Super Retail Group Limited · ASX:SUL
Super Retail — Investor Presentation (August 2018)
37 slides from Super Retail's investor presentation, Aug 21, 2018
Slide 1: Results for the 52 weeks to 30th June 2018
Results for the 52 weeks to 30th June 2018 Peter Birtles Group Managing Director and Chief Executive Officer David Burns Chief Financial Officer 21 August 2018
Slide 2: Content
Content Group Highlights 2017/18 Financial Results 2018/19 Trading Update Appendices - Group Strategy - Performance Trends - Segment Notes 2017/18 and 2016/17 - Quantium NAB Data Disclaimer
Slide 3: Group Highlights
Group Highlights FINANCIAL PERFORMANCE Total Group sales of $2.57 billion up by 4.2% on pcp Total Segment EBIT of $219.6 million up by 5.9% on pcp Normalised NPAT of $145.3 million up by 7.0% on pcp Operating cash flow of $308.4 million up by $73.9 million on pcp Full year dividend of 49.0
Slide 4: Group Highlights
Group Highlights Core businesses growing faster than retail sales - Total Sales Growth 5.3% 3.2% 3.7% - 2.9% Annual Growth in Total Nominal Retail Sales (per ABS Retail Trade 3 Aug 2018) Transformation initiatives delivering expected benefits Sports Outdoor - Customer NPS higher than PCP - Macpac tr
Slide 5: Group Highlights
Group Highlights Investment in omni-retail capabilities underpinning growth - Total On-line Sales Growth 85% 152% 76% - Increase in our Online Market Share(1) +5.8% +13.2% +3.2% (1) Source : Compare to key category competitors - Quantium NAB Data: 12 months ending June 2018. See page 37 Continued st
Slide 6: Group Highlights : Our Scorecard
Group Highlights : Our Scorecard Strong performance in team member and customer metrics • Top quartile team engagement at 70% Healthy, passionate • Team Retention at 73.8% significantly higher than industry average and high • LTIFR at 6.1 over 50% improvement over last 3 years performing team • NPS
Slide 7: Content
Content Group Highlights 2017/18 Financial Results 2018/19 Trading Update Appendices - Group Strategy - Performance Trends - Segment Notes 2017/18 and 2016/17 - Quantium NAB Data Disclaimer
Slide 8: Group Results
Group Results • Total Sales increased 4.2% on pcp; excluding 2017/18 Change on contribution from Macpac, sales increased 3.0% $m PCP • Group segment EBIT includes a $7.8m Total Sales 2,570.4 4.2% contribution from Macpac. EBIT has increased by 2.2% excluding Macpac Total Segment EBITDA 294.1 5.8% •
Slide 9: Segment Results
Segment Results 2017/18 2016/17 Sales Segment EBIT Sales Segment EBIT $m $m $m $m Auto Segment 1,006.4 116.4 955.9 111.0 Outdoor Segment 579.8 29.6 553.5 25.4 Sports Segment 979.2 91.5 949.2 91.3 Group & Unallocated 5.0 (17.9) 7.2 (20.4) Total Segment Result 2,570.4 219.6 2,465.8 207.3 • All divisio
Slide 10: Auto Retailing
Auto Retailing Key Statistics Snapshot (latest available data) Trend LFL Sales Growth (%) Active club members 1.47m 5.0 5 4.4 3.6 3.6 Club members NPS 59% 2.4 2.2 Club sales % total sales 37% 2.5 Store numbers 319 0 Share of online spending in auto retailers(1) 24% FY13 FY14 FY15 FY16 FY17 FY18 Onli
Slide 11: Auto Retailing
Auto Retailing • Strong like for like sales growth of 3.6% driven by 2017/18 Change on increase in average item value, items per $m PCP transaction and transaction growth • All major categories were in growth. Strong Sales 1,006.4 5.3% growth was achieved in Accessories and Maintenance categories LF
Slide 12: Outdoor Retailing
Outdoor Retailing • Outdoor Retailing includes BCF, Rays and 2017/18 Change on Mapac $m PCP • Following the successful trial of a large format Sales 579.8 4.8% outdoor adventure store under the Rays brand, the Group acquired Macpac to build a market leading outdoor adventure retail business LFL Sale
Slide 13: Outdoor Retailing - BCF
Outdoor Retailing - BCF Key Statistics Snapshot (latest available data) Trend LFL Sales Growth (%) Active club members 1.36m 6 5.5 5.1 Club members NPS 57% 4 2.2 Club sales % total sales 79% 2 1.1 -1.1 -1.1 Store numbers 134 0 Share of online spending in leisure 12% -2 FY13 FY14 FY15 FY16 FY17 FY18
