Shoprite Holdings Limited · JSE:SHP

Shoprite — H1 2011 Earnings Presentation

9 slides from Shoprite's earnings presentation, 2011

  1. Slide 1: Operational Overview

    OperaAonal Overview Whitey Basson Chief Execu=ve Officer

  2. Slide 2: Trading Environment

    Trading Environment • Difficult trading condi-ons for retailers • Intense price compe--on on basic foods • Management -me consumed by CPA requirements and Compe--on Commission • Despite slightly more posi-ve sen-ment, consumers under pressure • Lack of job crea-on increasing consumer pressure with 500

  3. Slide 3: Group Overview

    Group Overview • Group sales growth of 9.4% (Growth in real terms: 10.6%) • Opened 43 corporate supermarkets and 20 furniture stores • Sales growth slowed significantly, in line with the defla-on to Dec 2010 30

  4. Slide 4: Group Overview continued

    Group Overview conAnued • The importance of low price & basic foodstuffs to the Group means that we experienced more severe defla-on 31

  5. Slide 5: Group Overview continued

    Group Overview conAnued • Despite weak consumer spending, the Group managed to airact an addi-onal 3 million customers per month (4.3% growth) • Contrary to our expecta-on, Rand strength con-nued through Dec 2010 affec-ng the Non-­‐RSA results conversion to Rand but, • Non-­‐RSA sales growth of 13.6%

  6. Slide 6: Group Overview continued

    Group Overview conAnued • Market condi-ons evident in furniture division’s performance showing a substan-al 14.5% selling price defla-on • Our complementary business units Money Market, Compu-cket, LiquorShop and Pharmacy showed excep-onal performance • Indicates the Group’s ability to leverage custo

  7. Slide 7: Value Added Statement

    Value Added Statement December 2010 Providers 15% of Capital 11% Employees 56% Tax 18% Reinvested • President Zuma targe-ng 5,000,000 jobs • The Group has assisted in reducing this target to 4,993,558 by crea-ng 7,339 new jobs in the past 6 months • Total employees now 91,279 34

  8. Slide 8: 63% of SA Shop at Shoprite or Checkers

    63% of SA Shop at Shoprite or Checkers *Number of adult shoppers: Total SA adult populaAon 34m 21.4m 14.2m 11.4m 0.9m Shoprite Group Pick n Pay Group Spar Group Woolworths Group 35 Source: AMPS (Released March 2010)

  9. Slide 9: Improving middle class in the SA population profile supports the Group's positioning

    Improving middle class in the SA populaAon profile supports the Group’s posiAoning 20 18 2010 16 Customer Profile 14 by LSM for 12 2006 RSA population 10 % 8 6 LSM 4 -­‐ 7 4 2 0 LSM 1 LSM 2 LSM 3 LSM 4 LSM 5 LSM 6 LSM 7 LSM 8 LSM 9 LSM 10 Popula-on Divide 2010 2.8 6.5 7.7 14 16.8 19.3 9.9 8.1 9 6 Pop

Shoprite Holdings — H1 2011 Earnings Presentation on 6ix