Myer Holdings Limited · ASX:MYR
Myer — H1 2022 Earnings Presentation
28 slides from Myer's earnings presentation, Mar 10, 2022
Slide 1: Half Year 2022 Results: Customer First Plan Momentum Continues
10 March 2022 For personal use only HALF YEAR 2022 RESULTS CUSTOMER FIRST PLAN MOMENTUM CONTINUES • STRONG TOTAL SALES1 GROWTH OF 8.5% • GROUP ONLINE2 SALES CONTINUE TO OUTPERFORM, INCREASING 47.5% • NPAT OF $32.3 MILLION, 55.2% HIGHER THAN PRIOR YEAR ADJUSTED3 FOR JOBKEEPER • NET CASH UP $16 MILLIO
Slide 2: Customer First Plan Update
Customer First Plan Update: For personal use only Sales growth despite lockdown headwinds • Strong total sales1 growth of 8.5% despite 23% of in-store trading days5 in lockdown • Sales in the lead up to Christmas, when not affected by lockdowns, delivered 17.1% growth for the two months ended 1 Janu
Slide 3: Investor and Analyst Briefing
Investor and Analyst briefing For personal use only 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
Slide 4: Myer Holdings Ltd Half Year 2022 Results
MYER HOLDINGS LTD HALF YEAR For personal use only 2022 RESULTS TO 29 JANUARY 2022 JOHN KING NIGEL CHADWICK Chief Executive Officer Chief Financial Officer
Slide 5: Important Information
IMPORTANT INFORMATION The information in this document is general only and does not purport to be results or performance to differ materially from those expressed or implied in For personal use only complete. It should be read in conjunction with Myer’s other periodic and this document. As such, und
Slide 6: Agenda
For personal use only AGENDA 1H22 HIGHLIGHTS 1H22 RESULTS CUSTOMER FIRST PLAN CONCLUSION APPENDICES 3
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS For personal use only ST R O N G O N L IN E IMP R O V ED ST R O N GER DIV IDEN D SA L ES G R O W T H O U T P ER F OR MIN G N PAT 4 B A L ANCE SH EET R EIN STATED 8.5% 47.5% $32.3m $217m 1.5c H I G H L I G H T S net cash per share Total sales1 Group online3 sales NPAT up 55.2% in
Slide 8: Strategy Delivering Strong Sales Growth
STRATEGY DELIVERING STRONG SALES GROWTH 1 H 2 2 C O M PA R A B L E S A L E S 3 For personal use only 48.4% ST R O N G Stores not affected by closures SA L ES G R O W T H demonstrated strong growth 17.8% 17.9% 10.9% 1.6% • 17.8% comparable sales3 growth Comparable Comparable Myer Online Other Myer My
Slide 9: Strong Online Sales Growth Outperforming Peers
STRONG ONLINE SALES GROWTH OUTPERFORMING PEERS For personal use only AUG- JAN JUL- DEC KEY METRICS M Y E R O N L I N E 3 S A L E S % G R O W T H : J U LY T O D E C E M B E R 2 0 2 1 2 (6 MONTHS) (26 WEEKS)2 Group online1 sales 47.5% 58.3% 27.9% 28.7% Group Online Penetration (from 20.6%) (from 20.2%
Slide 10: Customer First Plan Is Unlocking Value in the Myer Business
CUSTOMER FIRST PLAN IS UNLOCKING VALUE IN THE MYER BUSINESS For personal use only GROUP ONLINE1 SALES 9 %3.5 G Rmillion O W T H I MYER N M Y E Rone o n emembers ACTIVE STRONG BALANCE SHEET TO FOURFOLD INCREASE SINCE 1H18 MEMBERS OVER TWO YEARS EXECUTE THE CUSTOMER FIRST PLAN shopped in last 12 month
Slide 11: Agenda
For personal use only AGENDA 1H22 HIGHLIGHTS 1H22 RESULTS CUSTOMER FIRST PLAN CONCLUSION APPENDICES 8
Slide 12: NPAT Increased 55.2% Over Adjusted 1H21
N PAT I N C R E A S E D 5 5 . 2 % O V E R A D J U S T E D 1 1 H 2 1 1H21 For personal use only $ MILLIONS 1H22 CHANGE 1H21 ADJUSTED1 Total Sales2 1,517.4 1,398.0 8.5% 1,398.0 Operating Gross Profit 582.2 539.8 7.8% 539.8 Cost of Doing Business3 (375.4) (356.8) 5.2% (325.2) EBITDA3 206.8 183.0 13.0%
Slide 13: Operating Gross Profit
O P E R AT I N G G R O S S P R O F I T For personal use only O P E R AT I N G G R O S S P R O F I T ( $ M ) (5) 582 (1) (1) 49 540 R E S U L T S OGP 1H21 Volume Rate Other COGS Mix OGP 1H22 OGP margin OGP margin 38.61% 38.37% 1 H 2 2 OGP margin decreased by 24bps reflecting: Rate impacts Clear
Slide 14: Cost of Doing Business
COST OF DOING BUSINESS For personal use only MYER GROUP COST STRUCTURE ($M) COST OF DOING BUSINESS ($M) +4.3% +5.2% 1 375 4 357 325 (as reported) (11) 161 156 (7) 375 23 372 3 R E S U L T S 94 90 1 7 357 1 H 2 2 111 121 1H21 1H22 CODB 1H21 Inflation Online Online Impact of Space Store Cost CODB 1H22
