Slide 1: Super Retail Group Full Year Results
2023 Super Retail Group Full Year Results Authorised for release by the Board of Super Retail Group Limited 17 August 2023 Anthony Heraghty Group Managing Director & Chief Executive Officer
Slide 2: Important information
Important information FY23 comprised a 52-week trading period as compared to 53 weeks for FY22. When reviewing the financial results in this presentation, regard should be had to the following: FY23 and FY22 trading periods Presentation of FY22 financial information FY23 is a 52-week period from 3 J
Slide 3: Contents
CONTENTS • Group highlights • Sustainability and team • Group financial performance and brand highlights • Corporate strategy • Dividends and capital management • FY24 trading update • Appendix SUPER RETAIL GROUP rebel ambassador Mary Fowler rebel are proud partners of the Commbank Matildas 3
Slide 4: Group highlights
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Slide 5: Executive summary
Executive summary In FY23 the Group delivered record sales and higher net profit after tax • Group sales up 7 per cent to $3.8 billion (up 9 per cent adjusted for 53 rd week in pcp)1 • Group like-for-like sales growth of 8 per cent • Group gross margin of 46.2 per cent • Segment PBT up 12 per cent t
Slide 6: Record sales of $3.8 billion
Record sales of $3.8 billion The Group has delivered another year of record sales SALES GROWTH GROUP SALES ($M) BY BRAND SALES ADJUSTED SALES LFL SALES GROWTH GROWTH1 GROWTH (53 WEEKS VS (52 WEEKS VS (52 WEEKS VS 52 WEEKS) 52 WEEKS) 52 WEEKS) 8% 10% 10% 8% 10% 9% 3,803 3,453 3,551 2,710 2,825 1% 3%
Slide 7: Resilient like-for-like sales growth
Resilient like-for-like sales growth The Group achieved 8 per cent LFL sales growth cycling a record year and 6 per cent LFL sales growth in the second half • The Group achieved 11 per cent like-for-like sales growth in H1 LIKE-FOR-LIKE SALES GROWTH • Like-for-like sales growth moderated to 6 per ce
Slide 8: Stable PBT margin
Stable PBT margin Gross margin normalising. CODB as a percentage of sales in FY24 is expected to increase GROUP GROUP CODB AS GROUP PBT GROSS MARGIN A % OF SALES1 MARGIN Maintained above pre Delivered a 60 bps Delivered a 50 bps COVID-19 levels improvement improvement compared to FY22 compared to FY
Slide 9: Margin protection and cost management initiatives in place
Margin protection and cost management initiatives in place Supply Cost of Goods Sold Variable cost Strategic chain (COGS) efficiency plan pricing Sourcing and Store development & Store cost base Capital discipline and procurement operating efficiency normalisation narrowed project focus SUPER RETAIL
Slide 10: Inventory levels have normalised
Inventory levels have normalised Total inventory as a percentage of sales has reverted to pre pandemic levels AVERAGE INVENTORY AS % OF SALES • Total inventory investment was increased during the COVID-19 pandemic to accommodate disruptions to supply chain • Inventory levels have now normalised to 2
Slide 11: Customer highlights
Customer highlights Added over 1 million active club members in the past 12 months ACTIVE CLUB CLUB MEMBER CLUB MEMBER MEMBERS1 NPS % OF SALES 10.3m (UP >1 MILLION) 67 (UP 2) 73% (UP 3%) CLUB MEMBER CLUB MEMBER CLUB MEMBER CLUB MEMBER NPS (UP 2) NPS (UP 3) NPS (UP 5) NPS (DOWN 2) 67 65 71 67 CLUB ME
