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TJX Investor Handout June2013
TJX Investor Handout June2013
Customer traffic up across all divisions Substantial expansion in pre-tax margin EPS increased 28% on top of 14% increase in FY12 on adjusted basis
Adjusted Non-GAAP financial measures are reconciled to GAAP financial measures in Appendix.
Comps driven by customer traffic Better brand penetration Better shopping experience Powerful marketing Broad demographic / younger customers
1,940 415
14
TJX Stores
Total TJX stores includes 4 Sierra Trading Post stores. Store growth potential with current chains in current markets; as of 2/27/13.
E-Commerce Opportunity
Sierra Trading Post acquisition offers TJX instant scale, capabilities and expertise Strong TJX team continues its work on TJX branded websites Great leverage all around
T.J. Maxx website on track to be launched in a controlled mode in back half of 2013 E-Commerce strategy strictly offense
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
Adjusted Non-GAAP financial measures are reconciled to GAAP financial measures in Appendix. FY10 and FY13 are on a reported basis.
$2.55 $ 55
Compound p Growth
EPS
(Continuing Operations)
*FY08 is adjusted. Adjusted Non-GAAP financial measures are reconciled to GAAP financial measures in Appendix. All per share information adjusted to reflect stock splits.
5% - 7% 1% - 2% 3% - 4%
FY09
FY10
FY11
FY12
FY13
Free Cash Flow is defined as cash flow from operations less capital expenditures. Non-GAAP financial measures are reconciled to GAAP financial measures in Appendix.
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
$.02
FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14*
35% 23% 15% 5% 1 Year TJX 3 Year S&P 500 Index 5 Year 26% 15% 18% 8% 12%
10 year
*Total Return reflects stock price appreciation as of closing price on Feb. 1, 2013 and includes dividend reinvestment.
4,000 3 600 3,600 3,200 2,800 2,400 2,000 1,600 1,200 800 400 0
= Recessions SegmentProfit*($Millions)
*Definedaspretaxincomebeforegeneralcorporateandnetinterestexpense.
NetSales($Billions)
(FYE)
Ability to grow EPS in the near and long term Investing in infrastructure and growth vehicles Great financial strength and returns to shareholders Great momentum continues
The Company reports its financial results in accordance with generally accepted accounting principles in the U.S. (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance.
The tables below provide supplemental non-GAAP financial data and corresponding reconciliations to GAAP financial measures. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Companys reported results prepared in accordance with GAAP. Table 1: Reconciliation of Fiscal Year GAAP Basis Earnings Per Share from Continuing Operations FY98 FY03 FY08 FY10 FY12 FY13 (53 Week) $1.93 $2.55
$0.21
$0.49
$0.84
$1.42
Adjusted for non-operating items: Provision (Credit) for Computer Intrusion Related Costs Impact of A.J. Wright Store Closings A.J. Wright Store Conversion / Grand Re-Opening Costs Adjusted EPS $0.13 $0.21 $0.49 $0.97
$1.42
$2.55
Reconciliation of Financial Measures Table 2: Reconciliation of Fiscal Pre-Tax Margin FY06 FY07 FY08 FY09 (53 Weeks) 19,000 19,000 1,451 (31) 1,420 7.6% 7.5% 9.6% 9.6% 1,952 2,293 9.9% 10.6% 1,952 2,411 69 20,288 20,288 25,878 25,878 3,077 FY10* FY11 FY12 FY13* (53 Weeks)
($ in millions)
Net Sales from Continuing Operations A.J. Wright Net Sales Adjusted Net Sales from Continuing Operations 15,667 1,036 5 19 1,055 1,269 7.4% 7.4% 7.9% 6.9% 1,457 6.6% 6.7% 197 1,264 1,260 2,164 141 (12) 17,104 18,337
15,667
17,104
18,337
Pre-Tax Profit from Continuing Operations Impact of A.J. Wright Consolidation(1) Provision (Credit) for Computer Intrusion Related Costs FY 06 Unusual Items(2) Adjusted Pre-Tax Profit from Continuing Operations
*FY10 and FY13 are reported numbers. (1) Includes expenses related to the A.J. Wright consolidation, including closing costs and additional operating losses related to the closure of A.J. Wright stores not closed in Q4 FY11, the costs related to the conversion of the former A.J. Wright stores to other TJX banners, and the costs related to grand re-opening events when the stores re-opened. (2) Includes approximately $9M of costs related to executive resignation agreements, e-commerce exit costs and operating losses of approximately $10M, VISA/MasterCard antitrust settlement of approximately $9M, and hurricane related costs including impact of estimated lost sales of approximately $9M.
Table 3: Calculation of Free Cash Flow FY09 (53 Weeks) $1,155 (583) $572 FY10 FY11 FY12 FY13 (53 Weeks) $2,272 (429) $1,843 $1,976 (707) $1,269 $1,916 (803) $1,113 $3,046 (978) $2,067
($ in millions)
Cash Provided by Operating Activities Less: Property Additions Free Cash Flow