Slide 1: Interim Results FY15
driving stopline Interim Results FY15
Slide 2: Financial Performance, Retail Trading and Strategy, Autocentres Strategy
Financial Performance Andrew Findlay Retail Trading and Strategy Matt Davies Autocentres Strategy Andy Randall Questions
Slide 3: Andrew Findlay, Chief Financial Officer
Andrew Findlay Chief Financial Officer
Slide 4: Financial Highlights
Financial Highlights Group Revenue up 6.8% to £524.1m Retail Gross Margin of 50.6%, down 65bps Profit Before Tax up 10.8% to £49.4m Basic Earnings Per Share up 14.2% to 20.1p Operating Cashflow of £86.1m, funding the acquisition and capex Net Debt down at £70.3m Interim Dividend up 5.8% to 5.5p per
Slide 5: H1 FY15 Retail Revenues
H1 FY15 Retail Revenues Total Retail LFL % Cycling +16.0 Car Maintenance +3.7 Car Enhancement -1.4 Travel Solutions +3.9 Total +6.8 Proportion of Proportion of Online Retail Online Retail Sales Total Retail Sales Growth % % % Home Delivery 7.6 0.9 -28.8% Click & Collect 92.4 11.2 +19.7% Total 100.0
Slide 6: Retail Performance
Retail Performance H1 FY15 H1 FY14 Change £m £m Revenue 451.9 424.0 +6.6% Gross Profit 228.6 217.3 +5.2% Gross Margin 50.6% 51.2% -65bps Operating Costs (178.4) (171.0) +4.3% EBIT 50.2 46.3 +8.4% EBIT Margin 11.1% 10.9% EBITDA 60.2 55.7 +8.1% EBITDA Margin 13.3% 13.1% 6 Notes: All numbers shown are
Slide 7: Gross Margin % Influences
Gross Margin % Influences The Strong Growth Of Cycling In-store Services Third-party Brands Lower Clearance Activity Promoting More Effectively 7
Slide 8: Retail Operating Costs
Retail Operating Costs H1 FY15 H1 FY14 Change £m £m Store Staffing 49.2 46.3 +6.3% Store Occupancy 68.6 70.5 -2.6% Warehouse & Distribution 19.7 16.9 +16.8% Support Costs 40.9 37.3 +9.7% Total 178.4 171.0 +4.3% Depreciation/Amortisation/Impairment 10.0 9.4 8 Notes: All numbers shown are inclusive of
Slide 9: Autocentres Performance
Autocentres Performance H1 FY15 H1 FY14 Change £m £m Revenue 72.2 66.6 +8.4% LFL% +4.4% Gross Profit 46.1 43.3 +6.5% Gross Margin 63.8% 65.0% -124bps Operating Costs (44.5) (41.0) +8.5% EBIT 1.6 2.3 -30.4% EBIT Margin 2.2% 3.5% EBITDA 3.4 3.9 -12.8% EBITDA Margin 4.7% 5.9% 9 Notes: All numbers shown
Slide 10: Cashflow and Net Debt
Cashflow and Net Debt OPERATING CASHFLOW £m FREE CASHFLOW £m NET DEBT £m EBIT 51.2 Operating Cashflow 86.1 Opening Net Debt (99.6) Depreciation/ Amortisation/ 12.9 Capital Expenditure (15.3) Free Cashflow 47.1 Loss On Disposal Employee Share Scheme 1.1 Net Finance Costs (1.6) Dividends (17.7) Workin
Slide 11: FY15 Guidance
FY15 Guidance Retail Gross Margin A decline of 25-75bps Retail Operating Costs c.5-6% Retail Capital Expenditure c.£35m Autocentres EBITDA Up on FY14 Autocentres Capital Expenditure c.£8m Net Finance Costs c.£3.5m to £4.5m Effective Tax Rate 21-22% 11 Notes: All numbers shown are before non-recurrin
Slide 12: Summary
Summary Financial Performance A Significant Top-line Performance From Retail Retail Gross Margins And Operating Costs In Line With Guidance Strong Growth In Profit Before Tax Continued Investment In Retail And Autocentres Strong Cash Generation And Reducing Net Debt To EBITDA Recognising The Importa
Slide 13: Matt Davies, Chief Executive
driviig 2top line Matt Davies Chief Executive
