Premier Investments Limited · ASX:PMV
Premier Investments — H1 2011 Earnings Presentation
29 slides from Premier Investments's earnings presentation, Mar 25, 2011
Slide 1: Premier Investments Limited 2011 Interim Results
For personal use only Premier Investments Limited 2011 Interim Results 25 March 2011
Slide 2: Agenda
Agenda For personal use only 1 Highlights 2 Financial results 3 Just Group performance 4 Dividend and capital management 5 New retail leadership 6 Outlook 7 Additional financial and operational information 1
Slide 3: Agenda
Agenda For personal use only Highlights 2 Financial results 3 Just Group performance 4 Dividend and capital management 5 New retail leadership 6 Outlook 7 Additional financial and operational information 2
Slide 4: Highlights
1 Highlights For personal use only Profit result – NPAT—$39.4m – EPS—25.4 cents per share Shareholders rewarded – Interim fully franked dividend of 18cps – Greater than 70% payout ratio Positioned for future growth – New retail leadership – International expansion of Smiggle Brand starting in Singap
Slide 5: Agenda
Agenda For personal use only 1 Highlights 2 Financial results 3 Just Group performance 4 Dividend and capital management 5 New retail leadership 6 Outlook 7 Additional financial and operational information 4
Slide 6: Financial Results
2 Financial Results For personal use only Key Premier performance metrics: – Group NPAT for 1H2011 of $39.4m – EPS for 1H2011 of 25.4c per share Comparison between 1H2011 and 1H2010 – 1H2011 comprised 26 weeks; 1H2010 comprised 27 weeks – As announced at time of release of FY2010 results, PMV change
Slide 7: Premier—Consolidated Income Statement
2 Premier—Consolidated Income Statement For personal use only 26 Weeks 27 Weeks $m’s to 29 Jan 2011 to 30 Jan 2010 Premier Revenues (ex Just Group) 10.0 6.9 Premier Expenses (ex Just Group) (1.9) (1.9) Just Group EBIT 52.5 60.2 Finance Costs (4.4) (4.0) Profit before income tax 56.2 61.2 Income tax
Slide 8: Premier—Summarised Consolidated Balance Sheet
2 Premier—Summarised Consolidated Balance Sheet For personal use only $m’s 29 Jan 2011 31 Jul 2010 Premier has maintained its Assets strong cash position Cash and cash equivalents 301.3 316.6 Just Group’s core debt up Inventories 72.8 71.7 mainly due to the final Plant and equipment 91.5 91.2 paymen
Slide 9: Premier—Consolidated Cash Flow Statement
2 Premier—Consolidated Cash Flow Statement For personal use only 26 Weeks 27 Weeks to 29 Jan 2011 to 30 Jan 2010 $m’s Net cash flows from (used in) operating 56.8 60.2 activities Net capital expenditure (13.3) (16.8) Payment for the settlement of Smiggle deferred (18.4) — payable Net cash flows used
Slide 10: Agenda
Agenda For personal use only 1 Highlights 2 Financial results 3 Just Group performance 4 Dividend and capital management 5 New retail leadership 6 Outlook 7 Additional financial and operational information 9
Slide 11: Half Year Results FY11
For personal use only Half Year Results FY11 25 March 2011
Slide 12: Overview of Results
Overview of Results For personal use only • Total sales decreased by 3.0% (flat on 26 weeks basis*) to $458.4m • LFL sales down 5.1% (Aust -4.5%; NZ -5.8% in NZD) • Gross margin increased by 260bps with reduced markdowns in Portmans and Jacqui E and some of the benefits captured from the stronger AU
Slide 13: Just Group – Summary Result
Just Group – Summary Result $’000’s 1H11 1H10 Var Sales 458,385 472,693 -3.0% For personal use only LFL sales* -5.1% +1.1% Gross Profit** 284,206 280,791 Gross margin (%)** 62.0% 59.4% 260bps • Challenging first half • LFL sales down 5.1% Salaries (103,439) (100,165) +3.3% • EBITA down 12.9% 22.6% 2
Slide 14: Geographic Summary
Geographic Summary For personal use only • Total sales up 0.2% Australia Sales - Clothing % movement on prior year comparable month 10.0% • LFL sales down 4.5% 8.0% Just Group 1H10 +8.4% 6.0% • Australian consumer remains cautious, with 4.0% ABS 1H10 +5.0% RBA Interesr rate Just Group declining spen
Slide 15: Just Jeans and Jacqui E
