Super Retail Group Limited · ASX:SUL
Super Retail — Shareholder Meeting (October 2017)
35 slides from Super Retail's shareholder meeting presentation, Oct 23, 2017
Slide 1: 2017 Annual General Meeting
2017 Annual General Meeting 23 October 2017
Slide 2: Chairman’s Presentation
Chairman’s Presentation Robert Wright 23 October 2017
Slide 3: Sales and EBIT Trends
Sales and EBIT Trends Reported Sales ($m) 2,422 2,466 2,112 2,239 2,020 1,654 938 1,092 715 829 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 Reported Total Segment EBIT ($m) 207.3 172.3 182.6 170.2 175.3 140.7 87.5 45.7 55.1 65.8 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Jun
Slide 4: Group Net Profit after Tax
Group Net Profit after Tax 2016/17 2015/16 Change on $m $m PCP Normalised Net Profit after Tax (NPAT) 135.8 108.6 25.0% Other items not included in Normalised NPAT (34.0) (45.8) - Profit attributable to owners – continued operations 101.8 62.8 62.1% 4
Slide 5: Long Term Shareholder Returns
Long Term Shareholder Returns 5
Slide 6: Group Cash Flow
Group Cash Flow 2016/17 2015/16 Change on $m $m PCP Operating Cash Flow 234.5 159.2 47.3% Capital Expenditure (101.2) (79.9) 26.7% Financing Cash flows (129.0) (77.0) 67.5% Net Cash Flow 4.3 2.3 87.0% 6
Slide 7: Dividend Per Share Trends
Dividend Per Share Trends Reported DPS (c) 46.5 41.5 40.0 40.0 38.0 32.0 29.0 21.5 18.0 13.0 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 7
Slide 8: Chairman’s Presentation
Chairman’s Presentation Robert Wright 23 October 2017
Slide 9: Group Managing Director & Chief Executive Presentation
Group Managing Director & Chief Executive Presentation Peter Birtles 23 October 2017
Slide 10: Contents
Contents 2016/17 Financial Results 2017/18 Trading Update Group Strategy
Slide 11: Group Highlights
Group Highlights • Total Group sales of $2.5 billion up by 4.1% on a LFL basis • Total Segment EBIT of $207.3 million up by 18.3% on pcp • Normalised NPAT of $135.8 million up by 25.0% on pcp • Operating cash flow of $234.5 million up by $75.3 million on pcp • Full year dividend of 46.5 cents per sh
Slide 12: Performance Trends
Performance Trends Team Team Engagement Safety Team Retention Lost Time Injury Frequency Rate 68% 71% 71% 75% 75% 74% 13.2 8.8 6.3 Jun 15 Jun 16 Jun 17 Jun 15 Jun 16 Jun 17 Jun 15 Jun 16 Jun 17 Customer Average Net Active Club Customer Promoter Score Members (m) Transactions (m) 36.9 43.1 53.5 4.5 5
Slide 13: Segment Results
Segment Results 2016/17 2015/16 Sales Segment EBIT Sales Segment EBIT $m $m $m $m Auto Segment 955.9 111.0 922.8 104.6 Leisure Segment 553.5 25.4 581.9 18.6 Sports Segment 949.2 91.3 910.2 77.8 Group & 7.2 (20.4) 7.3 (25.7) Unallocated Total Segment 2,465.8 207.3 2,422.2 175.3 Result Segment Results
Slide 14: Segment Results
Segment Results 2016/17 2015/16 Sales Segment EBIT Sales Segment EBIT $m $m $m $m Auto Segment 955.9 111.0 922.8 104.6 Leisure Segment 553.5 25.4 581.9 18.6 Sports Segment 949.2 91.3 910.2 77.8 Group & 7.2 (20.4) 7.3 (25.7) Unallocated Total Segment 2,465.8 207.3 2,422.2 175.3 Result Segment Results
Slide 15: Segment Results
Segment Results 2016/17 2015/16 Sales Segment EBIT Sales Segment EBIT $m $m $m $m Auto Segment 955.9 111.0 922.8 104.6 Leisure Segment 553.5 25.4 581.9 18.6 Sports Segment 949.2 91.3 910.2 77.8 Group & 7.2 (20.4) 7.3 (25.7) Unallocated Total Segment 2,465.8 207.3 2,422.2 175.3 Result Segment Results
Slide 16: Group Cash Flow
Group Cash Flow 2016/17 2015/16 $m $m Operating cash flow 264.8 184.4 (pre store set up investment) Store set up investment (30.3) (25.2) Operating cash flow 234.5 159.2 Stores (64.7) (56.1) Other capital expenditure (36.5) (23.8) Investing cash flow (101.2) (79.9) Dividends & interest (104.0) (100.
