Marks And Spencer Group Plc · LSE:MKS
Marks And Spencer — Investor Presentation (February 2013)
44 slides from Marks And Spencer's investor presentation, February 2013
Slide 1: 1
1
Slide 2: Part 1: International Update Istanbul 2013
PART 1: INTERNATIONAL UPDATE ISTANBUL 2013 Marc Bolland Chief Executive 2
Slide 3: Transforming the business
Transforming the business 2010 2013 Traditional, 2010 International, 2010 British Multi-channel Retailer Retailer
Slide 4: Where we came from
Where we came from Strong M&S brand Strong retail & trading Strong quality sourcing 2010 Limited organisational ‘bench Unclear sub-brands 2010 2010 strength’ NOVEMBER Stores lacking inspiration 2010 2010 2010 Systems not fit for purpose 2010 Poor online & multi-channel capability 2010 2010 Complex a
Slide 5: Where we will be in 14 months
Where we will be in 14 months Strong M&S brand Strong retail & trading Strong quality 2010 Clear sub-brands 2010 2010 Strong Organisation ‘Concept’ stores 2010 2013 2010 2010 New systems New multi-channel platform & EDC 2010 2010 New supply chain (2015) 2010 International capability 5
Slide 6: Part 2: International Update Istanbul 2013
PART 2: INTERNATIONAL UPDATE ISTANBUL 2013 Jan Heere Director of International 7
Slide 7: Istanbul - February 2013
Istanbul - February 2013 Tuesday (pm) Setting the scene and progress to date Jan Heere Delivering for our customers Steve Finlan Q+A All Dinner All Wednesday (am) Franchise model Mark Koprowski FIBA – A view from our Franchise partner Oya Sener International multi-channel Laura Wade-Gery Summary Jan
Slide 8: Group strategy
Group strategy ‘To become a truly International, Multi-channel retailer’ International Drive By Drive UK LFL multi-channel international growth 2015 retailer presence By A leading UK UK space and LFL International multi-channel 2013 growth retailer company BRAND 2010 STORES CLOTHING to Focus on UK H
Slide 9: International vision
International vision To become an international, multi-channel retailer with authority in the territories in which we operate Build an international organisation Grow in focus markets Choose the right business model for each market Multi-channel approach to market expansion
Slide 10: Where we were in 2010
Where we were in 2010 Traditional UK retailer Export organisation Shotgun approach to expansion 11
Slide 11: Where are we now
Where are we now Stronger international organisation Clearer catalogue and enhanced shopping experience Improved partner relationships 12
Slide 12: International is a profitable business
International is a profitable business International UK 2011/12 operating margin 13% 8% 2011/12 ROCE 34% 15% 13
Slide 13: Stronger international organisation
Stronger international organisation Best in class management team recruited from leading global retail/FMCG Experienced M&S talent Strong local team INTERNATIONAL MANAGEMENT Multicultural team, best in class retail experience Organised in 3 regions COUNTRY DIRECTORS M&S experienced professionals LOC
Slide 14: Business models
Business models 2011/12 REVENUE* 36% 47% 17% DESIRED REVENUE 50% 40% 10% * M&S reported sales
Slide 15: Future franchising plans
Future franchising plans Change Central Europe to Franchise Franchise standalone food in Europe Evaluate franchise or partner in China for growth Open new territories with franchise model 16
Slide 16: New way of driving growth in emerging markets
New way of driving growth in emerging markets Follow shopping mall development Estimate that over 1000 new shopping malls will be built in key territories over the next 3 years Select the best malls Malls will drive traffic
Slide 17: International business today
International business today Clear geographic focus Sales £1.1bn in 11/12 50 territories 7 in-country websites 412 stores 5.3m sq ft
Slide 18: Middle East region including Turkey, Russia & Ukraine
Middle East region including Turkey, Russia & Ukraine 22% of international sales 100% franchise 140 stores
Slide 19: Turkey, Russia & Ukraine FIBA
Turkey, Russia & Ukraine FIBA Partner: FIBA - Franchise Store Numbers: Turkey 47, Russia 38, Ukraine 12 Development: 130 stores by 2015/16
Slide 20: Middle East franchises
