SPORTS DIRECT INTERNATIONAL PLC Capital Markets Day Wednesday 9 September 2015
Dave Forsey CHIEF EXECUTIVE
Agenda Welcome and Strategic review Dave Forsey, CEO 12:45 pm Baltics Market Joint Venture Are Altraja and Anti Kalle, Sportland founders 1:00 pm Aintree Aintree Premium Lifestyle Division Dave Forsey, CEO 1:45 pm Outlook and Q & A Senior Management 2:00 pm Refreshments 2:15 pm Shirebrook Warehouse and Retail tour 2:30 pm Coaches depart for Chesterfield 4:00 pm Glasgow SPORTS DIRECT INTERNATIONAL PLC / Capital Markets Day / Wednesday 9 September 2015 3
Group Strategy: Review • Unrivalled depth and breadth of product choice at the best available prices • Continuing roll-out of large format city centre stores • Targeting c. 60 store openings across Sports Retail Aintree Glasgow this year • Continued enhancement and investment in the existing store portfolio Under Armour area: Glasgow SPORTS DIRECT INTERNATIONAL PLC / Capital Markets Day / Wednesday 9 September 2015 4
Group Strategy: Review • Leading European partner with third party brands including Nike, Adidas, Under Armour and Puma • Phase 3 of development of our Shirebrook National Distribution Centre nearing completion Aintree • Further combined gym and retail opportunities in the UK • Successful UK launch of Click and Collect SPORTS DIRECT INTERNATIONAL PLC / Capital Markets Day / Wednesday 9 September 2015 5
Sports Direct Campus, Shirebrook SPORTS DIRECT INTERNATIONAL PLC / Capital Markets Day / Wednesday 9 September 2015 6
Brands: Wholesale • Expected A&P spend FY16 between £10 and £20m • Focus on heritage products within key Group brands • Further develop business in the Americas and Asia • Reduction in operating costs from the consolidation of back office functions Aintree Brands: Licensing • Licensing model still regarded as key driver of Brands Division growth and profitability • Focus on growth in the Americas, Middle East and Asia • Sports Direct Retail licensing continues to grow with 14 stores open in Malaysia and 13 open in the Middle East SPORTS DIRECT INTERNATIONAL PLC / Capital Markets Day / Wednesday 9 September 2015 7
ANTI KALLE (45) Education: BBA Law, University of Tartu 2006 MBA International business, EBS 1995 BBA Economics, Tallinn Technical University 1993 Member of Management Board - Sportland International Group Sportland Eesti AS AS Jalajälg, BC Viimsi MTU SÜKK ARE ALTRAJA (44) Education: MBA International business, EBS1995 BBA Engineering, Estonian Agricultural Academy 1993 Member on Management Board - Sportland International Group Sportland Eesti AS AS Jalajälg FC ELVA MTÜ SÜKK Estoninan Football Association
ESTONIA • TALLINN POPULATION: 1.25M (-10%) POPUL. 430K • CAPITAL: TALLINN (0.4M) SOB 60% • GDP/CAPITA: EUR 12.8K ESTONIA • AV. INCOME: 930 EUR • LANGUAGE: ESTONIAN LATVIA RIGA • POPULATION: 2.0M (-10%) POPUL. 800K • CAPITAL: RIGA (0.8M) LATVIA SOB 80% • GDP/CAPITA: EUR 10.7K • AV.INCOME: 700 EUR • LANGUAGE: LATVIAN LITHUANIA LITHUANIA VILNIUS • POPULATION: 3.0M (-15%) POPUL. 550K • CAPITAL: VILNIUS (0.5M) SOB 50% • GDP/CAPITA: EUR10.8K • AV. INCOME: 650 EUR • LANGUAGE: LITHUANIAN
BRANDS & CONSUMER MACRO MARKETPLACE CATEGORIES ▪ ▪ GROWTH IN BALTICS IS ▪ • NIKE SHARE 30-35% YOUNG CONSUMER MORE SHOPPING IS HAPPENING ▪ HOLDING UP FAIRLY WELL, AND MORE AS “WORLD IN MALLS. SPORTING ADI 15-20% GIVEN THE RUSSIAN CITIZENS” – ATTRACTED BY GOODS & MONOBRAND ▪ THE REST OF BRANDS TURMOIL GLOBAL TRENDS, STUDYING ARE THE MAIN CHANNELS. BELOW 10% ▪ EXPORTS AND INVESTMENTS & TRAVELLING ABROAD. ▪ DIGITAL GROWING, 15% OF ARE AFFECTED BY CURRENT NIKE VOLUMES IN ▪ CATEGORY (E.G RUNNING) ▪ GEOPOLITICAL THE MARKET (MOSTLY BRANDS (E.G. ASICS), HIGH CONSUMERS HIGLY UNCERTAINTY, WHILE CROSS-BORDER) SEASONAL CHANGES (E.G. DIGITILIZED. OVER 50% OF ▪ DOMESTIC DEMAND WINTER) PHONES ARE SDI WITH FIRST STORES. ▪ REMAINS STRONG. SKIS IN WINTER & BIKES IN SMARTPHONES, INTERNET IMPACT PRIMARILY ▪ SUMMER GDP FORECAST FOR 2015 PENETRATION OVER 70% MAINSTREAM SPORT ▪ ▪ ESTONIA – 2.1% STORES, GOLF, MOUNTAIN SPORT, ▪ ▪ RUGBY, ETC ARE VERY SPORTS GROWING BUT ▪ LATVIA – 1.9% POLISH SIZEER OPENED 2 SMALL GENERAL ISSUE OF KIDS STORES IN LIT, FURTHER ▪ LITHUANIA – 2.3% NOT PHYSICALLY ACTIVE EXPANSION UNKNOWN
