Brait Plc · JSE:BAT
Brait — New Look — Q3 FY2016 Earnings Presentation
24 slides from Brait's earnings presentation, February 2016
Slide 1: Investor Presentation for the 39 weeks ended 26 December 2015
INVESTOR PRESENTATION for the 39 weeks ended 26 December 2015
Slide 2: Key Headlines
KEY HEADLINES ANDERS KRISTIANSEN
Slide 3: Consistent execution of our strategic initiatives continues
3 Consistent execution of our strategic initiatives continues, driving strong performance and further growth in our market share*. Our Menswear standalone stores continue to exceed expectations and we are planning expansion of these in FY17. China expansion continued with 75 stores open at the e
Slide 4: Strategic Update
STRATEGIC UPDATE ANDERS KRISTIANSEN
Slide 5: Our Strategic Initiatives
OUR STRATEGIC INITIATIVES d NAL EXPANSION INTERNATIO PRODUCT DEVELOPMENT ) MENSWEAR PRODUCT MARGIN RATE
Slide 6: Continued commitment to delivering the New Look Brand consistently
6 Continued commitment to delivering the New Look Brand consistently across all markets and channels. Our market share grew by 0.3% to 6.3% and we remain the No.2* Womenswear retailer in the UK. We also continue to grow our online UK Womenswear market share. Our Concept store program delivered a
Slide 7: On track to deliver 85 China stores by March 2016
7 We’re on track to deliver 85 stores by March 2016 and our year to date performance remains strong. We still see positive LFL sales performance from stores trading more than 12 months, our stores deliver strong underlying contribution to profit. Conversion continues to improve as we increase br
Slide 8: International: France, Poland, Germany and Franchise
8 France We have positive LFL sales YTD in particular our new and refurbished stores are performing above expectation. Two new stores opened in Q3 in Meaux and Bordeaux, both performing well. Our local language website continues to surpass expectations. Poland Good progress being made. The
Slide 9: Committed to our multichannel model
9 We remain committed to our multichannel model, offering convenience for customers, across every channel. Strong performance of our own website driven by Growing traffic, +19.4% Q3 (YTD) FY16 versus last year. Orders +27.8% versus last year with an increasing average order value (AOV) +2.5%.
Slide 10: Product development broadening range, choice and value
10 Our product development strives to broaden our range and offer choice and value to exceed our customers expectations. Our Going Out range through the key Christmas trading period saw sales +25% versus last year. Cosmetics and Fragrance ranges also performed strongly through the peak Christmas
Slide 11: A credible Menswear offer is a core growth opportunity
11 25% 3% 0.4% UK market New Look New Look Menswear Menswear Menswear Market mix* Revenue mix Share** A credible Menswear offer continues to be a core growth opportunity. Performance of our Menswear offer across our existing stores grows strongly with our market share by value now 0.4%**. Our 4
Slide 12: Aiming for significant, sustainable Gross Profit Margin improvement
12 We are aiming to deliver significant, sustainable improvements in our Gross Profit Margin. This will be achieved through Better sourcing and product negotiation. A clear price architecture strategy. On-going reduction of Markdown. Review of product related costs. This focus enables al
Slide 13: Christmas 2015
13 CHRISTMAS 2015 ANDERS KRISTIANSEN
Slide 14: The shape of Christmas retailing has changed considerably
14 The shape of Christmas ‘retailing’ has changed considerably with 3 distinct peaks of Black Friday, pre-Christmas week and Sale. • We saw very strong Black Friday sales, followed by a promotional high street with slowing footfall during early December. • A pick up in trading in the final week prio
Slide 15: Financial Review
— me — ‘ath FINAN MIKE IDD - a — IALREVIEW : ’ ’ i LOOK. ' | i > > “%
Slide 16: Revenue has grown £61.8m, or +5.6%
16 Continuing Continuing Operations Operations Revenue has grown £61.8m, or +5.6%, (£73.1m, Q3 (YTD) FY16 Q3 (YTD) FY15 +6.6% in constant currencies), with all aspects of (39 weeks) (39 weeks) our strategy performing well. £m £m Revenue 1,175.3 1,113.5 Gross Profit margin improved by +0.1% suppo
Slide 17: Sales and Underlying Operating Profit
17 Sales* Our UK retail stores see continued benefit from strong conversion, delivering sales growth of £10.0m (+1.2%). Click & Collect next day delivery options helped to drive Own Website sales with growth of £40.2m (+34.7%) along with strong site traffic and conversion. Our online Third Par
Slide 18: Summary Consolidated Cash Flow Statement
18 SUMMARY CONSOLIDATED CASH FLOW STATEMENT Continuing Continuing Operations Operations Cash generated from operating activities Q3 (YTD) FY16 Q3 (YTD) FY15 (39 weeks) (39 weeks) increased by £39.9m (+21.3%), to £227.3m, £m £m driven by a focus on working capital Operating profit 132.9 141.4 manag
Slide 19: Inventory levels ended the period in line with expectation
19 As at As at 26 Dec 15 27 Dec 14 Inventory levels ended the period in line £m £m with our planned expectation though Non current assets 890.2 878.4 increased in part to support our strategic Inventory 153.1 148.8 growth across the UK, E-commerce and Other current assets 96.7 96.1 Third Party E-c
Slide 20: Capital investment aligned to strategic initiatives
20 We continue to closely align our capital investment to support delivery of our strategic initiatives. Q3 (YTD) FY16 Q3 (YTD) FY15 We continue to invest significantly to support our (39 weeks) (39 weeks) £m £m multichannel business in our core UK market. 5 new stores and 7 relocations in the U
Slide 21: Summary & Outlook
SUMMARY & OUTLOOK ANDERS KRISTIANSEN
Slide 22: Our results continue to demonstrate the effectiveness of our strategies
22 Our results continue to demonstrate the effectiveness of our strategies. We continue to be pleased with our progress across all strategic initiatives, especially Menswear and China. Early indications of the recovery in our European business is encouraging. Our early transitional spring prod
Slide 23: Q&A
Q&A ANDERS KRISTIANSEN & MIKE IDDON
Slide 24: FW LOOK
FW LOOK