Slide 14: Retail Sales Performance
Retail Sales Performance H1 FY15 H1 FY14 Proportion Of Retail Sales Proportion Of Retail Sales 13.7% 14.2% 38.0% 34.9% 21.7% 23.5% 26.6% 27.4% Cycling* Car Maintenance Car Enhancement Travel Solutions 14 Notes: *H1 FY15 Cycling revenues include those from Boardman Bikes, acquired on 4 June 2014
Slide 15: Performance Highlights
Performance Highlights Car Workshop 3Bs Online Premium Cleaning Tool Fitting Completion Bikes Sales Sales Sales Rate Online UP UP UP UP UP 13% 15% 16% 19% 90% 15
Slide 16: Helping and Inspiring Customers with their Life on the Move
Getting Into Gear Helping and Inspiring Customers with their Life on the Move 16
Slide 17: 130,000 SKUs In-store, Online Or Via The Halfords Mobile App
130,000 SKUs In-store, Online Or Via The Halfords Mobile App Most In-store Orders Delivered Within 90 Minutes 17
Slide 18: The Acquisition of Boardman Bikes
The Acquisition of Boardman Bikes 18
Slide 19: Focusing On Aerodynamics
Focusing On Aerodynamics Selected Stores and Click & Collect Enhancing The Authority Of The Range 19
Slide 20: Our Major Cycle Brands
GO cyclists of every age = halfords drivin stopline 20
Slide 21: - stores fit driving
- stores fit driving to shop 2top line halfords hide des republic
Slide 22: Leveraging Space Harder To Drive Organic Sales
Leveraging Space Harder To Drive Organic Sales Making The Product Range More Relevant To Local Customers Increasing Logical Adjacencies Future Proofing The Product Range 22
Slide 23: Improving Availability Further
Improving Availability Further Platform To Reduce Inventory Levels Reliance On Couriers Reduced 23
Slide 24: Retail Summary
Retail Summary Building A Sustainable Platform Improving Our Auto & Cycling Authority Strategy Progressing In Line With Plan 24
Slide 25: Andy Randall, Managing Director, Halfords Autocentres
Andy Randall Managing Director, Halfords Autocentres
Slide 26: A Core Part Of The Business
A Core Part Of The Business Autocentres Is A Clear And Natural Fit With Supporting Drivers Of Every Car 26
Slide 27: Why I Joined Autocentres
Halfords Explained Why I Joined Autocentres Good Business With Significant Share Potential Clear Growth Opportunities Will Leverage An Improving Halfords Brand Building Trust Will Engage Loyal Customers 27
Slide 28: Building Trust
Building Trust Be first choice for Motorists Give a Leverage the People Who Love Service Halfords Brand that customers and Group capabilities Working On Cars come back for Run a Grand Prix Operation that we are proud of 28
Slide 29: Be First Choice For Motorists
Be First Choice For Motorists Seamless The Digital Customer Experience Journey Simple Clear Pricing Offers 29
Slide 30: Give A Service That Customers Come Back For
Give A Service That Customers Come Back For Industry-leading Pride In Our A Focus On Customer- Customer Service Technical Capability Service Feedback 30
Slide 31: Run A Grand Prix Operation
Run A Grand Prix Operation Consistent Processes Centres To Be Proud Of Next Generation Centres 31
Slide 32: Leverage The Halfords Brand And Group Capabilities
Leverage The Halfords Brand And Group Capabilities Group-wide Common Promotional Product Offers Strategy & Pricing New Product Parts Supply Development 32
