Truworths International Ltd HY 2014 financial results presentation

306 views

Published on

Truworths International Ltd HY 2014 financial results presentation

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
306
On SlideShare
0
From Embeds
0
Number of Embeds
19
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Truworths International Ltd HY 2014 financial results presentation

  1. 1. INTERIM GROUP RESULTS for the 26 weeks ended 29 December 2013
  2. 2. Presentation overviewPresentation overview • Retail and economic environment • Review of the financial period • Credit management • Capital management• Capital management • Outlook • Questions
  3. 3. RETAIL AND ECONOMIC ENVIRONMENTRETAIL AND ECONOMIC ENVIRONMENT
  4. 4. Retail and economic environmentRetail and economic environment • Difficult economic environment; – low GDP growth rate – rising inflation – weakened Rand – high unemployment – mining strikes • The environment is particularly tough for credit retail, and in Truworths 71% of the Group’s sales are on credit. • The Truworths customer is aspirant and fashionable, and is part of the mass middle market who rely on – mining strikes – high level consumer indebtedness – decrease in unsecured credit granted mass middle market who rely on credit. In these difficult times, even more than normal, we revert to focus on our business philosophy to support us and ensure we do not become distracted as we focus on reinventing our business for its long term benefit.
  5. 5. REVIEW OF THE FINANCIAL PERIODREVIEW OF THE FINANCIAL PERIOD
  6. 6. Review of the financial periodReview of the financial period • Lower than planned sales growth. • Increased markdowns. • Lower gross margin as a result. • Costs increased more than sales: – Substantial increase in trade receivable costs. – Good cost control on all other expense items. • Disappointing headline earnings per share growth.
  7. 7. Financial performanceFinancial performance Sale of merchandise up 7% Gross margin at 56.3% Operating margin at 33.8% Headline earnings per share up 1% Diluted headline earnings per share up 2% Cash generated R1.2 billion Interim dividend per share up 6% Net asset value per share 1 670.6 cents up 6%
  8. 8. Financial targetsFinancial targets Dec 2013 Actual Dec 2012 Actual Jun 2014 Target Jun 2013 Actual Gross margin (%) 56.3 57.1 54 - 57 56.6 Operating margin (%) 33.8 36.3 33 - 36 34.5 Return on equity* (%) 42 44 38 - 42 39 Return on assets* (%) 43 45 44 - 48 46 Inventory turn* (times) 6.0 6.2 5.5 - 6.5 5.4 Asset turnover* (times) 1.3 1.2 1.2 - 1.5 1.3 * December ratios are annualised
  9. 9. Retail sales growth analysisRetail sales growth analysis Retail sales Rm Retail sales growth % LFL store growth % Product inflation % Unit growth: comparable stores % Unit growth: new stores % Dec-13 5 927 7 1 7 (6) 6 Dec-12 5 533 15 10 3 7 5 Dec-11 4 820 11 6 8 (2) 5Dec-11 4 820 11 6 8 (2) 5 Dec-10 4 355 15 11 1 10 4 Dec-09 3 778 11 3 10 (7) 8 Jun-13 10 074 13 8 2 6 5 Jun-12 8 921 10 6 8 (2) 4 Jun-11 8 080 14 9 4 5 5 Jun-10 7 118 11 4 4 - 7 Jun-09 6 441 12 5 10 (5) 7
  10. 10. Divisional retail salesDivisional retail sales 26 Weeks Dec 2013 Rm 26 Weeks Dec 2012 Rm change on prior period % 52 Weeks Jun 2013 Rm Truworths ladieswear 2 070 1 961 6% 3 661 Truworths menswear 1 214 1 088 12% 1 987 Identity 945 876 8% 1 586 Daniel Hechter 697 681 2% 1 206 LTD 306 260 18% 405 Elements 276 256 8% 480 Inwear 250 250 - 451 Other* 169 161 5% 298 Retail sales 5 927 5 533 7% 10 074 YDE agency sales 165 151 9% 278 * Includes Cellular and Truworths Jewellery divisions.
