Australasia’s Leading Specialty Apparel Retailer
Transcript of Australasia’s Leading Specialty Apparel Retailer
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Australasia’s Leading Specialty Apparel Retailer
Citigroup Australia and New Zealand Investment Conference
LondonMarch 2005
Formidable Presence in Shopping Centres
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1,492
0
200
400
600
800
1000
1200
1400
1600
JustGroup
Presence Rivals World’s Best
1,549
431 424
298
0
200
400
600
800
1000
1200
1400
1600
InditexSpain
Gap New LookUK
Next UK
Stores per 50 million people
Continued Sales and Profit Growth
378.8
442.6
559.4
338.5313.0
0
100
200
300
400
500
600
700
2001A 2002A 2003A 2004A 2005 H1
Sale
s $m
SALES
23.1
31.9
49.247.2
39.5
0
10
20
30
40
50
60
70
80
2001A 2002A 2003A 2004A 2005 H1
EBIT
A $
m
EBITA
’01-04CAGR 17.3%
8.2%GROWTH
’01-04CAGR 48.1%
19.6%GROWTH
610.475.0
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Portfolio Focused on Affordable Fast Fashion
Surf Shops
DepartmentStores
DiscountDepartment
StoresDiscountSpecialtyChains
Fashion +
Fashion -
Price - Price +
DepartmentStores
DiscountDepartment
StoresDiscountSpecialtyChains
Focused Segments for Each Brand
40
10
Fashion Casual
JACQUI E
DOTTI
PORTMANS
JUST JEANS
JAY JAYS
PETER ALEXANDER
TAR
GET
AG
E
PRODUCT OFFER
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Solid Result in Just Jeans
Strong Denim 5 Stores Closed Profit Up
TV Commercial – February 2005
Growth Continues in Jay Jays
Strong Growth 20 New Stores Retailer of the Year
Internet Site
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Integration of Dotti on Track
Acquisition Completed in October
16 Stores up from 10 Strong Reaction to Stores and Ranges
Advertorial – March 2005
Continued Profit Growth in Portmans
Increased Fashionability
Net 6 Stores Opened
EBITA Margins Increased
TV Commercial – February 2005
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Outstanding Result in Jacqui E
New Store Refit Excellent Ranges
VIP Mailout – February 2005
5 New Stores
Store Strategy for Peter Alexander
Brand Health Strong 2 Stores Opened in Melbourne
Sydney Stores Opening
Catalogue – Autumn 2005
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Supply Chain Speed is Critical
2 Weeks 4-6 Weeks 4-6 Weeks
12-14 Weeksto DC
Range Reviews
PatternMaking & Placement
Development
Fabric Production
Garment Production
Shipping
OffshoreRe-order Cycle
LocalRe-make Cycle
2-4 Weeks
2-3 Weeks
New Altona Distribution Centre
Record Investment in Retail Machine
• $6m in new POS
• New DC in Altona
• 53 new stores
• 161 stores refurbished
• Ongoing brand support
• Strong people development
• Faster supply chain
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Hong Kong
Shanghai
Ningbo
Nanjing
Hangzhou
Dongguan Shenzhen
Li & Fung
China Sourcing Secure
• 34 years in China
• Li & Fung as agent
• Direct contact with all factories
• 13 key factories with Just Group as major customer
• Counter-seasonal buying
• Pressure on costs, but holding
• Tariffs reduced from 1 January 2005
-$42,18466,33166,331108,515Net Debt ($m)
+4.8x13.2x12.4x8.4xInterest Cover (x)
+0.42x4.93x4.90x4.51xAnnualised Stock Turns
+183bp14.44%13.93%12.61%EBITA Margin (%)
+62bp58.12%58.15%57.50%GP (%)
+46.3%30,86328,01821,097NPAT ($m)
+31.4%47,51144,66636,151EBIT ($m)
+26.7%50,01447,17039,469EBITA ($m)
+19.7%57,68154,83648,169EBITDA ($m)
+11.9%201,346196,861179,968Gross Profit ($m)
+10.7%346,457338,525312,995Sales ($m)
272627No. Weeks
Change05 Adjusted
H12005 Adjusted
H12005
H12004
Key operating Metrics for 20051st Half
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Balanced Portfolio, Profitable Growth
Casual/Youth
Womens
OptimiseCash Generators
DriveGrowth Engines
Develop NextGrowth Options
ExploreNew Concepts
No net new stores
30-50 new stores
60-100 new stores
Ongoing Evaluation
Medium Term Store Growth
Australasia’s Leading Specialty Apparel Retailer
Citigroup Australia and New Zealand Investment Conference
LondonMarch 2005