Frasers Group Plc · LSE:FRAS
Frasers — Sports Direct International — FY2018 Earnings Presentation
16 slides from Frasers's earnings presentation, Jul 19, 2018
Slide 1: Elevating the Customer Experience
ELEVATING THE CUSTOMER EXPERIENCE Sports Direct International plc FY18 Preliminary Results Pack For the 52 weeks ended 29 April 2018 19 July 2018
Slide 2: Forward Looking Information
FORWARD LOOKING INFORMATION This presentation may contain forward-looking statements, beliefs or opinions, including statements with respect to management's current views and expectations of future events, and the Company’s future financial condition and results of operations. No representation is m
Slide 3: Group Highlights
SPORTS DIRECT.com GROUP HIGHLIGHTS
Slide 4: FY18: Group Highlights
FY18: GROUP HIGHLIGHTS FY18 FY17 ∆ pcp (£m) (£m) Group revenue £3,359.5 £3,245.3 3.5% • Group revenue increased by 0.7% on a currency neutral basis excluding the Group gross margin 39.7% 41.0% (130 bps) impact of the acquisitions and prior year Underlying EBITDA £306.1 £272.7 12.2% 53rd week Underly
Slide 5: Summary Underlying EBITDA to Profit Reconciliation
FY18: SUMMARY UNDERLYING EBITDA TO PROFIT RECONCILIATION £m FY18 FY17 Change (%) Underlying EBITDA 306.1 272.7 12.2% Share scheme 6.0 (2.9) - Depreciation & amortisation (139.4) (148.0) 5.8% Net Interest (19.8) (8.8) 125.0% Dividends (regular income) - 0.7 - Underlying profit before tax 152.9 113.7
Slide 6: Financial Review
SPORTS DIRECT.com FINANCIAL REVIEW
Slide 7: FY18: Group Revenue Bridge
FY18: GROUP REVENUE BRIDGE • Excluding acquisitions and the 53rd week, Group revenue increased by 0.7% on a currency neutral basis 7
Slide 8: FY18: Underlying EBITDA Bridge
FY18: UNDERLYING EBITDA BRIDGE 8
Slide 9: FY18: UK Sports Overview
FY18: UK SPORTS OVERVIEW REVENUE & GROSS MARGIN OPERATING COSTS & UNDERLYING EBITDA Change £m FY18 FY17 (%) Store Wages 174.9 178.7 (1.8%) Premises Costs 210.3 206.1 2.0% Other Costs 218.5 270.7 (19.3%) Total Operating Costs 603.7 654.9 (7.8%) Underlying EBITDA 287.1 260.6 10.2% Associates (9.2) 0.4
Slide 10: FY18: European Sports Overview
FY18: EUROPEAN SPORTS OVERVIEW REVENUE & GROSS MARGIN OPERATING COSTS & UNDERLYING EBITDA Change £m FY18 FY17 (%) Store Wages 100.4 117.1 (14.3%) Premises Costs 90.0 113.5 (20.7%) Other Costs 56.2 67.9 (17.2%) Total Operating Costs 246.6 298.5 (17.4%) Underlying EBITDA 13.5 (22.4) - Associates 0.5 0
Slide 11: FY18: Premium Lifestyle Overview
FY18: PREMIUM LIFESTYLE OVERVIEW REVENUE & GROSS MARGIN OPERATING COSTS & UNDERLYING EBITDA Change £m FY18 FY17 (%) Store Wages 9.1 7.1 28.2% Premises Costs 13.6 11.9 14.3% Other Costs 24.9 16.6 50.0% Total Operating Costs 47.6 35.6 33.7% Underlying EBITDA 6.3 4.4 43.2 FY17 was a 53 week period 11
Slide 12: FY18: Rest of World Overview
FY18: REST OF WORLD OVERVIEW REVENUE & GROSS MARGIN OPERATING COSTS & UNDERLYING EBITDA Change £m FY18 FY17 (%) Store Wages 19.9 3.2 521.9% Premises Costs 22.0 3.3 566.7% Other Costs 38.2 1.8 2,022.2% Total Operating Costs 80.1 8.3 865.1% Underlying EBITDA (22.3) 2.9 - • FY16 & FY17 include Malaysia
Slide 13: FY18: Wholesale & Licensing Overview
FY18: WHOLESALE & LICENSING OVERVIEW REVENUE OPERATING COSTS & UNDERLYING EBITDA Change £m FY18 FY17 (%) Wages 13.5 9.7 (31.5)% Advertising & Promotion 7.7 12.4 (37.9)% Other Costs 21.1 29.3 (28.0)% Total Operating Costs 42.3 61.4 (31.1)% Underlying EBITDA 30.2 26.4 14.4% • Wholesale & licensing Dun
Slide 14: FY18: Net Debt Bridge
FY18: NET DEBT BRIDGE (500) (400) (300) (200) (100) (£155.4m) (£182.1m) (£397.1m) 100 200 300 400 £331.5m |_| — £45.6m £20.9m | (£3.1m) | £69.0m | ¢34.2m FY17 Net EBITDA& Working Disposal of Disposal of Investment Acqusition Purchase of Purchase of Other Interest & Tax Purchase of FY18 Net Debt FX c
Slide 15: FY18: Cash Flow
FY18: CASH FLOW £m FY18 FY17 Underlying EBITDA 306.1 272.7 Realised profit / (loss) on FX contracts 24.0 (23.7) Taxes paid (45.2) (75.3) Working capital - Inventory (119.6) 15.0 Working capital - Debtors/Creditors, other 161.1 68.5 Free cash flow 326.4 257.2 Revaluation of cash in other currencies 4
Slide 16: Outlook and Thank You
• Continuing strong Group performance with Elevation strategy exceeding our expectations • Strong balance sheet • Underlying EBITDA towards top end of range previously stated • 5-15% Underlying EBITDA reiterated for the current year Thank You 16
Sports Direct International — FY2018 Earnings Presentation on 6ix