Mulberry Group Plc · LSE:MUL
Mulberry — FY2015 Earnings Presentation
29 slides from Mulberry's earnings presentation, June 2015
Slide 1: Preliminary Results for the Year Ended 31 March 2015
MULBERRY PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2015
Slide 2: Highlights for the Year
MULBERRY HIGHLIGHTS FOR THE YEAR YEAR ENDED 31 MARCH 2015 TOTAL REVENUE DOWN 9% TO £148.7 MILLION (2014: £163.5 MILLION) — Total Retail sales up 1% * UK Retail (excluding digital) down 7% + International Retail (excluding digital) up 28% * Digital up 15% — Wholesale down 29% FINANCIAL HIGHLIGHTS Res
Slide 3: Agenda
av MULBERRY AGENDA 1. FINANCIAL REVIEW 2. STRATEGY 3. CURRENT TRADING AND OUTLOOK 4. THE FUTURE
Slide 4: 1. Financial Review
Slide 5: Revenue by Channel
MULBERRY REVENUE BY CHANNEL TOTAL REVENUE RETAIL UP 1%, -2% LIKEFORLIKE: £163.5m £148.7m (down 9%) — H2up 9%, H1 down 9% — UK Retail down 7% £54.5m — International Retail up 28% (33%) £38.8m — Digital up 15% (26%) WHOLESALE DOWN 29%: £109. om £109. om — Conservative ordering from our Asian and Europ
Slide 6: Income Statement
MULBERRY INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2015 £ MILLION 31 MARCH 2014 31 MARCH 2015 VARIANCE Revenue 163.5 148.7 9% Gross profit 103.5 89.9 -13% Gross margin 63.3% 60.5% Other operating expenses (net) (86.4) (85.6) -1% Exceptional items” (3.4) (2.7) Operating profit 13.7 1.7 88% Adjuste
Slide 7: Operating Expenses
MULBERRY OPERATING EXPENSES FOR THE YEAR ENDED 31 MARCH 2015 100 -£1.5m -£0.5m £88.3m 80 6 (anh 40 20 ie) 2018/14 New store" Voriable soles Senior ‘Advertising & ~ Other 2014/15 operating costs overheads management promotion costs
Slide 8: Balance Sheet
MULBERRY BALANCE SHEET AS AT 31 MARCH 2015 BALANCE SHEET (£ MILLION) 31 MARCH 2014 31 MARCH 2015 VARIANCE Fixed assets and investments 43.3 ATA o% Inventories 33.8 39.4 17% Trade and other receivables 13.6 13.3 -2% Cash 23.4 99 -58% Current liabilities (30.1) (31.2) 4% Net assets 84.0 78.7 -6%
Slide 9: Capital Expenditure Analysis
MULBERRY CAPITAL EXPENDITURE ANALYSIS FOR THE YEAR ENDING 31 MARCH 2015 25 5 £15.5m £17.0m c. £10.0m 20 + £0.2m ——_20.5m 15 J £1.0m (£m £2.8m 0.5m 4.4m £15.2m 10 4 £10.0m £8.1m 54 0- Total 2013/14 Total 2014/15 Projected total 2015/16 mStore expenditure mfFactories mSystems development Other
Slide 10: 2. Strategy
2. STRATEGY 10
Slide 11: Key Priorities
MULBERRY KEY PRIORITIES 2.1 SENIOR MANAGEMENT 2.2 PRODUCT 2.3 BRAND AND MARKETING 2.4 DISTRIBUTION 2.5 OPERATIONS
Slide 12: 2.1 Senior Management
12 MULBERRY 2.1 SENIOR MANAGEMENT NEW CEO AND CREATIVE DIRECTOR IN PLACE FOR NEXT PHASE CHIEF EXECUTIVE - THIERRY ANDRETTA STARTED ON 7 APRIL 2015: June 2014March 2015 Mulberry: Independent, Non-Executive Director — 2013-2015 Buccellati: CEO — 2009-2013 Lanvin: CEO — 2007-2008 Moschino (AEFFE): CEO.
