Super Retail Group Limited · ASX:SUL
Super Retail — H1 FY22 Earnings Presentation
43 slides from Super Retail's earnings presentation, Feb 21, 2022
Slide 1: 2022 Half Year Results Presentation
For personal use only 21 February 2022 2022 - HALF YEAR RESULTS PRESENTATION Super Retail Group Limited (ASX: SUL) provides its 2022 - Half Year Results Presentation to the market. For further information contact: Investor enquiries: Robert Wruck, Head of Investor Relations Ph: 0414 521 124 E: rober
Slide 2: FY22 Half Year Results Presentation
For personal use only FY22 HALF YEAR RESULTS PRESENTATION Authorised for release by the Super Retail Group Board 21 February 2022 ABN: 81 108 676 204
Slide 3: Contents
For personal use only CONTENTS • Group highlights • FY22 first half financial results • Corporate strategy • ESG and sustainability • Trading update • Appendix SUPER RETAIL GROUP 2
Slide 4: Group highlights
Group highlights For personal use only SUPER RETAIL GROUP 3
Slide 5: Executive summary
Executive summary The Group has delivered a solid first half result despite the challenges of Omicron and a disrupted global supply chain • $1.7b in H1 sales (excludes Boxing Day) - reflects strong For personal use only rebound in second quarter sales across all four core brands1 • Record online sal
Slide 6: Financial highlights
Financial highlights For personal use only 46.7% $329m $161m GROSS MARGIN SEGMENT EBITDA SEGMENT PBT 1 $1.7b 2020 2021 2020 2021 2020 2021 45.0% 47.7% $259m $418m $100m $251m H1 GROUP SALES $113m $111m 27.0¢ NORMALISED STATUTORY INTERIM NPAT 1 NPAT DIVIDEND 2020 2021 2020 2021 2020 2021 $70m $176m $
Slide 7: Strong top-line result
Strong top-line result The Group’s investment in inventory enabled it to capture strong consumer demand For personal use only GROUP H1 H1 SALES GROWTH SALES ($M) BY BRAND SALES GROWTH LFL SALES (%)1,2,3 GROWTH(%)1,2,3 1 YEAR 2 YEAR 1 YEAR 2 YEAR (6.9) 11.9 (7.7) 10.1 (2.9) 11.6 (5.9) 10.0 1,776 1,70
Slide 8: Group sales rebounded strongly in the second quarter
Group sales rebounded strongly in the second quarter, following re-opening after COVID-19 lockdowns For personal use only LIKE-FOR-LIKE WEEKS 1 TO 16 WEEKS 17 TO 26 WEEKS 1 TO 26 SALES GROWTH EXCLUDING ADJUSTED FOR ADJUSTED FOR ADJUSTED FOR BOXING DAY1 BOXING DAY2 BOXING DAY BOXING DAY VS H1 FY212 V
Slide 9: Group gross margin 46.7%
Group gross margin 46.7% Business improvements relating to sourcing, pricing and inventory management are supporting margins For personal use only • The Group has been able to maintain part of the gross margin uplift delivered in H1 FY21 as a result of business improvements related to: ‐ improved so
Slide 10: Investment for growth reflected in Cost of Doing Business
Investment for growth reflected in Cost of Doing Business (CODB) CODB as a percentage of sales reverted to historical levels in H1 FY22 as the Group increased investment for growth and unwound cost containment measures previously implemented in response to the pandemic For personal use only • Key fa
Slide 11: Digital and omni-channel highlights
Digital and omni-channel highlights For personal use only OMNI CHANNEL CLICK & COLLECT EXECUTION INCREASED TO 10% DELIVERED 58% REDUCTION IN SPLIT ORDERS 2 64% OF ONLINE GROWTH IN $389m SALES ONLINE SALES 2 H1 GROUP ONLINE SALES1 ONLINE SALES REPRESENTED 26% COMPLETED MORE THAN 23% INCREASE IN HOME
Slide 12: Online sales grew by 64 per cent to $389 million
Online sales grew by 64 per cent to $389 million Online sales represented 23 per cent of Group H1 sales (compared to 13 per cent in pcp) For personal use only H1 ONLINE SALES ($M) ONLINE SALES PERFORMANCE BY BRAND 4 YR CAGR 48% ONLINE ONLINE SALES ONLINE AS % OF SALES ($M) GROWTH VS PCP (%) TOTAL SA
Slide 13: Click & Collect growth outpacing home delivery
90 per cent of H1 transactions involved a customer visiting a store Click & Collect growth is outpacing home delivery and Home delivery sales are moderating as pandemic For personal use only represents 13 per cent of total sales related caution about visiting stores starts to ease H1 BRAND SALES BY
