consolidated results fy16 & q1:fy17 - …edcon.co.za/pdf/announcements/2016/fy16_and_...
TRANSCRIPT
CONSOLIDATED RESULTS
FY16 & Q1:FY17
BERNIE BROOKES
CHIEF EXECUTIVE OFFICER
11 October 2016
EDGARS
EXECUTIVE SUMMARY
CAPITAL STRUCTURE & TRANSACTION
MACRO ECONOMIC ENVIRONMENT
FINANCIAL REVIEW
STRATEGY & TURNAROUND INITIATIVES
RECENT DEVELOPMENTS & WAY FORWARD
AGENDA
EDGARSEDGARS1
EXECUTIVE SUMMARY
• The impact of debt on the business over the last 6 years has been substantial, impacting
customers, suppliers, staff perception and performance of the business
• Edcon has entered into an agreement with primary lenders resulting in a deleveraging of the
business reducing gross debt from R26.7 billion to R6.0 billion
─ Gross leverage circa 2.7x
─ Cash interest cover circa 3.1x
CAPITAL
RESTRUCTURING
Q1:FY17
• Retail sales decreased by 8.1% to R5,973m
• Retail cash sales decreased by 2.7%
• Retail credit sales decreased by 15.6%
• Gross profit margin decreased 200 basis points
(bps) from 38.0% in the first quarter 2016 to
36.0% in the first quarter 2017 mainly as a result
of the weaker Rand and increased clearance
activity
• Adjusted EBITDA significantly affected by
difficult trading conditions and debt burden, down
53.8%
FY16
• Retail sales decreased by 1.3% to
R27,147m
• Retail cash sales increased by 5.3%
• Retail credit sales decreased by 10.2%
• Second-look trade receivables book
grows in excess of 100%
• Controllable costs well managed
• Adjusted EBITDA decreased by 1.7% to
R2,639m
FINANCIAL
REVIEW
2
EXECUTIVE SUMMARY (CONTINUED)
• Sale of Legit to consortium comprising Metier and Retailability
─ Purchase consideration of R637m
• Changes in executive management group
• Deferral of interest payments and bridge financing of R1.5 billion
• Transaction with creditors and development of 4 year plan
• Clearance of aged stock to impact GP by circa R300m in FY17
─ Business has built up aged stocks of circa R600m
RECENT
DEVELOPMENTS
• De-levered balance sheet, combined with the “Fast Track” programme, provides a runway
which sees a interim decline in EBITDA followed by growth in sales and profits
• "Cost out" in FY17 will buffer a significant turndown in EBITDA, and see the business
surface with a lower underlying cost base
• The next four years will deliver a sustainable enhanced operating model driven by
improvements in space productivity, lower cost procurement of GNFR, a focus on better
sourcing, improved inventory management, a stronger management team, a stronger
management of markdowns and entry price points plus a revamped loyalty program
• In addition the plan echoes the development of a customer driven organisation, a renewed
supplier engagement, the development of a world class IT and supply chain infrastructure in
addition to a plan to maneuver through the ever changing environment of financial services
• The Strategic roadmap includes the development of a digital and Omnichannel template to look
at not only re- building the fundamental retail base but setting a platform for future growth
STRATEGY &
TURNAROUND
INITIATIVES
3
CHANGE IN CHAIN REPORTING STRUCTURE
4
PREVIOUS EXECUTIVE MANAGEMENT REPORTING STRUCTURE
• Edgars
(Planning
& Buying)
• Jet, Jet
Mart and
Legit
(Planning
& Buying)
• CNA
(Planning
& Buying)
• Logistics
& Distri-
bution
• BM & RS
(Planning
& Buying)
• Cellular
• Group
Mktg/
GNFR
• Active
(Planning
& Buying)
• Strat.
projects
• Store
Ops
• HR
• Trans-
formation
• CIO
• Credit &
FS
• Company
Secretary
& Legal
• Sourcing
• Merchant
Optimis-
ation
• Loyalty,
BI,Online
• Edgars
(Planning
& Buying)
• Edgars
Store
Ops
• Edgars
HR &
Edgars
Finance
• Jet
(Planning
& Buying)
• Jet Store
Ops
• Jet HR &
Jet
Finance
• CNA
• Board-
mans
• Red Sq.
• Edgars
Active
• Cellular
• HR &
Finance
• Sourcing
• Logistics
• QA
• Procure-
ment
• Property
• Online/
Omni-
channel
• Celrose
• Credit &
FS
• Loyalty
• Customer
Data
Mgmt
• NPS
• Trans-
formation
• Investor
relations
CURRENT EXECUTIVE MANAGEMENT REPORTING STRUCTURE
1. Store Operations
moved to chains, giving
greater control over store
model
2. Chain HR and Finance
moved into chains,
driving greater
accountability for these
support functions
3. All Specialty banners
moved under a single
CE, allowing Specialty to
be run as a portfolio
4. New “Customer” EMG
role created to
strengthen the business
customer focus
5. New “Strategy & PMO”
EMG role created to
enhance Edcon’s project
management capabilitiesEach Specialty banner
includes Store Operations Support functionsSpecialtyJetEdgars
CELROSE
INTER-
NATIONAL
BRANDS
DEPT.
