Summary Financials Strong sales, L4L, margin and profit growth in FY11

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2 Summary Financials Strong sales, L4L, margin and profit growth in FY11 FY11 ($ M) FY10 ($ M) Change Revenue % Net Margin (%) (1) 71.1% 68.5% Total Expenses (%) 49.6% 47.1% Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) % Earnings Before Interest and Tax (EBIT) % EBIT Margin (%) 22.2% 21.9% Net Profit After Tax (NPAT) % Basic Earnings Per Share (EPS) (Cents) % Dividend Per Share (DPS in Cents & Fully franked) Interim Final % Total Like for Like Sales Growth (%) Group +7% +2% % Oroton Ralph Lauren +4% +10% +10% 6% Operating Cash Flow % Net Bank Debt (2) Net Bank Debt to Equity (%) 31.1% 23.3% ROCE (%) (3) 85.3% 81.0% No. of Stores Group stores Oroton stores Ralph Lauren stores 1) (Revenue Cost of sales) / Revenue 2) Cash &Cash Equivalents Bank Overdraft Bank Loans. 3) EBIT / (Total Assets Current Liabilities) 1

3 Group s strategic focus yields EBIT of $36.5M, 14% growth from LY OrotonGroup s strategy achieved positive results in FY11 Multi channel retail innovation Brand development Oroton expansion into Asia Revenue grew 12% to $164.4 M (LY $146.4 M) and strong L4L sales performance achieved of +7% Oroton L4L sales of +4% with increased average transaction levels, continued innovation in product and marketing, and online growth L4L sales of +10% in the Ralph Lauren business as inventory levels l increased, better assortment planning and targeted promotions Overall net margin increased from 68.5% LY to 71.1% Cost of doing business rose to 49.6% of revenue (LY 47.1%) Increase due to investment in long term Oroton expansion and licensee terms EBIT up 14% to $36.5 M (LY $32.0 M) and NPAT up 8% to $24.8 M (LY $23.0 M) FY 11 tax expense back to ~ 30%. FY10 included benefit of investment allowance EPS of 60.8 cents and final dividend declared of 28.0 cps fully franked Total fully franked dividend for year of 50.0 cps (LY 48.0 cps) 2

4 Track record of solid financial performance continued in FY11 Group Revenue $M Group EBIT $M Group NPAT $M 11% % % FY07 FY08 FY09 FY10 FY11 FY07 FY08 FY09 FY10 FY11 FY07 FY08 FY09 FY10 FY11 3

5 Group s return on capital employed at 85% with continued growth in EPS 50.0 cps total fully franked dividend declared in FY11 ROCE % EPS & Dividends 97% % 85% 81% % FY07 FY08 FY09 FY10 FY11 FY07 FY08 FY09 FY10 FY11 Dividend EPS FY07 FY11 CAGR 28% (EPS) Note: ROCE % is EBIT / (Total Assets - Current Liabilities) 4

6 Maintenance capex slowing and inventory increasing to support future growth FY11 FY10 % Change Operating cash flow pre interest + tax ($m) % PP&E ($m) % Capital Expenditure slowed to $6.9 M in FY11 (LY $9.5 M) as refurbishmentprogram mostly complete ORO: 8 new stores and 11 refurbishments; and RL: 1 new factory store and 3 Polo refurbishments Future CAPEX spend now focused on growth Inventory ($m) % Stock Turns (1) 1.8 x 1.9 x Net Bank Debt (2) ($m) Net Bank Debt to Equity 31.1% 23.3% Interest Cover (3) 33 x 49 x Net Assets ($m) % ROA (4) 55.4% 55.4% ROCE (5) 85.3% 81.0% Branded inventory increased to support FY12 growth plans Growth includes ~ 4 new Oroton stores (1 Australia, 4 in Asia) and new product categories and 4 new RL concession stores Aged inventory levels declined Highly branded, non seasonal inventory sells at increased margin Group s stock turn distorted by buying RL stock in line with Northern Hemisphere Group s bank facility increased from $40 M to $60 M to support future plans Net bank debt position of $9.2 M (1) COGS/Average Inventory (2) Cash $ Cash Equivalents Bank Overdraft Bank Loans (3) EBIT / Interest Expense. (4) EBIT / Total Assets. (5) EBIT / (Total Assets - Current Liabilities) 5

