Premier Investments Limited · ASX:PMV
Premier Investments — FY2009 Earnings Presentation
37 slides from Premier Investments's earnings presentation, Sep 22, 2009
Slide 1: Premier Investments Limited 2009 Full Year Results
For personal use only Premier Investments Limited 2009 Full Year Results 22 September 2009 0
Slide 2: Agenda
For personal use only Agenda 1 Highlights 2 Financial results 3 Just performance 4 Dividend and capital management 5 Current trading, outlook and vision 6 Additional financial and operational information 1
Slide 3: Agenda
For personal use only Agenda 1 Highlights 2 Financial results 3 Just performance 4 Dividend and capital management 5 Current trading, outlook and vision 6 Additional financial and operational information 2
Slide 4: Highlights of the Year
For personal use only 1 Highlights of the Year Strong profit result – Premier NPAT $82.7 million (FY2008: $41.8m) – Premier EPS 62.4 cents (FY2008: 46.3c) – Greater than expected contribution from Just Group in current market reaffirms the resilience of the Just Group portfolio Shareholders rewarded
Slide 5: Agenda
For personal use only Agenda 1 Highlights 2 Financial results 3 Just performance 4 Dividend and capital management 5 Current trading, outlook and vision 6 Additional financial and operational information 4
Slide 6: Financial Results
For personal use only 2 Financial Results As previously announced, Premier has moved its financial year end to July in line with Just Group’s year end The effect of the change of year end means the Premier FY2009 result includes: – Just Group 52 weeks from 27 July 2008 to 25 July 2009 which provides
Slide 7: Premier—Consolidated Income Statement
For personal use only 2 Premier—Consolidated Income Statement Key Premier performance metrics: –NPAT for FY2009 of $82.7M –EPS for FY2009 of 62.4c per share Premier’s earnings (excluding Just Group) mainly attributable to interest earned over the 13 months (due to change in year end) from Premier ca
Slide 8: Premier—Consolidated Income Statement
For personal use only 2 Premier—Consolidated Income Statement Consolidated period 12 mths ended $000’s 1 July 08 – 25 July 09 30 June 2008 Premier Revenues (ex Just Group) 25,465 64,377 Premier Expenses (ex Just Group) (3,374) (3,106) Just Group EBIT 95,186 - Finance Costs (9,094) (1,792) Underlying
Slide 9: Premier—Summarised Consolidated Balance Sheet
For personal use only 2 Premier—Summarised Consolidated Balance Sheet 25 July 30 June Premier’s strong balance $000’s 2009 2008 sheet gives it capacity Assets and flexibility to pursue Cash and cash equivalents 328,670 790,341 growth and investment opportunities Inventories 69,574 - Plant and Equipm
Slide 10: Premier—Consolidated Cash Flow Statement
For personal use only 2 Premier—Consolidated Cash Flow Statement Consolidated period ended 12 months ended $000’s 25 July 2009 30 June 2008 Net cash flows from (used in) operating activities 77,362 (107,869) Net Capital Expenditure (30,185) - Net cash flow - available-for-sale financial assets (3,00
Slide 11: Agenda
For personal use only Agenda 1 Highlights 2 Financial results 3 Just performance 4 Dividend and capital management 5 Current trading, outlook and vision 6 Additional financial and operational information 10
Slide 12: Overview of Just Group Result
For personal use only 3 Overview of Just Group Result Just Group result is solid: – Diversity of portfolio has allowed Just to ‘weather the storm’ and achieve a balanced result – Just’s FY2009 result has exceeded our expectations on the whole Most brands performed well: – There is an opportunity for
Slide 13: For personal use only
JUST GROUP FY09 RESULTS SEPTEMBER 09 For personal use only JUST GROUP FY09 RESULTS SEPTEMBER 09 12
