Super Retail Group Limited · ASX:SUL
Super Retail — H1 2020/21 Earnings Presentation
37 slides from Super Retail's earnings presentation, Feb 17, 2021
Slide 1: 2021 – Half Year Results Presentation
17 February 2021 ASX Announcement 2021 – Half Year Results Presentation Super Retail Group Limited (ASX:SUL) provides its 2021 – Half Year Results Presentation to the market. For further information contact: Investor enquiries: Robert Wruck, Head of Investor Relations Ph.: 0414 521 124 E: robert.wru
Slide 2: 2020/21 Half Year Results Presentation
Super Retail Group Limited 2020/21 HALF YEAR RESULTS PRESENTATION Authorised for release by the Super Retail Group Board Inspiring you to live your passion 17 February 2021
Slide 3: Contents
Contents • Group highlights • 2020/21 first half financial results • Corporate strategy • 2020/21 trading update • Appendix SUPER RETAIL GROUP 2
Slide 4: Group highlights
Group highlights SUPER RETAIL GROUP 3
Slide 5: Executive summary
Executive summary WELL EXECUTED OMNI-RETAIL STRATEGY DELIVERS A RECORD FIRST HALF RESULT • Record first half result driven by strong top line growth, higher gross margin and disciplined cost management • Successfully executed our omni-retail strategy to capture strong customer demand despite the cha
Slide 6: Financial highlights
Financial highlights SALES • Group sales up 23.1% to $1,776.3m • Group LFL sales growth of 23.8%1 • Group segment EBITDA up 94.9% to $311.4m2 EARNINGS • Group segment EBIT up 121.8% to $256.0m2 • Group segment EBIT margin up 6.4% to 14.4%2 • Statutory NPAT up 201% to $172.8m • Underlying NPAT up 139
Slide 7: Operating highlights
Operating highlights CUSTOMERS • 7.1m active club members up 10.9% on pcp • Average customer NPS 59.8%1 • Active club members represent 61.6% of Group sales OMNI-CHANNEL • Fulfilled over 2m online orders, up 93% on pcp • Click & Collect sales up 73.7% on pcp to $107.8m • Home delivery sales up 100.3
Slide 8: Environmental, social and governance (ESG) highlights
Environmental, social and governance (ESG) highlights ACTING WITH • Increased Dow Jones Sustainability Index score from 52 to 60 INTEGRITY • Included in the SAM Sustainability Yearbook 2021 as a Sustainability leader in the retailing industry • Yearly communication on progress to the United Nations
Slide 9: Strong revenue growth
Strong revenue growth THE GROUP’S THREE LARGEST BRANDS DELIVERED STRONG TOP LINE GROWT H. MACPAC WAS IMPACTED BY COVID-19 LOCKDOWNS IN AUCKLAND AND MELBOURNE1 GROUP 1H SALES GROWTH SALES ($M) BY BRAND SALES LFL SALES 1H GROWTH(%)2 GROWTH (%)2 20.2 19.6 14.93 17.1 1,776 1,403 1,444 50.9 50.8 1,296 1,
Slide 10: Online sales grew by 87 per cent to $237m
Online sales grew by 87 per cent to $237m ONLINE SALES REPRESENTED 13% OF GROUP FIRST HALF SALES (COMPARED TO 9% IN PCP) 1H ONLINE SALES ($M) BRAND PERFORMANCE 4 YR CAGR 64% ONLINE ONLINE SALES ONLINE AS % OF SALES ($M) GROWTH VS PCP (%) TOTAL SALES 54 46 8 120 102 19 237 51 113 12 127 104 80 13 94
Slide 11: 93% of total sales involve a customer visiting a store
93% of total sales involve a customer visiting a store EXECUTING OUR OMNI RETAIL STRATEGY TO MEET CUSTOMER DEMAND GROUP SALES BY CHANNEL1 BRAND SALES BY CHANNEL1 Click & Home In-store (%) Collect (%) Delivery (%) ONLINE % OF TOTAL 92 6 2 SALES ONLINE SALES 7% HOME DELIVERY 55 81 6 13 6% CLICK & 88 7
Slide 12: Large, growing and active club loyalty membership base
