SlideShare a Scribd company logo
20 November 2013
NZX Emerging and Mid Cap
Companies Conference
www.smithscitygroup.co.nz
1.
2.
3.
4.
5.
6.

Retail Market Overview
Introduction to Smiths City
Governance Structure
2 Year Share Price History
Big Ticket Market Size
Business Profile
Retail
Finance
Property

7.

Go Forward Strategy – Key Elements
New Zealand Retail
Overview

Discretionary
10% SCG sales – e.g: sports

Big Ticket
90% of SCG sales

Home Related

Lifestyle –
vehicles boat etc

Lifestyle

Food

Entertainment

Necessity

Home
Incl DIY

Food & Fuel

Home
Founded in 1918.
Integrated Retail, Finance and Property company based
in Christchurch.
Core business activities based around the retail industry.
2013 revenue of $222.5million, net assets $46.4million
but market capitalisation only $34.247million.
Dividends paid in the last 12 months were 3.5cents per
share resulting in a gross dividend yield of 5.38% on a
share price of 65cents.
Experienced Board of Directors
CRAIG BOYCE – Chairman
JOHN DOBSON – Deputy Chairman
GARY ROHLOFF
SARAH OTTREY
RICK HELLINGS – Managing Director

The company has 52.6million ordinary shares; around
1,466 shareholders. The company’s five major
shareholders hold approximately 50% of the shares.
NEW ZEALAND MARKET SIZES
YEAR ENDED APRIL
APPLIANCES
$M
Year end April
2001 $ 1,453
2002 $ 1,537
2003 $ 1,873
2004 $ 1,961
2005 $ 2,232
2006 $ 2,324
2007 $ 2,397
2008 $ 2,396
2009 $ 2,389
2010 $ 2,496
2011 $ 2,517
2012 $ 2,736
2013 $ 2,613

FURNISHINGS
$M
Year end April
2001
$ 1,117
2002
$ 1,213
2003
$ 1,251
2004
$ 1,268
2005
$ 1,387
2006
$ 1,486
2007
$ 1,891
2008
$ 1,945
2009
$ 1,742
2010
$ 1,711
2011
$ 1,702
2012
$ 1,764
2013
$ 1,885

** source NZ Department of Statistics
Integrated Retail, Finance and Property company based
in Christchurch.
Retail – built on quality brands, staff and locations;
strong advertising and full after sales service.
Finance – ownership of the finance company retains
profit and maximises customer relationships.
Property – property development allows the Group to
leverage its strength as a tenant.
Focus on branded product wherever possible.
Product range mixes high foot traffic drivers with high
margin products.
Dual branding strategy to maximise buying power and
reduce costs per transaction across the Group.
Narta
Focus on furnishings, beds and kitchen appliances to
address commoditisation of appliances particularly flat
panel tv and mobile technology.
Full service across the Group includes in home installation
and delivery plus being “the face” of warranty.
Direct importers of furniture with our own warehouse and
logistics operation.
Omni channel retail offering now well underway.
Growth of Commercial operation.
Ownership of the finance company retains profit and
maximises customer relationships.
New Zealand domiciled and managed.
Mail outs of up to 80,000 personalised letters.
Property Investment - Colombo Street

Property Development – utilise strength as a tenant
Introduction to Growth Strategy.
South Island only to 2004.
Reintroduction into North Island 2005.
Go Forward Strategy.
STORE LOCATIONS - 2013

28 Smiths City
9 Appliance Stores
- 4 L V Martin
Wellington only
- 5 Powerstore South
Island only
2 Furniture Concepts
7 Alectra Service
1 Distribution Centre
3 Credit Offices

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NZX Presentation November 2013

  • 1. 20 November 2013 NZX Emerging and Mid Cap Companies Conference www.smithscitygroup.co.nz
  • 2. 1. 2. 3. 4. 5. 6. Retail Market Overview Introduction to Smiths City Governance Structure 2 Year Share Price History Big Ticket Market Size Business Profile Retail Finance Property 7. Go Forward Strategy – Key Elements
  • 3. New Zealand Retail Overview Discretionary 10% SCG sales – e.g: sports Big Ticket 90% of SCG sales Home Related Lifestyle – vehicles boat etc Lifestyle Food Entertainment Necessity Home Incl DIY Food & Fuel Home
  • 4. Founded in 1918. Integrated Retail, Finance and Property company based in Christchurch. Core business activities based around the retail industry. 2013 revenue of $222.5million, net assets $46.4million but market capitalisation only $34.247million. Dividends paid in the last 12 months were 3.5cents per share resulting in a gross dividend yield of 5.38% on a share price of 65cents.
  • 5. Experienced Board of Directors CRAIG BOYCE – Chairman JOHN DOBSON – Deputy Chairman GARY ROHLOFF SARAH OTTREY RICK HELLINGS – Managing Director The company has 52.6million ordinary shares; around 1,466 shareholders. The company’s five major shareholders hold approximately 50% of the shares.
  • 6.
  • 7. NEW ZEALAND MARKET SIZES YEAR ENDED APRIL APPLIANCES $M Year end April 2001 $ 1,453 2002 $ 1,537 2003 $ 1,873 2004 $ 1,961 2005 $ 2,232 2006 $ 2,324 2007 $ 2,397 2008 $ 2,396 2009 $ 2,389 2010 $ 2,496 2011 $ 2,517 2012 $ 2,736 2013 $ 2,613 FURNISHINGS $M Year end April 2001 $ 1,117 2002 $ 1,213 2003 $ 1,251 2004 $ 1,268 2005 $ 1,387 2006 $ 1,486 2007 $ 1,891 2008 $ 1,945 2009 $ 1,742 2010 $ 1,711 2011 $ 1,702 2012 $ 1,764 2013 $ 1,885 ** source NZ Department of Statistics
  • 8. Integrated Retail, Finance and Property company based in Christchurch. Retail – built on quality brands, staff and locations; strong advertising and full after sales service. Finance – ownership of the finance company retains profit and maximises customer relationships. Property – property development allows the Group to leverage its strength as a tenant.
  • 9. Focus on branded product wherever possible. Product range mixes high foot traffic drivers with high margin products. Dual branding strategy to maximise buying power and reduce costs per transaction across the Group. Narta Focus on furnishings, beds and kitchen appliances to address commoditisation of appliances particularly flat panel tv and mobile technology. Full service across the Group includes in home installation and delivery plus being “the face” of warranty. Direct importers of furniture with our own warehouse and logistics operation. Omni channel retail offering now well underway. Growth of Commercial operation.
  • 10. Ownership of the finance company retains profit and maximises customer relationships. New Zealand domiciled and managed. Mail outs of up to 80,000 personalised letters.
  • 11.
  • 12. Property Investment - Colombo Street Property Development – utilise strength as a tenant
  • 13. Introduction to Growth Strategy. South Island only to 2004. Reintroduction into North Island 2005. Go Forward Strategy.
  • 14. STORE LOCATIONS - 2013 28 Smiths City 9 Appliance Stores - 4 L V Martin Wellington only - 5 Powerstore South Island only 2 Furniture Concepts 7 Alectra Service 1 Distribution Centre 3 Credit Offices