Slide 14: FY09 Year in review
JUST GROUP FY09 RESULTS SEPTEMBER 09 FY09 Year in review For personal use only 1st Half 2nd Half Economy • Volatile & uncertain • Improving, with assistance from • Consumer confidence low Gov’t stimulus • Consumer confidence rising Focus Areas • Transformation of Portmans • Portmans transformation b
Slide 15: Just Group Results
JUST GROUP FY09 RESULTS SEPTEMBER 09 Just Group Results For personal use only FY09 FY08 Var Sales 844,853 812,486 +4.0% LFL sales -1.6% Gross Profit 500,827 483,359 Gross margin (%) 59.3% 59.5% -21bps Salaries (175,127) (159,251) +10.0% 20.7% 19.6% 113bps Rent (156,013) (145,378) +7.3% 18.5% 17.9% 5
Slide 16: Geographic Summary
JUST GROUP FY09 RESULTS SEPTEMBER 09 Geographic Summary For personal use only Australia New Zealand • LFL sales up 2.3% in the 2nd half (FY09 LFL • 2nd half result was encouraging with LFL sales -0.9%) sales up 4.2% (FY09 LFL sales -2.6%) • Margins benefited from hedgebook • Focus throughout FY09 ha
Slide 17: Other financial highlights
JUST GROUP FY09 RESULTS SEPTEMBER 09 For personal use only Other financial highlights Stock turn – Stock turn of 5.4 times – Continued focus on supply chain enables tight stock control in volatile and uncertain market conditions Refinancing – Just Group refinancing completed on 26 May 2009 – New $12
Slide 18: Just Jeans
JUST GROUP FY09 RESULTS Just Jeans SEPTEMBER 09 Performance For personal use only • Pleasing result in 2nd half and continuing to trade well • LFL sales up 4.5% in 2nd half; 2.7% down for the year • New lower cost Just Shop loyalty program successfully launched, with members retained – more than 650
Slide 19: Jay Jays
Jay Jays JUST GROUP FY09 RESULTS SEPTEMBER 09 Performance For personal use only • Momentum from 1st half continued, with strong 2nd half results • LFL sales up 4.7% in 2nd half; up 2.4% for the year • 4 new stores opened • 2 stores closed • 248 stores at the end of the year • New store format introd
Slide 20: Jacqui E
Jacqui E JUST GROUP FY09 RESULTS SEPTEMBER 09 Performance For personal use only • Acceptable result for the year given relatively strong prior year 2nd half • LFL sales down 4.2% in 2nd half; 2.9% down for the year • Focused on quality of core range and customer service • 3 new stores opened • 3 sto
Slide 21: Portmans
Portmans JUST GROUP FY09 RESULTS SEPTEMBER 09 Performance For personal use only • Very disappointing year • Major transformation required • New leadership and team in place from August 2009 • LFL sales down 10.6% in 2nd half; 12.0% down for the year • 6 new stores opened • 5 stores closed in New Zea
Slide 22: Dotti
Dotti JUST GROUP FY09 RESULTS SEPTEMBER 09 Performance For personal use only • Outstanding performance continued in the 2nd half • LFL sales up 17.8% in 2nd half; up 17.2% for the year • Significant profit growth delivered • 14 new stores opened • 84 stores open at the end of the year LFL Sales 30.0
Slide 23: Peter Alexander
Peter Alexander JUST GROUP FY09 RESULTS SEPTEMBER 09 Performance For personal use only • Solid performance in 2nd half • LFL sales up 0.4% in 2nd half; down 5.5% for the year • Focused on growing highly profitable Australasian multi- channel business • 8 stores opened • 4 stores closed • 27 stores a
Slide 24: Smiggle
Smiggle JUST GROUP FY09 RESULTS SEPTEMBER 09 Performance For personal use only • Strong 2nd half performance • LFL sales up 8.9% in 2nd half; up 0.5% for the year • New leadership established, supply chain issues resolved • Entered New Zealand in November - exceeding expectations • Ongoing focus on
Slide 25: Agenda
For personal use only Agenda 1 Highlights 2 Financial results 3 Just performance 4 Dividend and capital management 5 Current trading, outlook and vision 6 Additional financial and operational information 24