STORESDISCOUNT
CNA AND
LOGISTICS
RS, BM,
CELLULAR,
GNFR
ACTIVE &
STRATEGIC
PROJECTS
COO CFOSOURCING
&
PLANNING
CEO
AFRICA &
INVESTOR
RELATIONS
EDGARS JET (INCL. JET
MART)SPECIALTY COO
STRATEGY
& PMOCIO
GROUP
FINANCECUSTOMERGROUP HR
CEO
LEGAL
KEY BENEFITS OF
NEW STRUCTURE
EXECUTIVE SUMMARY
CAPITAL STRUCTURE & TRANSACTION
MACRO ECONOMIC ENVIRONMENT
FINANCIAL REVIEW
STRATEGY & TURNAROUND INITIATIVES
RECENT DEVELOPMENTS & WAY FORWARD
AGENDA
5
THE 2 BURNING PLATFORMS
6
2.5
3.7
3.1
2.6
3.4
4.2
FY11 FY12 FY13 FY14 FY15 FY16
Gross finance cost, R billion
1.9 1.9
1.41.3
1.2
1.0
FY11 FY12 FY13 FY14 FY15 FY16
Trading profit, R billion
ISSUE 1: HIGH FINANCING COSTS ISSUE 2: DECLINING TRADING PROFIT
To fix this we need new owners and
reduce our debt – this is happening
Less debt won’t help with this – we
need to turn around performance
EDGARS
7
BURNING PLATFORM - IMPACT OF DEBT
7
• Unattractive
employer due to
bad press,
uncertain future,
limited investment
in skills, lack of
financial incentives
• High turnover of key
management
personnel
• Long lead times to
fill key vacancies
• Senior
management
turnover now
approaching 30%
• Competitors
targeting key talent
• Edcon Provident
Fund: raised
concern regarding
our financial position
and liquidity
• BBEEE scheme
participants: worried
over the continued
ability to pay
dividends to the
participants
• Out of patience and
conscious of the
credit risk
• Certain suppliers
limiting supply
• Suppliers limiting
credit lines
• Stock targets with
many suppliers
limiting stock
availability between
payment periods
• Banks not providing
enough forward
cover for suppliers
and advise against
Edcon exposure
• Non-core asset
sales subject to bank
financing proving
challenging
• Suppliers with high
exposure struggling
to get finance
• Changed structure
on securitising local
and rest of Africa
book: greater
pressure on balance
sheet
• Absa continue to
tighten the book
• Banks no longer
provide cover for
corporate credit
cards
• Credit Insurers
declining willingness
to insure
• Insurers reducing
exposure
• Local brokers and
insurers reducing a
“pulling” covert
• Landlords nervous,
asking for urgent
meetings due to their
exposure
• Preference in site
selection to less risky
competitors
PEOPLENON-BAIN
SHAREHOLDERSSUPPLIERS BANKS OTHERS
TRANSACTION OVERVIEW
8 EDGARS | WINTER 16
Substantial
New Money
Injection
• Existing creditors committed to fund up to R2,825m to
significantly shore up the Group’s liquidity position
• R575m New Revolving Credit Facility(1)
• R2,250m-equivalent USD-denominated New Holdco 1 PIK
A-1 Notes(2)
Material
Deleveraging
of the
Operating
Company
• Part of the new money raised at New Holdco 1 to repay the
Bridge Facilities issued in July 2016
• Senior secured creditors to equitise 50% of their outstanding
claims and novate their reinstated claims to a holding company
• c. R3,200m of second and third-ranking super senior claims to be
novated to a holding company
• Pro forma for the transaction, gross leverage at the operating
company to decline to 2.7x from 12.0x
Reduction of
Cash Interest
Burden
• New commitments and novated claims at the holding companies
to be PIK-only instruments
• Pro forma for the transaction, cash interest coverage at the
operating company to increase to 3.1x from 0.8x
Extension of
Maturities
• Most indebtedness at the operating company to mature
December 2019
• New commitments and novated claims at the holding companies
to mature December 2022
(1) Raised at Edcon Limited. (2) Raised at New Holdco 1BOARDMANS
TRANSACTION OBJECTIVES
• Materially improve liquidity position to ensure ongoing operations
• Address high structural leverage and cash interest burden on
operating company
• Extend maturities and make funding available to facilitate operational
turnaround
• Refocus management onto running the business and executing its
strategic plan
• Alleviate concerns of key stakeholders (suppliers, employees,
landlords, credit insurers, etc.)
• Avoid a value-destructive process
• Make Edcon an attractive place to work and shop again
• Unlock ability to increase lending to credit customers
9 EDGARS | WINTER 16EDGARS | WINTER 16EDGARS
NEW STRUCTURE
(R millions)(1) Pro Forma
Capacity
Pro Forma
BalanceCash PIK Maturity
OPERATING COMPANY
Senior Secured Debt
ZAR New Revolving Credit Facility 575 - J+5.00% 3.00% 31 Dec 2019
ZAR Converted Revolving Facility(2) 1,250 1,250 J+5.00% 3.00% 31 Dec 2019
ZAR LC Facility 300 - J+5.00% 3.00% 31 Dec 2019
ZAR Term Facility(3) 2,047 2,047 J+5.00% 3.00% 31 Dec 2019
EUR Liquidity Facility(4) 2,074 2,074 E+4.00% 8.00% 31 Dec 2018
Lease Liabilities - 319 - - -
Other Loans(5) - 304 - - -
Gross Debt - Operating Company 5,994
HOLDCO 1
USD HoldCo 1 PIK A-1 Notes(6) - 2,320 - 25.00% 31 Dec 2022
USD HoldCo 1 PIK A-2 Notes(7) - 641 - 5.00% 31 Dec 2022
HOLDCO 2
EUR HoldCo 2 PIK A Notes - 2,476 - 8.00% 31 Dec 2022
ZAR HoldCo 2 PIK B Notes - 8,763 - 3.00% 31 Dec 2022
Gross Debt - Holding Company 14,200
Gross Debt - Total Group 20,194
(1) FX rates at the end of Q1:FY17 were R15.19:$ and R16.81:€. Balances are less unamortised issuance costs and exclude accrued (non-capitalised) interest.
(2) Amounts converted from Super Senior RCF Term Loan.
(3) Previously Super Senior RCF Term Loan.
(4) Previously Super Senior Liquidity Facility (excluding Facility A1 here); maturity extension to December 2018 at the Group’s option subject to satisfaction of
certain conditions.
(5) The portion of this debt relating to Zimbabwe was R229 million in Q1:FY17.
(6) Assumes 3.0% OID gross up on ZAR 2,250m.
(7) Assumes 95% of ZAR Super Senior Hedging Debt is converted into this facility (remaining 5% is written down).
EDGARS | WINTER 1610
Deal overview Purchaser details Transaction mechanics
• Legit chain identified as
potential asset for sale in
strategic review
• Strong interest from
range of potential trade
and financial purchasers
• Disposal improves Edcon’s
liquidity position and
intensifies focus on core
department stores and
specialist chain offerings
• Sale of business for
R637m cash
• Cash-free, debt-free
sale
• Sale of assets, going
concern basis
• Retailability - fashion retail
holding company: ~200
stores across SA, Namibia,
Botswana, Zambia
• Partnered by material
shareholder Metier Private
Equity: ~R6bn funds under
management
• Flagship chains Beaver
Canoe,Style
SALE OF LEGIT
11
Purchase consideration of R637m, subject to competition approval and requires the consent of certain of
the Group’s secured lenders
0.8x
3.1x
PRE-TRANSACTION POST-TRANSACTION
12.0x
2.7x
PRE-TRANSACTION POST-TRANSACTION
PRO FORMA OPERATING COMPANY CREDIT METRICS(1)
12
GROSS LEVERAGE (2) CASH INTEREST COVERAGE (2)(3)(4)
EDGARS | WINTER 16
(1) Based on Q1:FY17 LTM Group Adjusted EBITDA of R2,265m less Legit Q1:FY17 LTM EBITDA of R52m.
