Slide 1: Results Presentation
RESULTS PRESENTATION MAY For the 12 months ended 2011 31 March 2011
Slide 2: Agenda
AGENDA 1. Year in Review 2. Debtor Analysis 3. Financial Results 4. Outlook 5. Questions 2
Slide 3: Year in Review
1. YEAR IN REVIEW R2 290m 23% 781 781.1c 1c R832 m 207c + 12.0% 23.0% +21.6% 21.6% 36.3% + 15.6% Merchandise Operating g Headline Gross Final Sales Margin Earnings Profit Dividend per Share per Share LY 22.1% LY 642.6c LY 34.9% LY 179c 3
Slide 4: Operating Profit - History
Operating Profit - History Solid operating performance over the past 19 years – Compound annual growth of 10.8% 1 200 R1 053 1 000 R907 R860 R883 R832 800 R729 R Millions R594 600 R506 R417 R442 R429 R388 R351 R361 400 R327 R274 R298 R200 R166 200 - 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Slide 5: Year In Review
Year In Review • Improving sales trend – up 12.6% in H2 (11.2%: H1). - Furniture & appliances (82% of business) - up 12.1% (FY11) - Electronic sales (18% of business) - up 11.9% (FY 11) • Improved credit/cash mix – 71.4% (FY 10: 68.5%). • Customer acquisition initiatives. • Credit application declin
Slide 6: Year In Review (Cont'd)
Year In Review (Cont’d) • Store roll out on track – 40 stores opened. • E l i it off merchandise Exclusivity h di a kkey ffocus. • New ranges launched twice a year. • Gross profit margin improved. FY11 FY10 Gross profit 36.3% 34.9% Exchange gains/(losses) (0.3%) (1.5%) All in g gross 36.0% 33.4% • S
Slide 7: 2. Debtor Analysis
. DEBTOR ANALYSIS 2 7 Group Ltd
Slide 8: Debtor Costs
Debtor Costs FY11 FY10 Rm Rm Total Debtor costs 459 434 Bad debts written off 336 331 Impairment Provision 123 103 D bt costs Debtor t as a % off nett debtors d bt 10 2% 10.2% 10 9% 10.9% 8
Slide 9: Debtor Payment Analysis
Debtor Payment Analysis Impairment provision allocated on number of customers in the four summary categories. IMPAIRMENT NCA NUMBER OF CUSTOMERS PROVISION % OVER Debtor's Payment Analysis 2011 2010 2011 2010 24 MONTHS Customers fully up to No. 521,304 498,370 271,599 date including those who Satisfa
Slide 10: 3. Financial Results
3. FINANCIAL RESULTS Group Ltd
Slide 11: Income Statement
Income Statement FY11 FY10 % Rm Rm Revenue 4 578 4 111 11.4% Merchandise sales 2 290 2 046 12.0% Gross profit % 36.3% 34.9% Operating profit 1 053 907 16.0% Operating margin % 23.0% 22.1% Attributable earnings 712 591 20.4% EPS (cents) 807 672 20.1% Headline EPS (cents) 781 643 21.6% 11
Slide 12: Segmental Analysis
Segmental Analysis Best Home My 2011 Group Lewis Electric Home Revenue (Rm) 4 578 3 853 589 136 Revenue growth (%) 11 4% 11.4% 11 0% 11.0% 16 9% 16.9% (0 9%) (0.9%) Operating profit (Rm) 1 053 920 126 7 Operating margin FY:11 23.0% 23.9% 21.4% 5.0% FY:10 22.1% 23.3% 19.1% 1.7% Number of stores 582 4
Slide 13: Business Split
Business Split Risk Financial Retail Services Services Group Rm Rm Rm Rm 2011 Revenue 2 594 752 1 232 4 578 Operating profit 416 213 424 1 053 Operating margin FY:11 16.0% 28.3% 34.4% 23.0% FY:10 14 5% 14.5% 24 5% 24.5% 35 8% 35.8% 22 1% 22.1% • Supplied for continuity purposes only. Our business is
Slide 14: Analysis of Costs
Analysis of Costs Excluding Debtor Costs FY11 FY10 Change Rm Rm % Employment costs 693 607 14.2% Admin and IT 208 195 6.9% Marketing 156 134 16 5% 16.5% Occupancy costs 186 165 12.7% Transport/Travel 148 136 9.3% Depreciation 47 46 0.4% Other operating costs 170 155 8.7% Total 1 608 1 438 11 8% 11.8
Slide 15: Balance Sheet Overview
Balance Sheet Overview FY11 FY10 Rm Rm Property, plant and equipment 279 251 Investments 1 097 894 Inventory 256 210 Net Debtors 3 835 3 428 Cash 84 62 Total Assets 5 551 4 845 Shareholders’ equity and reserves 3 728 3 274 Retirement benefits 59 52 Tax and Deferred Tax 114 108 Creditors 567 450 Inte
Slide 16: Capital Ratios
Capital Ratios FY11 FY10 ROE – after tax (%) 20.3% 19.2% ROCE – after tax (%) 17.2% 17.2% ROA – before tax (%) 21.8% 21.9% Total Dividend (cents) 363 323 Gearing ratio (%) 26.8% 27.5% • No further share buy back planned • Investing in store roll out/Debtor book • Gearing is well within our max range
Slide 17: Net Cash Position
Net Cash Position FY11 FY10 Insurance Investments 1 097 894 Cash 84 62 Cash, Bonds, Equities 1 181 956 Interest Bearing Borrowings 1 083 961 Net p position 98 ((5)) 17
Slide 18: 4. Outlook
4. OUTLOOK Group Ltd
Slide 19: Outlook
Outlook • Management of Debtors book. ¾ The collections environment continues to improve. improve ¾ Debtor costs continue to moderate. ¾ Debtor costs target – 8% by 2013. 19
Slide 20: Outlook
Outlook • Merchandise innovation focused on exclusivity and increased furniture sales. ‐ Two launches per annum • The proven business model a competitive advantage. • p Store expansion. ‐ 3yr target : 700 stores ‐ FY2012 40 stores • Operating margin three year target – 26%. 20
Slide 21: Questions - Thank You
5. QUESTIONS THANK YOU Group Ltd