Kmd Brands Limited · NZX:KMD
Kmd Brands — Kathmandu Holdings — Shareholder Meeting (November 2012)
25 slides from Kmd Brands's shareholder meeting presentation, Nov 16, 2012
Slide 1: Annual General Meeting 16 November 2012
For personal use only Annual General Meeting 16 November 2012
Slide 2: Agenda: 2012 Annual General Meeting
Agenda: 2012 Annual General Meeting For personal use only • Chairman’s address • Chief Executive Officer’s address • Ordinary business ◦ Item 1: Financial Statements ◦ Item 2: Election of Directors ◦ Item 3: Auditors’ Remuneration ◦ Item 4: Approval of grant of performance rights to Peter Halkett ◦
Slide 3: Chairman's address
For personal use only Chairman’s address
Slide 4: Chairman's address: Financial results
Chairman’s address: Financial results For personal use only • Sales growth NZ$41.0m to NZ$347.1 million, up 13.4%; • EBIT of NZ$57.0 million, down 10.9%; • NPAT of NZ$34.9 million, down 10.7%; • Final dividend of NZ 7.0 cents per share declared (fully franked, fully imputed). 4
Slide 5: CEO address
For personal use only CEO address
Slide 6: 2012 Annual General Meeting
CEO address: 2012 Annual General Meeting For personal use only • FY12 financial results • FY12 key milestones • Growth strategy update • Australian penetration update • UK update • Sustainability • Trading performance update • FY13 outlook 6
Slide 7: FY12 financial results
CEO address: FY12 financial results For personal use only • Record sales ($347.1m); • Same store sales growth 3yr average 7.6%; • Gross margin 63.2% within 62% to 64% long-term target range; • Operating expenses impacted by one-off costs of c. $3m; • Net profit after tax $34.9m (down 10.7%); • Solid
Slide 8: FY12 key milestones
CEO address: FY12 key milestones For personal use only • Summit Club membership numbers grew by over 30% with new loyalty incentive scheme; • Opened new format flagship stores in Sydney, Melbourne, Auckland, and Wellington; • New ERP and warehouse management systems operational; • Total store count
Slide 9: Growth strategy update - Stores
CEO address: Growth strategy update - Stores For personal use only NEW STORE ROLLOUT • FY13 target of 15 new stores (13 in AU, 2 in NZ); Store Rollout History • 9 stores will open in 1H FY13 (last year 5 stores): AU NZ ‒ Stores now open: Carindale (Brisbane), Fountain Gate (Melbourne), Tuggerah (Reg
Slide 10: Growth strategy update - Online and digital
CEO address: Growth strategy update For personal use only ONLINE AND DIGITAL • New online platform now live in all 3 countries; • Control of our brand is a fundamental competitive advantage; • Considering marketplace sites e.g. Amazon, TradeMe, eBay; • Continuous enhancement and investment planned,
Slide 11: Growth strategy update - Enhance product offering
CEO address: Growth strategy update For personal use only ENHANCE PRODUCT OFFERING • Continue investment in research and product development; • Target inventory investment in key performing product lines to optimise store formats and geographical locations; • Forecasting and Planning system a key en
Slide 12: Growth strategy update - Summit Club
CEO address: Growth strategy update For personal use only SUMMIT CLUB • Loyalty incentive introduced in FY12 will continue to grow membership; • Tracking towards one million member target by 2015; • Investment in CRM capabilities to enhance customer engagement through targeted promotional activity a
Slide 13: Australian penetration update
CEO address: Australian penetration update For personal use only • Current penetration comparison: − NZ $31.31, AU $10.34 sales per head of population;* − Australia is 33% of NZ, can be 60%. • Store network expansion (Australia) strategy: − Flexible store formats/sizes already proven effective; − Gr
Slide 14: UK update
CEO address: UK update For personal use only • All functions now managed and supported from New Zealand and Australia, overheads reduced; • Distribution centre exited, third party logistics provider commenced February 2012; • New website operating since start of October 2012; • During 2013: • 2 exis
Slide 15: Sustainability
CEO address: Sustainability For personal use only • Sustainability is a priority and of increasing importance for Kathmandu staff, Summit Club members, suppliers, and other key stakeholders. • Launched Sustain the Dream Plan (2011–2013) which outlines Kathmandu Sustainability objectives, model and a
Slide 16: CEO Address: Trading pattern
CEO Address: Trading pattern For personal use only Last Year Sales mix across the year First 15 weeks to Includes Christmas Sale and Includes Easter and Winter Sales 13 Nov 2011 January Clearance 16% 26% 58% FIRST HALF-YEAR SECOND HALF-YEAR • Three major promotions remain critical to our annual trad
Slide 17: Trading performance update
CEO address: Trading performance update For personal use only • Sales $66.9m for the period ending 11 Nov 2012; • Sales growth $10.9m (19.5% above FY12 pcp, 18.6% at constant exchange rates*1); • Same store sales growth 14.3%*2 for the 15 weeks ended 11 Nov 2012 (last year pcp 7.6%); • Positive same
Slide 18: FY13 outlook
CEO address: FY13 outlook For personal use only Market • Current economic conditions in our view the new normal; • Outdoor category remains resilient; • Competition increasing due to relatively attractive sector. FY13 Earnings • Board and Management remain confident in the Kathmandu business model a
Slide 19: Resolutions: Items to be considered
For personal use only Resolutions: Items 1 to 5
Slide 20: Item 1: Financial Statements
Item 1: Financial Statements For personal use only To receive and consider the Financial Report of the Company for the year ended 31 July 2012 together with the Directors’ and Auditor’s reports. 20
Slide 21: Item 2: Election of Directors
Item 2: Election of Directors For personal use only To re-elect Directors of the Company, each election to be voted on separately: a) “That Mr. James Strong, who retires by rotation in accordance with Article 4.4 of the Company’s Constitution and, being eligible, offers himself for re-election, be r
Slide 22: Item 3: Auditors' Remuneration
Item 3: Auditors’ Remuneration For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “To record that PricewaterhouseCoopers continue in office as the Company’s auditors and to authorise the Directors to fix the remuneration of Pricewaterho
Slide 23: Item 4: Grant of Performance Rights – Peter Halkett
Item 4: Grant of Performance Rights – Peter Halkett For personal use only To consider and, if thought fit, pass the following resolution as an ordinary resolution of the Company: “That for the purposes of ASX Listing Rule 10.14, and for all other purposes, approval is hereby given for the grant to P
Slide 24: Item 5: Grant of Performance Rights – Mark Todd
Item 5: Grant of Performance Rights – Mark Todd For personal use only To consider and, if thought fit, pass the following resolution as an ordinary resolution of the Company: “That for the purposes of ASX Listing Rule 10.14, and for all other purposes, approval is hereby given for the grant to Mark
Slide 25: Other business
For personal use only Other business
Kathmandu Holdings — Shareholder Meeting (November 2012) on 6ix