Interim Results. 7 November 2006

Transcription

1 Interim Results 7 November 2006

2 Interim Results Lord Burns Chairman

3 Interim Results Stuart Rose Chief Executive

4 Interim Results Ian Dyson Group Finance Director

5 Group financial highlights Sales 3.9bn, +11% Operating profit* 447.4m, +22% Profit before tax* 405.1m, +32% Adjusted earnings per share* 16.6p, +31% Net cash outflow 33.5m *From continuing operations before asset disposals

6 Group profit before tax m /06 ACTUAL UK INTERNATIONAL M&S MONEY INTEREST 2006/07 ACTUAL

7 Sales General Merchandise Foods 12% 10% 11.7% 10.5% 10.0% 10.9% 9.2% 12% 10% 9.2% 10.9% 10.1% 8% 7.9% 8% 6% 6% 5.8% 4.7% 5.3% 4% 4% 2% 2% 0% 0% Q1 Q2 H1 Q1 Q2 H1 Total Like for like

8 Gross profit TY % LY % Var % Gross profit margin bps GM gross margin bps Foods gross margin bps Full year margin guidance in line with H1

9 Operating costs TY m LY m Var % Retail staffing costs Retail occupancy costs Distribution costs Marketing & related costs Support costs Total before bonus 1, , Bonus Total including bonus 1, , Full year operating costs guidance c.9%

10 International TY m LY m Var % Turnover Owned stores Franchised stores Operating profit Owned stores Franchised stores

11 Cash flow (94.4) 500 (301.3) (99.1) 100 (142.1) (33.5) -100 EBITDA Working capital & similar movements Capex and disposals Interest & Taxation Dividends and share issues Other movements Net Cash Flow

12 Store modernisations Sales and ROI metrics remain strong 4 trial stores continue to materially outperform 2005 openings have gained momentum in H openings performing strongly to date Cost per sq ft guidance remains 80-90

13 Store modernisations Modernised space 10% 35% c70% Work on 2007 stores to commence in January Development of a number of key stores Programme closely linked with property strategy

14 Full year capex m Previous guidance modernisation programme 120 Major store developments 50 Acquisition of Simply Foods 60 Updated guidance At least the same level anticipated for 2007/08

15 Capital structure 30 Sept 06 m 1 April 06 m 1 Oct 05 m Net debt 1, , ,025.5 Pension deficit* 1, Making progress on pension deficit No change to property position Dividend growth * IAS 19

16 Summary Positive sales momentum Further progress on margin Strong profit performance Store modernisation programme delivering Increased focus on investing in the future

17 Interim Results Stuart Rose Chief Executive

18 Same plan Focus/ Drive Product Service Environment Broaden: Stretching the brand e-commerce Overseas Driving our brand and broadening its reach remains our plan

19 Progress continues now driving conversion 2005/ /07 Q1 Q2 Q3 Q4 Q1 Q2 FOOTFALL CONVERSION TRANSACTIONS BASKET SIZE BASKET VALUE SOURCE: Footfall, Internal sales

20 Clothing progress in market share 2 Value Share 1 % pt change Q1 Q2 Q3 Q4 Q1 Q2 2005/ /07 SOURCE: FashionTrak

21 Share gain in all Business Units Value % Volume % Change % Change % Total Clothing & Footwear Womens Lingerie Mens Kids Food SOURCE: Clothing: TNS Worldpanel Fashion: 24 w/e 17 th Sept 2006; Food: Superpanel, Food & Drink: 24 w/e 8 th Oct 2006

22 Driven by Better product Better service Better environment

23 Product Values Architecture Better buying Newness Stock control Listening to our customers

24 Womens

25 Lingerie

26 Mens

27 Childrens

28 Childrens - starting to make progress Sales progress Sep 04 Nov 04 Dec 04 Jan 05 Mar 05 Apr 05 Jun 05 Jul 05 Aug 05 Oct 05 Nov 05 Dec 05 Feb 06 Mar 06 May 06 Jun 06 % on Year Jul 06 Sep M&S BRC ex M&S SOURCE: Internal Analysis - 2 year rolling 52 w/e

29 Home

30 Long term growth in Home continues Sep 04 Nov 04 Jan 05 Mar 05 May 05 Jul 05 Sep 05 Nov 05 Jan 06 Mar 06 May 06 Jul 06 % on Year Sep Sales progress M&S BRC ex M&S SOURCE: M&S and BRC 2 year rolling 52 w/e

31 Technology

32 Food

33 Food continues to outperform Sales progress 10% 8% 6% 4% 2% 0% Sep 04 Nov 04 Dec 04 Jan 05 Mar 05 Apr 05 Jun 05 Jul 05 Aug 05 Oct 05 Nov 05 Dec 05 Feb 06 Mar 06 May 06 Jun 06 Jul 06 Sep 06 % on Yr M&S IGD SOURCE: Internal Analysis - 2 year rolling 52 w/e

34 Food initiatives - revitalising existing space

35 Service Improving store standards Improving availability RFID Mystery shopping Special service areas: Footwear, technology, lingerie

36 Special service areas

37 Property strategy

38 Property strategy Enhance presence in major city centres Extend and add major out of town stores Build presence in retail parks Develop our high street portfolio Accelerate growth of Simply Foods

39 Enhance major city centres

40 Extend and add major Out of Town

41 Build retail park presence

42 Develop high streets

43 Develop Simply Foods

44 Moving ahead on BP

45 What will this mean Net space will grow over the next five years September 06 (million sq ft) 5 Years GM % Food 4.0* % Total % * Excludes BP, Compass & Moto

46 Environment store modernisation

47 e-commerce

48 International

49 Summary Good half year; current trading going well Lots more to do: Delivering better product Delivering better service Pushing ahead on modernisations Executing property strategy Stretching the brand Developing on-line Growing International

50 Interim Results 7 November 2006

51 Contacts Media enquiries: Marks & Spencer Corporate Press Office Clair Foster Olivia Ross Katy Pratt Clare Wilkes Vanessa Rhodes Claire Hoyle Helen Ruby Out of hours number Analyst enquiries: Amanda Mellor: Majda Rainer: