Christmas 2016/17 Trading and Management Update

Transcription

1 Christmas 2016/17 Trading and Management Update

2 Agenda Christmas trading and strategic financial update 2016 highlights and future initiatives Humphrey Singer Seb James Q&A 2

3 Humphrey Singer Grup Finance Directr

4 Anther successful peak trading perid Christmas trading and strategic financial update Q3 2016/17 revenue Year-nyear Sterling Year-nyear lcal currency Like-frlike Grup weekly sales ( m) Bxing Day UK & Ireland 4% 3% 6% Nrdics 15% 1% (1)% Suthern Eurpe 24% 6% 5% CWS 38% 34% n/a Black Friday Grup 8% 3% 4% Grss margin stable acrss the grup 4

5 Full year 2016/17 guidance Christmas trading and strategic financial update Grup PBT range f 475m t 495m expected fr the full year Full year interest c. 20m Effective tax rate c.25% Capex c. 250m dependent n the timing f prjects Exceptinal cash flws f c. 75m 5

6 Well placed fr the future Christmas trading and strategic financial update Market leading Flexible perating mdel Higher cash cnversin Strng balance sheet Resilient t market vlatility 6

7 Market leading 10bn revenues, strng market psitins Christmas trading and strategic financial update UK electricals shares UK pstpay handset shares Nrdics 7 Electrical data fr 2015/16. Mbile data fr the 12 mnths t Octber Nrdics fr 2015/16 Surces: GfK, Futuresurce, Cnlumin, British Retail Cnsrtium, Amdea, cmpany reprts, DC and supplier estimates

8 Flexible perating mdel UK electricals cst structure Christmas trading and strategic financial update Ability t flex cst structure in the event f a dwnturn Grss margin 24% Marketing 2%, variable Payrll 6%, largely variable Rent & Rates 6%, largely fixed in shrt term Supprt csts 5%, partly variable Discretinary capex 8

9 Flexible perating mdel Prperty ptimisatin N. f stres 2 Jan Jan 2017 Future plan Ireland CPW Ireland Dixns UK CPW UK Dixns N. f UK Dixns stres 2 Jan Jan 2017 Future Plan - Currys PC Wrld Prperty plan prgressing well Christmas trading and strategic financial update 13% (0.9m sq.ft.) reductin in ttal space t 6.6m sq.ft. Incremental capex f 50m, largely in 2016/17 t refit 93 stres Earnings upside 2016/17: Bradly neutral Onging (frm 2017/18): c. 20m - Currys Digital CurrysPCWrld CPW Ttal

10 Flexible perating mdel Managing FX Christmas trading and strategic financial update Pricing n new tech nt cmparable 2,000 LG 55UH850V ARP ( ) 1,800 Price deflatin 1,600 1,400 1,200 1, Mar-16 May-16 Sep-16 Jan-17 Extensive prduct ranges 10

11 Hw d yu like yur tast? Christmas trading and strategic financial update Prices crrect as at 23rd January 2017

12 Higher cash cnversin Christmas trading and strategic financial update Capex c. 200m in 2017/18 Merger csts largely incurred Prperty ptimisatin nearly cmplete Disciplined apprach t capital deplyed 12

13 Strng balance sheet and pririties fr cash Christmas trading and strategic financial update Investing in the cre and services business Grw dividend in line with 3x cver Reducing net debt ver time Tactical acquisitins t enhance capabilities Optimised capital structure, including cash return t sharehlders when apprpriate 13

14 Resilient t market vlatility Increasingly diversified business Christmas trading and strategic financial update Ttal sales f 10bn Less cyclical Mre recurring revenue Grwing higher margin services business CWS Gegraphically diverse 14

15 Well placed fr the future Christmas trading and strategic financial update Market leading Flexible perating mdel Higher cash cnversin Strng balance sheet Resilient t market vlatility 15

16 Seb James Grup Chief Executive

17 Sme achievements in 2016 Cre and synergies Relentless fcus n price, custmer satisfactin and delivery Own The Kitchen rll-ut CPW web platfrm and new stre frmat Implement UK&I prperty plan Grw MVNO Launch f multi-play prpsitins acrss whle estate Same day delivery Rll ut f CPW click and cllect Cmplete SWAS rll-ut Cmplete Nrdics c-branding Cmplete UK warehuse integratin Prgress n systems integratin Cnnected Wrld Services 2016 highlights and future initiatives Execute Sprint JV t manage a targeted 500 stres Extensin f hneybee agreement with US client Deliver n strng pipeline Services Launch f Leeds trial In additin we have: Integrated Simplifydigital and Infcare Signed new clients t hneybee Opened the Jönköping warehuse in Sweden Signed a new value chain services cntract with EE and extensins with TalkTalk and RBS Delivered ur biggest Black Friday and Christmas 17

