SPD Prelim 2014 presentation Final

Transcription

SPORTS DIRECT INTERNATIONAL PLC
Preliminary Results Presentation
For the 52 weeks ended 27 April 2014
Thursday 17 July 2014
Dave Forsey
CHIEF EXECUTIVE
FY14: Group Highlights
•
•
•
•
•
•
•
•
•
Group Revenue up 23.8% to £2,706m, largely driven by
growth in Sports Retail division
Sports Retail like for like stores gross contribution
increased by 10.5%
Further growth in online revenue of 26.8% - now
representing 17.1% of total Sports Retail sales (FY13:
15.0%)*
Underlying Group EBITDA (pre scheme costs) up 15.0%
to £331.1m
Reported profit before tax up 15.6% to £239.5m
Underlying free cash generation of £277.2m
Accelerated overseas expansion with acquisitions in
Austria and the Baltics, as well as 10 new store openings
Continued investment in inventory and acquisitions while
maintaining a strong balance sheet
Post year end the Group signed a new £688m committed,
unsecured revolving credit facility
* Excluding wholesale sales and revenue in EAG and SIG. Including EAG and SIG retail sales, online revenue
represented 15.1% of Sports Retail turnover
SPORTS DIRECT INTERNATIONAL PLC / Preliminary Results Presentation / Thursday 17th July 2014
3
FINANCIAL REVIEW
FY14: Group Revenue Bridge
+49.4%
+4.1%
£2,706m
+26.8%
Revenue (£m)
+23.6%
£2,186m
•
Sports Retail growth includes the acquisition of EAG and SIG
•
Premium Lifestyle growth includes a full year of Republic, which was acquired in February 2013
(1) Includes Wholesale and Other
5
FY14: Sports Retail Overview
Sports Retail Gross Margin *
Sports Retail Revenue
2,400
Online
Stores *
£2,274m
2,200
43.5
£335m
2,000
43.0
£264m
1,600
1,400
42.9
42.5
1,800
£1,939m
Gross Margin (%)
Revenue (£m)
£1,833m
43.2
42.0
41.5
41.2
41.4
41.0
40.3
40.5
40.9
40.3
40.0
1,200
FY'11
£1,569m
H1'12
FY'12
H1'13
FY'13
H1'14
FY'14
1,000
•Gross margin increase of 260 bps year on year
800
FY13
•
FY14
Online revenue growth of 26.8%
* Includes Wholesale and Other
FY14 like-for-like Sports Retail stores only gross contribution: +10.5% (2013: +10.6%)
6
FY14: Sports Retail Operating Costs
FY14
(£m)
FY13
(£m)
Change
(%)
Store Wages
211
154
+37.0
Premises Costs
193
145
+33.1
Other Retail costs
246
186
+32.8
6
(5)
+220.0
Sports Retail Operating Costs
656
480
+36.7
Sports Retail Underlying EBITDA pre associates
319
259
+23.2
2
1
+100.0
321
260
+23.6
Operating costs (currency impact)
Associates (Heatons & others)
Sports Retail Underlying EBITDA
7
FY14: Premium Lifestyle(1)
FY13
• July 2012: acquired 51% of Flannels
• February 2013: acquired certain assets of Republic
FY14
(£m)
FY13
(£m)
Change
(%)
250
£214.1m
200
Pulp
Delima
Cruise
Revenue - £m
FY14
• May 2013: acquired remaining 20% of Cruise
• July 2013: acquired 51% of Pulp, a six store retail fashion chain
£143.3m
Flannels
Delima
Cruise
Republic
150
Revenue
Gross margin
Gross margin %
214.1
143.3
+49.4
86.3
62.7
+37.6
40.3%
43.8%
100
Store Wages
(25.6)
(17.6)
+45.5
Premises Costs
(50.0)
(29.0)
+72.4
Other Premium Lifestyle Costs
(31.1)
(15.1)
+106.0
(106.7)
(61.7)
+72.9
(20.4)
1.0
-
Premium Lifestyle Operating Costs
Underlying EBITDA
Flannels
Republic
50
USC
USC
0
FY13
FY14
• The operating loss includes approximately £15m of non-recurring costs within Republic
(1) FY13 Premium Lifestyle comparative figures now include Republic, previously included within Wholesale and Other.
8
FY14: Brands Division
250
£209.0m
Revenue (£m)
200
30.7
£217.5m
32.3
150
100
178.3
Licensing
185.2
Wholesale
50
0
FY13
FY14
• Revenue: up 4.1%
– Licensing: up 5.2%
– Wholesale: up 3.9%
• Wholesale margin: 33.2%
– Down 220 bps
• Licensing:
– FY14: 84 deals completed / contractual minimum royalties of $50.7m over the life of the contracts
