Super Retail Group Limited · ASX:SUL
Super Retail — FY2020 Earnings Presentation
37 slides from Super Retail's earnings presentation, Aug 24, 2020
Slide 1: 2020 Full Year Results Presentation
Super Retail Group Limited 20 FULL YEAR RESULTS 20 PRESENTATION Authorised for release by the Super Retail Group Board Inspiring you to live your passion 24 August 2020
Slide 2: Contents
Contents • Group Highlights • 2019/20 Financial Results • Corporate Strategy • 2020/21 Trading Update • Appendix Investor enquiries: Robert Wruck, Head of Investor Relations Ph: 0414 521 124 E: robert.wruck@superretailgroup.com Media enquiries: Kate Carini Ph: 07 3482 7404 E: communications@superret
Slide 3: Group Highlights
Group Highlights SUPER RETAIL GROUP 3
Slide 4: Executive Summary
Executive Summary SUPER RETAIL GROUP’S FOUR CORE BRANDS HAVE LEADING POSITIONS IN ATTRACTIVE LIFESTYLE CATEGORIES AND ARE WELL POSITIONED TO BENEFIT FROM CHANGING CONSUMER BEHAVI OUR • Super Retail Group responded promptly to protect the health and safety of team members and customers and to Super R
Slide 5: Financial Highlights
Financial Highlights SALES • Group sales up 4.2% to $2,825.2m • Group LFL sales growth of 3.6% EARNINGS • Segment EBITDA up 4.3% to $328.1m1 • Segment EBIT up 3.5% to $236.1m1 • Group EBIT margin steady at 8.4%1 • Normalised NPAT up 1.0% to $154.1m1 • Final fully franked dividend of 19.5 cents per s
Slide 6: Operating Highlights
Operating Highlights CUSTOMERS • 6.6m active club members up 8.2% on pcp • Average customer NPS up 1.8% to 60.7 • Active club members represent 59% of Group sales OMNI-CHANNEL • Opened Macpac Australian DC • Online order management system phase 1 implementation finalised • Finalised Click & Collect
Slide 7: Well positioned to benefit from consumer response to COVID-19
Well positioned to benefit from consumer response to COVID-19 SUPER RETAIL GROUP’S FOUR CORE BRANDS ARE EXPECTED TO BENEFIT FR OM CONSUMER TRENDS EMERGING FROM THE PANDEMIC COVID-19 COVID-19impact impacton onconsumer consumer Impact onon Impact sales salesduring duringCOVID-19 COVID-19 Potential Exp
Slide 8: Track record of sales growth
Track record of sales growth THE GROUP HAS CONTINUED TO DELIVER TOP LINE GROWTH AND POSITIVE LIKE-FOR-LIKE SALES GROWTH DESPITE THE IMPACT OF SUMMER BUSHFIRES AND COVID -19 GROUP GROUP LFL SALES GROWTH SALES ($M) % LFL SALES GROWTH BY BRAND SALES LFL SALES 2019/20 GROWTH GROWTH 7.6% 6.3% 3.3%1 2.7%1
Slide 9: Strong sales rebound in May and June
Strong sales rebound in May and June SALES REBOUNDED STRONGLY DURING THE FOURTH QUARTER AS COVID -19 RESTRICTIONS EASED AND CONSUMERS RESUMED DOMESTIC TRAVEL, EXERCISE AND OUTDOOR LEISURE ACTIVITIES LFL sales growth Sales ($m) Mar 2020 April 2020 – June 2020 2019/2020 2019/20 Segment (weeks 1-38)1 (
Slide 10: Online sales growth of 44%
Online sales growth of 44% OMNI-RETAIL CAPABILITY PROVIDED THE GROUP WITH THE AGILITY TO PIVOT TO ONLINE SALES CHANNELS TO MEET CUSTOMER DEMAND DURING PEAK COVID -19 LOCKDOWN PERIOD ONLINE SALES ($M) BRAND PERFORMANCE 4 YR CAGR 66% ONLINE ONLINE SALES SALES ($M) GROWTH VS PCP 82 37% 141 49% 291 45 3
Slide 11: Capturing the demand shift to online channels
Capturing the demand shift to online channels ONLINE SALES HAVE INCREASED TO 10% OF GROUP TOTAL SALES IN 2019/20 (UP FROM 7% ON PCP) GROUP SALES BY CHANNEL1 BRAND SALES BY CHANNEL1 Click & Home In-store Collect Delivery 90% IN-STORE ONLINE % OF TOTAL SALES ONLINE SALES 93% 5% 2% HOME SALES 6% 6% DEL
Slide 12: Consumer behaviour supports omni-retail focus
Consumer behaviour supports omni-retail focus GROWTH IN NEW ONLINE CUSTOMERS AND CHANNEL SHIFT TO ONLINE CREATES POTENTIAL FOR A STEP CHANGE IN ONLINE SALES PENETRATION TO ABOVE PRE COVID -19 LEVELS TOTAL ONLINE CUSTOMERS BY BRAND1 REBEL ONLINE SALES 4 YR CAGR 47% AS % OF WEEKLY SALES (2019/20) 1.6