Slide 15: Operating Cash Flow
O P E R AT I N G C A S H F L O W For personal use only $ MILLIONS 1H22 1H21 Operating cash flow (before interest & tax) decreased by $74 million to EBITDA1 206.8 214.6 $252 million Add implementation costs and ISIs - 0.2 1H21 included $58 million net Jobkeeper receipts with portion Add non-cash
Slide 16: Balance Sheet
BALANCE SHEET For personal use only $ MILLIONS 1H22 FY21 1H21 Net cash increase is a robust outcome considering COVID-19 challenges Inventory 383.2 305.2 265.8 Inventory increase a combination of Creditors (499.8) (353.3) (454.3) Abnormally low level of inventory in prior year Other Assets & L
Slide 17: Strong Liquidity Position Supports Execution of the Customer First Plan
S T R O N G L I Q U I D I T Y P O S I T I O N S U P P O RT S E X E C U T I O N O F T H E C U S TO M E R F I R S T P L A N For personal use only NET CASH / (DEBT) $M – 1H18 TO 1H22 Despite COVID-19 challenges, 1H22 represented a disciplined cash flow performance +$237m Remained in a net cash posi
Slide 18: Agenda
For personal use only AGENDA 1H22 HIGHLIGHTS 1H22 RESULTS CUSTOMER FIRST PLAN CONCLUSION APPENDICES 15
Slide 19: Customer First Plan Progress Means Myer Is Well Placed
C U S TO M E R F I R S T P L A N P R O G R E S S M E A N S M Y E R I S W E L L P L A C E D TO D R I V E S I G N I F I C A N T VA L U E C R E AT I O N F O R A L L S H A R E H O L D E R S For personal use only THE CUSTOMER FIRST PLAN MOMENTUM WILL UNDERPIN CUSTOMER FIRST PLAN PROVIDES A STRONG THE FUT
Slide 20: Unlocking the Value of Online: Scale & Experience
1 . U N L O C K I N G T H E VA L U E O F O N L I N E : S C A L E & E X P E R I E N C E For personal use only Significantly Scaled Online GROUP ONLINE1 SALES Sales growth out-performing peers; well on the way to our aspiration of $1 billion in annual sales in the +278.6% near term Click & Collect
Slide 21: The MYER one Program Is a Key Feature of Our Business
2. THE MYER one PROGRAM IS A KEY FEATURE OF OUR BUSINESS For personal use only MYER one IS A BUILDING COMMERCIAL OPPORTUNITIES M Y E R o n e I S G R O W I N G R A P I D LY 3.5 V A Lmillion U A B L E DMYER I F F E R Eone members N T I AT OR I N T E R N A L LY A N D E X T E R N A L LY shopped in last
Slide 22: Focused Delivery of the Customer First Plan: Space & Productivity
3 . F O C U S E D D E L I V E RY O F T H E C U S TO M E R F I R S T P L A N For personal use only S PA C E & P R O D U C T I V I T Y Space Reduction G L A S PA C E R E D U C T I O N ( S Q M i n 0 0 0 ’ S ) 104,032m2 (9.7%) of space reduction exited or announced since 1H18; including the closure of
Slide 23: Agenda
For personal use only AGENDA 1H22 HIGHLIGHTS 1H22 RESULTS CUSTOMER FIRST PLAN CONCLUSION APPENDICES 20
Slide 24: Current Trade Update
C U R R E N T T R A D E U P D AT E For personal use only Trading since the Omicron impact has rebounded returning to growth across our store network and online First five weeks of 2H22 has delivered sales1 growth of 15.2% Online has continued momentum up 48.6% Stores returned to stable growt
Slide 25: Conclusion
CONCLUSION For personal use only 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 in 1H22 resilience and strength of our business Delivered strong sales
Slide 26: Agenda
For personal use only AGENDA 1H22 HIGHLIGHTS 1H22 RESULTS CUSTOMER FIRST PLAN CONCLUSION APPENDICES 23
Slide 27: Appendix: Income Statement – Post AASB 16
A P P E N D I X 1 : I N C O M E S TAT E M E N T – P O S T A A S B 1 6 For personal use only $ MILLIONS 1H22 1H21 CHANGE Total Sales1 1,517.4 1,398.0 8.5% Operating Gross Profit 582.2 539.8 7.8% Cost of Doing Business2 (375.4) (325.2) 15.4% EBITDA2 206.8 214.6 (3.7%) A P P E N D I C E S Depreciation2
Slide 28: Appendix: Income Statement – AASB 16 Impact
A P P E N D I X 2 : I N C O M E S TAT E M E N T – A A S B 1 6 I M PA C T 1H22 AASB 16 1H22 1H21 CHANGE For personal use only $ MILLIONS (STATUTORY) IMPACT (PRE-AASB 16) (PRE-AASB 16) (PRE-AASB 16) Total Sales1 1,517.4 - 1,517.4 1,398.0 8.5% Operating Gross Profit 582.2 (0.3) 581.9 539.9 7.8% Cost of