Brait Plc · JSE:BAT

Brait — Iceland Foods — Q1 FY2017 Earnings Presentation

14 slides from Brait's earnings presentation, Jul 27, 2016

  1. Slide 1: Fiscal Year 2017 Interim Results for 12 Weeks Ended 17 June 2016

    FISCAL YEAR 2017 INTERIM RESULTS FOR 12 WEEKS ENDED 17 JUNE ‘16 27 JULY 2016

  2. Slide 2: Agenda

    Agenda  Key Highlights  Financial Review  Outlook  Q&A Presenter: Tarsem Dhaliwal (CFO) First quarter:12 weeks ending 17 June 2016

  3. Slide 3: Key Highlights

    Key Highlights Iceland

  4. Slide 4: Key Highlights

    Key Highlights The Market • The UK Retail market remains very challenging. Based on the latest Kantar data (12 weeks ending 19 June), the grocery market declined (0.2%), with food deflation at (1.4%). Iceland • Turnover down (0.6%) year on year in the first quarter. • First quarter LFL % of (2.4%),

  5. Slide 5: First quarter results versus Fourth quarter outlook

    First quarter results versus Fourth quarter outlook • Current trading: Like for like sales to date broadly in line with FY16 quarter 4 performance • Net 4 stores will open in FY17 quarter 1 (4 Food Warehouse, 2 Iceland, (2) Iceland closures)  • Power of Frozen and Innovation will continue… • Increa

  6. Slide 6: Financial Review

    Financial Review Iceland

  7. Slide 7: First Quarter Sales Performance

    First Quarter Sales Performance FY17 Q1 FY16 Q1 Var Var% Base Estate (LFL) 581.1 595.1 (14.0) (2.4%) FY16 & FY17 New 18.7 9.6 9.1 1.6% Stores Other Group Co’s 4.8 3.7 1.1 0.2% Turnover 604.7 608.5 (3.8) (0.6%) 7

  8. Slide 8: First Quarter Profit and Loss

    First Quarter Profit and Loss FY17 Q1 FY16 Q1 Var • Gross profit margin up 0.1% year on year (up £0.7m in cash terms). This was primarily driven Group Turnover 604.7 608.5 (3.8) by an improvement in underlying gross margin Cost of Sales (565.9) (570.4) (4.5) • Admin Expenses (£2.7m) adverse year on

  9. Slide 9: First Quarter Cash Flow

    First Quarter Cash Flow FY17 Q1 FY16 Q1 Var • Positive Q1 movement in working capital of £45.2m (up £24.0m year on year), some of which Group EBITDA 25.8 27.8 (2.0) will unwind by year end Movement in Working • Year on year increase in net capital expenditure 45.2 21.2 24.0 driven by underlying high

  10. Slide 10: Net Debt

    Net Debt FY17 Q1 FY16 Q4 Var Cash at Bank and in hand 201.3 164.9 36.4 Debt (886.7) (885.6) (1.1) Finance leases (11.1) (10.4) (0.7) Net Debt (696.5) (731.1) 34.6 Net Leverage 4.7x 4.9x 0.2x *Leverage calculations based on rolling 12 month EBITDA 10

  11. Slide 11: FY17 Bond Buy Backs (Company and related parties)

    FY17 Bond Buy Backs (Company and related parties) The company completed no bond buybacks during FY17 Quarter 1. MC Walker purchased £1.1m nominal value of the SSN 10 Year 6.75% in FY17 Quarter 1. We and our affiliated entities, including Directors and Shareholders of Iceland Topco Limited and their

  12. Slide 12: Outlook

    Outlook Iceland

  13. Slide 13: Outlook

    Outlook • Current trading: Like for like sales continue to improve • 6 net new stores will open in FY17 quarter 2 (4 Food Warehouse, 1 Iceland, (2) Iceland closures, 2 Ireland) • Our strategy focusing on frozen innovation continues, with a trading platform that supports offering our customers great

  14. Slide 14: Q&A

    Q&A Iceland

Iceland Foods — Q1 FY2017 Earnings Presentation on 6ix