Premier Investments Limited · ASX:PMV
Premier Investments — Investor Presentation (September 2019)
46 slides from Premier Investments's investor presentation, Sep 20, 2019
Slide 1: Premier Investments Limited 2019 Full Year Results Overview
Premier Investments Limited 2019 Full Year Results Overview 20 September 2019 X 0
Slide 2: Agenda
Agenda Premier Investments Limited Smiggle - Accelerated global growth 1 FY19 overview 8 strategy far exceeding expectations Peter Alexander - Delivers record result with Premier Investments Limited 2 FY19 consolidated financial results 9 growth set to continue 3 Premier Retail - Delivers record res
Slide 3: FY19 Overview
peteralexander PREMIER INVESTMENTS LIMITED FY19 OVERVIEW —
Slide 4: Premier Investments FY19 overview
1 Premier Investments FY19 overview Group profit – Reported net profit after tax of $106.8 million, up 27.7% on FY18 – Underlying net profit before tax of $177.6 million, up 10.8% on FY181 – Record Underlying Premier Retail EBIT of $167.3 million, up 11.5% on FY181 – Record Premier Retail Sales of $
Slide 5: Premier Investments summarised consolidated income statement
2 Premier Investments summarised consolidated income statement $m FY19 FY18 Premier Retail EBIT – underlying 167.3 150.1 Premier Investments income from associate (BRG) 18.9 16.1 Premier Investments other revenue (Interest, Dividends, Rent & Other) 7.6 7.3 Premier Investments expenses (ex Premier Re
Slide 6: Premier Investments summarised consolidated balance sheet
2 Premier Investments summarised consolidated balance sheet $m 27 Jul 2019 28 Jul 2018 Assets Cash and cash equivalents 190.3 178.6 Inventories 171.2 159.3 Property, plant and equipment 210.9 238.2 Other assets 43.7 48.9 Deferred tax assets 40.4 36.6 Listed equity investment at fair value 46.9 40.7
Slide 7: Premier Retail
PREMIER RETAIL
Slide 8: Premier Retail - Delivers record result
3 Premier Retail - Delivers record result • Record sales of $1,271.0 million up 7.5% on FY18, with like-for-like (LFL) sales up 4.2% on FY18 on a constant currency basis • Record Underlying EBIT of $167.3 million, up 11.5% on FY181 • Record Underlying EBIT % to sales of 13.2%, up 47 bps on FY181 • R
Slide 9: Premier Retail performance
3 Premier Retail performance 52 weeks 52 Weeks $000 to 27 Jul 2019 to 28 Jul 2018 Var LY Sales 1,270,958 1,182,221 +7.5% LFL sales (constant currency) +4.2% +3.3% Gross Profit 786,578 738,314 +6.5% Gross margin (%) 61.9% 62.5% -56 bps Employee Expenses1 (301,737) (280,268) +7.7% % sales 23.7% 23.7%
Slide 10: Premier Retail – Delivers 8 consecutive years of growth
4 Premier Retail – Delivers 8 consecutive years of growth • 8 consecutive years of Underlying EBIT growth • FY19 Underlying EBIT margin to Sales up 47 bps on FY18 • Key Gross Margin and CODB strategies delivering 13.2% Underlying EBIT – 8 Year History 12.7% 13.0% 175.0 12.4% 167.3 12.3% 12.5% 150.1
Slide 11: Premier Retail - Delivers record result
4 Premier Retail - Delivers record result Gross Margin Strategies continue to deliver • FY19 results were achieved notwithstanding significant external headwinds in the apparel sector and with Brexit uncertainty in the United Kingdom, with retailers generally continuing to discount deeper and for lo
Slide 12: Premier Retail – Delivers Underlying CODB reduction of 109 bps
4 Premier Retail - Delivers Underlying CODB reduction of 109 bps CODB – Store Profitability Focus • 35 stores closed during the last 12 months, a total of 138 stores closed over the last 7 years, as part of the ongoing program to close unprofitable stores • As consumers continue to increase their on
Slide 13: Premier Retail – Investment continues in store network
5 Premier Retail – Investment continues in store network Premier Retail continues to invest in new stores, upgrades and refurbishments to deliver sustainable sales growth 162 stores received capital investment, including 28 new stores and 6 new Smiggle International Concessions opened in FY19 In FY1
Slide 14: Premier Retail – Investment continues in store network
5 Premier Retail - Investment continues in store network • 3 new stores opened across Australia and New Zealand • 1 store relocated and refurbished in Australia • 1 store refurbished in existing locations in Australia • 93 stores received fixture upgrades in Australia • 2 new stores opened across Au
Slide 15: Apparel Brands - Deliver strong FY19 sales growth
9 6 Apparel Brands - Deliver strong FY19 sales growth • Apparel Brands FY19 sales up 6.9% on FY18 to $716.7 million • Apparel Brands FY19 LFL sales growth of 7.8% was stronger than overall growth, with 26 stores closed during the last 12 months as part of the ongoing program to close unprofitable st
Slide 16: Online - Delivers record sales
9 7 Online - Delivers record sales • Record Online sales of $148.2 million, up 31.7% on a previous record FY18 • Online sales growing to 13.4% of the respective markets’ sales in FY19 Online Sales Growth • The Group surpassed its aspirational target of 180.0 13.4% 14.0% $100 million in global annual
