Brait Plc · JSE:BAT
Brait — New Look — FY2016 Earnings Presentation
23 slides from Brait's earnings presentation, Jun 7, 2016
Slide 1: Investor Presentation for the 52 weeks ended 26 March 2016
IN EY IE Oui INVESTOR PRESENTATION for the 52 weeks ended 26 March 2016
Slide 2: FY16 Key Headlines
NEW LOO K FY16 KEY HEADLINES ANDERS KRISTIANSEN |
Slide 3: Key Headlines
KEY HEADLINES OUR FOCUS AND CONSISTENCY IN DELIVERING ON OUR STRATEGY IS REFLECTED IN STRONG FINANCIAL AND OPERATIONAL PERFORMANCE * With the support of our new owners Brait, we have delivered a strong financial performance and made continued progress against our strategic initiatives. * We have dra
Slide 4: Strategic Update
NEW LOOK STRATEGIC UPDATE ANDERS KRISTIANSEN
Slide 5: Our Strategic Initiatives
OUR STRATEGIC INITIATIVES PRODUCT DEVELOPMENT MENSWEAR GROSS PROFIT MARGIN RATE
Slide 6: Brand
BRAND BEING A TRUE BRAND IS KEY TO OUR FUTURE STRATEGY * 91% of female shoppers and 48% of male shoppers recognise the New Look brand and 41% of all UK women shopped with us last year.” * Our market share grew by 0.2% to 6.1% and we remain the no.1 Womenswear retailer in the UK for the under 35s and
Slide 7: Key Strategic International Markets: China
KEY STRATEGIC INTERNATIONAL MARKETS: CHINA CHINA REMAINS A KEY PRIORITY Nie z MARKET TO DRIVE GROWTH VE iy * We still see positive LFL sales performance from stores trading for more than 12 months and our stores deliver strong underlying contribution to profit. * Conversion continues to improve as w
Slide 8: Key Strategic International Markets: RoW
KEY STRATEGIC INTERNATIONAL MARKETS: RoW FRANCE * — Continued positive results from our new and refurbished stores. * Our 4 newest stores are performing particularly well. * 3 loss making stores in France will be relocated to more appropriately sized units, with more planned in later years as lease
Slide 9: UK E-comm orders Clicked & Collected
• • UK E-comm orders of all Click & Collect of these then of all Click & Collect E-commerce orders Online returns are ‘Clicked & Collected’ customers browse make an customers buy when are made in stores made to stores (picked up in store) once back instore additional purchase collecting (FY15:19%) •
Slide 10: Product Development
* Kantar WorldPanel data52 w/e 13 March 2016 (by value). PRODUCT DEVELOPMENT WE SEEK TO DELIVER FASHION KNOW HOW, NEWNESS AND VALUE EVERY TIME ¢ We've installed custom-designed fixtures for our cosmetics and fragrance ranges at over 400 stores, and we are working on an extended range for autumn. * A
Slide 11: Menswear
MENSWEAR 25% 3.4% 0.4% UK market New Look New Look Menswear Menswear Menswear Market mix* Sales mix Share** WE SIGNIFICANTLY GREW OUR MENSWEAR PRESENCE WITH A CONFIDENT AND CREDIBLE OFFER Our Menswear has performed strongly this year at +17%, driven by improved product ranges and our market share by
Slide 12: Product Margin Rate
PRODUCT MARGIN RATE WE ARE AIMING TO DELIVER SIGNIFICANT, SUSTAINABLE IMPROVEMENTS IN OUR GROSS PROFIT MARGIN * Beginning in FY17 we plan to improve Gross Margin and as a result have added a 6th pillar to our strategy. * This will be achieved through: a _ Better sourcing and product negotiation. a A
Slide 13: Corporate Social Responsibility (CSR)
CORPORATE SOCIAL RESPONSIBILITY (CSR) WE PLACE A DETERMINATION TO TRADE ETHICALLY AT THE HEART OF WHO WE ARE AND WHAT WE DO ¢ OurCSRaims are to: a Improve the lives of workers across our supply chain. a Ensure our operations safeguard animal welfare and protect the environment. a Manage the risks po
Slide 14: New Look Financial Review
™ NEW LOOK 9 FINANCIAL 1) REVIEW RICHARD COLLYER
Slide 15: Summary Consolidated Income Statement
SUMMARY CONSOLIDATED INCOME STATEMENT FY16 FY15 (52 weeks) (52 weeks) £m £m Revenue 1,490.6 1,414.5 Cost of sales (705.7) (668.7) Gross profit 784.9 745.8 Gross profit % 52.7% 52.7% Administrative expenses (SG&A) (650.5) (596.9) Operating profit 134.4 148.9 Operating profit % 9.0% 10.5% Operating pr
Slide 16: Sales & Underlying Operating Profit
SALES & UNDERLYING OPERATING PROFIT Sales Growth by Segment FY16 vs. FY15 Sales* £450 eee H New Look UK § New Look International * Our UK retail stores saw strong conversion, delivering sales growth of £8.7m (+0.8%) £35.0m * Own Website sales growth was £43.9m (+27.9%), which £25.0m was driven by st
Slide 17: Summary Consolidated Cash Flow Statement
SUMMARY CONSOLIDATED CASH FLOW STATEMENT FY16 FY15 (52 weeks) (52 weeks) £m £m Operating profit 134.4 148.9 Non cash items 47.4 50.4 Changes in working capital: Decrease / (Increase) in inventories 1.0 (27.8) Increase in trade & other receivables (1.0) (12.3) Increase in trade and other payables 14.
Slide 18: Summary Consolidated Balance Sheet
SUMMARY CONSOLIDATED BALANCE SHEET As at As at 26 Mar 16 28 Mar 15 £m £m Non current assets 910.1 878.8 Inventory 147.8 148.2 Other current assets 113.4 107.4 Current assets (exc cash) 261.2 255.6 Cash 134.5 127.1 Trade payables (114.6) (110.8) Accruals and other payables (97.8) (94.8) Derivatives (
Slide 19: Capital Expenditure
CAPITAL EXPENDITURE WE CONTINUE TO INVEST CAPITAL TO SUPPORT DELIVERY OF OUR STRATEGIC INITIATIVES FYIG FYI5 (52 weeks) (52 weeks) ¢ We've invested in supporting our multichannel £m fm business in our core UK market. Total UK 50.4 49.0 New Space 8.7 2.6 a 8new stores, including 6 Mens standalone sto
Slide 20: Summary & Outlook
NEW LOOK SUMMARY & OUTLOOK ANDERS KRISTIANSEN
Slide 21: Summary & Outlook
SUMMARY & OUTLOOK * Our focus on consistently delivering our strategy is reflected in these results. « We continue to be pleased with our progress across all strategic initiatives, especially Menswear and China. « As widely reported, external market conditions in the UK have been difficult recently,
Slide 22: Q&A
peewee LOOK Q&A ANDERS KRISTIANSEN & RICHARD COLLYER
Slide 23: New Look
NEW LOOK