Slide 1: Preliminary Results for the Year Ended 31 March 2014
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2014
Slide 2: Agenda
AGENDA 1. FINANCIAL REVIEW 2. STRATEGY 3. CURRENT TRADING AND OUTLOOK 2
Slide 3: Highlights for the Year Ended 31 March 2014
HIGHLIGHTS FOR THE YEAR ENDED 31 MARCH 2014 TOTAL REVENUE DOWN 1% TO £163.5 MILLION (2013: £165.1 MILLION) ― Retail sales up 2%, down 3% like-for-like ― UK Retail unchanged ― International Retail up 11% ― Wholesale down 6% FINANCIAL HIGHLIGHTS ― Results in line with analysts’ expectations ― Profit b
Slide 4: 1. Financial Review
MULBERRY . FINANCIAL REVIEW Oi
Slide 5: Revenue by Channel
REVENUE BY CHANNEL VALUE OF SALES £165.1m £163.5m (down 1%) RETAIL UP 2%, DOWN 3% LIKE-FOR-LIKE: £57.9m £54.5m ― UK Retail unchanged ― International Retail up 11% (35%) (33%) ― Online down 11% against strong growth last year WHOLESALE DOWN 6%: £107.2m £109.0m ― Slower UK and Asian sales as a result
Slide 6: Income Statement
INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2014 £ MILLION 31 MARCH 2013 31 MARCH 2014 VARIANCE Revenue 165.1 163.5 -1% Gross profit 104.5 103.5 -1% Gross margin 63.3% 63.3% Other operating expenses (net) (79.0) (86.4) +9% Exceptional items* - (3.4) Operating profit 25.5 13.7 -46% Operating margin
Slide 7: Net Operating Expenses
NET OPERATING EXPENSES FOR THE YEAR ENDED 31 MARCH 2014 90 £3.4m £89.7m 80 £4.8m £1.6m £0.9m £79.0m 70 60 (£m) 50 40 30 20 10 0 2012/13 New store Employee Other Non-recurring 2013/14 operating costs costs costs Note: New store operating costs include employee costs related to the new stores 7
Slide 8: Balance Sheet
BALANCE SHEET AS AT 31 MARCH 2014 BALANCE SHEET (£ MILLION) 31 MARCH 2013 31 MARCH 2014 VARIANCE Fixed assets and investments 39.7 43.3 +9% Inventories 35.7 33.8 -5% Trade and other receivables 14.2 13.6 -4% Cash 21.9 23.4 +7% Current liabilities (32.8) (30.1) -8% Net assets 78.7 84.0 +7% 8
Slide 9: Capital Expenditure Analysis
CAPITAL EXPENDITURE ANALYSIS FOR THE YEAR ENDING 31 MARCH 2014 25 £16.9m £15.5m £18.0m 20 £1.8m § £0.8m § § £0.9m £0.2m (£m) 15 £2.9m £0.7m £2.8m £14.6m £4.4m £4.4m 10 £8.8m £8.1m 5 0 Total 2012/13 Total 2013/14 Projected total 2014/15 Store expenditure Factories Systems development Other 9
Slide 10: 2. Strategy
MULBERRY 2. STRATEGY
Slide 11: Key Priorities
KEY PRIORITIES 1. RE-FOCUS THE PRODUCT OFFERING 2. STORES 3. OPERATIONS 11
Slide 12: 1. Re-focus the Product Offering
1. RE-FOCUS THE PRODUCT OFFERING 1. NEW AND INTERESTING PRODUCTS TO BE INTRODUCED IN THE £500-£800 PRICE RANGE 2. EXTENSION OF RANGE AT UPPER END HAS BEEN SUCCESSFUL 3. BENEFIT TO BE FELT PROGRESSIVELY 12
Slide 13: 1. Re-focus the Product Offering
1. RE-FOCUS THE PRODUCT OFFERING INTRODUCE NEW PRODUCT IN THE KEY £500-£800 PRICE RANGE RRP £300 £400 £500 £600 £700 £800 £900 £1,000 £1,200 £1,400 £1,600 Lily Blossom Tessie Daria Arundel Campden Clemmie Darcie Effie handbags by family Dorothy satchel (spring Alexa summer 15) Bayswater Bayswater Bu