Slide 13: Customer growth outpacing new store growth
Customer growth outpacing new store growth ACTIVE CLUB MEMBERS HAVE GROWN TO 6.6 MILLION AND CUSTOMER SATISFACTION HAS IMPROVED STORE NUMBERS AND ACTIVE CLUB MEMBERS AVERAGE CLUB MEMBER NPS1 720 6.6 7 6.1 4 year CAGR 700 5.5 6 5.2 Active members 680 4.5 5 10.0% Stores 660 4 2.1% 640 697 3 60.7 690 5
Slide 14: Large, growing and active club membership base
Large, growing and active club membership base CLUB MEMBERSHIP AND % SALES FROM CLUB MEMBERS INCREASED ACROSS ALL BRANDS 1.71M active1 4% 2.88M active1 12% 1.54M active1 6% 0.45M active1 10% club members club members club members club members 63 NPS2 from 55 NPS2 from 64 NPS2 from 67 NPS2,3 61 57 61
Slide 15: 2019/20 Financial Results
2019/20 Financial Results SUPER RETAIL GROUP 15
Slide 16: Group results
Group results 2019/20 2019/20 2018/19 Change $m Post AASB 16 Pre AASB 161 Pre AASB 16 %2 Total sales 2,825.2 2,825.2 2,710.4 4.2 Total segment EBITDA 533.2 328.1 314.7 4.3 Segment D&A 268.2 92.0 86.6 6.2 Total segment EBIT 265.0 236.1 228.1 3.5 Normalised NPAT 148.2 154.1 152.5 1.0 Other items not i
Slide 17: Segment results
Segment results $m 2019/20 2018/19 2019/20 EBIT CONTRIBUTION (BY BRAND)1 Segment Sales EBIT1 Sales EBIT 3% Supercheap Auto 1,119.7 134.9 1,040.6 120.6 6% rebel 1,038.6 96.6 1,016.4 93.8 46% 43% BCF 535.0 15.7 514.6 20.8 38% 53% 9% Macpac 131.9 7.2 138.8 13.0 Group and (18.3) (20.1) Unallocated Total
Slide 18: Supercheap Auto
Supercheap Auto 2019/20 Change 2019/20 $m Pre AASB 161 on PCP2 Post AASB 16 • Total sales growth of 7.6% driven by like-for-like sales growth and contribution from new stores Sales 1,119.7 7.6% 1,119.7 • Like-for-like sales growth of 6.3% reflected both transaction growth and increased units per sal
Slide 19: rebel
rebel • Total sales growth of 3.3%1 driven by like-for-like sales growth 2019/20 Change 2019/20 $m Pre AASB 162 on PCP3 Post AASB 16 • Like-for-like sales growth of 2.7% 1 was driven by higher average transaction value Sales 1,038.6 3.3%1 1,038.6 • 9.1% like-for-like sales growth in May and June • O
Slide 20: BCF
BCF • Accelerated growth with last fourteen weeks of the year delivering 21.3% LFL sales growth 2019/20 Change 2019/20 $m Pre AASB 161 on PCP2 Post AASB 16 • Total sales increased by 4.0% driven by LFL sales growth • Like-for-like sales increased by 3.0% due to increased Sales 535.0 4.0% 535.0 trans
Slide 21: Macpac
Macpac 2019/20 Change 2019/20 $m Pre AASB 161 on PCP2 Post AASB 16 • Sales fell by 5.0% as a result of a 9.1% decline in like-for-like sales Sales 131.9 (5.0%) 131.9 • In Australia, like-for-like sales decreased by 9.7% as a result of the impact of summer bushfires on peak Christmas trading LFL sale
Slide 22: Group & unallocated
Group & unallocated • Group and unallocated includes: 2019/20 2019/20 Change on – Corporate costs $m Pre AASB Post AASB PCP2 161 16 – Costs not allocated to segments – Omni-retail development EBIT (18.3) (1.8) (18.3) • Total costs of $18.3m (EBIT) Comprising: • Corporate costs $0.1m lower than pcp C
Slide 23: Group balance sheet
Group balance sheet Jun 20 Jun 19 Statutory $m pre AASB 162 Pre AASB 16 Jun 201 Inventory • Inventory decreased by $57.8m compared to June 2019 Supercheap Auto 189.8 200.9 189.8 and reflects higher sales delivery in May and June impacting in-stock position and the impact of liquidity rebel 140.1 181
Slide 24: Returns and capital ratios
