Myer Holdings Limited · ASX:MYR
Myer — Shareholder Meeting (November 2014)
37 slides from Myer's shareholder meeting presentation, Nov 21, 2014
Slide 1: Annual General Meeting
ANNUAL GENERAL For personal use only MEETING Friday 21 November 2014 BERNIE BROOKES CEO and Managing Director Image: Wayne by Wayne Cooper (Myer Exclusive Brand)
Slide 2: Annual General Meeting agenda
For personal use only Annual General Meeting FY2014 result Strategic update Sustainability Current trading and Outlook Current focus
Slide 3: FY2014 result
FY2014 result • Total sales flat at $3,143 million For personal use only – Maintained total sales despite significant disruption – Four top 25 stores under refurbishment, two store closures • Sales on a comparable store basis up 1.2% – Encouraging result in a challenging retail environment, particul
Slide 4: FY2014 result (continued)
FY2014 result (continued) • EBITDA $252.6 million, EBITDA margin 8.0% For personal use only • EBIT $160.3 million, EBIT margin 5.1% – Depreciation increased by 2.8% to $92.3 million – EBIT result reflects previously flagged increase in CODB • NPAT down 22.6% to $98.5 million • Final dividend of 5.5
Slide 5: Agenda: Strategic update
For personal use only Annual General Meeting FY2014 result Strategic update Sustainability Current trading and Outlook Current focus
Slide 6: Delivering our strategy
Delivering our strategy For personal use only Improve customer service Enhance our merchandise offer Strengthen our loyalty program Build a leading omni-channel offer Optimise our store network Image: Maxwell & Williams, Salt & Pepper and Vue (Myer Exclusive Brand) STRATEGIC UPDATE / 6
Slide 7: Improve customer service: service initiatives
Improve customer service Service initiatives For personal use only • ‘Feedback ASAP’ digital customer interactions exceeded 42,000 • Improved customer satisfaction as measured by Net Promoter Score • Commenced roll-out of enhanced theatre and experiences in-store • Personal shopping now in 29 stores
Slide 8: Enhanced theatre and in-store experiences
Enhanced theatre and in-store experiences For personal use only
Slide 9: Improve customer service: efficiency initiatives
Improve customer service Efficiency initiatives For personal use only • Focus on process efficiencies to allow team members to spend more time with customers • Online booking system for services including personal shopping and in-store services • New initiative to improve stock flow now in 13 stores
Slide 10: Enhance our merchandise offer
Enhance our merchandise offer • Focus on being first choice for Fashion, Cosmetics and the Home For personal use only • Best performing brands included: • Cosmetics a consistently strong performer – Nine consecutive quarters of growth – Sales growth achieved despite significant price deflation – Hig
Slide 11: Optimising the Myer Exclusive Brands strategy
Enhance our merchandise offer Optimising the Myer Exclusive Brands strategy For personal use only • Re-engineering of Myer Exclusive Brands portfolio − Focus on key master brands that span multiple categories supported by improved marketing − Consolidation of certain brands, small number of brand ex
Slide 12: For personal use only
For personal use only
Slide 13: Leading brands recently introduced at Myer
Leading brands recently introduced at Myer For personal use only ALEX PERRY BY JOHNNY M.J. BALE LITTLE JOE WOMEN L LISA HO
Slide 14: Strengthen our loyalty program
Strengthen our loyalty program • A leading Australian loyalty program with $2,162 million in sales For personal use only • Over $50 million in MYER One Rewards Cards distributed in FY2014 − Average spend on redemption of 4x the card value • Pleasing results from engagement and retention strategy for
Slide 15: Build a leading omni-channel offer
Build a leading omni-channel offer Solid progress on delivering omni-channel strategy For personal use only • Online sales more than doubled – Supported by improved customer engagement and average transaction value growth • Website visits grew by 74 percent to over 38 million visits • Sales via mobi
Slide 16: In-house digital team creating inspirational content
In-house digital team creating inspirational content and marketing campaigns For personal use only 343,000 followers 22,000 followers 88,000 followers 2.2 million email addresses 3.7 million mobile numbers STRATEGIC UPDATE / 16
Slide 17: Build a leading omni-channel offer: MyCustomer Orders
