Super Retail Group Limited · ASX:SUL
Super Retail — FY2021 Earnings Presentation
46 slides from Super Retail's earnings presentation, Aug 18, 2021
Slide 1: 2021 Full Year Results Presentation
18 August 2021 ASX Announcement 2021 – Full Year Results Presentation Super Retail Group Limited (ASX–SUL) provides its 2021 – Full Year Results Presentation to the market. For further information contact: Investor enquiries: Robert Wruck: Head of Investor Relations Ph: 0414 521 124 E: Robert.wruck@
Slide 2: Full Year Results Presentation
20 FULL YEAR RESULTS 21 PRESENTATION Wednesday, 18 August 2021 Inspiring you to live your passion ABN: 81 108 676 204
Slide 3: Contents
CONTENTS • Group highlights • Corporate strategy • Excelling in omni-retail execution • Leveraging closeness to our customer • Growing the four brands – network optimisation • FY21 Financial results • FY22 Trading update • Appendix SUPER RETAIL GROUP 2
Slide 4: Group highlights
Group highlights SUPER RETAIL GROUP 3
Slide 5: Executive summary
Executive summary • Record full year result driven by strong top line growth, higher gross margin and disciplined cost management • Continued successful execution of omni-retail strategy providing flexibility to pivot to online channels to meet shifts in consumer behaviour during COVID-19 lockdowns
Slide 6: Record sales of $3.45 billion
Record sales of $3.45 billion Unprecedented consumer demand in the Group’s lifestyle and leisure categories delivered strong top-line growth GROUP SALES GROWTH SALES ($M) BY BRAND SALES LFL SALES GROWTH (%) GROWTH (%) 16.9 16.4 15.31 17.5 3,453 49.1 48.0 2,710 2,825 2,466 2,577 16.3 14.2 Jun 17 Jun
Slide 7: Financial highlights
Financial highlights SALES • Group sales up 22 per cent to $3.45b • Group like-for-like sales growth of 23 per cent EARNINGS • Segment EBIT up 80 per cent to $476.8m1 • Segment PBT up 108 per cent to $435.8m1 • Statutory NPAT up 173 per cent to $301.0m • Normalised NPAT up 107 per cent to $306.8m1 •
Slide 8: Operating highlights
Operating highlights CUSTOMERS • 8m active club members - up 22 per cent • Average customer NPS of 62.6 • Active club members represented 63 per cent of Group sales OMNI-CHANNEL • Click & Collect represented 46 per cent of online sales • Completed more than 1.5 million home delivery orders • 30 per
Slide 9: ESG highlights
ESG highlights1 MODERN SLAVERY & COMMUNITY PRIVACY & DATA INTEGRITY RESPONSIBLE SOURCING Macpac sourced 100% of its Donated over $680,000 to No reported cyber events cotton usage for T-shirts from charitable causes impacting privacy Fairtrade cotton SUSTAINABILITY ENERGY CARBON EMISSIONS Increased D
Slide 10: Corporate strategy
Corporate strategy SUPER RETAIL GROUP 9
Slide 11: 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 4 ENSURING BEING AN ORGANIC SIMPLIFY THE EFFICIENT OMNI-RETAILER GROWTH AND BUSINESS CAPITAL DISCIPLINE 5 EXCEL IN O
Slide 12: Strategy execution remains on track
Strategy execution remains on track 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 • Expansion of successful rCx • Embedding behavioural • Group sourcing optimisation & • Senio
Slide 13: Excelling in omni-retail execution
Excelling in omni-retail execution SUPER RETAIL GROUP 12
Slide 14: Online sales up 43 per cent to $416 million
Online sales up 43 per cent to $416 million Online sales growth moderated in the second half as COVID-19 related trading restrictions eased ONLINE SALES ($M) BRAND PERFORMANCE 4 YR CAGR 55% ONLINE SALES AS ONLINE ONLINE SALES A % OF TOTAL SALES ($M) GROWTH VS PCP (%) SALES 107 31 8 193 36 16 416 291
Slide 15: Long-term shift to online continues
Long-term shift to online continues Growing online sales validate the Group’s omni-retail business strategy and continued investment in our digital capability ONLINE SALES AS A PERCENTAGE OF TOTAL SALES – BY BRAND1 21% 17% 16% 14% 11% 10% 9% 9% 8% 8% 7% 7% 6% 6% 5% 4% 3% 3% Supercheap Auto rebel BCF
Slide 16: Our store network remains a competitive advantage
Our store network remains a competitive advantage Despite the impact of COVID-19 on shopping centre foot traffic, 94 per cent of sales involved a customer visiting a store GROUP SALES BY CHANNEL BRAND SALES BY CHANNEL In-store Click & Home 6% (%) Collect (%) Delivery (%) 6% 92 6 2 84 5 11 6% 88% 89
Slide 17: Leveraging closeness to customer
Leveraging closeness to customer SUPER RETAIL GROUP 16
Slide 18: Active club membership continues to outpace store growth
Active club membership continues to outpace store growth Active club members have grown more than four times faster than store numbers in the past four years STORE NUMBERS AND ACTIVE CLUB MEMBERS 4-year CAGR 700 8 600 Active members: +11.4% 7 500 Stores: +2.5% 400 6 300 200 5 100 0 4 Jun 17 Jun 18 J
