Premier Investments Limited · ASX:PMV
Premier Investments — H1 2009 Earnings Presentation
32 slides from Premier Investments's earnings presentation, Mar 17, 2009
Slide 1: Premier Investments Limited 2009 Interim Results
For personal use only Premier Investments Limited 2009 Interim Results 17 March 2009
Slide 2: Agenda/Contents
Agenda/Contents For personal use only 1 Financial results 2 Just performance 3 Just strategic review 4 Dividend & Capital Management 5 Guidance 6 Additional Just Group Financial & Operational Information 2
Slide 3: Highlights
AA Highlights Premier 1H2009 accounts include the Just Group for the first time For personal use only Good overall result from Premier includes a credible, well managed contribution from the Just Group in a very challenging environment NPAT $49.1M (1H2008: $21.1M) EPS 41.12c1 (1H2008: 23.5c) Strong
Slide 4: Agenda/Contents
Agenda/Contents For personal use only 1 Financial results 2 Just performance 3 Just strategic review 4 Dividend & Capital Management 5 Guidance 6 Additional Just Group Financial & Operational Information 4
Slide 5: Financial Results
1 Financial Results As previously announced, Premier has moved its financial year end to July in line with Just For personal use only Group’s year end The effect of the change of year end means the 1H 2009 result includes: – Just Group 26 weeks from 27 July 2008 to 24 January 2009 which provides for
Slide 6: Premier – Consolidated Income Statement
Premier – Consolidated Income Statement Comparisons to Premier’s 1H2008 result are of limited value as the business has been transformed from For personal use only predominately a cash box to an owner/operator of a retail business with substantial cash reserves Premier consolidated NPAT for the peri
Slide 7: Premier—Summarised Consolidated Income Statement
Premier—Summarised Consolidated Income Statement Consolidated 6 Months ended Premier acquired For personal use only Period 1 July 08 31 December control of the Just $000’s – 24 January 09 2007 Group in early Aug Sales (Australia & New Zealand) 432,683 - 2008, even though Gross profit (Australia & 25
Slide 8: Premier — Summarised Consolidated Balance Sheet
Premier — Summarised Consolidated Balance Sheet For personal use only 24 January 30 June $000’s 2009 2008 Assets Cash and cash equivalents 337,063 790,341 Inventories 69,267 - Plant and Equipment 75,928 - Premier’s strong Other Assets 68,337 6,658 balance sheet gives Available-for-sale financial ass
Slide 9: Premier — Summarised Consolidated Cash Flow Statement
Premier — Summarised Consolidated Cash Flow Statement For personal use only 7 Months ended 6 Months ended $000’s 24 January 2009 31 December 2007 Net cash flows from (used in) operating activities 29,376 (138,111) Capital Expenditure (20,059) - Acquisition of available-for-sale financial assets (4,0
Slide 10: Agenda/Contents
Agenda/Contents For personal use only 1 Financial results 2 Just performance 3 Just strategic review 4 Dividend & Capital Management 5 Guidance 6 Additional Just Group Financial & Operational Information 10
Slide 11: Just Group March HY Results 2009
For personal use only JUST GROUP 17 MARCH HY RESULTS2009
Slide 12: Just Group Results
Just Group Results 1H09 1H08 Var For personal use only Sales 432,683 424,833 1.8% LFL sales -4.3% Gross Profit 256,093 254,006 Gross margin (%) 58.8% 59.6% -75bps Salaries (86,148) (80,170) 7.5% 19.9% 18.9% 104bps Rent (77,119) (70,280) 9.7% 17.8% 16.5% 128bps Depreciation (11,742) (11,169) 5.1% 2.7
Slide 13: Geographic Segments
Geographic Segments For personal use only Australia New Zealand • Mixed result by brand • LFL sales down 8.0% (LY -1.9%) • LFL sales down 3.2% (LY • Very tough market +3.3%) • Dotti performing very well • Dotti and Jay Jays trading well • Smiggle launched in Nov/Dec with • Portmans remains a focus 6
Slide 14: Other Financial Highlights
Other Financial Highlights For personal use only • Stock turn • Focus on stock control continues • Industry leading stock turn of 5.2 times (LY 5.5 times) • Refinancing • $120m core debt and $17m working capital facility successfully refinanced* for a further 3 years to 2012 • National Australia Ban
Slide 15: Just Jeans Performance
Just Jeans For personal use only Performance • Brand most exposed to general economy • LFL sales down 9.0% • Costs and inventory controlled • 678,300 Just Shop members • 3 stores opened, 3 stores closed • 269 stores at end of period Comparable Store Sales 5.0% 3.8% 3.0% 1.0% -1.0% -3.0% -5.0% -7.0%
Slide 16: Jay Jays Performance
Jay Jays For personal use only Performance • Pleasing performance, with momentum building throughout Q2 • LFL sales growth +0.7% • Strong inventory sell through benefiting gross margin in winter • Unrivalled connection with youth consumers and extremely strong value positioning • 4 stores opened • 2
Slide 17: Jacqui E Performance
Jacqui E For personal use only Performance • Solid trading in very competitive sector • LFL sales down 1.7% • Leadership restructured to enhance focus and direction • 200,526 VIP customers • 3 stores opened, 3 stores closed • 108 stores at end of period Comparable Store Sales 5.0% 3.0% 1.7% 1.0% -1.