(2) FX rates at the end of Q1:FY17 were R15.19:$ and R16.81:€.
(3) Assumes annualised gross cash interest based on outstanding balances as at Q1:FY17 (except cash interest on Other Loans which is based on actual LTM results).
(4) 6 month JIBAR at the end of Q1:FY17 was 7.90% and 6 month EURIBOR at the end of Q1:FY17 was -0.18% (and therefore is assumed to be 0.0% based on applicable rate floor).
12
EXECUTIVE SUMMARY
CAPITAL STRUCTURE & TRANSACTION
MACRO ECONOMIC ENVIRONMENT
FINANCIAL REVIEW
STRATEGY & TURNAROUND INITIATIVES
NEW DEVELOPMENTS & WAY FORWARD
AGENDA
BOARDMANS13
22
23
24
25
26
27
(1)
-
1
2
3
4
09-2
013
11-2
013
01-2
014
03-2
014
05-2
014
07-2
014
09-2
014
11-2
014
01-2
015
03-2
015
05-2
015
07-2
015
09-2
015
11-2
015
01-2
016
03-2
016
Real GDP (y-o-y %) Unemployment rate (%)
GDP GROWTH AND UNEMPLOYMENT RATE
5
6
7
8
9
10
11
03-2
014
05-2
014
07-2
014
09-2
014
11-2
014
01-2
015
03-2
015
05-2
015
07-2
015
09-2
015
11-2
015
01-2
016
03-2
016
4
5.5
7
8.5
10
11.5
05-2
014
07-2
014
09-2
014
11-2
014
01-2
015
03-2
015
05-2
015
07-2
015
09-2
015
11-2
015
01-2
016
03-2
016
05-2
016
EXCHANGE RATES
PRIVATE SECTOR CREDIT EXTENSION (Y-O-Y %) REPO AND PRIME RATE
Source: SARB & StatsSA
8
10
12
14
16
18
20
22-0
7-20
15
05-0
9-20
15
20-1
0-20
15
04-1
2-20
15
18-0
1-20
16
03-0
3-20
16
17-0
4-20
16
01-0
6-20
16
16-0
7-20
16
USDZAR EURZAR
14
MACRO BACKDROP
04%
05%
05%
06%
06%
07%
07%
08%Q
1:20
14
Q2:
2014
Q3:
2014
Q4:
2014
Q1:
2015
Q2:
2015
Q3:
2015
Q4:
2015
Q1:
2016
INFLATION
-20
-15
-10
-5
0
5
Q2:
2014
Q3:
2014
Q4:
2014
Q1:
2015
Q2:
2015
Q3:
2015
Q4:
2015
Q1:
2016
Q2:
2016
-5%
0%
5%
10%
15%
01-2
014
03-2
014
05-2
014
07-2
014
09-2
014
11-2
014
01-2
015
03-2
015
05-2
015
07-2
015
09-2
015
11-2
015
01-2
016
03-2
016
Retail trade sales Textiles, clothing, footwear and leather goods
75
76
77
78
79
03-2
014
05-2
014
07-2
014
09-2
014
11-2
014
01-2
015
03-2
015
05-2
015
07-2
015
09-2
015
11-2
015
FNB/BER CONSUMER CONFIDENCE INDEX
RETAIL SALES HOUSEHOLD DEBT TO GROSS DISPOSABLE INCOME RATIO
Source: SARB & StatsSA15
MACRO BACKDROP
EDGARS
EXECUTIVE SUMMARY
CAPITAL STRUCTURE & TRANSACTION
MACRO ECONOMIC ENVIRONMENT
FINANCIAL REVIEW
STRATEGY & TURNAROUND INITIATIVES
NEW DEVELOPMENTS & WAY FORWARD
AGENDA
16
FY16 Q1:FY17
• Retail sales ↓ 1.3% ↓ 8.1%
• Cash sales ↑ 5.3% ↓ 2.7%
• Credit sales ↓10.2% ↓ 15.6%
• LFL Sales ↓ 3.2% ↓ 9.8%
FY16 Q1:FY17
• Gross profit ↓ 2.6% ↓ 12.8%
• Adjusted EBITDA ↓ 1.7% ↓ 53.8%
• Drive to empower and motivate employees
• Implement chain specific initiatives to improve performance
• IT & supply chain initiatives
• Fast track of specific growth initiatives
Challenging economic climate
Margins impacted by higher input costs and increased markdowns
New strategy with a focus on empowering people, customer centricity & simplicity
SA
LE
SP
RO
FIT
SS
TR
AT
EG
Y
17
KEY FEATURES
KEY CONSIDERATIONS FOR FY16 & Q1:FY17
• Introduction of NCR regulations on
affordability in September 2015 impacting
credit sales by approximately R297 million
• Significant weakening of the Rand
• Costs continue to be well managed in all
areas
- Store costs increased by 3%
- Other operating costs decreased by 4%
• Net gain of R4 141m on conclusion of
Exchange Offer offset by significant FX
losses on notes
• Deleveraging of €298 million on conclusion
of Exchange Offer
18
Q1: FY17FY16
• New NCR regulations continue to
negatively impact credit sales
• Supply restricted due to credit risk by large
number of trading partners
• Business managed for cash flow
• Clearance of excess inventory which will
continue into Q2:FY17
• Significant vacancies in the office making
sales and customer focus limited
• Restructuring to chain profit & loss with
35% reduction in head office staffing
numbers, interrupted sales focus
• Majority of senior executives involved in
creditor transaction and daily cash
management
• Warm winter and an Easter shift
• Cash sales grew 8.2% while
credit sales reduced 8.5%
- Good performance from cosmetics,
homewares and menswear offset by weaker
sales from ladieswear
- Clearance markdowns
• Margin impacted by:
- Declining Rand increasing input costs
- Clearance markdowns and promotional
activity
• 49 new stores opened, with 79% of
capex spend on expansion
- 10 Edgars, 6 Boardmans, 14 Edgars Active,
5 Red Square, 1 Edgars sales store and 13
mono-branded stores
• 23 stores closed
- 7 Edgars, 4 Edgars Active,
6 Boardmans and 6 mono-branded stores
EDGARS DIVISION - FY16
YTD
FY16
YTD
FY15
Retail sales growth (%) 0.0 1.8
LFL sales growth (%) (2.8) (2.6)
GP margin (%) 38.5 39.5
Total number of stores 559 533
Capex spend (R’m) 263 577
Av space (‘000sqm) 846 809
34 stores · LSM 7-10
180 stores · LSM 4-7
206* stores · LSM 6-10
