Shoprite Holdings Limited · JSE:SHP
Shoprite — FY2010 Earnings Presentation
11 slides from Shoprite's earnings presentation, August 2010
Slide 1: Non-RSA Overview
Non-RSA Overview Whitey Basson Chief Executive Officer
Slide 2: Supermarkets Non-RSA Overview
Supermarkets Non-RSA Overview • Opened 9 new stores, now 124 outlets • 18% sales growth in constant currencies • Most currencies devalued against the rand – Examples • Angola • Mozambique • Namibia • Zambia 66
Slide 3: Angola
Angola Exchange Rate: Angolan kwanza against the rand (monthly averages) 14 12 10 8 6 July 2008 to June 2009 July 2009 to June 2010 4 2 0 67
Slide 4: Mozambique
Mozambique 5 Exchange Rate: Mozambican metical against the rand (monthly averages) 4.5 4 3.5 3 2.5 July 2008 to June 2009 2 July 2009 to June 2010 1.5 1 0.5 0 68
Slide 5: Nigeria
Nigeria 25 Exchange Rate : Nigerian naira against the rand (monthly averages) July 2008 to June 2009 July 2009 to June 2010 20 15 10 5 0 69
Slide 6: Zambia
Zambia 800 Exchange Rate: Zambian kwacha against the rand (monthly averages) July 2008 to June 2009 July 2009 to June 2010 700 600 500 400 300 200 100 0 70
Slide 7: Supermarkets Non-RSA
Supermarkets Non-RSA • Pressure on margin as a result of currency devaluations • Largely offset by lower expense growth • RSA export volumes reduced by 30.9% as a result of the stronger Rand • Shrinkage improved further on last year’s good result • Closed the Indian franchise and wholesale operation
Slide 8: Africa: A Positive Outlook
Africa: A Positive Outlook • Oil-rich countries will continue to benefit from the long-term rise in oil prices • Shoprite will benefit from established operations in Angola and Nigeria, Africa’s most populous country and 2nd largest economy • Uganda will also benefit – will start producing oil by th
Slide 9: Oil Price
Oil Price $75,5 73 Source: OPEC
Slide 10: Africa: A Positive Outlook
Africa: A Positive Outlook • Improved copper price should lead to re-opening of more Zambian copper mines* • 3 large mining investments in Mozambique with China investing over a billion dollars in the Tete project* • However, it still takes an enormous amount of time and effort to secure property an
Slide 11: Outlook
Outlook • Little relief for consumers • Rising food inflation – Short supply of wheat will put pressure on prices – Electricity price hikes at farm/production level need to be passed on • The Group will benefit from above inflation wage increases concluded • Recovered exchange rates will benefit Non