Becoming more specialist and most loved 0 - PowerPoint PPT Presentation

nemo2014\Presentations\Analyst Presentation Jan14\201401 Nemo Analyst Presentation Master-22nd Jan FINAL.pptx Becoming more specialist and most loved 0

nemo2014\Presentations\Analyst Presentation Jan14\201401 Nemo Analyst Presentation Master-22nd Jan FINAL.pptx Customer vision: helping pets and their owners live long and happy lives together 1

nemo2014\Presentations\Analyst Presentation Jan14\201401 Nemo Analyst Presentation Master-22nd Jan FINAL.pptx Market & competitive backdrop reinforces our aspiration to be MORE specialist and MOST loved Pet market continues to show resilience & premium growth vs general retail 2008-12 2012-14 Pet market 2.6% 3.5% General retail 2.2% 1.5% Online participation growth is <1% per year , store collection the fastest growing segment 8.6% 7.3% 5.9% Online sales participation of total pet market 3.4% 2008 2010 2012 2014 2

nemo2014\Presentations\Analyst Presentation Jan14\201401 Nemo Analyst Presentation Master-22nd Jan FINAL.pptx Market & competitive backdrop reinforces our aspiration to be MORE specialist and MOST loved Food & Treats* Advanced Nutrition Accessories Vet Services 7% 9% 9% 12% 15% 3% 1% 20% 5% 3% 11% 9% 35% 47% 22% 78% 22% 83% 72% 75% 17% 17% 53% 44% 36% 33% 13% 11% 14% 12% 9% 6% 2012 2014 2012 2014 2012 2014 2012 2014 Online specialists Pets at Home Grocers Pet specialists Other Vet corporates Vet independents (Incl. vets) 3 Source: OC&C data. Vet corporates include CVS, Medivet and Independent Vetcare (IVC) * Total Food including grocery & Advanced Nutrition

nemo2014\Presentations\Analyst Presentation Jan14\201401 Nemo Analyst Presentation Master-22nd Jan FINAL.pptx We are the only true omnichannel specialist pet retailer UK wide stores & C&C, services, customer loyalty programme Store based pet specialists Online pet specialists ✗ 413 50-100 Store numbers ✓ ✓ ✓ Transactional website c13,000 c3,000-4000 2 c7,500 – 10,000 3 SKU counts ✓ ✓ ✗ Colleague advice ✓ ✗ ✗ Vets & groomers ✓ ✗ ✗ 4 Customer loyalty programme Customer acquisition Natural search / CRM CRM driven Paid for 3 ✓ ✓ ✗ 3 C&C Home delivery time 1 Within 3 days 2-3 days 2-3 days £29 £36 £25 Avg Free delivery threshold Avg Delivery charge 1 £4.95 £6 £3.17 Source: Company websites & Brandmatch data 1 refers to standard UK delivery 2 exception Pampurred Pets 3 exception Amazon 4 exception Zooplus 4 Store based sample includes Pets Corner, Jollyes, Pampurred Pets. Online sample includes PetPlanet, Amazon, Zooplus, Fetch, Pet Supermarket

nemo2014\Presentations\Analyst Presentation Jan14\201401 Nemo Analyst Presentation Master-22nd Jan FINAL.pptx And we have unique attributes & capabilities to leverage Sector leading colleague expertise & qualified Market leading brands & customer professionals relationships Best value private brands & own labels, plus Incomparable range, innovation, refreshment exclusives & sourcing advantages 5

nemo2014\Presentations\Analyst Presentation Jan14\201401 Nemo Analyst Presentation Master-22nd Jan FINAL.pptx Delivering on the PawPrint supports the core drivers of growth Key Growth Drivers Product and Innovation VIP Club LFL Omnichannel Drivers of Core Growth Services (Vets & Groomers) Optimised Store Space & Pet Services Roll Out Product Mix & Own Brand Margin Services Maturity 6

nemo2014\Presentations\Analyst Presentation Jan14\201401 Nemo Analyst Presentation Master-22nd Jan FINAL.pptx Becoming more loved by pet owners

nemo2014\Presentations\Analyst Presentation Jan14\201401 Nemo Analyst Presentation Master-22nd Jan FINAL.pptx Our customer is the engaged pet owner What defines an engaged customer? 4.50 4.00 3.50 3.00 Non PaH customer PaH customer 2.50 2.00 My pets are a I like to I always look Nothing that I My pets are I tell my pets I I take my pets very big part of pamper my for the buy is too good my children love them at to the vet my life pets and make cheapest for my pets least twice a regularly for them feel prices when day check-ups special buying pet * food Source: Pets at Home survey of >5,000 pet owners July 2015 Note: 5 = “Strongly agree”, 1 = “Strongly disagree” * Scores reversed for this question 8

