Super Retail Group Limited · ASX:SUL
Super Retail — H1 FY2014 Earnings Presentation
17 slides from Super Retail's earnings presentation, Feb 20, 2014
Slide 1: Results for the 26 weeks to 28 December 2013
For personal use only Results for the 26 weeks to 28 December 2013 Peter Birtles, Managing Director David Burns, Chief Financial Officer 20th February 2014
Slide 2: Group Highlights
Group Highlights 2 13/14 12/13 11/12 10/11 09/10 08/09 For personal use only Sales LFL % • Group NPAT up by 1.7% SCA 2.3% 5.2% 3.5% 3.4% 6.1% 4.5% • Group EBIT up by 1.3% • Group Sales up by 5.8% Leisure* 1.6% 2.8% 9.9% 1.5% 8.8% 6.8% Sports 5.5% 8.3% 7.8% * Leisure is BCF only until 11/12 • The six
Slide 3: Performance Trends
Performance Trends 3 Sales ($m) EBIT ($m) For personal use only 1037 1096 759 99.8 101.1 562 413 464 61.6 312 366 41.4 28.3 16.0 21.8 23.6 Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec 06 07 08 09 10 11 12 13 06 07 08 09 10 11 12 13 EPS (cents) * Post Tax ROC (%) 30.9 31.3 19.8 19.
Slide 4: Results
Group Results 4 2013/14 Change For personal use only • Solid sales growth in both Auto and Sports from both new store and LFL growth $m on pcp • Strong Leisure sales growth from new store expansion. LFL and gross margin performance below expectations in BCF impacting EBIT Sales 1,096.5 5.8% performa
Slide 5: Divisional Results
Divisional Results 5 2013/14 2012/13 For personal use only Sales EBIT Sales EBIT $m $m $m $m Auto Retailing 415.0 44.9 400.2 41.0 Leisure Retailing 306.9 24.4 283.9 26.6 Sports Retailing 370.2 38.4 348.4 36.4 Group & Unallocated 4.4 (6.6) 4.3 (4.2) Total Group 1,096.5 101.1 1,036.8 99.8 • Sports Ret
Slide 6: Auto Retailing
Auto Retailing 6 2013/14 change on For personal use only • Divisional result includes Supercheap Auto and Auto Trade Direct (not material at this stage) $m pcp • Strong sales from new stores and good momentum in LFL sales growth at 2.3% growth Sales 415.0 3.7% on PCP. LFL sales growth 2.3% • Solid p
Slide 7: Leisure Retailing
Leisure Retailing 7 • Overall sales results reflects solid sales in Ray’s 2013/14 change on For personal use only Outdoors and FCO plus new store growth in pcp BCF $m • Gross margin compression is partially offset by Sales 306.9 8.1% lower cost of doing business • Higher depreciation costs attributa
Slide 8: Sports Retailing
Sports Retailing 8 • Sales performance has been strong in both 2013/14 change on For personal use only Rebel and Amart Sports. LFL sales growth $m pcp driven by increased traffic and average transaction value Sales 370.2 6.3% • Included in the result are Goldcross store losses prior to closure circa
Slide 9: Group & Unallocated
Group & Unallocated 9 • Group and Unallocated includes SRG 2013/14 change on For personal use only Commercial, consolidated investment in pcp Oceania Bicycles and Group costs not allocated $m to segments Sales 4.4 2.3% • Acquisition costs are held at group and not allocated to business units. • Unal
Slide 10: Cash Flow
Group Cash Flow 10 Dec 13 Dec 12 For personal use only • Strong underlying operating cash flow performance has funded increase $m $m investment in new stores and development program Operating cash flow 172.1 226.6 (pre store set up investment) • Comparative period cash flow performance is higher due
Slide 11: Balance Sheet
Group Balance Sheet 11 Dec 13 Jun 13 For personal use only • SCA average inventory per store is 14% higher than pcp due to increased use of $m $m trade partner funded inventory, lower than plan sales and Chinese New Year planning • Leisure average inventory per store is 9% Inventory lower than Decem
Slide 12: Returns & Capital Ratios
Returns & Capital Ratios 12 • Improvement in EPS ratio consistent with Dec Dec For personal use only profit performance 2013 2012 • The Group undertook a modification of its debt facility in the period. The facility limit EPS – reported 31.3c 30.9c* has been increased to $600m and extended on more f
Slide 13: Strategic Programs
Group Strategic Programs For personal use only
Slide 14: Range, Brand and Service Development
Range, Brand and Service Development 14 Channel and Customer Development Range Development For personal use only • New stores • New product introduction • Auto – Grow to 320 stores • Circa 20 to 25% of product renewed • Leisure – Grow to 220 stores annually • Sports – Grow to 185 stores • Focus on g
Slide 15: Integrated Multi Channel Capabilities
Integrated Multi Channel Capabilities 15 Understanding and Engaging Customers Supply Chain & Inventory Management For personal use only Objectives: Objectives: • Engaging and integrated customer experience • The right supply chain to support a $3bn + multi across all channels channel multi business
Slide 16: Supporting Capabilities
Supporting Capabilities 16 Efficient and Effective Organisation Attracting and Engaging Team Members For personal use only Objectives: Objectives & Current Performance: • Reduce business operating costs by 2% of sales • Achievement of KPI’s in areas of Attraction, Retention, Engagement, Safety, Succ
Slide 17: Looking Forward
Looking Forward For personal use only 17 Auto Retailing • LFL sales growth in the first 7 weeks of 2nd half 13/14 circa 2.5% • SCA store development : no net increase in store numbers, 10 refurbishments, extensions and relocations (including 5 super stores) • Full year gross and EBIT margins expecte