Myer Holdings Limited · ASX:MYR

Myer — FY2022 Earnings Presentation

35 slides from Myer's earnings presentation, Sep 15, 2022

  1. Slide 1: Full Year 2022 Results

    15 September 2022 FULL YEAR 2022 RESULTS HIGHEST 2H NPAT1 IN NEARLY A DECADE (2H13) • STRONG TOTAL SALES2 GROWTH OF 12.5%, GROUP ONLINE3 SALES INCREASED 34.0% • NPAT1 OF $60.2 MILLION, 103.8% HIGHER THAN PRIOR YEAR ADJUSTED4 FOR JOBKEEPER • STATUTORY NPAT $49.0m, 5.7% HIGHER THAN PRIOR YEAR • NET CA

  2. Slide 2: Customer First Plan Update

    CUSTOMER FIRST PLAN UPDATE Omni-channel offer is generating strong profitable growth opportunities and gaining momentum • Strong total sales2 growth of 12.5% despite 11.4% of in-store trading days6 in lockdown, Comparable Sales growth of 15.0% underpinned by strong sales performance in both online a

  3. Slide 3: Investor and Analyst briefing

    Investor and Analyst briefing Myer’s CEO and Managing Director John King and CFO Nigel Chadwick will host a teleconference for investors and analysts today at 9.30am (Melbourne time). Participants can register for the conference by clicking here. Attendees will need to have the attached slides avail

  4. Slide 4: Full Year 2022 Results to July 2022

    MYER HOLDINGS LTD FULL YEAR 2022 RESULTS TO 30 JULY 2022 JOHN KING NIGEL CHADWICK Chief Executive Officer Chief Financial Officer

  5. Slide 5: Important Information

    Important Information The information in this document is Investors and potential investors should make their own Subject to law, Myer assumes no obligation to update, assessment and take independent professional advice review or revise any information contained in this general only and does not pur

  6. Slide 6: Agenda

    Agenda FY22 Highlights FY22 Financial Results Customer First Plan Conclusion Appendices MYER HOLDINGS LTD

  7. Slide 7: Financial Highlights

    Financial Highlights S TR O N G O N L IN E S I G N I F I C A N T LY S TR O N G E R F I N A L D IV I D E N D S A LE S G R O W TH O U TP E R F O R M IN G IM P R O VE D N P AT4 BALANC E S HE E T DE C LAR E D FY22 HIGHLIGHTS 12.5% 34.0% $60.2m $186m 2.5c net cash per share Total sales1 Group online3 sal

  8. Slide 8: Continued sales growth across In-store and Online

    Continued sales growth across In-store and Online with 2H outpacing pre-COVID levels as momentum continues FY 22 C O M PA R AB LE S A LE S 1 2H S A LE S G R O W TH +3.7% CAGR +20.3% FY22 HIGHLIGHTS In-store 8.9% 38.1% 1,472 1,320 1,224 15.0% 15.2% 912 10.3% 4.2% Comparable Comparable Myer Online Oth

  9. Slide 9: Online sales growth continues to outperform peers

    Online sales growth continues to outperform peers G R O U P O N LIN E 1 S A L E S O U TP E R F O R M IN G M Y E R O N L IN E 2 S A L E S G R O W TH D R IVE N B Y TH E M A R K E T K E Y C A T E G O R I E S (5 2 W E E K C O M P A R I S O N 3) Group Online Sales Austalian non-food retail trade online (

  10. Slide 10: We are driving our key online performance metrics

    We are driving our key online performance metrics G R O U P O N L IN E 1 S A L E S G R O W TH ($m)  Significantly improved user 723 experience through new website +36.4% CAGR / checkout / mobile interface FY22 HIGHLIGHTS 540 423  Investment in fulfilment 262 capability including more efficient 209

  11. Slide 11: Omni-channel strategy drives valuable outcomes

    Omni-channel strategy drives valuable outcomes through higher customer value and lower fulfilment costs 3.5 million MYER one members shopped in last 12 months S P E ND PE R CUS TOM E R S HOP FR E QUE NC Y FULFILM E NT CHANNE L  Myer omni-channel customers spend at  Myer omni-channel customers shop

  12. Slide 12: Growth is underpinned by an accelerating MYER one program

    Growth is underpinned by an accelerating MYER one program 6.6m  The program is one of Australia’s largest retail loyalty programs 593k  Acquisition has been aggressively Digitally contactable building, particularly against the New Members members (+13.5% YoY) 20-35 demographic (+29.9% YoY) FY22 HI