nemo2014\Presentations\Analyst Presentation Jan14\201401 Nemo Analyst Presentation Master-22nd Jan FINAL.pptx To become more loved by engaged owners, we focus on the criteria they value most: range, quality & advice Customer rankings of key purchase criteria from 1-5 (where 5 is most important) 5.00 4.00 3.00 2.00 Highly engaged pet owners Low engagement pet owners 9

nemo2014\Presentations\Analyst Presentation Jan14\201401 Nemo Analyst Presentation Master-22nd Jan FINAL.pptx A wide range of Services & specialist advice from colleagues give customers more reasons to shop with us 10

nemo2014\Presentations\Analyst Presentation Jan14\201401 Nemo Analyst Presentation Master-22nd Jan FINAL.pptx Showcase our knowledge & passion, to help customers make the most of their lives together Ensure colleagues have more, not less, Widen the range of care plans in our vet customer facing time practices Help every customer to feed a better diet – Be the first place people think of when they bridge the gap to AN buy a new pet 11

nemo2014\Presentations\Analyst Presentation Jan14\201401 Nemo Analyst Presentation Master-22nd Jan FINAL.pptx Strengthening our specialist credentials 12

nemo2014\Presentations\Analyst Presentation Jan14\201401 Nemo Analyst Presentation Master-22nd Jan FINAL.pptx Expand & enhance our range of premium pet food diets Develop & widen private label New brands Wainwright’s frozen Exclusive launch of US brand New private labels Innovate High quality dehydrated food Targeted at small breeds 13

nemo2014\Presentations\Analyst Presentation Jan14\201401 Nemo Analyst Presentation Master-22nd Jan FINAL.pptx And use VIP to move customers towards better pet diets & ultimately, up to Advanced Nutrition 14

nemo2014\Presentations\Analyst Presentation Jan14\201401 Nemo Analyst Presentation Master-22nd Jan FINAL.pptx Develop the relationship with our VIPs, moving towards a lifetime value view of the customer We are here Designed around My VIP Personalised Pet Personal online offers & content  Advanced Nutrition Brand specific rewards  Prescription food Blunt relationship  Tailored food offerings Repeat order reminders  Relevant vet benefits  Customer  Tailored health and hygiene Tailored services  Simple pet info  All key pet types / ages / Pet specific content  Generic communications  Breeds ...  Some pet targeting  3 rd party services Best value and Sign up priority for VIPS 15

nemo2014\Presentations\Analyst Presentation Jan14\201401 Nemo Analyst Presentation Master-22nd Jan FINAL.pptx Stores will always be a fundamental part of our proposition Customers want to bring their Average basket <£20, not a pet, & talk pet with other natural online market owners c50% of our online orders are Store convenience for frequent picked up in-store food purchase Live pet & grooming provides Vet & grooming services will entertainment & education never be delivered online 16

nemo2014\Presentations\Analyst Presentation Jan14\201401 Nemo Analyst Presentation Master-22nd Jan FINAL.pptx Whilst adapting to our customers shopping habits by working towards a seamless offline & online experience Order in-store kiosks Increase extended VIP App online product range Greater Order in-store potential for via colleague online bookings PetPads Digital screens Richer online to showcase content & extended imagery range 17

nemo2014\Presentations\Analyst Presentation Jan14\201401 Nemo Analyst Presentation Master-22nd Jan FINAL.pptx Trialling new formats offers further routes to growth & retains our specialist edge over the competition Niche, additional market segment For the core Pets at Home customer Highly engaged dog owners Convenience format Affluent high street locations Infill locations or towns without retail parks 18

nemo2014\Presentations\Analyst Presentation Jan14\201401 Nemo Analyst Presentation Master-22nd Jan FINAL.pptx Grow our veterinary business through through convenience & specialisms Our primary practices can inter-refer & leverage the benefits of other Vet Partners In-store or standalone In-store or standalone Particular Particular pet Extended Extended pet specialists hours hours specialists Primary Practices CT Super Super CT scanner Surgery scanner Surgery 24/7 24/7 19

nemo2014\Presentations\Analyst Presentation Jan14\201401 Nemo Analyst Presentation Master-22nd Jan FINAL.pptx Acquiring specialist referral hospitals to access an additional and complementary segment of the market Solidifies our specialist credentials & reputation Captures additional market spend Vertical integration Minimises revenue leak from primary practices 20

nemo2014\Presentations\Analyst Presentation Jan14\201401 Nemo Analyst Presentation Master-22nd Jan FINAL.pptx The long term potential of our retail and services model 21