Slide 1: FY22 Full Year Results Presentation
FY22 FULL YEAR RESULTS PRESENTATION Authorised for release by the Super Retail Group Board 17 August 2022 ABN: 81 108 676 204
Slide 2: Important information – impact of 53-week trading period on FY22
Important information – impact of 53-week trading period on FY22 FY22 comprised a 53-week trading period as compared to 52 weeks for FY21. When reviewing the financial results in this presentation, regard should be had to the following: FY22 and FY21 trading periods Presentation of FY22 financial in
Slide 3: Contents
CONTENTS • Group highlights - Financial - Customer and brand - Store network - Digital and omni-channel • FY22 financial results • Corporate strategy • Sustainability and team • Outlook and trading update • Appendix CommBank Matildas goalkeeper Lydia Williams - rebel has been a proud partner of the
Slide 4: Executive summary
Executive summary Super Retail Group delivers another year of record sales • Sales of $3.55b – sales grew by 2.8% (or 1.0% adjusted for 53rd week)1 • Strong second half performance – 5.0% like-for-like sales growth in H2 • Successful omni-retail execution key to Group result - Digital sales underpin
Slide 5: Group highlights
Group highlights SUPER RETAIL GROUP 5
Slide 6: Financial highlights
Financial highlights $3,551m $396.6m $349.6m SALES NORMALISED EBIT NORMALISED PBT FULLY FRANKED DIVIDENDS $241.2m $244.1m TOTALLING STATUTORY NPAT NORMALISED NPAT 70.0 CENTS SUPER RETAIL GROUP 6
Slide 7: Record sales of $3.55 billion
Record sales of $3.55 billion The Group has delivered another year of record sales. Like-for-like sales rebounded in the second half. GROUP SALES GROWTH SALES ($M) BY BRAND SALES ADJUSTED SALES LFL SALES H2 LFL SALES GROWTH GROWTH1 GROWTH GROWTH (53 WEEKS VS (52 WEEKS VS (52 WEEKS VS (26 WEEKS VS 52
Slide 8: Group gross margin 46.8 per cent
Group gross margin 46.8 per cent Group gross margin above pre COVID-19 levels reflects promotional discipline and strategic pricing • The Group has been able to maintain part of the gross margin uplift GROUP GROSS MARGIN delivered in FY21 as a result of business improvements related to: - improved s
Slide 9: Cost of doing business (CODB) 35.7 per cent
Cost of doing business (CODB) 35.7 per cent CODB is normalising to pre COVID-19 levels • CODB for FY22 has increased to 35.7%, but remains below historic (pre COVID-19) levels • FY22 CODB includes increased investment in: GROUP CODB AS A % OF SALES1 - Store development program ($5 million) to drive
Slide 10: Customer and brand highlights
Customer and brand highlights ACTIVE CLUB MEMBERS 1, 2 AVERAGE CLUB CLUB MEMBERS UP MEMBER NPS REPRESENT INCREASED TO 14% 70% TO 64.6 OF TOTAL SALES 9.2m 65 62 66 69 NET NET NET NET PROMOTER PROMOTER PROMOTER PROMOTER SCORE SCORE SCORE SCORE (UP 1) (UP 3) (UP 3) (UP 1) 59% 69% 87% 72% CLUB CLUB CLUB
Slide 11: Investment in loyalty and personalisation
Investment in loyalty and personalisation Significant investment on customer engagement via a loyalty platform and one-to-one communication LOYALTY: The loyalty solution will deliver a set of defined engagement capabilities valued by the customers of each brand STAGE DETAILED DESIGN BUILDING THE ENG
Slide 12: Store network highlights
Store network highlights OPENED TARGETING UP TO 21 716 30 STORES ACROSS NEW STORES AUSTRALIA & STORE OPENINGS IN FY22 NEW ZEALAND IN FY231 34 STORES 11 REGIONAL SMALL FORMAT 95% STORES INCREASE IN CONVERTED TO rCX STORES PERFORMING NEXT GEN NOW OPEN MACPAC SALES ABOVE IN REBEL AND FORMAT PLAN BCF NE
Slide 13: Digital and omni-channel highlights
Digital and omni-channel highlights GROUP ONLINE SALES UP 73% CLICK & COLLECT GREW TO 44% TO INCREASE IN CLICK & COLLECT SALES TO 55% $601m1 $332m1 OF ONLINE SALES ONLINE SALES REPRESENTED 17% 92% 12% OF CUSTOMERS ARE REDUCTION IN OF TOTAL OMNI OR IN-STORE SPLIT ORDERS 1,2 GROUP SALES SHOPPERS SUPER
Slide 14: FY22 financial results
FY22 financial results SUPER RETAIL GROUP 14
Slide 15: Group results
Group results Change Adjusted change1 $m FY22 FY21 (53 weeks vs 52 (52 weeks vs 52 weeks) weeks) Total sales2 3,550.9 3,453.1 2.8% 1.0% Total segment EBITDA 701.8 776.2 (9.6%) (10.5%) Segment D&A (305.2) (299.4) 1.9% 1.4% Total segment EBIT 396.6 476.8 (16.8%) (18.0%) Net finance costs (47.0) (41.0)
Slide 16: Segment results
