SSG - 2021 AGM - Chairman and CEO & MD Address

For personal use only

ASX ANNOUNCEMENT

FOR IMMEDIATE RELEASE

SHAVER SHOP 2021 ANNUAL GENERAL MEETING

Melbourne, 10 November 2021

Shaver Shop Group Limited (ASX: SSG) the Australia and New Zealand specialty retailer of male and female personal grooming products, will today address shareholders at its 2021 Annual General Meeting to be held virtually via our virtual AGM platform at: https://agmlive.link/shaver21 .

Attached is a copy of the address to be delivered by the Chairman, Mr. Brodie Arnhold and the address to be delivered by the Chief Executive Officer and Managing Director, Mr. Cameron Fox.

Voting results from the meeting will be lodged with the ASX later today.

Approved by the Board.

-ENDS-

For Further Media Information:

Cameron Fox, CEO and Managing Director

[phone]

For Investor Relations Information:

Larry Hamson, CFO and Company Secretary [phone]

Shaver Shop Group Limited (ACN 150 747 649)

Level 1, Chadstone Tower One, 1341 Dandenong Road, Chadstone, VIC, 3148

For personal use only

2021 Annual General Meeting

Chairman's Address - Mr. Brodie Arnhold

Introduction

Good morning and welcome. My name is Brodie Arnhold and I am the Chairman of the Board of Directors of Shaver Shop Group Limited.

Today we are holding our second virtual AGM using streaming technology provided by our share registrar Link Market Services Limited. We, as your Directors, would have preferred to have been able to meet with you in person, and fingers crossed, this is the last year we will host our AGM virtually. However, given the global pandemic and the ongoing difficulties in travelling and meeting safely, a virtual AGM is considered the most appropriate approach again this year.

Please bear with us if we encounter any technical issues. We doubt there will be any, but you can never be 100% sure. If we do experience any technical issues today, a short recess or an adjournment may be required depending on the number of shareholders and/or directors being affected. If this occurs, I shall advise you accordingly.

I draw your attention to Slide 2 regarding forward looking statements contained in this presentation.

Housekeeping items and agenda

It is now 11am Melbourne time, the appointed time for holding our 2021 Annual General Meeting. Notice of this Meeting was duly given and the meeting has been properly convened. I am advised that we have a quorum and I therefore have the pleasure in declaring this meeting open. Thank you to all attending.

We will turn to the items of business and voting later in the meeting. Please note that only shareholders, proxy holders or shareholder company representatives may vote. Voting on all resolutions will be conducted by way of a poll.

Shareholders attending the meeting online will be able to cast their vote using the electronic voting card received when online registration is validated. Please refer to the virtual meeting guide or use the help line specified in the AGM portal. Questions regarding each item of business will be discussed prior to disclosing the Proxy votes received on each item.

This year we will be taking questions on the phone as well as online. To utilise the teleconference facility, Holders must use their unique PIN provided to them by Link Market Services. If you don't have a phone PIN and would like to ask a question via the phone, please contact Link on 1800 990 363 now to get your PIN.

When you dial in to the teleconference centre, you will be asked to mute your online sound and listen to the meeting by phone. There is a delay between the teleconference system (which is effectively live) and the online system, so it is important that you only listen through your phone. If you wish to ask a question, you will need to dial 'STAR 1' on your phone's keypad. This will indicate to the teleconference moderator that you wish to ask a question. The teleconference moderator will require your name and will introduce you, prompting you to ask your question at the relevant time. In order to ensure that all Holders have a reasonable opportunity to comment and ask questions, I request that Holders do not ask more than 2 questions at a time.

Following our review of each item of business, general business questions will be taken. Shareholders participating online through the virtual meeting website - please click on 'Ask Question' button, type your question and click submit. I encourage shareholders attending online, and who have questions, to send their

Shaver Shop Group Limited (ACN 150 747 649)

Level 1, Chadstone Tower One, 1341 Dandenong Road, Chadstone, VIC, 3148

For personal use only

questions through as soon as possible. Shareholder questions received prior to the meeting will be addressed during the general business questions session.

