Super Group Limited · JSE:SPG
Super — Debt Investor Presentation (October 2020)
28 slides from Super's debt investor presentation, October 2020
Slide 1: 2020 Fixed Income Debt Investor Roadshow
2020 Fixed Income Debt Investor Roadshow
Slide 2: Disclaimer
DISCLAIMER The financial information pertaining to Super Group Limited’s (Super Group’s) assumptions and other statements, which are other than statements of historical results are exactly as published on SENS in terms of the JSE Limited’s Listings facts. The words "believe", "expect", "anticipate",
Slide 3: Recap of FY2020
supergrou p- Recap of FY2020
Slide 4: Corporate actions concluded during FY2020
CORPORATE ACTIONS CONCLUDED DURING FY2020 CONSIDERATION BUSINESS DESCRIPTION INTEREST DATE R’MILLION Acquired LiebenLogistics (Lieben Logistics) and Baleka Freight 65.0% 03/07/19 (498.8) Supply Chain Acquired an additional interest in Lieben Logistics 2.4% 02/01/20 (13.1) Africa Acquired GLS Supply
Slide 5: Financial summary
FINANCIAL SUMMARY • The financial results for the year ended 30 June 2020 were significantly impacted by: • Covid-19 loss of revenue and profit contribution • Adoption of IFRS 16 on leases • Impairments of goodwill, intangible assets and property • The direct cost of Covid-19 included: • Compliance
Slide 6: Results at a glance for the year ended June 2020
RESULTS AT A GLANCE for the year ended 30 June 2020 Revenue EBITA Operating profit Headline earnings R34.6bn R1.8bn R1.6bn R546.6m 2019: R37.9bn – down 8.7% 2019: R2.8bn – down 37.1% 2019: R2.7bn – down 41.0% 2019: R1.4bn – down 59.7% HEPS Cash generated from Net asset value Gearing (excl IFRS 16) o
Slide 7: The trading environment
THE TRADING ENVIRONMENT Global economic growth slows down dramatically with the outbreak of Covid-19 pandemic United Kingdom (UK) UK experienced a weakness in demand for short-term rentals and reduced residual European Union (EU) values German automotive manufacturing volumes The UK dealership
Slide 8: International vs South African operations
INTERNATIONAL VS SOUTH AFRICAN OPERATIONS Super Group’s international operations contributed 46% (June 2019: 48%) to revenue and 43% (June 2019: 50%) to operating profit 2% 6% 8% (5%) 11% Revenue per Operating profit country 54% 35% per country 57% 25% 7% South Africa United Kingdom Australia Europe
Slide 9: Divisional analysis
DIVISIONAL ANALYSIS Revenue Operating Profit or Loss Supply Chain Africa • Revenue increased by 2.6% mainly attributable to the inclusion of Operating profit declined by 29.8% largely due to: Lieben Logistics and GLS for the full year • a sharp decline in the commodity mining volumes, especially coa
Slide 10: Divisional analysis cont'd
DIVISIONAL ANALYSIS CONT’D Revenue Operating Profit SG Fleet • Revenue decreased by 8.5% (11.1% in AUD-terms), with the impact • Operating profit decreased by 40.3% (42.0% in AUD-terms) of Covid-19 estimated at R376 million • Covid-19 impact estimated at R203 million, being mainly due to lower • SG
Slide 11: The estimated direct impact of Covid-19
THE ESTIMATED DIRECT IMPACT OF COVID-19 The estimated direct financial impact of Covid-19 on revenue and profit before tax Revenue (R’m) Profit before tax (R’m) Estimated total: R5 178m Estimated total: R932m 2,515 1 245 170 1,218 203 376 97 322 217 746 SG Fleet SG Fleet Dealerships SA Services Deal
Slide 12: Revenue and EBITA analysis (excl. services and corporate)
REVENUE AND EBITA ANALYSIS (EXCL. SERVICES AND CORPORATE) Jun 2020 Jun 2019 22.3% 25.6% 29.8% 33.5% Revenue per division Supply Chain Africa 19.9% 21.5% 7.6% 8.2% Supply Chain Europe 13.6% 13.6% 1.8% 2.3% Fleet Africa 3.2% SG Fleet 9.6% 8.4% 11.1% Dealerships SA 35.2% 42.4% EBITA per division 36.7%
Slide 13: Cash flow statement
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 (R’m) Opening cash balance 3,577 Operating cash flow 3,447 Working capital 855 Net finance 571 costs paid Taxation paid 509 Dividend paid to 205 CASH FLOW STATEMENT non-controlling interests Net additions to PPE 955 & intangibles Net additions
Slide 14: Net borrowings (excl. ROU)
NET BORROWINGS (EXCL. ROU) Net borrowings/ Net borrowings/ Borrowings Cash (cash) (cash) R’million 30 June 2020 30 June 2020 30 June 2020 30 June 2019 Change Africa 5 027.0 (2 509.1) 2 517.9 2 718.2 (7.4%) United Kingdom 1 355.0 (513.2) 841.8 554.8 51.7% Australia 1 349.4 (1 197.6) 151.8 170.9 (11.2
