SPORTS DIRECT INTERNATIONAL PLC
Capital Markets DayWednesday 9 September 2015
Dave ForseyCHIEF EXECUTIVE
3SPORTS DIRECT INTERNATIONAL PLC / Capital Markets Day / Wednesday 9 September 2015
Aintree
Glasgow
Aintree
Agenda
Welcome and Strategic review Dave Forsey, CEO 12:45 pm
Baltics Market Joint Venture Are Altraja and Anti Kalle, Sportland founders 1:00 pm
Premium Lifestyle Division Dave Forsey, CEO 1:45 pm
Outlook and Q & A Senior Management 2:00 pm
Refreshments 2:15 pm
Shirebrook Warehouse and Retail tour 2:30 pm
Coaches depart for Chesterfield 4:00 pm
Group Strategy: Review
4
• Unrivalled depth and breadth of product choice at
the best available prices
• Continuing roll-out of large format city centre stores
• Targeting c. 60 store openings across Sports Retail
this year
• Continued enhancement and investment in the
existing store portfolio
Aintree
SPORTS DIRECT INTERNATIONAL PLC / Capital Markets Day / Wednesday 9 September 2015
Glasgow
Under Armour area: Glasgow
Group Strategy: Review
5
• Leading European partner with third party brands
including Nike, Adidas, Under Armour and Puma
• Phase 3 of development of our Shirebrook
National Distribution Centre nearing completionAintree
SPORTS DIRECT INTERNATIONAL PLC / Capital Markets Day / Wednesday 9 September 2015
• Further combined gym and retail opportunities
in the UK
• Successful UK launch of Click and Collect
6SPORTS DIRECT INTERNATIONAL PLC / Capital Markets Day / Wednesday 9 September 2015
Sports Direct Campus, Shirebrook
Brands: Wholesale
7
• Expected A&P spend FY16 between £10 and £20m
• Focus on heritage products within key Group brands
• Further develop business in the Americas and Asia
• Reduction in operating costs from the consolidation of back
office functionsAintree
SPORTS DIRECT INTERNATIONAL PLC / Capital Markets Day / Wednesday 9 September 2015
Brands: Licensing
• Licensing model still regarded as key driver of Brands Division
growth and profitability
• Focus on growth in the Americas, Middle East and Asia
• Sports Direct Retail licensing continues to grow with 14 stores
open in Malaysia and 13 open in the Middle East
BALTICS PARTNERSHIP
SEPTEMBER 2015
VIDEO
AGENDA
1. Who we are2. Why we do it3. What is our market4. How we do it5. Innovative Demand Creation & Communication6. Vision for 2020
1. Who we are?
ANTI KALLE (45)Education: BBA Law, University of Tartu 2006
MBA International business, EBS 1995BBA Economics, Tallinn Technical University 1993
Member of Management Board - Sportland International GroupSportland Eesti ASAS Jalajälg, BC ViimsiMTU SÜKK
ARE ALTRAJA (44)
Education: MBA International business, EBS1995BBA Engineering, Estonian Agricultural Academy 1993
Member on Management Board - Sportland International GroupSportland Eesti AS AS JalajälgFC ELVAMTÜ SÜKKEstoninan Football Association
2. Why we do it?
MISSION
To make the lives of young peoplemore interesting, better and emotional
through our products and services.
3. What is our market
THEBALTICS
ESTONIA
LATVIA
LITHUANIA
OVERVIEW – BALTICS
ESTONIA
ESTONIA• POPULATION: 1.25M (-10%)• CAPITAL: TALLINN (0.4M)• GDP/CAPITA: EUR 12.8K• AV. INCOME: 930 EUR• LANGUAGE: ESTONIAN
LATVIA• POPULATION: 2.0M (-10%)• CAPITAL: RIGA (0.8M)• GDP/CAPITA: EUR 10.7K• AV.INCOME: 700 EUR• LANGUAGE: LATVIAN
LITHUANIA• POPULATION: 3.0M (-15%)• CAPITAL: VILNIUS (0.5M)• GDP/CAPITA: EUR10.8K• AV. INCOME: 650 EUR• LANGUAGE: LITHUANIAN
LITHUANIA
LATVIA
RIGA
TALLINN
VILNIUS
POPUL. 430KSOB 60%
POPUL. 550KSOB 50%
POPUL. 800KSOB 80%
MARKET OVERVIEW
MACRO CONSUMER MARKETPLACE BRANDS & CATEGORIES
▪ GROWTH IN BALTICS ISHOLDING UP FAIRLY WELL, GIVEN THE RUSSIAN TURMOIL
▪ EXPORTS AND INVESTMENTS ARE AFFECTED BY GEOPOLITICAL UNCERTAINTY, WHILE DOMESTIC DEMAND REMAINS STRONG.