Slide 13: 2.2 Product
ow MULBERRY 2.2 PRODUCT REINVIGORATING OUR OFFERING HAS BEEN A TOP PRIORITY SPRING SUMMER 15 AND AUTUMN WINTER 15 COLLECTIONS INTRODUCED NEW DESIGNS AND COLOURS BUILT ON THE SUCCESS OF EXISTING CORE FAMILIES: — Bayswater — Lily SUCCESSFULLY INTRODUCED NEW, ATTRACTIVE DESIGNS: — Cara — Tessie — Alice
Slide 14: Handbag Price Positioning
14 > £1,000 £500 £350 ‘V MULBERRY 2.2 PRODUCT HANDBAG PRICE POSITIONING PRODUCT MIX BY % OF SKUS > £1,000 £1,000 £800 £500 16% 5% 7 £350 SPRING SUMMER 2014 SPRING SUMMER 2015 SPRING SUMMER 2016
Slide 15: 2.3 Brand and Marketing
MULBERRY 2.3 BRAND AND MARKETING REINFORCING OUR CORE BRAND VALUES TO BUILD THE BRAND RE-ENGAGE WITH OUR CUSTOMERS BY REINFORCING OUR CORE BRAND VALUES — Fashion-led, modern luxury, British lifestyle, Heritage/made in England — Use CRM to engage with new and loyal customers TAILORED REGIONAL MARKETI
Slide 16: 2.4 Distribution
16 av MULBERRY 2.4 DISTRIBUTION STRATEGY: WELLSITUATED STORES COMPLEMENTED BY STRONG DIGITAL PRESENCE STRENGTHEN POSITION IN THE UK AND EXPAND INTERNATIONALLY: — Strategically placed stores — Asstrong digital presence — Selective wholesale relationships OMNICHANNEL: — Phase 1: UK launch (2014/15) —
Slide 17: Worldwide Retail Footprint: March 2015
MULBERRY 2.4 DISTRIBUTION WORLDWIDE RETAIL FOOTPRINT: MARCH 2015 Department store Free Standing Total Changes from Total Shop-in-Shop Stores March 2015 31 March 2014 March 2014 Directly Operated Stores UK 25 19 44 1 45 Europe 4 10 14 3 11 North America - 12 12 2 10 Total Own Stores 29 41 70 4 66 Par
Slide 18: 2.5 Operations
18 MULBERRY 2.5 OPERATIONS SCALABLE PLATFORM COMMITTED TO A “MADE IN ENGLAND” Nearly 50% of handbags are now manufactured in the UK — Reinforces authenticity of the Mulberry brand and contributes to the attainment of high quality standards — New Willows factory in Somerset meets quality and producti
Slide 19: 3. Current Trading and Outlook
Slide 20: Current Trading
MULBERRY CURRENT TRADING Retail total sales 26 weeks to 26 weeks to 52 weeks to 10 weeks to This year vs. last year (%) 30-Sep-14* 28-Mar-15* 28-Mar-15* 6Jun-15 UK Retail -16% +1% Th +13% International Retail +20% +34% +28% +22% Digital +1% +26% +15% +40% Group Retail total -9% +9% +1% 117% * Previo
Slide 21: Outlook
21 MULBERRY OUTLOOK RETAIL — Plan to open fewer new stores, while we focus on improving productivity in our stores and in our UK factories — Digital: improved loading page and navigation later this year — Omni-channel enhancements in the UK and roll-out to key international markets planned during th
Slide 22: Mulberry
MULBERRY MULBERRY
Slide 23: 4. The Future
4. THE FUTURE
Slide 24: The Future
24 MULBERRY THE FUTURE FIRST IMPRESSIONS The Mulberry brand is strong and wel-known in its domestic market with clearly defined brand values — Have found a talented, professional and ambitious team — Real strength derived from UK manufacturing base with approximately 50% of handbags manufactured her
Slide 25: MULBERRY
MULBERRY 25
Slide 26: Contacts
26 CONTACTS BELL POTTINGER Daniel de Belder MULBERRY INVESTOR RELATIONS Allegra Perry ALTIUM Sam Fuller BARCLAYS Marcus Jackson Nicola Tennent MULBERRY.COM blog.mulberry.com Twitter@mulberry_editor facebook.com/mulberry MULBERRY 07977 927 142 020 7605 6795 020 7484 4037 020 3134 8370
Slide 27: Revenue by Region
27 MULBERRY REVENUE BY REGION £163.5m £148.7m £1.3m £9.4m a £0.91 £11.4m | £18.8m $27.5m a £11.4m £22.8m £106.5m $102.2m 2013/14 2014/15 @UK Europe ® Asia Pacific North America ™ Rest of the World
Slide 28: Appendix: Revenue by Region / Channel
28 APPENDIX REVENUE BY REGION / CHANNEL MULBERRY 2013/14 2014/15 £m £m Retail Wholesale Total Retail Wholesale Total UK 19 14.6 106.5 88.6 13.6 102.2 Europe 8.0 19.5 275 97 13.1 22.8 Asia Pacific 0.2 18.6 18.8 0.6 10.8 11.4 North America 8.7 0.7 94 10.9 0.5 11.4 Other 0.2 11 1.3 0.1 0.8 09 Total Rev
Slide 29: Appendix: Revenue by Product
29 APPENDIX REVENUE BY PRODUCT REVENUE BY PRODUCT (2014/15) ‘V MULBERRY Bags £111.2m (75%) (2013/14: 77%) Small leather! gifts £25.0m ( (2013/14: 15%) Luggage £3.0m (2%) (2013/14: 3%) Apparel £5.9m (4%) (2013/14: 4%) Footwear £2.1m (1%) (2013/14: 1%) Other £1.5m (1%) (2013/14: 0%)