Signet Jewelers Limited · NYSE:SIG
Signet Jewelers — Non-Deal Roadshow (September 2012)
22 slides from Signet Jewelers's roadshow presentation, September 2012
Slide 1: September 2012
CIGNET JEW ELLER S September 2012
Slide 2: Forward Looking Statements & Other Disclosure Matters
Forward Looking Statements & Other Disclosure Matters Forward-Looking Statements - This presentation contains statements which are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, based upon management’s beliefs and expectations
Slide 3: Why Invest in Signet
Why Invest in Signet Number 1 specialty jewelry retailer in US and UK with sustainable competitive strengths exceptional customer experience ability to leverage supply chain leadership development & growth of branded differentiated and exclusive merchandise high customer awareness driven b
Slide 4: Largest US & UK Specialty Jeweler
Largest US & UK Specialty Jeweler Sales of $3,749.2 million – about 80% US / 20% UK Kay Jewelers - #1 US mid market brand H.Samuel - #1 in UK Sales: $1,786.8m Stores: 920 in 50 states Sales: $389.0m Stores: 337 Jared - #1 US Off-Mall “Category Killer” Ernest Jones - #1 UK upper middle market Sales:
Slide 5: Contrast Between US & UK
Contrast Between US & UK 7% Merchandise Mix 7% 8% 28% 10% 30% US UK 75% 12% 23% Diamonds Gold & silver Diamonds Gold & Silver Other jewelry Watches Other jewelry Watches Gifts & other 5
Slide 6: Q2 Fiscal 2013 Results Highlights
Q2 Fiscal 2013 Results Highlights Same store sales up 7.1% US division up 8.2% UK division up 2.1% Operating margin of 13.0%, up 20 bpts Diluted earnings per share $0.85, up $0.09 or 11.8% $196.5 million share repurchases completed 6
Slide 7: US Performance
US Performance Sales Change in same Change in store sales total sales Q2 Fiscal 2013 Kay $418.6m 12.5% 13.9% Jared $222.4m 2.4% 4.0% Regionals $60.9m 3.1% (1.3)% US division $701.9m 8.2% 9.2% Operating income, net $117.3m up 12.4% Operating margin 16.7% up 50 bpts 7
Slide 8: US Merchandising Initiatives
US Merchandising Initiatives Building on success Focused on delighting the customer Ready to win 8
Slide 9: Continuing Our Growth in Digital Sales
Continuing Our Growth in Digital Sales Enhanced Kay & Jared websites launch in October Continued drive into social media and mobile capabilities Roll out of in-store sales technology 9
Slide 10: Ready to Win
Ready to Win Exciting new products Innovative new advertising campaigns Professional and well-trained sales teams 10
Slide 11: Strengthening Our Supply Chain
Strengthening Our Supply Chain Rio Tinto sightholder 11
Slide 12: UK Performance
UK Performance Sales Change in Change in same store total sales sales at CER1 Q2 Fiscal 2013 H.Samuel $78.7m 0.1% (0.3)% Ernest Jones $73.3m 4.4% 3.2% UK division $152.0m 2.1% 1.4% Operating income, net $(0.3)m Operating margin (0.2)% down 200 bpts 1. CER=Constant Exchange Rates; non-GAAP measure. 1
Slide 13: Ready to Win
Ready to Win Exciting merchandise initiatives New concept stores Continued growth in digital sales New and improved advertising support for the business 13
Slide 14: Building for the Future
Building for the Future Objective to deliver 10% plus operating margin by Fiscal 2015 in the UK Build on market leadership Expand the brand portfolio Rationalize real estate portfolio Restructure the operating costs 14
Slide 15: Q2 Fiscal 2013 Sales Performance
Q2 Fiscal 2013 Sales Performance US UK Signet Sales Q2 Fiscal 2013 $m 701.9 152.0 853.9 Sales Q2 Fiscal 2012 $m 643.0 154.6 797.6 Change in sales % % % Change in same store sales 8.2 2.1 7.1 Change in store space, net 1.0 (0.7) 0.6 Change in total sales at constant 9.2 1.4 7.7 exchange rate1 Exchang
Slide 16: Q2 Fiscal 2013 Reconciliation
Q2 Fiscal 2013 Reconciliation % of sales Operating Income Q2 Fiscal 2012 $102.3m 12.8% Gross margin movement $16.4m (0.6)% Selling, general & admin. expense movement $(15.8)m 0.1% Other operating income movement $8.0m 0.7% Operating Income Q2 Fiscal 2013 $110.9m 13.0% Net interest $(0.7)m Income bef
Slide 17: SG&A Reconciliation
SG&A Reconciliation $m % of Sales SG&A Q2 Fiscal 2012 224.5 28.2% Change in net advertising investment 8.3 (0.8)% Store expenses 4.5 0.6% Change in other items 3.0 0.3% SG&A Q2 Fiscal 2013 240.3 28.1% 17
Slide 18: Balance Sheet Highlights
Balance Sheet Highlights at July 28, 2012 Cash $237.5 million Returning cash to shareholders $287 million share repurchases YTD $19 million dividends paid Net accounts receivable $1,032.2 million Inventories $1,312.8 million 18
Slide 19: Credit Portfolio Remains Strong
Credit Portfolio Remains Strong 8.0 15.0 7.0 6.0 12.0 5.0 Net bad 9.0 Average debt 4.0 monthly as % of total 3.0 6.0 collection rate % US sales 2.0 3.0 1.0 0.0 0.0 19
Slide 20: Investing for Growth – Capital Spending
Investing for Growth – Capital Spending Annual capital spending currently expected to range from $155 million - $165 million Projected store Kay Jared Regionals Total US UK Total count Signet January 28, 2012 920 183 215 1,318 535 1,853 Openings, 43 8 - 51 3 54 planned Closures, planned (10) - (18
Slide 21: Fiscal 2013 Guidance
Fiscal 2013 Guidance Q3 Fiscal 2013 low to mid single digit same store sales eps of $0.34 - $0.38 Q4 Fiscal 2013 - impact of 53rd week increase sales by approximately $50 million operating loss of $2 - $4 million 21
Slide 22: LEO DIAMOND
LEO DIAMOND