▪ GDP FORECAST FOR 2015▪ ESTONIA – 2.1%▪ LATVIA – 1.9%▪ LITHUANIA – 2.3%
▪ YOUNG CONSUMER MORE AND MORE AS “WORLD CITIZENS” – ATTRACTED BY GLOBAL TRENDS, STUDYING & TRAVELLING ABROAD.
▪ CONSUMERS HIGLY DIGITIL IZED. OVER 50% OF PHONES ARE SMARTPHONES, INTERNET PENETRATION OVER 70%
▪ SPORTS GROWING BUT GENERAL ISSUE OF KIDS NOT PHYSICALLY ACTIVE
• SHOPPING IS HAPPENING IN MALLS. SPORTING GOODS & MONOBRAND ARE THE MAIN CHANNELS.
▪ DIGITAL GROWING, 15% OF CURRENT NIKE VOLUMES IN THE MARKET (MOSTLY CROSS-BORDER)
▪ SDI WITH FIRST STORES. IMPACT PRIMARILY MAINSTREAM SPORT STORES,
▪ POLISH SIZEER OPENED 2 STORES IN L IT, FURTHER EXPANSION UNKNOWN
▪ NIKE SHARE 30-35%▪ ADI 15-20%▪ THE REST OF BRANDS
BELOW 10%
▪ CATEGORY (E.G RUNNING)BRANDS (E .G. ASICS) , HIGH SEASONAL CHANGES (E .G. WINTER)
▪ SKIS IN WINTER & BIKES IN SUMMER
▪ GOLF, MOUNTAIN SPORT, RUGBY, ETC ARE VERY SMALL
SDI & SPORTLANDTOUCH
YOUTH
SPORT
CULTURE
4. How we do it?
DIVERSE & VALUABLE EXPERIENCE
Introduction of Sportland brand &
concept
First Sportland retail store in Estonia
Introduction of Nike mono-brand store
concept
Introduction of NetoSport concept
Introduction of Franchise stores
Entry to Russia
First retail store in Latvia
First NIKE retail store in Lithuania
Expansion in Latvia via acquisition of 100%
Sports
Entry to Finland
Entry to Ukraine
Opening of Timberland stores
Expansion in Estonia via acquisition of WestSport
stores
Exit from Finland
Minority participation in Russia
1995 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Number of stores 6 10 12 19 29 32 64 90 101 120 152 148 106
First Sportland retail store in Lithuania
1996
Opening of O’NEILL stores
Exit from Ukraine
Exit from Russia
2010 2011 2012
97 88 66
Wholesalebusinessin Estonia
2013 20152014 2016
667684
SportsDirectshareholder
First SportsDirect
store
SIG & GROWING THE MARKETSportland International Group (“SIG”) is the #1 & fastest growing Sports Retailer in the Baltics
Best locations in the 3 countries: 60 stores with total area ca 35 000 m2 (ca 379 000 sqft)
Importance of local relevance: 3 languages, engaged with local teams & athletes
Exclusive distributor for numerous leading sporting goods brands
Owners/co-CEOs founded the business in 1995, and have since obtained experience also from Finnish, Russian and Ukrainian market
