Myer Holdings Limited · ASX:MYR
Myer — FY2017 Earnings Presentation
36 slides from Myer's earnings presentation, Sep 14, 2017
Slide 1: FY2017 comparable store sales flat on last year
14 September 2017 For personal use only FY2017 comparable store sales flat on last year FY2017 NPAT of $67.9 million (pre implementation costs and individually significant items) Significant investment and progress to deliver New Myer Myer Holdings Limited (MYR) today announced its financial results
Slide 2: FY2017 result and New Myer progress
reached $177 million during the year now representing a penetration of 8.2% of total sales in July 2017. Similarly Click & Collect has grown strongly to now represent 15% of orders in July 2017. “We continue to make significant progress in our productivity agenda with a 24,368m2 reduction in space r
Slide 3: Finance costs, impairments, dividend and FY2018 outlook
Net finance costs reduced by $3.5 million to $10.8 million largely as a result of lower average net debt. On 20 July 2017, Myer announced the decision to write-down the full carrying value of Myer’s 20% stake in Austradia of $6.8 million after the business was placed into administration and unsucces
Slide 4: Further information and analyst briefing
For further information please contact: Investors: Davina Gunn, General Manager Investor Relations, +61 (0) 400 896 809 Media: Ben Wilson, GRACosway, +61 (0) 407 966 083 Rohan Singh, National Corporate Affairs & Communications Manager, +61 (03) 8667 7019 For personal use only or +61 (0) 417 117 041
Slide 5: Table 1: Profit & Loss Statement
Table 1: Profit & Loss Statement for the 52 weeks to 29 July 2017 FY 2017 FY 2016 Change vs. LY Change vs. LY $m $m ($m) (%) (52 weeks) (52 weeks) For personal use only Total Sales Value 3,201.9 3,245.9 (44.0) (1.4%) Concessions 701.7 600.0 +101.7 +17.0% Myer Exclusive Brands 546.8 610.5 (63.7) (10.
Slide 6: Balance Sheet and Cash flow
Table 2: Balance Sheet as at 29 July 2017 July 2017 July 2016 $m $m Inventory 372 396 Other Assets 30 50 For personal use only Less Creditors (380) (400) Less Other Liabilities (282) (301) Property 24 24 Fixed Assets 436 421 Intangibles 986 1,020 Total Funds Employed 1,186 1,210 Comprising of: Debt
Slide 7: Other Statistics, Shares and Dividends, New Myer target metrics
Table 4: Other Statistics and Financial Ratios FY 2017 FY 2016 Return on Total Funds Employed* 8.9% 9.1% Gearing 9.5% 8.4% Net Debt/EBITDA* 0.6x 0.5x * Calculated on a rolling 12 months basis For personal use only Table 5: Shares and Dividends FY 2017 FY 2016 Shares on Issue 821.3 million 821.3 mill
Slide 8: Richard Umbers and Grant Devonport
For personal use only RICHARD UMBERS GRANT DEVONPORT CEO AND MANAGING DIRECTOR CHIEF FINANCIAL OFFICER
Slide 9: The Agenda
THE AGENDA FY2017 Highlights FY2017 Financial Overview New Myer Progress MYER
Slide 10: FY2017 Highlights
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Slide 13: The Agenda
THE AGENDA FY2017 Highlights FY2017 Financial Overview New Myer Progress MYER
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Slide 15: Operating Gross Profit improvement still work in progress
Operating Gross Profit improvement still work in progress Miv reflects Operating gross profit (S§ millions) - Concession sales now 22% of total sales, up 343 basis points - MEBs down to 17% but improved in 1,256 2H - Higher cosmetics mix impacted (18) National Brands Rate reflects - Improved sourcin
Slide 16: A simpler and more productive business delivers improved CODB
A simpler and more productive business delivers improved CODB Cost of Doing Business ($ millions) CODB margin improved by 54bps to 31.85% ©) 6) 1.020 a . . . a — FY16 Inflation Omni Mares sass& bide Sales Store back Omni Procurement SSO Business FY17 CODB channel and David Volume — office and channe
Slide 17: Individually significant items and implementation costs largely non-cash
Individually significant items and implementation costs are largely non-cash adjustments INDIVIDUALLY SIGNIFICANT ITEMS AND IMPLEMENTATION COSTS $ MILLIONS PRE-TAX POST-TAX Restructuring and redundancy costs 6.3 4.4 Store exit costs and other asset impairments 2.5 1.7 Support office onerous lease ex
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Slide 19: Inventory - improvements in buying and clearance delivering results
Inventory - improvements in buying and clearance are delivering results Inventory was down 6% or $24 million below last year to $372 million Reflects response to increase in concession mix Forward cover reduced by more than one week Open to Buy (OTB) reductions and option reductions ensure not ‘buyi
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Slide 21: The Agenda
MYER THE AGENDA FY2017 Highlights FY2017 Financial Overview New Myer Progress
Slide 22: Underpinned by organisational capability
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Slide 31: September 2017 - Richard Umbers, Grant Devonport
For personal use only 14 SEPTEMBER 2017 RICHARD UMBERS GRANT DEVONPORT CEO AND MANAGING DIRECTOR CHIEF FINANCIAL OFFICER
Slide 32: Appendix: Target metrics
Appendix: Target metrics ‘Target average sales growth greater than 3% between 2016 - 2020 SALES ‘Target greater than 2020 Target EBITDA SALES/ SQM EBITDA growth ahead of sales growth by 2017 Target ROFE greater ROFE pre than 15% by 2020 MYER 20% improvement by Average sales growth from July 2015 up
Slide 33: Appendix: Reconciliation with statutory accounts
Appendix: Reconciliation with statutory accounts $ MILLIONS EBIT ao NPAT Statutory reported result (18.3) Add back: Implementation Costs and Individually Significant Items Restructuring and redundancy costs 6.3 (1.9) AA Store exit costs and other asset impairments 48.1 (4.3) 43.8 Support office oner
Slide 34: Appendix: 2016 on a week basis for comparison purposes
Appendix: 2016 on a 53 week basis for comparison purposes Sales 3,201.9 3,289.6 (2.7%) OGP 1,220.4 1,274.3, (4.2%) OGP margin (%) 38.12 38.74 (62bps) CODB (4,019.8) (1,067.5) +4.5% CODB margin (%) 81.85 BQA5 +60bps Share of Associates (2.5) (0.6) n/m EBITDA 198.1 206.2 (3.9%) EBITDA margin (%) 6.19
Slide 35: Store space movements
For personal use only FY15 Balance Date 815,113 1,133,579 28,619 87,788 116,407 1,249,986 Top Ryde Closure Jul-15 (8,560) (10,915) (10,915) Hobart Werribee Refurb Refurb Nov-15 Jul-16 (547) 6,404 (1,452) 8,327 (1,452) 8,327 • Warringah Refurb (14,412) (21,461) (21,461) Other space reclaims/adjustmen
Slide 36: Disclaimer
Disclaimer Myer shares are traded on the Australian Securities Myer has a Sponsored Level I American Depository Receipt program which trades in the United States on OTC Markets (MYRSY). The financial information provided includes non-IFRS information which has not been audited or reviewed in accorda