Signet Jewelers Limited · NYSE:SIG
Signet Jewelers — Signet Investor Conferences, May 31 – June 1, 2017
9 slides from Signet Jewelers's conference presentation, May 31, 2017
Slide 1: Signet Investor Conferences Supplement
Signet Investor Conferences Supplement Michele Santana, CFOMay 31 – June 1, 2017
Slide 2: Forward Looking Statements & Other Disclosure Matters
Forward Looking Statements & Other Disclosure Matters Forward-Looking Statements – This presentation contains statements which are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, based upon management's beliefs and expectations
Slide 3: Phased, Strategic Outsourcing of Credit Portfolio
Secondary Program Lease- Purchase Primary Program Phased, Strategic Outsourcing of Credit Portfolio Seven-year agreement with Progressive Leasing to offer Lease-Purchase option to applicants that do not wish to pursue a credit option or do not qualify for future credit programsCaptures customers at
Slide 4: Full Spectrum of Financing Coverage
Prime Near/Non-Prime Note: Not scaled to the actual size of the portfolio¹Signet will not offer credit insurance as a part of its credit offering after closing, which is incorporated in the anticipated financial impact from the transaction²Credit sales before down payment 4 Credit Tier Share of FY17
Slide 5: Lease-Purchase Program – Progressive Leasing
Lease-Purchase Program – Progressive Leasing Owned by Aaron’s ($2.5 billion market cap)Originated >1 million leases in 2016$1.2 billion in 2016 revenueOperates in 22,000 retail locations in 46 states Progressive to serve as lease-purchase partner for applicants who may not be eligible for the Primar
Slide 6: Pro Forma Financials
Pro Forma FinancialsProgram designed to substantially maintain net sales¹A slight decline in EBIT from the transactionTransaction expected to be EPS accretive in first full year of operations assuming October 2017 close and at current share pricesROCE² is expected to increase above 40% in future yea
Slide 7: Financial Guidance Fiscal 2018
Financial Guidance Fiscal 2018 Same store sales Down low-to-mid single-digit % EPS $7.00 to $7.40 Effective tax rate 24% to 25% Weighted average common shares 74 million to 75 million Capital expenditures $260 million to $275 million Net square footage change -1% to 0% FY guidance excludes the impac
Slide 8: Reaffirmed FY 2018 Guidance
8 Reaffirmed FY 2018 Guidance Guidance anticipates ongoing retail industry softness; Signet has a number of initiatives underway to deliver EPS growth Q1: Largely in-line with Signet’s expectations and factored into guidanceSequential improvement Feb - April when normalized for Mother’s Day performa
Slide 9: Capital Allocation
Distribute 70%-80% of free cash flow in form of dividends and buybacks, excluding one-time proceeds from the credit portfolio transaction and reflected in FY18 guidanceFlexibility to repurchase shares in advance of the close of the credit portfolio transaction – $511 million remaining on current aut
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