Super Group Limited · JSE:SPG
Super — H1 2023 Earnings Presentation
31 slides from Super's earnings presentation, Feb 21, 2023
Slide 1: Results Presentation for the six months ended 31 December 2022
RESULTS PRESENTATION for the six months ended 31 December 2022 21 February 2023
Slide 2: Overview
OVERVIEW Peter Mountford
Slide 3: HY2023 Performance Highlights
HY2023 PERFORMANCE HIGHLIGHTS Managing extreme market volatility to deliver an outstanding performance Revenue increased EBITDA increased Operating profit Profit before taxation by 34.6% to by 24.2% to increased by 26.1% to increased by 29.0% to R29.12 billion R4.11 billion R2.00 billion R1.58 billi
Slide 4: Comparison with Pre-Covid Performance
COMPARISON WITH PRE-COVID PERFORMANCE Surpassing pre-covid performance levels Revenue Profit before tax EPS HEPS increased by 54.4% increased by 76.7% increased by 76.3% increased by 62.8% R29.12 billion R1.58 billion 250.3 cents 248.3 cents Vs Vs Vs Vs R18.86 billion R0.89 billion 142.0 cents 152.5
Slide 5: The Trading Environment
THE TRADING ENVIRONMENT Proven ability to navigate volatile operating conditions Super Group’s operations in South Africa, Australasia, Europe and the United Kingdom have weathered the impact of the far reaching economic slowdown, leveraging the volatile conditions to the Group’s advantage. Led by a
Slide 6: Divisional Reviews
DIVISIONAL REVIEWS Peter Mountford
Slide 7: International vs South African Operations
INTERNATIONAL VS SOUTH AFRICAN OPERATIONS Revenue contribution per region 8% 1% • Super Groups international operations contributed 51% of the sales revenue (December 2021: 50%) and 55% of 18% operating profit (December 2021: 55%) 49% • SG Fleet and Dealerships UK now account for 42% of revenue and
Slide 8: Segmental Analysis
SEGMENTAL ANALYSIS December 2022 December 2021 Revenue Revenue 39.8% 40.6% 35.3% 37.8% 22.4% 24.1% Operating profit Operating profit 15.1% 18.0% 28.8% 36.5% 48.4% Supply Chain 53.2% Fleet Solutions Dealerships FINAL INTERIM RESULTS RESULTS PRESENTATION PRESENTATION FOR THE FOR THE 6 MONTHS YEAR31 EN
Slide 9: Net Operating Assets and RNOA
NET OPERATING ASSETS AND RNOA The Group’s RNOA for the 6 months ended 31 December 2022 is 10.6% (December 2021: 10.3%) Group WACC is 6.1% (December 2021: 5.7%) 8 528 7 463 7 310 6 699 2 152 2 396 2 001 2 155 1 699 1 478 829 996 HY22 HY23 HY22 HY23 HY22 HY23 HY22 HY23 HY22 HY23 HY22 HY23 SC Africa SC
Slide 10: Supply Chain
SUPPLY CHAIN
Slide 11: Supply Chain Africa
SUPPLY CHAIN AFRICA Highlights Revenue (R’m) 12 871 11 042 • Revenue increased by 48.8% mainly due to: 6 950 - improving volumes, significant new 5 794 business wins and contract renewals in the consumer businesses 8 810 5 921 - improved commodity prices, volume 5 248 increases and stronger transpor
Slide 12: Supply Chain Europe
SUPPLY CHAIN EUROPE Revenue (R’m) Highlights 3 498 3 449 • In Euro-terms, revenue increased by a 1 639 1 746 considerable 28.1%, reflecting the ongoing evolution of the business model to ensure both relevant services and optimised cost structures 2 202 1 859 1 703 • Operational enhancements - such a
Slide 13: Fleet Solutions
LEET -° ~ SOLUTIONS _
Slide 14: Fleet Africa
FLEET AFRICA Highlights Revenue (R’m) 1 076 • Fleet Africa reported a good set of results with 933 an increase in revenue of 8.0% mainly due to: 539 520 - an increase in activity on existing contracts - good growth in ad hoc rental volumes 537 580 413 • Operating profit increased by 12.4% Jun 2021 J
Slide 15: SG Fleet
SG FLEET Highlights Revenue (R’m) • Revenue increased by 26.6% mainly due to: 9 588 - the inclusion of LeasePlan for the full six months 4 900 - strong residual profits on EOL vehicle sales 5 523 2 699 • Operating profit increased by 31.0% 5 936 4 688 • The lack of new vehicle stock continued to 2 8
Slide 16: Dealerships
DEALERSHIPS
Slide 17: Dealerships SA
DEALERSHIPS SA Highlights Revenue (R’m) 9 254 • Revenue growth of 18.3% on the back of 8 234 stronger new vehicle sales and increased 4 757 aftermarket activities 3 953 • New vehicle sales volumes increased by 24.4%, 5 318 4 281 4 497 outperforming NAAMSA growth of 15.6% Jun 2021 Jun 2022 Jun 2023 •
