Slide 1: Results for the 52 weeks to 28 June 2014
For personal use only Results for the 52 weeks to 28 June 2014 Peter Birtles, Group Managing Director David Burns, Chief Financial Officer 21 August 2014
Slide 2: Contents
Contents For personal use only 2013/2014 Financial Results 2014/2015 Outlook Group Strategy 2
Slide 3: 2013/2014 Financial Results
For personal use only 2013/2014 Financial Results 3
Slide 4: Group Highlights
Group Highlights • Group NPAT up by 5.6% Sales LFL % 13/14 12/13 11/12 10/11 09/10 08/09 For personal use only • Group EBIT up by 6.0% SCA 2.4% 2.3% 5.2% 3.5% 3.4% 6.1% • Group Sales up by 4.6% Leisure* -0.2% 1.6% 2.8% 9.9% 1.5% 8.8% 2.6% 5.5% 8.3% 7.8% * Leisure is BCF only until • Dividends up by
Slide 5: Performance Trends
Performance Trends Sales ($m) For personal use only EBIT ($m) 182.6 172.3 2020 2112 140.7 1654 87.5 1092 829 938 65.8 715 55.1 625 38.1 45.7 Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun 07 08 09 10 11 12 13 14 07 08 09 10 11 12 13 14 EPS (cents) * Post Tax ROC (%) 52.3 55.1 15.4 1
Slide 6: Group Results
Group Results 2013/14 Change For personal use only • Auto and Sports sales growth supported by both $m on pcp new store and LFL growth • New stores have delivered sales growth for Leisure. LFL and gross margin performance below expectations in BCF impacting EBIT Sales 2,112.1 4.6% performance for Le
Slide 7: Divisional Results
Divisional Results 2013/14 2012/13 For personal use only Sales EBIT Sales EBIT $m $m $m $m Auto Retailing 818.2 94.5 789.0 87.1 Leisure Retailing 552.5 33.0 522.5 33.2 Sports Retailing 734.0 62.8 703.5 63.4 Group & Unallocated 7.4 (7.7) 5.0 (11.4) Total Group 2,112.1 182.6 2,020.0 172.3 • Leisure Re
Slide 8: Auto Retailing
Auto Retailing 2013/14 change on For personal use only • Divisional result includes Supercheap Auto and Auto Trade Direct $m pcp • Sales growth delivered from both solid LFL sales growth and new stores. Sales 818.2 3.7% • All categories have grown LFL sales with the exception of a subset of Tools an
Slide 9: Leisure Retailing
Leisure Retailing 2013/14 change on • Total sales growth driven by new stores in BCF For personal use only and Ray’s Outdoors stores $m pcp • BCF LFL sales decline has been driven by lower transactions due to new store Sales 552.5 5.7% cannibalisation and lower activity attributable to regional and
Slide 10: Sports Retailing
Sports Retailing • LFL sales growth driven by increased traffic and 2013/14 change on For personal use only average transaction value. LFL sales pcp performance has been weaker in second half in $m both Rebel and Amart Sports. Sales 734.0 4.3% • Total sales growth supported by thirteen new stores op
Slide 11: Group & Unallocated
Group & Unallocated 2013/14 change on For personal use only • Group and Unallocated includes Group public $m pcp company costs, smaller business investments & new initiatives and Group costs not allocated to Sales 7.4 48% segments • Multi-channel development & unutilised storage include DC space not
Slide 12: Group Cash Flow
Group Cash Flow Jun 14 Jun 13 • For personal use only Operating cash flow performance has been sound. $m $m • Elevated inventory levels to manage systems Operating cash flow 186.9 250.0 implementation risk in Sports Retailing have been carried forward from December due to (pre store set up investmen
Slide 13: Group Balance Sheet
Group Balance Sheet Jun 14 Jun 13 For personal use only • SCA average inventory per store is 2% higher than pcp due to increased use of $m $m trade partner funded inventory. • Leisure average inventory per store is 7% lower than pcp achieved from inventory planning improvements including JDA Invento
Slide 14: Returns & Capital Ratios
For personal use only Returns & Capital Ratios • EPS increase is aligned with improved profit performance 2014 2013 • The Group debt facility has been modified. EPS – reported 55.1c 52.3c The total facility limit increased to $600m, tenor increased. All ratios are well within covenant levels Fixed c
Slide 15: 2014/2015 Outlook
For personal use only 2014/2015 Outlook 15
Slide 16: Looking Forward
For personal use only Looking Forward Auto Retailing • LFL sales growth in the first 6 weeks of 14/15 circa 3% • SCA store development: 6 new stores, 50 refurbishments, extensions and relocations (including 2 super stores) • Full year EBITDA margin is expected to be in line with last year Leisure Re
Slide 17: Group Strategy
For personal use only Group Strategy 17
Slide 18: Our Vision, Mission and Goals
Our Vision INSPIRING YOU TO LIVE YOUR PASSION For personal use only Our Mission TO PROVIDE SOLUTIONS AND ENGAGING EXPERIENCES THAT ENABLE OUR CUSTOMERS TO MAKE THE MOST OF THEIR LEISURE TIME To achieve the To achieve higher To provide returns To be one of the 5 highest Team customer Our Goals to our
Slide 19: How are we going to win?
