Myer Holdings Limited · ASX:MYR
Myer — FY2023 Earnings Presentation
33 slides from Myer's earnings presentation, Sep 14, 2023
Slide 1: Full Year 2023 Results
14 September 2023 FULL YEAR 2023 RESULTS CUSTOMER FIRST PLAN DRIVING VALUE FOR ALL STAKEHOLDERS • FY23 TOTAL SALES1 OF $3,362.9 MILLION, REPRESENTING GROWTH 12.5% YOY, AND 12.4% HIGHER THAN FY19 (PRE-COVID) • NPAT2 OF $71.1 MILLION, AN INCREASE OF 18.2% YOY • FINAL FULLY FRANKED DIVIDEND OF 1.0 CENT
Slide 2: Customer First Plan Update
CUSTOMER FIRST PLAN UPDATE Strength of the multi-channel offer drives sales to highest level since 2005 • Total sales1 of $3.36b is the highest since 2005 and reflects the scale of the online business $691m (20.5% of total sales) combined with productivity gains made in physical stores up 10%4 since
Slide 3: Trading update
Trading update In the first six weeks of FY24, Department store8 comparable sales5 are down 1.9% over the corresponding period in the prior year. John King said: “Like all retailers, we continue to remain cautious about the macro- economic environment, however, we are pleased with our strong results
Slide 4: Myer Holdings Ltd Full Year 2023 Results
MYER HOLDINGS LTD FULL YEAR 2023 RESULTS TO 29 JULY 2023 JOHN KING NIGEL CHADWICK Chief Executive Officer Chief Financial Officer
Slide 5: Important Information
Important Information The information in this document is Investors and potential investors should make their own assessment Subject to law, Myer assumes no obligation to update, and take independent professional advice in relation to the review or revise any information contained in this general on
Slide 6: Agenda
Agenda FY23 Highlights FY23 Financial Results Customer First Plan Conclusion Appendices MYER HOLDINGS LTD
Slide 7: Financial Highlights
Financial Highlights STRO N G POW E RF U L M U LTI I M PROV ED RO B U ST R E WA RDING SA L ES GROW TH C H A N NEL O F F E R N PAT 3 BA L A N CE S H E E T S H A R E H OLDERS FY23 HIGHLIGHTS 12.5% 20.5% $71.1m $120m 9.0c Total sales1 Group online2 sales mix NPAT3 up 18.2% net cash per share FY23 full
Slide 8: In FY23 we delivered our best sales result since 2005
In FY23 we delivered our best sales result since 2005 F Y T O TA L S A L E S 1 ( $ M ) +3.0% Growth driven by the strength of multi-channel offer as CAGR customers returned to stores after closures in FY22, +12.4% +12.5% underpinned by a leading brand and customer loyalty proposition FY23 HIGHLIGH
Slide 9: Multi-channel offer is a continued point of strength
Multi-channel offer is a continued point of strength Group +3.2% Online1 sales on 2H22 FY23 HIGHLIGHTS Online 20.5% 2H23 Group online1 sales returned to growth after Sales Mix Now $691 million annualisation of lockdowns in 1H22 with FY23 representing 163% growth vs FY19 Online market share Growth2
Slide 10: Loyalty continues to provide greater contribution and commercialisation benefits
Loyalty continues to provide greater contribution and commercialisation benefits MYER one 7.3m Digitally contactable members (+10.0% YoY) Record year for MYER one engagement, new customer acquisition and active customer numbers 720k FY23 HIGHLIGHTS Member Acquisition New Members Enhanced analyti
Slide 11: Merchandise offer is well placed with a disciplined focus
Merchandise offer is well placed with a disciplined focus Making the Big Bigger +35% Sales growth from our Top 20 We continue to deepen the relationships with our brands since FY19 key brand partners which secures greater investment from brands, exclusive product and Myer only FY23 HIGHLIGHTS 19%
