Premier Investments Limited · ASX:PMV
Premier Investments — Investor Presentation (September 2020)
36 slides from Premier Investments's investor presentation, Sep 25, 2020
Slide 1: Premier Investments Limited 2020 Full Year Results Overview
Premier Investments Limited 2020 Full Year Results Overview 25 September 2020 X 0
Slide 2: Agenda
Agenda Premier Investments Limited 1 FY20 overview 8 Industry restructure accelerating Premier Investments Limited 2 FY20 consolidated financial results 9 COVID-19 impacts on 2H20 Smiggle – strong global brand 3 Premier Retail – delivers record result 10 flourishing where children are back at school
Slide 3: FY20 Overview
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Slide 4: Premier Investments Limited FY20 overview
1 Premier Investments Limited FY20 overview Group result – Statutory net profit after tax of $137.8 million, up 29% on FY19 – Underlying Premier Retail EBIT (Pre AASB 16) of $187.2 million, up 11.9% on FY191,2 – Underlying Premier Retail EBIT % to sales (Pre AASB 16) of 15.4%, up 222 bps on FY191,2
Slide 5: FY20 overview: strong cash flow and balance sheet
1 Premier Investments Limited FY20 overview Strong cash flow and balance sheet – Net cash generated (operating cash flow less payments of lease liabilities and investing activities) for the year of $339.3 million, up $216.0 million on FY19 – Strong balance sheet at end of FY20 shows: – Increased cas
Slide 6: Summarised consolidated income statement
2 Premier Investments Limited summarised consolidated income statement $'M FY20 FY19 Premier Retail EBIT - underlying1 187.2 167.3 Premier Investments income from Associate (BRG) 17.7 18.9 Premier Investments other revenue (Interest, Rent & Other) 6.3 7.6 Premier Investments expenses (ex Premier Ret
Slide 7: Summarised consolidated balance sheet
2 Premier Investments Limited summarised consolidated balance sheet Balance Sheet $'M 25 Jul 2020 27 Jul 2019 Assets Cash and cash equivalents 448.8 190.3 Inventories 156.6 171.2 Property, plant and equipment 155.1 210.9 Right of Use assets 231.8 - Other assets 40.9 43.7 Deferred tax assets 66.9 40.
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Slide 9: Premier Retail – delivers record result
3 Premier Retail – delivers record result – Underlying Premier Retail EBIT (Pre AASB 16) of $187.2 million, up 11.9% on FY191,2 – Underlying EBIT % to sales (Pre AASB 16) of 15.4%, up 222 bps on FY191,2 – Underlying Profit before tax (Pre AASB 16) of $184.4 million, up 13.5% on FY191,2 – Premier Ret
Slide 10: Premier Retail performance
3 Premier Retail performance Pre AASB16 2 Pre AASB16 2 52 weeks 52 weeks $'000 to 25 Jul 2020 to 27 Jul 2019 Var LY Sales 1,216,316 1,270,958 -4.3% LFL sales (constant currency) 7.6% 4.2% Gross Profit 741,735 786,578 -5.7% Note: Due to COVID-19 temporary Gross margin (%) 61.0% 61.9% -91bps closures,
Slide 11: Premier Retail – Delivers nine consecutive years of growth
4 Premier Retail – Delivers nine consecutive years of growth • Nine consecutive years of underlying EBIT growth • FY20 underlying EBIT margin to sales (Pre AASB 16) up 222 bps on FY19 • Premier Retail best positioned for an accelerating industry restructure 15.4% 225.0 15.0% 200.0 14.0% 13.2% 187.2
Slide 12: Peter Alexander – delivers record growth
5 Peter Alexander – delivers record growth 300 Peter Alexander Sales 280 260 240 220 200 180 Sales AUD $m 160 140 $288 120 $248 $219 100 $191 80 $167 $140 60 $122 $101 40 $73 $86 $50 $61 20 - FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16* FY17 FY18 FY19 FY20 Sales Notes: 1. FY16 excludes non-comparable 53
Slide 13: Peter Alexander – powerful brand delivering record results
5 Peter Alexander – powerful brand delivering record results • Record FY20 sales of $288.2m, up a record $40.4m or 16.3% on FY19, underpinned by strong LFL growth both online and in stores • The online channel continued to deliver impressive sales and EBIT growth well ahead of the market • Demonstra
