Slide 1: Kathmandu FY13 Results Presentation
KATHMANDU FY13 RESULTS PRESENTATION For personal use only
Slide 2: Contents
Contents For personal use only • Results Overview • Key Line Items • Country Results • Cash Flow, Balance Sheet, Dividend • Growth Strategy Update • FY14 Outlook • Questions 2
Slide 3: Results Overview
For personal use only Results Overview
Slide 4: Results Overview: Highlights
Results Overview: Highlights For personal use only Summary • Record sales and profit; • Strong result given the difficult retail environment; • Over 1 million Summit Club members; • 17 new stores opened; total permanent stores 136. Sales and Margin • Sales growth $36.9m (10.6% above last year); • Sa
Slide 5: Results Overview: Year-On-Year
Results Overview: Year-On-Year For personal use only Results Overview NZ $m*1 FY13 FY12 DIFF $ DIFF % Sales 384.0 347.1 36.9 10.6% Gross Profit 242.0 219.5 22.5 10.3% Gross Profit Margin 63.0% 63.2% Operating expenses (168.0) (153.0) (15.0) 9.8% % of Sales 43.8% 44.1% EBITDA 74.0 66.5 7.5 11.3% EBIT
Slide 6: Results Overview: Half-Year split YOY
Results Overview: Half-Year split YOY For personal use only Results Overview NZ $m 1H FY13 1H FY12 DIFF $ DIFF % 2H FY13 2H FY12 DIFF $ DIFF % Sales 165.9 146.7 19.2 13.1% 218.1 200.4 17.7 8.8% Gross Profit 104.1 92.0 12.1 13.2% 137.9 127.5 10.4 8.2% Gross Profit Margin 62.7% 62.7% 63.2% 63.6% Opera
Slide 7: Key Line Items
For personal use only Key Line Items
Slide 8: Sales
Sales For personal use only SALES: +10.6% to $384.0m SALES*1 Australia New Zealand United Kingdom • Sales growth year on year:*2 AU 19.5%, NZ 8.6%, UK (12.2)%. $384.0m $347.1m $5.9m • At constant exchange rates sales $306.1m $7.0m 2.0% 1.5% $137.0 growth $51.8m / 14.9%. $245.8m $8.2m 2.7% $126.1 35.
Slide 9: Same Store Sales Growth: Year History
Same Store Sales Growth: 4 Year History For personal use only AU NZ 14.4% 12.3% 9.2% 6.5% 6.7% • Same store sales growth 4.4% 1.8% (5.6% at constant exchange rates); *1 0.8% 0.6% • UK same store sales FY10 FY11 FY12 FY13 down (6.5%); GROUP - Actual Rates GROUP - Constant Rates • 4 year average: *2 1
Slide 10: Gross Profit Margin %
Gross Profit Margin % For personal use only AU NZ UK GROUP 68.8% 66.9% 66.3% 65.5% 65.5% 63.2% 63.2% 63.0% 60.3% 60.6% 57.6% 57.7% 57.4% 57.2% 53.9% 51.9% FY10 FY11 FY12 FY13 SHARE OF BUSINESS (GROSS PROFIT $) AU NZ UK • Remains within 62% to 64% long-term 65.2% 66.1% target range; • Group gross pro
Slide 11: Cost of Doing Business
Cost of Doing Business For personal use only OPERATING EXPENSES: +9.8% to $168.0m • Operating expenses decreased by NZ $m FY13 FY12 DIFF $ DIFF % 30bps as a % of sales YOY Rent 43.8 39.6 4.2 10.6% • Rent flat as a % of sales, but: % of Sales 11.4% 11.4% - Retail rent increased as a % of sales, offse
Slide 12: Earnings
Earnings For personal use only EBITDA $74.0m, +11.3% EBIT *1 $63.4m, +11.2% NPAT $44.2m, +26.6% EBITDA $m EBIT $m 71.4 74.0 66.5 64.0 63.4 57.0 54.4 48.5 FY10 FY11 FY12 FY13 FY10 FY11 FY12 FY13 22.1% 23.3% 19.2% 19.3% 19.7% 20.9% 16.4% 16.5% EBITDA margin % EBIT margin % NPAT $m*2 44.2 39.1 34.9 25.