Largest number of Facebook fans among Estonian & Latvian companies: on path for future growth through innovation, modern communication, emotional retail & with our two fascias (SPO & SDI)
SIG: Increasing Market Share & growing the Market with our two fasciasESTONIA LATVIA LITHUANIA
Market size in each country and SIG’s market shareSource: SIG
€87m
Number of stores per country as of September, 2015
€50m €43m
SIG 40% SIG 45% SIG 45%
29
15
16
6.28 Mpeople Market size €180m
(inlc. Web)Estonia
Latvia
Lithuania
Baltic’s market
Others 55%Others 55%Others 60%
SIG Board Of DirectorsAnti Kalle & Are Altraja
09/2015
PURCHASEDIRECTOR
Marge KAARMA
REATIL SALES,STORES, CONCEPTS
Are ALTRAJA
FINANCIALDIRECTOR
Priit PIRKSAAR
CFO
MÄG
I
CO
NT
RO
LLER
KAN
GU
R
ITDIRECTOR
ErikTAMBAUR
DE
VE
LOP
ERRai
t KIK
KAM
ÄG
I
SECURITY &MAINTENANCE
DIRECTORMarek KÕIV
LOGISTICSMANAGER
Margus METSALU
SPORTLAND ESTONIA CEO
Gerd KIILI
PURCHASEDIRECTORAlvin KUIMET
RETAIL OPERATIONS
Nelli NILSON
FINANCIALDIRECTOR
Anne KIUDSOO
PURCHASEDIRECTOR
Nauris DIDRIHSONS
CH
IEF
AC
CO
UN
TA
NT
Ieva
BET
A
IT DIRECTOR
Jevgemi HUDOROZKOV
CENTRAL WAREHOUSE
MariusBEKERIS
SPORTLAND LITHUANIA CEOVladas KORSAKOVAS
PURCHASEDIRECTOR
Rimantas RAVAITIS
RETAIL OPERATIONSSigitas DAUKAS
FINANCIALDIRECTOR
Kristina VAITIEKIENE
ITDIRECTOR
Algirdas ZALAGAITIS
AN
ALY
TIC
Riin
a VES
KIM
ÄG
I
SPO
RT
EQ &
BIK
ESH
enri K
RU
USEL
OU
TDO
OR E
QD
ima
SM
IRN
OV
ON
EILL
Jann
on V
IILU
P
HEL
LY H
AN
SEN
Ann
ika
TUIS
K
TIM
BER
LAN
DIn
drek
UIB
O
SD
I BRAN
DS
Jann
o VII
LUP
MARKETINGDIRECTOR
Marit FINNIE
MARKETINGDIRECTOR
Edita RAGAISIENE
SD
I S
TO
RES
Rem
i AARE
NIK
E &
AD
IDAS
Alv
in K
UIM
ET
PU
RC
HA
SE
AS
SIS
TAN
TKri
stia
na J
AN
SO
NE
AC
CO
UN
TA
NT
Kar
ina
APS
ITE
IN S
TORE
MARKET
ING
Liga
ALK
SN
E
MARKET
ING
ASSIS
TAN
TEd
gars
MIE
ZIT
IS
MARKET
ING
SPE
CIA
LIST
Jana
STR
AU
TIN
A
RET
AIL
OPE
RATI
ON
SAiv
ars
MEZ
VEV
ERS
HU
MA
N R
ES
EA
RC
HBALO
DE-
VASIL
JEVSKA
DIG
ITAL
CO
MM
UN
ICATI
ON
Kar
el K
ALJ
USTE
SPO
RT
MAKRET
ING
Mar
gus
REI
NTA
L
IN-S
TORE
MARKET
ING
Maa
rja
NIG
OL
VIS
UAL
MER
CH
AN
DIS
ING
Krist
el N
EI
CREA
TIVE
DES
IGN
ERRai
ner
OLB
RI
MARKETINGDIRECTORAntti ADUR
MARKETINGDIRECTOR
Sandijs PINKULIS
FINANCIAL DIRECTOR
Inga MEZAVILKA
INSTO
RE
MARKET
ING
Don
atas
KO
RSAKO
VAS
PU
RC
HA
SE
AS
SIS
TAN
TBir
git TÕ
NTS
SE
N.
