Slide 1: Investor Presentation: Results for the year ended 31 March 2012
Investor Presentation Results for the year ended 31 March 2012
Slide 2: Agenda
AGENDA 1. INTRODUCTION AND OPERATING REVIEW Enter text here Godfrey Davis (Chairman) 2. FINANCIAL REVIEW Roger Mather (Finance Director) 3. STRATEGY AND OUTLOOK Bruno Guillon (Chief Executive) 2
Slide 3: Revenue History
REVENUE HISTORY 5 Year Revenue and Profit Development Enter text here £million – In FY2012, total revenue increased by 38% to £168.5 million and profit before tax increased by 54% to £36.0 million – Revenue compound annual growth rate of 35% between 2008 and 2012 – PBT compound annual growth rate of
Slide 4: Significant Opportunity to Develop Mulberry in International Markets
SIGNIFICANT OPPORTUNITY TO DEVELOP MULBERRY IN INTERNATIONAL MARKETS Revenue by Region Enter text here (2011/12) International revenue has grown 61% from £40.5 million in 2010/11 to £65.2 million in 2011/12, however remains lower than UK revenue, demonstrating the scale of the international opportun
Slide 5: Operating Review
OPERATING REVIEW Enter text here 5
Slide 6: Worldwide Retail Footprint March 2012
WORLDWIDE RETAIL FOOTPRINT MARCH 2012 Department store Free Standing Changes from Shop-in-Shop Stores Total 31 March 2011 Own Stores UK Full Price 26 10 36 +1 UK Airport - 5 5 - UK Outlet - 4 4 - Europe 1 3 4 +2 USA - 3 3 +1 Total Own Stores 27 25 52 +4 Partner Stores Scandinavia - 9 9 - Other Europ
Slide 7: Spring Street, New York
SPRING STREET, NEW YORK Enter text here 7
Slide 8: Harbour City, Hong Kong
HARBOUR CITY, HONG KONG Enter text here 8
Slide 9: Stratford, London
STRATFORD, LONDON Enter text here 9
Slide 10: Retail Performance Year Ended 31 March 2012
RETAIL PERFORMANCE YEAR ENDED 31 MARCH 2012 Total revenue Growth LFL Growth £ million % % UK 77.2 30% 27% Europe 2.6 53% 7% North America 5.4 69% 20% Enter text here Online 14.5 58% 56% Total 99.7 36% 26% 10
Slide 11: Wholesale Shipments to Third Parties
WHOLESALE SHIPMENTS TO THIRD PARTIES YEAR ENDED 31 MARCH 2012 Total wholesale shipments up Total wholesale shipments up 43% [ ]% £3.0m £68.8m £1.5m £48.1m £25.1m UK (up 6%) £1.7m £1.2m Europe (up 53%) £14.8m Asia Pacific (up 70%) £22.7m £14.8m North America (up 25%) ROW (up 76%) £15.6m £16.5m 11
Slide 12: Other Operating Highlights
OTHER OPERATING HIGHLIGHTS YEAR ENDED 31 MARCH 2012 – Bruno Guillon appointed CEO, Godfrey Davis moving to Non-Executive Chairman – Alexa bag family consolidated into the core product range – UK factory extension completed, increasing UK production capacity by 30% and creating 60 jobs – Upgraded sup
Slide 13: Financial Review
FINANCIAL REVIEW Enter text here 13
Slide 14: Revenue by Region (Value of Sales)
REVENUE BY REGION (VALUE OF SALES) £168.5m £3.2m £8.4m £26.0m £121.6m £1.8m £27.6m UK £5.2m £15.5m Europe £18.1m £72.1m Asia Pacific £1.2m £2.3m £3.7m North America £9.4m £103.3m £81.0m (61%) ROW (67%) £55.5m (77%) 14
Slide 15: Revenue Growth Analysis by Region
REVENUE GROWTH ANALYSIS BY REGION (VALUE OF SALES) £3.2m £1.4m £168.5m £10.5m £9.5m £22.3m £121.6m International: £24.6m (52%) 2010/11 UK Europe Asia North America Other 2011/12 (+28%) (+52%) (+68%) (+62%) (+78%) 15
Slide 16: Revenue by Channel (Value of Sales)