Slide 14: Customer and brand highlights
Customer and brand highlights For personal use only AVERAGE BCF CLUB MEMBERS CUSTOMER NPS CLUB MEMBERS REPRESENT INCREASED IN REPRESENT 69% H1 TO 86% OF TOTAL H1 64 OF BCF 8.7m GROUP SALES H1 SALES ACTIVE CLUB MEMBERS 1.6m 22% 900,000+ INCREASE IN GROWTH CUSTOMERS JOINED ACTIVE CLUB IN TOTAL ACTIVE
Slide 15: Large, growing and active club membership base
Large, growing and active club membership base Over the last 12 months, active club members grew by more than 20 per cent to 8.7 million 1 For personal use only 2.8m 3.3m 2.1m 0.5m ACTIVE CLUB ACTIVE CLUB ACTIVE CLUB ACTIVE CLUB MEMBERS MEMBERS MEMBERS MEMBERS 65 AVERAGE 61 AVERAGE 65 AVERAGE 69 AVE
Slide 16: FY22 first half financial results
FY22 first half financial results For personal use only SUPER RETAIL GROUP 15
Slide 17: Group results
Group results H1 FY22 H1 FY21 H1 FY22 H1 FY21 For personal use only $m Post AASB 16 Post AASB 16 Pre AASB 161 Pre AASB 161 Total sales2 1,705.1 1,776.3 1,705.1 1776.3 Total segment EBITDA 329.4 418.1 216.0 311.4 Segment D&A 146.6 146.2 47.9 55.4 Total segment EBIT 182.8 271.9 168.1 256.0 Net finance
Slide 18: Segment results (post AASB 16)
Segment results (post AASB 16) For personal use only $m H1 FY221 H1 FY21 Segment Sales EBIT PBT Sales EBIT PBT Supercheap 616.1 82.9 75.9 661.9 109.0 102.8 Auto rebel 605.6 74.8 68.3 623.7 104.0 97.4 BCF 418.5 35.6 31.2 427.7 67.6 63.3 Macpac 65.5 (0.8) (1.5) 63.0 4.5 3.6 Group and (0.6) (9.7) (12.9
Slide 19: Supercheap Auto
• For personal use only Total sales declined by 6.9% to $616.1m. On a two year basis this represents 1 year 2 year $m H1 FY221 H1 FY211 H1 FY201 11.9% sales growth change2 change2 • Like-for-like sales declined by 7.7% (or 6.2% adjusted for Boxing Day). This represents two year growth of 10.1% (or 1
Slide 20: rebel
• Total sales declined by 2.9% to $605.6m. On a two year basis this represents 11.6% For personal use only 1 year 2 year sales growth $m H1 FY221 H1 FY211 H1 FY201 change2 change2 • Like-for-like sales declined by 5.9% (or 5.4% adjusted for Boxing Day). This represents two year growth of 10.0% (or 1
Slide 21: BCF
For personal use only • Total sales declined by 2.2% to $418.5m. On a two year basis this represents 47.6% $m H1 FY221 H1 FY211 1 year H1 FY201 2 year sales growth change2 change2 • Like-for-like sales fell by 3.7% (2.4% adjusted for Boxing Day). This represents two year Sales 418.5 427.7 (2.2)% 283
Slide 22: Macpac
• Total sales increased by 4.0% to $65.5m due to positive like-for-like sales in Australia For personal use only 1 year 2 year and new store openings. On a two year basis, this represents a 1.5% decline in sales $m H1 FY221 H1 FY211 H1 FY201 change2 change2 • In Australia, like-for like sales increa
Slide 23: Group and unallocated
Group and unallocated For personal use only • Group and unallocated includes corporate costs not allocated to H1 FY22 H1 FY21 segments and digital and omni-retail development costs Change on $m Post Post PCP • Total costs of $9.7m (EBIT) which is $3.5m lower than pcp AASB 16 AASB 16 • Corporate cost
Slide 24: Group balance sheet
Group balance sheet • Elevated inventory position across all brands reflects the Group’s $m 25 Dec 2021 26 Jun 2021 For personal use only decision to invest in inventory to mitigate the impact of disruptions to the global manufacturing and supply chain Inventory • Inventory investment has increased
Slide 25: Returns, capital ratios and fx
Returns, capital ratios and fx • Normalised EPS of 49.9 cents, whilst declining 35.9% on pcp is 40.6% For personal use only above H1 FY20 Change on H1 FY22 H1 FY21 PCP • The Directors have determined to pay a fully franked interim dividend of 27.0 cents per share Normalised EPS (cents) 49.9 77.9 (35
Slide 26: Group cash flow
