Premier Investments Limited · ASX:PMV
Premier Investments — FY2010 Earnings Presentation
33 slides from Premier Investments's earnings presentation, Sep 21, 2010
Slide 1: Premier Investments Limited 2010 Full Year Results
For personal use only Premier Investments Limited 2010 Full Year Results 21 September 2010
Slide 2: Agenda
For personal use only Agenda 1 Highlights 2 Financial results 3 Just Group performance 4 Dividend and capital management 5 Outlook 6 Additional financial and operational information 1
Slide 3: Agenda
For personal use only Agenda 1 Highlights 2 Financial results 3 Just Group performance 4 Dividend and capital management 5 Outlook 6 Additional financial and operational information 2
Slide 4: Highlights
For personal use only 1 Highlights Profit result – FY2010 NPAT $79.6m (FY2009 - $82.7m; FY2008 - $41.8m) – FY2010 EPS – 52.8c (FY2009 – 62.4c; FY2008 – 46.3c) – FY2010 comparisons with past years are problematic due to a range of factors including: – Premier’s change of financial year date (fewer we
Slide 5: Agenda
For personal use only Agenda 1 Highlights 2 Financial results 3 Just Group performance 4 Dividend and capital management 5 Outlook 6 Additional financial and operational information 4
Slide 6: Financial Results
For personal use only 2 Financial Results Comparison of FY2010 to FY2009 problematic at the Premier level: – Premier’s FY2010 comprises 53 weeks. FY2009 comprised 55 weeks and 5 days – Changes in depreciation charges following a comprehensive review of the Group’s fixed assets (see below) – Premier
Slide 7: Premier—Consolidated Income Statement
For personal use only 2 Premier—Consolidated Income Statement 26 Jul 09 1 Jul 08 to 31 Jul 10 to 25 Jul 09 $m Premier revenues (ex Just Group) 16.7 25.5 Premier expenses (ex Just Group) (3.7) (3.4) Just Group EBIT 84.2 95.2 Finance costs (7.9) (9.1) FX accounting benefit due to acquisition accountin
Slide 8: Premier—Consolidated Balance Sheet
2 Premier—Consolidated Balance Sheet Premier has For personal use only $m 31 Jul 10 25 Jul 09 Assets maintained a robust Cash and cash equivalents 316.6 328.7 cash position Inventories 71.7 69.5 Clean inventory Plant and equipment 91.2 73.3 position with a stock Other assets 36.3 36.2 turn of 5.1 ti
Slide 9: Premier—Consolidated Cash Flow Statement
For personal use only 2 Premier—Consolidated Cash Flow Statement 26 Jul 09 1 Jul 08 to 31 Jul 10 to 25 Jul 09 $m Net cash flows from operating activities 74.6 77.4 Net capital expenditure (35.3) (30.2) Net cash flow - available-for-sale financial assets (2.0) (3.0) Acquisition - (433.5) Net cash flo
Slide 10: Agenda
For personal use only Agenda 1 Highlights 2 Financial results 3 Just Group performance 4 Dividend and capital management 5 Outlook 6 Additional financial and operational information 9
Slide 11: Just Group Performance
For personal use only 3 Just Group Performance Just Group trading performance has been significantly impacted by two major factors: – Challenging retail environment – Portmans transformation The retail environment was particularly challenging in 2H 2010: – Retail trading abnormally volatile – Succes
Slide 12: Full Year Results FY10
For personal use only Full Year Results FY10 21 September 2010
Slide 13: Overview of Results
Overview of Results For personal use only • Total sales increased by 3.0% to $870.4m • LFL sales down 3.7% following generally weak results in 2nd half • Gross margin slightly better despite competitive pressure and stock turn remained above 5 times • Significant focus on cost savings to mitigate im
Slide 14: Just Group – Summary Result
Just Group – Summary Result FY10 FY09 Var For personal use only $’000’s Sales 870,385 844,853 +3.0% Issue Response LFL sales* -3.7% -1.6% Gross Profit** 519,073 500,827 Gross margin (%)** 59.6% 59.3% 36bps Stores increased by 53 Reduced store rosters Increased hourly rates Headcount freeze Salaries
Slide 15: Geographic Summary
Geographic Summary For personal use only Sales - Clothing % movement on prior comparable month • Total sales up 1.9% (2H10 down 4.9%) 10.0% FY10 Just Group ABS 0.0% 8.0% • LFL sales down 4.4% (2H10 down 9.5%) 6.0% 1H10 +8.4% Just Group +1.9% ABS 1H10 +5.0% nd 4.0% • 2 half significantly affected by
Slide 16: Just Jeans and Jacqui E
Just Jeans For personal use only Jacqui E • Total sales up 0.9% (2H10 -7.8%) • Total sales down 4.7% (2H10 -5.7%) • Brand remains well positioned to compete via • New team now experienced, but improvement established leadership in denim and casual initiatives hampered by market conditions fashion •
Slide 17: Jay Jays and Dotti
Jay Jays For personal use only Dotti • Total sales down 2.7% (2H10 -11.2%) • Total sales up 22.4% (2H10 +11.5%) • Challenging 2nd half. Profile and positioning • 26 stores opened during the year, many in with youth consumer remains strong. Weak premium locations youth market and lack of new fashion
