Mulberry Group Plc · LSE:MUL
Mulberry — H1 2015/16 Earnings Presentation
23 slides from Mulberry's earnings presentation, December 2015
Slide 1: Interim Results for the Six Months Ended 30 September 2015
MULBERRY INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2015,
Slide 2: Agenda
av MULBERRY AGENDA 1. FINANCIAL REVIEW 2. STRATEGY 3. CURRENT TRADING AND OUTLOOK
Slide 3: Slide 3
Slide 4: Revenue by Channel
MULBERRY REVENUE BY CHANNEL VALUE OF SALES £64.7m £67.8mM (up 58) RETAIL (INCLUDING DIGITAL) UP 12%, +10% LIKE-FOR- LIKE: — UK Retail (including digital) up 12% £17.4m — International Retail (including digital) up 12% (26%) * Europe: encouraging growth * North America: more challenging $50.4m — Digi
Slide 5: Income Statement
MULBERRY INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2015 £ MILLION 30 SEPTEMBER 2014 30 SEPTEMBER 2015 =VARIANCE Revenue 64.7 67.8 +5% Gross profit 38.8 41.7 +8% Gross margin 59.9% 61.5% Operating expenses (net) -40.0 41.7 +4% Operating profit/(loss) (1.2) 0.0 Profit/(loss) before tax (1
Slide 6: Net Operating Expenses
MULBERRY NET OPERATING EXPENSES FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2015 -£0.7m -£0.4m £41.7m 2014/15 Net Retail Senior Advertising & Other costs 2015/16 store management promotion operating costs costs* costs *phasing of spend
Slide 7: Balance Sheet
MULBERRY BALANCE SHEET AS AT 30 SEPTEMBER 2015 BALANCE SHEET (£ MILLION) 30 SEPTEMBER 2014 30 SEPTEMBER 2015 =VARIANCE Fixed assets and investments 50.9 41.6 -18% Inventories 39.3 477 +21% Trade and other receivables 14.0 12.9 -8% Current tax asset 1.2 0.1 -92% Cash 3.6 41 +14% Current liabilities (
Slide 8: Capital and Investment Expenditure Analysis
MULBERRY CAPITAL AND INVESTMENT EXPENDITURE ANALYSIS FOR THE SIX MONTHS ENDING 30 SEPTEMBER 2015 25 4 £2.1m £6.9m £9.0m £17.0m 20 4 £0.3m £1.0m is £0.5m (em)~ | £15.2m £0.5m 10 4 0.5m £1.5m £1.0m £7.0m £0.7m 54 5 £6.0m som 4.7m — £0.3m oJ £1.3m Actual H1 Projected H2 Projected total Total 2014/15 20
Slide 9: Rat
Rat MULBERRY
Slide 10: Key Priorities
10 MULBERRY KEY PRIORITIES 1. PRODUCT 2. BRAND AND MARKETING 3. DISTRIBUTION 4. OPERATIONS
Slide 11: 1. Product
11 MULBERRY 1. PRODUCT REGAIN MOMENTUM WITHIN OUR SINGLE LARGEST CATEGORY, WOMEN'S BAGS — Following 12 months of growth, we have successfully regained momentum within our single largest category, women’s bags — Looking forward, we will apply the same approach across all categories to reinforce our B
Slide 12: 2. Brand and Marketing
12 MULBERRY 2. BRAND AND MARKETING ONGOING INVESTMENT IN DIGITAL MARKETING CONTINUE TO INVEST IN DIGITAL MARKETING — Increasing focus on Digital within our marketing spend — Upgraded our website, mulberry.com with increased use of stories, film and stronger visual aesthetic 2015 CHRISTMAS VIDEO — Fo
Slide 13: 3. Distribution
13 MULBERRY 3. DISTRIBUTION EXPAND THE BUSINESS INTERNATIONALLY AS AN OMN-CHANNEL BRAND EXPAND THE BUSINESS INTERNATIONALLY AS AN OMNI-CHANNEL BRAND: Well-placed stores complemented by a strong digital presence and enhanced omni-channel offering — Large portion of North America and European stores w
Slide 14: Worldwide Retail Footprint: September 2015
MULBERRY 3. DISTRIBUTION WORLDWIDE RETAIL FOOTPRINT: SEPTEMBER 2015 Department store Free Standing Total Changes from Total Shop-in-Shop Stores Sept 2015 31 March 2015 March 2015 Directly Operated Stores UK 24 19 43 -1 44 Europe 3 10 13 -1 14 North America - 10 10 2 12 Total Own Stores 27 39 66 4 70
Slide 15: 4. Operations
15 MULBERRY 4. OPERATIONS SCALABLE PLATFORM COMMITMENT TO UK MANUFACTURING — We remain committed to UK manufacturing, which we see as a point of distinction — Our UK factories employ c. 600 people and have achieved significant improvements in efficiency over the past 12 months — Our UK factories are
Slide 16: MULBERRY
iy MULBERRY 16
Slide 17: Current Trading and Outlook
MULBERRY CURRENT TRADING AND OUTLOOK Retail like-for-like sales* Retail total sales 26 weeks to 10 weeks to 26 weeks to 10 weeks to This year vs. last year (%) 30-Sep-15 05-Dec-15 30-Sep-15 05-Dec-15 UK Retail** +12% +6% +14% +6% International Retail** +12% -6% -3% +1% Total Retail +12% +4% +10% +5%
Slide 18: Current Trading and Outlook
18 MULBERRY CURRENT TRADING AND OUTLOOK PRODUCT DEVELOPMENT: BUILD BRITISH LIFESTYLE IMAGE — Increasing investment in designing, developing and launching our future collections READY-TO-WEAR, FOOTWEAR LICENCES — Signed letters of intent with high quality third party partners — Concluded that licensi
Slide 19: #MulberryMiracle
#MULBERRYMIRACLE
Slide 20: Contacts
20 CONTACTS BELL POTTINGER Daniel de Belder MULBERRY INVESTOR RELATIONS Allegra Perry ALTIUM Sam Fuller/Tim Richardson BARCLAYS Nicola Tennent MULBERRY.COM blog.mulberry.com Twitter@mulberry_editor facebook.com/mulberry MULBERRY 020 3772 2561 / 07977 927 142 020 7605 6795 020 7484 4040 020 3134 9801
Slide 21: Revenue by Region
MULBERRY APPENDIX REVENUE BY REGION H1 2014/15 H1 2015/16 mUK mEurope ® Asia Pacific and Middle East = North America 21
Slide 22: Revenue by Region / Channel
MULBERRY APPENDIX REVENUE BY REGION / CHANNEL H1 2014/15 H1 2015/16 £m £m Retail Wholesale Total Retail Wholesale Total UK 35.8 7.0 42.8 40.0 68 46.8 Europe 41 73 11.4 5.4 61 11.5 Asia Pacific/Middle East 0.2 5.1 5.3 0.3 4.4 47 North America 5.0 0.2 5.2 4.7 0.1 4.8 Total Revenue 45.1 19.6 64.7 50.4
Slide 23: Revenue by Product
23 APPENDIX REVENUE BY PRODUCT REVENUE BY PRODUCT MULBERRY Bags £49.4m (73%) (H1 2014/15: 75%) Small leather! gifts £12.1m (H1 2014/15: 15 Luggage £2.5m (4%) (HT 2014/15: 4% Ready-towear £2.3m (4%) (H1 2014/15: 4%) Footwear £0.9m (1%) (H1 2014/15: 1%) Other £0.6m (1%) (H1 2014/15: 1%)