Kmd Brands Limited · NZX:KMD
Kmd Brands — Kathmandu Holdings — Shareholder Meeting (November 2013)
26 slides from Kmd Brands's shareholder meeting presentation, Nov 20, 2013
Slide 1: Annual General Meeting 20 November 2013
For personal use only Annual General Meeting 20 November 2013
Slide 2: Agenda: 2013 Annual General Meeting
Agenda: 2013 Annual General Meeting For personal use only • Chairman’s address • Chief Executive Officer’s address • Ordinary business ◦ Item 1: Financial Statements ◦ Item 2: Election of Directors ◦ Item 3: Auditor’s Remuneration ◦ Item 4: Approval of Long Term Incentive Plan for employees ◦ Item 5
Slide 3: Chairman's address
For personal use only Chairman’s address
Slide 4: Chairman's address: Financial results
Chairman’s address: Financial results For personal use only • Sales growth: NZ$36.9 million to NZ$384.0 million, up 10.6%; • EBIT of NZ$63.4 million, up 11.2%; • NPAT of NZ$44.2 million, up 26.6%; • Final dividend of NZ 9.0 cents per share declared (fully franked, fully imputed). • Full year dividen
Slide 5: CEO's address
For personal use only CEO’s address
Slide 6: 2013 Annual General Meeting
CEO’s address: 2013 Annual General Meeting For personal use only • FY13 results summary • FY13 other key highlights • Growth strategy update • UK update • Sustainability • Trading performance update • FY14 outlook 6
Slide 7: FY13 results summary
CEO’s address: FY13 results summary For personal use only • Record sales $384.0m; • Same store sales growth 5.6% at constant exchange rates; • Gross margin 63.0%; within 62% to 64% long-term target range; • Operating expenses 30bps reduction as a % of sales; • Net profit after tax $44.2m (up 26.6%);
Slide 8: FY13 other key highlights
CEO’s address: FY13 other key highlights For personal use only • Summit Club membership now over 1 million customers; • Online sales grew by 55%, and now exceed 4% of Group sales; • UK business re-organisation completed; • Australian distribution centre floor space extended by 50%; • Total permanent
Slide 9: Growth strategy update: New store rollout
CEO’s address: Growth strategy update For personal use only NEW STORE ROLLOUT Store Rollout History AU NZ • FY14 target of 15 new stores (13 in AU, 2 in NZ); • 5 stores will open in 1H FY14 (last year 9 stores): • 3 stores now open: 44 Auckland (St Lukes), Adelaide (West Lakes), Melbourne (Uni Hill)
Slide 10: Growth strategy update: Improve existing store network
CEO’s address: Growth strategy update For personal use only IMPROVE EXISTING STORE NETWORK • Assortment range planning tools being implemented to optimise the product range for store footprint and location; • Bondi Junction (Sydney) refurbished, Petone (Wellington) undergoing a major refurbishment;
Slide 11: Growth strategy update: Enhance product offering
CEO’s address: Growth strategy update For personal use only ENHANCE PRODUCT OFFERING • Inventory investment targeting key performing product lines to optimise store formats and geographical locations; • Total SKU count to remain around current level; • Ongoing investment in research and product deve
Slide 12: Growth strategy update: Online and digital
CEO’s address: Growth strategy update For personal use only ONLINE AND DIGITAL • Rapid growth - 3yr CAGR 86% since FY10; • Mobile optimised site launched; • Amazon UK operational – provides access to 144 million potential customers. Focus on search engine optimisation; • Future enhancements: interna
Slide 13: Growth strategy update: Summit Club
CEO’s address: Growth strategy update For personal use only SUMMIT CLUB • Over one million active Summit Club members. Will continue to grow with emphasis on Australia; • Customer segmentation to enable focus on high value customers; • Programme to be developed further to ensure it is customer centr
Slide 14: UK update
CEO’s address: UK update For personal use only • Re-organised UK business now has: ‒ Four stores (three London, one Bristol); ‒ Online channel: Kathmandu, Kathmandu Outlet, and Amazon; ‒ London stores refitted to new brand standards. • Omni-Channel strategy commenced: iPads in store, click & collect
Slide 15: Sustainability
CEO’s address: Sustainability For personal use only • Sustainability is a core value. We recognise its importance to our stakeholders. • Key achievements from our Sustain the Dream Plan (2011–2013): • Significant suppliers signed up to our Terms of Trade code of conduct; • Supplier audit process dev
Slide 16: Trading pattern
CEO’s address: Trading pattern For personal use only Last Year Sales mix across the year First 16 weeks to Includes Christmas Sale and Includes Easter and Winter Sales 18 Nov 2012 January Clearance 18% 23% 59% FIRST HALF-YEAR SECOND HALF-YEAR • Three major promotions a large portion of our annual tr
Slide 17: Trading performance update
CEO’s address: Trading performance update For personal use only • Sales $70.9m for the period ending 17 Nov 2013; • Sales growth above FY13 pcp by $0.6m, +0.9%, or $5.9m, +8.4% at constant exchange rates. YOY exchange rate impact -$5.3m*1; • Same store sales growth +3.8% at constant exchange rates (
Slide 18: FY14 outlook
CEO’s address: FY14 outlook For personal use only Market / Environment • Current economic conditions still uncertain globally, and particularly in Australia; • Consumers remain cautious with discretionary expenditure; • Outdoor category remains resilient; • Competition continues to increase, online
Slide 19: Resolutions: Items to be considered
For personal use only Resolutions: Items 1 to 6
Slide 20: Item 1: Financial Statements
Item 1: Financial Statements For personal use only To receive and consider the Financial Report of the Company for the year ended 31 July 2013 together with the Directors’ and Auditor’s reports. 20
Slide 21: Item 2: Election of Directors
Item 2: Election of Directors For personal use only To re-elect Directors of the Company, each election to be voted on separately: a) “That Mr. John Holland, who retires by rotation in accordance with Article 4.4 of the Company’s Constitution and, being eligible, offers himself for re-election, be r
Slide 22: Item 3: Auditor's Remuneration
Item 3: Auditor’s Remuneration For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “To record that PricewaterhouseCoopers continue in office as the Company’s auditor and to authorise the Directors to fix the remuneration of Pricewaterhou
Slide 23: Item 4: Long Term Incentive Plan for employees
Item 4: Long Term Incentive Plan for employees For personal use only To consider and, if thought fit, pass the following resolution as an ordinary resolution of the Company: “That approval is given for the purpose of Exception 9 in ASX Listing Rule 7.2 and for all other purposes for the grant of per
Slide 24: Item 5: Grant of Performance Rights – Peter Halkett
Item 5: Grant of Performance Rights – Peter Halkett For personal use only To consider and, if thought fit, pass the following resolution as an ordinary resolution of the Company: “That for the purposes of ASX Listing Rule 10.14, and for all other purposes, approval is hereby given for the grant to P
Slide 25: Item 6: Grant of Performance Rights – Mark Todd
Item 6: Grant of Performance Rights – Mark Todd For personal use only To consider and, if thought fit, pass the following resolution as an ordinary resolution of the Company: “That for the purposes of ASX Listing Rule 10.14, and for all other purposes, approval is hereby given for the grant to Mark
Slide 26: Other business
For personal use only Other business
Kathmandu Holdings — Shareholder Meeting (November 2013) on 6ix