Spar Group Limited · JSE:SPP
Spar — The SPAR Group — Non-Deal Roadshow (October 2007)
19 slides from Spar's roadshow presentation, October 2007
Slide 1: Financial Overview
Financial Overview R million 2007 2006 % Change Turnover 21 704 17 009 27.6 Operating profit 775 603 28.5 PAT 523 408 28.3 HEPS (cents) 312.3 240.0 30.1 Return on equity 52.3 49.6 Dividend 185.0 123.0 50.4 (cents)
Slide 2: Financial Overview: Turnover
Financial Overview Turnover (Rm) 2007 2006 % Change Spar 19 789 15 615 26.7 Build it 1 915 1 394 37.3 Ratio 8.8% 8.2% TOTAL 21 704 17 009 27.6 Liquor sales (TOPS & SPAR) 919 620 48.2 Ratio 4.2% 3.6%
Slide 3: Financial Overview: Margins
Financial Overview Margins (as % turnover) 2007 2006 Gross margin 8.2 8.4 Other income 0.9 0.9 Expenses (5.5) (5.8) Net margin 3.6 3.5
Slide 4: Turnover growth reconciliation
Financial Overview Turnover growth reconciliation % Spar retail growth - organic 15.2 new stores 5.3 20.5 TOPS / Build it “excess” growth 2.6 Improved loyalty / new suppliers 4.5 27.6
Slide 5: Cash flow (Rm)
Financial Overview Cash flow (Rm) % Cash flow from operations 1 387 Capex facilities (155) vehicles (129) IT (30) Loans/investments (97) Share purchases (net) (81) Tax (238) Dividends (246) Other 3 Net cash inflow 413
Slide 6: Retail Performance
Retail Performance Retail Stores 2006 2007 Change Superspar 145 172 +27 Spar 478 477 1 Kwikspar 176 161 15 799 810 +11 Sq meters 000’s 728 780 +7,2% Remodels 122 129 Tops 216 287 +71 Build it 221 243 +22
Slide 7: SPAR Sales (Rbn) & Market Share (%)
SPAR Sales (Rbn) & Market Share (%) 26.9% 29.0 30.0 26.4% 24.0 25.0 20.0 24.6% 15.0 11.0 20% 10.0 15% 5.0 2.0 5.0 0.0 1990 1995 2000 2006 2007
Slide 8: Distribution Update: South Rand
Distribution Update South Rand 32000 m² 229 SPAR 68 TOPS 49 Build it
Slide 9: Distribution Update: North Rand
Distribution Update North Rand 35000 m² 180 SPAR 61 TOPS 41 Build it
Slide 10: Distribution Update: Western Cape
Distribution Update Western Cape 21000 m² 125 SPAR 48 TOPS 31 Build it
Slide 11: Distribution Update: Kwazulu Natal
Distribution Update Kwazulu Natal 39000 m² 152 SPAR 66 TOPS 64 Build it
Slide 12: Distribution Update: Eastern Cape
Distribution Update Eastern Cape 24000 m² 89 SPAR 33 TOPS 34 Build it
Slide 13: Distribution Centres
Distribution Centres 2006 2007 Trucks 207 245 Trailers 216 250 Cases despatched +13% +14%
Slide 14: Looking forward …
Looking forward … • Trading environment • Key focus areas
Slide 15: Trading Environment
Trading Environment • Business confidence • Economic fundamentals BOP remains a concern interest rates upward pressure on inflation • LSM shift … outlook good for cash retail
Slide 16: Key Focus Areas
Key Focus Areas Retail • Growth new stores * SPAR * TOPS / BUILD IT
Slide 17: Key Focus Areas…
Key Focus Areas… Retail Stores Change 2007 in 2008 Superspar 172 +25 Spar 477 +5 Kwikspar 161 5 810 +25 Sq metres 000’s 780 +5% Remodels 129 +135 Tops 287 +40 Build it 243 +30
Slide 18: Key Focus Areas
Key Focus Areas Retail • Growth - new stores * SPAR * TOPS / BUILD IT - existing stores * revamps * hot spots in store • Good to great in fresh • Marketing • Technology • Transformation
Slide 19: Distribution
Distribution • Executive management changes • Warehouse facilities • Supply chain efficiency