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n J e a n s k u e a e r y w 2 2 0 5 1 7 1 7 | - - PowerPoint PPT Presentation

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e s u l t s P R r e a l s e u n n t n a A t i o n d e d 2 8 n J e a n s k u e a e r y w 2 2 0 5 1 7 1 7 | T e 2 0 d B a h k r c e a r M P l c 3 2 B r h e a n t d g H

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SLIDE 1

A n n u a l R e s u l t s P r e s e n t a t i

  • n

5 2 w e e k s e n d e d 2 8 J a n u a r y 2 1 7

2 3 M a r c h 2 1 7 | T e d B a k e r P l c

K e e p i n g t h e B r a n d H e a l t h y

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SLIDE 2

FINANCIAL HIGHLIGHTS

Ted Baker Plc Annual Results Presentation 52 weeks ended 28 January 2017 1

SS17 MEET THE BAKERS

28 JAN 2017 £M 30 JAN 2016 £M VAR % Group sales revenue 531.0 456.2 16.4 Profit before tax and exceptionals 65.8 58.7 12.1 Profit before tax 61.3 58.7 4.4 Adjusted EPS 114.0p 100.6p 13.3 Basic EPS 105.7p 100.6p 5.1 Full year dividend 53.6p 47.8p 12.1

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SLIDE 3

Ted Baker Plc Annual Results Presentation 52 weeks ended 28 January 2017 2

INCOME BY CHANNEL

28 JAN 2017 £M 30 JAN 2016 £M VAR % CONSTANT CURRENCY VAR % Retail 400.7 348.4 15.0 9.2 Wholesale 130.3 107.7 20.9 15.9 SALES REVENUE 531.0 456.2 16.4 10.8 Licence income 18.2 14.4 26.8 26.8 TOTAL INCOME 549.2 470.6 16.7 11.3 – Retail sales up 15.0% (9.2% in constant currency) on a 8.5% increase in average square footage – Wholesale sales up 20.9% (15.9% in constant currency) reflecting a good performance from our UK wholesale business and a strong performance from

  • ur North American wholesale business

– Licence income from our territorial and product licences increased by 26.8% to £18.2m

SS17 MENSWEAR

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SLIDE 4

Ted Baker Plc Annual Results Presentation 52 weeks ended 28 January 2017 3

REVENUE BY COLLECTION

28 JAN 2017 £M % OF SALES 30 JAN 2016 £M % OF SALES VAR % Menswear 226.7 42.7 202.1 44.3 12.2 Womenswear 304.3 57.3 254.1 55.7 19.7 SALES REVENUE 531.0 100.0 456.2 100.0 16.4 – Menswear performed well with sales up 12.2%, representing 42.7% of total sales – Womenswear delivered a good performance with sales up 19.7%, representing 57.3% of total sales

SS17 WOMENSWEAR

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SLIDE 5

Ted Baker Plc Annual Results Presentation 52 weeks ended 28 January 2017 4

REVENUE BY TERRITORY

UK & EUROPE 28 JAN 2017 £M 30 JAN 2016 £M VAR % CONSTANT CURRENCY VAR % Retail 279.5 252.5 10.7 8.4 Wholesale 86.1 78.0 10.4 10.4 Sales Revenue 365.6 330.5 10.6 8.8 NORTH AMERICA Retail 103.4 80.6 28.3 13.0 Wholesale 44.2 29.7 48.8 30.7 Sales Revenue 147.6 110.3 33.8 17.8 ASIA Retail 17.8 15.4 15.6 2.6 Wholesale

