Premier Investments Limited · ASX:PMV
Premier Investments — Shareholder Meeting (November 2010)
21 slides from Premier Investments's shareholder meeting presentation, Nov 26, 2010
Slide 1: Chairman's Address
PREMIER INVESTMENTS LIMITED (A.C.N. 006 727 966) (A.B.N. 64 006 727 966) 26 November 2010 CHAIRMAN’S ADDRESS INTRODUCTION The 2010 financial year was a good year for Premier. Not an exceptional year – largely, but not exclusively, due to external factors which impacted the entire Australian retail s
Slide 2: Just Group acquisition and 2010 financial overview
2 The Premier Board believes that the successful achievement of these outcomes is consistent with our core objective – the prudent management of shareholder funds to deliver strong investment returns and grow sustainable long term shareholder value. The Premier result is now highly contingent on the
Slide 3: Key metrics of Premier's performance
3 At this point, I’d like now to take the opportunity to point out some of the key metrics of Premier’s performance. I would refer you to the slide headed ‘Premier – Consolidated Income Statement’ Premier achieved an overall net profit after tax of $79.6 million and earnings per share of 52.8 cents.
Slide 4: Just Group 2010 Overview
4 JUST GROUP – 2010 OVERVIEW Just Group’s result was impacted by two significant factors: firstly - as all Australian retailers have noted - a very difficult general retail environment, and secondly, the impact of the turnaround of Portmans. Good retailers are not defined when times are good. In ret
Slide 5: Premier's commitment to shareholders
5 I would like to again thank the Just Group management team, led by Jason Murray, the Just Group Board and all of our team members for their commitment and contribution during the year. A key priority for Premier continues to be improvement and enhanced returns from our Just Group investment. PREMI
Slide 6: Interest Rates
6 INTEREST RATES As a former member of the Reserve Bank Board I have a very high regard for the institution, its record and the current Governor and Board. I fully understand the difficult task of balancing a range of factors and taking decisions in the present to meet anticipated future outcomes. T
Slide 7: Unfair competition from online retailers
7 The issue is not about a fear of competition. It is about unfair competition and its consequences. The Australian retail sector is one of the most competitive in the world – we thrive on competition and the continuous improvement it delivers. The real issue arising from unfair competition is the i
Slide 8: Acquisition opportunities and growth
8 With that very clear qualification, I think it is more likely than not that we will have another business at this time next year.” As is now clear, that very clear qualification prevailed. We actively reviewed a number of potential opportunities, some to quite an advanced stage but, in the end, no
Slide 9: Just Group outlook for FY2011
9 Just Group management has a comprehensive plan for each of its 7 brands for the critical Christmas and January sales period and is well positioned to leverage any significant upturn in retail spending. Directors anticipate a significant improvement in the second half as the business cycles the abn
Slide 10: AGM 2010
PREMIER INVESTMENTS a a a) AGM 2010 26 November 2010
Slide 11: Agenda
Agenda 1 Chairman’s Address 2 Resolutions 2
Slide 12: Chairman's Address
(ail PREMIER INVESTMENTS Pew TT ED | @ Chairman’s Address
Slide 13: Highlights
Highlights • Solid profit result in tough trading conditions • Ongoing g g shareholder returns – FY2010 total dividends of 66c per share comprising: • Fully franked ordinary dividends of 36c per share; and • Fully franked special dividends of 30c per share • Positioned for future growth – Significan
Slide 14: Premier—Consolidated Income Statement
Premier—Consolidated Income Statement 26 Jul 09 1 Jul 08 Premier NPAT for FY2010 of $79.6m $m to 31 Jul 10 to 25 Jul 09 Just Group reported Premier revenues (ex Just Group) 16 7 16.7 25 5 25.5 sales for FY2010 up 3 percent to $870m Premier expenses (ex Just Group) (3.7) (3.4) and EBIT of $84.2m in t
Slide 15: Premier - Consolidated Balance Sheet
Premier - Consolidated Balance Sheet $m 31 Jul 10 25 Jul 09 Premier has Assets Cash and cash equivalents 316.6 328.7 maintained a robust Inventories 71.7 69.5 cash position Plant and equipment 91.2 91 2 73.3 73 3 Other assets 36.3 36.2 Clean inventory Available-for-sale financial assets 72.8 28.7 po
Slide 16: Portmans
portmans JACQUIE UIE
Slide 17: FY10 – Two distinct halves
FY10 – Two distinct halves… 1st Half Total Clothing Sales - Aust 2nd Half Economy 12.0% 1st Half 20.0% Total Clothing Sales - Aust 2nd Half 10.0% 15.0% 8.0% 6.0% 10.0% 4.0% 5.0% 2.0% 0.0% 0.0% -2.0% -5.0% -4.0% -10.0% Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul FY09 FY10 FY09 FY10 • Economy gene
Slide 18: Just Group – Summary Result
Just Group – Summary Result FY10 FY09 Var Sales 870,385 844,853 +3.0% Issue Response LFL sales* -3.7% -1.6% Gross Profit** 519,073 500,827 Gross margin (%)** 59.6% 59.3% 36bps Stores increased by 53 Reduced store rosters Increased hourly rates Headcount freeze Salaries (195,767) (175,127) +11.8% und
Slide 19: Portmans: Turnaround on track
Portmans: Turnaround on track… Five key drivers Status 1. Understand the customer and Target customer clear and brand brand p proposition p alignment g p progressing g g well 2. Have the right team Team in place 3. Improve the product offer Improved offer receiving encouraging response from existing
Slide 20: Dividend and capital management
Dividend and capital management • Premier’s Board continues to focus on rewarding shareholders and maintaining cash reserves for opportunities that may arise • Total FY2010 dividends of 66c per share – Fully franked ordinary dividends of 36c per share – Fully franked special dividends of 30c per sha
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