Slide 17: Group Balance Sheet
Group Balance Sheet June 17 June 16 $m $m Inventory - Auto Retailing 187.7 188.7 - Leisure Retailing 126.9 145.8 - Sports Retailing 164.9 162.7 - Group & Unallocated 2.0 4.7 Total inventory 481.5 501.9 Trade and other payables (253.7) (251.1) Net inventory investment 227.8 250.8 Property, Plant and
Slide 18: Contents
Contents 2016/17 Financial Results 2017/18 Trading Update Group Strategy
Slide 19: 2017/18 Trading Update
2017/18 Trading Update Auto Retailing • Sales growth in the first 16 weeks of 2017/18 circa 6% (LFL sales growth circa 4%) • Auto categories performing solidly with Tools categories delivering strong growth cycling competitive clearance activity in the prior comparative period • SCA store developmen
Slide 20: 2017/18 Trading Update
2017/18 Trading Update Sports Retailing • Sales growth in the first 16 weeks of 2017/18 circa 5% (LFL sales growth circa 2%) • 63 Amart Sports stores converted to Rebel – remaining five stores will be converted by 28 October • Store development: plan to open three Rebel stores Group • Planned capita
Slide 21: Contents
Contents 2015/16 Financial Results 2016/17 Trading Update Group Strategy
Slide 22: Retail is a people business - It all starts with our team
Retail is a people business ‐ It all starts with our team RETURN ON CAPITAL DRIVING BUSINESS IMPROVING IMPROVING ASSET GROWTH PROFITABILITY UTILISATION DELIVERING A DIFFERENTIATED ENGAGING CUSTOMER OFFER DEVELOPING THE REQUIRED BUSINESS CAPABILITIES DEVELOPING THE RIGHT LEADERSHIP AND ATTRACTING, DE
Slide 23: Strategic context
Strategic context Forces Increasing Evolving Global Changing impacting Digitalisation Customer Business Competitors Workforce retail Power Models 23
Slide 24: Strategic context
Strategic context Forces Increasing Evolving Global Changing impacting Digitalisation Customer Business Competitors Workforce retail Power Models • Lower utility of consumption • Less time for shopping • More informed and connected – changing media consumption • Expect increasing relevance and perso
Slide 25: Strategic context: Strategic Options for Traditional Retailers
Strategic context Strategic Options for Traditional Retailers The ‘middle ground’ is increasingly challenging. Niche or Best Price Middle Ground Luxury Real Specialism 25
Slide 26: Strategic context: Implications for Super Retail Group
Strategic context Implications for Super Retail Group Historical levers of differentiation (range and price) no longer enough Building a stronger emotional connection with customers is critical – built around their passions for their leisure activities We have a significant advantage through c
Slide 27: Vision
Vision OUR VISION Inspiring you to live your passion PASSIONATE CUSTOMERS HIGH INVOLVEMENT CATEGORIES PASSIONATE TEAM MEMBERS 27
Slide 28: Group Strategy
Group Strategy Growing businesses in high involvement categories OUR Engaging capable team members who share our STRATEGY customers’ passions Solutions that engage and inspire Building a world class omni-retail organisation Participating in high involvement categories mean that we can win by connect
Slide 29: How we can win…..
How we can win….. INSPIRE EXPERIENCE Inspiring our communities Providing outstanding with our passion service and expertise OUR CUSTOMERS SOLUTIONS Determining the best solution for your needs Our focus is on helping our customer catch the fish they’ve always wanted to… …not just to sell them the fi
Slide 30: How we can win…..
How we can win….. INSPIRE EXPERIENCE Penrith Customer ‘Women in sport’ FISHO app Team Experts Experience Centre SOLUTIONS Fitment services Product innovation 30
Slide 31: Key initiatives – investing in customer experience
Key initiatives – investing in customer experience • Click and Collect OMNI • Customer delivery and collection options • New web platform for all websites DIGITAL • Customer engagement apps – BCF trialling FISHO • New stores – potential for up to 800 stores STORES • New formats • In store services –
Slide 32: Key initiatives – building business capability
Key initiatives – building business capability • Analytics CUSTOMER INSIGHT • Net Promoter Score • Direct Marketing • Private Brand profitability PRIVATE BRANDS • Increasing share of sales • Build on top quintile engagement TEAM CAPABILITY AND • Product to customer centricity ENGAGEMENT • Focus on l
Slide 33: Key initiatives – delivering business efficiency
Key initiatives – delivering business efficiency • Review of the Group wide operating model to: OPERATING o build a successful omni-retail organisation MODEL o drive efficiency in Group wide operations • Division – cycling impact of Ray’s Outdoors closure LEISURE • BCF – space productivity opportuni
Slide 34: Factors underpinning confidence in our strategy
Factors underpinning confidence in our strategy Customers in the Auto, Leisure, Customers want community, Customer Needs Sports categories want more than expertise, inspiration, innovation and and Wants range, price and convenience solution Customers want to shop in the Click and collect presents a
Slide 35: 2017 Annual General Meeting
2017 Annual General Meeting 23 October 2017
Super Retail Group — Shareholder Meeting (October 2017) on 6ix