Slide 18: Dealerships UK
DEALERSHIPS UK Highlights Revenue (R’m) • Revenue increased by 46.1% as a result of 10 283 9 993 volume increases and the inclusion of acquisitions 4 947 5 701 • New vehicle sales volumes increased by 67.2% despite ongoing Ford supply constraints 6 271 5 336 4 292 • Used vehicle sales volumes increa
Slide 19: Unaudited Interim Results
UNAUDITED INTERIM RESULTS Colin Brown
Slide 20: Statement of Comprehensive Income
STATEMENT OF COMPREHENSIVE INCOME Six months Six months Highlights ended ended 31 December 31 December 2022 2021 • LeasePlan contribution R’million Unaudited Unaudited Change included for full six months Revenue 29 121.0 21 640.5 34.6% EBITDA 4 111.2 3 309.1 24.2% • Operating margin impacted by one
Slide 21: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION As at As at Highlights 31 December 30 June 2022 2022 R’million Unaudited Audited Change • Capex mainly included Supply Chain vehicle fleets and Non-current assets 35 768.3 33 544.1 6.6% dealership property improvements Property, plant and equipment & ROU assets 10 955
Slide 22: Statement of Financial Position (Continued)
STATEMENT OF FINANCIAL POSITION (CONTINUED) As at Highlights 31 December As at 2022 30 June 2022 R’million Unaudited Audited Change • Net gearing excluding ROU lease liabilities and securitised Total equity 17 554.0 16 927.6 3.7% warehouse borrowings at Fund reserves and provisions 2 021.3 2 280.3 (
Slide 23: Net Borrowings
NET BORROWINGS Net borrowings/ Net borrowings/ Borrowings Cash (cash) (cash) R’million 31 December 2022 31 December 2022 31 December 2022 30 June 2022 Change Africa 6 230.0 (2 509.3) 3 720.7 3 009.7 23.6% United Kingdom 1 322.5 (466.0) 856.5 321.1 166.7% Europe 41.3 (260.9) (219.6) (254.2) (13.6%) A
Slide 24: Statement of Cash Flows
STATEMENT OF CASH FLOWS 31 Dec 31 Dec 2022 2021 Highlights R’million Unaudited Unaudited Change Cash flows from operating activities • Net investment in lease portfolio Operating cash flow 4 058.5 3 322.9 22.1% assets shown separately as part of working capital outflow Working capital outflow (1 934
Slide 25: Statement of Cash Flows (Continued)
STATEMENT OF CASH FLOWS (CONTINUED) 31 Dec 31 Dec 2022 2021 Highlights R’million Unaudited Unaudited Change Cash flows from financing activities • Bought and cancelled 17 415 265 shares for R524 million during the Cash outflow on shares repurchased (524.0) (11.0) Nm period Additional investments in
Slide 26: Prospects
PROSPECTS Peter Mountford
Slide 27: Prospects
PROSPECTS Focused on delivering sustainable growth Super Group’s scale, technological expertise and diversification remain the cornerstones of its consistent ability to successfully navigate volatile operating conditions and the Group expects to deliver good earnings growth and strong cash generatio
Slide 28: Prospects
PROSPECTS Focused on delivering sustainable growth New business, improving volumes and technology-driven efficiencies will position the Supply Chain businesses in both South Africa and Europe for good growth and improved profitability. Fleet Africa will continue to benefit from increased activity le
Slide 29: Appreciation
APPRECIATION Committed to shared value creation Despite the Covid-19 pandemic and the inflationary cost impacts of the Ukraine war and loadshedding in South Africa, Super Group headline earnings per share of 248.3 cents as at December 2022 has grown by a compound growth rate of 17.6% per annum over
Slide 30: Thank you for your interest in Super Group
Thank you for your interest in Super Group Further information available on www.supergroup.co.za Investor Relations Executive: Michelle Neilson michelle.neilson@supergrp.com PETER MOUNTFORD COLIN BROWN Group Chief Executive Officer Group Chief Financial Officer
Slide 31: Disclaimer
DISCLAIMER The financial information pertaining to Super Group Limited’s (Super Group’s) results are exactly as published on SENS in terms of the JSE Limited’s Listings Requirements. This presentation contains certain financial information which has been prepared for illustrative purposes only. The