Slide 1: Kathmandu – First Half Year Results FY11
For personal use only KATHMANDU – FIRST HALF YEAR RESULTS FY11 1
Slide 2: Contents
CONTENTS For personal use only • Results Overview • Key Line Items • Country Results • Cash Flow, Dividend, Balance Sheet • FY11 Outlook • Key Growth Strategy Update • Questions 2
Slide 3: Results Overview
For personal use only 3 OVERVIEW RESULTS
Slide 4: Results Overview: Highlights
RESULTS OVERVIEW: Highlights For personal use only • Very solid first half sales performance (19.2% above previous half-year) • Sales performance in December / January especially strong • 1H FY11 Sales and EBIT result slightly above the upper range provided in the 19 January 2011 market guidance: –
Slide 5: Results Overview: Year-On-Year
RESULTS OVERVIEW: Year-On-Year For personal use only Denominated in: NZ $m A $m *1 1H FY11 1H FY10 DIFF $ DIFF % 1H FY11 1H FY10 DIFF $ DIFF % Sales 127.1 106.6 20.5 19.2% 97.4 85.8 11.6 13.5% Gross Profit 82.2 65.3 16.9 25.9% 63.0 52.6 10.4 19.8% Gross Profit Margin 64.7% 61.3% 64.7% 61.3% Operatin
Slide 6: Key Line Items
For personal use only 6 LINE ITEMS KEY
Slide 7: Key Line Items: Sales
KEY LINE ITEMS: Sales For personal use only SALES: up 19.2% to NZ$127.1m SALES*3 New Zealand Australia United Kingdom NZ$127.1m • Sales growth year on year:*1 NZ$106.6m $4.6m NZ 12.4%, AU 20.8%, UK (0.9)%*2 NZ$83.6m $5.1m $74.4 $4.2m $58.7 • At constant exchange rates sales growth 16.6% $45.1 $42.8
Slide 8: Key Line Items: Same Store Sales Growth
KEY LINE ITEMS: Same Store Sales Growth For personal use only NZ AU UK GROUP 20.3% 14.1% 13.0% 13.7% 12 .4 % 12 .1% 9.9% 6 .5% 2.4% 2.0% - 1.3 % -4.0% 1HFY09 1H FY10 1H FY11 • Same store sales growth 1H FY11 12.1% (9.5% at constant exchange rates), aggregate of approx 22% over the past two years at
Slide 9: Key Line Items: Gross Profit Margin %
KEY LINE ITEMS: Gross Profit Margin % For personal use only 1H FY09 1H FY10 1H FY11 • Gross Profit margin 340 bps above 68.1% 1H FY10 65.9% 63.2% • Gross Profit margin improvement: 60.4% 59.9% 59.7% – Retail price adjustments / 57.9% 58.9% 58.4% product mix particularly in Australia – Strong Christm
Slide 10: Key Line Items: Cost Of Doing Business
KEY LINE ITEMS: Cost Of Doing Business For personal use only OPERATING EXPENSES: up 25.0% to NZ$59.0m • Total operating expense increase NZ$11.8m includes amounts for new/temp stores plus COMPARISON TO 1H FY10 the full year effect of stores opened during NZ $m 1H FY11 1H FY10 DIFF $ DIFF % 1H FY10:
Slide 11: Key Line Items: Earnings
KEY LINE ITEMS: Earnings For personal use only EBITDA: up 28.2% to NZ$23.2m EBIT: up 28.4% to NZ$19.9m NPAT up 138.6% to NZ$10.5m EBITDA NZ$23.2m EBIT NZ$19.9m NZ$18.1m NZ$15.5m NZ$12.8m NZ$10.4m 1H FY09 1H FY10 1H FY11 1H FY09 1H FY10 1H FY11 15.3% 17.0% 18.3% 12.4% 14.5% 15.7% EBITDA margin % EBIT
Slide 12: Country Results
For personal use only 12 COUNTRY RESULTS
Slide 13: Country Results: New Zealand
COUNTRY RESULTS: New Zealand For personal use only SALES: up 12.4% to NZ$48.1m Same store sales growth: 6.5% EBITDA (trading result): up 2.8% to NZ$11.2m • 3 New Stores since 1H FY10 (all in 2H FY10): NZ $m 1H FY11 1H FY10 DIFF - Hastings, Gisborne, and Tauranga CBD Sales 48.1 42.8 12.4% (had traded
Slide 14: Country Results: Australia