  11. 11. Group storesGroup stores Dec 2013 Jun 2013 Dec 2012 Truworths 308 298 290 Identity 204 195 188 Uzzi 57 55 55Uzzi 57 55 55 Truworths Man 35 32 34 YDE 20 18 18 Daniel Hechter 3 4 4 LTD 2 2 2 Total 629 604 591
  12. 12. Trading spaceTrading space Dec 2013 m2 000 Jun 2013 m2 000 Dec 2012 m2 000 Truworths 245 230 222 Identity 58 54 52Identity 58 54 52 Uzzi 4 4 4 Total (excl YDE) 307 288 278 YDE 7 6 6 Total 314 294 284 Growth (%) 10.7 8.1 8.1
  13. 13. Sales densities trendSales densities trend R per m2 Compound growth rates: Sales density Dec 3 year 3%, Dec 5 year 4% 30 359 31 096 30 793 33 996 35 097 37 881 37 144 30 000 35 000 40 000 10 000 15 000 20 000 25 000 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013
  14. 14. Rest of Africa corporate storesRest of Africa corporate stores Retail sales Dec 2013 Rm Retail sales Dec 2012 Rm Growth on prior period % No. of stores Dec 2013 No. of stores Dec 2012 Namibia 101 87 16% 12 12 Swaziland 35 25 40% 5 5 Botswana 32 28 14% 8 8 Nigeria 10 8 25% 4 4 Zambia 10 9 11% 3 3Zambia 10 9 11% 3 3 Ghana 9 7 29% 2 2 Lesotho 9 5 80% 4 4 Mauritius 6 5 20% 2 2 Total 212 174 22% 40 40 Retail sales from the rest of Africa contributed 3.7% to Group retail sales (2012: 3.2%)
  15. 15. Sale of merchandise and profit after taxSale of merchandise and profit after tax Profit after tax (Rbn) Sale of merchandise (Rbn) Compound growth rates: Profit after tax: Dec 3 year 11%, 5 year 12% Jun 3 year 14%, 5 year 13% Compound growth rates: Profit after tax: Dec 3 year 11%, 5 year 12% Jun 3 year 14%, 5 year 13% Compound growth rates: Sale of merchandise: Dec 3 year 11%, 5 year 12% Jun 3 year 12%, 5 year 12% Compound growth rates: Sale of merchandise: Dec 3 year 11%, 5 year 12% Jun 3 year 12%, 5 year 12% 1.6 1.9 2.2 2.4 6 7 8 9 10 2.0 2.5 3.0 6.2 6.9 7.9 8.8 9.8 3.7 4.2 4.7 5.4 5.8 1.4 1.6 0.9 1.0 1.2 1.4 1.4 - 1 2 3 4 5 6 - 0.5 1.0 1.5 Jun 2009 Jun 2010 Jun 2011 Jun 2012 Jun 2013 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Sale of merchandise (Rbn) Profitafter tax (Rbn)
  16. 16. Gross profit trendGross profit trend Gross profit (Rbn) Gross margin (%) Compound growth rates: Gross profit: Dec 3 year 10%, 5 year 12% Jun 3 year 13%, 5 year 12% Compound growth rates: Gross profit: Dec 3 year 10%, 5 year 12% Jun 3 year 13%, 5 year 12% Average: Gross margin: Dec 3 year 56.8%, 5 year 56.5% Jun 3 year 56.7%, 5 year 56.0% Average: Gross margin: Dec 3 year 56.8%, 5 year 56.5% Jun 3 year 56.7%, 5 year 56.0% 54.9 55.3 56.7 56.7 56.6 55.8 56.6 56.9 57.1 56.3 40 50 60 70 3.5 4.0 4.5 5.0 5.5 3.4 3.8 4.5 5.0 5.5 2.1 2.4 2.7 3.1 3.2 - 10 20 30 40 - 0.5 1.0 1.5 2.0 2.5 3.0 Jun 2009 Jun 2010 Jun 2011 Jun 2012 Jun 2013 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Gross profit(Rbn) Gross margin (%)
  17. 17. Analysis of trading expensesAnalysis of trading expenses De c 2 0 1 3 R m De c 2 0 1 2 Rm C ha n g e o n p r i o r p e r i o d % De p r e c i a t i o n a n d a m o r t is a t i o n 8 4 7 6 1 1 E m p l o y m e n t c o s t s 5 1 0 5 0 4 1 O c c u p a n c y c o s t s 4 7 7 4 2 5 1 2 O c c u p a n c y c o s t s 4 7 7 4 2 5 1 2 T r a d e r e ce iv a b l e c o s t s 5 3 1 3 7 9 4 0 O t h e r o p e r a t i n g c o s t s 2 7 6 2 4 1 1 5 Tr a d in g e x pe n s e s 1 8 7 8 1 6 2 5 1 6 Ex c lu d in g tr a de r e c e iv a b l e c o s t s a n d f o r e i g n e x c h a n g e l o s s e s /p r o f i t s, t o t a l e x p e n s e s in c r e a s e d by 7. 2 %
