Myer Holdings Ltd to Acquire Premier Investments Ltd Apparel Brands Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Mark Wade - CLSA - Analyst : Hi, good morning team. I'll listen carefully to everything you've said. Then Olivia, it's still not clear to me though, why you're the natural owner of Apparel Brands. It's going to introduce a lot of complexity in the business. You'll go from owning a few stores and many brands, so many stores and, and few brands you're taking on. So it just, it doesn't feel like the right fit. Can you convince me otherwise?

Question: Mark Wade - CLSA - Analyst : Fair enough. And just to be clear, do you plan to operate them as independent businesses or you going to somehow integrate them like. Concession?

Question: Mark Wade - CLSA - Analyst : Okay. All the best. To all. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 28, 2024 / 11:00PM, MYR.AX - Myer Holdings Ltd to Acquire Premier Investments Ltd Apparel Brands Call

Question: Ben Gilbert - Jarden - Analyst : How's it going? Congratulations. Just a couple of questions for me. Just firstly, just on people retention, there's always been a lot of discussion in the press recently, just how you've managed that because obviously these brands have done extremely well over the last few years on a relative basis, just how you focused on people attention.

Question: Ben Gilbert - Jarden - Analyst : That's great. Thanks just on the synergies number. Appreciate it the minimum and appreciate. This is early days, but it just doesn't seem like a big number when you look at. It's a 1% swing in your GP. And I think you still have a lot of agents that are using for sourcing. Assuming you're going to leverage a lot of the apparel business sourcing. And if you get a couple of points there that 60 alone and then the leases intuitively, presumably, it's going to be a lot of opportunity to overlap or, or leverage that and move leases that are in the 20s or maybe high teams into the single digits by bringing them into concession. But just wondering why you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 28, 2024 / 11:00PM, MYR.AX - Myer Holdings Ltd to Acquire Premier Investments Ltd Apparel Brands Call

Question: Ben Gilbert - Jarden - Analyst : Just., you got to [30 instead of why did you pick 30 not 50 or 60]? Because it's pretty easy to build a number that's much bigger. And I just, you try to take a conservative approach or have you thought about that?

Question: Ben Gilbert - Jarden - Analyst : And just final one for me, just in terms of costs around implementing this, you've obviously got the shared arrangement that sort of goes both ways with, with premier post. But are they going to be any significant implementation costs? I'm thinking like they're obviously developing their own loyalty program, is that going to have to be written off? I'm just thinking up from these costs that might come out to sort of one off when this does settle or should it all gets approved, settles within my business?

Question: Ben Gilbert - Jarden - Analyst : Thank you.

Question: Aryan Norozi - Barrenjoey - Analyst : Hello, thanks for your time. Just first one for me, just trying this out of the $30 million of synergies you're targeting or 30 plus. What portion of that can you give us an idea is private label set of synergies in terms of sourcing and, and consolidating the scale, please.

Question: Aryan Norozi - Barrenjoey - Analyst : Great and maybe just qualitatively not putting exact numbers on it, the store network bucket of that, which is obviously, for example, hypothetically moving a premier store into Myer and exiting une economic leases. Is that a material component of it, maybe qualitatively sort of talking about it or is it fair to say the bulk of it is the other? And that's a smaller portion?

Question: Aryan Norozi - Barrenjoey - Analyst : Right? And so last one for me, just around the distribution center and the fulfillment side and all the supply chain side. So obviously, my has got the DC, which they have obviously got a lot of capacity that that was planned for the next five or 10 years of growth. So what happened to that DC will it be consolidated into the Apparel Brands. And sort of how do we think about the capacity once the or if the merger happens?

Question: Aryan Norozi - Barrenjoey - Analyst : Great. Thanks very much.