Mr Price Group Limited · JSE:MRP
Mr Price — FY2010 Earnings Presentation
39 slides from Mr Price's earnings presentation, March 2010
Slide 1: Annual Results - March 2010
Annual Results - March 2010 Ss ~SV 2 DEE maT a Cl}
Slide 2: Retail sales trends in South Africa
Mr Price Group Limited | Annual Results | March 2010 Mar Apr May Jun Jul Aug 2009 Retailers in household furniture, appl © Retailers in textiles, clothing, footw © Total SA retail sales
Slide 3: Mr Price Group vs retail sector sales
Mr Price Group Limited | Annual Results | March 2010 Mar Apr May Jun Jul Aug 2009 Retailers in household furniture, appl ® Retailers in textiles, clothing, footwec * Total SA retail sales ~ Mr Price Group
Slide 4: Highlights
Mr Price Group Limited | Annual Results | March 2010 Highlights _
Slide 5: 2010 Highlights
Mr Price Group Limited | Annual Results | March 2010 2010 Highlights Retail sales Retail sales and « Comparable sales ’ Net weighted average trading s RSP inflation Profit from operating activities Operating margin
Slide 6: Sales and Operating Profit Splits
Mr Price Group Limited | Annual Results | March 2010 Sales and Operating Profit Splits {7% Sales Apparel Home Total Operating Profit Apparel Home
Slide 7: Retail sales and operating profit
a f=) So o £ 4 3 eS wn & © 2) — a « 2005 2006 Retail sales Retail sales Operating profit
Slide 8: Tax and deferred tax balances
Mr Price Group Limited | Annual Results | March 2010 Bae Lae —— - la arthnersnlvs Remaining long term deferred tax balances No future clawbacks in income statement Will have core HEPS for another year until \ of the base Effective tax rate remains at 32.4% excludin adjustments
Slide 9: Earnings Per Share
Mr Price Group Limited | Annual Results | March 2010 Earnings Per Share 2010 2009 Growth Headline earnings 276.9 251,910 9.9% Core headline earnings 285.7¢ 236.1 ¢ 21.0% Consensus fully diluted HEPS — 272.7c Actual fully diluted HEPS — 285.8c e excluding export partnership impairment of R59m e@ incl
Slide 10: Headline and Core Headline Earnings Per Share
Mr Price Group Limited | Annual Results | March 2010 Headline and Core Headline Earnings Per Share o - o ie Ca) i. ou Q vw ~ i= ou Oo 2005 2006 2007 2008 2009 2010 @ HEPS Core HEPS
Slide 11: Dividend Policy
Mr Price Group Limited | Annual Results | March 2010 Dividend Policy Dividend Capital expenditure o Cash generative business model * Cash sales * Cash generated from operations Strong unencumbered balance sheet * Cash resources . Debtors book
Slide 12: Dividend Policy
Mr Price Group Limited | Annual Results | March 2010 Dividend Policy
Slide 13: Restrained capex
Restrained capex in
Slide 14: Sales growth
Mr Price Group Limited | Annual Results | March 2010 2006 2007 Sales growth
Slide 15: Credit book metrics
Mr Price Group Limited | Annual Results | March 2010 Total number of active accounts Net bad debts as % credit sales * Net bad debts as % debtors * Impairment provision (% of debtors) Markov chain analysis Additional risk factors * Excludes collection costs, movement in provision
Slide 16: HE
HE
Slide 17: Divisional Performance
Slide 18: Segmental Performance - Apparel
Mr Price Group Limited | Annual Results | March 2010 Segmental Performance - Apparel Retail sales a Comparable sales Unit sales RSP inflation Weighted average space growth Trading density R21 369m? R20 Operating margin 14.6 % Number of stores
Slide 19: Mr Price Apparel
Mr Price Group Limited | Annual Results | March 2010 2010 2009 } Retail sales R5.2 bn R4.5 bn 15.9% Comparable sales 13.4% Unit sales 10.7% RSP inflation 4.8% Weighted average space growth 6.0% Trading density R26 414m? R24 119m? 9.5% Number of stores 338 326
Slide 20: Mr Price Apparel highlights
Mr Price Group Limited | Annual Results | March 2010 Number of shoppers as measured by AMPS increased by 30%, with increase in AMPS universe of 3% Voted most loved and most frequented apparel retail brand by our target market for third consecutive year In excess of 100 million units sold Per RLC, Mr
Slide 21: Market share
Mr Price Group Limited | Annual Results | March 2010 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Total market share - Clothing market share Footwear market share
Slide 22: Mr Price vs RLC sales growth
Mr Price Group Limited | Annual Results | March 2010 Nov Dec Mr Price sales growth ——~RLC sales growth