7 Oroton launched in Asia and continued online growth Launched Oroton in Asia with encouraging results so far Premium mall locations Good editorial and PR coverage to date Momentum in customer database growth and celebrity interest Strong growth in social media following in Asia Actively looking for new sites as measured rollout continues Opened 8 new Oroton stores 4 new international stores 2 in Singapore, 2 in Malaysia 4 new stores in Australia/New Zealand L4L sales growth of +4% with controlled discounting as we continue to elevate brand, extend product categories and effectively manage channel mix Continued online sales growth of >180% Brand team s focus on interactive marketing and social media is paying off in higher brand awareness internationally and more fashion recognition locally Street style blogger and photographer Tommy Ton used for SS11 campaign shoot Social media Facebook now >50k fans, Polyvore, twitter and Weibu (Chinese social media) also launched Continued price elevation in core bag lines, introduced Oroton shoes and outerwear and launched men s sock category 6

8 Opened 4 new Oroton stores in Singapore and Malaysia Singapore - ION Mall (Orchard Rd) Opened December 2010 Singapore Marina Bay Sands Resort Opened March 2011 Kuala Lumpur - The Gardens Mall (suburbs) Opened May 2011 Kuala Lumpur KLCC Mall in CBD Opened May

9 Oroton Online sales now >6% of total brand sales in line with US retailer levels and with much further potential >5 years experience since launch of Oroton online the group continues to enjoy benefits of a restructuring retail sector Online sales growth of >180% since last year and at >6% of sales is in line with US retailer levels and well ahead of Australian experience at around 2 3% of sales Continue to grow O List membership (customer database) worldwide providing an extremely responsive and cost effective platform for direct marketing efforts Launched Oroton smart phone/ mobile website in Q3 Embedded Oroton online shop in Facebook in Q4, and Facebook fan base now >50,000 Analytical 2 way access to live audience Talking with diverse set of customers globally Active Twitter account, Oroton blog and Chinese social media sites Achieved global PR coverage with latest campaign 8

10 Oroton Marketing focus is global with Asian emphasis to build brand awareness and traffic to new stores 9

11 Ralph Lauren increased conversion rates and average transaction levels Strong L4L sales growth of +10% in FY11 with increasing conversion rates and average transaction levels in a challenging apparel market Trading margin improved driven by more effective discounting, focused buying and range planning Good growth across all categories but particularly strong in women s wear collections Opened one new factory outlet store in Sydney and continued Group s refurbishment program to enhance in store experience Success due to multi channel management & focus on VIP customers through enhanced customer service Grown RL VIP customer database by >65% in FY11 Several VIP marketing events held with fashion parades and celebrity speakers Pink Pony charity support continued with 10 Year Anniversary Strong inventory position i fully stocked din all key categories to drive ambitious sales plan 10

12 FY11 highlights in OrotonGroup s Ralph Lauren business Chatswood Chase Myer Melbourne David Jones Market Street Sydney Birkenhead Point Factory Outlet Sydney 11

13 There were 85 OrotonGroup stores by July 2011 with 4 in Asia and 4 in New Zealand Channel FY10 stores FY11 new stores Total FY11 AU & NZ stores Asia stores 1 st Retail Oroton Concession Factory Total st Retail Polo Concession Factory Total OG Total

14 Trading outlook for FY12 The first 7 weeks of sales in the new financial year have exceeded Group expectations with stronger start than LY to new season launch and mid season sale period in both brands Group committed to strategic focus with overlay of operational discipline, analysis and control Multi channel retail innovation Brand development product and category extension Oroton rollout in Asia Believe overall retail market is restructuring and opportunities abound for those prepared to innovate continuously requires constant reinvention, detailed analysis and tightly controlled distribution and pricing Oroton well positioned with diverse team of highly hl skilled designers, buyers and marketing professionals; strong online sales performance; > 5 years of online experience; organisational and cultural focus on social media; and constant brand and product innovation In store customer service remains critical Group actively managing many channels supporting shorter lease renewals overall and continued online growth Planning 9 new stores with continued focus on securing new Asian store sites 1 Oroton factory outlet opening in Malaysia in November, and a further 3 new Oroton Asian stores planned for late H2 1 new Oroton store domestically and 4 RL women s concessions opening Group has two distinctive, defensible brands and track record of managing business through difficult economic times 13