Premier Investments Limited · ASX:PMV
Premier Investments — H1 2012 Earnings Presentation
29 slides from Premier Investments's earnings presentation, March 2012
Slide 1: Premier Investments Limited Results 1H FY12 Overview
Premier Investments Limited Results 1H FY12 Overview March 2012
Slide 2: Agenda
Agenda 1 Premier Investments Consolidated 1HFY12 Overview 2 Just Group Results 1H FY12 Overview 3 Just Group Financial Results Industry Structure Pressures to Continue and Key Mitigation Strategies 4 Accelerated 5 Premier Retail Investing in Growth 6 CODB Reductions to continue 7 Brand by Brand Perf
Slide 3: Financial Results
1 Financial Results Group Profit: - Profit before tax of $54.1 million - Profit after tax of $38.5 million, down 2.4% on pcp Premier Retail (The Just Group) contribution to Premier performance: - EBIT of $51.3 million, down 2.3% on pcp Premier investment income up 6.0% on pcp – Strong dividend incom
Slide 4: Premier—Consolidated Income Statement
1 Premier—Consolidated Income Statement 26 Weeks 26 Weeks $m’s to 28 Jan 2012 to 29 Jan 2011 Premier Revenues (ex Just Group) 10.6 10.0 Premier Expenses (ex Just Group) (2.3) (1.9) Just Group EBIT 51.3 52.5 Finance Costs (5.5) (4.4) Profit before income tax 54.1 56.2 Income tax expense (15.6) (16.8)
Slide 5: Premier—Summarised Consolidated Balance Sheet
1 Premier—Summarised Consolidated Balance Sheet $m’s 28 Jan 2012 30 Jul 2011 Assets Cash and cash equivalents 303.5 307.8 Inventories 76.0 73.4 Plant and equipment 80.4 84.8 Other assets 28.2 37.0 Available-for-sale financial assets 93.1 104.5 Intangible assets 854.5 854.5 Total assets 1,435.7 1,462
Slide 6: Premier—Consolidated Cash Flow Statement
1 Premier—Consolidated Cash Flow Statement 26 Weeks 26 Weeks $m’s to 28 Jan 2012 to 29 Jan 2011 Net cash flows from operating activities before tax payments 55.8 62.2 Net Capital Expenditure (6.9) (13.3) 48.9 48.9 Tax Payments (10.3) (5.4) Payment for the settlement of Smiggle deferred payable - (18
Slide 7: Just Group Results 1H FY12 Overview
2 Just Group Results 1H FY12 Overview EBIT on track at $51.3 million EBIT margin up 37bps to 11.8% Strong cost out performance Solid margin performance Clean inventory Strong internet growth- All 7 brands online Strong sales performance – Peter Alexander Strong sales performance – Smiggle Portmans p
Slide 8: Just Group Financial Results
3 Just Group Financial Results 1H12 1H11 Var Sales* 433,823 458,385 -5.4% LFL sales -7.1% -5.1% Gross Profit* 267,435 284,206 -5.9% Gross margin (%)* 61.6% 62.0% -36bps Salaries (98,848) (103,439) -4.4% 22.8% 22.6% 22bps Rent (87,768) (88,611) -1.0% 20.2% 19.3% 90bps Advertising & Direct Marketing (
Slide 9: Industry Structure Pressures to Continue and Key Mitigation Strategies Accelerated
4 Industry Structure Pressures to Continue and Key Mitigation Strategies Accelerated Industry structure pressures to continue Key mitigation strategies accelerated Rent increases not in line with • Close loss making and marginal stores centre performance • Change the negotiation framework to be abou
Slide 10: Premier Retail Investing in Growth: The Internet
5 Despite Industry pressures—Premier Retail Investing in Growth The Internet—material investment and growth set to continue Outstanding 1st half performance–100% sales growth All Brands online–all skus online All Brands to be on world class platform by Christmas 2012 New Dotti Internationally compet
Slide 11: Dotti New Home Page
5 Dotti New Home Page Customer Service Create Account / Login | Find what you're looking for dotti Search Products a Wishlist (16) / Shopping Bag (22) K NEW ARRIVALS CLOTHING ACCESSORIES SHOES ‘SALE GIFT CARDS DOTTI SOCIAL ‘STORES HARLOW PETAL DRESS 4. BACK 1 CLOTHING D ORESSES b HAINLOW PETAL ORES
Slide 12: Portmans Street Posters
@ Portmans Street Posters portmans ADEY UEC CE2SeAm COCK BetENWA COMUCRO RREMIER __ eee Just Jeans, JACQUIE Gaysay portmans peteralexander dott Smniggie
Slide 13: Jay Jays
r— denim 2 for 60 4 *selected styles only Li | Just Jeans JACQUIE Hurry offer ends March 6th 2012. portmans peteralexander dott Snniggle, Iris JUS GROUP 12
Slide 14: Premier Retail Investing in Growth: Store Growth Accelerating
5 Despite Industry Pressure, Premier Retail Investing in Growth Smiggle Australia & New Zealand New store growth to accelerate Expectations upgraded to 70 to 100 new stores over the next three years Dedicated leasing team to enable growth 11 stores opened in Summer 11 for Winter 12 benefit Up to 10
Slide 15: Premier Retail Investing in Growth: Smiggle Singapore
5 Despite Industry Pressure, Premier Retail Investing in Growth Smiggle Singapore Exceptional performance 5 stores opened in Summer 2011 Five of top 10 Smiggle stores in our network are in Singapore 7 stores now trading with eighth store due to open in April 2012 3 more stores to open in Winter 12 3