  18. 18. Analysis of trading expenses (continued)Analysis of trading expenses (continued) • Depreciation and amortisation (11% growth): – Capital expenditure of R 159 million in the period. – Increase as a result of new stores, store expansions and renovations. • Employment costs (1% growth): – Excluding non-comparable store costs and the provision for incentive bonuses, comparable employment costs increased by 5%. • Occupancy costs (12% growth):• Occupancy costs (12% growth): – A net 38 stores opened from Dec 2012 to Dec 2013 with trading space growth of 10.7%. – Excluding non-comparable store costs, occupancy costs increased 6%. – Normal rental escalations averaged 8% during the period. – Electricity increase of 17%. Excluding non-comparable store costs, electricity increased 6%.
  19. 19. Analysis of trading expenses (continued)Analysis of trading expenses (continued) • Trade receivable costs (40% growth): – The doubtful debt allowance increased to 12.0% of gross trade receivables (Dec 2012: 10.6%, Jun 2013: 12.0%). – Net bad debt as a percentage of gross trade receivables increased to 13.2% (Dec 2012: 9.3%, Jun 2013: 10.4%). – The interest income earned (including notional interest) of R 384 million (Dec 2012: R 342 million) on the debtors’ book during the period does not offset net bad debts and associated costs of R 531 million (Dec 2012: R 379 million) by R 147 million (Dec 2012: R 37 million). • Other operating costs (15% growth): – Excluding foreign exchange losses of R 9 million (Dec 2012: R 2 million profit), other operating costs increased 10%, mainly due to an increase in postage costs, credit card commissions and bank charges.
  20. 20. Trading profit performanceTrading profit performance Compound growth rates: Trading profit: Dec 3 year 7%, 5 year 12% Compound growth rates: Trading profit: Dec 3 year 7%, 5 year 12% Average: Trading margin: Dec 3 year 28.2%, 5 year 28.1% Average: Trading margin: Dec 3 year 28.2%, 5 year 28.1% Trading profit (Rbn) Trading margin (%) 2 6. 4 2 5 . 7 2 7 . 1 2 8. 7 2 9 . 7 2 9 . 0 2 5. 9 2 0 . 0 2 5 . 0 3 0 . 0 3 5 . 0 1 . 0 1 . 2 1 . 4 1 . 6 1 . 8 0. 8 0 . 8 1 . 0 1 . 2 1 . 4 1 . 6 1 . 5 - 5 . 0 1 0 . 0 1 5 . 0 - 0. 2 0. 4 0. 6 0. 8 1 . 0 De c 2 0 0 7 De c 2 0 0 8 De c 2 0 0 9 De c 2 0 1 0 D e c 2 0 1 1 De c 2 0 1 2 De c 2 0 1 3 Tr a d in g p r o f it ( R b n ) Tr a d in g m a r g i n ( % )
  21. 21. Compound growth rates: Operating profit: Dec 3 year 8%, 5 year 11% Jun 3 year 13%, 5 year 13% Compound growth rates: Operating profit: Dec 3 year 8%, 5 year 11% Jun 3 year 13%, 5 year 13% Average: EBITDA margin: Dec 3 year 37.0%, 5 year 37.0% Jun 3 year 37.3%, 5 year 36.8% Average: EBITDA margin: Dec 3 year 37.0%, 5 year 37.0% Jun 3 year 37.3%, 5 year 36.8% Average: Operating margin: Dec 3 year 35.7%, 5 year 35.4% Jun 3 year 35.7%, 5 year 35.0% Average: Operating margin: Dec 3 year 35.7%, 5 year 35.4% Jun 3 year 35.7%, 5 year 35.0% Operating profit performanceOperating profit performance Operating profit (Rbn) Margins (%) 36 36 38 38 36 36 38 38 38 35 34 34 36 36 35 34 36 37 36 34 25 30 35 40 2.5 3.0 3.5 2.1 2.4 2.9 3.2 3.4 1.3 1.5 1.7 1.9 1.9 - 5 10 15 20 25 - 0.5 1.0 1.5 2.0 Jun 2009 Jun 2010 Jun 2011 Jun 2012 Jun 2013 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Operating profit (Rbn) EBITDA margin (%) Operating margin (%)