Slide 14: Online – delivers record sales & EBIT
9 6 Online – delivers record sales & EBIT 18.1% • Record online sales of $220.4 million, up 48.8% on a 250.0 Full Year Online Sales Growth 18.0% previous record FY19 and contributed 18.1% of total FY20 225.0 220.4 16.0% sales (FY19: 11.7%) 200.0 14.0% • Online sales growth accelerated during 2H20, u
Slide 15: Apparel Brands – well positioned for future growth
9 7 Apparel Brands – well positioned for future growth • Apparel Brands 1H20 sales up 6.1% on 1H19 to $393.5 million • Apparel Brands 1H20 LFL sales growth of 7.5% was stronger than overall sales growth • Apparel Brands delivered two year LFL sales growth of 16.9% from 1H18 to 1H20, before the impac
Slide 16: Industry Restructure Accelerating – online growth accelerating
8 Industry Restructure Accelerating – online growth accelerating • COVID-19 has accelerated the retail industry restructure already underway • Globally, the temporary closures of stores and ongoing government implementation of social distancing measures has significantly impacted customer shopping b
Slide 17: Industry Restructure Accelerating – maximising channel profitability
8 Industry Restructure Accelerating – maximising channel profitability • The accelerated swing in customer preference to shopping online has further increased Premier Retail’s focus on each store’s profitability. Premier Retail has closed 137 stores over the past seven years, demonstrating its willi
Slide 18: COVID-19 impacts on 2H20 results
9 COVID-19 impacts on 2H20 results • Premier’s absolute priority is the safety and wellbeing of our teams and we will continue to support all customers and communities in the countries we operate • The devastating global impact of the COVID-19 health crisis resulted in the very difficult decision to
Slide 19: COVID-19 impacts on 2H20 results
9 COVID-19 impacts on 2H20 results The impact of COVID-19 was particularly severe on the Smiggle business as schools were closed for extended periods of time, international borders were shut across all Smiggle Retail and Wholesale Markets, and families no longer felt safe shopping with children in s
Slide 20: Smiggle – strong global brand flourishing where children are back at school
10 Smiggle – strong global brand flourishing where children are back at school • Smiggle is a powerful global brand • In 1H20 Smiggle delivered record sales to consumers up 14.2% on 1H19 The key to Smiggle’s success is children attending school • In countries and markets where schools have reopened
Slide 21: Smiggle – delivers record online sales
10 Smiggle – delivers record online sales Full Year Online Sales Growth 18.0% • Smiggle delivered record global online sales in FY20 of 60.0 Smiggle Global 16.5% 16.0% $42.3 million, up 41.8% on FY19, and contributed 14.0% 16.5% of total Smiggle FY20 sales (FY19: 9.7%) • Global online sales growth a
Slide 22: Smiggle – long runway and huge growth potential
10 Smiggle – long runway and huge growth potential Smiggle collaboration Success • Highly successful first ever global collaboration with Disney studios (Frozen II, Star Wars) in 1H20 has continued with a very successful launch of Minions with Universal film studios in 2H20 • Results and response fr
Slide 23: Premier strong cashflow and balance sheet
11 Premier strong cashflow and balance sheet Premier’s absolute priority is the safety and wellbeing of our teams and we will continue to support all customers and communities in the countries we operate. It is impossible to predict or forecast the nature and impact of the COVID-19 health crisis on
Slide 24: Appendix A: Brand by brand performance
PREMIER RETAIL Appendix A: BRAND BY BRAND PERFORMANCE
Slide 25: Peter Alexander brand results