Slide 17: Smiggle - strategy to accelerate global growth far exceeding expectations
8 Smiggle - strategy to accelerate global growth far exceeding expectations • Record sales in FY19 of $306.5 million driven by another outstanding year in Asia • The accelerated growth strategy announced in September 2018 is successfully being delivered with performance to date far exceeding expecta
Slide 18: Smiggle - Wholesale launch successful and far exceeding expectations
8 Smiggle - Wholesale launch successful and far exceeding expectations Wholesale Update • All 6 countries announced in March 2019 have successfully launched • South Korea, Thailand, Indonesia, Philippines, United Arab Emirates and Canada • In addition, launch in the Middle East now extended to Qatar
Slide 19: Wholesale partners all delivering on the brand’s high standards
8 Wholesale partners all delivering on the brand’s high standards United Arab Emirates Indonesia Canada Philippines 18
Slide 20: Wholesale partners all delivering on the brand’s high standards
8 Wholesale partners all delivering on the brand’s high standards South Korea Qatar Thailand 19
Slide 21: Smiggle - Wholesale business far exceeding expectations
8 Smiggle - Wholesale business far exceeding expectations Wholesale Update 45 • Smiggle has received $17 million of 40 Retail Value wholesale orders – far exceeding 35 Ordered Sales $ million (AUD) expectations 30 Delivered • The $17 million of Smiggle wholesale 25 1H20 orders has the potential to d
Slide 22: All 6 iconic retail partners are delivering on the brand standards
8 All 6 iconic retail partners are delivering on the brand standards Wholesale Update • All wholesale ordering is done on a quarterly basis, with product then delivered and dropped into doors on a monthly basis to ensure continual brand newness similar to the brands own standalone stores • All whole
Slide 23: Smiggle wholesale channel - long runway for future global growth
8 Smiggle wholesale channel - long runway for future global growth Wholesale Update • Smiggle brand is now represented in over 180 doors through 6 iconic retailers across 7 countries with a combined population of over half a billion and with the potential to grow to 350+ doors with the existing 6 pa
Slide 24: Online channel continues to expand and is far exceeding expectations
8 Online channel continues to expand and is far exceeding expectations Smiggle Online Update • Smiggle online channel continues to far exceed expectations • FY19 UK online sales were 18% of total UK sales and Australia online sales were 10% of total Australia sales as consumers increasingly shop thi
Slide 25: Concession strategy with iconic retail partners continues to deliver
8 Concession strategy with iconic retail partners continues to deliver Concession Update • The concession strategy enables the brand to leverage on the foot traffic generated by the iconic retail partner without the need for long term leases and at a fraction of the capital employed to open standalo
Slide 26: Concession strategy with iconic retail partners continues to deliver
8 Concession strategy with iconic retail partners continues to deliver Concession Update Harrods, London – opened August 2018 Selfridges Oxford Street Store, London – new location opened August 2019 25
Slide 27: Smiggle pathways to global growth update – New standalone stores
8 Smiggle pathways to global growth update – New standalone stores New Standalone Store Update • The brand will continue to explore compelling opportunities to open standalone stores in existing markets where commercial terms and returns on investment are attractive for shareholders • New standalone
Slide 28: Smiggle summary – pathways to global growth far exceeding expectations
8 Smiggle summary – pathways to global growth far exceeding expectations Smiggle accelerated global growth strategy summary • Smiggle has once again delivered a record result in FY19 • Smiggle reaffirms its growth strategy target to deliver $450 million in annual global retail sales in calendar 2021
Slide 29: Smiggle’s four pathways to growth are far exceeding expectations
8 Smiggle’s four pathways to growth are far exceeding expectations All channels to consumers are represented in the brand’s global top 10 stores • The four pathways to growth strategy is delivering significant global brand exposure and a much higher EBIT margin with materially less capital, generati
Slide 30: Peter Alexander – Delivers record result
9 Peter Alexander – Delivers record result PeterPeter Alexander Sales Growth Alexander Sales 260 240 220 200 180 160 Sales AUD $m 140 120 $248 $219 100 $191 80 $167 $140 60 $122 $101 40 $86 $73 $50 $61 20 - FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16* FY17 FY18 FY19 Sales Notes: 1. FY16 excludes non-com
Slide 31: Peter Alexander – 2020 Growth Plan now delivered