Slide 14: Outdoor Retailing - BCF
Outdoor Retailing - BCF • Sales growth was delivered through new stores 2017/18 Change on and like for like growth of 1.1% $m PCP • Like for like sales growth was driven by an Sales 498.3 3.7% increase in average transaction value and growth in transactions • On-line sales increased by 76% LFL Sales
Slide 15: Outdoor Retailing - Macpac and Rays
Outdoor Retailing - Macpac and Rays Macpac • Macpac was effectively acquired on the 31 2017/18 Change on $Am PCP March 2018. The final quarter typically generates around one third of annual sales Sales - Macpac (1) • The business has traded well with like for like 31.4 - sales growth of circa 10% in
Slide 16: Sports Retailing
Sports Retailing Key Statistics Snapshot (latest available data) Trend LFL Sales Growth (%) Active club members 2.47m 8.0 8 6.6 6.3 Club members NPS 55% 6 4.4 Club sales % total sales 61% 4 2.6 2.0 Store numbers 159 2 0 Share of online spending in sports 25% FY13 FY14 FY15 FY16 FY17 FY18 retailers(1
Slide 17: Sports Retailing
Sports Retailing • Sports Retailing integrated Amart Sports into 2017/18 Change on Rebel, rebranding 68 Amart Sports stores during $m PCP the first half • Sales growth for the period was supported by Sales 979.2 3.2% increased transaction growth offset by lower average transaction value through incr
Slide 18: Group & Unallocated
Group & Unallocated 2017/18 $m $m • Group and Unallocated includes: Sales 5.0 (2.2) • Corporate costs not allocated to segments $m • Commercial Operations • Omni retail development EBITDA (17.7) 1.9 • Corporate costs remain consistent with the prior comparative period EBIT (17.9) 2.5 • Un-utilised d
Slide 19: Group Cash Flow
Group Cash Flow 2017/18 2016/17 $m $m • Operating cash flow (pre store set up Operating cash flow 322.1 264.8 investment) growth driven by higher profit, solid (pre store set up investment) working capital management and circa $17m Store set up investment (13.7) (30.3) timing benefits Operating cash
Slide 20: Group Balance Sheet
Group Balance Sheet Jun 18 Jun 17 $m $m • Inventory has increased through growth in private brand volumes, focus on lifting in stock Inventory availability and the lower A$ - Auto Retailing 204.5 187.7 • SCA average inventory per store has increased - Outdoor Retailing 160.2 126.9 by 8% due to curre
Slide 21: Returns & Capital Ratios
Returns & Capital Ratios 2017/18 2016/17 • Normalised EPS of 73.7c an increase of 7.0% Normalised EPS 73.7c 68.9c on pcp • Normalised Fixed charge cover ratio, Basic EPS 65.0c 51.6c calculated after adjusting for restructuring costs is near target range of 2.2 times Reported Annualised Post Tax 13.1
Slide 22: Content
Content Group Highlights 2017/18 Financial Results 2018/19 Trading Update Appendices - Group Strategy - Performance Trends - Segment Notes 2017/18 and 2016/17 - Quantium NAB Data Disclaimer
Slide 23: 2018/19 Trading Update
2018/19 Trading Update Auto Retailing • LFL sales growth in the first 6 weeks of 2018/19 circa 5% • SCA store development: plan to open 11 new stores, close 2 stores and undertake 11 relocations and extensions Outdoor Retailing • BCF LFL sales growth in the first 6 weeks of 2018/19 circa 3% • BCF st
Slide 24: Content
Content Group Highlights 2017/18 Financial Results 2018/19 Trading Update Appendices - Group Strategy - Performance Trends - Segment Notes 2017/18 and 2016/17 - Quantium NAB Data Disclaimer
Slide 25: FY19 Group Strategy
FY19 Group Strategy OUR VISION Inspiring you to live your passion To provide solutions and engaging experiences that inspire our customers to OUR PURPOSE make the most of their leisure time Healthy, passionate Inspired, engaged Sustainable omni- Top quartile OUR GOALS and high and satisfied retail c
Slide 26: Growing businesses in high involvement categories Strategic Initiatives