Slide 19: Large, growing and active club membership base
Large, growing and active club membership base Active club members grew by more than 20 per cent to 8 million 327 2.3m 64 153 3.2m 59 142 2.0m 63 76 0.5m 68 STORES ACTIVE CLUB AVERAGE STORES ACTIVE CLUB AVERAGE STORES ACTIVE CLUB AVERAGE STORES ACTIVE CLUB AVERAGE MEMBERS ACTIVE CLUB MEMBERS ACTIVE
Slide 20: Investing in loyalty
Investing in loyalty Leveraging our growing club member base • Added 1.4m customers to our loyalty programs in the past 12 months to ACTIVE CLUB MEMBERS (M) reach 8m members 4-YEAR CAGR 11.4% • Club loyalty members represent 63 per cent of Group sales • The Group is deploying capital into rebuilding
Slide 21: Growing the four core brands - network optimisation
Growing the four core brands - network optimisation SUPER RETAIL GROUP 20
Slide 22: Network optimisation
Network optimisation Significant opportunity to optimise the network lease portfolio • The Group has recently completed a review of its lease portfolio and store network across the four core brands and renewed its 5-year network optimisation plan, focused on: • Expanding the Group’s presence in key
Slide 23: Network optimisation – key opportunities
Network optimisation – key opportunities STORE REFURBISHMENT rCX ROLL OUT SMALL FORMAT ROLL OUT STORE ROLL OUT • Supercheap Auto store • Conversion of top 25 stores and • Circa 600 sqm store (compared • Increase penetration in improvement program is targeting consolidation and conversion of to stand
Slide 24: Network optimisation overview
Network optimisation overview FY22 STORE DEVELOPMENT PLAN • Open 5 stores and close • Open 2 stores and close 2 • Open 5 stores • Open 7 stores 1 store stores • Range amplification • Refurbish 2 stores • Refurbish 30 stores • Refurbish 11 stores merchandising initiatives • Relocate 1 store • Relocat
Slide 25: FY21 financial results
FY21 financial results SUPER RETAIL GROUP 24
Slide 26: Group results
Group results $m FY21 Change on FY21 Change on Post AASB 16 PCP %1 Pre AASB 162 PCP %3 Total sales 3,453.1 22 3,453.1 22 Total segment EBITDA 776.2 46 557.4 70 Segment D&A (299.4) 12 (114.1) 24 Total segment EBIT 476.8 80 443.3 88 Normalised NPAT 306.8 107 308.0 100 Other items not included in norma
Slide 27: Segment results
Segment results (post AASB 16 Leases) $m FY21 FY20 Segment Sales EBIT PBT1 Sales EBIT PBT1 Supercheap 1,308.8 204.2 192.3 1,119.7 141.6 129.2 Auto rebel 1,197.0 180.0 166.7 1,038.6 110.6 96.0 BCF 797.7 105.2 96.4 535.0 23.4 15.0 Macpac 153.4 18.1 16.9 131.9 7.7 5.8 Group and (3.8) (30.7) (36.5) - (1
Slide 28: Supercheap Auto
Supercheap Auto • Total sales growth of 16.9 per cent driven by like-for-like sales growth FY21 Change FY21 $m Pre AASB 161 on PCP2 Post AASB 16 • Like-for-like sales growth of 16.4 per cent reflected transaction growth and higher average transaction value driven by increase units per transaction an
Slide 29: rebel
rebel • Total sales growth of 15.3 per cent driven by like-for-like sales growth FY21 Change FY21 • Like-for-like sales growth of 17.5 per cent1 was driven by increased $m Pre AASB 162 on PCP3 Post AASB 16 transaction and higher average transaction value, due to increased items per transaction and h
Slide 30: BCF
BCF • Total sales increased by 49.1 per cent driven by LFL sales growth FY21 Change FY21 $m Pre AASB 161 on PCP2 Post AASB 16 • Like-for-like sales increased by 48.0 per cent due to increased transactions and higher average transaction value Sales 797.7 49.1% 797.7 • Online sales grew by 90 per cent
Slide 31: Macpac
Macpac • Sales grew by 16.3 per cent as a result of a 14.2 per cent increase in like-for- FY21 Change FY21 like sales $m Pre AASB 161 on PCP2 Post AASB 16 • In Australia, like-for-like sales increased by 9.7 per cent despite restrictions on offshore travel, which impacted luggage, thermal and insula
Slide 32: Group & unallocated
Group & unallocated • Group and unallocated includes: – Corporate costs $m FY21 FY20 Change on PCP – Software as a service (SaaS) write offs EBIT (30.7) (18.3) 67.8% • Corporate costs $7.0m higher than pcp reflecting performance rights expenses for both Group and brand participating Comprising: mana
Slide 33: Group balance sheet
Group balance sheet FY21 FY20 Change on PCP $m • Inventory increased by $194m compared to June 2020 and reflects Inventory the Group’s decision to invest in inventory having regard to current Supercheap Auto 276.2 189.8 elevated levels of consumer demand and the potential for global rebel 191.4 140.
