Ben Gordon Chief Executive

Transcription

1 Interim Results 17 November 2005

2 Ben Gordon Chief Executive

3 Resilient half Solid sales performance Improved margins Costs controlled Rapid International growth

4 Steven Glew Finance Director

5 Profit and loss summary Financials m Inc/Dec % Sales Profit from retail operations Profit on disposal of property interests Interest Profit before tax Taxation (3.7) (3.4) +8.8 Profit after tax EPS 11.3p Dividend 2.85p

6 Sales & profit by channel Financials Channel Sales Profit from Retail operations Operating margin Total UK International Total m Inc % m Inc/Dec % % % Over LY Over LY (17.0) (3.2)

7 UK Financials Sales growth: Like for like Net space Home shopping Total sales -1.0% +1.6% +0.4% +1.0% Net margin movement: Gross margin Costs Foreign exchange Total +0.2pp -0.9pp +0.2pp -0.5pp

8 International Financials Sales to franchisees: +17.0% Franchisee sales growth: Like for like Net space Total sales +8.0% +17.1% +25.1% Net margin movement: -0.3pp

9 Balance sheet Financials October March October m Non - current assets Stock Debtors Retirement benefits (33.6) (22.4) (25.3) Other liabilities (68.0) (71.8) (67.7) Cash Net assets

10 Cashflow Financials m Profit from retail operations Depreciation Other operating items Operating Cashflow Working capital Capital expenditure Investment income Dividend Other Cashflow 2005 H (7.7) (8.8) 0.7 (3.6) 0.6 (2.6) 2004 H (4.5) (10.3) 0.9 (2.7)

11 Capital expenditure Financials m New stores Store refits Systems Distribution Other Total capex 2005 H /06 FY (est)

12 Ben Gordon Chief Executive

13 Roadmap to recovery Stabilisation Turnaround Long Term Growth Dec 2002 May 2003 May 2004 May 2005 May 2006 May 2007 Distribution Cash Trading Store proposition Product & sourcing Supply chain Infrastructure Customer service International New UK store development Direct

14 Products revamped

15 Stores transformed

16 New supply chain

17 Technology improvements

18 Direct to our customers

19 Strength of international Beirut, Lebanon

20 From turnaround to growth Mothercare in a very different place Re-established as a force in UK market Momentum on International growth plans

21 Moving forward Building Mothercare as a world-class specialty retailer Specialism Products Service Store proposition Efficiency Supply chain Sourcing Infrastructure Reach UK store roll out Direct International Exceeding parents needs and aspirations World class retail operations Every parent everywhere

22 Moving forward Building Mothercare as a world-class specialty retailer Specialism Products Service Store proposition Efficiency Supply chain Sourcing Infrastructure Reach UK store roll out Direct International Exceeding parents needs and aspirations World class retail operations Every parent everywhere

23 Product development Specialism Product innovation Competitive prices Sourcing driving quality & value

24 Value at all price points Specialism

25 MODA innovation Specialism

26 Development toys Specialism

27 Extending the gift range Specialism

28 Leading in nursery bedding Specialism Revamped nursery range High quality & fashionable Special features Re-sourcing from Turkey & Asia

29 Mystery shopper Specialism Source: Mothercare Mystery Shopper Survey Customer Satisfaction 58% 59% 61% 66% 67% Summer 2004 Autumn 2004 Winter 2004/05 Spring 2005 Summer 2005

30 Stores as destinations Specialism Superlite rolled out to high street Attention now on OOT Extended ranges Merchandise mix Web-in-store Trials after Christmas Bedford

31 Moving forward Building Mothercare as a world-class specialty retailer Specialism Products Service Store proposition Efficiency Supply chain Sourcing Infrastructure Reach UK store roll out Direct International Exceeding parents needs and aspirations World class retail operations Every parent everywhere

32 World class supply chain Efficiency Coventry Phase 1 Mid 2005 New bespoke Daventry warehouse Phase 4 Ongoing Phase 2 Autumn 2005 Optimising Daventry Phase 3 Summer 2006 benefits of new platform Daventry Daventry Hanging space Hanging space

33 Direct sourcing - clothing Efficiency 50% 35% 10% Target 2008

34 Efficiency - infrastructure Efficiency EPOS in 200 stores 90% of sales through EPOS In all stores by end March 2006 Further benefits to come

35 Moving forward Building Mothercare as a world-class specialty retailer Specialism Products Service Store proposition Efficiency Supply chain Sourcing Infrastructure Reach UK store roll out Direct International Exceeding parents needs and aspirations World class retail operations Every parent everywhere

36 New UK stores Reach North Shields

37 Rightsizing the portfolio Reach Kingston Kingston

38 Direct to our customers Reach Internet sales growing rapidly, particularly web-in-store Constantly improving logistics & functionality Web-in-store now in all stores Makes small stores big Convenience Extensions to web range underway

39 Strength of international Reach Proven model Brand travels Experienced franchisees Strong support system Tallin, Estonia

40 Growth drivers Reach Driving like-forlike business More stores in new & existing countries Dubai, UAE

41 Growth drivers Reach Jakarta, Indonesia

42 In summary Solid platform providing resilience Managing the business tightly Maintaining competitive position Aggressive growth drive Excited about International prospects