Mr Price Group Limited · JSE:MRP
Mr Price — Investor Day (September 2024)
12 slides from Mr Price's investor day presentation, Sep 12, 2024
Slide 1: Capital Markets Day
Capital Markets Day 12 September 20 24
Slide 2: Investment case
By Mark Blair Investment case EDLP fashion-value proposition built on a low opex-sales model remains relevant and positioned to outperform the sector Part 1
Slide 3: Who are we
Who are we A cash-based, omni-channel business obsessed with providing differentiated fashion-value to our diverse range of customers. 11
Slide 4: Where we began: a legacy of value
Where we began A legacy of value Ordinary people doing doing extraordinary things 12
Slide 5: What drives us: The Mr Price Way
What drives us The Mr Price Way Passion Your Value Champion Most valuable Value Retailer in Africa PURPOSE Partnership Why do we exist VI SI O N VALUES/B ELIEFS Where we are going Who we are Where we came from How we behave F OU NDE R’S M E NTA L I TY DNA = CULTURE How will we get/stay there Insurge
Slide 6: Vision: To be the most valuable retailer in Africa
Vision To be the most valuable retailer in Africa Supported by six strategic pillars Stakeholder Growth & Innovation Brand Promise Engagement Stakeholder relationships are based on To deliver sector leading growth and sustain Grow brand value by surprising and the true spirit of partnership and the
Slide 7: Operating model to achieve our vision
Operating model to achieve our vision A HOLDING COMPANY VERSUS INTEGRATED COMPANY Diversified unrelated businesses Single-business, or highly related businesses Monitor Manage and co-ordinate 01 02 03 04 INVE S TMENT HO LD IN G C OMPAN Y STRATEGIC ORIENTATION OPERATIO NAL O RIENTATIO N INTEGRATED CO
Slide 8: History of building brands
• Historically primarily driven by organic growth History of building brands - EDLP business model highly replicable and easy to scale • Further expansion through organic growth and recent acquisitions Sales Acquisition Organic launch 35 000 30 000 25 000 SALES (R’ MILLIONS) mrp.com 20 000 15 000 10
Slide 9: Top of mind: SA's most valuable brands
Top of mind SA’s most valuable brands #1 RANKED MOST VALUABLE FASHION-VALUE RETAILER 1 2 3 4 5 6 7 8 9 10 FNB Standard bank Vodacom MTN Castle Lager Nandos Absa Capitec Discovery Investec 11 12 13 14 15 16 17 18 19 20 Woolworths DSTV Shoprite Nedbank Sanlam Flying Fish Checkers Savanna Old Mutual Br
Slide 10: Recognised as the value champion
Recognised as the value champion KANTAR BRANDZ: STRATEGIC PRICING VIEW HIGH Great Value Margin Opportunity Justified Premium Pricing Power Value Average High Price Commodotised Margin Risk Over-priced LOW Perceived Price HIGH 18 Source: Kantar BrandZ 2024
Slide 11: Why Mr Price
Why Mr Price MARKET LEADERS IN FASHION-VALUE RETAIL Every day low prices Strong balance sheet - zero long-term debt Leading brand awareness Highly cash generative Defensive low-cost model Leading stakeholder engagement Quality omni-channel offering Sustainable metrics and returns Strong ESG leadersh
Slide 12: Track record
Track record SUSTAINABLE LONG-TERM RETURNS: 38-YEAR 12 M O NTH S H A RE PRICE G ROW TH H E PS CAG R D I V I DE N D CAG R 200 +18.4 % +19.6 % 180 5-year: 45.8% 186 SHORT-TERM PERFORMANCE: 5-YEAR 160 RE TA IL SA LE S CAG R O PE R ATI NG M A RG I N AV E R AG E 140 MRPG Competitors MRPG Competitors 127