  22. 22. HEPS, DPS and dividend coverHEPS, DPS and dividend cover Compound growth rates: HEPS: Dec 3 year 11%, 5 year 13% Jun 3 year 15%, 5 year 14% Compound growth rates: HEPS: Dec 3 year 11%, 5 year 13% Jun 3 year 15%, 5 year 14% Compound growth rates: DPS: Dec 3 year 19%, 5 year 20% Jun 3 year 22%, 5 year 20% Compound growth rates: DPS: Dec 3 year 19%, 5 year 20% Jun 3 year 22%, 5 year 20% HEPS / DPS (cents) Dividend cover (times) 1.97 1.89 1.74 1.62 1.58 1.99 1.90 1.64 1.62 1.56 1.5 2.0 2.5 400 500 600 171 200 262 326 362 102 128 169 204 216337.6 377.9 456.0 526.7 570.8 203.3 242.7 277.6 331.3 335.8 - 0.5 1.0 - 100 200 300 Jun 2009 Jun 2010 Jun 2011 Jun 2012 Jun 2013 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 DPS (cents) HEPS (cents) Dividend cover (times)
  23. 23. Statements of financial positionStatements of financial position Dec 2013 Rm Dec 2012 Rm change on prior period % Jun 2013 Rm Non-current assets 1 332 1 239 8 1 280 Cash and cash equivalents 2 565 2 643 (3) 1 325 Trade and other receivables 4 347 4 041 8 3 766 receivables 4 347 4 041 8 3 766 Inventories 844 739 14 787 Other current assets 31 38 (18) 113 Total assets 9 119 8 700 5 7 271 Total equity 6 998 6 650 5 6 224 Non-current liabilities 99 95 4 96 Current liabilities 2 022 1 955 3 951 Total equity and liabilities 9 119 8 700 5 7 271
  24. 24. Inventory turnInventory turn -- merchandisingmerchandising Inventory turn average: Dec 3 year 5.2 times, 5 year 5.2 times Times 5. 1 5 . 6 5 . 2 5. 2 5. 1 5. 2 5. 4 5. 6 5. 8 6 . 0 4 . 0 4 . 2 4 . 4 4 . 6 4 . 8 5. 0 De c 2 0 0 9 D e c 2 0 1 0 D e c 2 0 1 1 D e c 2 0 1 2 D e c 2 0 1 3
  25. 25. Return on equity (ROE) and return on capital (ROC)Return on equity (ROE) and return on capital (ROC) Average: ROE: Dec 3 year 43.7%, 5 year 44.0% Average: ROE: Dec 3 year 43.7%, 5 year 44.0% Average: ROC: Dec 3 year 62.3%, 5 year 63.6% Average: ROC: Dec 3 year 62.3%, 5 year 63.6%% 45 44 45 44 42 67 64 66 62 59 40 50 60 70 80 * Annualised - 10 20 30 40 Dec 2009* Dec 2010* Dec 2011* Dec 2012* Dec 2013* ROE ROC
  26. 26. Return on assets and asset turnoverReturn on assets and asset turnover Average: Return on assets: Dec 3 year 44.3%, 5 year 45.8% Average: Return on assets: Dec 3 year 44.3%, 5 year 45.8% Average: Asset turnover: Dec 3 year 1.2 times, 5 year 1.3 times Average: Asset turnover: Dec 3 year 1.2 times, 5 year 1.3 timesReturn on assets (%) Asset turnover (times) 4 9 4 7 4 5 4 5 4 3 1. 6 1. 7 1. 8 1. 9 2 . 0 4 0 5 0 6 0 1. 4 1. 3 1 . 2 1. 2 1. 3 1. 0 1. 1 1. 2 1. 3 1. 4 1. 5 - 1 0 2 0 3 0 De c 2 0 0 9 * D e c 2 0 1 0 * De c 2 0 1 1 * De c 2 0 1 2 * De c 2 0 1 3 * R e tu r n o n a s s e t s ( % ) A s s e t tu r n o v e r ( t im e s ) * Annualised
  27. 27. Cash flows for the periodCash flows for the period Rm 112 427 30 (170) (31) (661) (128) (2) 31 1 500 2 000 2 500 * E a r n i n g s be fo r e i n t e r e s t r e c e iv e d, t a x , d e p r e c i a t i o n a n d a m o r t i s a t i o n * 1 633 2 001 1 241 - 500 1 000 EBITDA Working capital movement Interest received Dividends received Tax paid Capex maintenance Free cash flow Dividends Capex expand Share buy- backs Other Net cash flow
  28. 28. Cash flow return on operating assetsCash flow return on operating assets % 23 22 15 21 21 20 19 18 29 29 20 25 30 35 15 - 5 10 15 Dec 2004 Dec 2005 Dec 2006 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013
  29. 29. CREDIT MANAGEMENTCREDIT MANAGEMENT
