Premier Investments Limited · ASX:PMV
Premier Investments — Investor Presentation (September 2021)
40 slides from Premier Investments's investor presentation, Sep 23, 2021
Slide 1: Premier Investments Limited 2021 Full Year Results Overview
Premier Investments Limited 2021 Full Year Results Overview 23 September 2021 X 0
Slide 2: Agenda
Agenda Premier Investments Limited 1 FY21 overview 8 Industry restructure accelerating Premier Investments Limited 2 FY21 consolidated financial results 9 COVID-19 impacts on FY21 Smiggle – Powerful global brand 3 Premier Retail – delivers record result 10 starting to rebound Premier Retail FY21 EBI
Slide 3: FY21 Overview
CHRISTMAS NEW UNITED AUSTRALIA ZEALAND KINGDOM PREMIER INVESTMENTS LIMITED FY21 OVERVIEW
Slide 4: Premier Investments Limited FY21 overview
1 Premier Investments Limited FY21 overview Group result – Statutory net profit after tax of $271.8 million, up 97.3% on FY202 – Premier Retail sales of $1,443.2 million, up 18.7% on FY202 – Global LFL sales up 15.9% on FY20 on a constant currency basis – Record Peter Alexander sales of $388.2 milli
Slide 5: Strong balance sheet
1 Premier Investments Limited FY21 overview Strong balance sheet – Strong balance sheet at end of FY21 shows: – Investment in associate (Breville Group Limited) of $271.4 million. The market value of this investment is $1.2 billion (as at 31 July 2021) – Cash on hand of $523.3 million – Investment i
Slide 6: Summarised consolidated income statement
2 Premier Investments Limited summarised consolidated income statement $'M FY21 FY20 Premier Retail EBIT - underlying1,2 351.9 187.2 Premier Investments income from Associate (BRG) 23.9 17.7 Premier Investments other revenue (Interest, Rent & Other) 5.3 6.3 Premier Investments expenses (ex Premier R
Slide 7: Summarised consolidated balance sheet
2 Premier Investments Limited summarised consolidated balance sheet Balance Sheet $'M 31 Jul 2021 25 Jul 2020 Assets Cash and cash equivalents 523.3 448.8 Inventories 208.8 156.6 Property, plant and equipment 137.8 155.1 Right of Use assets 167.1 231.8 Other assets 26.8 40.9 Deferred tax assets 55.5
Slide 8: Premier Retail
PREMIER RETAIL
Slide 9: Premier Retail – Delivers record result
3 Premier Retail – Delivers record result – Premier Retail EBIT (Pre AASB 16) of $351.9 million, up 88.0% on FY20 Underlying EBIT1,2 – Premier Retail EBIT % to sales (Pre AASB 16) of 24.4%, up 900 bps on FY20 Underlying result1,2 – Premier Retail Profit before tax (Pre AASB 16) of $350.0 million, up
Slide 10: Premier Retail performance
3 Premier Retail performance Pre AASB16 1,2 Pre AASB16 1,2 53 weeks 52 weeks FY21 Rent Expense rebased to 13.5% $'000 to 31 Jul 2021 to 25 Jul 2020 Var LY of Sales Sales 1,443,174 1,216,316 +18.7% LFL sales (constant currency) 15.9% 7.6% As a result of the accelerating retail industry restructure un
Slide 11: Premier Retail – Results driven by Sales and Gross Margin
4 Premier Retail – Results driven by Sales and Gross Margin • Premier Retail has seven iconic brands each with a strong, distinctive and competitive market position • Premier Retail Sales of $1,443.2 million, up $226.9 million or 18.7% on FY20 (17.1% on a comparable 52 week basis) • Record Premier R
Slide 12: Peter Alexander – Delivers $100 million sales growth in one year
5 Peter Alexander – Delivers $100 million sales growth in one year 450 Peter Alexander Sales 400 $388 350 300 $288 $248 Sales AUD $m 250 $219 $191 200 $169 $140 150 $122 $101 100 $86 $73 $61 $50 50 - FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Sales Peter Alexander - a unique an
Slide 13: Peter Alexander – Powerful designer brand delivering record results
5 Peter Alexander – Powerful designer brand delivering record results • Record FY21 sales of $388.2 million, up a record $100.0 million or 34.7% on FY20, underpinned by strong LFL growth both in stores and online • Peter Alexander delivered three year sales growth of 77.5% from FY18 to FY21 and over
Slide 14: Peter Alexander – Powerful designer brand delivering record results
5 Peter Alexander – Powerful designer brand delivering record results • The design, sourcing and supply chain teams adapted to the changing times with long term suppliers supporting these altered work practices to accommodate the fast moving environment • Peter Alexander customers enjoy a truly uniq
Slide 15: Apparel Brands – record sales & well positioned to deliver future growth
9 6 Apparel Brands – record sales & well positioned to deliver future growth Apparel Brand Sales $’M • Record Apparel Brands sales of $841.6 million, up 25.3% on FY20 1,000 841.6 • Apparel Brands FY21 LFL sales growth of 18.7% • Apparel Brands delivered three year sales growth of 800 716.8 70.1 670.
