Slide 1: Kathmandu FY12 Results Presentation
Kathmandu FY12 Results Presentation For personal use only
Slide 2: Contents
Contents For personal use only • Results Overview • Key Line Items • Country Results • Cash Flow, Balance Sheet, Dividend • Growth Strategy Update • FY13 Outlook • Questions 2
Slide 3: Results Overview
For personal use only Results Overview
Slide 4: Results Overview: Highlights
Results Overview: Highlights For personal use only Summary: • Solid result given the difficult economic environment; • 2H FY12 performance significantly improved on 1H FY12 and EBIT up on 2H FY11; • Investment programme lifted. Sales and Margin • Sales growth $41.0m (13.4% above last year); • Same s
Slide 5: Results Overview: Year-On-Year
Results Overview: Year-On-Year For personal use only Results Overview NZ $m*4 FY12 FY11 DIFF $ DIFF % Sales 347.1 306.1 41.0 13.4% Gross Profit 219.5 200.6 18.9 9.4% Gross Profit Margin 63.2% 65.5% Operating expenses (153.0) (129.2) (23.8) 18.4% % of Sales 44.1% 42.2% EBITDA 66.5 71.4 (4.9) (6.9)% E
Slide 6: Results Overview: Half-Year Results
Results Overview: Half-Year Results For personal use only 1H FY12 1H FY11 DIFF $ DIFF % 2H FY12 2H FY11 DIFF $ DIFF % Sales 146.7 127.1 19.6 15.4% 200.4 179.0 21.4 12.0% Gross Profit 92.0 82.2 9.8 11.9% 127.5 118.4 9.1 7.7% Gross Profit Margin 62.7% 64.7% 63.6% 66.1% Operating expenses (75.0) (59.0)
Slide 7: Key Line Items
For personal use only Key Line Items
Slide 8: Sales
Sales For personal use only SALES: +13.4% to $347.1m SALES*1 Australia New Zealand United Kingdom • Sales growth year on year:*2 AU 15.8%, NZ 14.3%, UK (7.7)%. $347.1m $306.1m $7.0m • At constant exchange rates sales $8.2m 2.0% $126.1 growth $44.8m / 14.6%. $245.8m $9.6m $110.3 2.7% 36.3% $215.6m 3.
Slide 9: Same Store Sales Growth: Year History
Same Store Sales Growth: 4 Year History For personal use only AU NZ GROUP 15.7% 14.4% 12.3% 9.2% 6.5% 5.7% 1.9% 1.6% 1.3% 0.8% 0.6% 0.1% FY09 FY10 FY11 FY12 • Same store sales growth 5.7% (7.0% on constant currency basis); *1, 2, 3 • UK sales 7.7% below FY11. 1. Same store sales measurement includes
Slide 10: Same Store Sales Growth: Half Years
Same Store Sales Growth: Half Years For personal use only AU NZ GROUP 18.6% 17.7% 15.8% 14.1% 12.4% 12.7% 12.1% 12.1% 9.9% 8.0% 6.4% 6.5% 6.5% 6.8% 5.2% -4.7% -5.5% -8.3% 1H FY10 2H FY10 1H FY11 2H FY11 1H FY12 2H FY12 • 2H FY12 cycling high YOY growth in 2H FY11, following low base in 2H FY10 • 3 y
Slide 11: Gross Profit Margin %
Gross Profit Margin % For personal use only AU NZ UK GROUP 68.8% 66.7% 65.5% 66.9% 65.5% 64.4% 63.2% 63.2% 62.0% 60.3% 60.6% 57.6% 57.2% 57.4% 55.8% 53.9% FY09 FY10 FY11 FY12 Key reasons for YOY change: SHARE OF BUSINESS (GROSS PROFIT $) • Higher proportion of sales through AU NZ UK Summit Club, and
Slide 12: Cost of Doing Business
Cost of Doing Business For personal use only OPERATING EXPENSES: +18.4% to $153.0m • Operating expenses increase 190bps as % NZ $m FY12 FY11 DIFF $ DIFF % of sales reflects: • Rent costs +100bps; Rent 39.6 31.9 7.7 24.1% • Distribution centres and freight to % of Sales 11.4% 10.4% stores +60bps; • R
Slide 13: Earnings
Earnings For personal use only EBITDA $66.5m, -6.9% EBIT*1 $57.0m, -10.9% NPAT $34.9m, -10.7% EBITDA $m EBIT $m 71.4 64.0 66.5 57.0 54.4 48.5 48.6 43.0 FY09 FY10 FY11 FY12 FY09 FY10 FY11 FY12 22.5% 22.1% 23.3% 19.2% 19.9% 19.7% 20.9% 16.4% EBITDA margin % EBIT margin % NPAT $m*2, 3 39.1 34.9 25.2 1.