Slide 12: Myer has emerged from the pandemic stronger across all core metrics
Myer has emerged from the pandemic stronger across all core metrics, underpinned by our Customer First Plan GROUP ONLINE1 SALES ($M); IN-STORE SALES % OF CLEARANCE INVENTORY3 P E N E T R AT I O N ( % ) PRODUCTIVITY2 O F T O TA L +163% +10% -640bps FY23 HIGHLIGHTS 723 691 14% 24% 21% 262 8% 6% 9% FY1
Slide 13: Agenda
Agenda FY23 Highlights FY23 Financial Results Customer First Plan Conclusion Appendices MYER HOLDINGS LTD
Slide 14: NPAT increased 18.2% over FY22
NPAT 1 increased 18.2% over FY22 $ MILLIONS FY23 F Y2 2 C H A N GE D E PA R T M E N T S T O R E S A L E S Total Sales2 3,362.9 2,989.8 12.5% Operating Gross Profit 1,224.6 1,145.2 6.9% FY23 FINANCIAL RESULTS Cost of Doing Business1 (824.1) (745.2) (10.6%) 24.5% $810m EBITDA1 400.5 400.0 0.1% EBIT1 1
Slide 15: Operating Gross Profit
Operating Gross Profit O P E R AT I N G G R O S S P R O F I T $ M a n d M A R G I N % o f T O TA L S A L E S FY22 – FY23 GROSS PROFIT BRIDGE OGP OGP Margin % 38.30% - (0.44) bps (0.36) bps (0.64) bps (0.44) bps 36.42% margin(%) FY23 FINANCIAL RESULTS 6.9% 39.71 38.03 38.30 36.42 40 16 13 35 22 16 1,
Slide 16: Cost of Doing Business Margin improved by 42 bps, despite further opex investment
Cost of Doing Business 1 Margin improved by 42 bps, despite further opex investment COST OF DOING BUSINESS1 $M and GROUP COST FY22 – FY23 M A R G I N % t o T O TA L S A L E S STRUCTURE COST OF DOING BUSINESS1 BRIDGE Operating Wages CODB Margin (%) FY23 FINANCIAL RESULTS Operating Other Costs 19 40 S
Slide 17: Operating Cash Flow
Operating Cash Flow $ MILLIONS FY23 FY22 Operating cash flow (before interest & tax) unchanged at $387 million EBITDA 400.5 400.0 Income tax higher as instalments normalised post COVID-19 Add implementation costs and ISIs (15.4) (13.2) Capital expenditure includes expenditure on new Point of S
Slide 18: Balance Sheet
Balance Sheet $ MILLIONS FY23 FY22 % OF INVENTORY1 AGED UNDER 6 MONTHS Inventory 371.3 371.4 Creditors (401.7) (429.3) FY23 FINANCIAL RESULTS 81% Other Assets & Liabilities 67.9 50.5 70% 62% 79% 77% Right-of-Use Assets 1,101.4 1,177.8 FY19 FY20 FY21 FY22 FY23 Lease Liabilities (1,644.9) (1,699.2) Pr
Slide 19: Strong liquidity position supports execution of the Customer First Plan and shareholder returns
Strong liquidity position supports execution of the Customer First Plan and shareholder returns NET CASH / (DEBT) $M – FY19 TO FY23 Fully franked final dividend of 1.0 cent per share declared, bringing total FY23 dividends to 9.0 cents per share (including 4.0 FY23 FINANCIAL RESULTS cents per shar
Slide 20: Agenda
Agenda FY23 HIGHLIGHTS FY23 FINANCIAL RESULTS Customer First Plan Conclusion Appendices MYER HOLDINGS LTD
Slide 21: Customer First Plan has driven significant value creation and has continued to evolve
Customer First Plan has driven significant value creation and has continued to evolve CUSTOMER FIRST PLAN Accelerate Online CUSTOMER FIRST PLAN Continue to build scale and leverage multi-channel capability Providing a strong value proposition for our customers Factory to Customer with greater Introd
Slide 22: Myer is well positioned for the current economic environment
Myer is well positioned for the current economic environment We’ve repositioned the Unique strengths to provide We’re continuing to invest business, underpinned by the customer value and a reason strongly behind long term CUSTOMER FIRST PLAN Customer First Plan to shop at Myer value levers Transfo