Slide 16: Premier Retail Investing in Growth: Peter Alexander Singapore
5 Despite Industry Pressure, Premier Retail Investing in Growth Peter Alexander Singapore Internet launch to Singapore May 2012 – peteralexander.com.sg Evaluating opportunity for first store opening late 2012/early 2013 in flagship location 15
Slide 17: Smiggle Asia
5 Despite Industry Pressure, Premier Retail Investing in Growth Smiggle Asia – represents an exciting growth path for our company Represents a major growth opportunity for Premier Retail (not available to many other listed retailers) Market studies complete. Korea, Japan, China (incl. Hong Kong), Ma
Slide 18: CODB Reductions to Continue
6 CODB Reductions to Continue Material 1H FY12 performance Material opportunity in calendar 12 20 non-merchandise contracts under negotiation 30 CODB projects organisation wide underway New merchandise trading terms implemented January New non merchandise trading terms implemented January FY13 CODB
Slide 19: Year Cost History 1st half
6 5 Year Cost History 1st half (1) (2) (3) • Total store rental growth slowed to • Store wages decreased by 5.2% in • Other CODB decreased by 17.5% 2.7% in 1H12 1H12. in 1H12 • Established brands rent decreased • Established brands store salaries • Discretionary cost reductions and by 2.5%, with imp
Slide 20: The Path to Growth is Clear
6 Despite Industry Pressure, Premier Retail Investing in Growth The Path to Growth is clear… Core brand rejuvenation to continue, whilst store rationalisation takes place Cost efficiency to accelerate Internet investment accelerating whilst core brand store rationalisation continues 100 new stores i
Slide 21: Brand by Brand Performance – Smiggle
7 Brand by Brand Performance – Smiggle 1H FY12 Sales Merchandise & Marketing initiatives Sales: Dedicated management team led by Tom Kimberley $48.1m +18.1% on LY Excellent Results across Aust and NZ 21 stores opened* Singapore performance +14 in Aust exceptional +7 in Singapore Consistent innovatio
Slide 22: Brand by Brand Performance – Peter Alexander
7 Brand by Brand Performance – Peter Alexander 1H FY12 Sales Merchandise & Marketing initiatives Calendar 12 Sales: Dedicated Management team led $44.1m by Julie Otter +15.2% on LY Continuing to deliver outstanding results from new and existing 7 stores opened* stores 46 stores at end of Double digi
Slide 23: Brand by Brand Performance – Jay Jays
7 Brand by Brand Performance – Jay Jays 1H FY12 Sales Merchandise & Marketing initiatives Sales: Deanna Moylan appointed 1st $102.1m July 2011 -15.0% on LY Experienced new team in place 11 stores closed* Product and brand 3 stores opened* transformation underway 235 stores at end of Lifting fashiona
Slide 24: Brand by Brand Performance – Jacqui E
7 Brand by Brand Performance – Jacqui E 1H FY12 Sales Merchandise & Marketing Initiatives Sales: Karen Russell appointed on 1st August 2011 $37.0m Customer research confirmed the -14.6% on LY strategic direction of the brand 0 stores closed* Product and brand transformation 0 store opened* underway
Slide 25: Brand by Brand Performance – Dotti
7 Brand by Brand Performance – Dotti 1H FY12 Sales Merchandise & Marketing Initiatives Sales: David Bull (most experienced merchant dedicated to Dotti since1st October 2011) $47.4m -11.6% on LY Brand transformation underway Internationally competitive website launched 2 stores closed* March 2012 1 s
Slide 26: Brand by brand performance – Portmans
7 Brand by brand performance – Portmans 1H FY12 Sales Merchandise & Marketing initiatives Sales: Jade Holgate appointed 1st October 2011 $52.0m -5.8% on LY Internet Sales growth (launched in Sept 2011) Positive LFL Refreshed store layout with 9 stores closed* clearer parent department 1 stores opene
Slide 27: Brand by Brand Performance – Just Jeans
7 Brand by Brand Performance – Just Jeans 1H FY12 Sales Merchandise & Marketing initiatives Sales: Merchandise team led by Kathy Cocovski $103.2m -3.8% on LY Continued innovation in denim - luxe denim 6 store closed* - coloured denim and chinos 0 stores opened* Sourcing initiatives delivering improv
Slide 28: Outlook
8 Outlook All of our strategic review initiatives and core growth investments are on track and set to benefit our Winter 12 result. Despite these initiatives and investment, the short term headwinds facing our existing portfolio remain challenging. The company reaffirms the bottom end of its full ye
Slide 29: Dividends and Capital Management
9 Dividends and Capital Management The Premier Board has declared an interim fully franked dividend of 18 cps This represents a payout of 73% of earnings, above the minimum of our policy Premier Board made the dividend decision after reviewing - The underlying earnings of the group - Premier Retail