Slide 13: Country Results
For personal use only Country Results
Slide 14: Australia
Australia For personal use only SALES: A$198.4m, +19.5% Same store sales growth: +6.7% EBITDA (trading result): A$36.0m, +13.9% • EBITDA margin reduction primarily AU gross margin down 60 bps. A $m FY13 FY12 DIFF Sales 198.4 166.0 19.5% • Total operating expenses (excl. depreciation): ‒ FY13 48.2% o
Slide 15: New Zealand
New Zealand For personal use only SALES: NZ$137.0m, +8.6% Same store sales growth: +4.4% EBITDA (trading result): NZ$34.1m, +10.7% • EBITDA uplift follows three flat years. NZ $m FY13 FY12 DIFF • Sales growth at slightly improved gross Sales 137.0 126.1 8.6% margins. Same store sales growth 4.4% 9.2
Slide 16: United Kingdom
United Kingdom For personal use only SALES: UK£3.1m, -12.2% Same store sales growth: -6.5% EBITDA (trading result): UK£(1.1)m, +31.3% • Gross margin impacted by store closures. UK £m FY13 FY12 DIFF • Improved result from re-organised on-going Sales 3.1 3.6 -12.2% stores and cost of distribution. Sam
Slide 17: Cash Flow, Balance Sheet, Dividend
For personal use only Cash Flow Balance Sheet Dividend
Slide 18: Cash Flow
Cash Flow For personal use only • Capital expenditure $17.4m NZ $m FY13 FY12 (LY $21.8m): NPAT 44.2 34.9 ◦ New stores capex: $10.5m Change in working capital (6.1) (12.3) (LY $14.4m): ◦ 17 new stores; Change in non-cash items 7.6 10.0 ◦ 4 relocations; Operating cash flow 45.7 32.5 ◦ $2.2m of FY12 sp
Slide 19: Balance Sheet
Balance Sheet For personal use only • Small reduction in inventories per store YOY*1 NZ $m FY13 FY12 0.8 $0.591 $0.584 Inventories 80.0 73.3 0.6 $0.486 $0.374 Property, plant and equipment 43.4 41.9 0.4 0.2 Intangible assets 234.9 249.1 0 Other assets 15.6 6.7 FY10 FY11 FY12 FY13 Total assets (excl.
Slide 20: Dividend
Dividend For personal use only • NZ 9.0 cps final dividend; full year payout NZ 12.0 cps (2012: 10.0 cps). • Payout ratio within expected 50 to 60% of NPAT; • AU dividend will be fully franked; • NZ dividend fully imputed; • Record date 12 November 2013, Payment date 22 November 2013. 20
Slide 21: Foreign Currency
Foreign Currency For personal use only FORWARD HEDGING POSITION FY14 FY15 • Effective US$ hedge rates FY13: ◦ A$/US$ 1.005 FY13 vs 0.973 FY12; A$ / US$ % covered 90%+ 10%+ ◦ NZ$/US$ 0.791 FY13 vs 0.753 FY12. Effective Rate 0.983 0.911 • Forward Hedging Position: ◦ Longest dated hedges September 2014
Slide 22: Growth Strategy Update
For personal use only Growth Strategy Update
Slide 23: Growth Strategy Update
Growth Strategy Update GROWTH STRATEGY UPDATE For personal use only • New stores continue to perform to expectation • 170 stores targeted for • 15 stores remains target for FY14 New store Australia and New rollout • Flagship store programme almost complete Zealand • Success of new small store format
Slide 24: Growth Strategy Update (continued)
Growth Strategy Update (continued) For personal use only GROWTH STRATEGY UPDATE • Invest in growth • Ongoing investment in research and product development, particularly in categories technical fabrics • Maximise sales • Best in field testing programme established to enhance technical Enhance produc
Slide 25: FY14 Outlook
For personal use only FY14 Outlook
Slide 26: FY14 Outlook
FY14 Outlook For personal use only Kathmandu • Store rollout is on track for 15 new stores in FY14. 7 sites already confirmed at West Lakes (Adelaide), Northland (Melbourne), Uni Hill Outlet (Melbourne), Jindalee Outlet (Brisbane), Emporium (Melbourne), Indooroopilly (Brisbane), and St Lukes (Auckla
Slide 27: Questions
For personal use only Questions
Slide 28: Appendix – Reconciliation of Country Trading Results
Appendix 1 – Reconciliation of Country Trading Results For personal use only Australia (NZ $m) FY13 FY12 New Zealand (NZ $m) FY13 FY12 Segment profit 20.5 29.2 Segment profit 30.3 27.0 Net interest 2.1 2.4 Net interest 1.7 1.8 Facility fees 0.3 0.9 Facility fees 0.3 0.7 Depreciation 7.0 5.9 Deprecia