Super Retail Group Limited · ASX:SUL
Super Retail — H1 FY2019 Earnings Presentation
25 slides from Super Retail's earnings presentation, Feb 14, 2019
Slide 1: Results for the 26 weeks to 29 December 2018
Results for the 26 weeks to 29th December 2018 Peter Birtles Group Managing Director and Chief Executive Officer David Burns Chief Financial Officer 14 February 2019
Slide 2: Group Highlights
Group Highlights TRADING PERFORMANCE Total Group sales of $1.4 billion up by 6.0% on pcp Total Segment EBITDA of $166.2 million up by 11.3% on pcp Normalised NPAT of $81.6 million up by 8.9% on pcp Profit attributable to owners of $71.7 million down by 0.7% on pcp Operating cash flow of $235.4 milli
Slide 3: Group Highlights: Our Scorecard
Group Highlights : Our Scorecard Strong performance in team member and customer metrics • Top quartile team engagement at 70% Healthy, passionate • Team Retention at 73.8% significantly higher than industry average and high • LTIFR at 6.4 over 50% improvement over last 3 years performing team • NPS
Slide 4: Content
Content Group Highlights FY19 1st Half Performance FY19 2nd Half Trading Update Appendices - Performance Trends - Segment Notes
Slide 5: Group Results
Group Results • Total Sales increased 6.0% on pcp; excluding 2018/19 Change on contribution from Macpac & Rays, sales $m PCP increased 2.8% • Group segment EBITDA includes a $9.5m Total Sales 1,403.2 6.0% contribution from Macpac. EBITDA has increased by 5.0% excluding Macpac Total Segment EBITDA 16
Slide 6: Segment Results
Segment Results 2018/19 2017/18 Sales Segment EBIT Sales Segment EBIT $m $m $m $m Auto Segment 530.8 57.1 516.7 55.7 Outdoor Segment 348.5 22.9 299.1 16.4 Sports Segment 523.9 54.4 503.8 51.7 Group & Unallocated - (9.9) 4.1 (10.2) Total Segment Result 1,403.2 124.5 1,323.7 113.6 • Segment Results ar
Slide 7: Auto Retailing
Auto Retailing Key Statistics Snapshot (latest available data) Trend First Half LFL Sales Growth (%) Active club members 1.51m 5.2 5 3.9 Club members NPS 60% 3.7 3.5 2.3 2.1 Club sales % total sales 38% 2.5 1.8 Store numbers 323 0 Online sales % total sales 6% FY13 FY14 FY15 FY16 FY17 FY18 FY19 Clic
Slide 8: Auto Retailing
Auto Retailing • Total sales growth of 2.7% driven by ATV 2018/19 Change on • Second quarter promotional activity balancing $m PCP gross profit and like for like sales growth Sales 530.8 2.7% • The key categories of Accessories and Maintenance delivered strong growth • Sales growth was achieved in t
Slide 9: Outdoor Retailing
Outdoor Retailing • Outdoor Retailing includes BCF, Rays and 2018/19 Change on Mapac $m PCP • Following the successful trial of a large format Sales 348.5 16.5% outdoor adventure store under the Rays brand, the Group acquired Macpac to build a market leading outdoor adventure retail business LFL Sal
Slide 10: Outdoor Retailing - BCF
Outdoor Retailing - BCF Key Statistics Snapshot (latest available data) Trend First Half LFL Sales Growth (%) Active club members 1.40m 3.6 4.0 2.5 3.1 2.1 Club members NPS 58% 1.6 2.0 -0.6 -4.0 Club sales % total sales 79% 0.0 Store numbers 136 FY13 FY14 FY15 FY16 FY17 FY18 FY19 -2.0 Online sales %
Slide 11: Outdoor Retailing - BCF
Outdoor Retailing - BCF • Sales growth of 2.2% was driven by like for like 2018/19 Change on growth which has improved since October $m PCP • Like for like sales growth was driven by an Sales 281.4 2.2% increase in average transaction value. Increase reflects sales mix shift to camping, from boating
Slide 12: Outdoor Retailing - Macpac and Rays
Outdoor Retailing - Macpac and Rays Macpac • Macpac was effectively acquired on the 31 2018/19 Change on March 2018 and is not in the comparative $Am PCP period. The business has traded above Sales expectations for sales and contribution - Macpac (1) 51.4 - • Strong LFL sales growth driven by increa
Slide 13: Sports Retailing
