Exclusive Distribution Agreement Announcement

Shaver Shop Group Limited (ASX: $SSG) has secured the exclusive rights to distribute and sell Skull Shaver's full range of men's and women's personal grooming appliances and accessories across Australia and New Zealand. The initial term of the agreement is 5 years commencing on 1 July 2024, with a renewal mechanism for an additional 5 years. Shaver Shop will pay an up-front fee of US$2.25 million on commencement, and a further fee of US$2.5 million on renew (after 5 years).

Executive Commentary

We are thrilled to have locked in an exclusive licence with Skull Shaver which reflects the strength of our partnership, our valued role as a market leader in Australia, and our commitment to working in partnership with the world's best brands in our key product categories. This agreement creates long term alignment between our organisations to continue to drive growth in our market. Securing this exclusive agreement with Skull Shaver is consistent with our existing strategy. The arrangement further solidifies Shaver Shop's position as the leading destination for premium men's grooming products in ANZ. We offer our customers the greatest breadth and depth of quality, sought-after, personal grooming products and brands as well as deliver an exceptional shopping experience. Securing exclusivity with leading brands who deliver product and marketing innovation in our core product categories has been a strategic focus of Shaver Shop for many years. The sales and gross profit contribution from these exclusive products and brands continues to be a core part of our business model and success.

Summary of Exclusive Distribution Agreement

Shaver Shop Group Limited (ASX: $SSG) has secured an exclusive distribution agreement with Skull Shaver, providing the company with the rights to distribute and sell Skull Shaver's full range of men's and women's personal grooming appliances and accessories across Australia and New Zealand. The initial term of the agreement is 5 years, with a renewal mechanism for an additional 5 years. Shaver Shop expects the arrangement to be earnings accretive in the first full year of the agreement, with a payback period of approximately three years. The company will use available cash-on-hand to pay the up-front exclusivity fee. The exclusive agreement further solidifies Shaver Shop's position as the leading destination for premium men's grooming products in ANZ and is in line with the company's existing strategy. Shaver Shop anticipates strong returns on investment from this exclusive distribution agreement and looks forward to continuing to work closely with the Skull Shaver team in the years ahead to further build on the mutual success experienced in the region.