Myer Holdings Limited · ASX:MYR
Myer — Citi Australian Investment Conference 2010
44 slides from Myer's conference presentation, Oct 25, 2010
Slide 1: Citi Australian Investment Conference
For personal use only Citi Australian Investment Conference 25 October 2010 Business transformation delivers a solid platform for growth 1
Slide 2: Highlights: Record EBIT of $271 million
Highlights: Record EBIT of $271 million For personal use only • Challenging retail environment for majority of FY2010 • Sales up 0.7% to $3,284* million, up 0.5% on a like-for-like basis, despite extensive Myer Melbourne rebuild, refurbishments, rollout of new technology and no new stores opened in
Slide 3: Positioned for growth – 15 new stores by 2014
Positioned for growth – 15 new stores by 2014 For personal use only Turnaround Phase Growth Phase 50 months to July 2010 48 months to July 2014 Financial Year 06 07 08 09 10 11 12 13 14 Net new stores 1 4 0 0 2 3 4 6 Chain 60 61 65 65 65 67 70 74 80 Sales ($bn) 3.17 3.29 3.32 3.26 3.28 EBIT ($m) 73
Slide 4: Five successive years of profit growth
Five successive years of profit growth For personal use only $m % Record EBIT achieved in FY2010 4
Slide 5: Strong EBIT despite challenging retail environment
Strong EBIT despite challenging retail environment For personal use only • Strong EBIT result due to ongoing benefits from investments made during the transformation phase and reflects: – Improved merchandise mix with strong growth in big name brands such as MAC, Apple, Pleasure State, CUE, Sunglass
Slide 6: Strong operating gross profit
Strong operating gross profit For personal use only • Operating gross profit margin improved to 39.63% (vs. 39.18% in FY2009) despite tough trading environment • 2010 performance: – Strong gross operating profit achieved despite increase in targeted promotional activity and markdowns – Improved merc
Slide 7: Strong and sustained improvement in CODB
Strong and sustained improvement in CODB For personal use only Cash CODB / sales reduced • Investment in IT and supply chain providing sustainable cost efficiencies • Reduction in cash CODB / sales achieved despite new costs in second half (rent for new support office and costs associated with being
Slide 8: Capital expenditure in FY2010 totalled $118 million
Capital expenditure in FY2010 totalled $118 million For personal use only Capital expenditure FY2010 • 2010 capital expenditure included: – IT including new Point of Sale and CCTV – Extensive rebuild of Myer Melbourne – New store at Top Ryde – Refurbishments at Canberra City, Charlestown – New suppo
Slide 9: Continued focus on working capital
Continued focus on working capital For personal use only Further improvement in creditor days in FY2010 Opportunity exists to improve inventory turns in FY2011 * As at 31 July 2010 (53 weeks basis) 9
Slide 10: Transformation phase highlights
Transformation phase highlights For personal use only • In excess of $540m of capital invested over four years • Supply chain transformation to a world class standard • Investment of approximately $180m in IT including MyMerch, POS & CCTV since FY2007 • Refurbished eight stores • Enhanced visual mer
Slide 11: MYER one a powerful marketing tool
MYER one a powerful marketing tool For personal use only membership and contribution to Myer sales • Potential to grow top-line sales 66% 68% through existing and new Number of members (millions) % of sales members and MYER Visa 63% 61% card holders 58% 56% • In excess of $51 million in gift cards a
Slide 12: Targeted & relevant offers via MYER one
Targeted & relevant offers via MYER one For personal use only 12
Slide 13: MYER one: significant competitive advantage
MYER one: significant competitive advantage For personal use only • Further opportunities exist to capitalise on data analysis database enabling improved merchandise offer, space planning and marketing • Total MYER one Gold card holders now in excess of 20,000 (spend >$7,500 per annum) • MYER one Af
Slide 14: Target of 80 stores by FY2014
Target of 80 stores by FY2014 Announced new stores (indicative opening schedule, subject to centre development) For personal use only • On completion of store rollout program, Myer will be in 29 of the top 30 centres Estimated Size Centre MAT Metro Growth Regional Store State Year Landlord Catchment
Slide 15: Store rollout program to drive sales growth