47 stores · LSM 5-10
7 stores · LSM 5-10
85 stores · LSM 5-10
MONO-BRANDED
STORES
*Includes 2 Edgars sales stores and 1 Edgars
Emporium
19
DISCOUNT DIVISION – FY16
• Cash sales grew 5.1% while credit
sales reduced 15.2%
- Menswear performed well
- Decline in sales from childrenswear &
footwear
• Margin well managed
- 10 bps increase due to competitive
pricing
• 39 new stores in the year, 90% of
capex spend on expansion
- 24 Jet stores,11 Legit stores & 4 Jet
Mart stores
• 26 stores closed
- 19 Jet, 4 Legit store & 3 Jet Mart
stores
YTD
FY16
YTD
FY15
Retail sales growth (%) (2.2) 2.5
LFL sales growth (%) (3.8) (0.3)
GP margin (%) 35.0 34.9
Total number of stores 732 719
Capex spend (R’m) 78 180
Av space (‘000sqm) 642 633
212 stores · LSM 5-8
392 stores · LSM 4-7
128 stores · LSM 4-7
20
CNA DIVISION – FY16
• Cash and credit sales declined
by 3.4% and 17.9% respectively
- Decline in average trading space
of 6.2%
- Performance across all
categories impacted
• Margin impacted due to changes
in product mix
• Poor response to 2015 revamp of
stores
• Business requires new strategy
and engineering
YTD
FY16
YTD
FY15
Retail sales growth (%) (7.2) (5.6)
LFL sales growth (%) (7.1) (7.5)
GP margin (%) 29.9 30.5
Total number of stores 198 195
Capex spend (R’m) 13 14
Av space (‘000sqm) 79 84
198* stores · LSM 7-10
*Includes 9 Samsung stores
21
• Cash sales declined by 4.7%
and credit sales reduced 15.3%- Homeware performed well however
all other categories were affected
- Increase in markdowns
- Lack of stock from suppliers
- Easter shift
- Warm winter
• Margin impacted by:
- Weak Rand
- Markdowns
• 1 new Edgars store opened
• 4 stores closed (3 Edgars and 1
Edgars sales store)
Q1:FY17 Q1:FY16
Retail sales growth (%) (10.2) (1.1)
LFL sales growth (%) (12.0) (5.4)
GP margin (%) 40.4 43.0
Total number of stores 203 207
Capex spend (R’m) 46 (5)1
Av space (‘000sqm) 731 717
203 stores* · LSM 6-10
*Includes 1 Edgars sales store and 1
Edgars Emporium store
22
EDGARS DIVISION – Q1:FY17
1Landlord contributions received in excess of capital expenditure.
• Cash sales declined by 2.4%
& credit sales reduced 20.8%
- Decline in sales across all
categories
- Stock availability from suppliers
- Warm winter
- Uncompetitive entry price points
• 6 new Jet stores in the year,
67% of capex spend on
refurbishment
• 7 Jet stores closed
Q1:FY17 Q1:FY16
Retail sales growth (%) (9.2) (3.3)
LFL sales growth (%) (9.4) (4.7)
GP margin (%) 32.0 33.9
Total number of stores 519 520
Capex spend (R’m) 21 26
Av space (‘000sqm) 586 586
391 stores · LSM 4-7
128 stores · LSM 4-7
23
DISCOUNT DIVISION – Q1:FY17
• Cash sales flat &
credit sales reduced 11.9%
- Good performance from cosmetics,
homeware, stationery, entertainment &
digital
- Ladieswear and cellular underperformed
- Stock supply
- Heavy clearance
• Margin impacted by:
- Weaker Rand
- Change in product mix
• 20 new stores opened, with 83% of
capex spend on expansion
- 1 Edgars Active, 4 Boardmans, 3 Legit, 1
Red Square, 3 CNA (incl. Samsung) and
8 mono-branded stores
• 3 stores closed
- 1 Legit and 2 CNA stores
Q1:FY17 Q1:FY16
Retail sales growth (%) (3.6) 2.1
LFL sales growth (%) (7.8) 0.4
GP margin (%) 33.6 33.9
Total number of stores 780 747
Capex spend (R’m) 35 36
Av space (‘000sqm) 261 256
MONO-BRANDED
STORES
181 stores · LSM 4-7
38 stores · LSM 7-10
199* stores · LSM 7-10
48 stores · LSM 5-10
7 stores · LSM 5-10
93 stores · LSM 5-10
*Includes 10 Samsung stores
214 stores · LSM 5-8
24
SPECIALTY DIVISION – Q1:FY17
KEY FINANCIALS
25
EDGARS
STATEMENT OF COMPREHENSIVE INCOME
26
FY15 FY16 % change (R millions) Q1:FY16 Q1:FY17 % change
27 510 27 147 (1.3) Retail sales 6 500 5 973 (8.1)
10 245 9 974 (2.6) Gross profit 2 470 2 153 (12.8)
37.2 36.7 (0.5)pts Gross profit margin 38.0 36.0 (2.0)pts
1 256 1 416 12.7 Other income 322 336 4.3
(6 277) (6 463) 3.0 Store costs (1 583) (1 703) 7.6
(4 666) (4 665) (0.0) Other operating costs (950) (1 248) 31.4
747 725 (2.9)
Share of profits of associates
and insurance business 161 199 23.6
1 305 987 (24.4) Trading (loss)/profit 420 (263) (62.6)
2 684 2 639 (1.7) Adjusted EBITDA 695 321 (53.8)
EDGARSJET
ADJUSTED EBITDA
27
FY15 FY16 %
change (R millions) Q1:FY16 Q1:FY17 % change
1 305 987 (24.4) Trading (loss)/profit 420 (263) (62.6)
1 079 1 004 Depreciation & amortisation 249 244
37 19 Net asset write off(1) 5 5
(42) (29)
Gain on sale of written down trade
receivables(2)
- 8 EBITDA loss/(profit) on brands exited(3) (1) 3
52 Rand depreciation adjustment(4)
305 598 Non-recurring costs(5), (6) 22 332
2 684 2 639 (1.7) Adjusted EBITDA 695 321 (53.8)
1) Relates to assets written off in connection with the closure of stores, net of related proceeds.
