Kmd Brands Limited · NZX:KMD
Kmd Brands — Kathmandu — UBS Emerging Companies Conference 2011
13 slides from Kmd Brands's conference presentation, Apr 7, 2011
Slide 1: Kathmandu – UBS Emerging Companies Conference
For personal use only KATHMANDU – UBS Emerging Companies Conference Sydney 7 April 2011 1
Slide 2: Presentation Highlights
Presentation Highlights For personal use only • Recap of First Half Year Results • Key Growth Strategies • Australian Opportunity • Trading Conditions and Outlook 2
Slide 3: First Half Year Results
First Half Year Results For personal use only Solid first half sales performance (19.2% above previous half-year). Sales performance in December / January especially strong. 1H FY11 Sales and EBIT result above the upper range provided in the 19 January 2011 market guidance: • 1H FY11 Sales result NZ
Slide 4: Same Store Sales Growth
Same Store Sales Growth For personal use only NZ AU UK GROUP 20.3% 14.1% 13.0% 13.7% 12 .4 % 12 .1% 9.9% 6 .5% 2.4% 2.0% - 1.3 % -4.0% 1HFY09 1H FY10 1H FY11 • Same store sales growth enabled through: – Stock Investment and advertising – Product offer expansion – Store relocations and refurbishments
Slide 5: Gross Profit Margin and Cost of Doing Business
Gross Profit Margin and Cost of Doing Business For personal use only • Gross Profit margin improvement 340bps: – Retail price adjustments / product mix Gross Profit Margin % – Country mix, with higher margin in Australia 64.7% – Strong Christmas trade, reduced level of post 62.4% 61.3% sale clearanc
Slide 6: Key Growth Strategies
Key Growth Strategies Kathmandu core growth paths continue to provide varied strategic choices For personal use only GROWTH STRATEGY UPDATE • 7 opened, Southport, Logan (QLD), Wollongong (NSW), Belconnen (ACT), Perth Harbour Town & Whitford City (WA). Papanui (NZ). • Objective is 15 stores in FY11 •
Slide 7: Opportunity
Australian Opportunity For personal use only LATEST HALF YEAR RESULT: Sales: up 20.8% to A$57.0m Same store sales growth: 12.4% EBITDA (trading result): up 64.1% to A$10.5m • Store numbers in Australia doubled since 31 July 2007 (30 to 60) • Prospectus October 2010 envisaged up to 100 stores in Aust
Slide 8: Opportunity: Benchmarking Listed Retailers
Australian Opportunity: Benchmarking Listed Retailers For personal use only COMAPARABLE LISTED RETAILERS*1 AUSTRALIA NEW ZEALAND AU AS % OF NZ SALES PER SALES PER SALES PER FY10 STORES STORES STORES STORE (NZ$m) STORE (NZ$m) STORE (NZ$m) Michael Hill International (“MHI”) 141 2.1 53 1.8 266% 115% Pu
Slide 9: Australia vs New Zealand - why the varying market penetration
Australia vs New Zealand- why the varying market penetration For personal use only • Store network – store numbers (market reach), store size and prime locations • Product offering – To date primarily NZ driven product range with emphasis on colder climates • Brand awareness and brand attributes – l
Slide 10: Opportunity: City Example
Australian Opportunity: City Example For personal use only SYDNEY Sales per Capita compared to Auckland AUCKLAND 100.0% SYDNEY 41.0% • Comment: Auckland and Sydney are similar lifestyle and climate, Sydney we assess to be at least as good a market demographically for Kathmandu as Auckland. • If Sydn
Slide 11: Opportunity: Regional Australia Opportunity
Australian Opportunity: Regional Australia Opportunity For personal use only REGIONAL AUSTRALIA Sales per Capita compared to Regional New Zealand REGIONAL NEW ZEALAND 100.0% REGIONAL AUSTRALIA 11.0% • Comment: Australian regional areas clearly in aggregate warmer than New Zealand, and geographically
Slide 12: Opportunity – Summary & Strategies to maximise
Australian Opportunity – Summary & Strategies to maximise For personal use only Store numbers, sales per store and sales per capita benchmarking and Kathmandu’s own Australian sales performance all highlight the opportunity for: • Sales per capita in Australia to reach up to 60% of New Zealand perfo
Slide 13: FY11 Outlook, Little Changed from Recent Half year Result
FY11 Outlook, Little Changed from Recent Half year Result For personal use only Kathmandu • Store rollout on track for FY11 – only 1 store outstanding to achieve 15 store target. • Store refurbishment programme continues – most major central city stores already complete. • Product range expansion an