  13. Slide 13: Profitable sales growth has led to the best 2nd half NPAT

    Profitable sales growth has led to the best 2 nd half NPAT 1 result since 2H13 and a return to distributions N PAT1 $M D P S $c +219% 39 30 28 FY22 HIGHLIGHTS 18 15 10 5 8 9 -8 -8 5.0 5.0 4.0 -53 -53 pre AASB 16 post AASB 16 2H13 2H14 2H15 2H16 2H17 2H18 2H19 2H20 2H21 2H22 FY16 FY17 FY18 FY19 FY20

  14. Slide 14: Myer has emerged from the pandemic stronger

    Myer has emerged from the pandemic stronger on all key metrics, underpinned by our Customer First Plan G R O U P O N L IN E 1 S A L E S ($M ); FLO O R S PAC E % O F C LE A R A N C E INVE N TO R Y 2 P E N E T R AT IO N (%) (G L A ‘000s s qm) O F TO TA L Agreed 24% -9.9% Reduction -860bps FY22 HIGHLIG

  15. Slide 15: Agenda

    Agenda FY22 Highlights FY22 Financial Results Customer First Plan Conclusion Appendices MYER HOLDINGS LTD

  16. Slide 16: NPAT increased 103.8% over adjusted FY21

    NPAT 1 increased 103.8% over adjusted 2 FY21 FY 21 $ M IL LIO N S FY 22 CHANGE FY 21 D E PA R TM E N T S TO R E S AD JU S TE D 2 Total Sales3 2,989.8 2,658.3 12.5% 2,658.3 Operating Gross Profit 1,145.2 1,055.7 8.5% 1,055.7 22.4% FY22 FINANCIAL RESULTS $658m Cost of Doing Business1 (745.2) (697.3) 6

  17. Slide 17: Operating Gross Profit

    Operating Gross Profit O P E R ATIN G G R O S S P R O F IT ($M ) (30) (17) 1,145 (1) 138 FY22 FINANCIAL RESULTS 1,056 OGP FY21 Volume Rate Other COGS Mix OGP FY22 OGP margin OGP margin 39.7% 38.3%  OGP margin decreased by 141bps reflecting:  Rate impacts – Clearance of seasonal inventory built up

  18. Slide 18: Cost of Doing Business

    Cost of Doing Business M Y E R G R O U P C O S T S TR U C TU R E ($M ) C O S T O F D O IN G B U S IN E S S ($M ) +6.9% 745 697 1 666 (as reported) FY22 FINANCIAL RESULTS 7 2 (14) 3 745 318 304 35 195 184 15 697 209 232 FY21 FY22 CODB FY21 1 Inflation Online Volume Store COVID Other Impact of Space C

  19. Slide 19: Operating Cash Flow

    Operating Cash Flow $ M IL LIO N S FY 22 FY 21  Operating cash flow (before interest & tax) increased by $22 million to $387 EBITDA1 400.0 390.0 million Add implementation costs and ISIs (13.2) (7.6) – FY21 included $58 million net JobKeeper receipts with portion accrued from FY20 FY22 FINANCIAL RE

  20. Slide 20: Balance Sheet

    Balance Sheet $ M ILLIO N S F Y 22 F Y 21  Net cash increase despite COVID-19 challenges in 1H22 Inventory 371.4 305.2  Inventory increase a combination of Creditors (429.3) (353.3) – Abnormally low level of inventory in prior year FY22 FINANCIAL RESULTS Other Assets & Liabilities 50.5 51.7 – Brin

  21. Slide 21: Strong liquidity position supports execution of the Customer First Plan

    Strong liquidity position supports execution of the Customer First Plan N E T C A S H / (D E B T) $M – F Y 18 TO F Y 2 2 +$293m  Remained in a net cash position for the majority of FY22  ABL (Asset Based Loan) announced Nov-21, provides an appropriate FY22 FINANCIAL RESULTS 186 structure for peak

  22. Slide 22: Agenda

    Agenda FY22 Highlights FY22 Financial Results Customer First Plan Conclusion Appendices MYER HOLDINGS LTD

  23. Slide 23: Customer First Plan progress means Myer is well placed

    Customer First Plan progress means Myer is well placed to drive significant value creation for all shareholders A C C E L E R AT E FA C TO R Y TO IN-STORE RE-FOCUS R AT I O N A L I S E P R O P E R T Y ONLINE CUSTOMER EXPERIENCE MERCHANDISE / OVERHEADS  Built a high growth, large  National Distribu