2) Relates to gains realised on the sale of a portfolio of written down trade receivables.
3) Adjustment to remove the EBITDA gain or loss achieved from certain brands being Express, Geox, Lucky Brand and One Green Elephant which the Group has strategically agreed to exit.
4) Foreign exchange gains recognised below the trading profit line which hedged the exposure in cost of sales as a result of the significant devaluation of Rand.
5) Non-recurring costs in FY2015 related to the sale of the trade receivables book in the amount of R73 million, employee restructure costs of R69 million and onerous lease charges of R137 million, post-retirement medicalaid buyout credit of R23 million, once-off lease adjustment of R49 million; and non-recurring costs in FY2016 related to employee restructure costs of R72 million, onerous lease charges of R123 million and R1 millionlease cancellation cost, post-retirement medical aid buyout cost of R26 million, once-off lease adjustment of R33 million, penalty costs of R57 million, transitional project related expenditure of R70 million and strategicinitiative costs of R216 million.
6) Relates to costs associated with the corporate and operational overhead reductions of R5 million in Q1:FY16, onerous lease reversals of R11 million in Q1:FY16, transitional project related expenditure of R78 million inQ1:FY17, strategic initiative costs of R246 million (Q1:FY16 R28 million) and a non-recurring of R8 million relating to our strategic partnership with Absa in Q1:FY17. RED SQUARE
OTHER OPERATING COSTS STORE COSTS
• Lower depreciation charge on non-store assets
• Reduction in accrued bonuses
• IT costs well managed
• Renegotiated contracts curbing costs
• Non-recurring costs increased due to various strategic initiatives
• Store costs increased by 3.0%
- improved stock control, reduced transactional fees, decrease
in asset write-offs, reduction in straight lining of leases under
IAS17, offset by an increase in security and utility costs
• Rental and manpower constitute 62.0% of total
costs for FY16 (59.6% in FY15)
- Rental and manpower costs increased by 11.4% and
2.0% respectively
(R millions) FY15 FY16
%
change
Other operating costs 3 804 3 650 (4.0)
Store card administration 557 417 (25.1)
Non-recurring costs 305 598 96.1
Total other operating
costs 4 666 4 665 (0.0)
28
COST ANALYSIS - FY16
BOARDMANS
OTHER OPERATING COSTS STORE COSTS
• Renegotiated contracts continue to curb costs
• Decrease in remuneration through head office head count reductions
• Non-recurring costs increased due to various strategic initiatives mainly driven by the transaction with creditors
• Store costs increased by 7.6% due to
increased rental costs, higher utility costs and
an increase in manpower costs
• Rental and manpower constitute 59.9% of total
costs for Q1:FY17 (61.8% in Q1:FY16)
- Rental and manpower costs increased by 10.2%
and 7.7% respectively
(R millions) Q1:FY16 Q1:FY17
%
change
Other operating costs 836 816 (2.4)
Store card administration 92 100 8.7
Non-recurring costs 22 332
Total other operating
costs 950 1 248 31.4
29
COST ANALYSIS - Q1:FY17
EDGARS
-292
1 955
-604
-88
-1 783 1 456 1 693
1 716
1 288
CASH FLOW - FY16
30
(271)
-49 28
Working Capital
Trade receivables,
other receivables &
prepaymentsa)
Inventories
Trade and
other payables
Opening cash
balance
Operating
activities
Net financing
costsTaxCapexWorking
capital
Closing cash
balance
Financing
activitiesb)
R’m
a) Includes R29m from proceeds of sale from trade receivables.
b) Includes a R1,532m for derivatives settlement and R3m for currency adjustments.
31
-135-173
-61 -280
-35
1 112
103
1 693
Working Capital
Trade receivables,
other receivables &
prepayments
Trade and
other payables
CASH FLOW - Q1:FY17
31
Opening cash
balance
Operating
activities
Net financing
costsTaxCapexWorking
capital
Closing cash
balance
Financing
activitiesa)
R’m
a) Includes a R1m for cash currency adjustments.
(163)
-171 199
Inventories
EXECUTIVE SUMMARY
CAPITAL STRUCTURE & TRANSACTION
MACRO ECONOMIC ENVIRONMENT
FINANCIAL REVIEW
STRATEGY & TURNAROUND INITIATIVES
NEW DEVELOPMENTS & WAY FORWARD
AGENDA
32 EDGARSEDGARS
BURNING PLATFORM 2: OPERATING PERFORMANCE
• Losing the battle for customers
• Significant market share loss
• Addiction to promotions
• Ageing inventory
• Worst-in-market sales productivity
• Dated supply chain
• Complex IT systems, not supporting the
business, costly to run and to maintain
• Banking centric credit offering
• Uncompetitive cost baseCOST
SALES & GP
GROWTH
ENABLERS
33 EDGARSBOARDMANS
CONTEXT – EDCON’S TRADING EBITDA (EXCL. C&FS) IN 4Y DECLINE
Note: Data also excludes Zimbabwe
2 710 2 850
2 364
3 061
3 408
2 511
1 666 1 461
1 324
-
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
EBITDA, R million
34
TWO KEY PRINCIPLES OF NEW STRATEGY
• Head office cost reduction and change in
operating model: eliminate rework, simplify
business, drive efficiency
- 35% reduction in headcount and cost
- Gives chains full financial and management control
• Introduction of a procurement team and tendering
processes for goods not for resale (GNFR), providing
a lower cost plus a simpler and well governed
strategy
• Immediate cessation of square meterage rollout
with no defined property strategy: leverage existing
space to enhance productivity and returns
• Enhanced buying prices through eliminating
excess use of agents and brokers; focus on local
sourcing
• Relentless focus on “customer service”: move
from focus on “transaction”, “efficiency” and
“checklists” to focus on customer experience and
reward (loyalty, NPS, aligned incentives)
• Move to margin enhancement: management on
“open to buy”, less reliance on and better planning of
promotion, control of markdown, “SKU”
rationalisation, focus on entry price points and
decluttering of merchandising & marketing
• Re-focus on a more profitable private label
portfolio with 3x the productivity of international
brands – better fit, exclusive, less impacted by ZAR
devaluation
• “Reverse” strategy to win at all costs on
international brands – onerous contracts, capex
hungry, high price perception, not “season” friendly;
R64m loss in FY16
• Focus on digital and Omnichannel as growth
engine35
IMMEDIATELY BRING
COST UNDER CONTROL
SET UP BUSINESS FOR
TOP LINE AND MARGIN GROWTH
NEW EDCON STRATEGY BASED ON 3 PILLARS
• Differentiated model with
service as competitive
advantage
• Proposition based on deep
understanding of target
customer base