Group cash flow • Operating cash flow of $157.0m was $370.2m below pcp and $m 25 Dec 21 26 Dec 20 Change on PCP For personal use only reflects the following: • investment in inventory to ensure stock availability Operating cash flow 157.0 527.2 (70.2)% given supply chain disruption and unwinding of
Slide 27: Corporate strategy
Corporate strategy For personal use only SUPER RETAIL GROUP 26
Slide 28: Our strategy
Our strategy STRATEGIC DRIVERS 1 GROW THE FOUR CORE BRANDS For personal use only 2 GROWING ANNUAL LEVERAGE CLOSENESS TO CUSTOMER VALUE OUR CUSTOMER PRIMARY VALUE LEVERS 3 CONNECTED OMNI-RETAIL SUPPLY CHAIN BEING AN EFFICIENT OMNI-RETAILER ENSURING ORGANIC GROWTH AND CAPITAL DISCIPLINE 4 SIMPLIFY THE
Slide 29: Strategy execution remains on track
Strategy execution remains on track For personal use only 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 in • Active customer growth • Achieving recor
Slide 30: FY22 store development plan progressing well
FY22 store development plan progressing well The Group opened 15 new stores in H1 For personal use only FY22 STORE DEVELOPMENT PLAN H1 NETWORK ACTIVITY NEW STORE LOCATIONS • Open 5 stores and close 1 store • Opened 3 stores, closed 1 store • Rolleston • Refurbish 30 stores • Refurbished 15 stores •
Slide 31: ESG and sustainability
ESG and sustainability For personal use only SUPER RETAIL GROUP 30
Slide 32: Sustainability
Sustainability Environment, Social and Governance For personal use only • Super Retail Group is committed to adopting and implementing programs that enhance our sustainability performance in line with our stakeholders expectations • The Group has made good progress on implementing more sustainable p
Slide 33: ESG and sustainability - ratings and credentials
ESG and sustainability - ratings and credentials Modern Slavery Workplace Current ESG ratings For personal use only Statement (MSS) Gender Equality Agency - WGEA Awarded the WGEA’s Employer of Choice for Gender Equality ‘Leading’ rating from the Australian Council of Superannuation Investors for ESG
Slide 34: Team
Team For personal use only TEAM ENGAGEMENT TEAM WELLBEING On behalf of Super Retail Group, I would like to thank all of the members of our 82 2,618 5 points above Achievers members of our mental health team for your incredible benchmark program at Dec 21 dedication and passion in what has been an ex
Slide 35: Trading update
Trading update For personal use only SUPER RETAIL GROUP 34
Slide 36: Trading update
Trading update • It has been a positive start to the second half with the Group delivering 6.0 per cent like for like sales growth 1 For personal use only H1 LFL sales H2 LFL sales YTD LFL sales YTD LFL sales Weeks 1 to 26 Weeks 27 to 33 Weeks 1 to 33 Weeks 1 to 33 Adjusted for Boxing Day2 Adjusted
Slide 37: Appendix
Appendix For personal use only SUPER RETAIL GROUP 36
Slide 38: Performance Trends
Performance Trends Reported Sales ($m) Reported Total Segment EBIT (pre AASB) ($m) For personal use only 256 1,776 1,705 1,403 1,444 1,296 1,324 168 1,159 1,216 1,037 1,096 125 115 100 115 114 759 101 94 93 62 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 11 Dec 12
Slide 39: Segment note (post AASB 16) H1 FY22
Segment note (post AASB 16) H1 FY22 For personal use only SUPER RETAIL GROUP 38
Slide 40: Segment note (post AASB 16) H1 FY21
Segment note (post AASB 16) H1 FY21 For personal use only SUPER RETAIL GROUP 39
Slide 41: Segment note (pre AASB 16) H1 FY22
Segment note (pre AASB 16) H1 FY22 For personal use only SUPER RETAIL GROUP 40
Slide 42: Segment note (pre AASB 16) H1 FY21
Segment note (pre AASB 16) H1 FY21 For personal use only SUPER RETAIL GROUP 41
Slide 43: Disclaimer
Disclaimer For personal use only This presentation was prepared by Super Retail Group Limited (ACN 108 676 204) (“SRG”). The presentation is not an invitation or offer for subscription or purchase or recommendation of securities. It does not consider the investment objectives, financial situation an