Signet Jewelers Limited · NYSE:SIG
Signet Jewelers — Signet Investor Conferences Supplement, May 31 – June 1, 2017
9 slides from Signet Jewelers's conference presentation, May 31, 2017
Slide 1: Signet Investor Conferences Supplement
Signet Investor Conferences Supplement Michele Santana, CFO May 31 – June 1, 2017
Slide 2: Forward Looking Statements & Other Disclosure Matters
Forward Looking Statements & Other Disclosure Matters Forward-Looking Statements – This presentation contains statements which are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, based upon management's beliefs and expectations
Slide 3: Phased, Strategic Outsourcing of Credit Portfolio
Phased, Strategic Outsourcing of Credit Portfolio Strategic, phased approach designed to maintain Signet’s full spectrum of retail financing options and net sales through long-term partnerships¹ Phase I Phase 2 ▪ Alliance Data to purchase prime-only credit quality accounts ▪ Intend to fully outsourc
Slide 4: Full Spectrum of Financing Coverage
Full Spectrum of Financing Coverage 1 Credit Tier Share of FY17 Phase 1 Servicing Phase 1 Funding Credit Sales (%)² Prime 65% Near/Non- Prime 28% Lower Tier 7% Note: Not scaled to the actual size of the portfolio ¹Signet will not offer credit insurance as a part of its credit offering after closing,
Slide 5: Lease-Purchase Program – Progressive Leasing
Lease-Purchase Program – Progressive Leasing Progressive Leasing will provide Lease-Purchase Program to customers not eligible for Primary and Secondary Programs Progressive Leasing Overview Partnership Terms ▪ Owned by Aaron’s ($2.5 billion market cap) ▪ Progressive to serve as lease-purchase partn
Slide 6: Financial Impact
Financial Impact Pro Forma Financials ▪ Program designed to substantially maintain net sales¹ Annualized EBIT Impact ▪ A slight decline in EBIT from the transaction ▪ Transaction expected to be EPS accretive in first full year of operations Impact assuming October 2017 close and at current share pri
Slide 7: Financial Guidance
Financial Guidance Fiscal 2018 Same store sales Down low-to-mid single-digit % EPS $7.00 to $7.40 Effective tax rate 24% to 25% Weighted average common shares 74 million to 75 million Capital expenditures $260 million to $275 million Net square footage change -1% to 0% ▪ FY guidance excludes the imp
Slide 8: Reaffirmed FY 2018 Guidance
Reaffirmed FY 2018 Guidance Guidance anticipates ongoing retail industry softness; Signet has a number of initiatives underway to deliver EPS growth ▪ Q1: Largely in-line with Signet’s expectations and factored into guidance o Sequential improvement Feb - April when normalized for Mother’s Day perfo
Slide 9: Capital Allocation
Capital Allocation Strong balance sheet that provides flexibility to fund business strategy and assist on EPS ▪ Distribute 70%-80% of free cash flow in form of dividends and buybacks, excluding one-time proceeds from the credit portfolio transaction and reflected in FY18 guidance ▪ Flexibility to re
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