• Embedded in corporate
DNA through tools (NPS,
loyalty) and processes
(communication, KPIs)
• Clearer accountabilities
and organisation structures
following HQ restructuring
• Simpler product proposition
with less brands
• Simpler way of working,
e.g. smaller vendor
landscape
• Recognise and empower
top performers
• Remove bottlenecks
created by past decisions,
e.g. empower people
through better IT and
Supply Chain
CUSTOMER CENTRICITY SIMPLICITY PEOPLE EMPOWERMENT
36
STRATEGIC INITIATIVES ADDRESS KEY ISSUES
KEY ISSUES INITIATIVES
GROWTH
ENABLERS
COST
•Headcount: inflated head office size, e.g. senior
management and support functions above benchmark
•GNFR: not systematically managed, e.g. no process
compliance, low levels of supplier consolidation
•COGS: high degree of indirect sourcing, with agents
driving up price paid
Lean HQ: headcount reduction and introduction of
new operating model (chains taking P&L ownership)
GNFR reduction: renegotiation/tendering of key
contracts, introduction of demand control measures
COGS: introduction of in-house sourcing function to
increase share of direct sourcing
3
1
2
•Edgars: significant loss of market share due to low
customer appreciation / loyalty vs competitors
•Jet: losing market share vs value competitors due to
insufficient value focus; too high cost for value player
•Specialty: broad portfolio of underperforming brands,
especially international brands
Edgars turnaround: tactical store performance
improvement (service, presentation, pricing); strategic
process changes (e.g. category management)
Jet lean discount re-positioning: store experience,
assortment simplification, EDLP pricing
Specialty portfolio strategy: decide which brands/
banners are part of future Edcon; optimise performance6
5
4
•Customer service: past focus on efficiency; no
infrastructure in place to capture customer POV
• IT: year-long underinvestment in IT leading to
competitive disadvantage, e.g. in data availability /
accuracy, customer experience, IT related risk
•Supply Chain: past focus on logistics cost reduction
leading to high E2E cost, and low stock availability
•Banking centric credit offering
NPS: introduce net promoter system across Edgars and
Jet stores including relevant feedback loops
IT strategy & renewal: determine required system
upgrades to manage risks and enable future growth
Supply Chain: developing end state and short-medium
initiatives to cut cost and accelerate performance
Drive new account openings and address average
account limits
9
7
8
10
37
LEAN HQ: SOLUTION AND FINANCIAL IMPACT1
*Includes R5M of recently approved employees (Bench candidates)
**Out of scope spend comprised of: Store FS (R47M); Call Centre FS (R134M); Store Cellular (R107M); IT (R41M); Securex (R23M)
***Out of scope savings includes Store Cellular (R16M), Store FS (R9M) and IT (R7M)
Note: Includes R60M savings on top gear bonus. Includes consulting and staff fees. Excludes potential retention bonus saving of R21M/yr for the next 3 years
FY16 baseline is FY16 remuneration budget adjusted to include spend on casuals, external consulting and staff costs; Includes 111 vacancies (R58M), excludes 11 bench candidates (R9M)
• Addressable
spend: R1,554M
• Out of scope
spend: R352M**
• Gross savings:
R422M* (27% of
addressable spend)
• R44M reinvested in
strategic growth areas
• Sourcing forex impact
(R20M)
• Out of scope
savings*** (R32M)
Net savings of R389M (after reinvestments)
38
EDCON NON-STORE LABOUR COST (FY16, RM)
GNFR: SOLUTION / KEY INITIATIVES
CATEGORY
FY17
IMPACT
ZARM
INITIATIVE
PROPERTY 28
• Renegotiate leases of stores coming up for renewal based on store
segmentation (Edcon vs landlord negotiation position)
• Renegotiate with biggest landlords across whole portfolio
ADVERTISING 121• Consolidate advertising suppliers: one parent agency per chain with strict rate
card based cost control on media buying and production
UTILITIES 49
• Introduce and enforce energy policy to manage demand, e.g. switching off
equipment over-night, revised temperature guidance for air-conditioning, use of
energy-saving lighting
SECURITY 18• Vendor consolidation: 2 vendors across entire network; potential additional cash
benefit from selling Securex (in-house security operation)
PROFESSIONAL
SERVICES24
• Tightened travel and communications policies
• Replacement of travel agent to enable better cost control
OPERATIONS (OTHER) 15• Optimise spend on stationary & wrappings and repairs & maintenance
• Selectively introduce shopping bag charge
OTHER 35 • Renegotiation and stricter management of selected other contracts
TOTAL 290
39
2
COGS
Where to
Source
from?
• Driving a “competitive” sourcing
model with effective utilization of
multiple country and channel options
Whom to
Source
from?
• Sourcing the “best fit” country /
channel / vendor options
considering cost, quality, and
reliability factors
How to
Source?
• Optimising placements with the
correct calendar share and lead
times (LLT / SLT / QR)
APPROACHBURNING PLATFORM
• Level of direct sourcing significantly below
potential
40
3
23%30%
45%39%
33% 31%
2015 2016
Edcon
-13%
+31%
Edcon Edgars Jet Speciality
I&T
DG
LR
Note: - Values exclude RPL
Source: OCR & Offshore Placement confirmations
30%42%
51%36%
19% 22%
2015 2016
Edgars
+38%
-28%
+14%
13%22%
51% 34%
35%44%
2015 2016
Speciality
-34%
+66%
+25%
20% 22%
39%43%
41%34%
2015 2016
Jet
+10%
+14%
-16%-3%INDIRECT + TH
DIRECT LOCAL
/ REGIONAL
DIRECT
GLOBAL
EDGARS TURNAROUND PROGRAMME UNDERWAY
INITIATIVES KEY ACHIEVEMENTS TO DATE
TACTICAL
INITIATIVES
Optimize marketing plan • New marketing plan with less promos
Optimize markdowns & clearance • New guidelines & tool to improve markdowns
Simplify store administration • Store communications drastically simplified
Drive financial services penetration • Financial Services pilots over-performing chain
Rebuild home offering • -
Improve store presentation • Strong sales uplift with service & VM pilots
• Significant NPS improvements in pilot stores
STRATEGIC
INITIATIVES
Improve customer experience
Review positioning of brands • Agreed adjustments to positioning & brands ptfolio
Improve category management • Repricing delivering very positive results
Cluster stores & localize offer • -
Improve leadership & engagement • -
a
b
c
d
e
f
g
h
i
j
k
FOCUS OF
STORE
PILOTS TO
DATE
41
4
INITIATIVES KEY ACHIEVEMENTS TO DATE
TACTICAL
INITIATIVES
Optimize Marketing plan• Refocus on EDLP & limited volume value driven promotions.