Large, growing and active club loyalty membership base CLUB MEMBERSHIP AND SALES FROM CLUB MEMBERS HAVE CONTINUED TO GROW 1.88M active1 3.08M active1 12% 1.77M active1 0.41M active1 club members 11% 16% 13% club members club members club members from 63% NPS2 from 62% 53% NPS2 58% 63% NPS2 from 67%
Slide 13: Attracting and retaining loyal customers
Attracting and retaining loyal customers EXPANDING CUSTOMER LOYALTY BASE A KEY DRIVER OF EARNINGS GROWTH • Attracted an additional 700,000-plus customers to our loyalty programs in ACTIVE ONLINE CLUB MEMBERS BY BRAND the past 12 months to reach 7.1m-plus members 4 YR CAGR 59% • Club loyalty members
Slide 14: Active club membership growth outpacing store growth
Active club membership growth outpacing store growth ACTIVE CLUB MEMBERS HAVE GROWN FOUR TIMES FASTER THAN STORE NUMBERS IN THE PAST 4 YEARS STORE NUMBERS AND ACTIVE CLUB MEMBERS 720 8 7.1 4 year growth 700 6.4 7 5.8 Active members: 5.3 6 +48% 680 4.8 5 Stores: 660 +11% 4 640 697 697 688 3 620 2 640
Slide 15: Growing our four core brands
Growing our four core brands KEY SECOND HALF INITIATIVES FOR 2020/21 • Store refresh acceleration – • Introduce successful rCX • Deliver local and regionally • Range Macpac in select refurbish 22 stores store format in new relevant ranges through a BCF and rebel stores in • Grow dedicated service lo
Slide 16: Key opportunities to create shareholder value
Key opportunities to create shareholder value LEARNING FROM OUR SUCCESS DURING COVID-19 LOCKDOWN Opportunity 1H 2020/21 Achievement How we can deliver on the opportunity • Significant expansion in Group gross margin driven by • Improve sourcing Rebase Group reduced promotional activity • Leverage qu
Slide 17: 2020/21 first half financial results
2020/21 first half financial results SUPER RETAIL GROUP 16
Slide 18: Group results
Group results 1H 2020/21 1H 2020/21 1H 2019/20 Change $m Post AASB 16 Pre AASB161 Pre AASB 16 % Total sales 1,776.3 1,776.3 1,443.5 23.1% Total segment EBITDA 418.1 311.4 159.8 94.9% Segment D&A (146.1) (55.4)2 (44.4) 24.8% Total segment EBIT 272.0 256.0 115.4 121.8% Normalised NPAT 175.6 177.1 74.1
Slide 19: Segment results
Segment results $m 1H 2020/21 1H 2019/20 Segment Sales EBIT1 Sales EBIT Supercheap Auto 661.9 104.1 550.7 57.3 Rebel 623.7 99.6 542.8 53.7 BCF 427.7 62.0 283.5 12.1 Macpac 63.0 3.5 66.5 2.3 Group and (13.2) (10.0) Unallocated Total 1,776.3 256.0 1,443.5 115.4 SUPER RETAIL GROUP (1) Pro forma as if A
Slide 20: Supercheap Auto
Supercheap Auto • Total sales growth of 20.2% driven by like-for-like sales growth and 1H 2020/21 Change 1H 2020/21 contribution from new stores $m Pre AASB 161 on PCP2 Post AASB 16 • Like-for-like sales growth of 19.6% reflected both transaction growth and increased units per sale driving higher av
Slide 21: rebel
rebel • Total sales growth of 17.0%1 driven by like-for-like sales growth 1H 2020/21 Change 1H 2020/21 • Like-for-like sales growth of 17.1% was driven by transaction growth and $m Pre AASB 162 on PCP2,3 Post AASB 16 higher average transaction value • Queensland and NSW were the best performing stat
Slide 22: BCF
BCF • Total sales increased by 50.9% driven by like-for-like sales growth 1H 2020/21 Change 1H 2020/21 • Like-for-like sales increased by 50.8% due to increased transactions $m Pre AASB 161 on PCP2 Post AASB 16 and higher average transaction value Sales 427.7 50.9% 427.7 • Material uplift in boating
Slide 23: Macpac
