Myer Holdings Limited · ASX:MYR
Myer — Shareholder Meeting (November 2010)
36 slides from Myer's shareholder meeting presentation, Nov 12, 2010
Slide 1: CEO's Business Update
For personal use only CEO’s Business Update Bernie Brookes Myer AGM - 12th November 2010
Slide 2: Agenda - Business Update
Agenda - Business Update For personal use only FY2010 Results 1. Overview 2. Operating update FY2011 3. Q1 Sales and outlook for 2011 Outlook beyond 2011 An international class retail business providing inspiration to everyone 2
Slide 3: 2010 Highlights: Record EBIT of $271m
2010 Highlights: Record EBIT of $271m For personal use only • Challenging retail environment for majority of FY2010 • Sales up 0.7% to $3,284 million, up 0.5% on a like-for- like basis • Operating gross profit margin up 45 basis points to 39.63% • EBIT up 14.9% to $271 million • EBIT margin up 102 b
Slide 4: Positioned for growth – new stores by 2014
Positioned for growth – 15 new stores by 2014 For personal use only Turnaround Phase Growth Phase 50 months to July 2010 48 months to July 2014 Financial Year 06 07 08 09 10 11 12 13 14 Net new stores 1 4 0 0 2 3 4 6 Chain 60 61 65 65 65 67 70 74 80 Sales ($bn) 3.17 3.29 3.32 3.26 3.28 EBIT ($m) 73
Slide 5: Five successive years of profit growth
Five successive years of profit growth For personal use only $m % Record EBIT achieved in FY2010 5
Slide 6: In excess of $540 million capital investment over past four years
In excess of $540 million capital investment over past four years For personal use only Capital expenditure FY2007 - FY2010 • Significant investment in stores during past four years • Investment of approximately $180 million in IT projects including: – MyMerch – Point Of Sale – CCTV 6 *Other include
Slide 7: Refurbished stores continue to outperform
Refurbished stores continue to outperform • 2009 refurbishments at Sydney City, Geelong and Doncaster continue For personal use only to deliver positive results • Completed refurbishments of Northland, Blacktown and Castle Hill during FY2010 • Re-launched Canberra and Charlestown following refurbish
Slide 8: Space optimisation to maximise returns
Space optimisation to maximise returns For personal use only • Continued focus on space allocation, return per square metre, adjacencies and consumer friendly layout • Exit of white goods and return to Myer ownership of music & DVD offer • Re-allocation of space to expanding categories, such as furn
Slide 9: Improved Merchandise offering in 2010
Improved Merchandise offering in 2010 For personal use only • Focus continues on being the destination for fashion with breadth and depth of range • Growth in Myer Exclusive Brands continues to be driven by customer demand 9
Slide 10: MYER one a powerful marketing tool
MYER one a powerful marketing tool membership and contribution to Myer sales For personal use only • 3.7 million primary 68% Number of members (millions) % of sales 66% card holders and over 63% 61% 5 million cards in 58% 56% circulation 47% • In excess of $51 43% million in gift cards 43% awarded i
Slide 11: Targeted & relevant offers via MYER one
Targeted & relevant offers via MYER one For personal use only 11
Slide 12: MYER one: significant competitive advantage
MYER one: significant competitive advantage For personal use only • Opportunities exist to capitalise on data analysis enabling improved merchandise offer, space planning and marketing • MYER one Affiliates program continues to gather momentum with 600 affiliates including hotels, petrol stations, c
Slide 13: Improving online offering
Improving online offering For personal use only 13
Slide 14: In excess of 8,200 SKUs currently online
In excess of 8,200 SKUs currently online For personal use only 14
Slide 15: iPhone app and Emporium iPad app
iPhone app and Emporium iPad app For personal use only Store Information Gift Shop Catalogue Offers Fashion Gallery 15
Slide 16: Embracing the digital evolution
Embracing the digital evolution For personal use only 16
Slide 17: Ongoing focus on talent
Ongoing focus on talent For personal use only • High performers club: 317 members today generating 60% more sales per hour vs. non-members (targeting 1,000 members by 2012) • Graduate program continues to gain momentum • Kaylee Albronda (pictured) awarded National Retail Association’s Young Retailer
