Super Retail Group Limited · ASX:SUL
Super Retail — Super Cheap Auto Group — H1 FY2006 Earnings Presentation
19 slides from Super Retail's earnings presentation, Feb 23, 2006
Slide 1: Super Cheap Auto Group
Super Cheap Auto Group Results for the 26 weeks to 31 December 2005 23 February 2006
Slide 2: Group Results
Group Results — 26 Weeks to 31 December 2005 * Strong underlying profit performance driven by good $m Reported Underlying control of gross margins and costs change change + Strong cash flow arising from on py on py inventory reductions ; * Net Debt reduced by $4.4m Sales 264.7 19.3% 14.3% despite $2
Slide 3: Super Cheap Auto Results
Super Cheap Auto Results - 26 weeks to 31 December 2005 + — Store opening schedule on track 2005 % change ~ 225 Stores at 31 December 2005 $m on py ~ 14 stores opened during 1* half - 9 in Australia and 5 in New Zealand Sales 246.2 11.09 * Stronger performance across Oils, Batteries, - Tota : . . %
Slide 4: BCF Results
BCF Results - 26 weeks to 31 December 2005 + Business launched as BCF on 15 October 2005 2005 $m - 4 stores traded under Camp Mart brand from start of the half until BCF taunch Sales 18.5 * 12 BCF stores at 31 December 2005 + Performance across the business better Gross margin 35.5% than initial pro
Slide 5: Group Cash Flow
Group Cash Flow + Strong cash flow performance driven by the reduction in net inventory investment per store in the SCA business — This has delivered a cash flow benefit of $12.4m + | When comparing against 2004, the 2005 Cash flow has also received a net benefit of circa $6m from timing differences
Slide 6: Group Balance Sheet
Group Balance Sheet + SCA average inventory per store reduced Dec June from $568k at June to $511k at December 2005 2005 ~ Improved inventory management $m $m resulting from supply chain focus and investment in forecasting and | f replenishment systems nventory ~ Has been achieved whilst improving -
Slide 7: Group Key Financial Ratios
Group Key Financial Ratios * Investment in BCF launch and Bathurst investment has impacted on reported financial ratios + — Underlying performance is positive + AIFRS has had a minor detrimental impact on the ratios due to the change in accounting for fixed rate lease arrangements + Alf ratios calcu
Slide 8: Impact of AIFRS
Impact of AIFRS Explanation of AIFRS adjustments: . Lease make good costs ~ under AIFRS projected costs to be incurred at the end of a lease are expensed over the life of the lease Goodwill amortisation is not allowed under AIFRS ~ Goodwill is subject to an impairment testing with any diminution in
Slide 9: Group Strategy Update
Super Cheap Auto Group Group Strategy Update
Slide 10: Group Strategy Update
Group Strategy Update * Driving LFL sales growth in Supercheap Auto * Expansion of the Supercheap Auto network * Expansion of BCF network ¢« Developing Procurement and Supply Chain capabilities * Developing our people 10
Slide 11: Driving LFL Sales Growth in SCA
Driving LFL Sales Growth in SCA * Investigating new category opportunities * Developing local ranging capabilities * Focus on enhancing product knowledge and selling skills across our team « Drive to reduce product quality issues with some imported lines * Trialing new store layout + Targeted refurb
Slide 12: Expansion of SCA Network
Expansion of SCA Network * 227 stores trading today * Expect 233 stores by 30 June * Market opportunities exist for 300+ stores * Current format may have potential for 250 to 270 stores « Investigating opportunities for alternative formats — Convenience model — Extended range model 12
Slide 13: Expansion of BCF Network
Expansion of BCF Network * Performance to date has reinforced confidence in potential for at least 60 stores * 13 stores trading today + Will open between 10 to 15 new stores in 2006/07 « New Stores will be targeted towards NSW, WA and Qld « Business will investigate acquisition opportunities if org
Slide 14: Developing Procurement and Supply Chain Capabilities
Developing Procurement and Supply Chain Capabilities Establishing container consolidation operation managed by third party in Ningbo - China Developing domestic logistics facilities — Expanding Melbourne third party DC — Rationalising third party facilities in Brisbane — Expanding New Zealand DC Cat
Slide 15: Developing our People
Developing our People « New Senior Management responsibilities now in place — David Ajala — Chief Operating Officer - SCA + Joined SCA in July 2005 + Extensive merchandise and retail management experience within Coles Supermarkets — Steve Doyle — Chief Operating Officer — BCF + Joined SCA in May 200
Slide 16: Outlook for Full Year FY06
Super Cheap Auto Group Outlook for Full Year FY06
Slide 17: Outlook for Full Year FY06
Outlook for Full Year FY06 Super Cheap Auto + Full year sales expected to be between $490 and $495m * Year on year savings in advertising expenditure in the 2° half * AIFRS - Full year impact will be circa $2m additional occupancy costs * EBIT margin expected to be circa 6.8% for the full year (post
Slide 18: Appendices
Super Cheap Auto Group Appendices
Slide 19: Appendix 1: Underlying Group Results
Appendix 1: Underlying Group Results - 26 weeks to 31 December 2005 + The Group’s reported results have been impacted by long term business investment % + $4.0m of BCF set up costs: EBIT 2005 2004 change ~ Concept development costs $m $m on py ~ Pre launch operating costs ~ Store set up costs Report
Super Cheap Auto Group — H1 FY2006 Earnings Presentation on 6ix