Spar Group Limited · JSE:SPP
Spar — The SPAR Group — Conference Presentation (March 2021)
38 slides from Spar's conference presentation, March 2021
Slide 1: SPAR Switzerland Store Tours
THE SPAR GROUP LTD SPAR SWITZERLAND STORE TOURS MARCH 2021
Slide 2: 305 537 m² 33 113 m² 33 000 m²
2 414 1 391 333 219 305 537 m² 33 113 m² 33 000 m² 24 584 m² R78.6bn R29.9bn R13.6bn R2.1bn 63.2% 24.1% 11.0% 1.7% (2019: 67.8%) (2019: 22.7%) (2019: 9.5%) (2019: 0.0%)
Slide 3: SPAR Switzerland
SPAR Switzerland • Excellent performance • Sales growth of 11.6% in CHF terms • Noticeable change in retail landscape with closure of shopping malls during hard lockdown • Community driven stores preferred over big supermarkets • TOP CC boosted by restaurant open during summer months • PAM & Edelwei
Slide 4: SPAR Group Switzerland history
© In 1989, SPAR Group Switzerland, based in Gossau SG, was awarded the SPAR licence. a We Since April 2016, SPAR Group Switzerland has been a subsidiary of the South African SPAR Group Ltd.
Slide 5: Gossau distribution centre
Gossau St. Gallen 33 DOO m2 } woewsesvs ’ CHF 26 mi | lion } Value of goods in central warehouse 28 million } Cases dispatched 32 } Trucks
Slide 6: Current Format Overviews
CURRENT FORMAT OVERVIEWS
Slide 7: 12,455 11,950 3,800 2,360 1,510 1,768 6 616 192
12,455 618 11,950 944 3,800 570 2,360 219 1,510 151 1,768 586 616 192
Slide 8: Not Measured.
Not Measured. 14 1,480 31 317 11
Slide 9: Store format comparison
4500 plus m² trading area 90 to 250 m² trading area 250 to 1100 m² trading 750 plus m² trading area Number of SKUS less than Number of SKUS less than area Number of SKUS less than 30’000 2’500 Number of SKUS less than 5’000 Trading hours Mon to Sat Trading hours Mon to Sun 3’500
Slide 10: Geographic store footprint
GEOGRAPHICALLY oe *) Kempten a des Ballons ides Vosges Ravensbura Vesoul. oI SPAR Retailer te h8 Qetony Besangon a Dole = SPAR Company Stores Champegnole Lons-le-Saunier . ° 4 Parco Store-Service Stores’) °°°°° oyonnax dell’Adameliof co i Parco delle ips A Orobie! bd Ambérieusen-Bugey Bergamasche Le
Slide 11: New Business
NEW BUSINESS Sua ServiceAG Le Aen @ 93.5 Mil / wm AV/A
Slide 12: Conversion to SPAR Express
SOSTORES, , SUISTORES ' Conversion to SPAR Express | | [Investment in interior fittings & fixtures ] OOOOOOOOGOE express
Slide 13: SPAR portfolio and neighborhood convenience
The SPAR portfolio is built upon the premise of neighborhood convenience, with the focus on growing and developing SPAR Express, SPAR Mini and SPAR Supermarket concepts – these stores fall into the small to mid-sized segment of the industry. We believe there is potential to expand on our larger SPAR
Slide 14: Organic Development Opportunities
ORGANIC DEVELOPMENT OPPORTUNITIES Since 2017 we have upgraded and converted 73 of the old generation SPAR stores, and their growth remains ahead of the group average. The new upgraded stores have been focused on fresh and convenience in the communities and have included concepts covering wine and be
Slide 15: Full Conversion
FULL 56 74 82 72 CONVERSION 2 2 + 80.8% 13.8% 4.7% 20.9% 21.8% - -
Slide 16: SPAR Natural
As the world becomes more health-orientated, consumers demand more from the wellness industry and are turning to their local convenience stores and supermarkets to meet their day-to-day needs, as opposed to traditional specialist suppliers. SPAR Natural caters to those with specific dietary needs, f
Slide 17: BeanTree concepts
We have implemented 74 BeanTree concepts into our SPAR stores and continue to include them in all upcoming revamps and new projects. Our specialised coffee units allow for self-service efficiencies.
Slide 18: Freezer-to-oven bakery
Our BeanTree coffee offering is complimented by our freezer-to-oven bakery solution. Our Bakery set-up ensures minimal labour costs, consistency in quality and multiple baking times – aiding in the reduction of food waste.