A Highlights • Record FY20 sales of $288.2m, up a record $40.4m or 16.3% on FY19, underpinned by strong LFL growth both online and in stores • Demonstrating the strength of the brand and the investment made over the last 9 years in the online channel, in Australia in the week ended 2 May 2020 with a
Slide 26: Just Jeans brand results
A Highlights • 1H20 Sales up 9.6% to $134.4m - a particularly pleasing result for the group’s original brand now celebrating its 50th anniversary • As stores re-opened and most regions of Australia and New Zealand gradually returned to business after the COVID-19 shutdowns, in the final 10 weeks of
Slide 27: Jay Jays brand results
A Highlights • 1H20 Sales up 4.2% to $96.1 million delivering a strong result for the brand • As stores re-opened and most regions of Australia and New Zealand gradually returned to business after the COVID-19 shutdowns, in the final 10 weeks of FY20 the Jay Jays delivered sales growth up 47.2% on t
Slide 28: Dotti brand results
A Highlights • 1H20 Sales up 8.2% to $57.5 million • 1H20 LFL sales up 11.8% were stronger than overall sales, with continued improvement in profit margins being delivered through changes to sourcing strategy • As stores gradually re-opened in regions largely free of COVID-19 restrictions, Dotti sal
Slide 29: Jacqui E brand results
A Highlights • 1H20 Sales up 8.1% to $40.0 million • 1H20 LFL sales up 8.9% - stronger than overall sales growth • 2 year LFL Sales up 11.2% from 1H18 to 1H20 • Jacqui E has been significantly impacted by the temporary exodus of workers from CBD areas during the COVID-19 health crisis • As stores gr
Slide 30: Portmans brand results
A Highlights • 1H20 LFL sales up 1.5% - stronger than overall sales growth • 2 year LFL Sales up 11.1% from 1H18 to 1H20 • Portmans has been significantly impacted by the temporary exodus of workers from CBD areas during the COVID-19 health crisis • Online Sales continue to drive overall growth at a
Slide 31: Smiggle brand results
A Highlights • Record 1H20 global retail sales including wholesale partners sales to consumers up 14.2% on 1H19 • The key to Smiggle’s success is children attending school • In region’s where children are back at school and there is minimal social distancing restrictions, the brand is flourishing. S
Slide 32: Appendix B: Impact of AASB and other information
Appendix B: Impact of AASB 16 and other information dotti smifggie Jacaure eS portmans THE JUST GROUP 31
Slide 33: Implementation of lease accounting standard AASB 16
B B Appendix: Implementation of lease accounting standard AASB 16 • The new lease accounting standard AASB 16 was adopted at the start of the FY20 reporting period effective from 28 July 2019 • The implementation of AASB 16 has significantly changed reported results, however the standard does not ha
Slide 34: Profit and Loss impact of AASB 16
Appendix: Premier Investments Limited B B Profit and Loss impact of AASB 16 Statutory Statutory Profit & Loss Pre AASB16 Pre AASB16 Post AASB16 52 weeks 52 weeks 52 week s AASB16 $'M to 25 Jul 2020 to 27 Jul 2019 Var LY to 25 Jul 2020 Impact Sales 1,216.3 1,271.0 -4.3% 1,216.3 Gross Profit 741.7 786
Slide 35: Overview of Premier's non-IFRS financial information
B B Appendix Overview of Premier’s non–IFRS financial information • IFRS financial information is financial information that is presented in accordance with all relevant accounting standards. • Non-IFRS financial information is financial information that is presented other than in accordance with al
Slide 36: Notes on significant and one-off items excluded from underlying results
BB Appendix Notes regarding significant and other one-off items excluded from Premier Retail underlying results FY20: One-Off COVID-19 gain on closeout of hedge book: $13.2m income The devastating global impact of the COVID-19 health crisis resulted in the very difficult decision to temporarily shut
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