  • Sales Revenue

17.8 15.4 15.6 2.6 GROUP UK & Europe 365.6 330.5 10.6 8.8 North America 147.6 110.3 33.8 17.8 Asia 17.8 15.4 15.6 2.6 Sales Revenue 531.0 456.2 16.4 10.8 – In the UK & Europe, total sales increased by 10.6% (8.8% in constant currency), due to growth in both retail and wholesale with an increase of 10.7% (8.4% in constant currency) and 10.4% (10.4% in constant currency) respectively. Increased sales to trustees, including our export and license businesses, drove the wholesale sales growth – In North America, total sales increased by 33.8% (17.8% in constant currency) with retail sales up 28.3% (13.0% in constant currency) and sales from our US wholesale business up 48.8% (30.7% in constant currency) reflecting the brand’s increased appeal and recognition – In Asia, total sales increased by 15.6% (2.6% in constant currency) to £17.8m

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SLIDE 6

Ted Baker Plc Annual Results Presentation 52 weeks ended 28 January 2017 5

RETAIL REVENUE

UK & EUROPE 28 JAN 2017 £M 30 JAN 2016 £M VAR % CONSTANT CURRENCY VAR % Stores 218.4 205.7 6.2 3.5 E-commerce 61.1 46.8 30.6 29.8 Retail revenue 279.5 252.5 10.7 8.4 Sales per sq ft 885 869 1.8 (0.8) Average sq ft 246,826 236,685 4.3 ASIA 28 JAN 2017 £M 30 JAN 2016 £M VAR % CONSTANT CURRENCY VAR % Stores 16.4 15.4 6.5 (5.6) E-commerce 1.4

  • Retail revenue

17.8 15.4 15.6 2.6 Sales per sq ft 576 593 (2.9) (14.0) Average sq ft 28,438 25,915 9.7 NORTH AMERICA Stores 93.6 74.0 26.5 11.4 E-commerce 9.8 6.6 48.5 31.2 Retail revenue 103.4 80.6 28.3 13.0 Sales per sq ft 835 784 6.5 (6.1) Average sq ft 112,110 94,496 18.6 GROUP Stores 328.4 294.9 11.4 5.0 E-commerce 72.3 53.5 35.1 32.3 Retail revenue 400.7 348.4 15.0 9.2 Sales per sq ft 848 826 2.7 (3.2) Average sq ft 387,373 357,096 8.5 – In the UK & Europe, retail sales increased despite tough trading conditions and the impact of terrorism in Europe – In North America, retail sales growth was driven by continued expansion despite increased levels of promotional activity in the wider market and a fall in international tourism – In Asia, retail sales increased due to further expansion, however this remains a challenging trading environment

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SLIDE 7

Ted Baker Plc Annual Results Presentation 52 weeks ended 28 January 2017 6

GROSS MARGIN BY CHANNEL

28 JAN 2017 % 30 JAN 2016 % VAR POINTS Retail 66.1 64.8 130bps Wholesale 45.1 43.8 130bps Group 61.0 59.9 110bps – Retail gross margin increased to 66.1% primarily reflecting an improved full price sell through, as well as some foreign exchange benefits – Wholesale gross margin increased to 45.1% principally due to a greater proportion of sales to our trustee partners, which carry a higher margin, as well as some foreign exchange benefits – Group gross margin increased to 61.0%

Retail Gross Margin Wholesale Gross Margin Group Gross Margin

25-Jan-14 Gross margin %

70 65 60 55 50 45 40

28-Jan-17 26-Jan-13 31-Jan-15 30-Jan-16

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SLIDE 8

Ted Baker Plc Annual Results Presentation 52 weeks ended 28 January 2017 7

GROUP INCOME STATEMENT

28 JAN 2017 £M 30 JAN 2016 £M VAR % Revenue 531.0 456.2 16.4 Gross profit 323.7 273.0 18.6 Gross margin 61.0% 59.9% 110bps Operating expenses (273.8) (227.2) 20.5 Licence income 18.2 14.4 26.8 Other operating expense (1.1) (0.8) 36.3 OPERATING PROFIT BEFORE EXCEPTIONAL ITEMS 67.0 59.4 12.9 % of revenue 12.6% 13.0% (40bps) Net finance expense (1.8) (1.4) 26.9 Share of joint venture profit 0.6 0.7 (20.9) PROFIT BEFORE TAX AND EXCEPTIONAL ITEMS 65.8 58.7 12.1 Exceptional items (4.5)