Slide 23: Country Road Group returns to Myer
Country Road Group returns to Myer In-store CUSTOMER FIRST PLAN 83 shop in shop installations now In-store now Myer Online Available now Coming Coming in 1H24 93 shop in shop installations MYER HOLDINGS LTD 20
Slide 24: We continue to invest in technology and our people to drive our in-store service
We continue to invest in technology and our people to drive our in-store service POINT OF SALE MOBILITY 2,448 new Point of Sale devices; 3,750 mobility devices now in- providing real time transaction store; providing the foundation CUSTOMER FIRST PLAN details for customers, improved for mobile P
Slide 25: We are rapidly changing our physical footprint to improve productivity
We are rapidly changing our physical footprint to improve productivity STORE NETWORK Refurbishments at Chermside, Tea Tree Plaza, Marion and Ballarat CUSTOMER FIRST PLAN Relaying of stores/floors and new fixturing deployed Point of Sale consolidation +10% RFID trials in selected categories
Slide 26: Our MYER one Rewards and Pay with Points program uniquely positions us
Our MYER one Rewards and Pay with Points program uniquely positions us to deliver more value for customers Loyalty rewards is becoming an increasingly important factor for Australian consumers in future with customers who have access to points spend significantly more than customers who do not CUS
Slide 27: Agenda
Agenda FY23 Highlights FY23 Financial Results Customer First Plan Conclusion Appendices MYER HOLDINGS LTD
Slide 28: Current Trade Update
Current Trade Update First six weeks of 1H24 has delivered comparable sales1,2 of -1.9% on the prior year 1 s t S I X W E E K S C O M PA R A B L E S A L E S 1 , 2 CONCLUSION -1.9% FY23 FY24 DEPARTMENT STORES MYER HOLDINGS LTD 1 Department Stores only 25 2 In addition to the historical definition o
Slide 29: Conclusion
Conclusion Our Customer First Plan has been, and continues We remain cautious on the future outlook to be, the right Plan and has underpinned our given the economic uncertainty but are growth and momentum in FY23 confident in our approach and the significant deliverables expected to land in FY24
Slide 30: Agenda
Agenda FY23 Highlights FY23 Financial Results Customer First Plan Conclusion Appendices MYER HOLDINGS LTD
Slide 31: Appendix 1: Income Statement – post AASB 16
Appendix 1: Income Statement – post AASB 16 $ MILLIONS FY23 FY22 CHANGE Total Sales1 3,362.9 2,989.8 12.5% Operating Gross Profit 1,224.6 1,145.2 6.9% Cost of Doing Business2 (824.1) (745.2) 10.6% APPENDICES EBITDA2 400.5 400.0 0.1% Depreciation2 (204.3) (215.8) (5.3%) EBIT2 196.2 184.2 6.5% Net Fin
Slide 32: Appendix 2: NPAT reconciliation to Statutory Accounts
Appendix 2: NPAT reconciliation to Statutory Accounts $ MILLIONS EBIT INTEREST TAX NPAT Statutory reported result 180.8 (91.5) (28.9) 60.4 Add back: Implementation costs and individually significant items Restructuring, space exit costs and other asset impairments 15.4 - (4.7) 10.7 APPENDICES Result
Slide 33: Appendix 3: Income Statement – AASB 16 impact
Appendix 3: Income Statement – AASB 16 impact FY23 AASB 16 FY23 FY22 CHANGE $ MILLIONS (STATUTORY) IMPACT (PRE-AASB 16) (PRE-AASB 16) (PRE-AASB 16) Total Sales1 3,362.9 - 3,362.9 2,989.8 12.5% Operating Gross Profit 1,224.6 (0.7) 1,223.9 1,144.9 6.9% Cost of Doing Business2 (824.1) (212.7) (1,036.8)