Now onto the Agenda.

Following my introductory remarks, Shaver Shop's Managing Director and Chief Executive Officer will speak to a number of the growth drivers that position Shaver Shop strongly for the years ahead.

After that, Cameron will provide a brief trading update on what has been a very volatile first four months of the 2022 financial year. From there we will move onto the formal part of the meeting and voting on the various items of business that were outlined in the Notice of Annual General Meeting.

With that, I would now like to introduce you to your directors.

Your Board

Shaver Shop's board is made up of 5 independent, non-executive directors and one executive director, Cameron Fox. Like you, they are all participating virtually.

Craig, Brian and myself have now been working with Shaver Shop for approximately 10 years and so we have a very deep understanding of the business. Trent joined the board shortly before our IPO in 2016 and we were fortunate that Debra Singh, our newest director, joined the organisation in September of last year. Craig is the Chairman of our Audit and Risk Committee and Trent is the Chairman of our Nomination and Remuneration Committee. The members of these committees is clearly outlined in our Corporate Governance Statement that is on our investor relations website and was lodged with the ASX.

Also present is Daniel Rosenberg, our audit partner from PricewaterhouseCoopers. Daniel will be available to answer questions on our financial accounts at the appropriate time.

Also in attendance is Jeremy Wickens from Norton Rose Fulbright, who will assist if there are any technical questions for which we require legal advice during the meeting.

We also welcome the team from Link Market Services Limited who are facilitating this virtual meeting with their AGM technology and shareholder support services.

Chairman's Address

Shaver Shop is a remarkably resilient business. This is in part due to the sector that we operate in, which tends not to be significantly affected by changes in the economy. We are classified as a discretionary retailer but history has shown that many of our products are essential from the consumer's standpoint. Grooming and personal care products are required in both the positive and negative stages of an economic cycle and across almost all demographics. Shaver Shop is a specialist retailer operating in a mass market that has proven to be largely insulated from economic downturns.

We also have global suppliers introducing new product innovation on an ongoing basis. Many of these new products are designed to enable our customers to get the same beauty outcome at home that they used to only be able to obtain at a specialty salon or barber. These DIY solutions also tend to be more cost effective which supports demand during economic downturns.

However, unlike previous cyclical downturns which supported demand for Shaver Shop products largely for financial reasons, both financial and government imposed drivers led to significant demand across several of the

Shaver Shop Group Limited (ACN 150 747 649)

Level 1, Chadstone Tower One, 1341 Dandenong Road, Chadstone, VIC, 3148

For personal use only

product categories that we sell. Hair clippers, long term hair removal solutions for women, hair styling products and body groomers all benefited from the COVID-19 led changes in demand over the last 18 months or so.

However, the demand has not been uniformly strong. As the nature of lockdowns have changed and the narrative from government officials has changed, so has demand and propensity to spend. This has led to significant volatility in trading and quite challenging operating conditions for the entire Shaver Shop team. The management and store teams have done an exceptional job overcoming these challenges with the business in significantly better shape today, than prior to the pandemic. This is a tribute to the culture and passion of our team members in being able to adapt and drive positive results from an incredibly difficult operating environment.

The volatility in trading has also been reflected in our share price - most particularly at the start of the pandemic. More recently our share price has stabilized despite the extended lockdowns across Victoria, NSW and the ACT in Australia, as well as in the north island of New Zealand. Since the start of 2020, our share price is up more than 50%, and we have returned 10.3 cents per share by way of dividends in that time.

