Myer Holdings Limited · ASX:MYR
Myer — H1 2017 Earnings Presentation
19 slides from Myer's earnings presentation, Mar 16, 2017
Slide 1: Myer records first half NPAT growth of 5.3% to $62.8 million
16 March 2017 Myer records first half NPAT growth of 5.3% to $62.8 million Myer Holdings Limited (MYR) today announced its financial results for the 26 weeks to 28 January 2017. Myer Chief Executive Officer and Managing Director, Richard Umbers said, “Myer delivered encouraging sales around the key
Slide 2: 1H2017 result commentary: concessions, MEBs and omni-channel
centre disruption. The store will benefit further as customer traffic continues to return to the centre. “During the period, the merchandise range was further enhanced with the introduction of approximately 700 new or upgraded installations. We also launched the Myer Academy to improve training and
Slide 3: Costs, cash flow, capex and FY2017 outlook
costs without compromising customer service levels for wholesale and Myer Exclusive Brands. We also delivered further optimisation of store support functions. Offsetting these savings were higher project opex associated with the higher capex spend to support the rollout of the New Myer strategy. Dep
Slide 4: Analyst and Investor briefing
Analyst and Investor briefing: A briefing will be held for analysts and investors today at 10:00am (Melbourne time). This briefing will be webcast live at: http://streamcast.com.au/myer/1H17result/. Viewers will need to register their name, email and company to access the webcast. An archive webcast
Slide 5: Table 1: Profit & Loss Statement for the 26 weeks to 28 January 2017
Table 1: Profit & Loss Statement for the 26 weeks to 28 January 2017 1H 2017 1H 2016 Change vs Change vs. LY $m $m LY ($m) Total Sales Value 1,784.6 1,794.8 (10.2) (0.6%) Concessions 386.2 309.7 76.5 +24.7% Myer Exclusive Brands 300.2 339.6 (39.4) (11.6%) National Brands and other 1,098.2 1,145.5 (4
Slide 6: Table 2: Balance Sheet as at 28 January 2017
Table 2: Balance Sheet as at 28 January 2017 January 2017 January 2016 $m $m Inventory 403 408 Other Assets 71 68 Less Creditors (475) (502) Less Other Liabilities (211) (196) Property 24 24 Fixed Assets 432 432 Intangibles 901 906 Total Funds Employed 1,145 1,140 Comprising of: Debt 98 147 Less Cas
Slide 7: Table 4: Other Statistics and Financial Ratios
Table 4: Other Statistics and Financial Ratios 1H 2017 1H 2016 Return on Total Funds Employed* 10.1% 10.9% Gearing -0.7% 0.6% Net Debt/EBITDA* (0.03x) 0.05x Stock turn 3.3x 3.4x Creditor Days 69 days 71 days * Calculated on a rolling 12 months basis Table 5: Shares and Dividends 1H 2017 1H 2016 Shar
Slide 8: Myer Holdings Interim Results to 28 January 2017
16 MARCH 2017 MYER HOLDINGS INTERIM RESULTS TO 28 JANUARY 2017 RICHARD UMBERS GRANT DEVONPORT CEO AND MANAGING DIRECTOR CHIEF FINANCIAL OFFICER THE AGENDA 2 1
Slide 9: Myer records NPAT growth of 5.3% to $62.8 million
Myer records NPAT growth of 5.3% to $62.8 million Tolal sales down 0.6% to $1,784.6 million, sales up 0.3% on acomparable store basis reflecting Competitive environment with increased discounting in market during Q2 Solid sales during Spring Racing and Christmas Subdued Stocktake Sale Rate of operat
Slide 10: New Myer Target Metrics 1H2017
NEW MYER TARGET METRICS 1H2017 SALES SALES / SQM E B I TDA ROFE 5 THE AGENDA 6 3
Slide 11: Operating Gross Profit Margin
$ MILLIONS 1H2017 1H2016 CHANGE - - - - - - - - 7 – O P E R A TI NG G R O S S – PROFIT MARGIN CO S T O F DO I NG B US I NE S S M A R G I N – E B I TDA M A R G I N – O P E R A TI NG CA S H F L O W ($ M ) DI V I DE ND (CE NTS ) – – 8 4
Slide 12: Mix impact on OGP margin and CODB reduction
- Mix impact on OGP margin of higher concessions and lower MEBs (down 92 basis points) Rate includes: - Impact on MEBs of AUD depreciation (down 61 basis points) Mitigated through: - Continued focus on optimising markdowns - Improved sourcing and distribution costs MYER Operating Gross Profit margin
Slide 13: $ Millions 1H2017 1H2016
$ MILLIONS 1H2017 1H2016 - - - - - - - 11 - - - - - - - - - 12 6
Slide 14: A more efficient operating model
MYER THE AGENDA 1H2017 Highlights 1112017 Financial Overview New Myer Progress to deliver New Myer and Customer Service omni-channel and productiv to support the business MYER A more efficient operating model - Initial strategy focus was on improving Merchandise - Focus is now on delivering initiati
Slide 15: Supported by a more productive and cost effective business
Supported by a more productive _ tall and cost effective business i We're investing in new systems and processes to drive 1 f productivity and cost efficiencies: Workforce Management System (WMS) piloted and currently being rolled out Merchandise planning system well progressed Appointed external pr
Slide 16: Enhanced merchandise range tailored to local customers
Enhanced merchandise range tailored to local customers - Rolled out ~700 new or upgraded brand installations during the period - MEB Master Brands with improved service model and upgraded installations currently being rolled out to 33 stores - Basque, Piper, BLAQ - Key wanted brands rollout continue
Slide 17: Experiential retailing delivers strong results
Experiential retailing delivers strong results Christmas Giftorium - Well established gift destination, traffic driver - 17 different personalisation options - Gifting options increased by 38% on LY - Over 800 team members were trained for Giftorium with: - ~3800 new team members hired, with a furth
Slide 18: Myer Holdings Interim Results to January 2017
- - 21 16 MARCH 2017 MYER HOLDINGS INTERIM RESULTS TO 28 JANUARY 2017 RICHARD UMBERS GRANT DEVONPORT CEO AND MANAGING DIRECTOR CHIEF FINANCIAL OFFICER 11
Slide 19: New Myer Target Metrics Definitions
NE W M YE R TA R G E T M E TR I CS De f i ni ti o n SALES SALES / SQM E B I TDA ROFE 23 24 12