  • PROFIT BEFORE TAX

61.3 58.7 4.4 JAPAN OMOTESANDO: ESPOIR

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SLIDE 9

Ted Baker Plc Annual Results Presentation 52 weeks ended 28 January 2017 8

OPERATING EXPENSES

* Distribution and administrative costs exclude depreciation, payroll, bonus and exceptional costs

– Distribution costs increased in line with expectations by 22.1% (15.8% in constant currency) and as a percentage

  • f sales were 25.8% (2016: 24.6%)

– Administrative costs increased by 26.0% (19.7% in constant currency) due to the growth of central operations and the continued investment in I.T. infrastructure to support our growth – Payroll costs increased by 18.3% (12.2% in constant currency) reflecting investment in the UK and overseas teams to support our growth – Performance related bonus of £nil (2016: £2.7m)

  • Dual runnings costs of £4.0m were

incurred in respect of our new distribution centre and the systems roll-out

KEEPING UP WITH THE BAKERS

28 JAN 2017 £M 30 JAN 2016 £M VAR % CONSTANT CURRENCY VAR % Distribution costs* (137.1) (112.3) 22.1 15.8 Administrative costs* (26.2) (20.8) 26.0 19.7 Depreciation (20.0) (14.9) 34.2 26.2 Payroll (90.5) (76.5) 18.3 12.2 Performance related bonus

  • (2.7)

(100.0) (100.0) TOTAL OPERATING EXPENSES (273.8) (227.2) 20.5 14.3 Operating exp as a % of sales 51.6% 49.8% 180bps

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SLIDE 10

Ted Baker Plc Annual Results Presentation 52 weeks ended 28 January 2017 9

GROUP CASH FLOW

28 JAN 2017 £M 30 JAN 2016 £M VAR £M Cash generated from operations* 86.5 77.5 9.0 Working capital movement (23.1) (21.4) (1.7) Provision movement 2.9

  • 2.9

Interest paid (2.9) (1.4) (1.5) Income taxes paid (10.6) (13.1) 2.5 TOTAL 52.8 41.6 11.2 Capital expenditure (43.8) (31.5) (12.3) Acquisition of freehold

  • (58.0)

58.0 Proceeds of term loan

  • 60.0

(60.0) Repayment of term loan (1.5)

  • (1.5)

Dividends paid (21.7) (18.5) (3.2) Other 0.7 0.6 0.1 Net decrease in cash (13.5) (5.9) (7.6) Opening net cash (24.6) (18.8) (5.8) Exchange rate movement 1.4 0.1 1.3 Closing net cash (36.7) (24.6) (12.1) – Increase in interest paid is largely due to the interest paid on the term loan used to finance the purchase of the UBB in January 2016 – Lower income taxes paid is largely due to accelerated tax deductions on US store openings and refurbishments – Capital expenditure comprises the costs of opening and refurbishing stores, concessions and outlets. It also reflects the fit-out of our new European distribution centre and the on-going investment in business-wide IT systems to support our continued growth

*Excluding working capital movement, interest paid and income taxes paid

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SLIDE 11

Ted Baker Plc Annual Results Presentation 52 weeks ended 28 January 2017 10

GROUP BALANCE SHEET

28 JAN 2017 £M 30 JAN 2016 £M VAR £M ASSETS Intangible assets 24.4 17.2 7.2 Property, plant & equipment 144.4 123.4 21.0 Inventories 158.5 125.3 33.2 Trade & other receivables 59.3 49.3 10.0 Cash & equivalents 21.4 13.3 8.1 Other assets 16.3 11.8 4.5 TOTAL ASSETS 424.3 340.3 84.0 LIABILITIES Trade & other payables (81.0) (61.1) (19.9) Income tax payable (10.3) (8.4) (1.9) Overdraft (58.1) (37.9) (20.2) Term loan (58.5) (60.0) 1.5 Other liabilities (5.9) (0.4) (5.5) TOTAL LIABILITIES (213.8) (167.7) (46.0) NET ASSETS 210.5 172.6 38.0 – Working capital increased by £23.3m to £136.8m. This was mainly driven by an increase in inventories of £33.2m to £158.5m reflecting the growth of our business, stock on hand for wholesale customers and licence partners, and earlier phasing of stock deliveries at the end of the financial period due to the timing of Chinese New Year. Further increases are due to the impact

