Premier Investments Limited · ASX:PMV
Premier Investments — FY2008 Earnings Presentation
37 slides from Premier Investments's earnings presentation, Sep 23, 2008
Slide 1: Just Group FY2008 results and update on Premier post-acquisition
For personal use only 23 September 2008 Just Group FY2008 results and update on Premier post-acquisition Highlights • Premier’s successful acquisition of Just Group is transformational for Premier, with Just Group being core to Premier’s ongoing strategy • Just Group achieved a credible result in FY
Slide 2: Capital and Outlook
Capital • Cash of approximately $300 million1 gives Premier significant flexibility to pursue acquisition opportunities, with a focus on 100% ownership of operating businesses in the retail and wholesale segments For personal use only Outlook • Premier continues to believe that it will be a difficul
Slide 3: Update: Just Group and Premier post-acquisition
For personal use only Update Just Group and Premier post-acquisition
Slide 4: Agenda
Agenda For personal use only 1 Just Group Acquisition Outcome 2 Just Group FY08 Results 3 Strategic Review (operations review of Just Group) 4 Premier's Other Strategic Pillars 5 Premier Outlook
Slide 5: Agenda
Agenda For personal use only 1 Just Group Acquisition Outcome 2 Just Group FY08 Results 3 Strategic Review (operations review of Just Group) 4 Premier's Other Strategic Pillars 5 Premier Outlook
Slide 6: Successful Just Group Acquisition
Successful Just Group Acquisition For personal use only Premier's successful acquisition of Just Group is transformational for Premier Premier now owns a suite of quality brands and a powerful underlying retail platform Premier now employs over 6,000 people Premier's shareholder base has gro
Slide 7: Just Group is Core to Premier's Strategy
Just Group is core to Premier's Strategy For personal use only Given the successful acquisition, Premier has three core pillars to its strategy A quality retailer with scaleable A Just Group business model Approximately $300 million cash* available to invest in opportunities which leverage Premi
Slide 8: Agenda
Agenda For personal use only 1 Just Group Acquisition Outcome 2 Just Group FY08 Results 3 Strategic Review (operations review of Just Group) 4 Premier's Other Strategic Pillars 5 Premier Outlook
Slide 9: Just Group is Australia's Leading Fast Fashion Retailer
Just Group is Australia’s Leading Fast Fashion Retailer For personal use only Diverse portfolio of brands with a broad •• geographic coverage JUST GROUP ‘RETAIL MACHINE’ Logistics Supply Chain Integrated infrastructure including an award winning supply chain and outstanding corporate, product and br
Slide 10: Just – FY08 Results
Just – FY08 Results For personal use only Sales of $816.1 million, up 7.0% Gross profit margin up 171bps to 59.3% EBITA $90.2 million, down 5.0%* NPAT $54.6 million, down 11.2%* Earnings per share of 27.1 cents, down 5.6%* Operating cashflow of $85.7m, down 4.5% Total net debt of $95.9
Slide 11: Summary Profit Result
Summary Profit Result For personal use only EBITA Adjusted EBITA of $90.2m, down 5.0%. Includes: 97.4* 100 Mark to market adjustment on 88.3 90.2 90 hedgebook – $3.6m expense at year 94.9 end (LY $1.8m expense) 80 75.3 72.9 82.4* South Africa loss - $1.6m (LY loss 70 $0.3m) 60 USA loss - $2.