Slide 12: Store network highlights
Store network highlights Strong pipeline of new store openings and store upgrades in FY24 NEW TARGETED STORES STORE CURRENT OPENED IN OPENINGS IN STORES FY231 FY24 736 24 24 TARGETED TARGETED TARGETED TARGETED STORE STORE STORE STORE OPENINGS OPENINGS OPENINGS 2 OPENINGS 8 2 7 7 TARGETED TARGETED TA
Slide 13: Converting rebel stores to rCX format is generating a step change in sales
Converting rebel stores to rCX format is generating a step change in sales rCX STORE SALES % OF REBEL TOTAL SALES1 18% 12% 6% FY21 (5 stores) FY22 (11 stores) FY23 (15 stores) AVERAGE CHANGE IN KEY STORE METRICS POST rCX CONVERSION FY23 VS FY202 21% >$2,000 >50% INCREASE IN INCREASE IN SALES INCREAS
Slide 14: BCF Townsville superstore
BCF Townsville superstore What the right format can achieve FY20 FY23 $10.8m +112%1 SALES OLD 64 NEW 72 NPS NPS 8,010 >29,000 SKU COUNT SKU COUNT <2 years payback SUPER RETAIL GROUP (1) Based on trading performance in the period between when the Townsville superstore was opened in November 2022 and
Slide 15: Digital and omni-retail highlights
Digital and omni-retail highlights CLICK & Online sales represent 12 per cent of Group sales ONLINE SALES COLLECT GROUP % OF TOTAL % OF ONLINE ONLINE SALES SALES SALES FY23 BRAND SALES BY CHANNEL $445m 12% 48% HOME DELIVERY % OF SALES TOTAL % OF ONLINE COMPLETED IN 4 YEAR CAGR IN GROUP SALES STORE O
Slide 16: Sustainability and team
Sustainability and team SUPER RETAIL GROUP 16
Slide 17: We have an engaged and passionate team
We are committed to further diversity in our leadership and across our organisation1 Our team is highly We are committed to our team’s engaged health, safety and wellbeing 38% Female representation at 81 & 80 >3,300 11.0 senior leadership level2 Engagement survey Team members Total Recordable We hav
Slide 18: Sustainability and team – achievements and key performance measures
Sustainability and team – achievements and key performance measures PEOPLE PLANET 11.0 >3,300 78,411 58% 1,494,200L 125,027 Training hours Diversion rate for Recycled litres of oil Recycled car batteries Total Recordable Team members delivered to more than waste material in through Supercheap throug
Slide 19: Sustainability and team – ratings and credentials
Sustainability and team – ratings and credentials Ratings Workplace Gender Sustainability Equality Agency - WGEA Holder of the WGEA’s Employer of Choice for Gender Equality citation for the second Macquarie’s 2022 ESG Ratings Report – consecutive period. Rated in top quintile of ex-100 ASX companies
Slide 20: Group financial performance and brand highlights
Group financial performance and brand highlights SUPER RETAIL GROUP 20
Slide 21: Group results
Group results FY23 FY22 $m Change Adjusted Change1 (52 weeks) (53 weeks) Total sales2 3,802.6 3,550.9 7.1% 9.1% Total segment EBITDA 767.6 701.8 9.4% 10.5% Segment D&A (329.6) (305.2) 8.0% 8.6% Total segment EBIT 438.0 396.6 10.4% 12.0% Net finance costs (47.4) (47.0) 0.9% 1.7% Normalised segment PB
Slide 22: Segment results