Store rollout program to drive sales growth 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 15
Slide 16: Focus on “newness” to drive sales
Focus on “newness” to drive sales For personal use only • Focus on “newness” and “fashionability” across all categories • Integrated approach incorporating product sourcing, supply chain, marketing, events, visual merchandising, online and digital • Communications focused on product benefits and bra
Slide 17: 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 • Case study: Exit of white goods and return to Myer ownership of music / DVD offer resulting in: – Total of 185 additional brands add
Slide 18: 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” comprises the following key initiatives • Navigation and signage • Point of sale location and number of registers • Promotions and associated ticketing • Selling-focused
Slide 19: Growth and profit drivers
Growth and profit drivers For personal use only Underpinned by improved customer service Comp store Gross margin CODB margin New store growth sales growth improvement reduction • Ongoing refurbishments • 14 additional new stores • Myer Exclusive Brands • Store support costs • Enhanced visual • Myer
Slide 20: Update on current initiatives
Update on current initiatives For personal use only • Improved online offering as part of a broad digital focus. In excess of one million unique viewers to Myer’s website per month • Point Of Sale rollout – As at today, 51 stores are operating with new POS – Rollout expected to be completed by mid N
Slide 21: Improving online offering
Improving online offering For personal use only 21
Slide 22: In excess of 7,200 SKUs currently online
In excess of 7,200 SKUs currently online For personal use only 22
Slide 23: Top Ryde – first of new stores
Top Ryde – first of 15 new stores • Top Ryde (NSW) opened on 4 August 2010 to huge crowds. Coordination between teams For personal use only ensured success • Two level store (>10,800m2) including Cosmetics, Womenswear, Accessories, Footwear, Intimate Apparel, Electrical, Homewares, Menswear and Gene
Slide 24: Top Ryde
For personal use only Top Ryde
Slide 25: Robina
For personal use only Robina
Slide 26: Charlestown
For personal use only Charlestown
Slide 27: Canberra
For personal use only Canberra
Slide 28: Myer Melbourne - a world class department store
Myer Melbourne - a world class department store Total rebuild to deliver 32,000m2 of selling space in a single store over nine levels in Melbourne’s For personal use only • centre (plus additional 3,000m2 for Mural Hall and dedicated event and promotional space) • Basement, ground, first, second and
Slide 29: Designer Footwear & Handbags
For personal use only Designer Footwear & Handbags, Level 1
Slide 30: Designer Footwear & Handbags
For personal use only Designer Footwear & Handbags, Level 1
Slide 31: Designer Footwear & Handbags
For personal use only Designer Footwear & Handbags, Level 1
Slide 32: Personal Shopping
For personal use only Level 1 Personal Shopping, Level 1
Slide 33: Accessories
For personal use only Accessories, Level 2
Slide 34: Womenswear
For personal use only Womenswear, Level 1
Slide 35: Contemporary Footwear
For personal use only Contemporary Footwear, Level 2
Slide 36: Contemporary Footwear
For personal use only Contemporary Footwear, Level 2
Slide 37: Contemporary Footwear
For personal use only Contemporary Footwear, Level 2
Slide 38: Youth & General Merchandise, Basement
For personal use only Youth & General Merchandise, Basement
Slide 39: Youth & General Merchandise, Basement
For personal use only Youth & General Merchandise, Basement
Slide 40: Ground Floor, Fragrances
For personal use only Ground Floor, Fragrances
Slide 41: Ground Floor, Fragrances
For personal use only Ground Floor, Fragrances
Slide 42: Ground Floor, Fragrances
For personal use only Ground Floor, Fragrances
Slide 43: Ground Floor, Cosmetics
For personal use only Ground Floor, Cosmetics
Slide 44: Outlook for FY2011 and beyond
Outlook for FY2011 and beyond For personal use only • Full benefits of Myer’s turnaround phase still to be seen • Growth phase well underway, with first of 15 new stores open • Strong management in place to deliver on growth initiatives • Well positioned to benefit from operating leverage (cost frac
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