Slide 19: Trinkgenuss
Trinkgenuss emerged as an interdepartmental concept, to compensate for stores without a separate liquor store and became an instant in-store favourite. The concept revolves not only around the purchasing of alcoholic beverages but the culture and enjoyment around it. Trinkgenuss is comprised of wine
Slide 20: Kleine Welt
Kleine Welt functions as a store-within-a-store concept, aimed at satisfying the needs of parents within the SPAR community. When it comes to our loved ones, particularly the new little additions to our families, we prioritise shopping around greater quality, safety and availability.
Slide 21: Pfoten Paradies
Pfoten Paradies was created in response to customer’s needs around their pets. SPAR becomes a one-stop shop that fulfils the needs of consumer’s beloved pets, without compromising quality.
Slide 22: Sustainability Initiatives
SUSTAINABILITY INITIATIVES GUTES TUN! Esist Zeit umzudenken. ZA ec << We also make our contribution to ae sustainable environmental protection in this area and collect tons of valuable materials for the recycling cycle every day. > > 4 522 Tonnen 10 Tonnen 1451 Tonnen 120 Tonnen ® PET Batterien Kart
Slide 23: Fighting food waste
The average family in Switzerland throws away 850 FRANCS worth of food a year | Mission from supermarkets across Europe have signed up to fight food waste SPAR Switzerland has been a member of for two years. Our partners can use this platform to offer their still fresh products for collection instea
Slide 24: Too Good To Go
Solutions like too good to go, provide a simple solution for SPAR retailers to avoid wasting food.
Slide 25: Plastic reduction initiatives
Removal of all single-use plastic bags Cash receipt (on request only) Fruit and veg (net bag) – no plastic packaging Recycling station Tetra bottles (around 18 sites as a test) SPAR Natural filling stations Removal of 30% plastic in packaging of products An example of new paper Produce Packaging
Slide 26: SPAR DC Environmental Commitment
— + SPAR DC Initiatives Environmental Commitment a\__| EN commitment P = Hybrid) on the road since 15.08.2012 2 | COMMITMENT a Combined Truck/Rail | road/rail since 06.08.2018 3 Es es ruck, ‘on the road since 01.08.2020 - - 12-Truck ea from April 2021 4 LATEST INNOVATION
Slide 27: Looking Forward: SPAR Brands and Adaptability
LOOKING FORWARD SPAR BRANDS AND ADAPTABILITY ww = - The key focus from both a retail and DC perspective is the ’ implementation of our SPAR brand strategy. 2 \.
Slide 28: Private label 15/70/15 split
=< Kartoffeln fe tt N‘l SPAR] (SPAR) PREMIUM 15% 15% ® CORE RANGE 70% While all three private labels represent the SPAR Brand, they are to be divided into a 15/70/15 ratio of focus - with the core range holding the major share.
Slide 29: SPAR Core Range
[SPARI) CORE RANGE Rass PSE @ ZH fresh fi Alote SPAR PREMIUM
Slide 30: Everyday low price range
N'T It’s our everyday low price choice of products with a good quality standard.
Slide 31: Core range
L SPARIQ) CORE RANGE . . Best price performance ratio for our customer. Guaranteed brand quality with attractive prices. SEES t (3% Apfelessig Allzweckbeutel pe : Sachets multivsage | Saccheti muitos 20x45 0m S Alizwockboute!, 8a z
Slide 32: Premium range
moon = indulgence for all your senses" PREMIUM The products are made from carefully selected ingredients and are characterised by outstanding quality and delicious flavour. They include both national and international specialities, SEARS nutrient-preserving and traditional production methods. Schoko
Slide 33: Looking Forward
LOOKING FORWARD Being small has its advantages - we are able to adapt our systems and processes to meet the ever-changing expectations of the consumer. We are currently in process of piloting automated retailing, self-scanning stores, online retailing and will continue to innovate in the area of cre
Slide 34: Automated retailing pilots
Technology Technology • Video cameras • Scanning by app Target Target • Shopping at night without • Shopping without employees employees Project status Project status • In planning • Hardware installed • Software testing
Slide 35: Logistics automation
In order to meet the need for expansion and ensure that our logistics remains competitive, automation will be a key focus area for logistics in the short and medium-term future. • Regarding expansion: the growth opportunities will create pressure on the goods handling space at the St. Gallen distrib
Slide 36: Questions
questions
Slide 37: Forward-looking statements
This presentation contains forward-looking statements about the company’s operations and financial conditions. They are based on SPAR Group Limited’s best estimates and information at the time of writing. They are nonetheless subject to significant uncertainties and contingencies, many of which are
Slide 38: Thank You
Thank You for joining us
The SPAR Group — Conference Presentation (March 2021) on 6ix