Slide 26: Dividend and Capital Management
For personal use only 4 Dividend and Capital Management Premier Board has balanced the view of increasing the dividend with the view that Premier should maintain its strong cash reserves for opportunities that may arise The Board has determined to: – Maintain and re-affirm the existing dividend poli
Slide 27: Dividend and Capital Management
For personal use only 4 Dividend and Capital Management The dividends paid to shareholders have steadily increased over the past 6 years This year’s dividends have continued to reward Premier Shareholders with real wealth creation 26
Slide 28: Agenda
For personal use only Agenda 1 Highlights 2 Financial results 3 Just performance 4 Dividend and capital management 5 Current trading, outlook and vision 6 Additional financial and operational information 27
Slide 29: Current Trading and Outlook
For personal use only 5 Current Trading and Outlook Current trading: in line with 2H09 Just Group trading for the first 7 weeks since the end of the financial year has been in line with the improving trend of 2H09 and trading is above budget. Performance during the upcoming school holidays, Spring r
Slide 30: Premier Vision
5 Premier Vision Premier’s 3 core pillars of strength work together to create sustainable value For personal use only Owner/operator of great The current year result proves the A businesses strength of the Just Group as a diverse balanced portfolio of brands Premier has approximately $328m cash avai
Slide 31: Agenda
For personal use only Agenda 1 Highlights 2 Financial results 3 Just performance 4 Dividend and capital management 5 Current trading, outlook and vision 6 Additional financial and operational information 30
Slide 32: Results by Half
JUST GROUP FY09 RESULTS SEPTEMBER 09 For personal use only Results by Half 1H09 1H08 Var 2H09 2H08 Var Sales 432,683 424,833 +1.9% 412,170 387,653 +6.3% LFL sales -4.3% +2.0% Gross Profit 256,093 254,006 244,734 229,353 Gross margin (%) 59.2% 59.8% -60bps 59.4% 59.2% 21bps Salaries (86,148) (80,170)
Slide 33: Key operating metrics
JUST GROUP FY09 RESULTS SEPTEMBER 09 For personal use only Key operating metrics FULL YEAR 2009 2008 CHANGE Stores (year end) No. 926 885 +41 Retail space Sqm 134,325 129,356 +3.8% Sales $’000’s 844,853 812,486 +4.0% LFL sales growth % -1.6% -0.3% Gross Profit margin % 59.3% 59.5% -21bps EBITDA $’00
Slide 34: Key operating metrics by half
JUST GROUP FY09 RESULTS SEPTEMBER 09 For personal use only Key operating metrics by half 1st Half 2nd Half H1 2009 H1 2008 CHANGE H2 2009 H2 2008 CHANGE Stores (end) 921 +36 926 +5 Sales $’000’s 432,683 424,833 +1.9% 412,170 387,653 +6.3% LFL sales growth % -4.3% +2.6% +2.0% -2.8% Gross Profit margi
Slide 35: Sales & stores
JUST GROUP FY09 RESULTS SEPTEMBER 09 For personal use only Sales & stores Full Year Stores Sales Growth LFL Sales AUD % % Just Jeans 264 215,962 -2.0% -2.7% Jay Jays 248 246,592 +5.6% +2.4% Portmans 133 126,459 -9.5% -12.0% Jacqui E 108 88,845 -1.9% -2.9% Dotti 84 82,347 +30.6% +17.2% Peter Alexande
Slide 36: Sales & stores
JUST GROUP FY09 RESULTS SEPTEMBER 09 For personal use only Sales & stores 1st Half 2nd Half Stores Sales Growth LFL Sales Stores Sales Growth LFL Sales AUD % % AUD % % Just Jeans 269 107,084 -8.0% -9.0% 264 108,878 +4.9% +4.5% Jay Jays 250 132,058 +5.2% +0.7% 248 114,534 +6.1% +4.7% Portmans 135 64,
Slide 37: Store movements
JUST GROUP FY09 RESULTS SEPTEMBER 09 Store movements For personal use only Stores Openings Closures Stores Change in Beg FY09 FY09 End Space Just Jeans 269 3 8 264 -0.8% Jay Jays 246 4 2 248 +3.0% Portmans 132 6 5 133 +1.8% Jacqui E 108 3 3 108 -0.3% Dotti 70 14 0 84 +20.6% Peter Alexander 23 8 4 27