AC
CO
UN
TA
NT
Pire
t KALL
AS
AC
CO
UN
TA
NT
Pire
t PÕ
LDM
ETN
S
HU
MA
N R
ES
EA
RC
HEn
eli V
EERM
ÄE
FOO
TWA
RE
Dei
vida
s M
ACO
NKA
AP
PA
REL
Indr
e ZIL
ENSKAIT
E
OU
TDO
OR
Ber
nard
as L
AU
CIU
S
AC
CO
UN
TA
NT
Dai
va N
ARKU
TE
AC
CO
UN
TA
NT
Mar
garita
NAU
MO
VIE
NE
LOGISTICSMANAGER
JevgenijusBOCAROVAS
OFF
ICE
ASSIS
TAN
TZiv
ile C
IUTI
ENE
SPORTLAND LATVIA CEO
Sandijs PINKULIS
RETAIL OPERATIONSSandijs PINKULIS
OFF
ICE
ASSIS
TAN
TLi
ene
GRASM
AN
EO
FFIC
E ASSIS
TAN
TLe
idi L
IND
SD
I S
TO
RES
Rem
i AARE
+S
DI
ST
OR
ESRem
i AARE
+S
DI
ST
OR
ESRem
i AARE
+
E-C
OM
ME
RC
ETB
D
IT DIRECTORErik TAMBAUR
Full Managment
EXCLUSIVE DISTRIBUTION RIGHTSin the Baltics (43% of sales)
OTHER GLOBAL SPORTSBRANDS sold in SPORTLAND (57% of sales)
38%
6%
5%4%
3%10%8%
1%
1%
9%
Brands with Exclusive Rights - GROWING THE MARKET
15%
BRAND POSITIONING CHARTHIGH
SPORTFASHION
LOW
JV with SPORTSDIRECT.COM
• Accelerate growth of international operations
• Identify partners in new territories
• Best in class Logistics Support
• Promote Group Owned Brands
• Pioneering the Baltic Sports Market development
• Adopt Digital Technologies to attract consumers in-store & media
• Innovative Consumer engagement at the Sports Events & Clubs
1. Sports Direct Groupbrands to the Baltics
2. Big Box stores in the Baltics
3. Establish Sportland online operationsutilising Sports Direct infrastructure
GLOBAL SCALE LOCAL KNOWLEDGEFUTURE GROWTH
SPORTS DIRECT - PARTNER FOR FUTURE MARKET GROWTH
New Brands from SportsDirect
Casual Sport
EMOTION
BRAND
PRODUCT
PRICE
DISCOUNT Casual Sport
.... -2013 2013-.....
???? ????
STORES
SPORTLAND KRISTIINE – TALLINN, ESTONIA
SPORTLAND AKROPOLIS (digitalisation)– VILNIUS, LITHUANIA
SPORTLAND ALFA (digitalisation)– RIGA, LATVIA
SPORTLAND VIIMSI – TALLINN, ESTONIA
SPORTS DIRECT OLYMPIA – RIGA, LATVIA
SPORTS DIRECT AKROPOLIS – VILNIUS, LITHUANIA
5. Innovative Demand Creation & Communication
4. INNOVATIVE DEMAND CREATION & COMMUNICATION
1. Approach2. Events3. Digitalization in retail4. Digitalization off retail (magazine.com)5. Paype6. Feedback screens7. Social media 8. Marketing KPI-s, planning, monitoring
> OWN THE MARKETPLACE MEANS:Map high traffic places of sports in key cities and „talk“
& inspire athlete's/people – be very close to them!
> BEST BRANDS> BEST LOCATIONS> BEST TEAM & RETAIL MANAGEMENT> BEST COMMUNICATION
> CREATE & LEAD & DEVELOP SPORTS CULTURE • best & biggest events (top 5)• biggest sports clubs (top 5)• drive biggest sport categories (top 5)
FIND & MAP
CREAT & LEAD
SUPPLYBe 1st!
