Signet Jewelers Limited · NYSE:SIG
Signet Jewelers — Signet Christmas Trading Conference Call (January 2010)
18 slides from Signet Jewelers's conference presentation, Jan 12, 2010
Slide 1: Fiscal 2010 Holiday Trading Statement
Fiscal 2010 Holiday Trading Statement January 12, 2010
Slide 2: Safe Harbor Statement
Safe Harbor Statement (Private Securities Litigation Reform Act of 1995) This presentation include 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 as well as on assumptions m
Slide 3: Further Progress in Executing Strategy
Further Progress in Executing Strategy Ö Maximize profit and cash flow Ö expect income before tax of $222.5 million to $232.5 million Ö expected earnings per share of $1.76 to $1.84 Ö Strengthen balance sheet Ö net debt anticipated to be reduced by over $420 million * Ö Reduce business risk Ö Focus
Slide 4: Further Improvement in Sales Trend
Further Improvement in Sales Trend Holiday Fiscal 2010 Year to Date US UK Group US UK Group % % % % % % Same store sales 7.6 (0.8) 5.6 (0.1) (2.2) (0.6) Change in store space (0.6) 0.1 (0.5) 0.7 2.4 1.1 Constant exchange rate 7.0 (0.7) 5.1 0.6 0.2 0.5 Exchange impact - 9.3 2.2 - (10.1) (2.4) As repo
Slide 5: Good Progress Against 2010 Financial Objectives
Good Progress Against 2010 Financial Objectives Ö Gross merchandise margin expectations Ö US up about 30 bpts: UK down about 20 bpts Ö Objective • US: at least at last year’s level • UK: little below last year Ö Slightly ahead of US cost reduction program Ö $100 million full year objective* Ö UK cos
Slide 6: Good Progress Against 2010 Financial Objectives
Good Progress Against 2010 Financial Objectives Ö Capital expenditure Ö fiscal 2010 about $49 million (fiscal 2009: $114.9 million) Ö fiscal 2010 target $55 million Ö 20% IRR criteria maintained Ö Inventory Ö anticipated reduction in fiscal 2010 of $160 million to $180 million Ö fiscal 2010 objectiv
Slide 7: Continued Improvement in Cash Flow & Net Debt
Continued Improvement in Cash Flow & Net Debt Forecast Fiscal 10 Fiscal 09 $m $m Adjusted net income† 260-270 259.8 Decrease / (increase) in operating assets* Over 215 (28.7) Investing activities* ~(35) (74.3) Investment in new US stores ~(30) (105.6) Dividends - (123.8) Issue of shares 1 - Foreign
Slide 8: US Jewelry
US Jewelry “Further growth from a proven strategy” 8
Slide 9: Strong Performance Over Holiday Season
Strong Performance Over Holiday Season Holiday Fiscal 2010 Year to Date Same store ASP Same store ASP sales sales Kay 8.4% $264 4.4% $305 Regional Brands 2.3% $278 (4.5)% $327 Jared 8.6% $633* (6.9)% $707* US division 7.6% (0.1)% Space change (0.6)% 0.7% Total sales US division 7.0% 0.6% Expected gr
Slide 10: Management Actions Driving Holiday Sales
Management Actions Driving Holiday Sales Ö Well trained and motivated staff Ö Increased selection of differentiated ranges Ö Robust, flexible supply chain Ö Additional targeted promotional activity Ö National television impressions broadly similar to last year Ö Increased focus on differentiated mer
Slide 11: In-house Receivables a Competitive Advantage
In-house Receivables a Competitive Advantage Ö Forecast credit metrics for fiscal 2010 Ö participation up 10 bpts Ö approval rate up by about 200 bpts Ö net bad debt to total sales about 5.7% • up about 80 bpts Ö collection rate about 12.9% - down by about 50 bpts Ö Performance driven by macro-econo
Slide 12: UK Jewelry
UK Jewelry “Making existing space work harder” 12
Slide 13: Satisfactory Performance Over Holiday Season
Satisfactory Performance Over Holiday Season Holiday Fiscal 2010 Year to Date Same store ASP Same store ASP sales sales H.Samuel (1.5)% £52 (1.6)% £52 Ernest Jones 0.2% £203* (3.1)% £226* UK division (0.8)% (2.2)% Space change 0.1% 2.4% Total sales UK division (0.7)% 0.2% at constant exchange rates
Slide 14: Management Actions Driving Holiday Performance
Management Actions Driving Holiday Performance Ö Further improvements in customer service Ö Merchandise successes Ö H.Samuel: charm bracelets and diamonds Ö Ernest Jones: charm bracelets and prestige watches Ö Leverage of marketing scale Ö utilization of 10 second TV advertising spots by H.Samuel Ö
Slide 15: Outlook for Fiscal 2011
Outlook for Fiscal 2011 Ö Economic environment Ö better than 12 months ago, but still challenging, particularly in the UK Ö Operating strategy largely unchanged Ö focus on reinforcing competitive advantages Ö tight control of gross merchandise margin, costs and inventory Ö disciplined approach to in
Slide 16: Competitive Advantages Reinforcing Sector Leadership
Competitive Advantages Reinforcing Sector Leadership Ö Gaining profitable market share in sector undergoing accelerated rationalization Ö Effective strategy in tough environment Ö Strong balance sheet and cash flow Ö Strengthening significant competitive advantages Ö Well positioned for recovery 16
Slide 17: Regulation G
Regulation G JEWELERS
Slide 18: Net Debt
Net Debt Net debt is a “non-GAAP financial measure”. Management considers it to be a useful additional measure for analyzing and explaining changes and trends in Signet’s financial position. It is calculated as set out below: At January 31, 2009 $million Long-term debt 380.0 Loans & overdrafts 187.5
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