Shoprite Holdings Limited · JSE:SHP

Shoprite — Investor Presentation (February 2020)

11 slides from Shoprite's investor presentation, Feb 18, 2020

  1. Slide 1: IFRS 16 Briefing

    IFRS 16 BRIEFING 18 FEBRUARY 2020

  2. Slide 2: IFRS 16 - Basic Principles

    IFRS 16 - BASIC PRINCIPLES ● The Group has adopted IFRS 16 retrospectively on 1 July 2019 in order to provide greater comparability. ● The results for the year ended 30 June 2019 have been restated with an opening retained earnings adjustment on 2 July 2018. ● IFRS 16 recognises lease obligations in

  3. Slide 3: IAS 17 versus IFRS 16

    Example: Example: Statement of financial Statement of comprehensive position income IAS 17 IFRS 16 IAS 17 VERSUS IFRS 16 3

  4. Slide 4: Group Lease Profile

    GROUP LEASE PROFILE ● On 30 June 2019 the Group had 2 095 qualifying Present value maturity analysis of lease liability - Rm (30 Jun 19) property leases under IFRS 16. ● The maturity profile of the lease impacts the interest charge on the statement of comprehensive income. ● Interest charged on the l

  5. Slide 5: Pre- and Post IFRS 16 Lease Liability

    PRE- AND POST IFRS 16 LEASE LIABILITY Rm 5

  6. Slide 6: Impact on Profit Before Tax

    IMPACT ON PROFIT BEFORE TAX Rm 6

  7. Slide 7: Forex and Capital Items

    FOREX AND CAPITAL ITEMS ● The R458 million foreign currency impact arises from the Group’s foreign currency lease exposure. ● Net investment hedge accounting will be applied from the start of the 2020 financial year to reduce this impact. ● IAS 36: Impairment of assets (IAS 36) requires impairment te

  8. Slide 8: Impact on Performance Measures

    IMPACT ON PERFORMANCE MEASURES Jun 2019 IFRS 16 Jun 2019 Reported Impact Restated Net debt (Rm) 8 123 21 478 29 601 Net asset value (Rm) 26 177 -3 970 22 207 Invested capital (Rm) 42 007 17 508 59 515 Return on invested capital (%) 11.0 -1.6 9.4 Return on average shareholders 12.0 -5.0 7.0 equity (%

  9. Slide 9: Impact on Performance Measures

    IMPACT ON PERFORMANCE MEASURES Jun 2019 IFRS 16 Jun 2019 Reported Impact Restated EBITDA (Rm) 9 531 3 342 12 873 Trading profit (Rm) 6 876 1 703 8 579 Trading profit margin (%) 4.6 1.1 5.7 Operating profit (Rm) 6 911 829 7 740 Operating profit margin (%) 4.6 0.5 5.1 Definitions: EBITDA: Earnings before i

  10. Slide 10: Impact on Dividend and Cover

    IMPACT ON DIVIDEND AND COVER Jun 2019 IFRS 16 Jun 2019 Reported Impact Restated Diluted HEPS (cents) 779.9 -81.4 698.5 Diluted HEPS excl. hyperinflation 637.2 -83.8 553.4 Dividend per share (cents) 319.0 - 319.0 Annual dividend cover (times) adjusted 2.0 -0.3 1.7 Definitions: HEPS: Headline earnings p

  11. Slide 11: Thank You | Questions

    THANK YOU | QUESTIONS

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