Segment results FY23 FY22 $m (52 weeks) (53 weeks) Segment Sales PBT Sales PBT Supercheap Auto 1,447.9 204.0 1,339.8 176.1 rebel 1,309.1 146.0 1,212.0 141.0 BCF 839.9 51.0 829.7 59.6 Macpac 216.4 28.7 176.8 18.6 Group and (10.7) (39.1) (7.4) (45.7) Unallocated Total 3,802.6 390.6 3,550.9 349.6 SUPER
Slide 23: Supercheap Auto highlights
Supercheap Auto highlights Supercheap Auto is Australia and New Zealand’s favourite specialty automotive parts and accessories retail business1 • Record full year sales • Record club member NPS score • In-store service program undertook a record number of fitments (769,000) • Added more than 550,000
Slide 24: Supercheap Auto sales increased by 8 per cent to $1.45 billion
• Total sales increased by 8 per cent to $1.45 billion (or 10 per cent adjusted for FY23 FY22 Adjusted $m Change the 53rd week in FY22) (52 weeks) (53 weeks) Change1 • Like-for-like sales of 10 per cent reflected growth in transaction volumes and higher average transaction value (ATV) Sales 1,447.9
Slide 25: rebel highlights
rebel highlights rebel is Australia’s leading sporting goods and apparel retailer. Our goal is to inspire all Australians to live their sporting dreams and passion • Record full year sales • Opened four rebel customer experience (rCX) stores bringing total rCX store count to 151 • Top three performi
Slide 26: rebel sales increased by 8 per cent to $1.31 billion
• Total sales increased by 8 per cent to $1.31 billion (or 10 per cent adjusted for the 53rd FY23 FY22 Adjusted week in FY22) $m Change (52 weeks) (53 weeks) Change1 • Like-for-like sales increased by 9 per cent driven by growth in transaction volumes • Performance sports (basketball and football) w
Slide 27: BCF highlights
BCF highlights BCF is Australia’s favourite1 outdoor retailer, with stores in every Australian state and territory • Record sales result with improved sales momentum in H2 • Successfully launched BCF superstore format in Townsville and Kawana • Townsville superstore on track to achieve >$20 million
Slide 28: BCF sales increased by 1 per cent to $840 million
• Total sales increased by 1 per cent to $840 million (or 3 per cent adjusting for the FY23 FY22 Adjusted $m Change 53rd week in FY22) (52 weeks) (53 weeks) Change1 • Like-for-like sales were flat as higher transaction volumes were offset by a modest decline in ATV Sales 839.9 829.7 1.2% 2.6% • Fish
Slide 29: Macpac highlights
Macpac highlights Macpac products are made by adventurers for adventurers. We design products that are functional, technical and robust to help equip outdoor enthusiasts to adventure better • Record full year sales of over $200 million • Delivered above 20 per cent growth in annual customer transact
Slide 30: Macpac sales increased by 22 per cent to $216 million
• Total sales increased by 22 per cent to $216 million (or 27 per cent adjusting for the FY23 FY22 Adjusted $m Change 53rd week in FY22) (52 weeks) (53 weeks) Change1 • Like-for-like sales increased by 24 per cent, driven by strong transaction growth and higher ATV compared to the pcp Sales 216.4 17
Slide 31: Group and unallocated
Group and unallocated • Group and unallocated includes corporate costs not allocated to FY23 FY22 segments and customer, omni, digital and loyalty development costs $m Change (52 weeks) (53 weeks) • Total group and unallocated costs have decreased by $3.9 million compared to the pcp EBIT (34.6) (38.