Slide 12: Australia & New Zealand
Australia & New Zealand For personal use only Australia New Zealand Total Sales +8.6% +0.9%1 LFL Sales +1.2% -5.7%1 Segment $75.8m2 $5.4m3 PBT -4.4% -37.1% Stores 742 141 Pleasing first half with downturn in second Very weak economic conditions affected all half as consumer sentiment declined wi
Slide 13: New Geographies
New Geographies For personal use only South Africa USA • 26 stores open and sales building well • 3 stores open in California, including the flagship Robertson Blvd store • Team and operations platform now established • “Hard’ launch of business not until October ‘08 • Focus is on securing quality n
Slide 14: Balance Sheet & Hedging
Balance Sheet & Hedging For personal use only Stock turnover of 5.5 times, up from 5.1 in FY07 Inventory Efficient Ongoing focus on stock management Capital expenditure up $6.1million Investing for the Investing in growth via geographic growth, domestic store roll-out Future and enhanced inf
Slide 15: Just Jeans
Just Jeans For personal use only Total sales down 1.9%; LFL sales down 1.2% 269 stores trading at year end – 7 stores opened & 8 stores closed Record sales of denim and Just Shop membership now over 600,000 Just Jeans brand is well positioned, but also most exposed to consumer slowdown
Slide 16: Jay Jays
Jay Jays For personal use only Total sales up 2.8%; LFL sales down 1.0% 246 stores trading at year end – 14 stores opened & 2 closed Consolidation period after record year in FY07 and with consumer slowdown Jay Jays brand has both a strong youth connection and a deep value component
Slide 17: Portmans
Portmans For personal use only Store and Bloom Cosmetics Total sales up 2.0%; LFL sales down 3.4% 132 stores trading at year end – 12 stores opened & 2 closed Underperforming brand within a tough womenswear market Portmans brand repositioning on track with results expected to build through 2
Slide 18: Jacqui E
Jacqui E For personal use only Total sales up 1.7%; LFL sales down 0.6% 108 stores trading at year end – 5 stores opened & 1 closed Solid 2nd half with positive LFL sales and growing VIP database Jacqui E brand continuing to improve and will compete well in FY09
Slide 19: Dotti
Dotti For personal use only Total sales up 37.0%; LFL sales up 18.4% 70 stores trading at year end – 12 stores opened & 3 closed New ranging, marketing and store design delivering great results Dotti brand still performing very well
Slide 20: Peter Alexander
Peter Alexander For personal use only Australian Store front Total sales up 28.7%; LFL sales up 2.3% 23 stores trading in Aus/NZ at year end – 5 opened; 3 stores trading in California, with flagship Robertson Blvd store opened in September Peter Alexander brand remains very strong with further
Slide 21: Smiggle
Smiggle For personal use only Total sales $19.0m; LFL sales up 11.0% 34 stores trading at year end; 20 stores acquired in August – 14 opened Excellent contribution after 11 months of ownership by Just Group Smiggle brand recognition high. Will open more stores, sell on-line and explore inter
Slide 22: Retail Machine
Retail Machine For personal use only New Auckland Distribution Centre opened in September Expanded e-commerce platform Ongoing investment in systems and people
Slide 23: Summary – FY08
Summary – FY08 For personal use only The Just Formula Strategic Focus Areas FY 2008 Progress 1. The best portfolio of Continued brand management A tough 2nd half for the established brands clearly segmented and Smiggle roll out Sales & profit up for Peter Alexander continuously refreshed F
Slide 24: Agenda
Agenda For personal use only 1 Just Group Acquisition Outcome 2 Just Group FY08 Results 3 Strategic Review (operations review of Just Group) 4 Premier's Other Strategic Pillars 5 Premier Outlook
Slide 25: Premier's review of Just Group is underway
Premier's review of Just Group is underway For personal use only During the bid, Premier announced its intention to undertake a detailed and comprehensive review of the assets, strategy and operations of Just Group Just's new Board has specific responsibility for the strategic review The new B
Slide 26: Agenda
Agenda For personal use only 1 Just Group Acquisition Outcome 2 Just Group FY08 Results 3 Strategic Review (operations review of Just Group) 4 Premier's Other Strategic Pillars 5 Premier Outlook
Slide 27: Premier's other strategic pillars: Capital...