  30. 30. Challenging national credit environmentChallenging national credit environment (Source: National Credit Regulator statistics, Credit Bureau Monitor, third quarter 2013 statistics)(Source: National Credit Regulator statistics, Credit Bureau Monitor, third quarter 2013 statistics) Consumers (millions) Consumers (%) 4 6 4 7 4 8 4 9 5 0 15.0 20.0 4 2 4 3 4 4 4 5 4 6 - 5.0 10.0 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 No . o f c o n s u m e r s w it h i m p a i r e d r e c o r d s ( m i l l i o n s ) N o . o f c o n s u m e r s o fg o o d s t a n d i n g ( m i l l i o n s ) C o n s u m e r s w i t h i m p a i r e d r e c o r d s ( % )
  31. 31. National credit being grantedNational credit being granted (Source: National Credit Regulator statistics, Consumer credit market report, third quarter 2013)(Source: National Credit Regulator statistics, Consumer credit market report, third quarter 2013) % 20 40 60 80 ( 40) ( 20) - 20 2008-Q4 2009-Q1 2009-Q2 2009-Q3 2009-Q4 2010-Q1 2010-Q2 2010-Q3 2010-Q4 2011-Q1 2011-Q2 2011-Q3 2011-Q4 2012-Q1 2012-Q2 2012-Q3 2012-Q4 2013-Q1 2013-Q2 2013-Q3 Creditfacilities Unsecured credit Store cards
  32. 32. Industry: Good/Bad Balance RatioIndustry: Good/Bad Balance Ratio (Source:(Source: PrincipaPrincipa)) Yr/Yr change
  33. 33. Credit management (summary)Credit management (summary) • Continuing deterioration in the credit environment. • Material increase in trade receivable costs. • Truworths adjusted credit strategies from the second half of 2012 onwards, including: – More restrictive new account criteria – Strategic changes in collection operation – Refinement in scoring strategy • Impact of this becoming evident in recent months, • Through improvement in key metrics in new accounts and the credit portfolio, including: – Good/Bad account ratios – Roll rates – Vintage (30 days at 6 months) on new accounts
  34. 34. Key trade receivable statisticsKey trade receivable statistics Dec 2013 Dec 2012 Dec 2011 Number of active accounts (000's) 2 615 2 582 2 403 Growth in active accounts (%) 1 7 14 Gross trade receivables (before doubtful debt allowance) (Rm) 4 873 4 463 3 853 Growth in gross trade receivables (before doubtful debt allowance) (%) 9 16 17 Credit sales as a % of retail sales (%) 71 72 73 Qualifying payment (%) 90 90 90 Applicants granted credit (%) 26 35 39
  35. 35. Key trade receivable statistics (continued)Key trade receivable statistics (continued) Dec 2013 Dec 2012 Dec 2011 Active account holders able to purchase at period-end (%) 85 87 88 Overdue values as a % of gross trade receivables (%) 10.2 10.1 9.1 Net bad debt as a % of credit sales (%) 8.1 5.2 4.3 Net bad debt as a % of gross trade receivables* (%) 13.2 9.3 8.0 Doubtful debt allowance as a % of gross trade receivables (%) 12.0 10.6 10.1 Trade receivable interest as a % of gross trade receivables* (%) 15.5 15.3 15.3 * Annualised
  36. 36. Trade receivable costs vs. interest receivedTrade receivable costs vs. interest received Rm 271 237 259 290 342 384 242 284 379 531 300 400 500 600 224 237 259 224 242 228 222 - 100 200 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Trade receivable interest(Rm) Trade receivable costs (Rm)
  37. 37. Active accounts vs. acceptance rateActive accounts vs. acceptance rate Acceptance rate (%) No. of active accounts ('000) 41 41 39 1 775 1 823 1 926 2 100 2 403 2 582 2 615 1 500 2 000 2 500 3 000 35 40 45 50 35 35 35 26 1 775 1 823 - 500 1 000 1 500 20 25 30 35 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Acceptance rate (%) No of active accounts ('000)