9 Peter Alexander – 2020 Growth Plan now delivered • Record Sales up 13.3% to $247.8 million with strong total and LFL sales in both Australia and New Zealand • 2020 Strategic Growth plan announced in September 2017 to increase annual sales to $250 million by FY20 has now been delivered one year ahe
Slide 32: Peter Alexander - Growth set to continue
9 Peter Alexander - Growth set to continue • 2020 Strategic Growth plan announced in September 2017 to increase annual sales to $250 million by FY20 has now been delivered one year ahead of schedule - with growth set to continue • Potential to open a further 20-30 stores over the next 2 years, with
Slide 33: Premier Retail summary FY19
10 Premier Retail summary FY19 Smiggle record result with the four global growth platforms far exceeding expectations • Record result in FY19 • Record performance in Asia • Reaffirm Smiggle growth strategy targeting to deliver $450 million in annual global Smiggle retail sales in calendar 2021 or ca
Slide 34: Premier Retail summary FY19
10 Premier Retail summary FY19 Peter Alexander – Delivers record result • Record Sales up 13.3% to $247.8 million with strong total and LFL sales growth in both Australia and New Zealand • 2020 Strategic Growth plan announced in September 2017 to increase annual sales to $250 million by FY20 has now
Slide 35: Dividends
DIVIDENDS
Slide 36: Dividends
11 Dividends • Due to the continued strength of the Premier Balance Sheet and the strong performance of Premier Retail, the Premier Board has declared an increased record final dividend of 37 cps fully franked, up 12.1% (FY18 Final: 33 cps) • Total full year ordinary dividends of 70 cps fully franke
Slide 37: Premier Retail: Brand by Brand Performance
PREMIER RETAIL ot Ue A: BRAND BY aoe PERFORMANCE
Slide 38: Smiggle highlights
A Highlights • Record sales in FY19 of $306.5 million • Record performance in Asia • Reaffirm Smiggle growth strategy targeting to deliver $450 million in annual global Smiggle retail sales in calendar 2021 or calendar 2022 • The four pathways to growth deliver significant global brand exposure and
Slide 39: Peter Alexander highlights
A Highlights • Record Sales up 13.3% to $247.8 million with strong total and LFL sales growth in both Australia and New Zealand • 2020 Strategic Growth plan announced in September 2017 to increase annual sales to $250 million by FY20 has now been delivered one year ahead of schedule – with growth se
Slide 40: Just Jeans highlights
A Highlights • FY19 Sales up 13.7% to $241.9m - a particularly pleasing result for the group’s original brand founded in 1970 • FY19 LFL sales up 13.6% • 4 stores were closed in the last 12 months as part of the ongoing program to close unprofitable stores. The closure of these stores is EBIT positi
Slide 41: Jay Jays highlights
A Highlights • FY19 Sales up a 6.7% to $168.7 million delivering a strong result for the brand • FY19 LFL sales up 6.9% - stronger than overall sales growth • 7 stores were closed in the last 12 months as part of the ongoing program to close unprofitable stores. The closure of these stores is EBIT p
Slide 42: Portmans highlights
A Highlights • FY19 Sales up 3.5% to $128.4 million • FY19 LFL sales up 6.1% - stronger than overall sales growth • 4 stores were closed in the last 12 months as part of the ongoing program to close unprofitable stores. The closure of these stores is EBIT positive for the brand despite the headline
Slide 43: Jacqui E highlights
A Highlights • FY19 Sales up 3.3% to $71.5 million • FY19 LFL sales up 3.2% • 2 stores were closed in the last 12 months as part of the ongoing program to close unprofitable stores. The closure of these stores is EBIT positive for the brand despite the headline loss of sales in these stores • Jacqui
Slide 44: Dotti highlights
A Highlights • The appointment of Judy Coomber to role of Managing Director Peter Alexander and Dotti, together with the return of Deanna Moylan to the group as Dotti Group General Manager in March 2018 reporting to Judy, is delivering a turnaround in performance • FY19 LFL sales up 2.2% were strong
Slide 45: Appendix B: Notes on one-off items excluded from underlying results
B B Appendix Notes regarding significant and other one-off items excluded from underlying results • FY19: Recent political developments in the United Kingdom, including the appointment of Boris Johnson as Prime Minister, have added further political and economic uncertainty to an already distressed
Slide 46: Appendix B: Overview of Premier’s non-IFRS financial information
B B Appendix Overview of Premier’s non–IFRS financial information • IFRS financial information is financial information that is presented in accordance with all relevant accounting standards. • Non-IFRS financial information is financial information that is presented other than in accordance with al
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