Strong five year performance trend

When you look at the five year performance trends of the business, we set the following records in 2021:

• Sales were up 9.6% to $213.7 million leading to record Net Profit after Tax of $17.5 million, up 68.3% on last year's $10.4 million. With a relatively fixed cost base, Shaver Shop generates significant operating leverage from top line sales growth, and this together with strong gross profit margins, supported the outstanding profit results in 2021.
• Your board remains very focused on managing capital efficiently with return on invested capital increasing to 24.1% last year. We also significantly increased capital returns to shareholders with fully franked dividends of 8.2 cents per share, up 71% on last year's 4.8 cent partially franked dividends.

Our key financial indicators are very strong. We have a very sound balance sheet with no debt. This provides us with the flexibility to continue investing for growth while at the same time maintaining a healthy dividend stream for shareholders. Unless we find a highly accretive investment opportunity that we believe will drive strong growth and increased returns for shareholders, we intend to continue increasing our dividend payout to shareholders. And while we have no debt on our balance sheet today, while trading and the economic environment remain volatile, we have decided to maintain a relatively conservative capital structure.

Strong progress on strategic initiatives

Moving onto our progress against the key strategic initiatives I outlined in last year's AGM presentation.

Our numbers suggest, and anecdotal feedback from suppliers further supports, that we gained market share in our core hair removal categories over the last 12 months. Shaver Shop completed 2.4 million transactions with customers last year and we now have almost 800,000 members on our e-mail marketing database.

We continue to make progress in further understanding our customer and building customer lifetime value. After rolling out the option for e-mail receipts from in-store transactions, we have been better able to understand customer behaviour and with online journeys established to drive enhanced engagement and more relevant offers, we are working to increase transaction frequency.

Our suppliers continue to innovate and we are working very closely with them on new product launches. For example, the Wahl Stainless Steel Trimmer, one of Shaver Shop's top selling products over the last four years, has now been launched in a waterproof version - exclusive to Shaver Shop. Oral B's new IO range of electric toothbrushes were launched exclusively with Shaver Shop in Australia - the only market in the world where exclusivity was granted. In addition to new innovations, we are expanding our range in men's and women's

Shaver Shop Group Limited (ACN 150 747 649)

Level 1, Chadstone Tower One, 1341 Dandenong Road, Chadstone, VIC, 3148

For personal use only

fragrance as well as in men's haircare with American Crew. These are natural additions to our line-up and complement our core categories. Pleasingly, we have been able to continue to secure exclusive access to new products with 26 of our top 30 products being exclusive to Shaver Shop last financial year.

Lastly in terms of digital excellence, our ongoing investments in Shaver Shop's omni-retail experience continue to pay dividends with online sales of $61.2 million representing 28.6% of total sales in FY2021. The investments in this area are continuing, with a significantly more personalised and engaging online experience that more closely resembles the experience in one of Shaver Shop's store. We are dissecting our customer data to better segment and target cohorts with relevant offers that are suited to their interests and we are on track to start leveraging our data through artificial intelligence (AI). We're also making it even easier for customers to transact with Shaver Shop by offering traditional payment mechanisms as well as several buy-now pay later schemes.

So Shaver Shop has made significant progress on many fronts despite the challenges brought about by the pandemic. That said, we still see significant potential for our business. Whether it's in refining and improving our social media presence and following, continuing to expand our category mix, increasing our brand awareness

• particularly in New Zealand, or most significantly, leveraging the now significant customer database that we now have.

As we move towards our most important trading period, we are well positioned to capitalise now that most of our stores have re-opened. We are confident that we have the right strategies, team, product range and promotional plans in place to deliver strong returns for shareholders in FY22 and in years to come.

In closing, I would like to express my sincere thanks on behalf of the board and our shareholders, to the entire Shaver Shop team. Your passion for this business and your ongoing pursuit for customer service excellence has been remarkable and is what has contributed to Shaver Shop emerging from the pandemic in an even stronger position than when it began.

I will now hand you over to Cameron Fox, our Managing Director and CEO.

Thank you.

Shaver Shop Group Limited (ACN 150 747 649)

Level 1, Chadstone Tower One, 1341 Dandenong Road, Chadstone, VIC, 3148