Nick Scali Limited · ASX:NCK
Nick Scali — Macquarie Conference 2017
14 slides from Nick Scali's conference presentation, May 2, 2017
Slide 1: Nick Scali Limited (NCK) Macquarie Conference
Nick Scali Limited (NCK) Macquarie Conference 2nd May 2017 For personal use only 1
Slide 2: Key Points – H1
Key Points – H1-15 For personal use only Sales Sales increased 15.5% to $118.4m (H1-16: $102.5m) Net Margin Margin increased by 200 bps to 62.0% Profit NPAT increased 44.7% to $20.5m (H1-16: $14.1m) Expenses Operating expenses decreased to 36.4% of sales (H1-16: 39.5%) Dividend Interim dividend of 1
Slide 3: Earnings Summary – 1H
Earnings Summary – 1H FY14 For personal use only H1-17 H1-16 Change Half Year Ended 31 December $M $M % Sales Revenue 118.4 102.5 + 16% Sales increase of 15.5% from same store sales growth of 10.1% and the contribution from the Cost of sales (45.0) (41.0) opening of new stores Gross Profit 73.3 61.5
Slide 4: Balance Sheet – 1H
Balance Sheet – 1H FY14 For personal use only Dec 16 Jun 16 Half Year Ended 31 December Strong cash position maintained $M $M Cash and term deposit 37.1 37.0 Inventory up $1.5m mainly due to new stores Receivables 0.6 0.2 Payables down $3.1m from lower balance of customer deposits Inventories 27.3 2
Slide 5: Cash Flow – 1H
Cash Flow – 1H FY14 For personal use only H1-17 H1-16 Operating Cash Flow increased by $8.7m over the prior Half Year Ended 31 December $M $M comparative period primarily due to the sales increase with five new stores opened over the past 12 months and combined with Receipts from customers 129.8 112
Slide 6: 16.7% CAGR FY12-16
For personal use only 16.7% CAGR- FY12-16 6
Slide 7: 30.5% CAGR FY12-16
For personal use only CAGR- FY12-16 30.5% 7 Note: Underlying NPAT has been used in FY13 by adjusting the once off net gain on the surrender of lease of $5.4m (post tax $3.8m
Slide 8: Historic Performance
Historic Performance 250,000 200,000 150,000 100,000 50,000 109,391 FY12 NPAT : Revenue 127,431 FY13 141,442 FY14 155,743 FY15 12.9% 203,045 FY16 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%
Slide 9: Historic Performance
Historic Performance 250,000 200,000 150,000 100,000 50,000 48.8% 109,391 FY12 CODB : Revenue 127,431 FY13 141,442 FY14 155,743 FY15 203,045 FY16
Slide 10: For personal use only
For personal use only 10 Note: Excludes Sofas2Go stores
Slide 11: Store Network Long Term
For personal use only • Store Network Long Term (Australia & New Zealand) - 75 stores • FY17 – 5 stores will open (3 opened in 1st half) • FY18 – Target is to open 7 stores • First New Zealand store to open in December 2017 11
Slide 12: For personal use only
For personal use only • Consumer confidence • Volume of housing sales • Renovations • Stable interest rates • Wealth effect • Population growth 12
Slide 13: For personal use only
For personal use only “Demand for alterations and additions is expected to improve over the next five years, providing an important avenue for industry expansion over the period. Many of the industry’s small-to medium-scale builders are expected to secure renovation work on existing dwellings. A pro
Slide 14: Disclaimer
For personal use only • Nick Scali Limited (the “Company”) advises that the information in this presentation contains general background information about the Company’s activities as at the date of the presentation. It is information given in summary form and is based on information available to the