18 3-in-1 rllut and in-stre initiatives 2016 highlights and future initiatives 19

19 Services rllut in Leeds 2016 highlights and future initiatives Successful launch f phne, including iphne repair prpsitin Launch f Always wrking white gds repair prmise Launch f Knwhw Energy Saver app Re-brand and natinal rllut in summer

20 Carphne Warehuse new stre frmat 2016 highlights and future initiatives Launched tw new frmat Carphne Warehuse stres, 14 mre planned by end f May Mre vibrant and interactive displays Gd uplift in ftfall and cntract cnnectins Perfrmance f accessry ranges particularly strng 21

21 Cre metrics remain strng 125% UK electrical pricing 120% 115% 110% 105% 100% 95% 90% 85% Custmer satisfactin 2016 highlights and future initiatives Q3 13/14 Q3 14/15 Q3 15/16 Q3 16/17 CurrysPCW Peak market shares (%) Carphne CurrysPCW Carphne Nrdics UK pricing mst cmpetitive ever; Nrdics nline pricing alignment largely cmplete Custmer satisfactin at high levels Strng market shares 13/14 14/15 15/16 16/17 13/14 14/15 15/16 16/17 22

22 UK & Ireland initiatives fr the year ahead Supply chain: 2016 highlights and future initiatives Same day delivery extensin Order up t midnight fr next day delivery Shrter delivery slts and mre minutes in the hme Online: Simplified jurneys Enhanced mbile interface e.g. device recgnitin and persnalisatin One-click payment and Applepay check ut Imprved delivery ptins 23

23 UK & Ireland initiatives fr the year ahead 2016 highlights and future initiatives Advanced digital marketing - imprved use f custmer analytics travel time and prpensity t visit and buy use f Ggle Beacn Enhanced multi-channel experience Cmplete the 3-in-1 prgramme, cntinue t intrduce mre supplier shps-in-shp 24

24 Nrdic initiatives fr the year ahead 2016 highlights and future initiatives Cmpletin f Jönköping and ramp up t full utilisatin by summer Extend nline range and delivery ptins; imprve cllect@stre payment functinality; Knwhw in-stre repairs; all t be launched during 2017 State f the art, user-friendly, 3D/VR kitchen planner tl t be launched during the year New B2B nline platfrm t rllut in April 25

25 Suthern Eurpe initiatives fr the year ahead Greece: 38 stres new r refitted, 30 mre t refit 2016 highlights and future initiatives Spain: Launch f new smart hme prpsitin 26

26 Sprint prgress cntinues 2016 highlights and future initiatives 80 stres nw pen acrss five regins Aim t have 120 pen by early summer 27

27 New hneybee custmers and strng pipeline 2016 highlights and future initiatives New cnnected hme partnership with SSE annunced Rllut f hneybee with Sprint nw underway Exciting pipeline acrss diverse sectrs with a number f glbal partners 28

28 It has been a busy 12 mnths 2016 highlights and future initiatives Anther strng Christmas Services already represent 5% f Grup revenues Significant market shares with Leeds trial demnstrating very encuraging Grwing tp-line, maintaining margins NPS scres Integratin bradly cmplete CWS mmentum strng Prperty estate best-in-class with sales transfers in Significant capex deplyed t drive future grwth line with expectatins and 20m f incremental Slwing investment phase will supprt strnger prfit in 2017/18 FCF delivery and we are nt dne yet 29

29 Q&A

30 Appendix

31 Strng earnings grwth Appendix YOY : + 8m + 4m + 4m + 2m + 18m + 5m + 23m (9) 34 m UK & Ireland Nrdics Suthern Eurpe Cnnected Wrld Services EBIT Net finance cst PBT 32

32 Free cash flw 300 Appendix m (112) (16) (15) (44) Headline EBIT Depreciatin & amrtisatin Share f Jint Venture Wrking capital Capital expenditure Taxatin Interest Restructuring Free cash flw 33

33 Balance sheet - Opening Net debt Free cash flw Dividends JV Investment Acquisitins and dispsals Pensin cntributins Currency Translatin Differences Clsing Net debt Appendix (50) (100) m (150) (267) (285) (200) (250) 65 (75) (300) (16) (2) (18) 28 (350) 34

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