Slide 15: Debt maturity profile
DEBT MATURITY PROFILE Secured asset-based borrowings Secured property borrowings and other SG Fleet borrowings Corporate bond Acquisition borrowings FML borrowings 2,500 2 349 2,000 R’million 1 595 1 457 1 346 1,500 1 023 1,000 500 - Year 1 Year 2 Year 3 Year 4 Year 5< FIXED INCOME DEBT INVESTOR ROA
Slide 16: Debt covenants
DEBT COVENANTS • Covenants exclude: • SG Fleet • IFRS 16 • The Group met its debt covenants FIXED INCOME DEBT INVESTOR ROADSHOW PRESENTATION 2020 16
Slide 17: Other committed liquidity facilities
OTHER COMMITTED LIQUIDITY FACILITIES 1,500 1,000 R'million 1,580 500 473 29 - South Africa Mauritius Germany Utilised Unutilised R 500 million of the South African committed liquidity facilities are secured by the state-of-the-art warehousing facility in Isando. FIXED INCOME DEBT INVESTOR ROADSHOW P
Slide 18: Other key financial data
OTHER KEY FINANCIAL DATA 30 June 30 June 2020 2019 Return on Equity (3.0%) 12.6% Return on Net Operating Assets 6.3% 12.6% Group Weighted Average Cost of Capital 9.4% 9.2% Net debt to equity (excl IFRS 16) 24.1% 24.1% Net debt to EBITDA ratio (excl IFRS 16) 1.3x 1.0x Net interest cover (excl IFRS 16
Slide 19: Prospects
PROSPECTS Global markets coming to terms with the “new normal” of doing business United Kingdom (UK) FML environment improving European Union (EU) German automotive manufacturing volumes The UK new vehicle sales looking starting to recover, albeit at a slow rate promising Africa South Africa (
Slide 20: Board changes
BOARD CHANGES Retirements (effective 28 November 2019) New appointments (effective 1 October 2020) David Rose John Newbury Pitsi Mnisi Simphiwe Mehlomakulu Resignations (effective 8 July/30 November 2020) Debt Officer appointment (effective 13 October 2020) Oyama Mabandla Mariam Cassim Colin Brown F
Slide 21: DMTN Programme
supergrou p- DMTN Programme
Slide 22: Group structure & DMTN guarantors
GROUP STRUCTURE & DMTN GUARANTORS Issuer Listed on JSE South Africa Super Group Bluefin Guarantor Holdings (Pty) Ltd Investments from Guarantor Limited April 2020 Guarantor 79.96% 100% South Africa Mauritius Super Group Non-Wholly Owned Super Group Trading (Pty) Ltd Operations African SG Fleet Limit
Slide 23: Tangible assets & borrowings (excl. ROU & working capital)
TANGIBLE ASSETS & BORROWINGS (EXCL. ROU & WORKING CAPITAL) 9,000.00 8,000.00 7,000.00 Bluefin Investments Limited, the holding company of all international business including 100% of Allen Ford, 75% of the European division, and 60.13% of the shares in SG Fleet (listed on ASX), became a new guaranto
Slide 24: Debt policies
DEBT POLICIES Debt Management Objectives • Simple, clearly defined debt structure, with transparent ranking amongst all Group finance counterparties, • Flexibility to actively manage debt arrangements and achieve funding efficiency, • Build debt management credibility and a respected credit profile,
Slide 25: Bonds in issue and credit rating
BONDS IN ISSUE AND CREDIT RATING Bond Code Issued Amount Issue Date Maturity Date SPG004 450 000 000 27 September 2018 27 September 2023 SPG005 300 000 000 15 March 2019 15 March 2024 SPG006 375 000 000 18 June 2019 18 June 2022 SPG007 625 000 000 18 June 2019 18 June 2024 SPG008 250 000 000 15 Octo
Slide 26: Timing considerations
TIMING CONSIDERATIONS Oct-20 Nov-20 Indicative Terms M T W T F M T W T F 1 2 2 3 4 5 6 Issuer Super Group Limited 5 6 7 8 9 9 10 11 12 13 Super Group Holdings, Super Group Trading, Super Guarantors 12 13 14 15 16 16 17 18 19 20 Group Africa and Bluefin Investments 19 20 21 22 23 23 24 25 26 27 Natio
Slide 27: Contact details
CONTACT DETAILS Name Telephone number E-mail address Super Group Colin Brown +27 11 523 4000 colin.brown@supergrp.com (Chief Financial Officer) Bridget Bird +27 11 523 4000 bridget.bird@supergrp.com (Group Treasury Manager) RMB Delia Patterson +27 11 282 4162 Delia.Patterson@rmb.co.za (DCM Distribut
Slide 28: Thank you
Thank you COLIN BROWN BRIDGET BIRD Chief Financial Officer Treasurer Further information available on www.supergroup.co.za
Super Group — Debt Investor Presentation (October 2020) on 6ix