REVENUE BY CHANNEL (VALUE OF SALES) £168.5m £68.8m £121.6m (41%) £48.1m (40%) Wholesale / Franchise partner £72.1m £21.0m Retail (29%) £99.7m (59%) £73.5m £51.1m (60%) (71%) 16
Slide 17: Revenue by Product (Value of Sales)
REVENUE BY PRODUCT (VALUE OF SALES) Growth Rates (2010/11-2011/12) Revenue by Product (2011/12) Revenue by Product (2010/11) 17
Slide 18: Income Statement for the Year Ended 31 March 2012
INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2012 £ million 31 March 2012 31 March 2011 Variance Revenue 168.5 121.6 +38% Gross profit 111.5 79.5 +40% Gross margin 66.2% 65.4% Administrative expenses (net) (76.1) (56.4) +35% Exceptional costs - (0.1) n.a. Enter text here Operating profit 35.4 23.0 +
Slide 19: Net Administrative Expenses
NET ADMINISTRATIVE EXPENSES FOR THE YEAR ENDING 31 MARCH 2012 £2.5m £76.1m £3.3m £3.8m £4.3m £5.7m £56.5m 19
Slide 20: Balance Sheet as at 31 March 2012
BALANCE SHEET AS AT 31 MARCH 2012 Balance Sheet (£ million) 31 March 2012 31 March 2011 Variance Fixed assets and investments 28.6 20.6 +38% Inventories 32.5 22.4 +45% Trade and other receivables 14.9 12.2 +22% Cash 27.3 21.4 +28% Current liabilities (40.8) (34.6) +18% Enter text here Shareholders’
Slide 21: Capital Expenditure Analysis
CAPITAL EXPENDITURE ANALYSIS 2011/2012 £18.1m £0.7m Store expenditure £3.7m £13.3m Kensington Church Street £0.7m £12.4m £0.6m £0.9m £1.0m £4.7m Factory extension / improvements £2.9m £0.4m £1.6m New factory £7.0m Systems development £8.6m* £6.9m Other £4.1m *Based on known store openings at June 20
Slide 22: Outlook and Strategy
OUTLOOK AND STRATEGY Enter text here 22
Slide 23: Current Trading and Outlook
CURRENT TRADING AND OUTLOOK – Solid business foundation with significant long term opportunity to participate in the global luxury market – Launched Del Rey bag family on 14 May 2012. Both Del Rey and existing core products are performing well – Opened three new stores (Zurich, New Jersey and Seoul)
Slide 24: Strategic Themes
STRATEGIC THEMES – Reinforce Mulberry’s luxury brand positioning through product, store concept, marketing and people – Continue to internationalise the brand while remaining true to English heritage Brand – Invest to raise brand awareness and refine products, service and quality to meet the needs o
Slide 25: Product Development in 2012/13
PRODUCT DEVELOPMENT IN 2012/13 – Quality and innovation in bags: Three year product mix development 77% of revenue in 2011/12 100% 100% 100% – Invest in other product categories: 6% 7% 5% 6% 5% 5% – Footwear 16% 13% 13% – Apparel – Belts, scarves and other fashion accessories – Men’s accessories 71%
Slide 26: Operations in 2012/13
OPERATIONS IN 2012/13 – Commitment to continued investment in people, product, marketing, systems and logistics to drive business growth – Careful choice of strategic store locations will mean a measured international retail rollout – New web platform launch to drive even greater functionality and c
Slide 27: Contacts
CONTACTS Pelham Bell Pottinger 0207 861 3232 Daniel de Belder Mulberry Investor Relations 0207 605 6771 Amelia Fincher Altium 0207 484 4040 Ben Thorne Katherine Hobbs Barclays 0207 623 2323 Jon Bathard-Smith Enter text here Nicola Tennent mulberry.com blog.mulberry.com Twitter @mulberry_editor faceb