Slide 1: Kathmandu - FY11 Results Presentation
For personal use only Kathmandu - FY11 Results Presentation 1
Slide 2: Contents
Contents For personal use only • Results Overview • Key Line Items • Country Results • Cash Flow, Balance Sheet, Dividend • Growth Strategy Update • FY12 Outlook • Questions 2
Slide 3: Results Overview
For personal use only Results Overview
Slide 4: Results Overview: Highlights
Results Overview: Highlights For personal use only Financial Highlights • Record sales ($306.1m) and earnings result (EBIT $64.0m) • Strong growth in gross margins (230bps improvement) • Improved EBIT margins (120bps improvement) • Same store sales growth 15.7% (12.9% at constant exchange rates) und
Slide 5: Results Overview: Year-On-Year
Results Overview: Year-On-Year For personal use only Results Overview NZ $m FY11 FY10 DIFF $ DIFF % Sales 306.1 245.8 60.3 24.5% Gross Profit 200.6 155.3 45.3 29.2% Gross Profit Margin 65.5% 63.2% Operating expenses*1 (129.2) (100.9)*2 (28.3) 28.0% EBITDA 71.4 54.4 17.0 31.3% EBITDA margin % 23.3% 2
Slide 6: Key Line Items
For personal use only Key Line Items
Slide 7: Sales
Sales For personal use only SALES: up 24.5% to $306.1m SALES*1 • Sales growth year on year:*2 Australia New Zealand United Kingdom AU 26.3%, NZ 17.0%, UK (7.1)% $306.1m • At constant exchange rates sales $8.2m growth $54.4m / 21.6% $245.8m 2.7% $215.6m $9.6m $110.3 • Split of sales between total of
Slide 8: Same Store Sales Growth
Same Store Sales Growth For personal use only AU NZ UK GROUP 18.6% 17.7% 15.8% 14.4% 15.7% 12.4% 12.3% 12.1% 6.5% 5.8% 0.8% 0.6% 1.3% -1.3% -7.1% -13.2% 1H FY11 2H FY11 FY11 FY10 Comparison • Full year same store sales growth 15.7% (12.9% on constant currency basis) • First half year 12.1%, second h
Slide 9: Gross Profit Margin %
Gross Profit Margin % For personal use only GROSS PROFIT MARGIN % AU NZ UK GROUP 68.8% • Gross Profit margin 230 bps 66.7% 65.5% 65.5% 64.4% 63.2% above FY10 62.0% 60.6% 60.3% • Gross Profit margin variations 57.2% 57.4% ◦ Sales growth primarily in 55.8% apparel product categories with higher associ
Slide 10: Cost of Doing Business
Cost of Doing Business For personal use only OPERATING EXPENSES: up 28.0% to $129.2m • Operating expense increase NZ $m FY11 FY10 DIFF $ DIFF % impacted by: Rent 31.9 25.6 6.3 24.6% ◦ Supply chain expenses due to stock % of Sales 10.4% 10.4% volumes (up c. 0.3% of sales) ◦ On-going increased proport
Slide 11: Earnings
Earnings For personal use only EBITDA up 31.3% to $71.4m EBIT up 32.0% to $64.0m NPAT up 55.2% to $39.1m EBITDA $m EBIT $m 64.0 71.4 54.4 48.5 48.6 43.0 FY09 FY10 FY11 FY09 FY10 FY11 22.5% 22.1% 23.3% 19.9% 19.7% 20.9% EBITDA margin % EBIT margin % NPAT $m*2,3,4 39.1 25.2 14.9 FY09 FY10 FY11 1. EBIT
Slide 12: Country Results
For personal use only Country Results
Slide 13: Australia
Australia For personal use only SALES: up 26.3% to A$143.3m Same store sales growth: 14.4% EBITDA (trading result): up 43.8% to A$33.8m • 11 New Stores opened: A $m FY11 FY10 DIFF ◦ 3 in 1H FY11: Logan, Wollongong, and Perth Harbour Town (Outlet) Sales 143.3 113.5 26.3% ◦ 8 in 2H FY11: Whitford City
Slide 14: New Zealand
New Zealand For personal use only SALES: up 17.0% to NZ$110.3m Same store sales growth: 12.3% EBITDA (trading result): up 10.8% to NZ$30.7m • 3 New Stores opened (all in 2H FY11): NZ $m FY11 FY10 DIFF ◦ Papanui, Whakatane, and Ashburton Sales 110.3 94.3 17.0% • Refurbishments / Relocations (all in 1
Slide 15: United Kingdom
