Signet Jewelers Limited · NYSE:SIG
Signet Jewelers — Investor Day (October 2011)
65 slides from Signet Jewelers's investor day presentation, Oct 4, 2011
Slide 1: New York Investor Day
New York Investor Day Tuesday, October 4, 2011
Slide 2: Mike Barnes, Signet CEO
‘SIGNET ) JEW ELER S Mike Barnes Signet CEO Lo [Ries sh rae oe is ae
Slide 3: Forward Looking Statements
Forward Looking Statements F Forward-Looking d L ki Statements St t t - This Thi presentation t ti contains t i statements t t t which hi h are fforward-looking d l ki statements t t t within ithi th the meaning i of the Private Securities Litigation Reform Act of 1995. These statements, based upon
Slide 4: Program
Program Evolving specialty retail jewelry model UK Division - Rob Anderson US Division - Mark Light and d US executives ti Questions Lunch Travel to stores Store tours Return R t tto M Manhattan h tt 4
Slide 5: Why Invest in Signet
Why Invest in Signet Competitive strengths driving profitable market share Superior operating model & strong balance sheet Major initiatives & growth opportunities 5
Slide 6: Superior In-Store Experience
Superior p In In--Store Experience p Best-in-class customer service Aim to recruit best and brightest g Focus on training & development 6
Slide 7: People & Systems
People & Systems Experienced and well trained team Innovative systems “Test before we invest” 7
Slide 8: Established Competitive Strengths
Established Competitive Strengths 8
Slide 9: Power of Brands
Power of Brands y S IGNET PEwWeECER S
Slide 10: Creating Powerful Competitive Strengths
Creating Powerful Competitive Strengths Brand differentiation Digital marketing Virtual inventory y Customer Assisted Selling System 10
Slide 11: Responding to Consumer Needs
Responding to Consumer Needs Growing importance of brands Changing shopping h i patterns Digital environment 11
Slide 12: Management Approach
Management Approach Execute to trend Manage M expenses & assets Innovation Gain profitable share 12
Slide 13: Management Priorities
Management Priorities Build and maintain a strong b l balance sheet h t Re-invest in business Support new initiatives Shareholder returns 13
Slide 14: Rob Anderson
Rob Anderson Chi f E Chief Executive, ti UK Di Division i i 14
Slide 15: Summary
Summary Business overview UK growth th strategy t t differentiated store brands multi-channel initiatives focused execution Financial p performance 15
Slide 16: H.Samuel
H.Samuel No.1 jeweler in UK Targets mid market 11% of Signet’s sales 16
Slide 17: Ernest Jones
Ernest Jones No.2 jeweler in UK Targets upper mid market 9% of Signet’s sales 17
Slide 18: UK Retail Market Map
UK Retail Market Map (ex independents) (ex. £250 Goldsmiths Ernest Jones HIGH Beaverbrooks H Samuel Estimated Fraser Hart Average Transaction Value Warren Argos James LOW F. Hinds £0 FEW MANY RANGE OF PRODUCTS 18
Slide 19: Contrast Between US & UK
Contrast Between US & UK 7% Merchandise Mix 7% 8% 28% 10% 30% US UK Division Division 75% 12% 23% Diamonds Gold & silver Diamonds Gold & Silver Other jewelry Watches Other jewelry Watches Gifts & other 19
Slide 20: UK Growth Strategy
UK Growth Strategy gy Differentiated store brands retail formats merchandise marketing Multi-channel opportunities Focused F d execution ti 20
Slide 21: Store Brands Positioning: Store Environment
Store Brands Positioning Store Environment Updated store designs Better customer service Increased focus on brands 21
Slide 22: Store Brands Positioning: Branded Merchandise
Store Brands Positioning B d dM Branded Merchandise h di 22
Slide 23: Store Brands Positioning: Differentiated & Exclusive Brands
Store Brands Positioning Differentiated & Exclusive Brands 23
Slide 24: Store Brands Positioning: Marketing Initiatives
Store Brands Positioning Marketing Initiatives Focus on optimising mix Partner with third party brands In-store events 24