Slide 14: 1. Re-focus the Product Offering
1. RE-FOCUS THE PRODUCT OFFERING RE-FOCUS OF SPRING SUMMER 2015 HANDBAG OFFER PRODUCT MIX BY % OF SKUS > £1,000 29% > £1,000 54% £1,000 26% £1,000 £800 20% £800 24% 40% £500 £500 1% 5% £350 £350 SPRING SUMMER 2014 SPRING SUMMER 2015 14
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Slide 16: 2. Stores
2. STORES 1. WE WILL FOCUS ON IMPROVING THE PRODUCTIVITY OF EXISTING STORES 2. CONTINUED INVESTMENT IN INTERNATIONAL STORE NETWORK 3. PARIS FLAGSHIP STORE TO OPEN AT THE BEGINNING OF 2015/16 16
Slide 17: Worldwide Retail Footprint: March 2014
2. STORES WORLDWIDE RETAIL FOOTPRINT: MARCH 2014 Department store Free Standing Changes from Shop-in-Shop Stores Total 31 March 2013 Directly Operated Stores UK 25 20 45 - Europe 3 8 11 +3 North America - 10 10 +4 Total Own Stores 28 38 66 +7 Partner Stores Scandinavia 2 7 9 - Other European - 1 1 +
Slide 18: 3. Operations
3. OPERATIONS SCALABLE PLATFORM “WILLOWS” FACTORY IN SOMERSET COMPLETED ON TIME AND TO BUDGET — Production commenced during June 2013 with creation of 320 new jobs — Doubled UK production capacity with more than 50% of our handbags now made in the UK using traditional skills and craftsmanship — Fact
Slide 19: 3. Current Trading and Outlook
3. CURRENT TRADING AND OUTLOOK 19
Slide 20: Current Trading and Outlook
CURRENT TRADING AND OUTLOOK CURRENT TRADING — Retail sales down 9% for the 10 weeks to 7 June 2014, down 15% like-for-like (vs. the prior year period) CAUTIOUS OUTLOOK — Outlook for the current financial year remains challenging — Product range rebalanced following management changes during March 20
Slide 21: Contacts
CONTACTS BELL POTTINGER 020 7861 3232 Daniel de Belder MULBERRY INVESTOR RELATIONS 020 7605 6795 Allegra Perry ALTIUM 020 7484 4040 Ben Thorne Katie Hobbs BARCLAYS 020 3134 8370 Marcus Jackson Nicola Tennent MULBERRY.COM blog.mulberry.com Twitter@mulberry_editor facebook.com/mulberry 21
Slide 22: Appendix: Revenue by Region
APPENDIX REVENUE BY REGION £165.1m £163.5m £1.6m £1.3m £8.1m £9.4m £19.6m £18.8m £27.7m £27.5m £108.1m £106.5m 2012/13 2013/14 UK Europe Asia Pacific North America Rest of the World 22
Slide 23: Appendix: Revenue by Region / Channel
APPENDIX REVENUE BY REGION / CHANNEL 2012/13 2013/14 £m £m Retail Wholesale Total Retail Wholesale Total UK 91.8 16.3 108.1 91.9 14.6 106.5 Europe 7.6 20.1 27.7 8.0 19.5 27.5 Asia Pacific 1.0 18.6 19.6 0.2 18.6 18.8 North America 6.7 1.4 8.1 8.7 0.7 9.4 Other 0.1 1.5 1.6 0.2 1.1 1.3 Total Revenue 10
Slide 24: Appendix: Revenue by Product
APPENDIX REVENUE BY PRODUCT REVENUE BY PRODUCT (2013/14) Bags £123.2m (75%) (2012/13: 77%) Small leather goods and gifts £25.7m (16%) (2012/13: 15%) Luggage £3.4m (2%) (2012/13: 3%) Apparel £7.6m (5%) (2012/13: 4%) Footwear £1.9m (1%) (2012/13: 1%) Other £1.7m (1%) (2012/13: 1%) 24