PHILOSOPHY
BRAND DRIVEN & CONSUMER DEMAND ORIENTED APPROACH TODAY
E-TAILER/ E-COMMERCE
SPORTS: COMPETE & PARTICIPATE CULTURE: FREE TIME, SPORT SPECTATORS
Developer & Promoter of Sports & Active Lifestyle
FOOTBALL (participants 100,000)
Main sponsor: ESTONIAN FA (segment 1m)Partner of 10 clubs in the Baltics:FC FLORA, Nõmme Kalju, TAMMEKA, METTA
RUNNING (segment 1m) Organizer of Baltics largest running events:Tallinn Marathon & 10k: 20,000 participantsNike Run Riga: 6,000; Nike Run Vilnius: 5,000 Tallinn Women's Run: 12,000
EXTREME SPORTS & SKATEBOARDING Partner of Simpel Session – the world premier skateboard & BMX
competition (segment 50k)
MUSIC: Supporting numerous cultural events Metallica in Tallinn: 80,000 audience(Segment size in the Baltics: 3m)
MOTORSPORTS (segment 50k): Partner & Co-Developer of the Baltic largest
event: Rally Estonia
WINTER SPORTS (segment 200k): Developer of numerous
cross-country ski events
BASKETBALL (segment 3m)Main sponsor: Lithuanian BA (seg. 3m)
Partner & Sponsor of Top 5 Baltic clubs
NATIONAL COMBINED SPORTS EVENTS (segment 500k): Developer
FITNESS & GYM (segment 300 k)
Developer: #1 Fitness club chain in Estonia;
Partner of coaches & gymsOLYMPICS (segment 1m)
Main sponsor: Estonian Track & Field Fed. &Estonian Olympic Committee
CONSUMER ENGAGEMENT
Target Audience
EE LV LT Total
Population(01.01.2012)
(milj. inhabitants)1.25 2.0 3.0 6.25
10-40y, active(35% from total)
(milj. inhabitants)180 250 350 780
SPORTLANDLoyal
Consumers(thousands)
242 124 52 418
FaceBook Fans(thousands) 81 24 50 155
Insta Fans(04.09.2015) 7,057 4,127 102 11,286
A&A LIFETIME LIFESTYLE – FULFILL THE MISSION
OUTCOME:
forREINVEST
SKILLS MONEYENERGY
TIME SKILLS MONEYENERGY
MAXIMIZEAUDIENCEMAXIMIZE
RETURN
TIME TO REVIEW & DECISIONS
TIME FOR THOUGHTS, IDEAS & RISK
EVENTS VIDEO
SPORTLAND SPORT EVENTS FY 2016
Estonia - 130 Lithuania - 50Latvia - 86
Total- 266 events
LOYAL CUSTOMERSESTONIA LATVIA LITHUANIA BALTICS
Mother tongue of a registerd customer Est 80% / Rus 20% Lat 60% / Rus 40% Lit 90% / Rus 10%Number of Registered LC cards in SPO database (TOTAL)
242 393 124 919 51 899 419 211
Number of LC cards used in last 2 years 125 203 34 650 8 505 168 358 Number of LC cards used in last March 2015
16 579 4 610 286 21 475
% of purchases which had LC card used in Aug 2014
24% 11% 0.31%
Number of cards which have email address tagged to it
53 546 37 746 8 699 99 991
Number of card which have mobile nr. taged to it
82 985 48 678 19 340 151 003
How many loyal customer emails are sent out as a newsletter 1-2 times per week 1 time per 2 weeks ~1 times per week
FORMAT OF LC CARD ESTONIA LATVIA LITHUANIA
Plastic VIRTUAL LOYALTY CARD - MOBILE ESTONIA LATVIA LITHUANIA
Launches in April in Est - Loyalty cards, gift cards directly to consumer mobile phone. Synced with current database. Transfering plastic card consumers to mobile users. Linking with ID number (unique for consumer and easy to idetntify)
Joined 2500 consumers planned launch by Q3 planned launch by Q4
SPORTLAND MAGAZINE & .COMMOBILE LC CARD – PAYPECONSUMER FEEDBACK SCREENS
Paype – Est Launch, Roll out Lat / Lit 2015
Customers statisticsIdentification statisticsOffers statisticsEXTRA - stores they visit, offers they view, LC-cards they own, posts &pages they like (FB), vouchers they buy...