Slide 25: Multi Channel Opportunity
Multi Channel Opportunity Creating synergy ffrom existing i ti infrastructure Strong base to build from Continually upgrading capabilities 25
Slide 26: Focus on Execution
Focus on Execution Customer service In-store efficiency Investment in IT 26
Slide 27: UK Performance YTD
UK Performance YTD Changes in Sales Same store Exchange Sales sales impact YTD Fiscal 2012 H.Samuel $160.9m 3.0% 7.4% 8.7% Ernest Jones $143.0m -1.6% 7.1% 4.4% UK division $303.9m 0.8% 7.3% 6.7% Operating income $2.6m down by $0.7 million Fiscal 2011 included $ $0.9 million disposal p g gain Operati
Slide 28: Major Competitive Asset
Major j Competitive p Asset Market leader in UK Largest mid market specialty jeweler in Europe Strategic partner for international mid- market k t watch t h & jewelry j l b brands d 28
Slide 29: Mark Light
MARK LIGHT President & CEO, US Division 29
Slide 30: Growth Strategy
Growth Strategy Drive store productivity p y bridal category branded merchandise Space growth potential to increase selling space Use technology to enhance sales and execution 30
Slide 31: Superior In-Store Experience
Superior In- In-Store Experience Customer service central to selling bridal jewelry “Our People p Make the Difference” Consistent use of best practice 31
Slide 32: Our People Make The Difference
“Our People p Make The Difference” Recruit R it and d retain t i the best Promote from within Longevity of staffing 32
Slide 33: Merchandising & Supply Chain
Merchandising & Supply Chain Merchandising g team Virtual inventory and personalized jewelry Supply chain expertise Branded merchandise 33
Slide 34: Branded Bridal Sales
Branded Bridal Sales Leo: recognized as the most successful branded diamond program Neil Lane Bridal: rolled out to all stores over last 15 months 34
Slide 35: Bridal Advertising
Bridal Advertising Ability to develop brands using national television advertising “Partner “P t off Ch Choice” i ” Testing different strategies 35
Slide 36: In-house Customer Finance
In--house In ouse Customer Custo e Finance a ce Tailored to our customers needs Designed to support sale of jewelry not to sell credit 36
Slide 37: Branded, Differentiated & Exclusive
Branded, Differentiated & Exclusive 37
Slide 38: Third Party Brands
38 Third Party Brands Where the artistry and craftsmanship of d expertise and innovation high- S IGNET PEwWeECER S
Slide 39: Core Merchandise
Core Merchandise Benefit from store brand equity Strong value proposition Quality of execution Scale advantage 39
Slide 40: US Real Estate Driven by Kay and Jared
US Real Estate Driven by Kay and Jared Kay Kay/ Change Change Kay off- Jared in Regional in mall1 mall Jared2 total space2 brands b d Total space2 Jan 2008 789 105 154 1,048 13% 351 1,399 10% Jan 2009 7953 131 171 1,097 7% 3043 1,401 4% Jan 2010 794 129 178 1,101 2% 260 1,361 (1)% Opened 2 2 2 6 - 6
Slide 41: Emotionally Connected Technology
Emotionally Connected Technology Based on our consumer insights Personalized jewelry y & virtual inventory Sales opportunity Scale S l advantage d t 41
Slide 42: Fiscal 2012 YTD US Performance
Fiscal 2012 YTD US Performance Changes in Sales Same store Sales ASP1 sales YTD Fiscal 2012 Kayy $802.9m 13.7% 13.5% 11.6% Jared $441.6m 12.2% 12.7% 7.9% Regionals $136.5m 5.3% (3.0)% 13.6% US division $1,381.0m 12.4% 11.3% 12.5% Operating income, net $221.0m up $77.5 million , +54.0% Operating marg
Slide 43: Ed Hrabak
Ed Hrabak SVP General Merchandising Manager SVP, 43
Slide 44: Growth Strategy
Growth Strategy Bridal category selection differentiation value Branded differentiated & exclusive merchandise create branded collections that last innovative designs Virtual inventory & personalized jewelry 44
Slide 45: Bridal Selection