Premier's other strategic pillars: Capital... For personal use only Capital balance gives Premier significant flexibility to pursue acquisition opportunities a key competitive strength in the current environment Acquisition focus is on ultimately, 100% ownership of operating businesses ret
Slide 28: ...and People
…and People For personal use only A well credentialed Board Premier's Board combines expertise from across the retail spectrum, with broader commercial expertise Solomon Lew Lindsay Fox Gary Weiss Frank Jones Michael McLeod Henry Lanzer CEO/independent director search underway Premie
Slide 29: Agenda
Agenda For personal use only 1 Just Group Acquisition Outcome 2 Just Group FY08 Results 3 Strategic Review (operations review of Just Group) 4 Premier's Other Strategic Pillars 5 Premier Outlook
Slide 30: Premier's Outlook
Premier's Outlook For personal use only Helicopter view Premier continues to believe that it will be a difficult retail environment for at least FY09 in both Australia and New Zealand Impact on Just Group Just Group trading for the eight weeks since the end of the financial year has been soft, i
Slide 31: Just Group Additional Financial Information
Just Group Additional Financial Information For personal use only Key Operating Metrics Sales Movement in Store Portfolio
Slide 32: Key Operating Metrics
Key Operating Metrics For personal use only FY FY Change 20081 20072 07 to 08 Stores No 885 810 +75 Retail space m2 129,356 119,124 +8.6% Sales $000’s 812,805 759,616 +7.0% Same sales store growth % -0.3 3.5 n/a Gross Profit Margin % 59.3 57.5 +171bps EBITDA $000’s 113,930 114,779 -0.7% EBITA $000’s
Slide 33: Key Operating Metrics – by Half
Key Operating Metrics – by Half For personal use only First Half 1H 1H Change 20081 20072 07 to 08 Sales $000’s 424,834 385,240 10.3% Same sales store growth % 2.6% 1.0% n/a Gross Profit Margin % 59.79% 57.15% 264bps EBITDA $000’s 75,443 65,091 15.9% EBITA $000’s 64,274 55,731 15.3% EBITA Margin % 1
Slide 34: Sales – FY2008
Sales – FY2008 For personal use only Full Year 2008 Sales Sales LFL Sales Stores (AUD) Growth % Growth % Just Jeans 269 220,272 -1.9% -1.2% Jay Jays 246 233,454 2.8% -1.0% Portmans 132 139,621 2.0% -3.4% Jacqui E 108 90,508 1.7% -0.6% Dotti 70 63,059 37.0% 18.4% Peter Alexander 23 46,597 28.7% 2.3%
Slide 35: Sales – 1st Half 2008
Sales – 1st Half 2008 For personal use only 1st Half 2008 Sales Sales LFL Sales Stores (AUD) Growth % Growth % Just Jeans 270 116,456 2.8% 3.8% Jay Jays 244 125,539 8.8% 3.8% Portmans 132 71,954 2.9% -2.2% Jacqui E 108 48,238 0.0% -1.8% Dotti 70 28,456 33.1% 11.3% Peter Alexander 22 23,617 38.6% 5.2
Slide 36: Sales – 2nd Half 2008
Sales – 2nd Half 2008 For personal use only 2nd Half 2008 Sales Sales LFL Sales Stores (AUD) Growth % Growth % Just Jeans 269 103,816 -6.7% -6.1% Jay Jays 246 107,915 -3.3% -6.4% Portmans 132 67,667 1.0% -4.6% Jacqui E 108 42,270 3.8% 1.7% Dotti 70 34,603 40.4% 24.9% Peter Alexander 23 22,980 20.0%
Slide 37: Movement in Store Portfolio
Movement in Store Portfolio For personal use only Closures Openings Expansions Relocations Total New Change in Retail FY08 FY08 FY08 FY08 Sites FY08 Space Just Jeans 8 7 0 7 14 1.5% Jay Jays 2 14 1 6 21 7.9% Portmans 2 12 0 2 14 7.7% Jacqui E 1 5 1 2 8 5.6% Dotti 3 12 0 0 12 16.1% Peter 0 5 0 0 5 31