Slide 16: Online – record result with FY21 Sales surpassing $300 million
9 7 Online – record result with FY21 Sales surpassing $300 million • Record online sales of $300.7 million, up $80.3 million or 36.4% on a previous record FY20 and contributed Online Sales Growth 20.8% 20.0% 325.0 20.8% of total FY21 sales (FY20: 18.1%) 18.1% 300.7 300.0 • 2013 investment in central
Slide 17: Industry Restructure Accelerating – Online growth accelerating
8 Industry Restructure Accelerating – Online growth accelerating • COVID-19 continues to influence customer shopping behaviours, accelerating shopping preferences to the online channel due to rolling government mandated store closures and global social distancing practices • Premier has continued to
Slide 18: Industry Restructure Accelerating – Maximising channel profitability
8 Industry Restructure Accelerating – Maximising channel profitability • The accelerated customer preference to shopping online has further increased Premier Retail’s focus on each store’s profitability. Premier Retail has closed 158 stores over the past seven years, including 46 stores in the last
Slide 19: COVID-19 impacts on FY21 results
9 COVID-19 impacts on FY21 results • For 52 of the 53 trading weeks in FY21, it was government mandated that Premier Retail temporarily close stores in various regions across Australia, New Zealand, Europe and Asia. This resulted in 50,581 lost retail store trading days • On average, 176 stores were
Slide 20: Smiggle – A powerful global brand delivers record online sales
10 Smiggle – A powerful global brand delivers record online sales • Smiggle delivered record global online sales in FY21 of $52.6 million, up 24.4% on FY20, and contributed 24.7% of total Smiggle FY21 sales (FY20: 16.5%) • Record online sales across all proprietary sites in Australia, New Zealand an
Slide 21: Smiggle – Powerful global brand flourishing where children are back at school
10 Smiggle – Powerful global brand flourishing where children are back at school • Smiggle is a powerful global brand • In countries and markets where schools have reopened under easing COVID-19 restrictions, the brand is flourishing The key to Smiggle’s success is children attending school • In the
Slide 22: Smiggle – Powerful global brand flourishing where children are back at school
10 Smiggle – Powerful global brand flourishing where children are back at school Smiggle International • During FY21, the impact of COVID-19 continued to be particularly severe on a global brand such as Smiggle, with government mandated retail store and school closures for extended periods of time a
Slide 23: Smiggle – Powerful global brand starting to rebound
10 Smiggle – Powerful global brand starting to rebound Smiggle has been strategically positioned for maximum EBIT growth as sales rebound due to the decisions the Group has previously taken to reset Smiggle International’s asset base • Impaired all Smiggle store assets in Asia and Europe in 2H20 • C
Slide 24: COVID-19 impacts on first 7 weeks trading in FY22
911 COVID-19 impacts on first 7 weeks trading in FY22 • The group’s retail store network continues to be impacted by various government mandated store closures. The group has had 661 stores temporarily closed across Australia and New Zealand through the majority of the month of August and into early
Slide 25: Dividends
12 Dividends • The Premier Board remains optimistic about the group’s ability to deliver in the all-important 2nd Quarter as the COVID-19 vaccination roll out across Australia and New Zealand increases, however, also recognises the business is operating in highly uncertain times • The Board also not
Slide 26: Appendix A: Brand by brand performance
Hortmans PREMIER RETAIL Appendix A: BRAND BY BRAND PERFORMANCE
Slide 27: Record FY21 sales of $388.2 million
A Highlights • Record FY21 sales of $388.2 million, up a record $100.0 million or 34.7% on FY20, underpinned by strong LFL growth both in stores and online • Peter Alexander’s unique design led product, combined with the Group’s strategic decision to be in stock for the critical gift giving periods
Slide 28: Record FY21 sales of $315.8 million