Slide 18: Portmans Performance
Portmans For personal use only Performance • Disappointing result with LFL sales down 13.4% • Brand repositioning continuing with encouraging consumer response • Inventory well controlled • New leadership in place • 3 stores opened • 135 stores at end of period Comparable Store Sales 5.0% 3.0% 1.0%
Slide 19: Dotti Performance
Dotti For personal use only Performance • Outstanding performance with LFL sales up 17.4%, cycling double digit growth in 1H08 • Significant gross margin and EBITA margin growth as a result • 5 stores opened • 75 stores at end of period Comparable Store Sales 30.0% 24.9% 25.0% 20.0% 17.4% 15.0% 11.3
Slide 20: Peter Alexander Performance
Peter Alexander For personal use only Performance • Total sales growth of 8.4% despite LFL sales decline of 7.5% • Profitability remains high • 8 stores opened including 4 concession stores in David Jones • 30 stores in Aus/NZ at end of period (incl. 4 DJ’s concessions) Comparable Store Sales 5.2% 5
Slide 21: Smiggle Performance
Smiggle For personal use only Performance • Acquired stores reaching maturity on back of strong LFL sales • New stores/markets performing well • Very successful launch before Xmas in NZ with 6 new stores • Opportunities still missed due to supply chain and team transitions • 10 stores opened in Aust
Slide 22: Agenda/Contents
Agenda/Contents For personal use only 1 Financial results 2 Just performance 3 Just strategic review 4 Dividend & Capital Management 5 Guidance 6 Additional Just Group Financial & Operational Information 22
Slide 23: Strategic Focus Areas
Strategic Focus Areas For personal use only 1. Portmans transformation • Brand repositioning on track with recent sales approaching last year’s levels • New store formats open and being reviewed • New leadership appointed in February 2009 • Remains major focus with plenty of work still to do 2. Recl
Slide 24: Strategic Focus Areas
Strategic Focus Areas For personal use only 4. Smiggle growth • Founder exit and transition to new leadership completed successfully • New Zealand launch in November very successful • Store roll out remains focus 5. International review • Peter Alexander USA business to be downsized in face of unpre
Slide 25: Strategic Focus Areas
Strategic Focus Areas For personal use only 7. Opportunistic acquisition of attractive brands • Many opportunities presented – licensing of international brands and domestic acquisitions • Potential investments/acquisitions must meet strict criteria 25
Slide 26: Agenda/Contents
Agenda/Contents For personal use only 1 Financial results 2 Just performance 3 Just strategic review 4 Dividend & Capital Management 5 Guidance 6 Additional Just Group Financial & Operational Information 26
Slide 27: Dividends and Capital Management
4 Dividends and Capital Management Premier Board has balanced the view of increasing the dividend in the current economic environment For personal use only with the view that Premier should maintain its strong cash reserves for opportunities that may arise The Board has determined to: – Maintain and
Slide 28: Agenda/Contents
Agenda/Contents For personal use only 1 Financial results 2 Just performance 3 Just strategic review 4 Dividend & Capital Management 5 Guidance 6 Additional Just Group Financial & Operational Information 28
Slide 29: Guidance
5 Guidance Current retail environment remains challenging For personal use only The guidance given at the AGM is maintained – That is, from an earnings perspective, we expect that Just Group’s FY2009 EBITA will be around 10% down on 2008, excluding the Just Group take over defence costs – We always
Slide 30: Agenda/Contents
Agenda/Contents For personal use only 1 Financial results 2 Just performance 3 Just strategic review 4 Dividend & Capital Management 5 Guidance 6 Additional Just Group Financial & Operational Information 30
Slide 31: Just Group – Sales & Stores
Just Group – Sales & Stores For personal use only 1st HALF 2009 Stores Sales Growth LFL Sales AUD % % Just Jeans 269 107,084 -8.0% -9.0% Jay Jays 250 132,058 5.2% 0.7% Portmans 135 64,951 -9.7% -13.4% Jacqui E 108 48,335 0.2% -1.7% Dotti 75 37,303 31.1% 17.4% Peter Alexander 30 25,588 8.4% -7.5% Smi
Slide 32: Just Group – Operating Results
Just Group – Operating Results For personal use only 1st HALF H1 2009 H1 2008 CHANGE Reported Excl USA Reported Reported Excl USA Stores 921 36 Sales $’000’s 433,729 432,683 424,834 2.1% 1.8% LFL sales growth % -4.3% 2.6% Gross Profit margin % 58.74% 58.81% 59.56% -82bps -75bps EBITDA $’000’s 64,124