Mr Price Group Limited · JSE:MRP
Mr Price — Investor Day (September 2024)
11 slides from Mr Price's investor day presentation, September 2024
Slide 1: Strategy progress 2020-2024
By Antoinette Joubert Strategy progress 2020-2024 Strategically invested in growth vehicles and enablers to build a stronger and healthier Part 2 business for a sustainable future
Slide 2: Research underpins strategy
Research underpins strategy Group strategy - ensure we do the right things to deliver growth Divisional strategy - ensure we are Research and data insights doing things right to deliver growth Business case development and Continuous monitoring and calibration benefits realisation 22 Exploring new a
Slide 3: Research insights
Research insights TOTAL SA APPAREL & FOOTWEAR SALES GROWTH (% CH Y/Y) 25 20 15 10 5 0 -5 -15 -20 Q1 ‘10 Q1 ‘11 Q1 ‘12 Q1 ‘13 Q1 ‘14 Q1 ‘15 Q1 ‘16 Q1 ‘17 Q1 ‘18 Q1 ‘19 Q1 ‘20 Q1 ‘21 Q1 ‘22 Q1 ‘23 Q1 ‘24 Insights Retail sales wallet spend • 2018/19 market sales growth below basic cost growth (CPI) – s
Slide 4: Where we were 2020
Where we were 2020 PRODUCT CLASSIFICATION Premium Aspirational value/Niche miladys.com mrprice.com mrpricesport.com Fashion mrpricehome.com value mrpricemoney.com sheetstreet.com Price value Apparel Homeware FS & Telecoms e-Commerce 24
Slide 5: Where we are 2024
Where we are 2024 GREATER ACCESS TO PREVIOUSLY UNDERSERVED CUSTOMER SEGMENTS ACROSS THE GROUP’S PORTFOLIO PRODUCT CLASSIFICATION Premium yuppiechef.com Aspirational value/Niche studio-88.co.za miladys.com mrprice.com mrpricesport.com Fashion mrpricehome.com value mrpricecellular.com mrpricemoney.com
Slide 6: Exploited acquisitive opportunities
Exploited 3 acquisitive opportunities Closed the apparel price value gap Fulfilled the aspirational value & e-Commerce opportunity in homeware Closed the branded footwear & apparel gap COLLECTIVELY ADDED R10.7BN IN SALES TO THE GROUP & OPERATING PROFIT OF R977M, EARNINGS ACCRETIVE 26
Slide 7: Integration
Integration Philosophy pre-acquisition • Acquire high performing businesses • Pace & level of intervention determined collaboratively and considering internal capacity • Cross-pollination of skills encouraged Insights • Initial light touch limits distraction & maximizes performance • Essential integ
Slide 8: Studio 88 Management earnout
Studio 88 Management earnout Acquisition of future tranches: • Same multiple as initial acquisition (EV/EBITDA) • Flexible to allow for earlier/later dates • Aligned with the intention to retain management for the long-term Remaining 30% management shareholding will be settled as follows: March 2024
Slide 9: Organic opportunities
Organic opportunities LAUNCHED & SCALING TWO ORGANIC OPPORTUNITIES Gained 90bps market share in the last Gained 90bps market share in the last 12 months 12 months • Under-indexed market share • Improved & targeted shopping experience for fashion-value customer • Leveraging Mr Price brand halo 29 Sou
Slide 10: Strategic investment
Strategic investment Insights • Best deployment of capital • Committed to achieving leading returns and metrics • Demonstrated ability to make trade-offs • Invested through the cycle • Further entrenching existing businesses to ensure future success Well positioned to accelerate growth off a strengt
Slide 11: Strategic progress
Strategic progress - Foundational activity and investment: retail sales growth of 68.7% over the period - Confident that profit delivery will continue to gain momentum Group ESG Director Intensified >100m units Sustainalytics ESG top rated B-BBEE level 5 S U STAI N ABI L I T Y appointed loadshedding