A Highlights • Record FY21 sales of $315.8 million, up a record $77.0 million or 32.2% on FY20, underpinned by strong LFL growth both in stores and online • Sales up 48.5% over 3 years from FY18 to FY21 • Online Sales continue to drive overall growth at a significantly higher EBIT margin than the st
Slide 29: FY21 sales of $202.3 million
A Highlights • FY21 sales of $202.3 million up 19.0% on FY20, underpinned by strong LFL growth both in stores and online • Sales up 28.0% over 3 years from FY18 to FY21 • Online Sales continue to drive overall growth at a significantly higher EBIT margin than the store portfolio • Jay Jays has a str
Slide 30: Record FY21 sales of $141.7 million
A Highlights • Record FY21 sales of $141.7 million, up a record $36.5 million or 34.6% on FY20, underpinned by strong LFL growth both in stores and online • Online Sales continue to drive overall growth at a significantly higher EBIT margin than the store portfolio • Portmans has an extremely strong
Slide 31: FY21 sales of $111.6 million
A Highlights • FY21 sales of $111.6 million, up 16.3% on FY20, underpinned by strong LFL growth both in stores and online • Continued improvement in gross margins being delivered through ongoing changes to sourcing strategy • Online Sales continued to grow ahead of the market with this channel deliv
Slide 32: FY21 sales of $70.1 million
A Highlights • FY21 sales of $70.1 million, up 13.6% on FY20, underpinned by strong LFL growth both in stores and online • While Jacqui E continues to be significantly impacted by the temporary exodus of workers from CBD areas during the COVID-19 health crisis, the FY21 sales growth demonstrates the
Slide 33: The key to Smiggle's success is children attending school
A Highlights • The key to Smiggle’s success is children attending school. In countries and markets where schools have re-opened under easing COVID-19 restrictions the brand is flourishing • The brand’s strength has been demonstrated in FY21 with strong LFL sales growth across all states in Australia
Slide 34: Appendix B: Impact of AASB and other information
Appendix B: Impact of AASB 16 and other information FE3 — portmans JUST 33
Slide 35: Appendix: Implementation of lease accounting standard AASB 16
B B Appendix: Implementation of lease accounting standard AASB 16 • The new lease accounting standard AASB 16 was adopted at the start of the FY20 reporting period effective from 28 July 2019 • The implementation of AASB 16 has significantly changed reported results, however the standard does not ha
Slide 36: Premier Investments Limited Profit and Loss impact of AASB 16
Appendix: Premier Investments Limited B B Profit and Loss impact of AASB 16 Profit & Loss Pre AASB16 Pre AASB16 Post AASB16 Post AASB16 53 weeks 52 weeks 53 weeks AASB16 52 week s AASB16 $'M to 31 Jul 2021 to 25 Jul 2020 Var LY to 31 Jul 2021 Impact to 25 Jul 2020 Impact Sales 1,443.2 1,216.3 +18.7%
Slide 37: Premier Retail Profit and Loss impact of AASB 16
Appendix: Premier Retail BB Profit and Loss impact of AASB 16 1,2 Pre AASB16 Pre AASB16 1,2 Post AASB16 1,2 Post AASB16 1,2 53 weeks 52 weeks 53 weeks AASB16 52 weeks AASB16 $'000 to 31 Jul 2021 to 25 Jul 2020 Var LY to 31 Jul 2021 Impact 2 to 25 Jul 2020 Impact 2 Var LY Sales 1,443,174 1,216,316 +1
Slide 38: Premier Retail Significant Items
BB Appendix: Premier Retail Significant Items $'M FY21 Premier Retail EBIT 351.9 Impact of 53rd week (7.9) COVID-19 related rent concessions (19.5) Other Australia and New Zealand holdover rent concessions (10.0) UK Rates temporary Relief (COVID-19) (4.6) UK COVID-19 lockdown grants (4.6) Premier Re
Slide 39: Appendix: Significant and other one-off items notes
BB Appendix Notes regarding significant and other one-off items excluded from Premier Retail underlying results FY21: Employee Expenses - JobKeeper During all COVID-19 temporary store closures, Premier Retail’s focus has been on the health and safety of our teams and the communities in which we oper
Slide 40: Overview of Premier's non-IFRS financial information
B B Appendix Overview of Premier’s non–IFRS financial information • IFRS financial information is financial information that is presented in accordance with all relevant accounting standards. • Non-IFRS financial information is financial information that is presented other than in accordance with al
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