Sports Retailing Key Statistics Snapshot (latest available data) Trend First Half LFL Sales Growth (%) Active club members 2.55m 8.3 Club members NPS 57% 8.0 6.1 6.1 6.0 5.5 6.0 Club sales % total sales 62% 3.3 4.0 2.0 1.1 Store numbers 161 0.0 Online sales % total sales 11% FY13 FY14 FY15 FY16 FY17
Slide 14: Sports Retailing
Sports Retailing • Sales growth for the period was supported by 2018/19 Change on both increased transaction growth and $m PCP increase in units per transaction Sales 523.9 4.0% • Apparel, footwear and fitness delivered strong growth offset by decline in equipment, (consistent with the Amart Sports
Slide 15: Group & Unallocated
Group & Unallocated 2018/19 $m $m • Group and Unallocated includes: Sales 0 (4.1) • Corporate costs not allocated to segments • Commercial operations • Omni retail development EBIT (9.9) 0.3 • Un-utilised distribution centre costs remain consistent with no changes to the DC network compared to pcp C
Slide 16: Group Cash Flow
Group Cash Flow • Strong operating cash flow (pre store set up 2018/19 2017/18 investment) driven by higher profit, $69.2m $m $m above Segment EBITDA Operating cash flow • Effective management of net working capital 248.3 303.8 (pre store set up investment) has fully funded increased inventory level
Slide 17: Group Balance Sheet
Group Balance Sheet Dec 18 Jun 18 $m $m • Inventory has increased due to growth in Inventory private brand volumes, focus on lifting in-stock availability and the lower Australian Dollar - Auto Retailing 206.7 204.5 • SCA inventory has increased due to new - Outdoor Retailing 200.6 160.2 stores - Sp
Slide 18: Returns & Capital Ratios
Returns & Capital Ratios 2018/19 2017/18 • Normalised EPS of 41.3c an increase of 8.7% Normalised EPS 41.3c 38.0c on pcp • Normalised Fixed charge cover ratio, Basic EPS 36.3c 36.6c calculated after adjusting for restructuring costs is near target range of 2.2 times Reported Annualised Post Tax 15.8
Slide 19: Content
Content Group Highlights FY19 1st Half Performance FY19 2nd Half Trading Update Appendices - Performance Trends - Segment Notes
Slide 20: FY19 2nd Half Trading Update
FY19 2nd Half Trading Update Auto Retailing • LFL sales growth in the first 6 weeks of second half circa 4%, year to date LFL now circa 2.2% • SCA second half store development: plan to open 6 new stores, close 2 stores and undertake 11 relocations and extensions Outdoor Retailing • BCF LFL sales gr
Slide 21: Content
Content Group Highlights FY19 1st Half Performance FY19 2nd Half Trading Update Appendices - Performance Trends - Segment Notes
Slide 22: Performance Trends
Performance Trends Reported Sales ($m) Reported Total Segment EBIT ($m) 1,403 1,296 1,324 1,159 1,216 1,037 1,096 124.5 115.2 113.6 759 99.8 101.1 94.1 93.1 562 464 61.6 413 41.4 23.6 28.3 Reported EPS (c) Reported Post Tax ROC (%) 37.7 36.6 36.3 30.9 31.3 19.8 19.4 22.0 22.8 17.1 15.5 14.9 14.9 15.
Slide 23: Performance Trends
Performance Trends Team Team Engagement Safety Team Retention Lost Time Injury Frequency Rate 71% 71% 70% 70% 75% 75% 74% 74% 73% 68% 13.2 8.8 6.3 6.1 6.4 Jun 15 Jun 16 Jun 17 Jun 18 Dec 18 Jun 15 Jun 16 Jun 17 Jun 18 Dec 18 Jun 15 Jun 16 Jun 17 Jun 18 Dec-18 Customer Average Net Active Club Custome
Slide 24: Segment Note 2018/19
Segment Note 2018/19 Total Inter-segment continuing eliminations/ For the period ended 29 December 2018 Auto Outdoor Sports operations unallocated Consolidated $m $m $m $m $m $m Segment Revenue and Other Income External segment revenue(1) 530.8 348.5 523.9 1,403.2 - 1,403.2 Inter segment sales - - -
Slide 25: Segment Note 2017/18
Segment Note 2017/18 Total Inter-segment continuing eliminations/ For the period ended 30 December 2017 Auto Outdoor Sports operations unallocated Consolidated $m $m $m $m $m $m Segment Revenue and Other Income External segment revenue(1) 516.7 299.1 503.8 1,319.6 4.8 1,324.4 Inter segment sales - -