Slide 34: Returns and capital ratios
Returns and capital ratios Change on FY21 FY20 PCP • Normalised EPS of 136 cents was 81 per cent higher than pcp despite increased number of shares on issue following June 2020 Normalised EPS1 136.0c 75.0c 81.3% equity raising • Super Retail Group has declared a final fully franked dividend of 55 Ba
Slide 35: Group cash flow
Group cash flow $m FY21 FY20 Change on PCP • Operating cash flow of $600.0 million reflects, in part, the unwinding of favourable supplier terms which were previously Operating cash flow 600.0 610.7 (1.8)% granted in response to the COVID-19 pandemic and increased investment in inventory Stores (44.
Slide 36: FY22 trading update
FY22 trading update SUPER RETAIL GROUP 35
Slide 37: Fourth quarter trading
Fourth quarter trading Fourth quarter sales run rate remained strong. Group fourth quarter sales increased by 15 per cent compared to Q4 FY20, and by 26 per cent compared to Q4 FY19. Q4 MONTHLY TOTAL SALES – REBASED TO 1001 TOTAL SALES GROWTH Period vs FY20 vs FY19 April +64% +24% May +2% +29% 124 1
Slide 38: FY22 trading and operating update
FY22 trading and operating update • Group like-for-like sales growth as at week 7 LFL sales growth (%)1 LFL sales growth (%)1 (week 1 to 7) (week 1 to 7) versus FY21 versus FY20 Supercheap Auto (11) 9 rebel (16) 8 BCF (21) 34 Macpac (2) 13 Group (14) 12 • The Group is cycling 32% like-for-like sales
Slide 39: Appendix
Appendix SUPER RETAIL GROUP 38
Slide 40: Performance trends
Performance trends Reported Sales ($m) Reported Total Segment PBT ($m) 3,543 436 2,710 2,825 2,422 2,466 2,570 2,112 2,239 2,020 1,654 191 202 207 210 120 147 162 149 156 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 Jun 18 Jun 19 Jun 20 Jun 21 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 Jun 18 Jun 19 Jun
Slide 41: ESG performance
ESG performance ACTING WITH INTEGRITY • Modern Slavery statement published in March 2021 • 445 factories audited in the last two years for responsible sourcing • Macpac sourced 100% of its cotton usage for T-shirts from Fairtrade cotton MODERN SLAVERY & • Macpac recognised by the Humane Society Inte
Slide 42: ESG performance
ESG performance CARING FOR OUR NATURAL ENVIRONMENT • Reduced scope 1 & 2 carbon emissions by 7% from FY20 level to 61,859 tCO2-e • Reduced scope 1 & 2 carbon emissions by 15% from FY17 (base year) CARBON EMISSIONS • Increased Dow Jones Sustainability Index score from 52 to 60 • Recycling rate for al
Slide 43: ESG performance
ESG performance PASSIONATELY SUPPORTING OUR TEAM • Women in Board positions decreased to 29%1 • Women in executive leadership stable at 27% • Women in senior leadership stable at 39% • WGEA Employer of Choice for Gender Equality DIVERSITY • Ongoing investment to keep our team and customers safe duri
Slide 44: Segment note (post AASB Leases) FY21
Segment note (post AASB 16 Leases) FY21 SUPER RETAIL GROUP 43
Slide 45: Segment note (post AASB Leases) FY20
Segment note (post AASB 16 Leases) FY20 SUPER RETAIL GROUP 44
Slide 46: Disclaimer
Disclaimer This presentation was prepared by Super Retail Group Limited (ACN 108 676 204) (“SRG”). The presentation is not an invitation or offer for subscription or purchase or recommendation of securities. It does not consider the investment objectives, financial situation and particular needs of