Maximising available marketing channels.
Refresh pricing strategy for CFA and General
Merchandise
• Increased focus on driving value message. New guidelines
established for SKVIs (~30% of CFA business) and General
Merchandise areas.
Reduce and optimize assortment• Summer ’16 assortment revised, ~10-20% reduction in options vs.
last year.
Align visual merchandising and layout to drive
value perception and improve store
experience
• Project in progress, 65 stores (~30% of sales) to be completed by
end-June. Sales & GP have improved in Initial 15 pilot stores (stores
currently out-performing Chain by 3.8% in sales & 8% in GP).
Grow Home offering • Strong performance in Home Softs (Bedroom growth YTD).
Optimise vendor base • Movement towards Short & Quick response model
Lean HQ and retail operations• Headcount reductions completed, marketing costs reduced by 15% to
date.
STRATEGIC
INITIATIVES
Improve customer experience• Quick wins identified and being rolled out. – new look & feel being
rolled out in line with new layout roll-out.
Increase stock turns to 5.9
• 3 year plan being put in place to achieve this. Quick & Short lead time
vendor base being developed e.g. >R15m placed with Eddels (away
from indirect vendors).
Optimise store footprint• 3 year plan being finalised on store closures and consolidations. New
store format revised
Leverage loyalty and club programs• New account offering and benefits being tested. Loyalty programme
will be re-launched in line with company initiative.
a
b
c
d
e
f
g
h
i
j
k
JET LEAN DISCOUNT PROGRAMME UNDERWAY
42
5
• Review and rationalise product assortment
• Improve value perception
• Fix poor store performance
• Capitalise on online sales growth as key contributor to overall sales growth
• Review product mix and assortment
• Improve shopping experience
• Capitalise on online sales growth
• Review and improve product assortment
• Improve store profitability
• Review and improve product assortment and value perception
• Improve in-store experience
• Improve stock turns to deliver better GMROI and improve fast fashion perception
• Review product assortment to ensure we have differentiated offer
• Fix poor store performance
• Review promotional strategy
• Improve existing business performance
• Grow data and airtime sales
• Review and enhance in-store service model and cross-selling
SPECIALTY KEY INITIATIVES
Cellular
43
6
CUSTOMER CENTRICITY: 3 PILLARS
CUSTOMER
SEGMENTATION & LOYALTY
NPS DESIGN
AND IMPLEMENTATION
CONTINUOUS IMPROVEMENT AT
THE STORE LEVEL
• Roll-out behavioral customer
segments across chains
• Adoption of customer-centric
thinking in all elements of chain
• Leveraging & improving existing
loyalty program to deliver chain
value proposition
• Testing NPS across stores through
proxy and inner loop pilots
• Activating the outer loop discussion
in the HQ
• Rolling-out NPS to all chains/
stores
• Creating a full understanding of
customer-centric issues at the store
• Prioritizing based on cost & benefit
and overseeing the resolution
together with ROMs & DOMs
INSTIL CUSTOMER CENTRIC CULTURE THROUGHOUT ORGANIZATION
• Embark on a culture change programme that places the customer at the forefront of business conversations –
Voice of the Employee included here.
• Bring the voice of the customer into Edcon meetings and decisions
44
7
IT: WHAT IS THE CURRENT STATE OF THE IT ENVIRONMENT AT EDCON?
• Today’s IT is far too expensive: 3.4% (2.9% excl. Financial Services) vs. Gartner’s benchmark of 1.5% for retail
• Running old equipment: 85% of tills are older than 7 years; 67% of store servers are above the average
refresh age
• We have a series of critical IT risks requiring mitigation and investment to de-risk the business
• We manage a bespoke and highly complex IT landscape adding cost and risk
• Our IT function is not constructed to enable business priorities
• We are too heavily outsourced (95% of our effort) which is well outside the Retail benchmark of 73%
• Our service delivery to the business is poor – too many systems issues and crashes, support services not inline
with business expectations and industry standards
• Our customers’ experience is significantly behind our competitors – long queues at tills with customers walking
away from purchases, no omni-channel capability
• Our people are forced to use workarounds and ‘stick plaster’ solutions which adds costs to the business
and IT, and reduces our speed to market
45
8
OUR IT STRATEGY
46
8
Fix the Operating Model
Renegotiate our Contracts
Deliver a new IT Architecture
Reduce Business & IT Risk
Fix the ‘Core’ IT Systems
Enable the Growth
1
2
4
5
6
3
Edcon IT Strategy
1
2
3
4
5
6
EDCON
IT STRATEGY
TECHNOLOGY INVESTMENTS WILL REMOVE COMPLEXITY AND RISK, DRIVE AGILITY AND SPEED
• Fragmented
• Point-Point
• Inflexible
• Fragile
CURRENT STATE
• Structured
• Scalable
• Flexible
• Agile
TARGET STATE
• Align IT Architecture delivery to business process /
activities
• Move from single point solution to enterprise wide
modular solutions
• Consolidate similar business capabilities
• Create single view of Product, Inventory, Customer
and Supplier data
• Use of single Integration Platform
• Build expertise of buying and integrating package
technologies
• Establish a common language across domains
• Support alignment of IT landscape to business ambitions
• Improvement in delivering business value of IS projects
• Reduction in operating costs through reduced delivery effort
and reduction in number of tickets
• IT budget re-allocated to strategic investments
• Reduce time to launch new services/ products with
changing business environment (e.g. Launch of
multichannel offering )
• Reduction in system support and maintenance costs (e.g.