Segment results FY22 FY21 $m (53 weeks) (52 weeks) Segment Sales PBT Sales PBT Supercheap Auto 1,339.8 176.1 1,308.8 192.3 rebel 1,212.0 141.0 1,197.0 166.7 BCF 829.7 59.6 797.7 96.4 Macpac 176.8 18.6 153.4 16.9 Group and (7.4) (45.7) (3.8) (36.5) Unallocated Total 3,550.9 349.6 3,453.1 435.8 SUPER
Slide 17: Supercheap Auto: total sales increased by 2.4% to $1.34 billion
• Total sales increased by 2.4% to $1.34 billion (or 0.5% adjusting for 53rd week) Adjusted FY22 FY21 Change change1 • Record sales performance supported by sales uplift from conversion of existing stores to $m (53 weeks) (52 weeks) (53 weeks vs (52 weeks vs latest Generation 4 format 52 weeks) 52 w
Slide 18: Supercheap Auto - strengthening our private and strategic brand portfolio
Supercheap Auto - strengthening our private and strategic brand portfolio Private and strategic brands represent 38 per cent of Supercheap Auto sales SUPER RETAIL GROUP Logos show a selection of Supercheap Auto’s private label brands and strategic brand partners 18
Slide 19: rebel: total sales increased by 1.3% to $1.21 billion
• Total sales increased by 1.3% to $1.21 billion (0.6% decline adjusted for 53rd week) Adjusted FY22 FY21 Change change1 • Sales result supported by an increased contribution from new rCX format stores and $m (53 weeks) (52 weeks) (53 weeks vs (52 weeks vs strong performance in key categories includ
Slide 20: rebel - partnering with the world's leading sports brands
rebel - partnering with the world’s leading sports brands rebel continues to grow its relationships with key global sports brands SUPER RETAIL GROUP Logos show a selection of rebel’s sporting brand partners 20
Slide 21: rebel – partnering with the world's leading sports brands
rebel – partnering with the world’s leading sports brands Global sports brands are co-investing in the rebel rCX store format • Global sports brands are expanding their direct to customer offering and becoming more selective about their retail partners • There is an opportunity for rebel to gain mar
Slide 22: BCF: total sales increased by 4.0% to $829.7m
Adjusted • Total sales increased by 4.0% to $829.7m (or 2.7% adjusted for 53rd week) driven by FY22 FY21 Change change1 like-for-like sales growth and contribution from new stores $m (53 weeks) (52 weeks) (53 weeks vs (52 weeks vs • Like-for-like sales for the year grew by 1.1% following a strong se
Slide 23: BCF – strengthening our private and strategic brand portfolio
BCF – strengthening our private and strategic brand portfolio Private and strategic brands represent 45 per cent of BCF sales SUPER RETAIL GROUP Logos show a selection of BCF’s private label brands as well as select strategic brand partners 23
Slide 24: Macpac: total sales increased by 15.3% to $176.8m
• Total sales increased by 15.3% to $176.8m (or 11.4% adjusted for 53rd week) driven by record Adjusted June winter sales FY22 FY21 Change change1 $m (53 weeks) (52 weeks) (53 weeks vs (52 weeks vs • Like-for-like sales for the year grew by 4.4% overall and by 8.5% in the second half2 52 weeks) 52 w
Slide 25: Inspiring a life outdoors since 1973 – whatever your adventure
An iconic brand in Growing our scale and brand New Zealand awareness in Australia Inspiring a life outdoors since 1973 – whatever your adventure Designed, tested and proven in the ultimate outdoor test lab – New Zealand. Our products are made by adventurers for adventurers. FY22 brand awareness in N
Slide 26: Group balance sheet
Group balance sheet • Group inventory is higher than pcp but $109.6 million lower than the 2 Jul 22 26 Jun 21 Change inventory balance at the end of the first half $m • Inventory position across all brands reflects the Group’s strategic Inventory decision to temporarily build stock positions to meet
Slide 27: Group and unallocated
Group and unallocated • Group and unallocated costs of $38.5 million were $7.8 million higher than pcp $m FY22 FY21 Change • Corporate costs were $0.1 million higher than pcp reflecting higher insurance costs EBIT (38.5) (30.7) (7.8) • The Group wrote down the value of its investment in the Autoguru
Slide 28: Returns and capital ratios
Returns and capital ratios • Statutory EPS of 106.8 cents and normalised EPS of 108.1 cents FY22 FY21 Change • The Board has resolved to pay a fully franked final dividend of 43 cents per share. This brings the full year dividend to 70 cents per Normalised EPS1 108.1c 136.0c (20.5%) share, represent
Slide 29: Group cash flow