YOUTH CULTURE SPORT
First Sportland retail Entry to store in Lithuania Finland First NIKE retail Minority participation store in Lithuania Entry to Russia Entry to Ukraine in Russia Exit from Russia First retail store First Sportland in Latvia Exit from Finland retail store Exit from Ukraine Wholesale in Estonia business in Estonia 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Number of stores 6 10 12 19 29 32 64 90 101 120 152 148 106 97 84 88 76 66 66 First Introduction of Nike Introduction of SportsDirect mono-brand store Sportland brand & store Expansion in Latvia via Opening of O’NEILL concept SportsDirect concept Introduction of acquisition of 100% stores shareholder Franchise stores Sports Opening of Introduction of Timberland stores NetoSport concept Expansion in Estonia via acquisition of WestSport stores
29 Estonia Latvia 15 16 Lithuania LATVIA LITHUANIA ESTONIA SIG 40% SIG 45% SIG 45% € 87m € 50m € 43m Others 60% Others 55% Others 55%
Vladas KORSAKOVAS LITHUANIA CEO Sandijs PINKULIS ESTONIA CEO SPORTLAND SPORTLAND SPORTLAND LATVIA CEO 09/2015 Gerd KIILI ANALYTIC Riina VESKIMÄGI OFFICE ASSISTANT OFFICE ASSISTANT OFFICE ASSISTANT Liene GRASMANE Zivile CIUTIENE Leidi LIND NIKE & ADIDAS Alvin KUIMET Full Managment SPORT EQ & BIKES Henri KRUUSEL APPAREL OUTDOOR EQ Marge KAARMA Dima SMIRNOV Indre ZILENSKAITE Rimantas RAVAITIS Nauris DIDRIHSONS PURCHASE DIRECTOR Alvin KUIMET DIRECTOR PURCHASE PURCHASE PURCHASE DIRECTOR DIRECTOR SDI BRANDS OUTDOOR Janno VIILUP Bernardas LAUCIUS ONEILL Jannon VIILUP PURCHASE PURCHASE FOOTWARE ASSISTANT ASSISTANT HELLY HANSEN Deividas MACONKA Kristiana JANSONE Birgit TÕNTS Annika TUISK TIMBERLAND Indrek UIBO SDI STORES SDI STORES SDI STORES SDI STORES STORES, CONCEPTS Remi AARE + Remi AARE + Remi AARE + Remi AARE REATIL SALES, Are ALTRAJA Sandijs PINKULIS OPERATIONS OPERATIONS OPERATIONS Sigitas DAUKAS Anti Kalle & Are Altraja Nelli NILSON SIG Board Of Directors RETAIL RETAIL RETAIL RETAIL OPERATIONS E-COMMERCE Aivars MEZVEVERS TBD VISUAL MERCHANDISING Kristel NEI IN-STORE MARKETING INSTORE MARKETING IN STORE MARKETING Maarja NIGOL Donatas KORSAKOVAS Liga ALKSNE Edita RAGAISIENE Marit FINNIE MARKETING MARKETING MARKETING Sandijs PINKULIS DIRECTOR MARKETING DIRECTOR DIRECTOR DIRECTOR DIGITAL COMMUNICATION Antti ADUR Karel KALJUSTE MARKETING SPECIALIST Jana STRAUTINA CREATIVE DESIGNER Rainer OLBRI SPORT MAKRETING MARKETING ASSISTANT Margus REINTAL Edgars MIEZITIS Kristina VAITIEKIENE ACCOUNTANT CHIEF ACCOUNTANT SEN. ACCOUNTANT Priit PIRKSAAR CONTROLLER Daiva NARKUTE Ieva BETA Inga MEZAVILKA Piret KALLAS FINANCIAL Anne KIUDSOO FINANCIAL FINANCIAL FINANCIAL KANGUR DIRECTOR DIRECTOR DIRECTOR DIRECTOR CFO ACCOUNTANT ACCOUNTANT ACCOUNTANT MÄGI Piret PÕLDMETNS Karina APSITE Margarita NAUMOVIENE HUMAN RESEARCH HUMAN RESEARCH Eneli VEERMÄE BALODE-VASILJEVSKA DEVELOPER Erik TAMBAUR HUDOROZKOV DIRECTOR DIRECTOR ZALAGAITIS Rait KIKKAMÄGI DIRECTOR DIRECTOR TAMBAUR Jevgemi Algirdas Erik IT IT IT IT MAINTENANCE SECURITY & Marek KÕIV DIRECTOR WAREHOUSE LOGISTICS MANAGER CENTRAL LOGISTICS MANAGER METSALU BEKERIS Margus Marius BOCAROVAS Jevgenijus
OTHER GLOBAL SPORTSBRANDS EXCLUSIVE DISTRIBUTION RIGHTS sold in SPORTLAND (57% of sales) in the Baltics (43% of sales) 38% 15% 9% 6% 1% 5% 1% 4% 8% 3% 10%
HIGH SPORT FASHION LOW
Pioneering the • Accelerate • Baltic Sports 1. Sports Direct Group growth of Market brands to the Baltics international development operations 2. Big Box stores in the Adopt Digital • Baltics Identify partners • Technologies to in new territories attract consumers 3. Establish Sportland in-store & media online operations Best in class • utilising Sports Direct Logistics Support Innovative • infrastructure Consumer Promote Group • engagement at the Owned Brands Sports Events & Clubs
2013-..... .... -2013 EMOTION BRAND ?? ???? ?? New Brands from SportsDirect PRODUCT PRICE DISCOUNT Casual Sport Casual Sport
PHILOSOPHY Be 1st!
E-TAILER/ E-COMMERCE
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