9
FY14: Brands Operating Costs
FY14
(£m)
FY13
(£m)
Change
(%)
Wages
22.9
25.2
-9.1
Advertising & promotion
15.0
17.3
-13.3
Other Brands Costs
25.2
24.1
+4.6
Total Brands Operating Costs
63.1
66.6
-5.0
Brands Underlying EBITDA
30.2
27.0
+11.9
• New acquisitions include: Gelert
• Decrease in operating costs largely due to the integration of Firetrap (FY14: £2.2m v £12.5m of costs in FY13)
10
FY14: Underlying EBITDA Bridge
+23.6%
UNDERLYING EBITDA (£M)
340
(£21.4m)
-46.2%
+12.3%
330
320
(£11.9m)
£3.2m
£61.4m
310
300
290
£331.1m
£319.2m
280
270
£287.9m
260
250
FY13 pre Share
Schemes' non-cash
charges
Sports Retail
Premium Lifestyle
Brands
FY14 pre Share
Schemes' non-cash
charges
•
Sports Retail growth includes the acquisition of EAG and SIG
•
Premium Lifestyle includes approximately £15m of non-recurring costs within Republic
Share Schemes'
non-cash charges
FY14
11
FY14: PBT / PAT / EPS
FY14
(£m)
FY13
(£m)
Change
(% )
Underlying EBITDA (pre share scheme)
331.1
287.9
+15.0
Bonus share scheme charge
(11.9)
(22.1)
-46.2
Depreciation (excl. impairment)
(63.7)
(52.6)
+21.3
(7.8)
(6.6)
+18.2
1.6
1.5
+6.7
Underlying PBT
249.3
208.1
+19.8
Underlying Taxation
(61.7)
(55.3)
+11.5
Underlying Profit after Tax
187.6
152.8
+22.8
585,514
568,972
32.1p
26.9p
Interest
Investment Income
Number of shares (000s) (1)
Underlying Basic Earnings per Share
+19.3
(1) The weighted average number of shares includes the impact of the vesting of 23.5 million shares in August and October
under the 2009 Employee Bonus Share Scheme and the Executive Bonus Share Scheme respectively.
12
FY14: Depreciation & Amortisation
FY14
(£m)
FY13
(£m)
Change
(% )
49.7
37.0
+34.3
2.2
2.1
+4.8
51.9
45.9
+13.1
Premium Lifestyle
5.4
1.9
+184.2
Brands
6.8
7.0
-2.9
64.1
54.8
+17.0
Sports Retail - Stores, warehouse and amortisation of goodwill
Sports Retail - Change in estimated useful life – fixtures &
fittings
Total Sports Retail
Total
FY13: The useful life of fixtures and fittings was reduced from 8 years to 7 years.
FY14: The useful life of fixtures and fittings was reduced from 7 years to 6 years
FY15: The useful life of fixtures and fittings will be reduced from 6 years to 5 years, and the depreciation policy will be
changed from reducing balance to straight line
13
FY14: Taxation
FY14
(£m)
FY13
(£m)
239.5
207.2
55.1
49.7
4.9
3.8
Other differences
(0.2)
2.0
Effective tax
59.8
55.5
25.0%
26.8%
Reported PBT
Standard rate of corporation tax (1)
Non-qualifying depreciation
Actual effective tax rate
The effective rate for next year is expected to be in the region of 23%.
(1) The standard rate of corporation tax was 23% in FY14 (FY13: 24%)
14
FY14: Cash Flow
FY14
(£m)
FY13
(£m)
EBITDA (pre scheme costs)
Realised (loss)/profit on fx contracts
Taxes paid
331.1
1.8
(55.7)
287.9
2.3
(44.7)
Underlying free cash flow
277.2
245.5
Working capital
Inventory
Debtors / Creditors, other
(54.8)
(55.3)
(102.0)
(29.2)
(144.2)
(4.6)
(20.8)
(48.3)
(7.2)
(47.0)
1.5
(9.7)
(40.1)
(21.7)
(6.1)
(58.0)
(8.8)
Acquisitions (including debt) (1) (2)
Net (purchase of)/proceeds from investments
Purchase of properties (inc. warehouses)
Other Capital expenditure
Purchase of own shares for EBT
Finance costs and other financing activities
(Increase) / decrease in net debt
(1) Acquisitions include EAG, SIG, Yeomans and Gelert
(2) The purchase of EAG included 12 properties with a book value of £67.6 million
15
FY14: Capital Expenditure
FY14
(£m)
FY13
(£m)
Freehold acquisitions
Warehouse and Shirebrook store expansion
New stores (leasehold)
Maintenance capex
Other
13.4
5.2
16.1
11.9
11.0
0.5
20.2
14.8
5.0
2.0
Sports Retail
Premium Lifestyle
Brands
57.6
7.0
4.5
42.5
2.1
5.3
69.1
49.9
-
(0.1)
Proceeds on disposal of Fixed Assets
Net Capital Expenditure
49.8
• FY15: target capital expenditure: c.£90m including commencement of Phase 3 of the Shirebrook extension
16
FY14: Net Debt Bridge
-200
332.9
-150
-100
NET DEBT (£M)
-50
(114.7)
0
(69.1)
50
100
154.0
(55.7)
150
(7.2)
200
250
•
•
•
•
212.0
(144.2)
Net Debt
FY13
EBITDA & FX
Working
capital &
other
Acquisitions
Capital
Expenditure
Interest
Tax
Net Debt
FY14
Investment in working capital, particularly product range and stock availability
Capital expenditure including stores and International
Acquisitions, including EAG and SIG, Yeomans and Gelert
Group recently signed a new £688m committed, unsecured revolving credit facility, which is available until September
2018
17
OPERATIONAL REVIEW
Sports Retail: UK Property
FY14
FY13
•
Square footage has increased to c.4.5m sq. ft. (1)
UK Stores
418
396
•
Continued enhancement of the store portfolio
Openings
32
37
•
FY14: c.300,000 sq.ft of existing space refitted
Closures
10
36
•
Leasehold expiry profile is now 5.1 years (2)
Freehold properties
59
52
SPORTSDIRECT.com fascia
401
376
c. 4.5m
c. 4.0m
•
9 out of the 10 closures in FY14 were because
of relocations into larger and better configured
space
•
Strong trading from stores and flexible deals with
landlords have led to fewer closures than
expected
•
Continue to benefit from the acquisition of the
properties purchased from Mike Ashley in 2012
Retail Area (sq. ft.)
Impact of acquisition of properties from Mike Ashley:
FY14 Proforma
(£m)
FY14 Inc. acquired
MA properties
(£m)
(7.6)
-
3rd party rental income
-
1.9
16.5
25.9
Rental charge (32 stores) (1)
(1)
Due to differing methodologies, this implies a range between 4.25m sq. ft. - 4.75m sq. ft.
EBITDA Contribution
(32 stores)
(2)
Excluding Lillywhites Piccadilly
(1) Assumed rent based on 10% of turnover
19
Targets for FY15 include:
•
Target c.400,000 sq.ft. of existing space to be
refitted
•
Target 30 – 40 store openings, 30% of which
are expected to be relocations
•
Focus on further large format stores in key
markets
•
Continued investment in specialist
performance areas within core stores
•
Lower stock densities and improved visual
merchandising
20
Shirebrook extension - completed
• Extended from 25,000 sq.ft to 57,000 sq.ft.
• Addition of a 9,000 sq. ft. dedicated Nike area, one of
the biggest Nike Marketplace Transformation Projects
• Also includes enhanced football, outdoor, running and
women’s areas.
Glasgow elevation drawing
Oxford Street relocation – completed
• New Oxford Street store opened in May – c.50,000
sq. ft.
• Enhanced in-store concepts
• Collaboration with key suppliers e.g. Nike, adidas and
Puma
Glasgow city centre extension – Autumn 2014
• Existing trades 22,000 sq. ft. over 2 floors.
• Extended total area will be 52,000 sq. ft. over 5 floors.
• Expected to finish redevelopment in Autumn 2014.
Shirebrook
21
Sports Retail: Fitness Division Created
•
Recently took occupation of 13 former LA Fitness sites
•
Aintree sports retail and gym – Autumn 2014
• Planning granted for 40,000 sq.ft. retail space over 2
floors.
• A separate 20,000 sq.ft. dry gym
•
Another two units opening in St Helens and Keighley this
year.
Aintree layout
Aintree image
22
Sports Retail: International Overview
Existing
territories
No. of Stores
•
Belgium
44
Slovenia
15
Portugal
(1)
15
Poland
7
France
6
Holland
6
Cyprus
5
Hungary
4
Slovakia
3
Czech Republic
4
Luxembourg
2
Spain
1
Total
112
Acquisitions
No. of Stores
Austria
52
Germany
3
Estonia (2)
36
Latvia (2)
24
Lithuania (2)
20
European growth continues with the
acquisition of two key subsidiaries:
o
Sports Eybl and Sports Experts Group
(EAG), a sports retailer with stores in
