Shoprite Holdings Limited · JSE:SHP
Shoprite — H1 2013 Earnings Presentation
20 slides from Shoprite's earnings presentation, February 2013
Slide 1: Carel Goosen, Deputy Managing Director
CarelGoosen DeputyManagingDirector 2
Slide 2: Size of Operation
SizeofOperation Dec2012 Turnover R47bn TotalStores 1821 Countries 17 Employees 108878 MarketCapitalisation* >R100bn *DuringFebruary2013 3
Slide 3: Financial Highlights
FinancialHighlights Turnover R46.7bn TradingProfit R2.5bn TradingMargin 5.4% HeadlineEPS 315.9c NAVpershare 2507c DividendperShare 123c 4
Slide 4: Key Information per Segment - Turnover
KeyInformationperSegment • Turnover – Total +13.8% – SupermarketsRSA +11.5% – SupermarketsNonRSA +28.2% – Furniture +4.8% – OtherOperatingSegments +23.9% 5
Slide 5: Sales Growth Analysis
SalesGrowthAnalysis Existing Netnew Total Customers Basket stores stores SupermarketsRSA 6.2% 5.3% 11.5% 3.2% 7.6% SupermarketsNonRSA 13.4% 14.8% 28.2% 13.5% 13.4% Furniture 1.2% 3.6% 4.8% OtherDivisions 8.7% 15.2% 23.9% Total 6.9% 6.9% 13.8% 6
Slide 6: Store Portfolios
StorePortfolios Dec2011 Opened Closed Dec2012 (12months) (12months) SupermarketsRSA 729 63 (7) 785 SupermarketsNonRSA 126 18 144 HungryLion 148 20 (3) 165 Furniture 308 26 (7) 327 OKFranchise 419 38 (57) 400 TotalStores 1730 165 (74) 1821 Pharmacies 130 16 (5) 141 LiquorStores 153 31 184 Countries 1
Slide 7: Key Information per Segment - Trading Profit
KeyInformationperSegment • TradingProfit – Total +16.0% – SupermarketsRSA +15.9% – SupermarketsNonRSA +22.2% – Furniture +10.9% – OtherOperatingSegments +3.5% 8
Slide 8: Highlights of Results
HighlightsofResults Dec2011 Dec2012 Grossprofitmargin 19.96% 20.54% • Remainpricecompetitive • Highernonfoodcontribution • Investmentinsystemsandlogistics 9
Slide 9: Highlights of Results
HighlightsofResults Depreciationandamortisationincreasedby25.82% • Continuedhighspendonrevampsandnewbranches • Spendondistributioncentresandinformationtechnology Operatingleasesincreasedby14.64% • Duetonewstoresopenedinthepast12months • Turnoverrentalsonsalesgrowth Employeebenefitsincreasedby11.55%
Slide 10: Highlights of Results
HighlightsofResults Exchangeratedifferences • Dec2011: R28milliongain • Dec2012: R41millionloss RandtoUSDollarexchangerates(R:$) • Dec2010: R6.63 • Dec2011: R8.23 • Dec2012: R8.50 12
Slide 11: Highlights of Results
HighlightsofResults Dec2011 Dec2012 R’m R’m NetInterestExpense 27 69 ConvertibleBonds HighCapitalExpenditure IncomeTaxExpense Normal 621 710 STC 92 Deferred 16 (4) Total 729 706 Effectivetaxrate(excl.STC) 29.5% 29.3% 13
Slide 12: Value Added Statement
ValueAddedStatement Employees R3877m 54% Providers 17% ofCapital R1244m 10% 19% Tax R706m Reinvested R1360m 14
Slide 13: Highlights of Results
HighlightsofResults CapitalExpenditure Dec2011 Dec2012 R’m R’m LandandBuildings 338 346 DistributionCentres 117 229 StoreRefurbishment 219 281 NewStores 433 449 InformationTechnology 193 201 OtherReplacements* 392 576 Total 1692 2082 *Motorvehicles,generators,officefurnitureandDCequipment 15
Slide 14: Highlights of Results
HighlightsofResults ContractedCapitalCommitments Dec2011 Dec2012 R’m R’m Stores 336 742 RSA 214 495 NonRSA 122 247 DistributionCentres 548 403 ITSystems 188 139 Total 1072 1284 16
Slide 15: Highlights of Results
HighlightsofResults Dec2011 Dec2012 Growth R’m R’m % Net(overdraft)/ (396) 7136 >100 cashbalances • IssueofR3.5billionworthofshares • IssueofR4.5billionworthofconvertiblebonds • Monthendclosingdate 17
Slide 16: Stockholding
Stockholding Dec2011 Dec2012 Growth R’m R’m % Inventory 9353 10607 13.4 • Provisionfor91netnewstores • Rolloutofvalueaddeddepartments • Takingonnewdistributioncapacity 18
Slide 17: Effective Inventory Management
EffectiveInventoryManagement Dec2011:R9353m Dec2012:R10607m(+13.4%) R'm Effective 11,500 Stock Inflation Reduction Sales R537m 11,000 Growth 10,500 Organic 10,000 Growth (Stores) Closing Stock 9,500 Opening 9,000 Stock 8,500 8,000 19
Slide 18: Highlights of Results
HighlightsofResults Debtorsandotherreceivables Dec2011 Dec2012 Growth R’m R’m % FurnitureInstalmentSales 980 1106 12.9 Franchise 581 758 30.4 BuyaidOrganisations 185 179 (3.2) RentalandPropertyDebtors 212 351 65.7 MediRite andTranspharm 212 432 >100 MoneyMarketandComputicket 55 113 >100 OtherReceiva
Slide 19: Highlights of Results
HighlightsofResults Cashearnings*(R’m) 1968 1794 1469 Dec2010 Dec2011 Dec2012 *Cashflowfromoperatingactivitiesexcludingdividendspaidandchangesinworkingcapital 21
Slide 20: Highlights of Results
HighlightsofResults HEPSvsCashEPS*vsEBITDApershare(cents) 594 Dec2010 542 Dec2011 459 Dec2012 368 354 316 281 290 237 HEPS CashEPS* EBITDApershare *Cashflowfromoperatingactivitiesexcludingdividendspaidandchangesinworkingcapital 22