  38. 38. Active account holders able to purchaseActive account holders able to purchase % 89 88 13 14 13 11 12 13 15 50 60 70 80 90 100 87 86 87 89 88 87 85 - 10 20 30 40 50 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Shoppable Delinquent
  39. 39. CAPITAL MANAGEMENTCAPITAL MANAGEMENT
  40. 40. Capital managementCapital management • Dividends – The interim dividend per share increased 6% to 216 cents (2012: 204 cents). – Dividend cover reduced to 1.56 times (2012: 1.62 times). • Share buy-backs: – During the current period the Group repurchased 30 000 shares at an average price of R80.29 per share for a total of R 2 million.average price of R80.29 per share for a total of R 2 million. – Since inception of the share buy-back programme in 2002, 89 million shares (R 2.4 billion) have been repurchased at an average cost of R27.45. – In the past six months, 44 million shares (R 2 billion) that were previously repurchased and held as treasury shares have been cancelled. – The balance of 2.2 million shares (0.5% of total shares in issue) are held as treasury shares.
  41. 41. Capital expenditureCapital expenditure Actual spend for Dec 2013 Rm Actual spend for Dec 2012 Rm Planned spend for Jun 2014 Rm Actual spend for Jun 2013 Rm Store development 134 98 259 215 Computer infrastructure 14 24 59 42Computer infrastructure 14 24 59 42 Head office refurbishment 4 5 4 5 Motor vehicles 4 4 6 4 Distribution facilities 3 3 60 4 Total 159 134 388 270
  42. 42. OUTLOOKOUTLOOK
  43. 43. OutlookOutlook • The trading environment is expected to remain challenging for the balance of the 2014 financial period. • Management will continue to focus on expense control, interventions to manage the risk of credit and the consistent application of merchandising strategies to meet the fashion expectations of our target market. • Product price inflation from the devaluation of the Rand is likely to be• Product price inflation from the devaluation of the Rand is likely to be higher than 10% for the Group for the remainder of the financial period. • Retail sales for the first seven weeks of the second half of the 2014 financial period increased by 8.1% to the comparable weeks in the prior period. • The board remains committed to investing appropriately for longer- term growth, with trading space planned to increase by approximately 10% for the 2014 financial period and by approximately 6% in the following financial period.
  44. 44. QUESTIONSQUESTIONS
  45. 45. DisclaimerDisclaimer This presentation contains certain forward-looking statements with respect to the financial condition and results of operations of Truworths International Limited and its group companies, which by their nature involve risk and uncertainty because they relate to events and depend on circumstances that may occur in the future. Factors that could cause actual results to differ materially from those in the forward- looking statements include, but are not limited to: global and national economic conditions; growth in trading space; interest rates; credit andeconomic conditions; growth in trading space; interest rates; credit and the associated risks of lending; merchandise clearance rates; inventory levels and stock turn; gross and operating margins achieved; and competitive and regulatory factors. The Group does not undertake to publicly update or revise any of these forward-looking statements, whether to reflect new information or future events or otherwise.

×