Super Retail Group Limited · ASX:SUL
Super Retail — Shareholder Meeting (October 2016)
31 slides from Super Retail's shareholder meeting presentation, Oct 24, 2016
Slide 1: 2016 Annual General Meeting
For personal use only 2016 Annual General Meeting 24 October 2016
Slide 2: Chairman's Presentation
For personal use only Annual General Meeting – Chairman’s Presentation Robert Wright 24 October 2016
Slide 3: Performance Trends: Sales and EBIT
Performance Trends Reported Sales ($m) For personal use only 2,422 2,112 2,239 2,020 1,654 938 1,092 715 829 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 Reported Total Segment EBIT ($m) 172.3 182.6 175.3 170.2 140.7 87.5 55.1 65.8 45.7 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Jun
Slide 4: Performance Trends: Total Shareholder Return
Performance Trends 182% Cumulative Total Shareholder Return (%) For personal use only 69% 76% 53% 37% 16% 15% 3% Jun 07 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 -26% -42% Value of $1000 invested on 30 June 2006 Jun 06 Jun 07 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun
Slide 5: Group Results
Group Results For personal use only 2015/16 2014/15 Change on $m $m PCP Normalised Net Profit after Tax (NPAT) 108.6 106.3 2.2% Other items not included in Normalised NPAT (45.8) (25.2) - Profit attributable to owners – continued operations 62.8 81.1 (22.6%) 5
Slide 6: Group Results: Cash Flow
Group Results For personal use only 2015/16 2014/15 Change on $m $m PCP Operating Cash Flow 197.1 182.0 8.3% (excluding week 53 net payments) Capital Expenditure (79.9) (71.9) 11.1% Financing Cash flows (77.0) (121.1) NA Net Cash Flow 2.3 (11.0) NA 6
Slide 7: Performance Trends: Reported DPS
Performance Trends Reported DPS (c) For personal use only 41.5 40.0 40.0 38.0 32.0 29.0 21.5 18.0 13.0 10.5 Jun 07 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 7
Slide 8: Group MD & CEO Presentation
For personal use only Annual General Meeting – Group MD & CEO Presentation Peter Birtles 24 October 2016
Slide 9: Contents
For personal use only Contents 2015/16 Financial Results 2016/17 Trading Update Group Strategy
Slide 10: Group Results
Group Results 2015/16 For personal use only Change on PCP $m Total Sales 2,422.2 8.2% Total Segment EBITDA 245.7 6.4% Total Segment EBIT 175.3 3.0% Normalised NPAT 108.6 2.2% Operating Cash Flow 159.2 ($22.8m) Net External Debt 400.2 $21.3m Dividend 41.5c 1.5c 10
Slide 11: Performance Trends: Team and Customer
For personal use only Performance Trends Team Team Engagement Safety Team Retention Lost Time Injury Frequency Rate 68.0 71.0 75% 75% 13.2 6.8 Jun 15 Jun 16 Jun 15 Jun 16 Jun 15 Jun 16 Customer Average Net Active Club Customer Promoter Score (%) Members (m) Transactions (m) 4.5 42.8 44.8 43.1 3.9 36
Slide 12: Segment Results
For personal use only Segment Results 2015/16 2014/15 Sales Segment EBIT Sales Segment EBIT $m $m $m $m Auto Segment 922.8 104.6 854.3 96.0 Leisure Segment 581.9 18.6 543.2 32.3 Sports Segment 910.2 77.8 835.0 65.6 Group & Unallocated 7.3 (25.7) 6.2 (23.7) Total Segment Result 2,422.2 175.3 2,238.7
Slide 13: Segment Results
For personal use only Segment Results 2015/16 2014/15 Sales Segment EBIT Sales Segment EBIT $m $m $m $m Auto Segment 922.8 104.6 854.3 96.0 Leisure Segment 581.9 18.6 543.2 32.3 Sports Segment 910.2 77.8 835.0 65.6 Group & Unallocated 7.3 (25.7) 6.2 (23.7) Total Segment Result 2,422.2 175.3 2,238.7
Slide 14: Leisure Performance Plan Update
Leisure Performance Plan Update BCF For personal use only 55 1st half 2nd half Stores LFL Sales growth 3.1% 8.2% Gross margin vs -3.6% -1.2% pcp EBITDA vs pcp -$6.2m +$0.6m EBITDA margin vs pcp -3.5% -0.9% 17 Stores 14
Slide 15: Segment Results
For personal use only Segment Results 2015/16 2014/15 Sales Segment EBIT Sales Segment EBIT $m $m $m $m Auto Segment 922.8 104.6 854.3 96.0 Leisure Segment 581.9 18.6 543.2 32.3 Sports Segment 910.2 77.8 835.0 65.6 Group & Unallocated 7.3 (25.7) 6.2 (23.7) Total Segment Result 2,422.2 175.3 2,238.7
Slide 16: Segment Results
For personal use only Segment Results 2015/16 2014/15 Sales Segment EBIT Sales Segment EBIT $m $m $m $m Auto Segment 922.8 104.6 854.3 96.0 Leisure Segment 581.9 18.6 543.2 32.3 Sports Segment 910.2 77.8 835.0 65.6 Group & Unallocated 7.3 (25.7) 6.2 (23.7) Total Segment Result 2,422.2 175.3 2,238.7
Slide 17: Group Cash Flow