Growing businesses in high involvement categories Strategic Initiatives • Customer NPS action plan • Complete Amart integration • Team of experts • Team focus and capability • Reinventing customer experience • Store Development Experience • Store Development • Team Development • Store / Online integ
Slide 27: Growing businesses in high involvement categories - Macpac
Growing businesses in high involvement categories Year to March 2018 5 Year Opportunity • 54 Stores • 75 core stores and 20 megastores • Sales NZ$97 million • Sales circa NZ$250 million • Digital sales 8% total sales • Digital sales 20% total sales • Normalised EBITDA margin circa 16% • EBITDA margi
Slide 28: Our Goals: Engaging capable team members
Engaging capable team members who share our customers’ passions OUR GOALS Current Position Key Initiatives Top quartile team • I have the skills and engagement at 70% • Senior Leadership Capability capability to deliver on our • Leadership agility and customer promise adaptability Team Retention
Slide 29: Our Goals: Building a world class omni-retail organisation
Building a world class omni-retail organisation OUR GOALS Current Position Key Initiatives New website platform built • Digital Customer Experience and being rolled out across • Leveraging new • We deliver how, when and all businesses by end July website platform where our customer • Increasing co
Slide 30: Our Goals: Building a world class omni-retail organisation
Building a world class omni-retail organisation OUR GOALS Current Position Key Initiatives Developing omni-retailing operating model but core • We operate a sustainable processes primarily support • One Super Way program cost efficient operating a physical retail business model Common systems ac
Slide 31: Capital Management
Capital Management • Maximise shareholder returns through focusing on financial targets: • Achieve category leading operating margins • Deliver consistent like for like sales growth ahead of market OBJECTIVES • Deliver retail sector top quartile earnings per share growth per annum • Generate Return
Slide 32: 3 Year Revenue, EBIT and Capital Targets
3 Year Revenue, EBIT and Capital Targets Core Planning Assumptions SCA, Rebel and BCF Macpac (incl Rays) • Market value growth rates of 1% to 2% recognising competitive pricing – market REVENUE growth driven predominantly by digital 4% to 6% per annum 14% to 18% per annum • 2% space growth per annum
Slide 33: Performance Trends
Performance Trends Reported Sales ($m) Reported Total Segment EBIT ($m) 2,570 2,422 2,466 2,239 2,020 2,112 1,654 207.3 219.6 172.3 182.6 170.2 175.3 1,092 140.7 938 829 715 87.5 45.7 55.1 65.8 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 Jun 18 Jun 08 Jun 09 Jun 10 Jun 11 J
Slide 34: Performance Trends
Performance Trends Team Team Engagement Safety Team Retention Lost Time Injury Frequency Rate 71% 71% 70% 75% 75% 74% 74% 68% 13.2 8.8 6.3 6.1 Jun 15 Jun 16 Jun 17 Jun 18 Jun 15 Jun 16 Jun 17 Jun 18 Jun 15 Jun 16 Jun 17 Jun 18 Customer Average Net Active Club Customer Promoter Score Members Transact
Slide 35: Segment Note 2017/18
Segment Note 2017/18 Total Inter-segment continuing eliminations/ For the period ended 30 June 2018 Auto Outdoor Sports operations unallocated Consolidated $m $m $m $m $m $m Segment Revenue and Other Income External segment revenue(1) 1,006.4 579.8 979.2 2,565.4 5.7 2,571.1 Inter segment sales - - -
Slide 36: Segment Note 2016/17
Segment Note 2016/17 Total Inter-segment continuing eliminations/ For the period ended 1 July 2017 Auto Outdoor Sports operations unallocated Consolidated $m $m $m $m $m $m Segment Revenue and Other Income External segment revenue(1) 955.9 553.5 949.2 2,458.6 7.9 2,466.5 Inter segment sales - - - -
Slide 37: Quantium NAB Data Disclaimer
Quantium NAB Data Disclaimer This report comprises, and is the subject of intellectual property (including copyright) and confidentiality rights of one or multiple owners, including The Quantium Group Pty Limited (Quantium) and where applicable, its third-party data owners (Data Providers), together
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