Download as pdf or txt
Download as pdf or txt
You are on page 1of 11

6/13

Strong Results FY13


(Continuing Operations)

Revenues up 12% to $25.9B Comp C store t sales l up 7%

On top of several years of strong comparisons

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.

Opportunities to Play Offense and Grow Profitably


Huge opportunity to gain even more market share

Comps driven by customer traffic Better brand penetration Better shopping experience Powerful marketing Broad demographic / younger customers

Significant Unit / Square Footage Growth Opportunity


Marmaxx HomeGoods Winners (Canada) HomeSense (Canada) Marshalls (Canada) T.K. Maxx (UK & Ireland) HomeSense (UK) T.K. Maxx (Germany) T.K. Maxx (Poland) 0%

1,940 415

2,400-2,600 750-825 222 240 88 90

14

90 - 100 268 300 - 325 24 57 18


20% 40% 60% 80%

100 - 150 250 - 300 100


100%

TJX Stores

FY13 Year-End: 3,050

Potential: 4,320 - 4,730

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

TJX / Sierra Brick & mortar / E-Commerce

T.J. Maxx website on track to be launched in a controlled mode in back half of 2013 E-Commerce strategy strictly offense

Continuing Profit Margin Growth


Adjusted Pre-tax Margins (FY06 FY13)

11.9% 10.6% 9.6% 6.7% 7.4% 7.9% 7.5% 10.7%

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.

Margin Growth Can Continue


Scaling of European business Investments in supply chain / right product, right stores, right time Inventories can still turn fasterleads to better merchandise margins Continued focus on cost reduction

Consistent EPS Growth

$2.55 $ 55

Compound p Growth

$.97 $.49 $.21 FY98 FY03 FY08* FY13

1 Year* 3 Year 5 Year* 10 Year 15 Year

28% 22% 21% 18% 18%

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.

Profit Model Continues to Support 10% - 13% Annual EPS Growth


Three-Year Three Year Growth Model
Comp Store Sales Square Footage Growth 2% 4% - 5%

Total Sales Segment Profit Margin Share Repurchases

5% - 7% 1% - 2% 3% - 4%

Strong, Consistent Cash Generation


Historical Free Cash Flow Generated ($ Millions)

$2,067 $1,843 $1,269 $572 $1,113

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.

Long Track Record of Returning Cash to Shareholders


Historical return to shareholders as % of market capitalization
11.6%

10 year average: 6.9%


5.7% 5.1% 6.2% 5.1%

8.4% 7.3% 7.7% 6.3% 5.1%

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

Share Buyback+Dividends/Market Cap


Market Capitalization is as of the day prior to the fiscal year end.

17 Consecutive Years of Dividend Growth


CAGR 23% = Dividend (17-year)* 20% = Stock Appreciation (16-year)
$.38 $.30 $.22 $.18 $ 12 $.12 $.03 $.03 $.04 $.04 $.05 $.06 $.07 $.09 $.14 $.24 $.46 $.58

$.02

FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14*

Annual Dividends Per Share


Adjusted to reflect stock splits. Dividend CAGR through FY14. Stock price appreciation CAGR through FY13. *Expected. Subject to approval by Board of Directors.

Consistently Deliver Returns Greater than Overall Market / Retail Index


Compound Annual Rate of Total Return*

36% 25% 18%

35% 23% 15% 5% 1 Year TJX 3 Year S&P 500 Index 5 Year 26% 15% 18% 8% 12%

10 year

Dow Jones Apparel Retailers Index

*Total Return reflects stock price appreciation as of closing price on Feb. 1, 2013 and includes dividend reinvestment.

Confidence in Continued Success


Paradigm shift to value Extremely flexible business model Ability to succeed in up and down economies Four large, powerful businesses Europe back on track, tremendous growth opportunity Focused on raising the bar

Succeeding in All Types of Environments


(Continuing Operations)
28 26 24 22 20 18 16 14 12 10 8 6 4 2 0
'82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 13

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)

Key Investment Points


Great offense opportunities

Market share Unit growth E-Commerce Margin growth

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 TJX Companies, Inc.


SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Various statements made in this presentation are forward-looking and involve a number of risks and uncertainties. All statements that address activities, events or developments that we intend, expect or believe may occur in the future are forward-looking statements. The following are some of the factors that could cause actual results to differ materially from the forward-looking statements: execution of buying strategy and inventory management; operational expansion and management of large size and scale; customer trends and preferences; market, banner, geographic and category expansion; marketing, advertising and promotional programs; competition; personnel recruitment and retention and costs of labor; global economic conditions and consumer spending; data security; information systems and new technology; seasonal influences; adverse or unseasonable weather; serious disruptions and catastrophic events; corporate and banner reputation; merchandise quality and safety; expanding international operations; merchandise importing; commodity pricing; fluctuations in currency exchange rates; fluctuations in quarterly operating results and market expectations; acquisitions, business investments and divestitures; compliance with laws, regulations and orders; changes in laws and regulations; outcomes of litigation, legal matters and proceedings; tax matters; real estate activities; cash flow and other factors that may be described in our filings with the Securities and Exchange Commission. We do not undertake to publicly update or revise our forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied in such statements will not be realized. IMPORTANT INFORMATION AT WEBSITE: The Company routinely posts information that may be important to investors in the Investor Information section at www.tjx.com. The Company encourages investors to consult that section of its website regularly. Reconciliations of Non-GAAP financial measures to GAAP financial measures are available at www.tjx.com under Reconciliation of Financials. OTHER IMPORTANT INFORMATION: All references to sales, pretax margin and EPS are on a continuing operations basis.

Appendix: Reconciliation of Financial Measures

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

EPS from continuing operations

$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

$0.04 $0.02 $1.99

$2.55

1 Year 3 Year 5 Year 10 Year 15 Year

Annual CAGR GAAP 32% 22% 25% 18% 18%

Adjusted 28% 22% 21% 18% 18%

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

21,942 (279) 21,663

23,191 (9) 23,182

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

2,481 10.4% 10.7%

3,077 11.9% 11.9%

Pre-Tax Margin from Continuing Operations

Adjusted Pre-Tax Margin 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

Note: Totals may not foot due to rounding.

You might also like