Premier Investments Limited · ASX:PMV
Premier Investments — FY2012 Earnings Presentation
31 slides from Premier Investments's earnings presentation, Sep 21, 2012
Slide 1: Premier Investments Limited FY12 Results Overview
Premier Investments Limited Results FY12 Results Overview 21 September 2012
Slide 2: Agenda
Agenda 1 Premier Investments FY12 Overview 2 Premier Investments FY12 Consolidated Financial Results 3 Just Group Results FY12 Overview 4 Industry Structure Pressures and Key Mitigation Strategies 5 Premier Investing in Growth 6 CODB Reductions to continue 7 Gross Margin 8 Asia Expansion Opportunity
Slide 3: Financial results
1 Financial results • Group Profit – Profit before tax of $92.8 million up 27% on pcp (underlying basis) – Profit after tax of $68.2 million up 32% on pcp (underlying basis) and 68% up on a reported basis • Premier Retail (The Just Group) contribution to Premier performance – FY12 underlying EBIT of
Slide 4: Premier—Consolidated Income Statement
2 Premier—Consolidated Income Statement 52 weeks 52 weeks to 28 July 2012 to 30 July 2011 $m’s Premier revenues (ex The Just Group) 27.2 21.6 Premier expenses (ex The Just Group) (4.6) (3.9) Premier Retail (The Just Group) underlying EBIT 80.4 65.3 Finance costs (10.2) (9.7) Underlying profit before
Slide 5: Premier—Summarised Consolidated Balance Sheet
2 Premier—Summarised Consolidated Balance Sheet $m’s 28 July 2012 30 Jul 2011 Assets Cash and cash equivalents 294.2 307.8 Inventories 71.1 73.4 Plant and equipment 80.3 84.8 Other assets 47.1 37.0 Available-for-sale financial assets 152.4 104.5 Intangible assets 854.5 854.5 Total assets 1,499.6 1,4
Slide 6: Just Group results FY12 overview
3 Just Group results FY12 overview • EBIT on track at $80.4 million • EBIT margin up 216bps to 9.7%* • 2H FY12 EBIT up 130%** • Strong cost out performance – costs reduced by 156bps* • Gross margin up by 99bps* • Clean inventory – setting a strong platform for FY13 • Exceptional internet sales growt
Slide 7: Just Group financial results
3 Just Group financial results 52 weeks 52 Weeks $000’s to 28 July 2012 to 30 July 2011 Var LY Sales* 829,138 866,045 -4.3% LFL sales -6.7% -2.8% Gross Profit* 507,080 521,102 Gross margin (%)* 61.2% 60.2% +99bps Salaries (196,870) (204,630) -3.8% % sales 23.7% 23.6% +12bps Rent (176,949) (177,529)
Slide 8: Industry structure pressures to continue and key mitigation strategies accelerated
4 Industry structure pressures to continue and key mitigation strategies accelerated Industry structure pressures to continue Key mitigation strategies accelerated • Continue to close loss making stores-25 stores closed in FY12 Rent increases not in line with • Negotiation about brand and centre per
Slide 9: Premier Retail investing in growth
5 Premier Retail investing in growth Internet • 67% growth in internet sales in FY12 • All brands, all SKU’s on-line • Material investment to continue–aspiration for 10% of sales • New Dotti internationally competitive website launched end of Q3 featuring ‒ Mobile, Search, Social, Next day delivery
Slide 10: Dotti.com.au
6 Dotti.com.au SHOp DOTTI.COM.AU Just Jeans JACQUI-E portmans _peteralexander dotti Snnigssie, THE JUST GROUP 9
Slide 11: Premier Retail investing in growth
5 Premier Retail investing in growth Smiggle Australia & New Zealand • Store roll out strategy accelerated • 20 stores opened during FY12 • 16 stores confirmed to open prior to Christmas 2012 • All new stores exceeding sales expectations • Further 15-20 new stores to open each year over the next 3 y
Slide 12: Premier Retail investing in growth
5 Premier Retail investing in growth Targeted Store Re-Investment • 49 Dotti stores upgraded in FY12 – improved lighting – new fixtures with increased stock holding and visual merchandising flexibility – low capital investment per store • Portmans Chadstone upgraded • New tables and fixtures in 63 P
Slide 13: CODB reductions to continue
6 CODB reductions to continue • Cost reduction programs delivered $27.8m* savings in FY12 • Cost of doing business decreased by 156bps in FY12, despite lower sales • Material benefits to continue in FY13/FY14 from FY12/FY13 initiatives • Store labour efficiency initiatives continue to focus on align
Slide 14: 5 year cost history
6 5 year cost history Store rental growth (1) Store wages growth (2) Other CODB growth (3) • Established brands’ rent • Store wages decreased by • Other CODB decreased decreased by 2.7%, with 4.2% in FY12 by 21.7% in FY12 improved renewal • Established brands’ store • Discretionary cost outcomes and
Slide 15: Gross margin
7 Gross margin • Gross margin expansion of 99bps in FY12 • Further gross margin expansion to continue in FY13 / FY14 from – Markdown management–aligning purchases to sales – DFO profitability project–engineered product – Improved sourcing through negotiations with existing vendors ‒ Sourcing from ne
Slide 16: Asia expansion opportunity: Smiggle Singapore