Slide 23: Mr Price Sport
Mr Price Group Limited | Annual Results | March 2010 Retail sales R437 m R367 m Comparable sales Unit sales RSP inflation Weighted average space growth Trading density R10 382m? R9 449m? Number of stores 36 St
Slide 24: Mr Price Sport highlights
Mr Price Group Limited | Annual Results | March 2010 Independent research: — with regard to sportswear, Mr Price Sport ranks first in respect of spontaneous awareness — division is the best loved brand for both sports and outdoor gear Higher gross margin as a result of improved merchandise performan
Slide 25: Miladys
Mr Price Group Limited | Annual Results | March 2010 Miladys Retail Sales Comparable sales Unit sales RSP inflation Weighted average space growth Trading density R14 158m? R15 361m 7 Number of stores MILADYS
Slide 26: Miladys highlights
Mr Price Group Limited | Annual Results | March 2010 Sales growth in second half of year was 3.0% -5.9% in first half Winner of Ask Afrika Orange Index Award for — best service for second consecutive year Successful test of cosmetics in 16 stores — further rollout underway Expect higher gross profit
Slide 27: Apparel chains results
Mr Price Group Limited | Annual Results | March 2010 2010 2009 vth Retail sales R2.7 bn R2.7 bn 3.3% Retail sales and other income R2.8bn = R2.7 bn 3.3% Comparable sales 4.9% Unit sales (3.5%) RSP inflation 9.1% Weighted average space growth 1,3% Trading density R13 909m? R13 391m* 3.9% Operating ma
Slide 28: Mr Price Home
Mr Price Group Limited | Annual Results | March 2010 oof Mar-08 Mr Price Home
Slide 29: Mr Price Home sales growth
Mr Price Group Limited | Annual Results | March 2010 Apr May Jun Jul Aug 2009 Mr Price Home sales growth —— Sheet Street sz
Slide 30: Mr Price Home
Mr Price Group Limited | Annual Results | March 2010 Mr Price Home Retail sales Comparable sales Unit sales RSP inflation Weighted average space growth Trading density R12 925 Number of stores
Slide 31: Mr Price Home Highlights
Mr Price Group Limited | Annual Results | March 2010 Highlights Per AMPS number of shoppers increased by 9% compared to AMPS universe increase of 3% Independent Bateleur Khanya research — the division is the most loved and most frequented _ homewares retailer in RSA . Mr Price Home named “Top Homewa
Slide 32: Sheet Street
2010 2009 Retail sales R846 m R807 m Comparable sales Unit sales RSP inflation Weighted average space growth Trading density R16 715m? R16 502m? Number of stores 238 244
Slide 33: Sheet Street Highlights
Mr Price Group Limited | Annual Results | March 2010 Highlights Improvement in comparable sales in second half of year to 4.6% (vs. first half of -0.5%) Improvement in merchandise planning through Project Redgold resulted in stock levels 28% lower than last year Independent Bateleur Khanya research
Slide 34: Mr Price International
Mr Price Group Limited | Annual Results | March 2010 Mr Price International Ghana Kenya Malawi Mauritius Mozambique Tanzania Uganda Zambia Saudi Arabia
Slide 35: Prospects - Economy
Mr Price Group Limited | Annual Results | March 2010 Prospects - Economy Uplift in consumer confidence per BER — single biggest increase between two consecutive quarters in five years Index is now at a slightly higher level than it was two years ago, prior to plunging Indicates willingness to spend,
Slide 36: March 2010
Mr Price Group Limited | Annual Results | March 2010 performance achieved in th through initiatives undertal the year , the recovery prospects of the divisions — hardest hit by the recession
Slide 37: Focus Going Forward
Mr Price Group Limited | Annual Results | March 2010 Focus Going Forward Further im Accelerating recc performing at opti Continue to capitalists growth in the appare Development of a robust internation. accelerate growth . Considering new business concepts identifying potential acquisitions
Slide 38: Summary of divisional statistics
Please press enter for a summary of divisional statistics J) (FAY Raa > BEE: Ts
Slide 39: Divisional Performance Indicators
Divisional Performance Indicators Mr Price Miladys Mr Price Sport Apparel Mr Price Home __ Sheet Street Retail sales (R'm) - incl. International March 2010 5,246 1,028 437 6711 1,897 846, March 2009 4,527 1,041 367 5,935 1,849 807 % change 15.9 (1.3) 19.1 13.1 26 49 Retail sales (R'm) - excl. Intern