Launch: www.SportlandMagazine.comLaunch: #1 Sportland Magazine in LithuaniaLaunch: Consumer Feedback Panels
DIGITAL SCREENS IN SPORTLAND STORES JUNE2015
Name Single Lite 22" Single Lite 32" Single 42" Single 48" Single 55" TvTower x2 TvTower x3 TvTower x4 Videowall x3 Videowall x4Construction
Example visual
Resolution 1280x1080px, 1920x1080px
1920x1080px 1920x1080px 1920x1080px 1920x1080px 1080x3840px (Video - 2X
1920x1080px)
1080x5760px (Video - 3X
1920x1080px)
1920x4320px (Video - 4X
10800x1920px)
5760x1080px (Video - 3X 1920x1080px)
7680x1080px (Video - 4X 1920x1080px)
File Formats JPG, GIF, PNG, PDF, DOC, XLS, PPT, WAV, AVI,
MOV, MP1
JPG, GIF, PNG, PDF, DOC, XLS,
PPT, WAV, AVI, MOV,
JPG, GIF, PNG, PDF, DOC, XLS,
PPT, WAV, AVI, MOV,
JPG, GIF, PNG, PDF, DOC, XLS,
PPT, WAV, AVI, MOV,
JPG, GIF, PNG, PDF, DOC, XLS, PPT, WAV, AVI,
MOV, MP4
JPG, GIF, BNG, MP4, AVI,
MOV
JPG, GIF, BNG, MP4, AVI,
MOV
JPG, GIF, BNG, MP4, AVI,
MOV
JPG, GIF, BNG, MP4, AVI, MOV
JPG, GIF, BNG, MP4, AVI, MOV
BALTICS TOTAL 134 13 55 95 52 23 1 2 19 2ESTONIA (new only) 55 7 55 1 42 14 1 1 5 2LITHUANIA 60 2 0 44 6 2 0 0 11 0LATVIA 19 4 0 50 4 7 0 1 3 0
55"
48"
55"
55"
48"22" 32"
55"
48"42"
Under the same conditions (platform logic, administration, ads & campaign budget growth hand in hand with fanbase growth):
We have to consider, that we are already operating with 12%+ of all local Facebook users.
Games and active engagement is the key, everyones effort is important. Like & Share
SPORTLAND FACEBOOK
+14%
+13%
+33%
+27%+50%
+14%
Under the same conditions (platform logic, administration, posts & games flow):
We expect booming growth of the Instagram users within next years and predict to grow fast on Sportland followers. Increasingly more businesses and people are moving to Instagram, so the target is to retain same engagement through the years and grow on the followers.
SPORTLAND INSTAGRAM
0
5000
10000
15000
20000
25000
30000
35000
2015y 2016y 2017y
Estonia
Latvia
Lithuania
+114%
+100%
+150%
6. Vision for 2020
SIG & GROWING THE MARKETSportland International Group (“SIG”) is the #1 & fastest growing Sports Retailer in the Baltics
Best locations in the 3 countries: 60 stores with total area ca 35 000 m2 (ca 379 000 sqft)
Importance of local relevance: 3 languages, engaged with local teams & athletes
Exclusive distributor for numerous leading sporting goods brands
Owners/co-CEOs founded the business in 1995, and have since obtained experience also from Finnish, Russian and Ukrainian market
Largest number of Facebook fans among Estonian & Latvian companies: on path for future growth through innovation, modern communication, emotional retail & with our two fascias (SPO & SDI)
SIG: Increasing Market Share & growing the Market with our two fasciasESTONIA LATVIA LITHUANIA
Market size in each country and SIG’s market shareSource: SIG
€87m
Number of stores per country as of September, 2015
€50m €43m
SIG 40% SIG 45% SIG 45%
29
15
16
6.28 Mpeople Market size €180m
(inlc. Web)Estonia
Latvia
Lithuania
Baltic’s market
Others 55%Others 55%Others 60%
BALTIC SPORTING GOODS MARKET READY FOR GROWTH
Expenditure on Sporting goods, € per capita
Expenditure on sporting goods per capita is expected to grow significantly…
RETAIL CONCEPTS – POSITIONING ESTONIA 2015
Retailing concept through shop brand positioning
-% salesCasual Sport
EMOTION
BRAND
PRODUCT
PRICE
DISCOUNT
RETAIL CONCEPTS – POSITIONING LATVIA 2015
Casual Sport
EMOTION
BRAND
PRODUCT
PRICE
DISCOUNT
EMOTION
BRAND
PRODUCT
PRICE
DISCOUNT
RETAIL CONCEPTS – POSITIONING LITHUANIA 2015
Casual Sport
EMOTION
BRAND
PRODUCT
PRICE
DISCOUNT
EMOTION
BRAND
PRODUCT
PRICE
DISCOUNT
Premium Lifestyle Division
