Myer Holdings Limited · ASX:MYR
Myer — Shareholder Meeting (November 2011)
28 slides from Myer's shareholder meeting presentation, Nov 25, 2011
Slide 1: 2011 Annual General Meeting
For personal use only 2011 Annual General Meeting 25 November 2011 Mural Hall, Myer Melbourne Bernie Brookes CEO and Managing Director 1 Strong Foundations
Slide 2: Agenda
Agenda For personal use only • Chairman’s address • CEO update • Formal business – Resolutions – Shareholder questions • Meeting concludes 2 Strong Foundations
Slide 3: Agenda: CEO update
Agenda For personal use only • CEO update – FY2011 financial results – FY2011 operating highlights – Delivering our plan • Customer service • Omni-channel – Key focus areas for 2012 3 Strong Foundations
Slide 4: Solid result in challenging environment
Solid result in challenging environment For personal use only • Sales* down 3.8% to $3,159 million • Gross profit margin up 63bps to 40.26% • Strong cost control: cash CODB down 3.4% • EBITDA margin up 50bps to 10.70% • Stable EBIT margin of 8.20% • NPAT* $162.7 million, down 3.6% • Final dividend o
Slide 5: Strong foundations ensured resilience
Strong foundations ensured resilience For personal use only • Significantly improved technology, supply chain and store network • Strong cost, gross margin and inventory management • Comprehensive brand hierarchy including Myer Exclusive Brands (MEBs) • MYER one loyalty program “Experienced manageme
Slide 6: Continued improvement in OGP
Continued improvement in OGP For personal use only % Operating Gross Profit (%) • Strengthened 41.5 Myer Exclusive Brands 41.0 • Improved sourcing 40.5 40.26 40.0 39.80 39.63 • Reduced shrinkage 39.50 39.5 39.18 • Disciplined inventory control 39.0 • Optimised promotions 38.5 38.0 • Better mix and s
Slide 7: Focus on more profitable categories
Focus on more profitable categories For personal use only • Responding to changing Reduced Electrical offering customer demands 14% 12% 11% 16% • Managed exit of whitegoods, rationalised music/DVD offering FY10 FY11 • Reallocation of floor space to Electrical category Remaining categories higher mar
Slide 8: EBIT reflects resilient business model
EBIT reflects resilient business model For personal use only $m % 350 Full Year EBIT FY EBIT Margin 9 8.25% 8.20% 7.20% 8 300 6.40% 7 250 271 259 6 5.00% 236 200 213 5 150 4 165 3 100 2 50 1 0 0 FY07 FY08 FY09 FY10 FY11 Financial Crisis Consumer Downturn FINANCIAL REVIEW 8
Slide 9: Financial highlights summary
Financial highlights summary For personal use only • Improved operating gross profit margin • Improved EBITDA margin • Stable EBIT margin • Disciplined inventory management • Strong balance sheet • Full year dividend increased “Solid financial structure ensures we are well positioned for growth” 9
Slide 10: Agenda
Agenda For personal use only • CEO update – FY2011 financial results – FY2011 operating highlights – Delivering our plan • Customer service • Omni-channel – Key focus areas for 2012 10 Strong Foundations
Slide 11: Operating highlights in FY2011
Operating highlights in FY2011 For personal use only • Melbourne relaunch and new stores • New store opened recently at Mackay • Investment in service funded by optimised promotions • Enhanced merchandise offer • Sourcing offices established in Asia • Acquisition of 65% of sass & bide 11
Slide 12: Myer Melbourne awarded World Retail store design of the year 2011
Myer Melbourne awarded World Retail store design of the year 2011 For personal use only 12
Slide 13: Mackay successfully launched and trading ahead of expectations
Mackay successfully launched and trading ahead of expectations For personal use only 13
Slide 14: Continually optimising store network
Continually optimising store network For personal use only • Completed three refurbishments. Works underway at Liverpool and Carindale • Townsville, Fountain Gate and Shell Harbour under construction. Only full-line department store in all locations – Anticipate Townsville opening August 2012 • Repl
Slide 15: sass & bide Arthur Galan AG
sass & bide Arthur Galan AG For personal use only 15
Slide 16: For personal use only
16 For personal use only
Slide 17: BIB, Jayson Brunsdon Black Label
BIB For personal use only Jayson Brunsdon Black Label 17
Slide 18: Newness, Inspiration, Fashionability
Newness, Inspiration, Fashionability For personal use only New brands improve depth of offer Womens: sass & bide, Arthur Galan AG, Simona, Fleur Wood, Howard Showers, Urbane activ, BIB, Jayson Brundson Black Label, Morrison, Sass Footwear: Stephane Kelien, Balmain Youth: Lipsy, Mossimo Mens: Domingo
Slide 19: Katy Perry Fragrance Benefit
Katy Perry Fragrance Benefit For personal use only 19
Slide 20: Sourcing offices to drive MEB growth
Sourcing offices to drive MEB growth For personal use only • Improved gross profit, speed to market, better control over production cycle – Shanghai office to manage China sourcing – Hong Kong office to manage other markets and new opportunities – Quality Control, Quality Assurance focus “Speed to m
Slide 21: Agenda
Agenda For personal use only • CEO update – FY2011 financial results – FY2011 operating highlights – Delivering our plan • Customer service • Omni-channel – Key focus areas for 2012 21 Strong Foundations
Slide 22: Investing in customer service
Investing in customer service For personal use only • Additional selling hours supported by reinvestment of savings from optimised promotions • Focus on high-service categories (footwear, apparel, intimates, men’s suiting) • Program initiatives include – Service and product – Sales based incentives
Slide 23: Omni-channel offer
Omni-channel offer For personal use only Website Advertising Mobile Email STORES Digital Installations* Search Social Events Technical infrastructure Supply chain & inventory management Human resources and talent DELIVERING OUR PLAN * e.g. Kiosks, interactive signage 23
Slide 24: Integrated and targeted marketing
Integrated and targeted marketing For personal use only • Continued marketing mix reallocation • Digital marketing, social media, part of everyday focus • Sales to MYER one customers over $2 billion • Over 1,000 MYER one affiliate locations • MYER one customer analysis enables targeted and relevant
Slide 25: Christmas campaign
Christmas campaign For personal use only • Fully integrated campaign across stores, marketing, events and online • Focus on gift giving • Melbourne Christmas Spectacular • Christmas Windows in Melbourne and Brisbane • Program of in store events in downtown stores “Jump in it’s Christmas” 25
Slide 26: Reinvigorated Stocktake Sale
Reinvigorated Stocktake Sale For personal use only • Australia’s biggest Stocktake Sale • New and different creative • Heightened sense of urgency • Integrated approach across all channels “The countdown begins!” 26
Slide 27: Agenda
Agenda For personal use only • CEO update – FY2011 financial results – FY2011 operating highlights – Delivering our plan • Customer service • Omni-channel – Key focus areas for 2012 27 Strong Foundations
Slide 28: Key focus areas for 2012
Key focus areas for 2012 For personal use only • New stores and refurbishments • Optimise promotions • Reduce shrinkage • Increase Myer Exclusive Brands mix • Further develop leading omni-channel offer • Strengthen MYER one loyalty program “Underpinned by improved customer service” 28