Super Retail Group Limited · ASX:SUL
Super Retail — Super Cheap Auto Group — FY2005 Earnings Presentation
22 slides from Super Retail's earnings presentation, Aug 25, 2005
Slide 1: 2004-05 Results Presentation
2004-05 Results Presentation : ener ‘Bob Thom = Managing Director 25 August 2005 Peter Birtles — Chief Financial Officer
Slide 2: Performance Highlights
i i A Performance Highlights Key Business Highlights Financial Results — Future Plans — Outlook for 05-06
Slide 3: Sales up 22.8% on LY
e Sales up 22.8% on LY © GP$ up 24.7% on LY e EBITA beats prospectus by” 6.2% -@ NPAT (pre specific items) up “31.1% on LY & 12.3% ahead of -prospectus. e Dividends up 12. 1% 0 on. > prospectus ; 03/04 Ye Prospectus. fo Actual Increase | — Increase Store. Numbers 183 17.5% 205 4.9% (SCA only) - : Sa
Slide 4: New SCA stores opened in the 04-05 year
e 28 new SCA stores - opened in the 04-05 year Australia - 16 SCA stores - “opened ene . ‘New Zealand —12 SCA -. stores opened ; 250 215 200 ; : 150 e -New Zealand - opened 31 stores in less than 19 months * 100 Store Numbers : e 4 existing CampMart stores. Aust 0°. NZ © BOF Total 03/04 04/05
Slide 5: Total Sales growth
Total Sales growth _ 22.8% ws - Super Cheap Auto like for ~~ like growth — 43.7% - 500 across Australian stores eee Ty “BCF (CampMart) only traded for. 5 months. 470.1 417.6 47.4 “NZ ~-BCF .... Total 03/04 04/05
Slide 6: Supply Chain costs in line with forecasts
Supply Chain costs i in line with forecasts ; Lawnton DC extension ‘completed Super Cheap Auto ~ increased capacity for ‘05-’06 ~~ Distribution. Network 3PL facilities used to manage ; Ss se =: peak demand Investigation underway into new China.consolidation processes “Review underway on the. -_ plac
Slide 7: Demand planning and forecasting system implementation commenced
Demand planning and forecasting system implementation commenced Improved Disaster Recovery Planning initiatives being implemented SAP effectively manages new. businesses. i. e. -BCF, ‘SCA NZ, ‘and - ~ CampMart acquisitions - Future SAP enhancements planned to meet business requirements : ‘Data Wareh
Slide 8: The SCA Culture continues to set us apart
The SCA Culture continues to set us apart Team member numbers pass 3500 Appointment of Pam Pugsiey.as General .. Manager Retail Operations Appointment of David Ajala as GM of: : Merchandising Appointment of Steve Doyle z as GM of ~BCF SCA Team Members
Slide 9: Customer Research completed for Australian and NZ market
Customer Research completed for.- Australian and NZ market 48% Unprompted brand awareness in New Zealand Increased advertising expenditure due to _ tougher retail trading. -GP. margin improvement through product | mix management ~ ; New 2 car V8 SCA Race Team sponsorship for 2005 season : Increased
Slide 10: veswunsr SF ee 1300
veswunsr SF ee 1300 136 122 REGIONAL COUNCIL stipercheapautoTO00.com. au
Slide 11: Effective cost control under tougher second half trading conditions
Effective cost control under tougher second half trading conditions Ability to manage and adjust expenditure to meet trading demands e.g. - increase in advertising expenditure while maintaining overall costs and ; GP. margin : . Communications and Head. Office wage costs created savings ; Supply | C
Slide 12: CampMart business acquired in Jan 05
ee CampMart business acquired i in Jan 05. oe New BCF Management Structure created in 1 May 05. The Team lead | by “Steve Doyle. : ° ‘Launch of BCF concept in July 05 to market and Vendors. - enthusiastically received — ; _-@. Announcement of expansion plans to 14 stores by June 06 (10 new stores) -
Slide 13: Basis for Reporting
_ Basis for Reporting — e -Super Cheap Auto Group Limited was incorporated on 8 April 2004 and -.. acquired Super Cheap Auto Pty Ltd on.23 April 2004 - e The Annual Report and Appendix 4E of Super.Cheap Auto Group Limited “include the trading results of the 2 Group from 23 April. 2004 only — not for
Slide 14: Non recurring specific items
ific ng Spec. in non recurri inn | ys io & oO QO: ® xs) 3. < oO oO i) oD g 3 3 od & ° & S & g & £ 2 S nm eo Dd s 3 S £ ad io) ce G & G < oe o a ok nH £. (3) a4 {normalised} Gross Profi
Slide 15: Pre Tax Impact
Pre Tax Impact Inventory valuation methodology Share issues costs Total » Inventory valuation methodology: ~ -M- Benefit associated with a change to the methodology for the calculation of inventory valuation. Supply chain costs incurred during the stock holding period are.now capitalised — these wer
Slide 16: Cash flow versus Prospectus
Prospectus $m EBITDA oe 39.8 Tax Paid LD (6.3) Working capital (6.8) Payments of $21.8m on 1 July to vendors and landlords not reflected in forecasts Other Assets Cash flows from operating activities Cash flows from Includes gross investment of $8m in investing activities || acquisition of CampMart.
Slide 17: Net debt
EA H mn Prospectus $m Closing net cash 5.0 Closing gross debt Closing net debt Pre IPO transactions : 5 : Reciassified as debt Pro-forma net debt 1 July payments not included in Prospectus cash flow forecasts 1 July Payments | Vendors - $19.3m; Rents - $2.5 Underlying net debt in line with prospectu
Slide 18: Working capital and capital employed
Inventory Trade Payables Net Inventory investment Receivables Other Creditors Working Capital Fixed Assets intangibies Other Assets / Liabilities Capital Employed Pro-forma net Debt Net Assets 2005 includes valuation adjustment of $4.7m. Excluding this adjustment average inventory per store of $551k
Slide 19: Earnings per Share
Earnings per Share ~ pre amortisation and specifics ~ post amortisation and specifics Fixed Charge Cover Pro-forma Net Debt : Capital ~ underlying ~ adjusted Pro-forma Return on Capital ~ underlying ~ adjusted Prospectus forecast — 17.2¢ Prospectus forecast — 17.2c EBITDAR /| (Interest + Rent) 1 Jul
Slide 20: AIFRS impacts
Ha AASB 2 Share Based Payments AASB 3 Business Combinations AASB 117 Leases Cost of Executive Option Plan Reverse of Goodwill amortisation Straight ing of fixed rate increases Provision for refunds AASB 118 Revenue AASB 136 Impairment of Assets AASB 137 Provisions and Contingencies AASB 112 Income T
Slide 21: Our primary goals for 05-06
Our PRIMARY goal waynes - 300 Super Cheap Auto stores across Australia and NZ : ; _ : 60 BCF stores across Australia and New Zealand ‘Plan for 20-25 SCA stores and 10 new BCF i in ‘05-06 New Zealand SCA expansion to continue based on results, impact o' on- competitors and market research SCA to plac
Slide 22: Outlook for 05-06
LFL growth in the range achieved for the 04-05 year given the competitive position and general retail environment Increased advertising media weight in second quarter to align with motorsport and “SCA Bathurst 1000” initiatives. ; o First quarter LFL sales flat- = ‘Stronger second quarter sales expe
Super Cheap Auto Group — FY2005 Earnings Presentation on 6ix