8 Asia expansion opportunity Smiggle Singapore Exceptional performance Store Date opened Plaza Singapura 21 April 2011 Lot One 14 May 2012 10 stores opened in FY12 Bugis Junction 30 July 2011 Somerset 8 October 2011 Parkway Parade 26 November 2011 13 stores now trading United Square 13 December 2011
Slide 17: Asia expansion opportunity: Smiggle Asia
8 Asia expansion opportunity Smiggle Asia – represents an exciting growth path for our company Competitive analysis • Despite a widely held perception that these countries are more competitive in this category, detailed studies conclude that the competitive framework is no more or less competitive t
Slide 18: Asia expansion opportunity: Smiggle Malaysia
8 Asia expansion opportunity Smiggle Malaysia Malaysia opportunity Country profile • Malaysia represents an exciting • 25 to 35 stores over next 3–5 years opportunity for Smiggle in a strong and • First store mid to late calendar 2013 growing economy with a large number of target customers. Given th
Slide 19: Asia expansion opportunity: Smiggle Japan
8 Asia expansion opportunity Smiggle Japan Country profile Japan opportunity • Japan is a large wealthy economy. Whilst national economic growth is minimal, there is • Up to 200 stores over 7-10 years a substantial population of target customers • 15-30 stores over the next 3 years and well establis
Slide 20: Asia expansion opportunity: Peter Alexander Singapore
8 Asia expansion opportunity Peter Alexander Singapore Internet launched to Singapore in May 2012 – peteralexander.com.sg Establishing brand profile and positioning Evaluating opportunity for first flagship store to open in calendar 2013 19
Slide 21: The path to growth is clear
9 The path to growth is clear Summary • Continued focus on improving sales and margin from core brands – Appointment of Colette Garnsey as Core Brand Director • Cost efficiency program to continue into FY13 and FY14 • Gross margin benefits continue into FY13 and FY14 • Internet strategy accelerated
Slide 22: Trading update
10 Trading update • New season has started well. Total sales and LFL sales both up on last year • The company is well positioned and focused on delivering the key strategic initiatives to continue to improve profitability and returns for shareholders • Whilst we have seen a recent positive change in
Slide 23: Brand by Brand Performance
Brand by Brand Performance 22
Slide 24: Peter Alexander
11 Peter Alexander Overview of Results Sales $85.6m Var LY +17.1% Store movements Beg Open Close End Australia 32 8 0 40 New Zealand 7 1 0 8 39 9 0 48 Highlights • Outstanding performance from Peter Alexander in FY12 • 9 new stores opened in Australia/NZ in FY12 • Online sales growth well ahead of e
Slide 25: Smiggle
11 Smiggle Overview of Results Sales $78.3m Var LY +14.4% Store movements Beg Open Close End Australia 79 19 0 98 New Zealand 21 1 0 22 Singapore 2 10 0 12 102 30 0 132 Highlights • Strong results from Australia and New Zealand • 20 stores opened across Aus/NZ • Singapore performance exceptional • 1
Slide 26: Dotti
11 Dotti Overview of Results Sales $101.0m Var LY -3.4% Store movements Beg Open Close End Australia 95 0 2 93 New Zealand 21 0 0 21 116 0 2 114 Highlights • Outstanding success from Dotti.com.au. • New internationally competitive website launched • Winter sales result very strong +5.2% v LY • Sales
Slide 27: Portmans
11 Portmans Overview of Results Sales $105.3m Var LY -5.6% Store movements Beg Open Close End Australia 99 0 6 93 New Zealand 12 0 0 12 111 0 6 105 Highlights • Brand returned to profitability in FY12 • Sales rebounded in Q4 FY12 • New season started very strongly with positive LFL sales growth and
Slide 28: Just Jeans
11 Just Jeans Overview of Results Sales $203.0m Var LY -4.0% Store movements Beg Open Close End Australia* 205 0 2 203 New Zealand 46 0 1 45 251 0 3 248 * Includes one group store Highlights • Solid sales result in a difficult market with soft Q3, improving Q4 and positive growth in the first 7 week
Slide 29: Jacqui E
11 Jacqui E Overview of Results Sales $67.9m Var LY -16.3% Store movements Beg Open Close End Australia 87 1 5 83 New Zealand 21 0 0 21 108 1 5 104 Highlights • Significantly improved trading rate in the first 7 weeks of FY13 • Product and brand transformation continuing • New Ambassador, Tara Moss
Slide 30: Jay Jays
11 Jay Jays Overview of Results Sales $188.1m Var LY -12.9% Store movements Beg Open Close End Australia 201 1 8 194 New Zealand 37 0 1 36 238 1 9 230 Highlights • First 7 weeks of FY13 show improving sales trend vs FY12 • Product and brand transformation progressing • Leadership position in the mar
Slide 31: Final dividend
12 Final dividend • The Premier Board has declared a final fully franked dividend of 18 cps – in line with prior year • FY12 fully franked dividends of 36 cps – in line with last year • This represents a payout of 82% of earnings, above the minimum of our policy • Premier Board made the dividend dec