Myer Holdings Limited · ASX:MYR
Myer — H1 2012 Earnings Presentation
28 slides from Myer's earnings presentation, Mar 15, 2012
Slide 1: Myer First Half Results for the 26 weeks ended 28 January 2012
ASX & Media Release Thursday 15 March 2012 Myer First Half Results for the 26 weeks ended 28 January 2012 Earnings before interest and tax of $142.9 million Interim dividend of 10 cents, fully franked Full year NPAT guidance reconfirmed 1H sales down 1.7% to $1,704 million, down 3.0% on a comparab
Slide 2: 1H2012 Financial Performance
1H2012 FINANCIAL PERFORMANCE The best performing categories in the first half were Miss Shop (Youth), Womenswear, Childrenswear and Cosmetics. The Electrical category continued to be impacted by planned category exits and rationalisation (white goods, consoles and gaming, music, DVDs and navigation
Slide 3: Delivering Our Five-Point Plan
DELIVERING OUR FIVE-POINT PLAN We have made good progress on our strategic plan, which we have continued to refine to include a number of new initiatives. 1. IMPROVE CUSTOMER SERVICE We have continued to invest in improving the customer experience with a number of service and efficiency initiatives.
Slide 4: Enhance merchandise offer: brands and MEBs
During the past six months brands that performed well included MAC Cosmetics, Chanel, Dior, KitchenAid, Lipsy, Wayne by Wayne Cooper, Leona by Leona Edmiston, Regatta, Bonds and Jane Lamerton. MEBs continued to grow as a percentage of our overall sales mix, now representing 18.3 percent (1H2011:
Slide 5: Build a Leading Omni-Channel Offer
4. BUILD A LEADING OMNI-CHANNEL OFFER In a rapidly changing technology environment our customer’s shopping preferences continue to evolve. We are focused on delivering a seamless experience for our customers across their preferred channel, whether in store, online, or on mobile devices. Our previous
Slide 6: New stores and outlook
“We look forward to opening our two new stores at Fountain Gate (Victoria) and Townsville (Queensland) later this calendar year. Construction is also underway at our new store at Shell Harbour (New South Wales),” said Mr Brookes. “In the current environment it is not unexpected that our discussions
Slide 7: Table 1 – Profit & Loss Statement for the 26 weeks to 28 January
Table 1 – Profit & Loss Statement for the 26 weeks to 28 January 2012 1H 2012 1H 2011 Change vs. Actual Actual LY $m $m Total Sales Value 1,704.0 1,733.1 (1.7%) Concessions 248 233 +6.4% Operating Gross Profit 698.3 702.6 (0.6%) Operating Gross Profit margin 40.98% 40.54% +44bps Cash Cost of Doing B
Slide 8: Balance Sheet, Financial Ratios, Shares and Dividends
Table 2: Balance Sheet as at 28 January 2012 January 2012 January 2011 Actual Actual $m $m Inventory 391 378 Other Assets 67 96 Less Creditors (487) (517) Less Other Liabilities (259) (238) Net Trading Investment (288) (281) Property 27 27 Fixed Assets 497 503 Tangible Funds Employed 236 249 Intangi
Slide 9: 1H2012 Results
MYER Half Year Results 2012 Half Year Results To 28 January 2012 Bernie Brookes CEO and Managing Director Mark Ashby CFO 1H2012 results • Overview • Financial update • Delivering our plan • Outlook 2 15 March 2012
Slide 10: Results in line with expectations
MYER Half Year Results 2012 Results in line with expectations • Full year NPAT guidance reconfirmed • 1H sales down 1.7% to $1,704 million • Q2 sales down 0.4% to $1,023 million • Operating gross profit margin +44 bps to 40.98% • EBITDA $182.9 million, EBITDA margin 10.7% • EBIT $142.9 million, EBIT
Slide 11: Financial summary
MYER Half Year Results 2012 1H2012 results Overview Financial update Delivering our plan Outlook 5 Financial summary 1H2012 vs.1H2011 Improved sales from Q1 (3.5%), to Q2 Sales $1,704.0m (1.7%) (0.4%); Q2 trend continued into 2H Solid operating gross profit result Operating $698.3m (0.6%) despite cy
Slide 12: Financial ratios; 1H sales performance
MYER Half Year Results 2012 Financial ratios 1H2012 vs.1H2011 EBITDA $182.9m (10.0%) Reflects tough environment and increase in costs, including customer EBITDA margin 10.73% (99bps) service investment EBIT $142.9m (15.1%) Increased depreciation from recent EBIT margin 8.38% (133bps) capital investm
Slide 13: Continued improvement in OGP; Cash cost of doing business
MYER Half Year Results 2012 Continued improvement in OGP % • Further growth in MEBs * • Reduced markdowns • Better mix and space utilisation • Improved sourcing • Further reduced shrinkage *Achieved despite impact of cycling receipt of profit underpinning • Clean inventory position “Business model d
Slide 14: EBIT reflects one-off impacts, increased depreciation
