Super Retail Group Limited · ASX:SUL
Super Retail — H1 FY2012 Earnings Presentation
18 slides from Super Retail's earnings presentation, Feb 22, 2012
Slide 1: Results for the 26 weeks to 31 December 2011
For personal use only Super Retail Group Results for the 26 weeks to 31 December 2011 Peter Birtles, Managing Director Gary Carroll, Chief Financial Officer 22nd February 2012
Slide 2: Group Highlights
Group Highlights For personal use only • Group NPAT up by 40% 1st Half LFL Sales Growth 11/12 10/11 09/10 08/09 07/08 • Group EBIT up by 49% SCA 3.5% 3.4% 6.1% 4.5% 4.7% • Group Sales up by 35% Leisure* 9.9% 1.5% 8.8% 6.8% 6.3% * - Leisure is BCF only until 11/12 • Results continue to demonstrate th
Slide 3: Performance Trends
Performance Trends Sales ($m) For personal use only 759 562 464 366 413 312 Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 EPS (cents) * Post Tax ROC (%) 19.8 19.6 15.6 17.0 22.0 13.7 15.2 18.3 11.8 13.5 10.9 7.9 Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 * - hist
Slide 4: Group Results
Group Results 2011/12 Change For personal use only • Solid sales growth in both SCA and BCF through both new store and LFL growth $m on pcp • EBIT margin improvements across the Group • 2011/12 Group NPAT impacted by: Sales 759.2 35.1% – $10.3m transaction costs relating to the Rebel Group acquisiti
Slide 5: Divisional Results
Divisional Results 2011/12 2010/11 For personal use only Sales EBIT Sales EBIT $m $m $m $m Auto & Cycle Retailing 383.3 34.1 360.5 27.2 Leisure Retailing 247.1 23.6 201.4 18.2 Sports Retailing 128.8 17.7 Group Costs* (13.7) (4.0) Total Group 759.2 61.6 561.9 41.4 * ‐ Group Costs include: • $10.3m tr
Slide 6: Auto and Cycle Retailing
Auto and Cycle Retailing 2011/12 change on For personal use only • Overall result reflects excellent Supercheap Auto contribution $m pcp • SCA maintained momentum in LFL sales growth through the year building on 3.4% growth in PCP. Sales 383.3 6.3% • Growth driven by increase in customer numbers, av
Slide 7: Leisure Retailing
Leisure Retailing Overall result reflected strong sales and margin 2011/12 change on For personal use only • growth at BCF and strong sales growth following pcp the re‐launch of Ray’s Outdoors in August, partially $m offset by FCO start‐up investment Sales 247.1 22.7% • 9 new BCF stores and 3 new Ra
Slide 8: Sports Retailing
Sports Retailing 2011/12 change on For personal use only • Results consolidated from 30 October 2011. • Sales performance has been strong in both Rebel $m pcp and Amart All Sports since acquisition driven by improved in‐stock position, team focus and Sales 128.8 clearance of aged stock • Gross margi
Slide 9: Group Cash Flow
Group Cash Flow Dec 11 Dec 10 For personal use only • New and refurbished store investment of $38.2m being fully funded out of operating cash $m $m flows Operating cash flow 106.8 59.7 • Operating Cash Flow ‐Store set up costs & inventory: (pre store set up investment) – Auto & Cycle : $5.2m Store s
Slide 10: Group Balance Sheet
Group Balance Sheet Dec 11 Jun 11 For personal use only $m $m • SCA average inventory is 6% higher than PCP, with timing of shipments accounting for around half of the increase. The increased stock weight Inventory of higher value products accounts for the remaining balance, partially offset by supp
Slide 11: Returns & Capital Ratios
Returns & Capital Ratios For personal use only 2012 2011 • Improvement in EPS and fixed charge coverage ratio reflect the improved profit performance EPS – reported 22.0c 18.3c • All cover ratios are well within covenanted levels Fixed charge cover 2.14x 1.99x • As a result of the Rebel acquisition,
Slide 12: Group Strategic Plan Overview
Group Strategic Plan Overview For personal use only The Group’s Strategic Plan has two major components: • Develop Existing Group Businesses • Primarily brand, store, merchandise and people development initiatives with the objective of growing Sales, EBIT and ROC at a business level • Channel and cu
Slide 13: Develop Existing Businesses
Develop Existing Businesses For personal use only Channel and Customer Development Range Development • New stores • New product introduction • Auto and Cycle – Grow SCA to 320 stores • Circa 20 to 25% of product renewed • Leisure – Grow to 185 stores annually • Sports – Grow to 185 stores • Focus on
Slide 14: Develop Existing Businesses: Rebel Sport and Amart All Sports
Develop Existing Businesses For personal use only Rebel Sport and Amart All Sports Business Development • Brand development to be completed by end March • Aged inventory clearance • Target 5% of total inventory • Trade partner relationship development •Team member engagement • Integration and synerg
Slide 15: Future Integrated Multi Channel Model
Future Integrated Multi Channel Model For personal use only 15
Slide 16: Integrated Multi Channel Capabilities
Integrated Multi Channel Capabilities For personal use only Integrated Multi Channel Customer Offer Integrated Multi Channel Supply Chain Capabilities developed in last 6 months: Capabilities developed in last 6 months: •Brand websites designed for mobile devices •Growth in on-line business underpin
Slide 17: Team Development
Team Development For personal use only Current Performance: •Attraction tracking ahead of internal targets •Retention continues to be significantly above retail industry average and in line with internal target •Engagement above retail industry average but below internal target •Safety above retail
Slide 18: Looking Forward
Looking Forward For personal use only Auto & Cycle Retailing • LFL sales growth in the first 7 weeks of 2nd half 11/12 circa 3.5% • SCA store development : plan to open 4 new stores, close 2 stores, reconfigure 2 stores as Superstores and refurbish 13 stores during 2nd half 11/12 • Full year gross a