Super Retail Group Limited · ASX:SUL
Super Retail — H1 2011 Earnings Presentation
16 slides from Super Retail's earnings presentation, Feb 23, 2011
Slide 1: Super Retail Group Results for the 26 weeks to 1 January 2011
For personal use only Super Retail Group Results for the 26 weeks to 1 January 2011 Peter Birtles, Managing Director Gary Carroll, Chief Financial Officer 23 February 2011
Slide 2: Group Highlights
Group Highlights For personal use only • Group Net Profit After Tax up by 44% over PCP on an underlying basis • Group EBIT up by 41% over PCP on an underlying basis • Group Sales up by 21.2% over PCP • Maintaining solid like for like sales growth in key SCA and BCF brands • Strong gross margin perfo
Slide 3: Performance Trends
Performance Trends For personal use only Sales ($m) EBIT ($m) 561.9 41.4 463.6 412.8 365.7 28.3 312.3 23.6 21.8 16.0 Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 EPS (cents) Post Tax ROC (%) 19.8 20.3 17.0 15.2 15.6 13.7 14.4 11.7 12.7 8.5 Dec 06 Dec 07 Dec 08 Dec 09 Dec 09
Slide 4: Group Results
Group Results For personal use only • Strong performance driven by top-line growth 2010/11 Change and gross margin improvement $m on pcp • Solid sales growth in both SCA and BCF through both new store and LFL growth Sales 561.9 21.2% • EBIT margin growth in both divisions • Group NPAT impacted by EB
Slide 5: Business Unit Results
Business Unit Results For personal use only 2010/11 2009/10 Sales EBIT Sales EBIT * $m $m $m $m Auto & Cycle Retailing 360.5 27.2 338.1 18.9 Leisure Retailing 201.4 18.2 125.5 11.4 Group Costs** (4.0) (1.9) Total Group 561.9 41.4 463.6 28.3 * - excludes goodwill impairment charge ** - Group Costs in
Slide 6: Auto & Cycle Retailing
Auto & Cycle Retailing For personal use only • Supercheap Auto delivering an excellent result 2010/11 change on $m pcp • Maintained momentum in LFL sales growth through the year building on 6.1% growth in PCP. Growth driven by new products, own Sales 360.5 6.6% brand range development, supply perfor
Slide 7: Leisure Retailing
Leisure Retailing For personal use only 2010/11 change on • 7 BCF stores opened during the period to bring total stores to 76; 8 Ray’s Outdoors stores $m pcp opened to take total stores to 46 • BCF LFL growth was impacted by continued Sales 201.4 60.5% adverse weather along East Coast – LFL growth e
Slide 8: Group Cash Flow
Group Cash Flow For personal use only 6 months to December 2010/11 2009/10 • Headline Operating Cash Flow was impacted by the timing of payment of $m $m December creditors relative to PCP Operating cash flow (pre store 59.7 59.2 • On a like-for-like basis, operating cash flows pre store set up inves
Slide 9: Group Balance Sheet
Group Balance Sheet For personal use only Dec 10 Jun 10 $m $m • SCA average inventory of $563k per store is in line with PCP, with continued focus on supply chain efficiencies and stronger A$ Inventory offsetting the increased stock weight of higher value products - Auto and Cycle 170.4 160.7 - Leis
Slide 10: Returns & Capital Ratios
Returns & Capital Ratios For personal use only • Improvement in EPS and fixed charge 2010/11 2009/10 coverage ratio reflect the improved profit performance EPS – reported 20.3c 14.4c • All cover ratios are well within covenanted levels Fixed charge cover 1.99x 1.95x • CBA and HSBC have joined ANZ to
Slide 11: Group Strategy Update
For personal use only Group Strategy Update
Slide 12: Auto & Cycle Retailing
Auto & Cycle Retailing For personal use only • Channel Development • Channel Development • Potential for around 320 stores • Potential for around 150 stores across including 20 superstores Australia and New Zealand • Refurbishment program at circa 30 • Relocating 7 existing stores stores per year •
Slide 13: Leisure Retailing
Leisure Retailing For personal use only • Channel Development • Channel Development • Potential for around 90 stores • Potential for around 60 stores • Store refresh program • Web site & online sales development • Ongoing development of on-line • Merchandise and Marketing • Merchandise and Marketing
Slide 14: Group Initiatives
Group Initiatives For personal use only Team Development Inventory and Supply Management • Learning and Development • Demand forecasting systems • Health and Safety • Strategic supply modelling • Performance & Succession Management • Supply chain methods • Recruitment, Engagement & Communication • S
Slide 15: Looking Forward
For personal use only Looking Forward
Slide 16: Looking Forward
Looking Forward For personal use only Auto & Cycle Retailing • Expect to open two to three stores, close one SCA store and refurbish 21 SCA stores (including two as Superstores) during the 2nd half • SCA LFL sales growth in the first 7 weeks of 2nd half circa 4% • Gross Margin improvement on PCP to