Kmd Brands Limited · NZX:KMD
Kmd Brands — Kathmandu Holdings — Shareholder Meeting (November 2015)
22 slides from Kmd Brands's shareholder meeting presentation, Nov 20, 2015
Slide 1: Annual General Meeting
For personal use only Annual General Meeting 20 November 2015
Slide 2: Agenda: 2015 Annual General Meeting
Agenda: 2015 Annual General Meeting For personal use only • Chairman’s address • Chief Executive Officer’s address • Ordinary business • Item 1: Financial Statements • Item 2: Election of Directors • Item 3: Auditors’ Remuneration • Item 4: Approval of grant of performance rights to Xavier Simonet •
Slide 3: Chairman's Address
For personal use only Chairman’s Address
Slide 4: CEO's address
For personal use only CEO’s address
Slide 5: 2015 Annual General Meeting
CEO’s address: 2015 Annual General Meeting For personal use only • FY15 results summary • FY15 other key highlights • Growth strategy update • Trading performance update • FY16 outlook 5
Slide 6: FY15 results summary
CEO’s address: FY15 results summary For personal use only • Sales $409.4m, up 4.2%; • Same store sales decrease 1.9% at constant exchange rates; • Gross margin 61.5%, 160bps lower than FY14; • Earnings before Interest and Tax $33.2m, down 48.4%; • Net profit after tax $20.4m, down 51.7%. SALES (NZD
Slide 7: FY15 other key highlights
CEO’s address: FY15 other key highlights For personal use only • Return to comparable sales growth at improved margins in Q4; • Summit Club member numbers grew by c. 20%. Now more than 1.4 million active members; • Online sales grew by c. 28%, now 6.2% of Group sales; • 10 permanent new stores opene
Slide 8: Growth strategy update: optimise pricing and promotional model
CEO’s address: Growth strategy update For personal use only OPTIMISE THE PRICING AND PROMOTIONAL MODEL Review of promotional model and pricing architecture has been completed. Main focus: • Rationalisation of media spend with clear sense of return on investment, particularly through social media and
Slide 9: Growth strategy update: improve store network profitability
CEO’s address: Growth strategy update IMPROVE THE PROFITABILITY OF OUR EXISTING STORE NETWORK IN AUSTRALIA For personal use only AND NEW ZEALAND WITH A FOCUS ON DRIVING GROSS PROFIT DENSITY • It is critical to focus on the basics and optimise the profitability of our existing assets; • Improve visua
Slide 10: Growth strategy update: leverage brand and Summit Club loyalty
CEO’s address: Growth strategy update For personal use only LEVERAGE OUR BRAND DISTINCTIVENESS AND BUILD ENHANCED LOYALTY AND INDIVIDUAL ENGAGEMENT WITH SUMMIT CLUB MEMBERS • Adventure travel is the distinctive territory that Kathmandu owns as a brand. Our mission is to design products that answer t
Slide 11: Growth strategy update: footprint expansion
CEO’s address: Growth strategy update For personal use only CONTINUE FOOTPRINT EXPANSION IN AUSTRALASIA, WITH PARTICULAR OBJECTIVE TO INCREASE PENETRATION AND MARKET SHARE IN AUSTRALIA • Target of 180 stores across Australasia; • In FY16, three new stores, plus flagship store relocations in Melbourn
Slide 12: Growth strategy update: online and international expansion
CEO’s address: Growth strategy update For personal use only REALISE ONLINE POTENTIAL Online % of Sales • Build a true omni-channel offering, integrating online with in-store sales and expanding click and collect offering; 6.2% 5.1% • Improved site visitation through targeted campaigns, 4.1% affiliat
Slide 13: Growth strategy update: cost efficiency
CEO’s address: Growth strategy update For personal use only COST EFFICIENCY • Improve cost structure and drive margin expansion: • Support office restructure and associated redundancies completed; • Dedicated resources to optimise store labour productivity and scheduling; • More efficient advertisin
Slide 14: Trading pattern
CEO’s address: Trading pattern For personal use only Last Year Sales mix across the year Q1 – no major Q2 - Includes Christmas Sale Includes Easter and Winter Sales promotions and January Clearance 18% 27% 55% FIRST HALF-YEAR SECOND HALF-YEAR • Three major promotions a large portion of our annual tr
Slide 15: Trading update
CEO’s address: Trading update SALES UPDATE TO 15 NOVEMBER 2015 For personal use only • Total sales of $91.3m, +8.6% YOY (+8.8% at constant exchange rates)*1; • Same store sales +4.8% YOY at constant exchange rates Same Store Sales FY16 (15 weeks ending 15 November) Group (constant exchange rates) +4
Slide 16: FY16 outlook
CEO’s address: FY16 outlook For personal use only FIRST HALF OUTLOOK • YTD in line with expectations; • First half-year profit result remains highly dependent on Christmas trading period. FY16 OUTLOOK • Achievement of FY16 margin recovery through: • profitable sales growth in Australasia; and • oper
Slide 17: Resolutions: Items to be considered
For personal use only Resolutions: Items 1 to 4
Slide 18: Item 1: Financial Statements
Item 1: Financial Statements For personal use only To receive and consider the Financial Report of the Company for the year ended 31 July 2015 together with the Directors’ and Auditor’s reports. 18
Slide 19: Item 2: Election of Directors
Item 2: Election of Directors To re-elect Directors of the Company, each election to be voted on separately: For personal use only a) “That Mr. John Holland, who retires by rotation in accordance with Article 4.4 of the Company's Constitution and NZX Main Board Listing Rule 3.3.11 and, being eligibl
Slide 20: Item 3: Auditors' Remuneration
Item 3: Auditors’ Remuneration For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “To record that PricewaterhouseCoopers continue in office as the Company’s auditors and to authorise the Directors to fix the remuneration of Pricewaterho
Slide 21: Item 4: Grant of Performance Rights – Xavier Simonet
Item 4: Grant of Performance Rights – Xavier Simonet To consider and, if thought fit, pass the following resolution as an ordinary resolution of the Company: For personal use only "That, for the purposes of ASX Listing Rule 10.14, and for all other purposes, approval is hereby given for the grant to
Slide 22: Other business
For personal use only Other business
Kathmandu Holdings — Shareholder Meeting (November 2015) on 6ix