Just Acquires Smiggle - Investor Update

Just Acquires Smiggle - Investor Update
July 2007
Acquisition
• Great brand
• Colourful, bright stationery
with fashion input
• 18 stores in Victoria, New
South Wales and Queensland
and wholesale in Australia Post
Business Overview
• Founded in 2003
• Stores
– Average size 60m2
– Strip locations (3) and major Shopping Centres (15)
• Distribution agreement with Australia Post – 80 outlets
Attractive addition to lifestyle segment
Womenswear
Mature women
30’s / Lifestyle
Consumer Age
Contemporary Fashion
Kids
Key:
Existing brands
New brand
Potential brands
Lifestyle
Accessories / Intimates / Footwear, etc.
Casualwear
Same Retail Model
VIC
• Highpoint
• Chadstone
• Northland
• Melbourne Central
• Hawthorn
• South Yarra
• Knox
• Brighton
• Southland
• Fountain Gate
• Frankston
NSW
• Bondi
• Castle Hill
• Hornsby
• Miranda
• Parramatta
QLD
• Chermside
• Indooroopilly
Same Supply Chain
Best Apparel Supply Chain
• 100% own label
• China sourced
• Fast response
Same Fashion and Youth Focus
Dolly Magazine January 2007
Purchase Structure
• Purchase price
– At least $29.0m
– $23.2m payable on completion at end of August 2007
– Balance payable after 2010 based on 2009 and 2010
business profitability (earn out)
• Existing management continuing
• Objectives totally aligned
Growth
• Stores
– Annualised effect and continued growth of existing stores
– New stores
• Wholesale expansion in Australia Post and potentially other
outlets
• On line
Acquisition expected to be Just Group earnings per share accretive
by at least 1 cent in each of FY08 and FY09
Australasia’s Leading Specialty Fashion Retailer
Investor Update
July 2007