  • f foreign exchange rates on the

translation of overseas subsidiaries – Property, plant & equipment and intangibles have increased by £28.2m as a result of capital expenditure. Further increases are due to the impact

  • f foreign exchange rates on the

translation of overseas subsidiaries

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SLIDE 12

Ted Baker Plc Annual Results Presentation 52 weeks ended 28 January 2017 11

CAPITAL EXPENDITURE

CAPITAL EXPENDITURE BY REGION 28 JAN 2017 £M 30 JAN 2016 £M VAR £M UK & Europe 6.2 7.5 (1.3) North America 12.8 12.1 0.7 Asia 1.9 1.0 0.9 Central 22.9 10.9 12.0 Acquisition of freehold

  • 58.0

(58.0) TOTAL 43.8 89.5 (45.7)

NEW YORK: WOOSTER ST

– UK and Europe expenditure includes a new outlet in Spain and new concessions across the UK, France, Germany and

  • Spain. There was a relocation of an outlet

in the UK and an extension of the Belgium

  • utlet. A number of concessions in the

UK, France, Ireland and Spain were also refurbished or relocated during the year – US and Canada expenditure includes seven new stores and one new outlet. There was a relocation of a store, and refurbishment of a concession during the year – Asia expenditure includes a new store in China and the relocation of a store in Hong Kong. There were also new concessions in China and Japan – Central expenditure includes the new European Distribution centre, as well as investment in the Microsoft AX business system which continues to be implemented across the Group

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SLIDE 13

Ted Baker Plc Annual Results Presentation 52 weeks ended 28 January 2017 12

WORLD WIDE BRAND SALES (ESTIMATED)

– Estimated world wide brand sales are calculated by converting wholesale sales and licence income to their equivalent retail value – Estimated worldwide brand sales were £1,123.7m of which 41.4% came from overseas sales (compared with 40.4% of Ted Baker sales) – The Ted Baker brand and collections continue to travel well and expand internationally FYE JAN 2017 £M % OF TOTAL FYE JAN 2016 £M % OF TOTAL FYE JAN 2015 £M % OF TOTAL UK 659.0 58.6 613.9 61.1 511.0 63.4 Overseas 464.7 41.4 390.3 38.9 295.3 36.6 ESTIMATED BRAND SALES 1,123.7 100.0 1,004.2 100.0 806.3 100.0 TED BAKER SALES FYE JAN 2017 £M % OF TOTAL FYE JAN 2016 £M % OF TOTAL FYE JAN 2015 £M % OF TOTAL UK 316.6 59.6 291.8 64.0 261.2 67.4 Overseas 214.4 40.4 164.4 36.0 126.4 32.6 SALES REVENUE 531.0 100.0 456.2 100.0 387.6 100.0

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SLIDE 14

Ted Baker Plc Annual Results Presentation 52 weeks ended 28 January 2017 13

LICENSING

– Licence income was up 26.8% to £18.2m (2016: £14.4m), with both territorial and product licences performing well. We saw good performances from our product licensees, in particular childrenswear, eyewear, footwear, homeware, skinwear and suiting – Our licensed stores in the Middle East performed well during the period. During the year we opened our first store in Bahrain and Vietnam and further openings are planned in Australia, Dubai, Kuwait, Lebanon, Mexico, Qatar, Saudi Arabia and Turkey along with our first store in India. In North America, we opened seven further concessions in Mexico and are encouraged by the reaction so far