Bridal Selection Comprehensive p offer Test before we invest Expertise, systems and scale 45
Slide 46: Bridal Differentiation
Bridal Differentiation Strategic brand positioning Testing new products and brand extensions 46
Slide 47: Bridal Value
Bridal Value Experience, systems and scale Strong balance sheet competitive advantage Consistency of quality 47
Slide 48: ASP Opportunity
ASP Opportunity Uncertified 1ct solitaire Certified 1ct solitaire $3,199 $4,599 1ct Leo solitaire 1ct Tolkowsky solitaire $6,499 $7,999 48
Slide 49: Exclusive & Differentiated Brands
Exclusive & Differentiated Brands Creates C t a unique i store t destination d ti ti Powerful selling proposition for sales associates St Strong performance f b by b branded d d merchandise h di 49
Slide 50: Open Hearts by Jane Seymour
Open Hearts by Jane Seymour Original design Angels Watches Keys Beads B d Butterfly and Nature collection Colored stones 50
Slide 51: Virtual Inventory & Personalized Jewelry
Virtual Inventory & Personalized Jewelry Originally developed p for Jared Extended to websites Now being expanded to Kay 51
Slide 52: Personalized Jewelry
Personalized Jewelry y Exclusive program Millions of different combinations to choose from Easy asy step step-by-step by step instructions st uct o s Dynamic pricing Real time view and detailed descriptions of the selected item 52
Slide 53: Merchandise Margin Management
Merchandise Margin Management M t Art & science of pricing Wide range of price points Time to carefully plan and execute Closely monitor outcome 53
Slide 54: George Murray
George Murray SVP, SVP Marketing 54
Slide 55: Marketing Leadership
Marketing Leadership Scale to build brands store concepts merchandise brands Multiple touch points targeted communications integrated approach Increased investment i di in digital it l media di 55
Slide 56: Leading Market Share
Leading Market Share High marketing to sales ratio $161.5 million expenditure in Fiscal 2011 27 million illi name database 56
Slide 57: Bridal Market
Bridal Market Major j research initiatives Dominated by specialty sector Research used in creation of advertising & training 57
Slide 58: Kay.com
58 Apply for Kay Credit K AY sewevens Every kiss begins with Kay.® “F ENGAGEMENT RINGS ‘ ANNIVERSARY BANDS ‘F WEDDING BANDS: GieeAOWisGnes BROWSE GIFTS BY: OUR COMPANY ABOUT KAY KAY DIAMONTOLOGIST THE KAY GUARANTEE. IMPORTANT CONSUMER INFORMATION STORE LOCATIONS JOB OPPORTUNITIES Engagement & Weddin
Slide 59: Kay.com
Kay.com pply for Kay Credit Your Account | Cart(Q items) | Wish List |Sesrch »] Advanced K A Y Engagement & Collecti Diamond Personalized Teel Watch Clearance JEWELERS Wedding Rings Ns Jewelry Jewelry er a & More Every kiss begins with Kay.® Shop the Cstslog Your Kay Card Gift Cards Eduestion Center
Slide 60: Jared.com
60 Jared.com | Welcome, sig IARED salleria Of Jewelry Customer Service Your Jared Card Gift Cards Finda Upcoming Events Have your order shipped to any Jared location FREE! gq PANDORA® PEERLESS Get Connected Sign up for special offers and gift ideas. S IGNET PEwWeECER S
Slide 61: Mobile
61 EEACT—) VIRGIN 3G 4:20 PM ] ° Y Sign up for | Offers by Email WE ia tS: es —a—s Find a Store > r | Browse Categorie: Customer Service | Full Site | Store Locator ns with Kay: Sign Up for Offers by Email > What can we help you find? Browse Categories > Customer Service | Full Site | Store Locator
Slide 62: Social Media Mobile execution
Social Media Mobile execution 62
Slide 63: On-Line Digital Advertising
On-Line Digital Advertising 63
Slide 64: On-Line Digital Advertising
On-Line Digital g Advertising g 64
Slide 65: Marketing Leadership
Marketing Leadership Scale to build brands Store concepts Merchandise brands Multiple touch points targeted communications integrated approach Increased investment i di in digital it l media di 65