Group Cash Flow 2015/16 2014/15 For personal use only $m $m Operating cash flow 184.4 196.2 (pre store set up investment) Store set up investment (25.2) (14.2) Operating cash flow 159.2 182.0 Stores (56.1) (38.8) Other Capex (23.8) (33.1) Investing Cash flow (79.9) (71.9) Dividends & interest (100.3
Slide 18: Group Balance Sheet
Group Balance Sheet Jun 16 Jun 15 For personal use only $m $m Inventory - Auto Retailing 188.7 183.3 - Leisure Retailing 145.8 153.8 - Sports Retailing 162.7 161.8 - Group & Unallocated 4.7 6.7 Total Inventory 501.9 505.6 Trade and other payables (251.1) (268.6) Net inventory investment 250.8 237.0
Slide 19: Contents
For personal use only Contents 2015/16 Financial Results 2016/17 Trading Update Group Strategy
Slide 20: 2016/17 Trading Update: Auto and Leisure Retailing
For personal use only 2016/17 Trading Update Auto Retailing • LFL sales growth in the first 16 weeks of 2016/17 circa 2.5% • Auto categories performing solidly but Tools categories impacted by competitive clearance activity, which is expected to conclude in December • SCA store development: plan to
Slide 21: 2016/17 Trading Update: Sports and Group
For personal use only 2016/17 Trading Update Sports Retailing • LFL sales growth in the first 16 weeks of 2016/17 circa 4.5% • Store development: plan to open two new Rebel stores and 12 Amart Sports stores (including 5 conversion of Rays Outdoors sites) Group • Group Unallocated costs to be circa $
Slide 22: Contents
For personal use only Contents 2015/16 Financial Results 2016/17 Trading Update Group Strategy
Slide 23: Changing Retail Market
Changing Retail Market How are external market forces shaping our strategy? For personal use only Forces Evolving Customer Workforce impacting on Globalisation Digitalisation Business Power Demographic Retail Models Historical levers of differentiation (range and price) will no longer succeed Buildi
Slide 24: Our Strategic Roadmap
Our Strategic Roadmap For personal use only OUR VISION Inspiring you to live your passion To provide solutions and engaging experiences that enable our OUR PURPOSE customers to make the most of their leisure time To achieve To achieve higher To provide To be one of the highest customer returns to ou
Slide 25: Our Strategic Roadmap: Pillars
Our Strategic Roadmap For personal use only OUR VISION Inspiring you to live your passion To provide solutions and engaging experiences that enable our OUR PURPOSE customers to make the most of their leisure time Customer Solutions that engage Leading Private and Understanding and and inspire our Ex
Slide 26: Strategic Pillars
Strategic Pillars TODAY 5 YEAR PLAN For personal use only Market leading retail brands in all Group wide focus on driving our categories (apart from outdoor customer endorsement through adventure) team and customer engagement Solutions that engage and Strong portfolio of existing stores Opening circ
Slide 27: Strategic Pillars: Customer Understanding and Private Brands
Strategic Pillars TODAY 5 YEAR PLAN For personal use only Deep understanding of our target Growing active membership and customers across all categories lifetime value Customer Understanding Large active membership of loyalty Strengthening in-house capabilities programs: to generate insights to impr
Slide 28: Strategic Pillars: Supply Chain and Team
Strategic Pillars TODAY 5 YEAR PLAN For personal use only Distribution centre and freight $20m cost savings driven through network to support business plans productivity, freight efficiencies and are built and operational sports integration Agile and Efficient Supply Best of breed warehouse Further
Slide 29: Strategic Pillars: Sustainable and Efficient Foundations
Strategic Pillars TODAY 5 YEAR PLAN For personal use only Strong cost control disciplines $10m group wide procurement and across the Group productivity savings program Strong, Sustainable and Strong performance framework Developing performance and IT infrastructure that supports management framework
Slide 30: Delivering our Financial Targets
Delivering our Financial Targets 5 Year Target Store Numbers LFL Growth EBIT Margin Pre Tax ROC % * For personal use only Auto 350 >3% PA 12% > 50% Leisure 220 >3% PA 11% > 30% Sports 230 >4% PA 11% > 30% * excludes acquired goodwill and brand names Opportunities Challenges • Growing store numbers t
Slide 31: 2016 Annual General Meeting
For personal use only 2016 Annual General Meeting 24 October 2016
Super Retail Group — Shareholder Meeting (October 2016) on 6ix