  24. Slide 24: Focus – National Distribution Centre (NDC)

    Focus – National Distribution Centre (NDC)  Backbone of our Factory 2 Customer Operations and leveraging state of the art technology  Benefits for Stores - driving better inventory management leading to higher sales, lower discounting and therefore improved margins  Benefits to Online - more effi

  25. Slide 25: Focus – maximising growth through new and expanded partnerships

    Focus – maximising growth through new and expanded partnerships E X PA N S I O N O F P O I N T S N E W PA R T N E R A D D E D T O P L U S PAY T O O N L I N E P O I N T S P L U S PAY P R O G R A M  New Source of customer growth, acquisition and revenue streams for both in-store CUSTOMER FIRST PLAN a

  26. Slide 26: Focus – the destination for growing brands

    Focus – the destination for growing brands D E PA R T M E N T S T O R E S C AT E G O R Y M I X 20.5% 18.5% $601m $544m Making our big brands bigger CUSTOMER FIRST PLAN Menswear Womenswear  Category growth, inventory health, newness Childrenswear 22.4% Home & Entertainment  Cementing strong, strate

  27. Slide 27: Focus – Using strong balance sheet to invest

    Focus – Using strong balance sheet to invest B i g g e s t s t o r e te c h n o l o g y t r a n s f o r m a t i o n i n r e c e n t y e a r s  Myer Movement into 52 stores  New Point of Sale hardware and  Space productivity optimisation at 17 software rolling out across FY23; stores delivering an

  28. Slide 28: Agenda

    Agenda FY22 Highlights FY22 Financial Results Customer First Plan Conclusion Appendices MYER HOLDINGS LTD

  29. Slide 29: Current Trade Update

    Current Trade Update  Trading in FY23 continues to build on the momentum seen in 2H22 across our store network  First six weeks of 1H23 has delivered sales1 growth of 74.8% on the prior year  Highest sales dollars for the six week period since 2006 CONCLUSION 1 st S I X W E E K S S A L E S 1 G R

  30. Slide 30: Conclusion

    Conclusion  Our Customer First Plan has been, and  The ability to reinstate dividend is a direct continues to be, the right Plan and has result of the momentum of this Plan and the underpinned our growth and momentum in resilience and strength of our business FY22  Delivered strong sales growth u

  31. Slide 31: Agenda

    Agenda FY22 Highlights FY22 Financial Results Customer First Plan Conclusion Appendices MYER HOLDINGS LTD

  32. Slide 32: Appendix 1: Income Statement – post AASB 16

    Appendix 1: Income Statement – post AASB 16 $ M ILLIO N S F Y 22 F Y 21 CHANGE Total Sales1 2,989.8 2,658.3 12.5% Operating Gross Profit 1,145.2 1,055.7 8.5% Cost of Doing Business2 (745.2) (665.7) 11.9% APPENDICES EBITDA2 400.0 390.0 2.6% Depreciation2 (215.8) (219.5) (1.7%) EBIT2 184.2 170.5 8.0%

  33. Slide 33: Appendix 2: NPAT reconciliation to Statutory Accounts

    Appendix 2: NPAT reconciliation to Statutory Accounts $ M ILLIO N S E B IT IN TE R E S T TA X NP AT Statutory reported result 171.0 (98.9) (23.1) 49.0 Add back: Implementation costs and individually significant items Space exit costs/(reversals) and other asset impairments/(reversals) 13.2 - (2.0) 1

  34. Slide 34: Appendix 3: Income Statement – AASB 16 impact

    Appendix 3: Income Statement – AASB 16 impact F Y 22 A A S B 16 F Y 22 F Y 21 CHANGE $ M ILLIO N S (S TA TU TO R Y ) IM P A C T (P R E -AA S B 16) (P R E -AA S B 16) (P R E -AA S B 16) Total Sales1 2,989.8 - 2,989.8 2,658.3 12.5% Operating Gross Profit 1,145.2 (0.3) 1,144.9 1,055.8 8.4% Cost of Doin

  35. Slide 35: Appendix 4: Income Statement – 52 week comparison

    Appendix 4: Income Statement – 52 week comparison F Y 22 F Y 21 CHANGE F Y 21 CHANGE $ M ILLIO N S (52 weeks ) (53 weeks ) (52 weeks ) Total Sales1 2,989.8 2,658.3 12.5% 2,622.1 14.0% Operating Gross Profit 1,145.2 1,055.7 8.5% 1,041.8 9.9% APPENDICES Cost of Doing Business2 (745.2) (665.7) 11.9% (6

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