TED BAKER RUGS

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SLIDE 15

Ted Baker Plc Annual Results Presentation 52 weeks ended 28 January 2017 14

E-COMMERCE

– The performance of our e-commerce business was strong, with sales increasing 35.1% to £72.3m (2016: £53.5m) – E-commerce is now 18.0% of the retail business (2016: 15.4%) – Significant growth has been aided by a continued strong performance in the UK and Europe, North America and Australia, alongside the launch of localised websites in France and Germany offering translated content, product information and localised payments. We also launched online concession businesses in China and Japan – Continued investment in compelling creative content including film, editorials, enhanced product and category pages, and campaign standard product imagery have improved customer engagement and increased conversion. Mobile and social traffic continues to grow rapidly which also assisted the growth – Following the successful launch of a new CRM solution there will be a more detailed focus on customer insight, acquisition and customer retention. This is all supported by new infrastructure, including the continued implementation of Microsoft AX, and will enable further development of our

  • mnichannel services for the future
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SLIDE 16

Ted Baker Plc Annual Results Presentation 52 weeks ended 28 January 2017 15

TED’S BRAND ENGAGEMENT

Ted continues to develop its approach to brand engagement through the creation of highly cohesive and effective brand activities like collection launches, pop up events, window schemes, product films, online editorials, social competitions and customer events that connect all channels both on and

  • ffline. The playfulness of the brand and its wit and humour

permeate everything the brand does, which creates a stronger connection with our different customer groups

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SLIDE 17

Ted Baker Plc Annual Results Presentation 52 weeks ended 28 January 2017 16

OUTLOOK

– Continued challenging trading conditions across our global markets – Further store and concession openings planned in new and established markets – Average retail space to increase by c. 5% – Continued investment in our e-commerce sites to enhance the customer experience – High single digit growth anticipated across our wholesale businesses – New licence stores planned and continued development of product licences to drive licence income – Capex planned to be £35.0m

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SLIDE 18

Ted Baker Plc Annual Results Presentation 52 weeks ended 28 January 2017 17 *Partner stores include stores operated by our Australian joint venture partner. **Square footage excludes partner stores.

STORE DETAIL BEHIND THE OUTLOOK

STORE & CONCESSIONS

PROJECTION

YE JAN 2018 FYE JAN 2017 FYE JAN 2016 FYE JAN 2015 FYE JAN 2014 UK 195 192 185 183 181 Europe 103 95 90 80 68 North America 101 97 90 74 63 Asia 29 26 19 16 15 Partner Stores* 97 80 64 45 35 TOTAL 525 490 448 398 362 GROUP

PROJECTION

YE JAN 2018 FYE JAN 2017 FYE JAN 2016 FYE JAN 2015 FYE JAN 2014 Own Stores 78 75 71 64 58 Concessions 320 307 287 269 252 Outlets 30 28 26 20 17 Partner Stores* 97 80 64 45 35 TOTAL 525 490 448 398 362 CLOSING SQ. FT** 411,933 395,088 377,830 344,898 316,648 AVERAGE SQ. FT** 407,527 387,373 357,096 332,089 303,951 HONG KONG: PACIFIC PLACE

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SLIDE 19

Ted Baker Plc Annual Results Presentation 52 weeks ended 28 January 2017 18

STORE DETAIL BEHIND THE OUTLOOK CONTINUED

KEEPING UP WITH THE BAKERS UK

  • 1 store opening: Oxford
  • 1 store closure
  • 1 outlet opening:

Gloucester Quays

  • 1 outlet relocation:

Bicester

  • 1 airport relocation:

Heathrow T3

  • 2 concession openings

EUROPE

FRANCE

  • 1 store opening:

Paris Les Quatre Temps

  • 2 concession openings
  • 1 concession closure

GERMANY

  • 3 concession openings
  • 1 concession closure

NETHERLANDS

  • 1 outlet opening:

Holland Roermond

  • 3 concession openings

TURKEY

  • 2 concession openings

NORTH AMERICA

USA

  • 2 store openings:

LA Century City, Houston Galleria

  • 1 store closure
  • 1 store extension:

