Premier Investments Limited · ASX:PMV
Premier Investments — Shareholder Meeting (November 2011)
19 slides from Premier Investments's shareholder meeting presentation, Nov 29, 2011
Slide 1: Chairman's Address
PREMIER INVESTMENTS LIMITED (A.C.N. 006 727 966) (A.B.N. 64 006 727 966) 29 November 2011 CHAIRMAN’S ADDRESS The 2011 financial year proved to be an extraordinary year which presented very significant challenges to all retail related businesses in Australia. The combination of extreme volatility in
Slide 2: Premier's 2011 delivery and board themes
2 Premier has the experience, strength of management and financial capacity to never be a part of ‘the rest’. At the Premier Board level the key themes in 2011 were how to ensure that our core objectives of strong investment returns and long term wealth creation could be maintained and strengthened;
Slide 3: 2011 Financial Overview
3 • The maintenance of our demonstrated record of rewarding shareholders through strong dividend returns. PREMIER – 2011 FINANCIAL OVERVIEW I will now turn to an overview of Premier’s 2011 results. I refer you to the slide headed ‘Premier – Consolidated Income Statement’. It is important to note tha
Slide 4: Revenues, expenses and balance sheet commentary
4 On a positive note, it is pleasing to see that Premier’s revenues (ex Just Group) have increased and expenses (ex Just Group) have remained relatively flat – and exceptionally low by any comparative measure. Turning briefly now to the slide headed ‘ Premier – Summarised Consolidated Balance Sheet’
Slide 5: Just Group performance and strategy objectives
5 Indeed, gross sales on a comparable week basis were up in 2011. In response to the difficult environment in the second half, Just Group senior management, with the agreement of the Just Group Board, acted to clear inventory in the winter season. Whilst this had a negative impact on the 2011 result
Slide 6: Online business and Smiggle international expansion
6 While we see very substantial opportunity to grow our online business and achieve benefits in both margins and sales volume, the unfortunate fact remains that no Australian based online retail business will achieve its full potential while a fundamentally flawed two tax regime which discriminates
Slide 7: Current Trading and Outlook
7 CURRENT TRADING AND OUTLOOK If I can turn now to current trading and the outlook for the Just Group. The macro trading environment remains extremely challenging with the range of external factors I have previously noted, including the unresolved issues in the global economy, continuing to contribu
Slide 8: Conclusion
8 that maintaining our strong focus on rewarding shareholders was an important practical statement to make to our owners. CONCLUSION In conclusion I would like to express appreciation, on behalf of all of the Premier Directors, to Mark McInnes, the entire senior management team at Just Group and eve
Slide 9: Premier Investments Limited 2011 Annual General Meeting
Premier Investments Limited 2011 Annual General Meeting 29 November 2011
Slide 10: Agenda
Agenda Chairman’s address Resolutions 1
Slide 11: Chairman's address—key highlights
Chairman’s address—key highlights • 2011 financial year result reflects the continuation of an extremely challenging general retail environment • Appointment in April 2011 of Mark McInnes as Chief Executive Officer of Just Group Limited and Chief Executive Officer of Premier Retail with a mandate to
Slide 12: Premier—Consolidated Income Statement
Premier—Consolidated Income Statement 52 weeks 53 weeks to 30 July 2011 to 31 July 2010 $m’s Premier revenues (ex The Just Group) 21.6 16.7 Premier expenses (ex The Just Group) (3.9) (3.7) Premier Retail (The Just Group) underlying EBIT 65.3 84.2* Finance costs (9.7) (7.9) Underlying profit before i
Slide 13: Premier—Summarised Consolidated Balance Sheet
Premier—Summarised Consolidated Balance Sheet $m’s 30 July 2011 31 July 2010 Assets Cash and cash equivalents 307.8 316.6 Inventories 73.4 71.7 Plant and equipment 84.8 91.2 Other assets 37.0 36.3 Available-for-sale financial assets 104.5 72.8 Intangible assets 854.5 854.2 Total assets 1,462.0 1,442
Slide 14: Overview of The Just Group result for full year
Overview of The Just Group result for full year • Total sales $866m (-0.5% on FY10; +1.1% on a comparable weeks basis*) • Gross margin increased by 53bps • CODB up 280bps • FY11 EBIT of $65.3m before one-off costs • FY11 One off costs related to the strategic review $15.8m • FY11 EBIT $49.5m Notes:
Slide 15: Strategic review and update
Strategic review and update Focus Area Status Comments Rejuvenate and reinvigorate the Specific opportunities identified and new leadership 1 core apparel brands teams in place; market conditions remain difficult but teams focused on customer and product Initiate an organisation-wide Significant c
Slide 16: Premier Retail brands
Premier Retail brands 7
Slide 17: 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 FY2011 ordinary fully franked dividend of 36c per share in line with last year • Reaffirms the confidence Directors have in Premier’s
Slide 18: Premier Retail brands
Premier Retail brands 9
Slide 19: Agenda
Agenda Chairman’s address Resolutions 10
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