MYER Half Year Results 2012 EBIT reflects one-off impacts, increased depreciation $m % FINANCIAL REVIEW 11 FINANCIAL UPDATE 1H2012 financial summary • Sales trend improved from Q1 to Q2 • Strong operating gross profit • Investment in customer service • Depreciation reflects recent capital investment
Slide 15: Progress on delivering our plan
MYER Half Year Results 2012 1H2012 results Overview Financial update Delivering our plan Outlook 13 Progress on delivering our plan 1. Improve customer service and efficiency 2. Enhance our merchandise offer 3. Strengthen our loyalty program 4. Build a leading omni-channel offer 5. Optimise our stor
Slide 16: Improve customer service and efficiency
MYER Half Year Results 2012 1. Improve customer service and efficiency Service initiatives • Targeted investment of extra hours in high service departments and in MEBs • Enhanced selling skills program • Reward and recognition expanded • Increased service in fitting rooms • Closer collaboration with
Slide 17: Customer feedback improving; Enhance merchandise offer
MYER Half Year Results 2012 1. Customer feedback improving +76.6% +161% -14% *Data reflects all contacts received in first half in Stores and by Customer Service Centre 17 DELIVERING OUR PLAN 2. Enhance merchandise offer • Brand acquisitions and exclusivity further strengthen offer • Addition of mea
Slide 18: Enhance merchandise offer: new brands
MYER Half Year Results 2012 2. Enhance merchandise offer Major new brands improve depth of offer Womens: Morrison, Sass, Laura Ashley, Fate, Trent Nathan* Mens: T.M. Lewin, R.M. Williams, Elwood, Autonomy, Firetrap, Duck and Cover, Trent Nathan* Intimates: Leona Edmiston Pins, Donna Karan, DKNY hosi
Slide 19: MYER Half Year Results 2012
MYER Half Year Results 2012 RM WILLIAMS TM LEWIN 21 ELWOOD BAUHAUS 22 FIRETRAP AUTONOMY 15 March 2012
Slide 20: MYER Half Year Results 2012
MYER Half Year Results 2012 Leona Edmiston Pins, DKNY and Donna Karan Hosiery 23 Jayson Brunsdon Home Collection 24 15 March 2012
Slide 21: Strengthen our loyalty program; Build omni-channel offer
MYER Half Year Results 2012 3. Strengthen our loyalty program • Customer shopping data on approximately 70% sales • Valuable means to evaluate stores, brands, space, product, service mix and marketing • Over 1.9 million email addresses provides valuable and targeted marketing tool • Key initiatives
Slide 22: Omni-channel roadmap; Optimise our store network
MYER Half Year Results 2012 4. Omni-channel roadmap SCALABLE BUILD DELIVERING PLATFORM CAPABILITY SOLUTIONS • Transactional website 9 • Marketing agility • In store multi-channel experience • Core infrastructure 9 • Customer order management • Range optimisation • Range / Price / Promotion 9 • Produ
Slide 23: Optimise our store network; Competitive advantages support the plan
MYER Half Year Results 2012 5. Optimise our store network • Completed refurbishment at Liverpool – Total space reduced by 30% improving returns – Refreshed offer, new brands • Carindale relaunch March 2012 • Refurbishments commencing in 2H – Highpoint, Indooroopilly 29 29 DELIVERING OUR PLAN Competi
Slide 24: Key sales drivers and focus areas for 2H2012
MYER Half Year Results 2012 1H2012 results Overview Financial update Delivering our plan Outlook 31 Key sales drivers and focus areas for 2H2012 • Strengthen MEBs with new brands, extensions • Expand direct sourcing • Adding new brands • Enhance margins, optimise markdowns • Reduce shrinkage • Devel
Slide 25: Full year 2012 outlook
MYER Half Year Results 2012 Full year 2012 outlook • In FY2012 we face a number of additional costs (c$40m which are included in our guidance) • The 1H NPAT included one-off impacts of c$17m (cycling receipt of Melbourne store underpinning) and $5m increase in depreciation, both not in 2H • FY2012 s
Slide 26: Historical sales including concessions; Indicative new stores schedule
MYER Half Year Results 2012 Historical sales including concessions 3Q10 4Q10* 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Total Sales 671.1 815.8 706.1 1,027.0 657.3 768.4 681.4 1022.6 $m Total Sales 0.0% -1.4% -1.5% -4.9% -2.1% -5.8% -3.5% -0.4% growth LFL Sales 0.6% -0.7% -1.7% -7.4% -3.1% -7.9% -5.1% -1.7% gro
Slide 27: Indicative new stores schedule
MYER Half Year Results 2012 Indicative new stores schedule Approved New Stores North Lakes By Anticipated Opening* Chermside Brookside Brisbane City 2012 Indooroopilly Carindale 2013 Mt Gravatt Cairns Loganholme 2014 2015 Townsville Coomera Northern 2017 Mackay Territory Pacific Fair Queensland Robi
Slide 28: Disclaimer
MYER Half Year Results 2012 Disclaimer All numbers are unaudited. This release may contain “forward-looking statements”. Forward-looking statements can generally be identified by the use of words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “believe”, “continue”, “obj