Signet Jewelers Limited · NYSE:SIG
Signet Jewelers — Q4 FY2018 Earnings Presentation
16 slides from Signet Jewelers's earnings presentation, Mar 14, 2018
Slide 1: Fourth Quarter & Fiscal 2018 Results
Fourth Quarter & Fiscal 2018 Results Wednesday, March 14, 2018
Slide 2: Forward Looking Statements & Other Disclosure Matters
Forward Looking Statements & Other Disclosure Matters 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 as well as on assumptions ma
Slide 3: Key Take-Aways
Key Take-Aways • Fiscal 2018 was a challenging year as Signet executed a complex credit outsourcing and experienced operational issues • Strong cash flow in 2018 supported significant cash returns to shareholders and debt repayment • Implementing a three year Company-wide comprehensive strategy – th
Slide 4: Signet Path to Brilliance Transformation Plan
Signet Path to Brilliance Transformation Plan Customer First OmniChannel Agility and Efficiency Aggressively address customer Develop best in class mobile Organizational change to relevance and value experience and seamless banner focus in new North integration across digital America segment
Slide 5: Strategic Benefits of Credit Portfolio Outsourcing
Strategic Benefits of Credit Portfolio Outsourcing 1 Allows Signet to focus on core retail business 2 Significantly reduces balance sheet exposure to consumer credit risk 3 Maintains full spectrum of financing and leasing options for Customers 4 Expected to generate over $1.3 billion in proceeds fro
Slide 6: Full Spectrum of Financing and Leasing Coverage
Full Spectrum of Financing and Leasing Coverage Phase I Completion of Phase II Servicing Funding Servicing Funding Prime Non- Prime Lower Tier 6
Slide 7: New Signet Board Members
New Signet Board Members Sharon McCollam From 2012-2016, Sharon served as Executive Vice President, Chief Administrative and Chief Financial Officer of Best Buy Previously served as executive vice president, chief operating and chief financial officer of Williams- Sonoma, Inc., and chief financi
Slide 8: Fourth Quarter Sales
Fourth Quarter Sales Same Non-same Impact of Total sales % Exchange store store sales 14th week to y/y at constant translation Total sales Total sales Fourth Quarter sales %1 %, net2 total sales, % exchange rate impact % % (in millions $) Kay -11.0 2.1 3.1 -5.8 862.0 Jared -6.4 0.8 4.2 -1.4 424.5 R2
Slide 9: Q4 Financial Highlights
Q4 Financial Highlights 14 Weeks 13 Weeks (percentages as % of sales) Difference 4Q Fiscal 2018 4Q Fiscal 2017 Gross margin 40.1% 41.7% (160) bps SG&A 27.7% 27.1% 60 bps Other operating income 1.7% 3.0% (130) bps Operating income 14.1% 17.6% (350) bps Earnings per share (diluted) $5.24 $3.92 $1.32 F
Slide 10: Path to Fully Outsourced Credit Model
Path to Fully Outsourced Credit Model Fiscal 2018 Fiscal 2019 Alliance Data purchased prime-only credit Investment funds managed by CarVal Investors to quality accounts receivables purchase non-prime back book receivables Primary Program Seven year agreement to provide credit to Investment f
Slide 11: Credit Outsourcing Financial Impact
Credit Outsourcing Financial Impact (in millions) FY 2018 FY 2019E FY 2020E Operating Profit Impact* $18 ($100-$115) ($100-$110) Operating Profit Impact* ($21) ($118-$133) $0-$5 YoY Change Proceeds $952 $401-$435 ‒ *From a P&L perspective, after the prime and non-prime portfolio of receivables are s
Slide 12: Financial Guidance
Financial Guidance Fiscal 2019 Same store sales (excludes impact of revenue recognition changes) Down low-to-mid single-digit % Total sales $5.9 billion to $6.1 billion GAAP diluted EPS $0.00 to $0.60 Non-GAAP diluted EPS $3.75 to $4.25 Weighted average common shares - basic 55 million to 56 million
Slide 13: Appendix
Appendix ERNEST JONES H.SAMUEL BD rwvs Aven’ LOVE & LIFE THE JEWELLER KAY Pagoda PEOPLES 13
Slide 14: Non-GAAP Financial Measures – 1 of 2
Non-GAAP Financial Measures – 1 of 2 Free cash flow is a non-GAAP measure defined as the net cash provided by operating activities less purchases of property, plant and equipment. Adjusted free cash flow is a non-GAAP measure defined as the net cash provided by operating activities less purchases of
Slide 15: Non-GAAP Financial Measures – 2 of 2
Non-GAAP Financial Measures – 2 of 2 14 weeks ended 53 weeks ended (in millions) February 3, 2018 February 3, 2018 GAAP Diluted EPS $5.24 $7.44 Impact of revaluation of deferred taxes under Tax Cut and Jobs Act ($0.96) ($0.93) Non-GAAP Diluted EPS $4.28 $6.51 Guidance Fiscal 2019 Fiscal 2019 (in mil
Slide 16: Signet Jewelers Ltd.
Signet Jewelers Ltd. ERNEST JONES H.SAMUEL = @awwsAurs JARED THE JEWELLER KAY PagGda —_—~PEOPLES ZALES JEWELERS