COUNTRY RESULTS: Australia For personal use only SALES: up 20.8% to A$57.0m Same store sales growth: 12.4% EBITDA (trading result): up 64.1% to A$10.5m • 7 New Stores since 1H FY10: A $m 1H FY11 1H FY10 DIFF - 4 in 2H FY10 Ballarat, Fremantle, Tea Tree Adelaide, Adelaide Harbour Town (Outlet), Sales
Slide 15: Country Results: United Kingdom
COUNTRY RESULTS: United Kingdom For personal use only SALES: no change at UK£2.2m (rounded) Same store sales growth: -1.3% EBITDA (trading result): down 100.0% to UK£(0.4)m • Total operating expenses (excl. depreciation): UK £m 1H FY11 1H FY10 DIFF - 1H FY11 76.6% of sales - 1H FY10 68.8% of sales S
Slide 16: Cash Flow, Dividend, Balance Sheet
CASH FLOW DIVIDEND For personal use only BALANCE SHEET 16
Slide 17: Cash Flow
CASH FLOW For personal use only NZ $m 1H FY11 1H FY10 EBITDA 23.2 18.1 • Capital expenditure NZ$4.1m vs 1H FY10 NZ$5.1m Change in working capital (20.0) (9.6) - New stores capex - NZ$2.8m for 3 new stores, 2 relocations, and 3 expansions Change in other non-cash items (1.0) 5.3 - Maintenance capex –
Slide 18: Interim Dividend
INTERIM DIVIDEND For personal use only • NZ 3.0 cents per share • Payout ratio remains within expected 50 to 60% of NPAT • AU interim dividend will not be franked until sufficient credits to frank 100% • NZ interim dividend fully imputed • Final dividends expected to be fully imputed and fully frank
Slide 19: Balance Sheet
BALANCE SHEET For personal use only NZ $m 1H FY11 1H FY10 • January inventories per store up 28.5%: Inventories 55.5 38.9 - 1H FY11 NZ$0.555m Property, plant and equipment 29.5 23.9 - 1H FY10 NZ$0.432m - 1H FY09 NZ$0.571m Intangible assets 247.2 241.9 Other assets 5.7 6.6 Total assets (excl. cash) 3
Slide 20: Foreign Currency
FOREIGN CURRENCY For personal use only FORWARD HEDGING POSITION 2H FY11 1H FY12*1 • Effective US$ hedge rates 1H FY11: A$ / US$ % covered 86% 80%+ - A$/US$ 0.843 1H FY11 vs 0.820 1H FY10 - NZ$/US$ 0.676 1H FY11 vs 0.696 1H FY10 Effective Rate 0.852 0.922 • Forward Hedging Position: NZ$ / US$ % cover
Slide 21: FY11 Outlook
For personal use only 21 FY11 OUTLOOK
Slide 22: FY11 Outlook
FY11 OUTLOOK For personal use only Kathmandu • Store rollout on track for FY11 – 3 stores opened, 9 further stores confirmed - target of 15 • Store refurbishment programme continues – most major central city stores already complete • Product range expansion and increased inventory investment will co
Slide 23: Key Growth Strategy Update
KEY GROWTH STRATEGY UPDATE For personal use only 23
Slide 24: Key Growth Strategy Update
KEY GROWTH STRATEGY UPDATE Kathmandu core growth paths continue to provide varied strategic choices For personal use only GROWTH STRATEGY UPDATE • 3 opened, Logan (QLD), Wollongong (NSW), and Perth Harbour Town (WA) • 9 further locations confirmed: Whakatane, Coastlands (north of • Objective is 15 s
Slide 25: Appendix: Reconciliation of Country trading results
APPENDIX: Reconciliation of Country trading results*1 For personal use only Reconciliation to interim report (NZ $m) New Zealand (NZ $m) 1H FY11 1H FY10 United Kingdom (NZ $m)*2 1H FY11 1H FY10 Segment profit 9.6 11.0 Segment profit (1.2) (2.2) Net interest 0.9 2.3 Net interest - - Facility fees 0.5
Slide 26: Questions
For personal use only 26 QUESTIONS