Brait Plc · JSE:BAT
Brait — Iceland Topco — FY2016 Earnings Presentation
15 slides from Brait's earnings presentation, Jun 10, 2016
Slide 1: Fiscal Year 2016 Audited Results - Iceland Topco Ltd
FISCAL YEAR 2016 AUDITED RESULTS 52 WEEKS ENDED 25 MARCH 2016 ICELAND TOPCO LTD CONSOLIDATED ACCOUNTS 10 JUNE 2016
Slide 2: Key Highlights: The Market
Key Highlights The Market • The IGD recorded like for like sales growth for the market of (1.4%) for the 52 weeks ending 26 March 2016 • Food prices fell by (2.7%) in the year to March 2016 (ONS: Consumer Price Inflation March 2016) • Tesco, Asda and Morrisons have a declining market share (Kantar:
Slide 3: Key Highlights: Iceland
Key Highlights Iceland Full year results based on the audited financial statements for the year ended 25 March 2016 • Turnover down (0.9%) year on year in the fourth quarter with full year turnover down (0.8%) • Fourth quarter LFL % of (2.5%), a 0.6% improvement on the third quarter performance (3.1
Slide 4: Key Highlights: Iceland (cont'd)
Key Highlights Iceland (cont’d) • Fourth quarter Group EBITDA of £43.6m, £1.4m up on last year. Full Year EBITDA of £150.5m, £0.3m up year on year • Fourth quarter Group EBITDA % of Turnover was 7.1%, 0.3% up on last year. Full Year EBITDA % of Turnover of 5.6%, in line year on year • Full year Cash
Slide 5: Fourth Quarter Results versus Third Quarter Outlook
Fourth Quarter Results versus Third Quarter Outlook • Current trading: Like for like sales improved on FY16 quarter 3 performance • Net 1 store will close in FY16 quarter 4 • Power of Frozen and Innovation will continue with more focus on Products and Price • Increased focus on seasonal \ event prom
Slide 6: Fourth Quarter Sales Performance (£m)
Fourth Quarter Sales Performance (£m) FY16 Q4 FY15 Q4 Var Var% Base Estate (LFL) 593.5 608.4 (14.9) (2.5%) New Stores 13.6 6.5 7.1 1.2% Other Group Co’s 5.5 3.2 2.3 0.4% Turnover 612.6 618.1 (5.5) (0.9%) 6
Slide 7: Full Year Sales Performance (£m)
Full Year Sales Performance (£m) FY16 FY15 Var Var% Base Estate (LFL) 2,582.4 2,653.1 (70.7) (2.7%) New Stores 74.4 28.0 46.4 1.7% Other Group Co’s 17.9 15.6 2.3 0.1% Turnover 2,674,7 2,696.6 (22.0) (0.8%) 7
Slide 8: Like for Like Sales by Quarter
Like for Like Sales by Quarter FY15 Q2 FY15 Q3 FY15 Q4 FY16 Q1 FY16 Q2 FY16 Q3 FY16 Q4 0.0% (1.0%) (2.0%) (2.0%) (2.5%) (3.0%) (2.9%) (3.1%) (4.0%) (4.5%) (5.0%) (5.3%) (6.0%) (5.8%) (7.0%) 8
Slide 9: Fourth Quarter Profit & Loss (£m)
Fourth Quarter Profit & Loss (£m) FY16 FY15 Var • Gross profit margin up 0.2% year on year (£1.2m in cash Q4 Q4 Restated terms). This was primarily driven by an improvement in underlying gross margin Group Turnover 612.6 618.1 (5.5) • Admin Expenses (£0.7m) adverse year on year due to Cost of Sales
Slide 10: Full Year Profit & Loss (£m)
Full Year Profit & Loss (£m) • Gross profit margin up 0.3% year on year (£9.0m in FY16 FY15 Var cash terms). This was primarily driven by the Restated improvement in underlying gross margin and cost Group Turnover 2,674,7 2,696.6 (22.0) efficiencies, partially offset by marketing spend Cost of Sales
Slide 11: Fourth Quarter Cash Flow (£m)
Fourth Quarter Cash Flow (£m) FY16 FY15 • Fourth quarter movement in working capital of Var Q4 Q4 (£32.3m), down (£27.6m) year on year driven by timing of supplier payments Group EBITDA 43.6 42.2 1.4 • Year on year increase in capital expenditure in Movement in Working Capital (32.3) (4.7) (27.6) th
Slide 12: Full Year Cash Flow (£m)
Full Year Cash Flow (£m) FY16 FY15 Var • Full year movement in working capital of (£1.7m), down (£40.8m) year on year primarily driven by Group EBITDA 150.5 150.2 0.3 FY15 comparable including significant benefit on supplier payments Movement in Working (1.7) 39.1 (40.8) • Year on year increase in n
Slide 13: Net Debt (£m)
Net Debt (£m) FY16 FY15 Var Cash at Bank and in 164.9 163.6 1.3 hand Debt (885.6) (907.8) 22.2 Finance leases (10.4) (0.8) (9.6) Net Debt (731.1) (745.0) 13.9 Net Leverage 4.9x 5.0x 0.1x 13
Slide 14: Bond Buybacks (Company and related parties)
Bond Buybacks (Company and related parties) Quarter Date Tranche Value (£m) FY16 Q1 Jun ’15 FRN 10.0 FY16 Q1 Jun ‘15 SSN 7 Yr 6.25% 5.0 FY16 Q4 Feb ‘16 SSN 7 Yr 6.25% 10.0 Gross value 25.0 In addition, the MC Walker 2008 Trust purchased £550k nominal value of the SSN 7 Yr 6.25% in FY16 Q4 We and our
Slide 15: Outlook
Outlook • Current trading: Like for like sales to date broadly in line with FY16 quarter 4 performance • Net 4 stores will open in FY17 quarter 1 (4 Food Warehouse, 2 Iceland, (2) Iceland closures) • Power of Frozen and Innovation will continue… • Increased Trading initiatives • Launch of new TV adv