Austria and Germany in June 2013
o
Remaining 49% of EAG acquired in
March 2014
o
Sportland International Group (SIG),
the market leader in the Baltic states of
Estonia, Latvia and Lithuania in August
2013
•
Now active in 19 European countries,
including Iceland and Ireland.
•
c. 3.0m sq. ft. total retail space (5)
Associates
No. of
Stores
Rep. of Ireland (3)
26
Iceland (4)
1
Total
Total
135
(1)
(2)
(3)
(4)
Sports Direct owns a 50.1%
27
stake
stake
stake
stake
(5) Due to differing methodologies, this implies a range between 2.75m sq. ft - 3.25m sq. ft.
23
Sports Stores: Austria Update
•
Remaining 49% equity acquired in March 2014
•
Sports Direct EPOS systems introduced to all
stores
•
Continuing sell through of legacy stock
•
Category led merchandising layouts planned for
Mega Stores, similar to recent UK large format
stores
•
Objective to double the adidas group’s market
share in Austria (excluding Replica products i.e.
Man Utd) within 3 years
•
Investment in stock availability
•
Enhanced logistics capability being developed in
Wels
•
Rebranding of all stores to Sportsdirect.com
•
Austrian website at.sportsdirect.com being
developed
24
Sports Retail: Karrimor Running TV Campaign
25
Marketing: Firetrap TV Campaign
26
Marketing: USA Pro TV Campaign
27
Sports Retail: Online Overview
Overview
Online Sports Sales
Ecommerce
18.0%
•
•
16.0%
•
•
Click & Collect being trialled within USC
Responsive design in progress, giving better user
experience for tablet and mobile devices
Improved Search facility live
Checkout re-design improving flow and online
journey to increase conversion rates
17.1%
£400m
15.0%
£335m
14.0%
11.6%
12.0%
•
•
•
PayPal Express Checkout live
Geo-location facility launched to provide better
experience for International mobile
Mobile visits up from 20% to 25% of all visits to
Sportsdirect.com
Objectives
•
•
•
Planned roll-out of Click & Collect across UK Sports
Direct stores in Autumn/Winter 2014
Overhaul of International domain sites, improve
translation quality and experience
Introduce alternative payment methods, including a
credit facility
SPORTS DIRECT INTERNATIONAL PLC / Interim Results Presentation / Thursday 17th July 2014
£350m
£300m
£264m
10.0%
Mcommerce
£450m
8.0%
£250m
7.0%
£200m
£174m
6.0%
4.0%
£150m
£96m
£100m
2.0%
£50m
0.0%
£0m
FY11
FY12
FY13
FY14
Total Online Sales
% of total Sports Retail
sales *
* Excludes wholesale sales and sales in EAG and SIG. Including EAG and SIG sales, online
sales represented 15.1% of Sports retail sales
28
Premium Lifestyle
•
Sales in existing fascias (excluding Republic and Pulp)
up by 12.8% compared to FY13
•
Consolidation of USC and Republic continues, with 53
former Republic stores converted to USC
•
Supply from major 3rd Party brands still very
challenging
•
Republic brands introduced successfully into USC
stores e.g. Soulcal, Fabric, Crafted
•
Re-launch of Flannels and Cruise websites in FY14
•
Strong year on year growth in online
revenue – +116.5% in USC, +26.6% in
Flannels and +29.8% in Cruise
•
•
•
51 loss-making Republic stores closed and
warehouse transferred into USC facility
Click and collect launched in USC
Flannels head office moved into our office in
Wigan, resulting in operational efficiencies &
cost rationalisation
Store count
Fascia
April 2014
April 2013
USC
90
40
Republic
-
104
Cruise
10
8
Flannels
8
8
Van Mildert
9
10
Others
9
8
Total
126
178
29
Brands: Wholesale
•
Wholesale division revenues of £185.2m were up 3.9%
versus last year
•
The US wholesale business experienced mixed
performance with tough winter trading suppressing
Everlast equipment sales back to 2012 levels
•
Antigua’s licensed products division – notably NFL
branded side-line apparel continues to perform well