Macpac • Sales fell by 5.3% as a result of a 3.3% decrease in like-for-like sales and store closures and relocations 1H 2020/21 Change 1H 2020/21 $m Pre AASB 161 on PCP2 Post AASB 16 • In New Zealand, like-for-like sales increased by 15.6% despite store closures in Auckland due to COVID-19 lockdown
Slide 24: Group & unallocated
Group & unallocated • Group and unallocated includes: 1H 2019/20 • Corporate costs not allocated to segments 1H 2020/21 Change on 1H 2020/21 $m Pre AASB Pre AASB 161 PCP2 Post AASB 16 • Commercial operations 16 • Omni-retail development EBIT (13.2) (10.0) (3.2) (13.2) • Total costs of $13.2m (EBIT)
Slide 25: Group balance sheet
Group balance sheet Pro Forma Dec 19 Statutory Dec 20 $m Pre AASB 16 Dec 202 pre AASB 161 • Inventory increased by $19.4m compared to pcp and reflects higher Inventory stock in transit (up $43.2m) Supercheap Auto 249.7 212.5 249.7 • Higher inventory levels in Supercheap Auto, BCF and Macpac reflect
Slide 26: Returns, capital ratios and fx
Returns, capital ratios and fx Pro Forma 1H 1H 2020/21 1H 2019/20 2020/21 Post Pre AASB 16 Pre AASB162 AASB16 • Normalised EPS of 78.6 cents, 109.6% higher than pcp • Basic EPS (Pre AASB 16) of 77.4 cents, 148.9% higher than pcp and Normalised EPS1 78.6 37.5 77.9 reflects a significant reduction in
Slide 27: Group cash flow
Group cash flow 1H 2020/21 1H 2019/20 1H 2020/21 $m Pre AASB 161 Pre AASB 16 Statutory • Operating cash flow (pre AASB 16) was $420.0m which was Operating cash flow 420.0 239.1 527.2 $180.9m higher than the prior comparative period. Stores (10.4) (8.6) (10.4) • Total capital expenditure of $29.4m wa
Slide 28: Corporate strategy
Corporate strategy SUPER RETAIL GROUP 27
Slide 29: Our strategy
Our strategy THE THREE PRIMARY VALUE LEVERS FOCUS ON GROW BE AN ORGANIC ANNUAL EFFICIENT GROWTH & CUSTOMER OMNI- CAPITAL VALUE RETAILER DISCIPLINE 5 STRATEGIC DRIVERS GROW THE FOUR LEVERAGE CLOSENESS CONNECTED OMNI- SIMPLIFY THE EXCEL IN OMNI- CORE BRANDS TO OUR CUSTOMER RETAIL SUPPLY CHAIN BUSINESS
Slide 30: Strategy execution remains on track
Strategy execution remains on track GROW THE FOUR LEVERAGE CLOSENESS CONNECTED OMNI- SIMPLIFY THE EXCEL IN OMNI- CORE BRANDS TO OUR CUSTOMER RETAIL SUPPLY CHAIN BUSINESS RETAIL EXECUTION Current Focus Areas • rebel rCX stores (Doncaster, • Investment in analytical insight • Group sourcing optimisati
Slide 31: Trading update
Trading update SUPER RETAIL GROUP 30
Slide 32: 2020/21 trading update
2020/21 trading update • Group like-for like sales growth of 25.2% as at week 331 H1 LFL sales (%) H2 LFL sales (%) YTD LFL sales (%) Weeks 1-26 Weeks 27-33 Weeks 1-33 Supercheap Auto 19.6 23.1 20.3 rebel 17.1 18.4 17.4 BCF 50.8 71.2 55.1 Macpac (3.3) 8.0 (1.2) Group Total 23.8 30.5 25.2 • Strong tr
Slide 33: Appendix
Appendix SUPER RETAIL GROUP 32
Slide 34: Performance Trends
Performance Trends Reported Sales ($m) Reported Total Segment EBIT ($m) 256 1,776 1,403 1,444 1,296 1,324 1,159 1,216 1,037 1,096 125 115 115 114 759 100 101 94 93 562 413 464 62 24 28 41 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 08 Dec 09 Dec 10
Slide 35: Segment note
Segment note H1 2020/21 SUPER RETAIL GROUP 34
Slide 36: Segment note
Segment note H1 2019/20 SUPER RETAIL GROUP 35
Slide 37: Disclaimer
Disclaimer This presentation was prepared by Super Retail Group Limited (ACN 108 676 204) (“SRG”). The presentation is not an invitation or offer for subscription or purchase or recommendation of securities. It does not consider the investment objectives, financial situation and particular needs of
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