Myer Holdings Limited · ASX:MYR
Myer — H1 2015 Earnings Presentation
17 slides from Myer's earnings presentation, Feb 11, 2016
Slide 1: Myer First Half 2015 Results and Full Year 2015 Guidance
ASX & MEDIA RELEASE For immediate release Thursday 19 March 2015 Myer First Half 2015 Results and Full Year 2015 Guidance Myer Holdings Limited (MYR) today announced results for the 26 weeks to 24 January 2015. First Half Overview • 1H FY2015 total sales up 1.5% to $1,763 million, up 0.9% on a compa
Slide 2: 1H FY2015 Financial Performance
Myer is pleased to have welcomed a number of new Australian and international brands since the start of the second half including: Maison Scotch, Skin and Threads, and Asilio in Womenswear; Jo Malone in Cosmetics; Scotch & Soda, and Pierre Balmain in Menswear; and Calvin Klein in handbags. A propose
Slide 3: Balance sheet, dividend, outlook and strategic review
Balance sheet and dividend Net debt increased by 13.7 percent to $261 million. Cash generation remains strong and the Company remains confident in its balance sheet position. The Board has determined an interim dividend of 7 cents per share (1H FY2014: 9 cents per share). OUTLOOK While ahead of last
Slide 4: Strategy enablers and customer research
“An extensive customer research project using internal and external data sources has delivered a detailed analysis of the current and future Myer customer, and the merchandise and services they want to enrich their lifestyle,” he said. The enablers of the new strategy include: • Customer driven deci
Slide 5: Table 1: Profit & Loss Statement for the 26 weeks to 24 January 2015
Table 1: Profit & Loss Statement for the 26 weeks to 24 January 2015 1H 2015 1H 2014 Change vs. LY $m $m Total Sales Value 1,763.4 1,737.1 +1.5% Concessions 265.1 264.3 +0.3% Myer Exclusive Brands 364.9 350.8 +4.0% Other 1,133.4 1,122.0 +1.0% Operating Gross Profit1 714.9 708.4 +0.9% Operating Gross
Slide 6: Balance Sheet, Financial Ratios, Shares and Dividends
Table 2: Balance Sheet as at 24 January 2015 January 2015 January 2014 $m $m Inventory 375 351 Other Assets 64 57 Less Creditors (474) (466) Less Other Liabilities (202) (199) Net Trading Investment (237) (257) Property 25 25 Fixed Assets 476 471 Tangible Funds Employed 264 239 Intangibles 933 929 T
Slide 7: Myer Half Year Results 2015
MYER Half Year Results 2015 2015 HALF Y E A R R E S U LT S Thursday 19 March 2015 RICHARD UMBERS CEO and Managing Director MARK ASHBY Chief Financial Officer 2015 HALF Y E A R R E S U LT S Welcome Financial update Outlook Looking forward RICHARD UMBERS CEO and Managing Director 2 19 March 2015 1
Slide 8: 1H FY2015 Financial Overview
MYER Half Year Results 2015 2015 HALF Y E A R R E S U LT S Welcome Financial update Outlook Looking forward MARK ASHBY Chief Financial Officer 3 1H FY2015 FINANCIAL OVERVIEW • Sales growth disappointing given completed initiatives – 1H sales up 1.5% to $1,763 million (comparable store sales up 0.9%)
Slide 9: Operational Highlights and Sales Performance
MYER Half Year Results 2015 1H FY2015 OPERATIONAL HIGHLIGHTS • Strong execution of strategic initiatives pre Christmas – Two store openings, four major refurbishments launched – ‘Giftorium’ Christmas concept – Brand relaunch, ‘find wonderful’ • Strengthened omni-channel offering – Key metrics improv
Slide 10: Operating Gross Profit Margin and Cash Cost of Doing Business
MYER Half Year Results 2015 OPERATING GROSS PROFIT MARGIN* Margin-enhancing drivers 42.0 % Operating gross profit margin • Positive mix impact from MEBs sales growth 41.5 41.08 40.89 41.0 40.78 Offsetting factors 40.54 40.5 • Pricing pressure across merchandise portfolio 40.0 • Highly competitive en
Slide 11: Working Capital and Key Credit Metrics
MYER Half Year Results 2015 WORKING CAPITAL • Increased stock levels reflected: – Increase in stock held for new and refurbished stores • Aged inventory fell 4.7% • Inventory turns flat at 3.5 times • Creditor days improved to 73 days (1H FY2014: 70 days), partly due to timing “INVENTORY REMAINS WEL
Slide 12: FY2015 Outlook
MYER Half Year Results 2015 2015 HALF Y E A R R E S U LT S Welcome Financial update Outlook MARK ASHBY Chief Financial Officer Looking forward 11 FY2015 OUTLOOK • February and March sales below expectations • February operating gross profit margin result and March sales trend has led the Company to
Slide 13: Our Recent Journey – Repositioning the Business
MYER Half Year Results 2015 2015 HALF Y E A R R E S U LT S Welcome Financial update Outlook Looking forward RICHARD UMBERS CEO and Managing Director 13 OUR RECENT JOURNEY – REPOSITIONING THE BUSINESS Joondalup opened New customer sass & bide communications creative acquisition completed Brand relaun
Slide 14: Reinvigorating Our Offer and Extensive Customer Analysis
MYER Half Year Results 2015 REINVIGORATING OUR OFFER • Strategic review underway – To respond to changing customer behaviour and retail landscape • Target outcome is an operational model better leveraged to reward shareholders by – Delivering a sustainable earnings growth – Yielding strong returns a
Slide 15: Transforming the Business
MYER Half Year Results 2015 TRANSFORMING THE BUSINESS • Immediate focus on reversing the trend of 1H and recalibrating the business for growth • Enablers – Customer driven decision making – Merchandise assortment and in-store services – Data and digital – Asset and cost productivity Underpinned by s
Slide 16: Historical Sales Including Concessions
MYER Half Year Results 2015 HISTORICAL SALES INCLUDING CONCESSIONS 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Total sales 652.5 759.9 691.1 1,046.0 646.5 759.4 691.6 1,071.8 $m Total Sales +0.5% -0.8% +0.4% +0.2% -0.9% -0.1% +0.1% +2.5% growth LFL sales +0.4% -1.6% +0.4% +1.7% +0.2% +2.1% +0.7% +1.0% g
Slide 17: Disclaimer
MYER Half Year Results 2015 DISCLAIMER All numbers are unaudited. The financial information includes non-IFRS information which has not been specifically audited in accordance with Australian Accounting Standards but has been extracted from the Half-Year Financial Report (Appendix 4D). This release