. This will enhance our range differentiation, assert category leadership, and grow sales productivity in our stores and online.

Identify and translate trends to volume lines

Strengthened our team and processes, and aligned our supply chain to better enable identification and translation of key product design trends to unique ranges for our customers (and manage associated risks).

Product collaborations as a core competency

Our customers love the fun, variety and novelty of our product collaborations. Our vertical retail model and scale enables us to be an attractive collaboration partner. Our collaboration program will become a more consistent feature of our product offering.

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FY25 Priorities

• Accelerate product rejuvenation program. Upgrade core product

• New products offering and increase frequency of new product drops and ranges •

• More product collaborations and new seasonal ranges are in the pipeline

• Invest in digital marketing with social media campaigns that target

• Digital Channel our broader customer base (including younger customer segment) & Marketing • Digital channel expansion with growth in our online sales through the

• Digital channel expansion with growth in our online sales through the improvement of site experience

• Improve store productivity with key projects focused on roster

• Store Portfolio optimisation and new incentive structure for store teams Productivity • Disciplined approach to store portfolio as illustrated by closure of

• Disciplined approach to store portfolio as illustrated by closure of 6 stores in FY24

• Systems enhancements to allow improved and more dynamic business visibility for improved data led decision making

• Systems and • Supply chain optimisation and diversification with current and new

• Supply Chain suppliers in Australia and Asia to lower costs, increase quality and speed, and support more innovation

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Dusk Group Limited - FY24 Result Presentation

Trading Update & Outlook

Sales results for the first 20 weeks of FY25 vs pcp are as follows:

	Sales growth, unaudited	First 20 weeks FY25 vs pcp
	Total sales	+12.7%
	LFL sales	+11.5%
	Online sales	+41.2%
	Bricks and mortar sales	+10.7%

• Online penetration of 8.3% (6.8% in pcp) as our online channel continues to grow at an accelerated rate. The strong performance reflects the addition of a new digital team with a tactical and real-time focus on trading the business that is driving conversion and growth opportunities.

• Delivery of new monthly product capsules has resulted in a shift in sales mix between core and fashion product with fashion representing a higher proportion of sales compared to pcp.

• Our trading margin[1] remains broadly in line with prior year, and we remain focused on margin management strategies.

• dusk’s Rewards membership renewals and new member sign-ups are +42% for the first 20 weeks of FY25 on pcp as we continue to actively engage with our members and showcase special events. Members accounted for 57% of sales.

• Two new stores have opened in 1H FY25.

• 12 pop-up stores have been opened for a 7-week period from mid-November with the aim of growing market share, brand awareness and targeting a broader customer base during peak Christmas period.

• In recent weeks since the launch of our Christmas offering, we have seen encouraging sales trends which suggest a positive customer response to the new range as we move into the important seasonal peak trading period.

• We are focused on providing great quality product at affordable prices which appeals to new and existing customers – the results available from strong execution are just beginning.

• Trading Margin is sales less product costs, and excludes non-selling expenses such as FX adjustments, shrinkage, etc.

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Items of business

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Dusk Group Limited - FY24 Result Presentation
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ITEM 1

Financial Report, Directors’ Report and Auditor’s Report

To receive and consider the financial report, directors’ report and auditor’s report for the Company and its controlled entities for the year ended 30 June 2024.

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ITEM 2
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Re-election of Directors

2.1

That John Joyce, being eligible, be re-elected as a Director of the Company.

Proxies Received	Number of Votes	% Votes (excluding abstentions)
For	9,067,588	97.10
Open	133,330	1.43
Against	137,237	1.47
Abstained	3,817	NA

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ITEM 2
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Re-election of Directors (cont.)

2.2

That Trent Peterson, being eligible, be re-elected as a Director of the Company

Proxies Received	Number of Votes	% Votes (excluding abstentions)
For	10,612,703	92.91
Open	132,972	1.16
Against	677,480	5.93
Abstained	3,817	NA

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ITEM 3

Adoption of Remuneration Report

That the Remuneration Report for the year ended 30 June 2024 be adopted.

Proxies Received	Number of Votes	% Votes (excluding abstentions)
For	7,594,308	94.53
Open	132,972	1.66
Against	306,301	3.81
Abstained	62,764	NA

Note: A voting exclusion statement applies to this resolution. Refer to Section 2 of the notes relating to voting.

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ITEM 4

Issue of Performance Rights to CEO and Managing Director

That approval is given for the purposes of ASX Listing Rule 10.14 and for all other purposes, for the grant of performance rights to the Chief Executive Officer and Managing Director, Vlad Yakubson, on the terms set out in the Explanatory Memorandum.

Proxies Received	Number of Votes	% Votes (excluding abstentions)
For	11,146,151	95.51
Open	132,972	1.14
Against	391,189	3.35
Abstained	6,660	NA

Note: A voting exclusion statement applies to this resolution. Refer to Section 2 of the notes relating to voting.

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Meeting
closed
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Disclaimer

This presentation has been prepared by Dusk Group Limited (‘dusk’) ABN: 38 603 018 131. It is general information on dusk and its subsidiaries (‘dusk Group’) current as at the date of the presentation. It is in summary form and is not necessarily complete. It should be read together with the company’s other periodic and continuous disclosure announcements filed with the Australian Securities Exchange, which are available at www.asx.com.au. The information in this presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account your financial objectives, situation

or needs. Investors should obtain their own professional advice in connection with any investment decision.

To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this presentation. Past performance is not indicative of future performance.

FORWARD LOOKING STATEMENTS

This presentation contains forward looking statements. These are based on dusk’s current expectations about future events and is subject to risks and uncertainties which may be beyond the control of dusk. Actual events may differ materially from those contemplated in such forward-looking statements.

Forward looking statements are not representations about future performance and should not be relied upon as such. dusk does not undertake to update any forward-looking statement to reflect events or circumstances after the date of this presentation, subject to its regulatory and disclosure requirements.

FINANCIAL DATA

All figures in the presentation are in Australian dollars ($ or A$) unless stated otherwise. A number of figures, amounts, percentages, estimates, calculations of value and fractions in this presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this presentation.

FINANCIAL INFORMATION

The pro forma financial information provided in this presentation is for illustrative purposes only and does not represent a forecast or expectation as to dusk’s future financial condition and/or performance.

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