Nick Scali : H1 FY22 Company Presentation

H1 FY22 Results Presentation

3 February 2022

ersonal use only

H1 FY22 Highlights

only	Sales Revenue	Acquisition of Plush
	$180.3m1
	completed Nov 21
use	(+5.4% vs H1 FY21)	for $101.4m
Underlying Net	Interim Dividend
ersonal
35.0 cents per share
Profit After Tax2
	$35.6m	Payout Ratio3 84.5%
	(H1 FY21: $38.1m)	(H1 FY21: 79.8%)

1 Includes $21.7m or revenue for Plush for the two months post-acquisition

2 Underlying net profit after tax excludes the impact of one-off items. See Appendix 1

3 Payout ratio calculated on a statutory net profit after tax basis, without adjusting for the impact of one-off items

Outstanding Order

Bank

$174.7m

(H1 FY21: $103.1m)

Store Network

108 Showrooms

Nick Scali Furniture: 62

Plush: 46

2

Revenue

only	Sales revenue ($'m)
use	21.7
					41.3
				28.8
ersonal						180.3
	171.1
	H1 FY21 Opening Plush	Covid H1 FY22
				Order	Disruption
				Bank

Revenue growth (%)	vs H1 FY21
Total	+5.4%
Nick Scali	- 7.5%

• Despite elevated opening order bank at 1 July 2021, Nick Scali revenue down due to Covid disruption to three areas:
  o Temporary store closures between July and November;
  o Lockdowns in sourcing locations; and o Shipping container availability
• Revenue of $21.7m delivered for Plush from order bank acquired on 1 November 2021

3

Plush

Sales Orders & Trading

	Group Sales Orders Total
	•	Total written sales orders of $203.4m,
only		representing growth of 6.4% on H1 FY21
Nick Scali
•	Q1 trading capacity reduced by 55% vs FY21 due
use
	to temporary store closures in NSW, Victoria and
	New Zealand
•	Total Nick Scali written sales orders of $171.8m,
	down 10.1% vs H1 FY21, due to temporary store
	closures
•	1Underlying like-for-like written sales order
		growth of 4.9% vs H1 FY21
	•	Total written sales orders for Nick Scali Online
		totalled $16.6m, up 88.6% vs H1 FY21

• Written sales orders for Plush totalled $31.5m for the two months post-acquisition, up approximately 15% vs H1 FY21

ersonal1 Underlying like-for like written sales order growth is calculated on a monthly store-by-store basis, and excludes the results of comparative reporting period

Group Outstanding Order Bank

• Total order bank at 31 December 2021 of $174.7m, up 69.4% on December 2020

Nick Scali Outstanding Order Bank

• Nick Scali order bank closed at $123.7m, compared to $103.1m at December 2020. It has increased further during January

Plush Outstanding Order Bank

• Order bank at 31 December was $51.0m, with similar ageing profile and days outstanding to Nick Scali

stores for complete months that included periods of temporary closure in either the current or	4

Financial Performance

only		H1 FY21	H1 FY22
		Sales revenue	171.1	180.3
		Cost of sales	(61.6)	(66.4)
		Gross profit	109.5	113.9
use	Other income	0.8	0.7
1Operating expenses	(37.4)	(41.6)
Depreciation	(15.5)	(17.9)
		Finance costs	(3.3)	(3.9)
		1Underlying profit before tax	54.2	51.2
ersonal	Income tax	(16.1)	(15.7)
1Underlying profit after tax	38.1	35.6
1Underlying EBITDA	72.7	73.0
		1Underlying EBIT	57.2	55.1
	1 Operating expenses and underlying EBIT, EBITDA and net profit after tax exclude the impact of one-off items. See Appendices 1 & 2		5