Miami Aventura CANADA

  • 3 concession openings

MEXICO

  • 9 concession openings

MIDDLE EAST & AFRICA

UAE

  • 1 store opening
  • 1 store closure

SAUDI ARABIA

  • 1 store opening

KUWAIT

  • 1 store opening

LEBANON

  • 1 store opening

QATAR

  • 1 store opening

ASIA & AUSTRALASIA

CHINA

  • 1 store opening: Shanghai

Taikoo Hui

  • 1 store closure
  • 1 concession closure

JAPAN

  • 1 store opening: Tokyo

Espoir Omotesando

  • 2 concession openings

SOUTH KOREA

  • 1 concession opening

INDIA:

  • 1 store opening

AUSTRALIA:

  • 1 store opening
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SLIDE 20

A p p e n d i c e s

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SLIDE 21

Ted Baker Plc Annual Results Presentation 52 weeks ended 28 January 2017 20 *Partner stores include stores operated by our Australian joint venture partner. **Square footage excludes partner stores.

(APPENDIX 1) STORE & CONCESSIONS PORTFOLIO

UK FYE JAN 2017 FYE JAN 2016 FYE JAN 2015 Own Stores 32 33 33 Concessions 151 143 141 Outlets 9 9 9 TOTAL 192 185 183 CLOSING SQ. FT** 187,792 185,212 183,581 AVERAGE SQ. FT** 186,536 183,583 182,574 NORTH AMERICA FYE JAN 2017 FYE JAN 2016 FYE JAN 2015 Own Stores 31 25 20 Concessions 55 55 48 Outlets 11 10 6 Partner Stores* 14 7 1 TOTAL 111 97 75 CLOSING SQ. FT** 116,590 106,471 89,240 AVERAGE SQ. FT** 112,110 94,496 82,360 MIDDLE EAST, ASIA, AFRICA & AUSTRALASIA FYE JAN 2017 FYE JAN 2016 FYE JAN 2015 Own Stores 8 8 7 Concessions 15 8 7 Outlets 3 3 2 Partner Stores* 63 54 41 TOTAL 89 73 57 CLOSING SQ. FT** 27,874 27,352 22,271 AVERAGE SQ. FT** 28,438 25,915 21,145 EUROPE FYE JAN 2017 FYE JAN 2016 FYE JAN 2015 Own Stores 4 5 4 Concessions 86 81 73 Outlets 5 4 3 Partner Stores* 3 3 3 TOTAL 98 93 83 CLOSING SQ. FT** 62,832 58,795 49,806 AVERAGE SQ. FT** 60,290 53,102 46,010

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SLIDE 22

Ted Baker Plc Annual Results Presentation 52 weeks ended 28 January 2017 21

(APPENDIX 2) BRAND STRATEGY

COLOUR BY NUMBERS

CONSIDERED DEVELOPMENT OF OUR COLLECTIONS – Continued review of our collections – Collections are being well received internationally PRODUCT LICENCES – Bedding – Childrenswear – Crockery – Eyewear – Footwear – Fragrance & Skinwear – Gifting & Stationery – Jewellery – Lingerie & Sleepwear – Luggage – Neckwear – Rugs – Suiting – Technical Accessories – Tiles – Watches CONTROLLED DISTRIBUTION THROUGH THREE MAIN CHANNELS – Retail – Wholesale – Licensing TERRITORIAL LICENCES – Demsa - Turkey – Dabsan - Panama – Multimoda - Mexico – Alfa Egypt - Egypt – RSH Middle East - UAE, Saudi Arabia & Qatar – Al-Mutawa and Al-Khatib Retail Company - Kuwait & Lebanon – Zeta - Azerbaijan – RSH Far East - Singapore, Malaysia, Indonesia & Thailand – Yun San - Taiwan – Maison - Vietnam – Aditya - India – Flair Pty Ltd - Australia & New Zealand

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SLIDE 23

Ted Baker Plc Annual Results Presentation 52 weeks ended 28 January 2017 22

NOTES

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SLIDE 24

Size Matters (so does what you do with it)