Dfs Furniture Plc · LSE:DFS
Dfs Furniture — Investor Presentation (September 2022)
20 slides from Dfs Furniture's investor presentation, September 2022
Slide 1: DFS Furniture plc
Image: Storeaway DFS Furniture plc Claire Rushdon? SEPTEMBER 2022 1
Slide 2: Introducing DFS
Introducing DFS Company overview and market context 2
Slide 3: Company Snapshot
INTRODUCING DFS Company Snapshot Our exclusive brand partners & ranges 1969 FY22 Revenues Company Founded Sofology 21.1% 5,800 colleagues DFS 78.9% Excluding Sodelco, Male 56.5%; Female = 43.5% A balanced team/workforce across age & tenure +20.1% Revenue Growth vs FY19 Best Companies Index Retail +3
Slide 4: To lead furniture retailing in the digital age
INTRODUCING DFS CMD March 2022 “PILLARS & PLATFORMS” GROUP STRATEGY OUR MISSION OUR VISION To lead furniture HOME retailing in the Sourcing & Manufacturing Platform digital age Technology & Data Platform 2018-21: Realising the new ‘base’ Logistics Platform People & Culture Platform ESG 4
Slide 5: A Strong, Robust Sector Leader
INTRODUCING DFS A Strong, Robust Sector Leader 1. BEST CUSTOMER PROPOSITION & BRANDS gaining share Short-term sector share opportunities 4. INVESTING 2. BEST FOR THE PLATFORMS FUTURE & SCALE Long-term, underpins financial ambition E.g. Home, Digital, with better cost Data & ESG base & margins 3. PROV
Slide 6: Historically, DFS Gains Share in Tough Environments
INTRODUCING DFS Historically, DFS Gains Share in Tough Environments DFS Group Upholstery Sector Share (%) 2022 Sector Share: (& UK upholstery segment size £bn) Fragmented sector; on-going exits present further share gain opportunities 36% DFS Group Other: general retailers & 36% independants: 32% (S
Slide 7: Strategy Update
Strategy Update Introducing our Pillars & Platforms Strategy 7
Slide 8: To lead furniture retailing in the digital age
DFS STRATEGY UPDATE CMD March 2022 “PILLARS & PLATFORMS” GROUP STRATEGY OUR MISSION OUR VISION To lead furniture HOME retailing in the Sourcing & Manufacturing Platform digital age Technology & Data Platform 2018-21: Realising the new ‘base’ Logistics Platform People & Culture Platform ESG 8
Slide 9: DFS Highlights: Strong on-going performance
DFS STRATEGY UPDATE DFS Highlights: Strong on-going performance New Strategic Ongoing Intelligent brand range investment lending marketing development in format platform Resulting in positive shift in Winning exclusive brands & Transformation roll out New features (e.g. soft search) Brand Connection
Slide 10: Sofology Highlights: Continued growth & development
DFS STRATEGY UPDATE Sofology Highlights: Continued growth & development Driving brand Investing in Store rollout Leveraging awareness product range programme group platforms 7 new stores, 55 in total 2 On-going full integration TVC & collaboration with E.g. new new stores planned for with SodelCo an
Slide 11: Home Highlights: Sustained investment in building the foundations
DFS STRATEGY UPDATE Home Highlights: Sustained investment in building the foundations Unlocking Driving Building Beds & Online awareness & supply chain Mattresses performance conversion capability opportunity Focusing on £3bn Launch of first ever beds Beds online sales: Unlocking capability to addres
Slide 12: Platform Highlights
DFS STRATEGY UPDATE Platform Highlights “PILLARS & PLATFORMS” GROUP 1. Sourcing & Manufacturing STRATEGY Commenced refurbishment of Doncaster site. Focus on OUR MISSION optimising mix of Europe & Asia to support UK manufacturing 2. Technology & Data HOME Launch IRIS (integrating 35+ data sources, pr
Slide 13: ESG Highlights
DFS STRATEGY UPDATE ESG Highlights First year of reporting under the TCFD reporting requirements Positive progress made in the year, including: E: 4-year Carbon Footprint model Leveraging extensive primary data to enable broad/deep planning & decision making, incl S1 & 2 external assurance SOFA CYCL
Slide 14: Financial Results & Outlook
Financial Results & Outlook 14
Slide 15: Full-Year Results Overview
FINANCIAL RESULTS & OUTLOOK Full-Year Results Overview FY 2022 FY 2021 FY 2019 (£m) unless stated LTM to LTM to LTM to 26-Jun-221 27-Jun-211 30-Jun-192 Revenue - Continuing operations 3 1,149.8 1,055.1 957.44 Growth vs FY19 +20.1% +10.2% n/a Reported PBT - Continuing operations 58.5 102.6 46.04 Unde
Slide 16: Delivering on our Financial Principles
FY22 RESULTS PRESENTATION Delivering on our Financial Principles 1. Revenue 2. Growing 3. High-teens 4. Return of Growth Profit Base ROCE Capital 6% 5% 15.4% CAGR CAGR 5 Year Average £10m Buyback extension 3.7p Final 1 2 3 dividend 1 FY19 Revenue excludes discontinued operations and Sofa Workshop 2 F
Slide 17: Our Variable and Controllable Cost Base
FY22 RESULTS PRESENTATION Our Variable and Controllable Cost Base Ability to influence our cost base as the environment changes Cost of Sales - 59% of Gross Sales ● Primarily product costs, but also VAT, far-east freight and interest free subsidy costs Directly ● £13.7m one-off costs in FY22 relating
Slide 18: FY23 Full Year Outlook Scenarios
FY22 RESULTS PRESENTATION FY23 Full Year Outlook Scenarios Profit expectations influenced by sector volume decline LOW MEDIUM HIGH Current trading: LFL SECTOR VOLUME ● Too short a period to extrapolate (vs. FY19) -15% -10% -5% ● September towards high-end as some Q1 consumer demand constraints lessen
Slide 19: Long-term Ambition Remains
FY22 RESULTS PRESENTATION Long-term Ambition Remains Growing Growing Growing Revenues Margins Free Cash £1.4bn 8%+ Well-Underpinned 75%+ Post-Tax Free Cash FY26/FY27 Target Medium-Term Conversion PBTa Margin Platforms Household Efficient Growth Home Share Sales Gain Negative Working Low Leverage and U
Slide 20: Thank you
Thank you 20
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