SPORTS DIRECT INTERNATIONAL PLC / Capital Markets Day / Wednesday 9 September 2015 1
Premium Lifestyle Division
“The pinnacle retail fascias within the SDI group,
featuring clothing, footwear and accessories from
the most premium, directional and exclusive
brands available from around the world”
SPORTS DIRECT INTERNATIONAL PLC / Capital Markets Day / Wednesday 9 September 2015 2
8 Stores 17 Stores 54 Stores
SPORTS DIRECT INTERNATIONAL PLC / Capital Markets Day / Wednesday 9 September 2015 3
Operational Improvements
The key benefits of a group approach:
• Shared stock – group buying
• Enhanced buying controls generating improved colour/size sell through
• Stabilising core product range to provide constant availability
• Improved automated allocation & replenishment system
• Automated web stock requirement
• Maintaining product availability both in-store & online
• Centralised group markdowns / promotional activity
• All enabling a cleaner stock package / improved sell-through / higher achieved margin and stronger
visual merchandising in store
SPORTS DIRECT INTERNATIONAL PLC / Capital Markets Day / Wednesday 9 September 2015 4
Strategy Improvements
• Enhancing existing retail space
• Investing in new flagship locations
• Offer our customers the best branded premium fashion range, across all categories and genders
• Deliver great customer service to our customers at all times through a multi-channel approach
• Website benefits from ongoing investment into the core group platform
• Working closely with our global brand partners to deliver best in class visual merchandising
SPORTS DIRECT INTERNATIONAL PLC / Capital Markets Day / Wednesday 9 September 2015 5
In store Concept
• The new FLANNELS.com concept takes inspiration from the
highest level of store design with the aim of enhancing our position
as the premium multi-brand retail destination
• The main features of the store design are high quality materials,
clean simple lines to accentuate and hero the product and detailed
atmospheric lighting
SPORTS DIRECT INTERNATIONAL PLC / Capital Markets Day / Wednesday 9 September 2015 6
In store Concept
• A contemporary colour palette mix of greys, whites and blue
highlights give an exceptional contrast and provide the overall tone
for the store environment
• Each floor will have its own subtle look and feel to be targeted at
the gender and relevant brand mix
SPORTS DIRECT INTERNATIONAL PLC / Capital Markets Day / Wednesday 9 September 2015 7
• Aim to be the leading multi-brand high street
fashion retailer in the UK
• Specialising in branded denim and footwear
• Key brands including G-Star, Lacoste, Emporio
Armani & Hilfiger
• Located in key macro market cities and shopping
centres
• In store environment aimed at a shop in shop
brand experience
• Key denim brands (G-Star, Replay, Levis, Hilfiger)
Lifestyle brands (Lacoste, Pretty Green, Luke,
Jack & Jones) and Footwear brands (Puma,
Converse, Adidas, Vans)
SPORTS DIRECT INTERNATIONAL PLC / Capital Markets Day / Wednesday 9 September 2015 8
Outlook
Group’s success underpinned by delivering exceptional quality and unbeatable value to our
consumers
• Trading since the year end has been in line with management’s expectations, underpinning the revised FY16
target of £420m for the 2015 Bonus Share Scheme
• Performance continues to be driven by
• Investment in product range and availability
• Optimisation of in-store and web offer and introduction
of UK Click and Collect
• Growing proportion of ‘better’ and ‘best’ Group branded
products in key categories
• Investment in store portfolio
SPORTS DIRECT INTERNATIONAL PLC / Capital Markets Day / Wednesday 9 September 2015
QUESTIONS?