Middle East franchises AL FUTTAIM AL HOKAIR Store Numbers: 21 Store Numbers: 17 Partner Size: 8 territories Partner Size: 4 territories Development: 42 stores by 2015/16 Development: 40 stores by 2015/16
Slide 21: Europe region
Europe region Including Ireland Excluding Ireland 54% of sales 35% of sales 85% Owned 67% Owned 15% Franchise 33% Franchise 153 stores 132 stores 6 in-country websites
Slide 22: Mixed ownership model in Western Europe
Mixed ownership model in Western Europe • Bricks and clicks strategy • Supported by UK infrastructure • Complemented by franchise growth
Slide 23: France
France Store Numbers: 2 www.marksandspencer.fr – launched Oct 2011 Operating Model: Wholly Owned
Slide 24: So Ouest
So Ouest 80,000 visitors in first 3 days Sales 26% ahead of plan Profitable within two years
Slide 25: France 2013/14
France 2013/14 Store Numbers: 5 owned plus franchise www.marksandspencer.fr – launched Oct 2011 Operating Model: Wholly Owned/ Franchise
Slide 26: France store investment criteria
France store investment criteria Payback < 5 years IRR > 15% Builds brand Supports future franchise model
Slide 27: Western Europe multi-channel
Western Europe multi-channel Websites launched in 2011 • France •Websites launched in 2012 • Ireland • Belgium • Austria • Spain • Germany 28
Slide 28: Legacy businesses
Legacy businesses • Difficult macro-economic environments Ireland • 115 stores accounts for 49% of international sales Greece • Committed to the markets Czech Republic • Strong management in place • Improved catalogue 29
Slide 29: Asia update
Asia update 23% of international business 74% Owned 26% Franchise 127 stores China online launched
Slide 30: Hong Kong
Hong Kong Store Numbers: 15 Operating Model: Wholly owned Development: 20 stores by 2015/16
Slide 31: Greater Shanghai region
Greater Shanghai region Store Numbers: 14 Operating Model: Wholly owned Development: 15 – 20 stores by 2015/16 and continue evaluation
Slide 32: China: Growing the business
China: Growing the business Open stores in prime locations Continue to negotiate hard on rent deals Leverage e-commerce for brand building and to reach customers outside of Shanghai Explore potential partnerships/franchising 33
Slide 33: India
India Store Numbers: 30 Operating Model: Joint venture Development: 80 stores by 2015/16
Slide 34: India development
India development Plan to open 50 stores in the next 3 years Expand into attractive secondary cities 35
Slide 35: Summary
Summary Stronger organisational capability Growth in focus markets, with attractive opportunity Choose the right business model for each market Multi-channel approach to market expansion 36
Slide 36: Part 3: Delivering for our customers
PART 3: Delivering for our customers Steve Finlan Director of International Operations 37
Slide 37: Delivering for our customers
Delivering for our customers Buying the right product and getting it to market Leveraging sales and costs Aspirational stores with great in store presentation 38
Slide 38: Buying the right product
Buying the right product Balance central planning and local knowledge Seasonality Customer profile and culture Editing catalogue to segmentation model 39
Slide 39: Buying the right product
Buying the right product Continue to develop our expertise and buying disciplines Sales and stock Space exploitation Assortment planning “Live Buying” Pricing and trading 40
Slide 40: Getting product to market
Getting product to market Good progress but opportunity: Increase central planning and just in time merchandising Improve flow of goods for franchise partners Improve speed and cost of chain 41
Slide 41: Efficient stores
Efficient stores Improving sales and leveraging costs by: Effective management of payroll Efficient store operations Developing capability 42
Slide 42: Shopping experience
Shopping experience Creating an aspirational and consistent store environment focussed on: Customer and store segmentation Implementation of Concept 11 Exercising control over in store presentation Developing capability 43
Slide 43: Delivering for our customers
Delivering for our customers 44
Slide 44: International Update - Istanbul 2013
INTERNATIONAL UPDATE - ISTANBUL 2013 45
Marks and Spencer Group — Investor Presentation (February 2013) on 6ix