Slide 14: Country Results
For personal use only Country Results
Slide 15: Australia
Australia For personal use only SALES: A$166.0m, +15.8% Same store sales growth: +6.5% EBITDA (trading result): A$31.6m, - 6.5% • 6 New Stores opened: A $m FY12 FY11 DIFF ◦ 2 in 1H FY12: Warrnambool, Chatswood (existing store relocated, original store Sales 166.0 143.3 15.8% converted to Outlet); Sa
Slide 16: New Zealand
New Zealand For personal use only SALES: NZ$126.1m, +14.3% Same store sales growth: +9.2% EBITDA (trading result): NZ$30.8m, +0.3% • 4 new stores opened: NZ $m FY12 FY11 DIFF ◦ 3 in 1H FY12: Coastlands, The Palms, and Willis St (existing store relocated, Sales 126.1 110.3 14.3% original store conver
Slide 17: United Kingdom
United Kingdom For personal use only SALES: UK£3.6m, -7.7% Same store sales growth: -7.7% EBITDA (trading result): UK£(1.6)m, -77.8% UK £m FY12 FY11 DIFF • Total operating expenses (excl. depreciation): ◦ FY12 98.3% of sales; Sales 3.6 3.9 (7.7)% ◦ FY11 80.5% of sales. Same store sales growth (7.7)%
Slide 18: Cash Flow, Balance Sheet, Dividend
For personal use only Cash Flow Balance Sheet Dividend
Slide 19: Cash Flow
Cash Flow For personal use only • Capital expenditure $21.8m vs NZ $m FY12 FY11 FY11 $11.9m: NPAT 34.9 39.1 ◦ New stores capex: $14.4m: ◦ 10 new stores; Change in working capital (12.3) (8.5) ◦ 2 expansions; ◦ 2 relocations; Change in non-cash items 10.0 9.2 ◦ In progress stores for FY13 opening. Op
Slide 20: Balance Sheet
Balance Sheet For personal use only • Inventories per store up 21.6%*1 0.8 NZ $m FY12 FY11 $0.591 0.6 $0.486 Inventories 73.3 54.0 $0.483 $0.386 0.4 Property, plant and equipment 41.9 32.8 0.2 Intangible assets 249.1 243.7 0 FY09 FY10 FY11 FY12 Other assets 6.7 5.8 • Inventory per store increase due
Slide 21: Dividend
Dividend For personal use only • NZ 7.0 cents per share final dividend; full year payout NZ 10.0 cents per share. • Payout ratio remains within expected 50 to 60% of NPAT; • AU dividend will be fully franked; • NZ dividend fully imputed; • Record date 12 November 2012, Payment date 22 November 2012.
Slide 22: Foreign Currency
Foreign Currency For personal use only FORWARD HEDGING POSITION FY13 FY14 • Effective US$ hedge rates FY12: ◦ A$/US$ 0.973 FY12 vs 0.852 FY11; A$ / US$ % covered 90%+ 10%+ ◦ NZ$/US$ 0.753 FY12 vs 0.683 FY11. Effective Rate 0.996 1.011 • Forward Hedging Position: ◦ Longest dated hedges September 2013
Slide 23: Growth Strategy Update
For personal use only Growth Strategy Update
Slide 24: Growth Strategy Update
Growth Strategy Update GROWTH STRATEGY UPDATE For personal use only • New stores continue to perform to expectation, and still targeting up to 15 stores per annum • Flagship CBD programme nearly complete • 150 stores targeted for New store Trend towards multi-channel retailing accelerating at same t
Slide 25: Growth Strategy Update (continued)
Growth Strategy Update (continued) For personal use only GROWTH STRATEGY UPDATE • Increase sales through • Total SKU count now likely to remain around current level Enhance product range growth • Range growth and placement focused on assortment range planning and product • Launch new products and al
Slide 26: FY13 Outlook
For personal use only FY13 Outlook
Slide 27: FY13 Outlook
FY13 Outlook For personal use only Sales • New stores in FY13 coming on stream earlier than FY12; • Online sales growth continues – new platform launch delivers improved customer experience in existing markets, and enables us to pursue global sales opportunities. Operating Costs • Lower rate of cost
Slide 28: FY13 Outlook
FY13 Outlook For personal use only Market • Current economic conditions in our view the new normal; • Outdoor category remains resilient; • Competition increasing due to relatively attractive sector. FY13 Earnings • Board and Management remain confident in the Kathmandu business model and on-going g
Slide 29: Appendix – Reconciliation of Country Trading Results
Appendix – Reconciliation of Country Trading Results For personal use only Australia (NZ $m) FY12 FY11 New Zealand (NZ $m) FY12 FY11 Segment profit 29.2 33.1 Segment profit 27.0 27.3 Net interest 2.4 2.4 Net interest 1.8 1.9 Facility fees 0.9 1.2 Facility fees 0.7 1.0 Depreciation 5.9 4.6 Depreciati
Slide 30: Questions
For personal use only Questions