Group cash flow • Group operating cashflow adjusted for the 53rd week was $389.8 FY22 FY21 $m Change million (53 weeks) (52 weeks) • FY22 was a 53-week year and included an additional payment cycle Adjusted operating cash flow1 389.8 for landlords, trade partners and team payroll. The net impact of
Slide 30: Corporate strategy
Corporate strategy SUPER RETAIL GROUP 30
Slide 31: Our strategy
Our strategy STRATEGIC DRIVERS 1 GROW THE FOUR CORE BRANDS 2 GROWING ANNUAL LEVERAGE CLOSENESS TO CUSTOMER VALUE OUR CUSTOMER PRIMARY VALUE LEVERS 3 CONNECTED OMNI-RETAIL SUPPLY CHAIN BEING AN EFFICIENT OMNI-RETAILER ENSURING ORGANIC GROWTH AND CAPITAL DISCIPLINE 4 SIMPLIFY THE BUSINESS SUPER RETAIL
Slide 32: Delivering on our strategy in FY22
Delivering on our strategy in FY22 GROW THE FOUR LEVERAGE CLOSENESS CONNECTED OMNI- SIMPLIFY THE EXCEL IN OMNI- CORE BRANDS TO OUR CUSTOMER RETAIL SUPPLY CHAIN BUSINESS RETAIL EXECUTION Current Focus Areas • 5-year Brand strategies • Active customer growth remains • Continuing to maintain • Engageme
Slide 33: Sustainability and team
Sustainability and team SUPER RETAIL GROUP 33
Slide 34: Our 2030 Sustainability Framework
Goal 2030 Targets¹ Our 2030 Sustainability 1. Invest in the health, safety and wellbeing of our team • • Implementing a holistic wellbeing program – participation rates Health & Safety TRIFR, 1st quartile performer in retail Framework 2. 3. Create an inclusive and diverse team Support our team with
Slide 35: Sustainability and team – achievements and key performance measures
Sustainability and team – achievements and key performance measures PEOPLE PLANET 10.7 >2,500 82 and 80 58% 1,101,200L 91,167 Engagement survey Recycling rate for Recycled litres of oil Recycled car batteries Total Recordable Team members waste material in through Supercheap through Supercheap Injur
Slide 36: FY22 highlights
FY22 highlights Monash University recognition: one of only 12 Awarded the WGEA’s Employer of Choice A member of the S&P Global Sustainability ASX 300 companies awarded a B grade for for Gender Equality citation for the Yearbook 2022 Modern Slavery Statement, putting us in the top second consecutive
Slide 37: Outlook and trading update
Outlook and trading update SUPER RETAIL GROUP 37
Slide 38: Resilience through the economic cycle
Resilience through the economic cycle Super Retail Group’s defensive characteristics mean it is well positioned for a more turbulent trading environment Prior to FY22, Supercheap Auto and rebel The Group has low exposure to big ticket Supercheap Auto NZ continues to perform each delivered at least 1
Slide 39: FY23 trading update
FY23 trading update • Group like-for-like sales growth as at week 6 is as follows: Like-for-like sales growth FY23 vs FY22 Supercheap Auto 15% rebel 13% BCF 17% Macpac 42% Group 17% • The Group has made a positive start to FY23 with all four core brands delivering strong like-for-like sales growth.
Slide 40: FY23 trading update continued
FY23 trading update continued • While current trading remains strong, the Group expects rising interest rates and higher costs of living will start to impact consumer spending in the second half and that elevated levels of demand which arose during the pandemic will begin to subside. • To prepare fo
Slide 41: Appendix
Appendix SUPER RETAIL GROUP 41
Slide 42: Performance trends
Performance trends Reported Sales ($m) Reported Total Segment PBT ($m) 3,543 3,551 436 2,825 350 2,570 2,710 2,422 2,466 2,112 2,239 2,020 191 202 207 210 147 162 149 156 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Reported EPS (c) Normalised R
Slide 43: Group results (pre AASB 16 Leases)
Group results (pre AASB 16 Leases) Change) Adjusted change2 FY22 FY21 $m (53 weeks vs 52 (52 weeks vs 52 Pre AASB 161 Pre AASB 161 weeks) weeks) Total sales3 3,550.9 3,453.1 2.8% 1.0% Total segment EBITDA 464.3 557.4 (16.7%) (18.0%) Segment D&A (99.3) (114.1) (13.0%) (14.5%) Total segment EBIT 365.0
Slide 44: Segment note (post AASB 16 Leases) FY22
Segment note (post AASB 16 Leases) FY22 SUPER RETAIL GROUP 44
Slide 45: Segment note (post AASB 16 Leases) FY21
Segment note (post AASB 16 Leases) FY21 SUPER RETAIL GROUP 45
Slide 46: Important notice and disclaimer
Important notice and disclaimer This presentation has been prepared by Super Retail Group Limited ABN 81 108 676 204 (“SRG”) and provides summary information about the activities of SRG and its subsidiaries current as at the date of this presentation. The information in this presentation is of a gen