Signet Jewelers Limited · NYSE:SIG

Signet Jewelers — Q3 FY2018 Earnings Presentation

13 slides from Signet Jewelers's earnings presentation, Nov 21, 2017

1. Slide 1: Third Quarter Fiscal 2018 Results

   Third Quarter Fiscal 2018 Results Tuesday, November 21, 2017

2. Slide 2: Forward Looking Statements & Other Disclosure Matters

   Forward Looking Statements & Other Disclosure Matters Forward-Looking Statements – This presentation contains statements which are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, based upon management’s beliefs and expectations

3. Slide 3: Key Takeaways

   Key Takeaways  Same store sales (“SSS”) declined 5.0%, including 120 bps impact from weather-related incidents and systems and process disruptions associated with outsourcing of credit portfolio o Total sales were $1.2 billion, down 2.5% year-over-year  Continued to advance strategic initiatives:

4. Slide 4: Progress on Strategic Priorities

   Progress on Strategic Priorities Customer First OmniChannel Agility and Efficiency  Streamlined promotional  Strong eCommerce growth  Disciplined cost reductions strategies and customer driven by R2Net acquisition and driving improvement in SGA targeting enhancements to Sterling rate websites  E

5. Slide 5: Holiday Season Business Drivers

   Holiday Season Business Drivers  Addressing Last Year’s Gaps: o Improved Sterling eCommerce platform performance o Strengthened assortment in $200-$700 price range  Innovation and Newness across Product Assortment: o Interwoven – targeted especially for younger couples o Strong trend identificatio

6. Slide 6: Third Quarter Sales Performance

   Third Quarter Sales Performance Total sales % Non-same at constant Exchange Same Store store sales exchange translation Total sales Sales %1 %, net2 rate impact % Total sales % (in millions $) Kay -7.2 2.8 -4.4 -4.4 436.3 Jared -5.1 1.3 -3.8 -3.8 218.0 R2Net3 17.9 23.7 Regional brands -16.3 -13.3 -2

7. Slide 7: Income Statement Highlights

   Income Statement Highlights (Percentage of Sales) 3Q Fiscal 2018 3Q Fiscal 2017 Difference Gross margin 27.8% 29.5% (170) bps SG&A 32.5% 32.6% (10) bps Credit transaction, net (1.1%) - (110) bps Other operating income 6.3% 5.8% 50 bps Operating income 0.5% 2.7% (220) bps Earnings (loss) per share ($

8. Slide 8: Balance Sheet and Cash Flow

   Balance Sheet and Cash Flow  Prudent working capital management  Inventory $2.47 billion, down 6.9%, while Q3 total sales decreased 2.5%  Net accounts receivable $640 million, compared to $1.6 billion LY, reflecting sale of prime accounts receivable of $960 million  Free cash flow YTD $1.3 billi

9. Slide 9: Sterling Division Credit and Allowance Metrics

   Sterling Division Credit and Allowance Metrics (in millions except percentages) 3Q FY18 3Q FY17 Difference Credit sales $402 $476 ($73) Credit participation 59.6% 66.8% (720) bps Accounts receivable, gross $707 $1,679 ($972) Average monthly payment collection rate 10.2% 10.6% (40) bps Interest incom

10. Slide 10: Financial Guidance

    Financial Guidance Revised Fiscal 2018 guidance to reflect the impact of disruptions associated with outsourcing of credit portfolio Fiscal 2018 Prior Revised SSS down low to mid single-digit % down mid single-digit % EPS¹ $7.16 - $7.56 $6.10 to $6.50 Effective tax rate 24% to 25% 22% Weighted avera

11. Slide 11: Appendix

    Appendix

12. Slide 12: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Free cash flow is a non-GAAP measure defined as the net cash provided by operating activities less purchases of property, plant and equipment. Management considers this helpful in understanding how the business is generating cash from its operating and investing activitie

13. Slide 13: Signet Jewelers Ltd.

    Signet Jewelers Ltd.

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