Super Retail Group Limited · ASX:SUL
Super Retail — Super Cheap Auto Group — Shareholder Meeting (October 2006)
18 slides from Super Retail's shareholder meeting presentation, Oct 26, 2006
Slide 1: Super Cheap Auto Group Annual General Meeting Presentation
Super Cheap Auto Group Annual General Meeting Presentation Peter Birtles Managing Director 26 October 2006
Slide 2: AGM Presentation
AGM Presentation • 2005/06 Group Results • Group Strategy Update • Q1 2006/07 Trading Results 2
Slide 3: 2005/06 Group Results
2005/06 Group Results BOATING * CAMPING » FISHING
Slide 4: 2005/06 Group Results - Highlights
2005/06 Group Results - Highlights • Underlying Group EBIT increasing by 11% • Supercheap Auto gaining market share and at the same time growing gross and net margins in difficult trading conditions • Average inventory investment across Supercheap Auto stores reducing by over 10% whilst improving on
Slide 5: Group Results – 52 Weeks to 1 July 2006
Group Results – 52 Weeks to 1 July 2006 $m Reported Underlying • Strong underlying profit performance change on change driven by good control of gross py on py margins and costs • Strong cash flow arising from inventory Sales 525.9 11.9% 14.0% reductions, while improving store in- stock positions EB
Slide 6: Supercheap Auto Results - 52 weeks to 1 July 2006
Supercheap Auto Results - 52 weeks to 1 July 2006 • Store opening schedule on track 2006 % change – 234 Stores at 1 July 2006 on py – 196 in Australia and 38 in New Zealand $m Sales • Market share gains achieved in all major - Total 481.8 3.6% categories with both total and LFL growth ahead of the o
Slide 7: BCF Results - 52 weeks to 1 July 2006
BCF Results - 52 weeks to 1 July 2006 • Business launched as BCF on 15 2006 Launch October 2005 Target $m $m – 4 stores traded under Camp Mart brand from start of the year until BCF launch Sales 44.2 40.0 • Store Numbers: – 31 Dec 2005 - 12 Gross margin 35.7% 34.5% – 1 July 2006 – 13 EBIT pre set up
Slide 8: Group Cash Flow - 52 weeks to 1 July 2006
Group Cash Flow - 52 weeks to 1 July 2006 2006 2005 $m $m • Strong cash flow performance driven by the reduction in net inventory Operating cash flow 45.9 15.2 investment per store (pre store set up) – This has delivered a cash flow New store set-up costs & (19.1) (11.2) benefit of $12.1m working ca
Slide 9: Group Strategy Update
Group Strategy Update BOATING * CAMPING » FISHING
Slide 10: Strategic Priorities
Strategic Priorities • Reinvigorating the Supercheap Auto offer • Expansion of the Supercheap Auto network • Expansion of the BCF network • Improving margins to fund reinvestment and grow profits • Developing our Procurement and Supply Chain capabilities • Developing our People 10
Slide 11: Reinvigorating the SCA offer
Reinvigorating the SCA offer • Chermside concept store trial proving successful – Customer reaction positive with sales uplift > 15% • Refurbishing 10 higher turnover stores by Christmas – Burleigh store refurbished at beginning of September – sales uplift > 15% – Rockhampton and Browns Plains store
Slide 12: Expansion of the SCA Network
Expansion of the SCA Network • 239 stores trading today – 5 stores opened so far this year • Development of 4 discrete formats – Existing ‘700’ format stores – ‘400’ format stores – smaller regional and higher rental urban locations – ‘200’ format stores – trial of shopping centre opportunities – Su
Slide 13: Expansion of the BCF Network
Expansion of the BCF Network • 17 stores trading today • Opened 4 new stores at Midland and Cannington (WA) and West Gosford and Port Macquarie (NSW) since 1 July • Expect to open at least another 6 stores before Christmas • New Stores will be targeted towards NSW, WA, NT and Qld • Performance to da
Slide 14: Improving Margins and Developing Procurement and Supply Chain Capabilities
Improving Margins and Developing Procurement and Supply Chain Capabilities • Procurement gains have generated an 0.5% pt improvement in gross margin – further improvement anticipated in FY2007 • Overseas sourcing team operating out of Hangzhou offices • Relocated New Zealand distribution centre in J
Slide 15: Developing our People
Developing our People • The successful development and retention of loyal and passionate team members will be a source of competitive advantage for the Group • Introducing a suite of team member development programs – Leadership development – Product knowledge – Customer service – Process and system
Slide 16: Q1 2006/07 Trading Results
Q1 2006/07 Trading Results BOATING * CAMPING » FISHING
Slide 17: Q1 2006/07 Trading Results
Q1 2006/07 Trading Results • Supercheap Auto – Strongest sales performance for 6 Quarters • discretionary and non discretionary categories performing well • increased promotional program compared to the prior year • positive response to new marketing campaign • 2 refurbished stores exceeding initial
Slide 18: Q1 2006/07 Trading Results - Sales
Q1 2006/07 Trading Results 1st Quarter Sales 2006 2005 Total LFL $m $m Growth Growth % % Supercheap Auto Australia 113.6 103.1 10.2% 3.7% New Zealand 12.7 12.0 * 5.8% 0.4% 126.3 115.1 9.7% 3.3% BCF 14.8 3.1 377% n/a Group 141.1 118.2 19.4% n/a * Total growth in New Zealand stores in local currency –
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