•
Additional licenses for UFC and MLS were signed
during the year
•
Wholesale gross margins declined 220 bps to 33.2%
due to the loss of Firetrap independent wholesale
distribution and the clearance of Gelert outdoor stock
post acquisition
•
Investments in advertising and promotional activity
continued at similar levels to previous years (1)
(1) Excluding the impact of Firetrap costs which have now been transferred to a retail
model
30
Brands: Licensing
•
Licensing revenues were up 5.2% to £32.3m in the year to April
2014
•
The Dunlop Slazenger group also remains a key contributor at
£8.8m or 27% of global revenue.
•
Dunlop remains a key focus area for expansion into new
categories, notably automotive accessories across the Americas
and in Europe
•
Middle East region and South East Asia are both now
generating significant license income via retail license deals that
combine the use of the Sports Direct fascia and our Group
brands, with local access to 3rd party branded products relevant
to the local region
•
Licensing model still regarded as the key driver of Brands
division profitability and crucial for the overall growth of the
brands business
•
84 new license agreements, covering multiple brands and
product categories, were signed during the year with minimum
contracted values of $50.7m over the term of the agreements
•
Group has 427 license agreements worldwide across 273
licensees, with contracted minimums of $309m over the
remaining life of the agreements
Kuwait store
31
FY14: Outlook Statement
•
Trading since the year end has been in line with management’s expectation’s
•
Some stronger weeks offset by England’s disappointing World Cup matches
•
Group’s performance continues to benefit from:
• Historic investment in gross margin
• Investment in product range and availability
• Increased operating efficiencies
• Continued optimisation of in-store and web product offer
Very confident of achieving the final EBITDA target of £300m (before share scheme
charges) under the 2011 Employee Bonus Share Scheme
Consistent with previous guidance, we continue to target underlying EBITDA (before
share scheme costs) of £360m for the current period
Group’s success underpinned by delivering exceptional quality and
unbeatable value to our consumers
32
QUESTIONS?
FY14 : Finance and Investment Income
FY14
(£m)
FY13
(£m)
Change
(%)
Bank Interest receivable
0.9
1.1
-18.2
Total finance income
0.9
1.1
-18.2
Dividend income from investments
1.6
1.5
+6.7
Fair value gain on disposal of Financial Assets
5.4
-
-
Total investment income
7.0
1.5
+366.7
34
FY14 : Finance Costs
FY14
(£m)
FY13
(£m)
Change
(%)
Interest on bank loans and overdrafts
7.5
6.6
+13.6
Interest on other loans
0.6
0.6
-
Interest on retirement benefit obligations
0.6
0.5
20.0
11.2
2.0
460.0
19.9
9.7
+105.2
Fair value adjustment to forward foreign exchange contracts
Total finance costs
35
EBITDA
Reported EBITDA/PBT
Realised FX profit
IAS 39 FX fair value adjustment on forward foreign currency
contracts
Fair value adjustments within associates
Bonus share scheme charge
Investment income
Impairment
Exceptional items
Underlying EBITDA / PBT
PBT
FY14
FY13
FY14
FY13
321.0
268.7
239.5
207.2
(1.8)
-
(2.3)
-
(1.8)
11.2
(2.3)
2.0
11.9
331.1
22.1
(0.6)
287.9
-
(0.4)
(5.4)
0.3
5.5
249.3
2.2
(0.6)
208.1
36

SPD Prelim 2014 presentation Final

Transcription

Similar documents

FIX THAT SPORTS BRAIN

17th June 2016 Park Hill School Newsletter

forgive me...june pass sale

MEDIA KIT

play it again sports commons - Liberty Universal Management

things to remember

Quick Facts

ProPer email `Netiquette

Multi Sports trades actively as Permanis CEO

Walter Iooss Jr.