For personal use only Just Jeans Jacqui E • Total sales down 5.6%* • Total sales down 3.8%* • Held share in a tough unisex market whilst cycling • Margins and costs well controlled despite sales strong H1 in 2010 decline, with profit contribution greater than • 256 stores at end of half correspondin
Slide 16: Jay Jays and Dotti
Jay Jays Dotti For personal use only • Total sales down 10.6%* • Total sales up 9.1%* • Challenging season in a tough and deflationary • Disappointing season following strong growth in unisex market prior years • ‘Fashion at Value’ positioning remains strong with • 6 stores opened in the half, inclu
Slide 17: Portmans and Peter Alexander
Portmans Peter Alexander For personal use only • Total sales up 5.3%* • Total sales up 23.7%* • Transformation is progressing to plan • A strong season driven by solid growth from the existing business, renewed growth from the on-line • 10 stores closed in the half channel and successful store openi
Slide 18: Smiggle
Smiggle For personal use only • Total sales up 24.8%* • 6 stores opened during the half with continued strong growth and customer connection • 98 stores at end of half in Australia & New Zealand • First stores to open in Singapore in April/May 2011, with up to 5 stores to open within 6 months • Attr
Slide 19: Agenda
Agenda For personal use only 1 Highlights 2 Financial results 3 Just Group performance Dividend and capital management 5 New retail leadership 6 Outlook 7 Additional financial and operational information 18
Slide 20: Dividends and capital management
4 Dividends and capital management For personal use only Premier’s Board continues to focus on rewarding shareholders whilst maintaining sufficient cash reserves to invest in growth Premier’s Board has declared an interim fully franked dividend of 18cps – This represents a payout ratio of over 70%—h
Slide 21: Agenda
Agenda For personal use only 1 Highlights 2 Financial results 3 Just Group performance 4 Dividend and capital management New retail leadership 6 Outlook 7 Additional financial and operational information 20
Slide 22: New Retail Leadership
5 New Retail Leadership For personal use only Mark McInnes appointed CEO Premier Retail from 4 April 2011 – Mandate to pursue growth opportunities for Premier Retail – Will assume direct responsibility for Just Group as a member of Just Group Board and CEO to drive improved performance and growth Pr
Slide 23: Agenda
Agenda For personal use only 1 Highlights 2 Financial results 3 Just Group performance 4 Dividend and capital management 5 New retail leadership Outlook 7 Additional financial and operational information 22
Slide 24: Outlook
6 Outlook For personal use only Like other Australian and New Zealand retailers, Premier is operating in an extremely challenging retail and macro-economic environment – Natural disasters and cost of living increases dampening consumer sentiment, extensive discounting and supply cost increases Premi
Slide 25: Agenda
Agenda For personal use only 1 Highlights 2 Financial results 3 Just Group performance 4 Dividend and capital management 5 New retail leadership 6 Outlook Additional financial and operational information 24
Slide 26: Additional Information
For personal use only Additional Information 25 March 2011 25
Slide 27: Just Group – Key Operating Metrics
Just Group – Key Operating Metrics For personal use only H1 2011 H1 2010 Stores (end) 979 958 Sales $’000’s 458,385 472,693 -3.0% LFL sales growth % -5.1% 1.1% Gross Profit margin % 62.0% 59.4% +260bps EBITDA $’000’s 63,257 73,274 -13.7% EBITA $’000’s 52,519 60,310 -12.9% EBITA margin % 11.5% 12.8%
Slide 28: Just Group – Sales & Stores
Just Group – Sales & Stores For personal use only 2011 1st Half Stores Sales Growth* Adj Growth* A$'000's % % Just Jeans 256 107,274 -8.7% -5.6% Jay Jays 243 120,011 -13.2% -10.6% Portmans 118 55,148 +1.5% +5.3% Jacqui E 108 43,342 -6.7% -3.8% Dotti 116 53,594 +6.0% +9.1% Peter Alexander 39 38,274 +
Slide 29: Just Group – Store movements
Just Group – Store movements For personal use only As at 29 January 2011 Stores Openings Closures Stores Change Beg 1H11 1H11 End in stores Just Jeans 259 0 -3 256 -1.2% Jay Jays 249 2 -8 243 -2.4% Portmans 128 1 -11 118 -7.8% Jacqui E 106 3 -1 108 +1.9% Dotti 110 7 -1 116 +5.5% Peter Alexander 33 6