Slide 1: Welcome - SPAR Group Results
WELCOME SPAR GROUP RESULTS
Slide 2: Agenda; SPAR International
Agenda • Financial overview • Retail performance • Distribution update • Looking forward • Video • Questions 2 SPAR International • Retail turnover € 27.2bn • Stores 13 600 • Countries 33 • Continents 5 • People 252 000 3
Slide 3: Financial Overview
Financial Overview R million 2008 2007 % Change Turnover 26 742 21 704 23.2 Operating profit 972 775 25.5 PAT 682 523 30.3 HEPS (cents) 405.7 312.3 29.9 Return on equity 52.5 52.3 Dividend 255.0 185.0 37.8 (cents) 4 Financial Overview Turnover (Rm) % 2008 2007 Change Spar 24 270 19 789 22.6 Build it
Slide 4: Financial Overview: Turnover growth and margins
Financial Overview Turnover growth reconciliation % Spar retail growth - organic 15.8 - new stores 4.9 20.7 TOPS / Build it “excess” growth 1.7 Improved loyalty / new suppliers 2.7 25.1 Dropshipment adjustment (1.9) 23.2 6 Financial Overview Margins (as % turnover) 2008 2007 Gross margin 8.1 8.2 Oth
Slide 5: Cash flow; Retail Performance
Cash flow (Rm) Cash flow from trading 1 088 Working capital changes (870) 218 Capex - facilities (248) - vehicles/equipment (149) - IT (29) Tax (268) Dividends (355) Loans/shares/other 124 Net cash outflow (707) 8 Retail Performance Retail Stores 2008 2007 Change Superspar 218 172 +46 Spar 457 477 -
Slide 6: Distribution Update
SPAR Sales (Rbn) & Market Share (%) 27.6% 26% 24.6% 20% 15% 10 Distribution Update South Rand 58000 m² 229 SPAR 83 TOPS 50 Build it 11
Slide 7: Distribution Update: North Rand, Kwazulu Natal
Distribution Update North Rand 32000 m² 182 SPAR 73 TOPS 44 Build it 12 Distribution Update Kwazulu Natal 40000 m² 157 SPAR 75 TOPS 67 Build it 13
Slide 8: Distribution Update: Western Cape, Eastern Cape
Distribution Update Western Cape 34000 m² 129 SPAR 56 TOPS 19 Build it 14 Distribution Update Eastern Cape 21000 m² 93 SPAR 52 TOPS 36 Build it 15
Slide 9: Distribution Update: Lowveld; Looking forward
Distribution Update Lowveld 17000 m² 35 SPAR 13 TOPS 29 Build it 16 Looking forward … • Trading environment • Key focus areas 17
Slide 10: Trading Environment; Key Focus Areas
Trading Environment • Business confidence • Economic fundamentals - interest rates peaked - pressure on inflation • Emerging market power … outlook positive for cash retail 18 Key Focus Areas Retail • Growth - new stores * SPAR * TOPS / BUILD IT 19
Slide 11: Key Focus Areas
Key Focus Areas… Retail Stores Change 2008 in 2009 Superspar 218 +12 Spar 457 +16 Kwikspar 150 +2 825 +30 Sq metres 000’s 834 +5% Remodels 144 145 Tops 287 +40 Build it 243 +25 20 Key Focus Areas Retail • Growth - new stores * SPAR * TOPS / BUILD IT - existing stores * revamps * extending services •
Slide 12: Distribution
Distribution • Executive management • Warehouse facilities • Supply chain efficiency • Transformation 22