Returns and capital ratios 2019/20 2018/19 2019/20 Pre Pre Post AASB162 AASB16 AASB16 • Normalised EPS of 78.0 cents was 0.9% higher than pcp Normalised EPS1 78.0c 77.3c • Basic EPS (Pre AASB 16) of 58.8 cents was 16.7% lower Basic EPS (Pre AASB 16) 58.8c 70.6c 55.8c than pcp reflecting $38.0m after
Slide 25: Group cash flow
Group cash flow 2019/20 2018/19 2019/20 $m Pre AASB 161 Pre AASB 16 Statutory2 • Strong operating cash flow of $404.9m (pre AASB 16 Leases) has been supported by actions taken to respond to COVID-19. The impact of these actions are Operating cash flow 404.9 240.9 610.7 circa $160m and are expected t
Slide 26: Corporate Strategy
Corporate Strategy SUPER RETAIL GROUP 26
Slide 27: Our Strategy
Our Strategy THE THREE PRIMARY VALUE LEVERS FOCUS ON GROW BE AN ORGANIC ANNUAL EFFICIENT GROWTH & CUSTOMER OMNI- CAPITAL VALUE RETAILER DISCIPLINE 5 STRATEGIC DRIVERS GROW THE FOUR LEVERAGE CLOSENESS CONNECTED OMNI- SIMPLIFY THE EXCEL IN OMNI- CORE BRANDS TO OUR CUSTOMER RETAIL SUPPLY CHAIN BUSINESS
Slide 28: Strategy execution remains on track
Strategy execution remains on track GROW THE FOUR LEVERAGE CLOSENESS CONNECTED OMNI- SIMPLIFY THE EXCEL IN OMNI- CORE BRANDS TO OUR CUSTOMER RETAIL SUPPLY CHAIN BUSINESS RETAIL EXECUTION Current Focus Areas • New concept rebel • Investment in analytical • Consolidation of rebel • Senior Leadership t
Slide 29: Strategy robust throughout COVID-19
Strategy robust throughout COVID-19 GROW THE FOUR LEVERAGE CLOSENESS CONNECTED OMNI- SIMPLIFY THE EXCEL IN OMNI- CORE BRANDS TO OUR CUSTOMER RETAIL SUPPLY CHAIN BUSINESS RETAIL EXECUTION COVID-19 specific actions • Alignment of category and • Customer behavioural • DC assets leveraged to • Seamless
Slide 30: 2020/21 Trading Update
2020/21 Trading Update SUPER RETAIL GROUP 30
Slide 31: 2020/21 Trading and Operating Update
2020/21 Trading and Operating Update Group LFL sales growth of 32% in first seven weeks of 2020/21 • Supercheap Auto – circa 23% • rebel – circa 30% • BCF – circa 72% • Macpac – circa 16% The Group has delivered robust LFL sales growth driven by increased uptake of domestic tourism and travel, exerc
Slide 32: Appendix
Appendix SUPER RETAIL GROUP 32
Slide 33: Performance Trends
Performance Trends Reported Sales ($m) Reported Total Segment EBIT ($m) 2,710 2,825 2,422 2,466 2,570 2,112 2,239 2,020 220 228 236 1,654 207 141 172 183 170 175 1,092 88 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 Jun 18 Jun 19 Jun 20 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 Jun 18 Jun
Slide 34: Segment Note
Segment Note 2019/2020 Total Inter-segment continuing eliminations/ For the period ended 27 June 2020 SCA rebel BCF Macpac operations unallocated Consolidated $m $m $m $m $m $m $m Segment Revenue and Other Income External segment revenue 1,119.7 1,038.6 535.0 131.9 2,825.2 - 2,825.2 Inter segment sa
Slide 35: Footnotes to Segment Note
Footnotes to Segment Note 2019/2020 (1) Segment EBITDA (2) Segment (3) Net finance (4) Segment income (5) Other items not Footnote item adjusted for D&A adjusted costs adjusted tax adjusted for included in total for for $m segment NPAT $m $m $m $m Team member underpayment 14.7 - - 4.4 10.3 remediati
Slide 36: Segment Note
Segment Note 2018/2019 Total Inter-segment continuing eliminations/ For the period ended 29 June 2019 SCA rebel BCF Macpac operations unallocated Consolidated $m $m $m $m $m $m $m Segment Revenue and Other Income External segment revenue(1) 1,040.6 1,016.4 514.6 138.8 2,710.4 - 2,710.4 Inter segment
Slide 37: Post AASB 16 Leases
Post AASB 16 Leases 2019/2020 Total Inter-segment continuing eliminations/ For the period ended 27 June 2020 SCA rebel BCF Macpac operations unallocated Consolidated $m $m $m $m $m $m $m Segment Revenue and Other Income External segment revenue 1,119.7 1,038.6 535.0 131.9 2,825.2 - 2,825.2 Other inc