United Kingdom For personal use only SALES: down 7.1% to UK£3.9m Same store sales growth: (7.1)% EBITDA (trading result): down 80.0% to UK£(0.9)m UK £m FY11 FY10 DIFF • Total operating expenses (excl. depreciation): ◦ FY11 80.5% of sales Sales 3.9 4.2 (7.1)% ◦ FY10 69.1% of sales Same store sales gr
Slide 16: Cash Flow, Balance Sheet, Dividend
For personal use only Cash Flow Balance Sheet Dividend
Slide 17: Cash Flow
Cash Flow For personal use only NZ $m FY11 FY10 • Working capital change primarily due EBITDA 71.4 54.4 to investment in inventory • Capital expenditure reduced vs FY10 Change in working capital (8.5) (1.8) ◦ New stores capex: $9.0m for 14 new stores and 2 relocations (FY10 Change in other non-cash
Slide 18: Balance Sheet
Balance Sheet For personal use only • Year-end inventories per store +25.9%: NZ $m FY11 FY10 ◦ FY11 $0.486m ◦ FY10 $0.386m Inventories 54.0 37.4 ◦ FY09 $0.483m Property, plant and equipment 32.8 28.0 • Intra-year debt levels: Intangible assets 243.7 241.8 ◦ Peak debt levels YOY increased $16m Other
Slide 19: Dividend
Dividend For personal use only • NZ 7.0 cents per share final dividend, full year payout NZ 10.0 cents per share. • Payout ratio remains within expected 50 to 60% of NPAT • AU final dividend will be fully franked and all AU dividends are expected to be fully franked going forward • NZ dividend fully
Slide 20: Foreign Currency
Foreign Currency For personal use only FORWARD HEDGING POSITION FY12 FY13 • Effective US$ hedge rates FY11: ◦ A$/US$ 0.852 FY11 vs 0.812 FY10 A$ / US$ % covered 90%+ 15%+ ◦ NZ$/US$ 0.683 FY11 vs 0.680 FY10 Effective Rate 0.960 1.013 • Forward Hedging Position: ◦ Longest dated hedges September 2013 N
Slide 21: Growth Strategy Update
For personal use only Growth Strategy Update
Slide 22: Growth Strategy Update
Growth Strategy Update For personal use only Kathmandu core growth paths continue to provide varied strategic choices GROWTH STRATEGY UPDATE • 150 remains the initial store rollout target for Australia and New Zealand New store • 15 new stores planned in • Secured 4 so far rollout FY12 • Moving to m
Slide 23: Growth Strategy Update (continued)
Growth Strategy Update (continued) For personal use only Kathmandu core growth paths continue to provide varied strategic choices GROWTH STRATEGY UPDATE • Greater membership benefits/incentives introduced Summit • Targeting one million • Enhanced CRM/data mining capabilities/better targeting of offe
Slide 24: Sustainability
Sustainability For personal use only Launched Sustain the Dream Plan aimed at inspiring adventure and enabling sustainable outdoor lifestyles 4 priorities (with actions underway): • Minimise environmental footprint - removal of plastic shopping bags, product packaging initiatives • Respect human rig
Slide 25: FY12 Outlook
For personal use only FY12 Outlook
Slide 26: FY12 Outlook
FY12 Outlook For personal use only Kathmandu • Continue strategies that are working (refer growth strategy update slides) • Complete rollout of the refreshed brand identity (recognises Kathmandu is a brand - that operates it’s own retail stores) • Increase advertising spend $ and thus share of voice
Slide 27: Questions
For personal use only Questions
Slide 28: Appendix – Reconciliation of Country Trading Results
Appendix – Reconciliation of Country Trading Results For personal use only Reconciliation to annual report (NZ $m) Australia (NZ $m) FY11 FY10 New Zealand (NZ $m) FY11 FY10 Segment profit 33.1 13.0 Segment profit 27.3 36.2 Net interest 2.4 6.0 Net interest 1.9 1.4 Facility fees 1.2 0.9 Facility fees