Slide 32: Group balance sheet
Group balance sheet • Total inventory is $11 million lower compared to the pcp and represents 21 $m 1 Jul 23 2 Jul 22 per cent of sales • The Group’s inventory balance reflects a reduction in volume of inventory Inventory units which has been partly offset by inflation in COGS Supercheap Auto 285.3
Slide 33: Returns, capital ratios and fx
Returns, capital ratios and fx • Statutory EPS of 117 cents and normalised EPS of 121 cents FY23 FY22 Change • The Board has determined to pay a fully franked final dividend of 44 cents per share Normalised EPS (cents) 121.1c 108.1c 12.0% • The Board has also determined to pay a fully franked specia
Slide 34: Group cash flow
Group cash flow • Operating cash flow of $716 million was $376 million above pcp FY23 FY22 $m Change (or $327 million on an adjusted basis)1 and reflects the following: (52 weeks) (53 weeks) - Increased cash receipts from customers as sales increased by Adjusted operating cash flow 716.4 389.81 7 pe
Slide 35: Corporate strategy
Corporate strategy SUPER RETAIL GROUP 35
Slide 36: Our strategy
1 GROW THE FOUR Our strategy CORE BRANDS Growing annual 2 LEVERAGE CLOSENESS TO OUR CUSTOMER customer value PRIMARY VALUE Ensuring organic growth and 3 CONNECTED OMNI-RETAIL SUPPLY CHAIN LEVERS capital discipline 4 Being an SIMPLIFY THE efficient BUSINESS omni-retailer 5 EXCEL IN OMNI-RETAIL EXECUTI
Slide 37: Delivering on our strategy in FY23
Delivering on our strategy in FY23 GROW THE FOUR LEVERAGE CLOSENESS CONNECTED OMNI- SIMPLIFY THE EXCEL IN OMNI- CORE BRANDS TO OUR CUSTOMER RETAIL SUPPLY CHAIN BUSINESS RETAIL EXECUTION Current Focus Areas • 5-year Brand strategies • Active customer base has grown • Supply chain TRIFR continued • Fu
Slide 38: Customer engagement
Customer engagement Ongoing investment on customer engagement via a loyalty platform and one-to-one communication LOYALTY: The loyalty solution will deliver a set of defined engagement capabilities valued by the customers of each brand H1 FY24 H2 FY24 • New loyalty platform and approach launching fo
Slide 39: Enhanced SCA loyalty leveraging new group capability
Enhanced SCA loyalty leveraging new group capability New infrastructure and constant improvement will enhance our loyalty offer. Our goal is to drive higher visitation and/or spend per visit across our member base Loyalty enhancements Work to Date delivering positive outcomes • Relaunched loyalty •
Slide 40: rebel on track to relaunch loyalty program in H1 FY24
rebel on track to relaunch loyalty program in H1 FY24 Exciting new changes coming to rebel’s loyalty program, to deliver member growth and engagement H1 FY24 H2 FY24 Financial impact and accounting treatment • Major launch of rebel active program, • “Test and learn” through targeted offers • The poi
Slide 41: New automated distribution centre
New automated distribution centre • The Group has signed a long-term lease agreement with the Goodman Group for the construction and leasing of a new 65,000 sqm distribution centre (DC), that will be fitted with leading-edge technology, at Truganina (Victoria) • Construction of the new DC, which is
Slide 42: Dividends and capital management
Dividends and capital management SUPER RETAIL GROUP 42
Slide 43: Dividends and capital management
Dividends and capital management • The Group applies the following key principles in relation to dividends and capital management: - Dividend payout policy – pay ordinary dividends equating to 55 per cent to 65 per cent of underlying NPAT, fully franked - Balance sheet – maintain conservative credit
Slide 44: Trading update
Trading update SUPER RETAIL GROUP 44
Slide 45: FY24 trading update
FY24 trading update • Group like-for-like and total sales growth as at week 6 are as follows: Like-for-like sales growth Total sales growth FY24 vs FY23 FY24 vs FY23 Supercheap Auto 3% 4% rebel (1%) 1% BCF (1%) 6% Macpac (9%) (8%) Group 0% 2% • Despite challenging economic conditions, the Group has
Slide 46: Appendix – Performance trends and segment notes
Appendix 1 – Performance trends and segment notes SUPER RETAIL GROUP 46
Slide 47: Segment note FY23
Segment note FY23 SUPER RETAIL GROUP 47
Slide 48: Segment note FY22
Segment note FY22 SUPER RETAIL GROUP 48
Slide 49: Performance trends
Performance trends Reported Sales ($m) Reported Total Segment PBT ($m) 3,803 436 3,453 3,551 391 2,825 350 2,570 2,710 2,422 2,466 2,112 2,239 162 191 202 207 210 149 156 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Reported EPS (c) Normalised R
Slide 50: Important notice and disclaimer
Important notice and disclaimer This presentation has been prepared by Super Retail Group Limited ABN 81 108 676 204 ("SRG"). It provides summary information about the activities of SRG and its subsidiaries current as at the date of this presentation. The information in this presentation is of a gen