Slide 18: Portmans
Portmans For personal use only • Total sales down 13.5% (2H10 -10.5%) • Generally weak retail conditions in 2nd half have slowed the transformation, but confidence remains high • Primary focus for management and board. Significant progress has been made and early results are encouraging • 128 stores
Slide 19: Portmans Strategy Update
Portmans Strategy Update For personal use only Five key drivers Status 1. Understand the customer Target customer clear and and brand proposition brand alignment continuing 2. Have the right team Team in place 3. Improve the product offer Offer is improving, emphasising workwear, on trend fashion it
Slide 20: Peter Alexander and Smiggle
Peter Alexander For personal use only Smiggle • Total sales up 20.7% (2H10 +16.5%) • Total sales up 65.5% (2H10 +36.8%) • Excellent result in a tough market • Chain has continued to grow rapidly, with 33 stores opened in FY10 • New stores contributing ahead of expectations • Existing store sales und
Slide 21: Agenda
For personal use only Agenda 1 Highlights 2 Financial results 3 Just Group performance 4 Dividend and capital management 5 Outlook 6 Additional financial and operational information 20
Slide 22: Dividend and capital management
For personal use only 4 Dividend and capital management Premier’s Board continues to focus on rewarding shareholders and maintaining cash reserves for opportunities that may arise Premier’s Board has declared a final fully franked dividend of 28c per share comprising: – A fully franked ordinary divi
Slide 23: Dividend and capital management
For personal use only 4 Dividend and capital management FY2010 dividends have continued to reward Premier shareholders with real wealth creation. Premier ordinary dividend per share history 45 40 35 36 35 29 30 Cents 25 20 18 14.5 15 10.5 10 5.5 5 0 2004 2005 2006 2007 2008 2009 2010 In addition to
Slide 24: Agenda
For personal use only Agenda 1 Highlights 2 Financial results 3 Just Group performance 4 Dividend and capital management 5 Outlook 6 Additional financial and operational information 23
Slide 25: Outlook
For personal use only 5 Outlook Premier reaffirms its expectation that Just Group is well positioned for significantly improved performance in FY2011 to be driven by: – An improved retail environment; – The significant operating leverage in the Just Group business model; – A more supportive gross ma
Slide 26: Agenda
For personal use only Agenda 1 Highlights 2 Financial results 3 Just Group performance 4 Dividend and capital management 5 Outlook 6 Additional financial and operational information 25
Slide 27: Additional Information
For personal use only Additional Information 21 September 2010 26
Slide 28: Just Group – Results by Half
Just Group – Results by Half $’000’s 1H10 1H09 Var 2H10 2H09 Var For personal use only Sales 472,693 432,683 +9.3% 397,692 412,170 -3.5% LFL sales* +1.1% -4.3% -8.7% +2.0% Gross Profit** 280,791 256,093 238,282 244,734 Gross margin (%)** 59.4% 59.2% 22bps 59.9% 59.4% 54bps Salaries (100,165) (86,149
Slide 29: Just Group – Key Operating Metrics
Just Group – Key Operating Metrics For personal use only Full Year FY10 FY09 CHANGE Stores (end) 979 926 +53 Sales $’000’s 870,385 844,853 +3.0% LFL sales growth % -3.7% -1.6% Gross Profit margin % 59.6% 59.3% +36bps EBITDA $’000’s 103,971 120,689 -13.9% EBITA $’000’s 84,327 95,339 -11.6% EBITA marg
Slide 30: Just Group – Key Operating Metrics by half
Just Group – Key Operating Metrics by half For personal use only 1st Half 2nd Half H1 2010 H1 2009 CHANGE H2 2010 H2 2009 CHANGE Stores (end) 958 +32 979 +21 Sales $’000’s 472,693 432,683 +9.3% 397,692 412,170 -3.5% LFL sales growth % 1.1% -4.3% -8.7% +2.0% Gross Profit margin % 59.4% 59.2% +22bps 5
Slide 31: Just Group – Sales & Stores
Just Group – Sales & Stores For personal use only Full Year Stores Sales Growth % A$'000's Just Jeans 259 217,894 +0.9% Jay Jays 249 240,024 -2.7% Portmans 128 109,390 -13.5% Jacqui E 106 84,660 -4.7% Dotti 110 100,823 +22.4% Peter Alexander 33 60,582 +20.7% Smiggle 93 57,012 +65.5% Group 1 TOTAL GR
Slide 32: Just Group – Sales & Stores by half
Just Group – Sales & Stores by half For personal use only 1st Half 2nd Half Stores Sales Growth Stores Sales Growth A$'000's % A$'000's % Just Jeans 262 117,455 +9.7% 259 100,439 -7.8% Jay Jays 246 138,340 +4.8% 249 101,684 -11.2% Portmans 131 54,333 -16.3% 128 55,057 -10.5% Jacqui E 108 46,447 -3.9
Slide 33: Just Group – Store movements
Just Group – Store movements For personal use only As at 31 July 2010 Stores Openings Closures Stores Change Beg FY10 FY10 End in stores Just Jeans 264 3 -8 259 -1.9% Jay Jays 248 6 -5 249 +0.4% Portmans 133 2 -7 128 -3.8% Jacqui E 108 2 -4 106 -1.9% Dotti 84 26 0 110 +31.0% Peter Alexander 27 8 -2