Slide 33: We Love Working On Cars
We Love Working On Cars Passionate Colleagues Reward & Who Love Recognise What They Do Biggest Independent Technical Apprentice Training Programme 33
Slide 34: Concept Centres
driving Concept Centres Stop line
Slide 35: Concept Centres
driving Concept Centres Stoplife
Slide 36: Summary
Summary A Core Business With A Right To Win Improved Execution Based On Building Trust Customers & Colleagues At The Heart Of The Strategy The Top Line, Efficiencies and Utilisation 36
Slide 37: Questions
driving stop line juestions
Slide 38: Appendices
driving Appendices
Slide 39: Group Income Statement
Group Income Statement H1 FY15 H1 FY14 Change £m £m Revenue 524.1 490.6 +6.8% Gross Profit 274.7 260.6 +5.4% Operating Costs 223.5 212.8 +5.0% EBIT 51.2 47.8 -7.1% EBIT Margin % 9.8% 9.7% +26bps EBITDA 63.6 59.6 +6.7% EBITDA Margin % 12.1% 12.1% -5bps Net Finance Costs (1.8) (3.2) -43.8% PROFIT BEFO
Slide 40: Group Components
Group Components Retail Autocentres Amortisation Group H1 FY15 £m £m £m £m Revenue 451.9 72.2 - 524.1 Gross Profit 228.6 46.1 - 274.7 Operating Costs (178.4) (44.5) (0.6) (223.5) EBIT 50.2 1.6 (0.6) 51.2 EBITDA 60.2 3.4 - 63.6 Retail Autocentres Amortisation Group H1 FY14 £m £m £m £m Revenue 424.0 6
Slide 41: Group Balance Sheet
Group Balance Sheet H1 FY15 H1 FY14 YOY Change £m £m £m Goodwill and Intangible Assets 357.6 341.0 +16.6 +4.9% Property, Plant & Equipment 93.2 93.3 (0.1) -0.1% Derivative Financial Instruments 2.1 (2.6) +4.7 +180.8% Net Working Capital 16.9 7.5 +9.4 +125.3% Net Debt (70.3) (57.5) (12.8) -22.3% Othe
Slide 42: Capital Expenditure
Capital Expenditure H1 FY15 H1 FY14 £m £m Store Portfolio1 6.9 5.4 Infrastructure Systems 3.0 5.2 Other 1.4 0.9 Retail 11.3 11.2 Autocentres 1.2 2.7 TOTAL 12.5 14.2 Notes: 1) Before capital contributions deferred over the period of the lease 42
Slide 43: Retail Portfolio – H1 FY15 Space
Retail Portfolio – H1 FY15 Space Average Total Average Average Average Ground Trading Space, Mezzanine Leaseable Floor Trading including Trading Space Space1 (sq.ft) Space (sq.ft) Mezzanine (sq.ft) (sq.ft) 9,138 8,122 6,499 3,051 Notes: 1) Ground floor only, including back of house 43
Slide 44: Retail Portfolio – Lease Expiries
Retail Portfolio – Lease Expiries Expiries FY15 13 FY16 16 FY17 22 FY18 17 FY19 13 Total Expiries 81 Average remaining leases (total portfolio): 6.8 years 44
Slide 45: Autocentres Portfolio
Autocentres Portfolio Centres Acquired 223 FY11 230 FY12 250 FY13 283 FY14 303 H1 FY15 298 Average remaining leases: 7.7 years 45
Slide 46: Contact and Newsflow
Contact and Newsflow For further information, please go to ww.halfordscompany.com or contact Craig Marks Head of Investor Relations & Corporate Communications craig.marks@halfords.co.uk Landline: +44 (0)1527 513 113 Mobile: +44 (0)7712 888 807 Next newsflow: 21 January 2015: Q3 Interim Management St
Slide 47: Forward-Looking Statements
Forward-Looking Statements INCLUDED IN THIS PRESENTATION ARE FORWARD-LOOKING MANAGEMENT COMMENTS AND OTHER STATEMENTS THAT REFLECT MANAGEMENT’S CURRENT OUTLOOK FOR FUTURE PERIODS These expectations are based on currently available competitive, financial, and economic data along with our current oper