Slide 18: Inspirational People Awards
Inspirational People Awards For personal use only • Acknowledges and rewards the hard work of team members • 21 award categories covering Stores, Support Office, Regional Distribution Centers • Presentation of the ‘my BIG idea’ Award for innovation 18
Slide 19: Update on current initiatives
Update on current initiatives For personal use only • Focus on newness and fashionability • Improved online offering as part of a broad digital focus • New stores at Top Ryde (NSW) and Robina (QLD) now trading • Myer Melbourne – progressive opening of 7 floors by mid November 2010 19
Slide 20: Top Ryde – first of new stores
Top Ryde – first of 15 new stores For personal use only • Two level store at Top Ryde (NSW) opened on 4 August 2010 • Top Ryde City spans 78,000m2, with 290 retailers and >3,000 parking spaces located in one of the fastest growing regions in Australia • Trading in line with expectations 20
Slide 21: Robina – taking the network to stores
Robina – taking the network to 67 stores For personal use only • Two level store at Robina (QLD) opened on 28 October 2010 • Robina Town Centre turnover expected to exceed $700 million • Two level store including Cosmetics, Womenswear, Accessories, Footwear, Intimate Apparel, Menswear, Electrical, H
Slide 22: Refurbished Charlestown relaunched
Refurbished Charlestown relaunched For personal use only New photos here 22
Slide 23: Refurbished Canberra relaunched
Refurbished Canberra relaunched For personal use only New photos here 23
Slide 24: Myer Melbourne - a world class department store
Myer Melbourne - a world class department store For personal use only • Total rebuild in a single store over nine levels in Melbourne’s centre (plus Mural Hall and dedicated event and promotional space) • Basement, ground and five floors now trading • Range of services and amenities to provide uniqu
Slide 25: The Atrium
For personal use only The Atrium
Slide 26: Designer Footwear and Handbags
Designer Footwear and Handbags, Level 1 For personal use only
Slide 27: Womenswear
For personal use only Womenswear, Level 1
Slide 28: Womenswear, Personal Shopping
Womenswear, Personal Shopping, Level 1 For personal use only
Slide 29: Contemporary Footwear
Contemporary Footwear, Level 2 For personal use only
Slide 30: Brunetti's Cafe
Brunetti’s Cafe, Level 3 For personal use only
Slide 31: Menswear
For personal use only Menswear, Level 4
Slide 32: Ongoing focus on improving customer service
Ongoing focus on improving customer service For personal use only Our Sales and Service Improvement Program called “Priority One” to invest additional hours in stores. Key initiatives: • Navigation and signage • Point of sale location and number of registers • Promotions and associated ticketing • S
Slide 33: Q1 Sales and Outlook for 2011 and beyond
Q1 Sales and Outlook for 2011 and beyond For personal use only Q1 2011 Sales • Q1 Sales down 1.53% to $706 million • Comparable store sales down 1.74%* • Excluding Entertainment, group sales were up 0.10% • Credible result notwithstanding that the consumer remained cautious 2011 Growth Phase Initiat
Slide 34: Store rollout to drive growth beyond 2011
Store rollout to drive growth beyond 2011 Myer Melbourne For personal use only Plenty expansion Greenhills Valley Myer Mt Gravatt Melbourne Shell Harbour TBA Fountain Joondalup Gate Tuggerah Coomera Woden Watergardens Townsville Mackay Robina Top Ryde Over $500m of additional sales expected 34
Slide 35: Transformed iconic Australian retailer
Transformed iconic Australian retailer For personal use only Competitive Transformed Growth advantage platform strategy • Iconic retailer • Focus on • Comparable and execution new store growth • Comprehensive product offering • World class • Gross margin • National store footprint • Leading retail s
Slide 36: Disclaimer
Disclaimer For personal use only This release includes “forward-looking statements” within the meaning of securities laws of applicable jurisdictions. Forward-looking statements can generally be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estima