Slide 1: Results for the 52 weeks to 30 June 2007
For personal use only Super Cheap Auto Group Results for the 52 weeks to 30 June 2007 Peter Birtles, Managing Director Gary Carroll, Chief Financial Officer 23 August 2007
Slide 2: Group Highlights
Group Highlights For personal use only – 52 Weeks to 30 June 2007 • 5 Group Strategic initiatives on track – Driving LFL sales growth in SCA – Expanding the SCA Network – Expanding the BCF Network – Developing Procurement and Supply Chain capabilities – Developing our people • Earnings Per Share inc
Slide 3: Group Results
Group Results For personal use only – 52 Weeks to 30 June 2007 $m change on prior year • Strong profit performance driven by good Sales 624.8 18.8% sales growth and control of costs EBITDA 51.3 29.6% • Sales growth across both brands achieved through new store and LFL sales growth EBIT 38.1 31.7% •
Slide 4: Supercheap Auto Results
Supercheap Auto Results For personal use only - 52 weeks to 30 June 2007 2007 % change • Strategic initiatives on track: on py – New stores $m – Refurbishment program Sales – New marketing campaign - Total 525.7 9.1% – New product ranges • 14.7% growth in EBIT • Gross Margin reduced by 0.2% points G
Slide 5: Supercheap Auto Results
Supercheap Auto Results For personal use only - 52 weeks to 30 June 2007 2007 % change • Store opening schedule on track on py – 14 stores opened during the year $m – 4 stores relocated Total Sales – 2 stores closed - Total 525.7 9.1% – 246 Stores at 30 June 2007 (208 in Australia and 38 in New Zeal
Slide 6: BCF Results
BCF Results For personal use only - 52 weeks to 30 June 2007 2007 2006 $m $m • Store Numbers: – 30 June 2007 - 31 Sales 99.1 44.2 – Represented in Qld, NSW, WA and NT • Sales growth was due to both new stores Gross margin 40.6% 35.7% (18 were opened during the year) and 13.5% LFL growth EBIT pre set
Slide 7: Group Cash Flow
Group Cash Flow For personal use only 2007 2006 $m $m • Strong underlying cash flow performance Operating cash flow 60.9 45.9 driven by sales growth and focus on working capital management (pre store set up) • SCA new store growth and refurbishment New/refurb store set-up (26.9) (19.1) activities, a
Slide 8: Group Balance Sheet
Group Balance Sheet For personal use only 2007 2006 $m $m • SCA average inventory per store has remained flat despite the following: – Batteries previously held on consignment totalling approx $3m ($12k per store) have Inventory been included in stock in 2007 - SCA 122.7 117.8 – Investment in higher
Slide 9: Group Key Financial Ratios
Group Key Financial Ratios For personal use only 2007 2006 • 35.5% growth in EPS as profit increase is funded by organic cash flows and debt EPS 21.0c 15.5c EBIT Interest Cover 5.3x 5.0x • Strengthening credit ratios and return on capital reflect focus on capital utilisation in addition to Debt/EBIT
Slide 10: Group Strategy Update
For personal use only Super Cheap Auto Group Group Strategy Update
Slide 11: Group Strategy Update
Group Strategy Update For personal use only • Driving LFL sales growth in Supercheap Auto • Expansion of the Supercheap Auto network • Expansion of BCF network • Developing Procurement and Supply Chain capabilities • Developing Our People 11
Slide 12: Driving LFL Sales Growth in SCA
Driving LFL Sales Growth in SCA For personal use only • Store refurbishment initiative proving successful – Sales uplift in line with expectations – Refurbished/Relocated 18 stores during 2007 – Plan to refurbish approximately 30 stores in 2007/08 • Customer offer development – Launch of SCA own bra
Slide 13: Expansion of SCA Network
Expansion of SCA Network For personal use only • 245 stores trading today – 1 store closed this year – 2 stores open on 25 August • Continued development of 4 discrete formats – Existing ‘700’ format stores – ‘400’ format stores – smaller regional and higher rental urban locations – ‘200’ format sto
Slide 14: Expansion of BCF Network
Expansion of BCF Network For personal use only • 32 stores trading today – 20 in Qld, 6 in WA, 5 in NSW and 1 in NT • Opened new store at Ipswich (QLD) in early July • Plan to open between 10 to 15 new stores in 2007/08 – Current property schedule indicates that new stores will be phased evenly thro
Slide 15: Developing Procurement and Supply Chain Capabilities
Developing Procurement and For personal use only Supply Chain Capabilities • Continued focus on reducing product costs and logistics costs as a % of sales – Logistics costs as a % of sales have reduced by 0.4% pts over the last 2 years – Further underlying improvement anticipated in 2007/08 • Overse
Slide 16: Developing our People
Developing our People For personal use only • Our team members are the key to an increased sales and service focus – Development of customer service and selling skills – Development of product knowledge – Investment in team member numbers in smaller stores • Greater focus on team retention – SCA Sto
Slide 17: Outlook for Full Year 2007/08
For personal use only Super Cheap Auto Group Outlook for Full Year 2007/08
Slide 18: Outlook for Full Year 2007/08
Outlook for Full Year 2007/08 For personal use only Supercheap Auto • Plan to open approximately 10 new stores • Expect the business to continue to gain market share => modest LFL growth. – LFL growth in early 07/08 is consistent with 06/07 trends • Anticipate further improvement in underlying EBIT