Kmd Brands Limited · NZX:KMD
Kmd Brands — Kathmandu — H1 2010 Earnings Presentation
23 slides from Kmd Brands's earnings presentation, Mar 18, 2010
Slide 1: Kathmandu – First Half Year Results FY10
For personal use only KATHMANDU – FIRST HALF YEAR RESULTS FY10 1
Slide 2: Contents
CONTENTS For personal use only • Results Overview • Group Results • Country Results • Group Cash Flow & Balance Sheet • FY10 Full Year Outlook • Growth Strategy Update • Questions 2
Slide 3: Results Overview
For personal use only 3 RESULTS OVERVIEW
Slide 4: Results Overview: Year-On-Year
RESULTS OVERVIEW: Year-On-Year For personal use only Denominated in: NZ $m A $m *1 1H FY10 1H FY09 DIFF $ DIFF % 1H FY10 1H FY09 DIFF $ DIFF % Sales 106.6 83.6 23.0 27.5% 85.8 70.2 15.6 22.2% EBITDA 18.1 12.8 5.3 41.2% 14.5 10.7 3.8 35.3% EBITDA margin % 17.0.% 15.3% 17.0% 15.3% EBIT 15.5 10.4 5.1 4
Slide 5: Results Overview: Comparison to Prospectus
RESULTS OVERVIEW: Comparison to Prospectus For personal use only NZ $m 1H FY10 1H as % of FY10 Forecast DIFF DIFF ACTUAL PROSPECTUS NZ $m % ACTUAL PROSPECTUS Sales 106.6 97.1 9.5 9.8% 44.4% 40.4% EBITDA 18.1 15.1 3.0 19.9% 31.6% 26.4% EBITDA margin % 17.0% 15.6% NPAT (pro-forma)*1 8.0 6.7 1.3 20.7%
Slide 6: Results Overview: Summary
RESULTS OVERVIEW: Summary For personal use only Good trading performance following last year’s listing on ASX and NZX Improved retail environment: • Positive same store sales growth • Strong results from Christmas sale promotions • Stay at home holidays/camping etc • Travel and Adventure a growing c
Slide 7: Group Results
For personal use only 7 GROUP RESULTS
Slide 8: Group Results: Sales and Gross Profit Margin
GROUP RESULTS: Sales and Gross Profit Margin For personal use only SALES New Zealand Australia United Kingdom SALES: up 27.5% to NZ$106.6m NZ$106.6m $5.1m NZ$83.6m $4.2m $58.7 • Same store sales growth 13.7%*1 (applying $45.1 constant exchange rates 11.7%) $42.8 • Anniversary of the first AU Federal
Slide 9: Group Results: EBITDA
GROUP RESULTS: EBITDA For personal use only EBITDA NZ$18.1m SALES: up 27.5% to NZ$106.6m OPERATING EXPENSES*1: up 14.9% to NZ$47.7m NZ$12.8m EBITDA: up 41.2% to NZ$18.1m • Rental expenses up NZ$1.9m (17.3%): - 1H FY10 11.9% of sales, 1H FY09 13.0% of sales • Other operating expenses*1 up NZ$4.3m (14
Slide 10: Group Results: NPAT
GROUP RESULTS: NPAT For personal use only NPAT (excl. IPO costs) SALES: up 27.5% to NZ$106.6m OPERATING EXPENSES*1: up 14.9% to NZ$47.7m NZ$4.4m EBITDA: up 41.2% to NZ$18.1m NPAT (EXCL IPO COSTS): up NZ$6.8m to NZ$4.4m • Reduced net debt levels from 1H FY09 1H FY09 1H FY10 NZ$183.9m to 1H FY10 NZ$73
Slide 11: Results Country
For personal use only 11 RESULTS COUNTRY
Slide 12: New Zealand
NEW ZEALAND For personal use only NZ $m 1H FY10 1H FY09 DIFF • Sales up 24.9% to NZ$42.8m • Same store sales growth 14.1% Sales*1 42.8 34.3 24.9% • 1H FY10 store development: Same store sales 38.5 33.7 14.1% - 2 new stores opened in 1H FY10 – Timaru EBITDA 8.8 4.8 83.8% and Onehunga (Outlet) EBITDA
Slide 13: Australia
AUSTRALIA For personal use only • Sales up 24.7% to A$47.2m A $m 1H FY10 1H FY09 DIFF • Same store sales growth 9.9% Sales*1 47.2 37.9 24.7% • 1H FY10 store development: - 6 new stores opened in 1H FY10 - Same store sales 41.0 37.3 9.9% Devonport, South Wharf DFO, Frankston, Chapel St, Townsville, a
Slide 14: United Kingdom
UNITED KINGDOM For personal use only UK £m 1H FY10 1H FY09 DIFF • Sales up 37.3% to UK£2.2m Sales*1 2.2 1.6 37.3% • Same store sales growth 13.0% Same store sales 1.8 1.6 13.0% • Total operating expenses (excl. depreciation): - 1H FY10 68.0% of sales EBITDA (0.2) 0.3 - 1H FY09 74.5% of sales EBITDA
Slide 15: Group Cashflow & Balance Sheet
For personal use only GROUP CASHFLOW & BALANCE SHEET 15
Slide 16: Group Cash Flow
GROUP CASH FLOW For personal use only • Operating cashflow up NZ$8.8m: NZ $m 1H FY10 1H FY09 DIFF - improved trading performance Net cash flow from operating 0.5 (8.3) 8.8 - inventory management • Capital expenditure original prospectus New stores capex (4.1) (3.9) (0.2) forecast NZ$12.6m: Maintenan
Slide 17: Group Balance Sheet
GROUP BALANCE SHEET For personal use only • Average inventory per store down 24.2%: NZ $m 1H FY10 1H FY09 DIFF - 1H FY10 NZ$0.433m - 1H FY09 NZ$0.571m Inventory 38.9 45.7 (6.8) - Supply chain efficiency improvement / Property, plant and equipment 23.9 22.4 1.5 sales performance Intangible assets 241
Slide 18: Foreign Currency
FOREIGN CURRENCY For personal use only FORWARD HEDGING POSITION 2H FY10 1H FY11 • Effective US$ hedge rate 1H FY10: A$ / US$ % covered 100% 80%+ - A$/US$ 0.820 1H FY10 vs 0.823 1H FY09 - NZ$/US$ 0.696 1H FY10 vs 0.685 1H FY09 Effective Rate 0.804 0.822 • Forward Hedging Position: NZ$ / US$ % covered
Slide 19: FY10 Full Year Outlook
FY10 FULL YEAR OUTLOOK For personal use only 19
Slide 20: FY10 Full Year Outlook
FY10 FULL YEAR OUTLOOK For personal use only Market conditions – our expectations: • Generally improving retail environment but still uncertainty exists • Australia – good growth prospects. Some short term risk as the Govt stimulus cycles through • New Zealand a slow and steadily improving retail en
Slide 21: Growth Strategy Update
For personal use only GROWTH STRATEGY UPDATE 21
Slide 22: Growth Strategy Update
GROWTH STRATEGY UPDATE For personal use only Kathmandu has a number of levers to drive future growth PROSPECTUS GROWTH STRATEGY UPDATE • 8 stores were opened in 1H FY10 New store • Intend to open 12 stores in FY10 • A further 5 to 7 expected to open in 2H FY10 rollout • At least the same expected in
Slide 23: Questions?
For personal use only 23 QUESTIONS?