less packages and interface to maintain )
• Improvement in service levels and business satisfaction47
8
KEY FEATURES OF TARGET ARCHITECTURE HOW IT WILL BENEFIT EDCON
SUPPLY CHAIN: BURNING PLATFORM
• Significant end to end cost base
• Stock not available to customers
• High lead time variability hinders planning
• High share of promotions and markdowns
48
9
SUPPLY CHAIN: POTENTIAL OPPORTUNITIES
BOOST AVAILABILITY AND SALES
Required
stock
allocation
Reduce lead
time
Reduce
stockroom
processing
time
Objectives
Drivers
What may have to change – emerging ideas
REDUCE END TO END SUPPLY CHAIN COSTS
Reduce
inventory
Reduce stock
room cost
Reduce DC
cost
Reduce
markdowns
Reduce
logistics cost
Ratio packs
Smoothen volumes
Higher delivery frequency
Floor-ready
Central stockroom / hold back stock
Improve DI
Smoothen volumes
Optimise staffing
Floor-ready delivery
Central stockroom / hold back stock
Optimise size & staffing
Optimise IST
Suppliers
Network
Process
Resources
Full potential (FY20+) gross benefits (preliminary)
~R100M (avoid
lost sales)
Cut lead time
by 3-4 days
Cut lead time
by 1-2 days
~140M (interest
reduction)
~R170M
(stockroom
rental &
staffing)
~R80M
(multiple
initiatives incl.
3pl)
~R40M increase
~R90M
reduction in
markdowns
Reduce stock
losses /
damages
Ratio packs
Floor-ready delivery
Central stockroom
Higher delivery frequency
Optimise IST
As per
markdowns
(duplicative)
Network optimisation
49
9
CREDIT SALES: BURNING PLATFORM
Source: initiative team assessment
• Bank centric new account strategies not
aligned with retail sales
• NCR affordability legislation negatively
impacts on credit sales
• Significant drop in new account application
volumes
• Even greater drop in credit limit increase
offers
50
10
CREDIT SALES: NEW ACCOUNT OPPORTUNITIES
NEW ACCOUNT VOLUMES
• Application volumes reduced by ~30% due to new NCR
affordability regulations
• Number of opened new accounts however increased due to:
• Introduction of Edcon funded portfolio in Q4:FY15
• Change in internal Bank employment confirmation policies due to
additional affordability documentation
• New account volume growth addressed
NEW ACCOUNT LIMITS
• New account average limits as much a 70% lower than
industry peers
• Conservative Bank centric lending strategy not aligned with Retail
business
• Negotiating amended new account flow volumes with Absa
• Increased new account flow to Edcon funded portfolio supported
with higher initial limits
• Higher new account limits to support short and long term credit
sales
11%
22%
7%
Increased flow of new
accounts to Edcon funded
portfolio will support Retail
aligned new account credit
limits
51
10
ROADMAP WITH 9 INITIATIVES
2015 2016
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Growth
Enablers
Cost
IT renewal implementation
Implementation
Implementation
Implementation
Implementation
Operating Model
COGS reduction3
Supply chain & logistics strategy9
Specialty portfolio strategy6
Customer centricity7
IT strategy & renewal plan8
Jet: Lean discount re-positioning5
Edgars turnaround / Customer centricity4
Lean HQ & Operating Model1
GNFR2
STATUS
• Savings delivery
underway
• Savings largely
achieved
• Savings delivery
underway
• Quick wins
underway, strategy
being finalised
• Pilot phase
• Pilot phase
• Strategy being
finalised
• Roll-out phase
• Strategy being
finalised
Implementation
Implementation
Implementation
52
EDGARS
EXECUTIVE SUMMARY
CAPITAL STRUCTURE & TRANSACTION
MACRO ECONOMIC ENVIRONMENT
FINANCIAL REVIEW
STRATEGY & TURNAROUND INITIATIVES
NEW DEVELOPMENTS & WAY FORWARD
AGENDA
53
PHASE 2 OF FAST TRACK WITH NEW INITIATIVES
AMBITION: EDCON FULL POTENTIAL TURNAROUND TO REALIZE VALUE IN THE NEXT 2 YEARS
3.1 GNFR: tracking and continuous
improvement
1.3 Results Delivery Office (RDO)
Fast Track support5
4.3 IT: overhaul infrastructure to bring
in line with chain requirements,
optimise cost base, minimise risk
1.1 Tactical initiatives: Focus on
trading optimisation1
1.2 Strategic initiatives: Focus on
customer experience and range
planning2
4.2 Property: strategy, incl. future
store formats/footprint
3.3 COGS: sustainable shift to direct
sourcing
4.1 NPS: system roll-out and staff
training (Edgars/Jet)
3.2 Supply Chain: restructure service
model to bring in line with chain
requirements
3.5 Omnichannel strategy
Governance – implementation and
orchestration of initiatives
Communication – plan and
implementation support
Change management – implement
sponsorship spine
Tactical program support
3.4 Loyalty: programme review,
deliver value
Operational ExcellenceHigh Performance
Infrastructure
Edgars
Turnaround
Jet
Lean discount repositioning
2.1 Jet lean discount
4.4 HR: Talent screening, assessment
and risk mitigation
1 3 42
Potential new
initiatives under
fast track umbrella
Potential new
initiatives under
fast track umbrella
3.6 Credit/FS turnaround
Future initiatives
54
EXECUTIVE APPOINTMENTS
EDGARS | WINTER 1655
• Richard Vaughan has been appointed as CFO, replacing Toon Clerckx
who has returned with his family to Belgium. Richard has been the deputy
group CFO for 4 years, is a qualified Chartered Accountant and has
significant experience in a diverse set of roles including with Goldman
Sachs and Deutsche bank.
• Andrew Levermore, the former Chief Operating Officer of the Edgars
Division has been promoted to Chief Executive of Edgars (Bernie
Brookes was previously acting in the Edgars Chief Executive role);
• Urin Ferndale, who has spent nearly 16 years at Edcon in various senior
management roles and has a wealth of retail experience, has been
appointed Chief Executive of the Jet Division following the decision by
Andy Williams to return to England for family reasons; and
• Andy Jury, who has significant retail and financial experience and was
previously Edcon’s Head of Strategy, has been promoted to Chief
Executive of the Specialty Stores Division following a decision by Garth
Napier, who had indicated that he would move once the Group advanced
the change in its debt position, has decided to pursue other interests
outside the Group.
EDGARS ACTIVE
THANK YOU
FY16 & Q1:FY17
CONSOLIDATED
RESULTS
For more information
Our website: www.edcon.co.za
Edcon contacts for more information:
General Manager Finance
Odet Hayes
EDGARS