How are we going to win? Understanding our Developing a clear understanding of our customer’s leisure passions, their search patterns, their buying behaviour and their opinion of our offer For personal use only Customers Customer relationship management increasingly driving our store and website des
Slide 20: Group Strategic Initiatives
Group Strategic Initiatives For personal use only DIVISIONAL INITIATIVES Customer Relationship Mgt Multi Channel Development Category Management Private Brand Management CUSTOMER SUPPLY CHAIN ANALYTICS MANAGEMENT Supply Chain Management Customer Analytics Inventory Management CULTURE AND FUTURE TEAM
Slide 21: Auto Retailing – Key Strategic Initiatives
Auto Retailing – Key Strategic Initiatives (5 year goal) For personal use only NETWORK LFL SALES EBIT PRE TAX EXPANSION GROWTH MARGIN ROC (325 STORES) (> 3% PA) (12%) (> 40%) Understanding our • SCA club + membership now at 1 million – target 1.5 million plus Customers • Understanding and meeting ne
Slide 22: Leisure Retailing – Key Strategic Initiatives
Leisure Retailing – Key Strategic Initiatives (5 year goal) For personal use only NETWORK LFL SALES EBIT PRE TAX EXPANSION GROWTH MARGIN ROC (225 STORES) (> 3% PA) (11%) (> 30%) Understanding our • BCF / Rays club membership now at 2.5 million Customers • Developing Rays Outdoors/FCO offer to meet t
Slide 23: Sports Retailing – Key Strategic Initiatives
Sports Retailing – Key Strategic Initiatives (5 year goal) For personal use only NETWORK LFL SALES EBIT PRE TAX EXPANSION GROWTH MARGIN ROC (250 STORES) (> 4% PA) (11%) (> 21%) Understanding our • Rebel / Amart club membership now at 2.1 million Customers • Relaunch of loyalty programs • Use of cust
Slide 24: Commercial
Commercial (5 year goal) For personal use only B2B INTERFACE SALES TARGET PRE TAX $50M + ROC (> 21%) Wholesale • Opportunities across all Group categories • Centred around Group’s private label products Insurance • $15m opportunity • Providing gift cards or replacement products to major insurers to
Slide 25: Customer Analytics
Customer Analytics (5 year goal) For personal use only • Effective loyalty programs across all businesses underpinned by an efficient CRM • Increased understanding of customers at a micro level • Increased use of targeted marketing and promotion leading to a reduction in mass media advertising as a
Slide 26: Supply Chain and Inventory Management
Supply Chain and Inventory Management (5 year goal) • Support the brands inventory optimisation initiatives For personal use only • Clarity of supply chain cost drivers and ability to select appropriate supply method • Efficient flow of inventory to reduce logistics costs as a % of sales by 1% • Enh
Slide 27: Supply Chain and Inventory Management
Supply Chain and Inventory Management FY14 FY15 FY16 FY17 For personal use only Logistics Investment Sydney DC Brisbane DC New network Network developed developed implemented optimised Systems Development Sports SAP Sports SAP implemented optimised WMS developed WMS rollout Trade Partner Leisure DTS
Slide 28: Future Organisation
Future Organisation (5 year goal) • Reduce cost of doing business by $40 million (including supply chain and inventory carrying costs that For personal use only result from the supply chain program) • Effective change management • More flexible and efficient reporting and analytics • Development of
Slide 29: Culture and Team
Culture and Team • Sustain team member retention at 75% (5 year goal) For personal use only • 70% of management positions filled internally • Team Member engagement above 70% • Time to fill retail vacancies below 4 weeks • LTIFR – 35% improvement over 3 years • 40% of Board and senior management pos