Burberry Group Plc · LSE:BRBY
Burberry — Deutsche Bank Global Consumer Conference 2012
22 slides from Burberry's conference presentation, June 2012
Slide 1: Deutsche Bank Global Consumer Conference June 2012
DEUTSCHE BANK GLOBAL CONSUMER CONFERENCE JUNE 2012
Slide 2: Angela Ahrendts, Chief Executive Officer
ANGELA AHRENDTS — CHIEF EXECUTIVE OFFICER
Slide 3: Further Progress in FY 2012
FURTHER PROGRESS IN FY 2012 • STRONG FINANCIAL RESULTS – Revenue up 24% – Adjusted PBT up 26% – Net cash of £338m – Full year dividend up 25% • STRONG FOUNDATION – Retail 68% of revenue – Balanced by region – Balanced by product division – Solid operational infrastructure • INVESTING IN GROWTH OPPOR
Slide 4: The Journey to Date
THE JOURNEY TO DATE • SIGNIFICANT INVESTMENT 150% • DIGITAL INNOVATION • BRAND ELEVATION REVENUE 124% ADJUSTED PBT
Slide 5: Significant Shift to Retail
SIGNIFICANT SHIFT TO RETAIL LICENSING: 6% 34% GROWTH LICENSING: 11% WHOLESALE: 26% 39% GROWTH RETAIL: 43% WHOLESALE: RETAIL: 68% 46% 300% GROWTH FY 2006 REVENUE £743M FY 2012 REVENUE £1,857M GROWTH 2006 TO 2012
Slide 6: Increased Exposure to Growth Markets
INCREASED EXPOSURE TO GROWTH MARKETS ROW: 6% 696% GROWTH ROW: 2% EUROPE: 32% ASIA PACIFIC: ASIA PACIFIC: 37% 189% GROWTH EX SPAIN 22% 351% GROWTH EUROPE: 29% AMERICAS: 27% SPAIN: 20% AMERICAS: 25% 144% GROWTH FY 2006 RETAIL/WHOLESALE REVENUE £662M FY 2012 RETAIL/WHOLESALE REVENUE £1,748M GROWTH 2006
Slide 7: Balanced Product Mix
BALANCED PRODUCT MIX CHILDRENS: 4% 287% GROWTH CHILDRENS: 3% MENS: 24% 99% GROWTH NON-APPAREL: 39% MENS: NON-APPAREL: 264% GROWTH 31% 28% WOMENS: 38% WOMENS: 33% 134% GROWTH FY 2006 RETAIL/WHOLESALE REVENUE £662M FY 2012 RETAIL/WHOLESALE REVENUE £1,748M GROWTH 2006 TO 2012
Slide 8: Continuing the Journey
CONTINUING THE JOURNEY LEVERAGE THE FRANCHISE INTENSIFY NON-APPAREL ACCELERATE RETAIL-LED GROWTH INVEST IN UNDER-PENETRATED MARKETS PURSUE OPERATIONAL EXCELLENCE
Slide 9: Leverage the Franchise
LEVERAGE THE FRANCHISE BRAND ELEVATION 5% 1% PRORSUM 40% 26% LONDON 73% 55% BRIT FY 2006 FY 2012
Slide 10: Synchronisation
SYNCHRONISATION
Slide 11: Innovative Marketing
INNOVATIVE MARKETING
Slide 12: Leverage the Franchise
LEVERAGE THE FRANCHISE • FOCUS – Menswear • 24% of revenue • 26% underlying growth • Optimise outerwear • Tailoring initiatives • OPPORTUNITIES – Unlocking the potential in our licences • Japan • Global products
Slide 13: Intensify Non-Apparel
INTENSIFY NON-APPAREL 264% REVENUE
Slide 14: Intensify Non-Apparel
INTENSIFY NON-APPAREL • FOCUS – Soft accessories – Shoes • OPPORTUNITIES – Men’s accessories
Slide 15: Accelerate Retail-Led Growth
ACCELERATE RETAIL-LED GROWTH * Mainline Concessions COMPARABLE STORE SALES GROWTH NUMBER OF STORES * EXCLUDES DISCONTINUED STORES IN SPAIN
Slide 16: Accelerate Retail-Led Growth
ACCELERATE RETAIL-LED GROWTH • FOCUS £180 – 200m – Productivity improvements driven by customer service and insight £153m – Leverage investment in burberry.com • OPPORTUNITIES – Execute flagship/cluster strategy – Capex planned at £180-200m in FY 2013 • Including space growth of 12-14% • Focus on la
Slide 17: Invest in Under-Penetrated Markets
INVEST IN UNDER-PENETRATED MARKETS 9.5x REVENUE IN EMERGING MARKETS NUMBER OF STORES IN EMERGING MARKETS EMERGING MARKETS INCLUDE CHINA, MIDDLE EAST, TURKEY, LATIN AMERICA, INDIA, RUSSIA AND EASTERN EUROPE
Slide 18: Invest in Under-Penetrated Markets
INVEST IN UNDER-PENETRATED MARKETS • FOCUS – Further align Chinese operations – Engage with Chinese consumers globally • OPPORTUNITIES – Better serve Latin American and Indian luxury consumers • Compelling demographics • Serve at home and when travelling – Explore new small markets with franchisees
Slide 19: Pursue Operational Excellence
PURSUE OPERATIONAL EXCELLENCE • ACHIEVEMENTS – Reduced the number of vendors – Rationalised DCs from 24 to 3 – Reduced carriers from 30 to 3 1,300bps – Implemented SAP across all major markets – Established global planning function RETAIL/WHOLESALE GROSS MARGIN
Slide 20: Pursue Operational Excellence
PURSUE OPERATIONAL EXCELLENCE • FOCUS – Support business growth in logistics • European hub • Asian hub • China LDC • Digital fulfillment • OPPORTUNITIES – Drive productivity and efficiency through existing infrastructure, optimising • Global assortments • Monthly flow • Replenishment • Inventory
Slide 21: Built Strong Foundation for Sustained Profitable Growth
BUILT STRONG FOUNDATION FOR SUSTAINED PROFITABLE GROWTH — GREAT BRAND, GREAT COMPANY, GREAT GROWTH
Slide 22: Burberry
BURBERRY
Burberry Group — Deutsche Bank Global Consumer Conference 2012 on 6ix