Build a leading omni-channel offer MyCustomer Orders For personal use only • iPads with a customised Myer ‘app’ - Significantly expanded range available to customers in every store - Provides a new sales channel for team members in stores - App provides customer information and order capability • En
Slide 18: Optimise our store network
Optimise our store network • Four significant refurbishments now completed For personal use only − Space handed back to landlord to improve productivity − Enhanced layouts and merchandise offer with introduction of new brands • Store closures: Dandenong (October 2013), Elizabeth (February 2014) • Op
Slide 19: Adelaide Refurbishment
Adelaide Refurbishment
Slide 20: Indooroopilly Refurbishment
Indooroopilly Refurbishment
Slide 21: Mt Gravatt Store Opening
Mt Gravatt Store Opening
Slide 22: Macquarie Refurbishment
For personal use only Macquarie Refurbishment
Slide 23: Miranda Refurbishment
For personal use only Miranda Refurbishment
Slide 24: Joondalup Store Opening
For personal use only Joondalup Store Opening
Slide 25: Agenda: Sustainability
For personal use only FY2014 Results FY2014 result Strategic update Sustainability Current trading and Outlook Current focus
Slide 26: Sustainability
Sustainability • My customer For personal use only – Awarded ‘Department Store of the Year’ for the second year in a row by Roy Morgan Research – Awarded more than $50 million in MYER one Rewards Cards • My team – 83% Employee engagement – 79.6% of team members are female Image: Precious Metal Ball
Slide 27: Sustainability
Sustainability • My environment For personal use only – 5.0% reduction in carbon emissions – 2.9% reduction in energy use – More than 70% of merchandise is floor-ready • My business – Rabbit angora added to our ‘no fur policy’ – Azo dyes prohibited from all Myer products – Sixth consecutive year of
Slide 28: Agenda: Current trading and Outlook
For personal use only FY2014 Results FY2014 result Strategic update Sustainability Current trading and Outlook Current focus
Slide 29: Q1 FY2015 sales
Q1 FY2015 sales • Trading gathered momentum as the quarter progressed: For personal use only – Completion of three major store refurbishments (Adelaide, Indooroopilly, Macquarie) – Opening of brand new store at Mt Gravatt • Total sales of $691.6 million*, up 0.1 percent compared to last year • Compa
Slide 30: FY2015 outlook
FY2015 outlook • Anticipate sales growth For personal use only • Modest growth in operating gross profit margin driven by: − Improved sourcing − Mix benefit of Myer Exclusive Brands growth − Offset by lower average exchange rate • Committed to investing in the business • Strong cash generation expec
Slide 31: Agenda: Current focus
For personal use only FY2014 Results FY2014 result Strategic update Sustainability Q1 sales and FY2015 outlook Current focus
Slide 32: Current strategic priorities
Current strategic priorities Customer • Strengthen frontline management capability in store For personal use only service • Enhance in-store theatre program • Further improve Net Promoter Score • Enhanced design, speed to market, product development capability Merchandise • Attract new Australian an
Slide 33: For personal use only
For personal use only
Slide 34: Giftorium: unique Christmas gifting
Giftorium: unique Christmas gifting • Giftorium is a unique concept in Australian retailing in all stores For personal use only • Developed to bring fun and theatre to Christmas • 2.2 million Christmas gifts • In-store events, theatre, product demonstrations totalling approximately 5,000 hours of ev
Slide 35: Major brand re-launch 'find wonderful'
Major brand re-launch ‘find wonderful’ For personal use only • First significant brand re-launch in 10 years, in collaboration with new creative agency, Clemenger BBDO • Follows extensive research into Myer customers and their desires and aspirations • Major television campaign supported by cinema,
Slide 36: Annual General Meeting
ANNUAL GENERAL For personal use only MEETING Friday 21 November 2014 BERNIE BROOKES CEO and Managing Director Image: Wayne by Wayne Cooper (Myer Exclusive Brand)
Slide 37: Disclaimer
Disclaimer For personal use only The financial information includes non-IFRS information which has not been specifically audited in accordance with Australian Accounting Standards but has been extracted from the Full-Year Financial Report. Q1 FY2015 numbers are unaudited. This release may contain “f