Super Retail Group Limited · ASX:SUL
Super Retail — Super Cheap Auto Group — H1 FY2007 Earnings Presentation
18 slides from Super Retail's earnings presentation, Feb 22, 2007
Slide 1: Super Cheap Auto Group Results for the 26 weeks to 30 December 2006
Super Cheap Auto Group Results for the 26 weeks to 30 December 2006 Peter Birtles, Managing Director Gary Carroll, Chief Financial Officer 22 February 2007
Slide 2: Group Highlights
Group Highlights * Group Net Profit After Tax up by 51% over PCP « Group EBIT up by 44% over PCP + Group Sales up by 18% over PCP * New and refurbished store investment of $37.5 million fully covered by operating cash flow * Supercheap Auto delivering +10% EBIT growth * BCF expansion plans ahead of
Slide 3: Group Results
Group Results — 26 Weeks to 30 December 2006 Strong profit performance driven by top-line growth and cost control Sales growth was delivered across both brands, and comprised new store and LFL growth Continued focus on working capital usage resulted in strong operating cash flows Net Debt increased
Slide 4: Supercheap Auto Results
Supercheap Auto Results - 26 weeks to 30 December 2006 + Double-digit EBIT growth due to both sales % change growth and cost control $m on py sears ranean + Strategic initiatives on track: Sales 267.9 8.8% ~ 11 stores refurbished ~ Two new store formats trialled during the period: 400m2 (4 stores),
Slide 5: Supercheap Auto Results
Supercheap Auto Results - 26 weeks to 30 December 2006 soars rcemrinen FSaKe 2006 % change + 11 stores opened during the half to bring $m on py total store numbers to 245 Total Sales - 205 in Australia ~ 40 in New Zealand - Total 267.9 8.8% . , . -LFL 3.1% + Promotional events continue to be importa
Slide 6: BCF Results
BCF Results - 26 weeks to 30 December 2006 soars rcemrinen FSaKe 2006 change on + 14 stores opened during the half to bring $m py total stores to 27 ~ 17in Qld Sales 444 140.6% - 5SinNSW ~ 4inWA Gross margin 39.8% +4, 3%pts ~ ‘in NT + Double digit LFL sales growth EBITDA pre set up costs 5.0 +$3.3m
Slide 7: Group Cash Flow
Group Cash Flow - 26 weeks to 30 December 2006 + SCA and BCF business expansion has been fully funded through operating cash flow + Store fit-out: ~ $2.8m SCA new stores ~ $2.6m in SCA refurbs ~ $6.3m in BCF new stores + Other Capex: ~ Supply Chain - $0.6m ~ IT-$3.7m ~ General maintenance - $1.9m sc
Slide 8: Group Balance Sheet
Group Balance Sheet - at 30 December 2006 + SCA average inventory per store has increased from $499k at June to $555k at Dec06 Jun 06 December $m $m ~ Traditional Christmas/New Year stock build ~ Increased stock weight of higher value car audio, navigation and performance products ~ Adecision to for
Slide 9: Group Key Financial Ratios
Group Key Financial Ratios The Group's ability to fund growth from operating cash flows has meant that improved profit performance has been fully reflected in EPS growth Capital return ratios have also improved with the improved earnings profile Focus on tightening the new store opening criteria for
Slide 10: Group Strategy Update
Super Cheap Auto Group Group Strategy Update
Slide 11: Group Strategy Update
Group Strategy Update * Driving LFL sales growth in Supercheap Auto *« Expansion of the Supercheap Auto network *« Expansion of BCF network * Developing Procurement and Supply Chain capabilities 11
Slide 12: Driving LFL Sales Growth in SCA
Driving LFL Sales Growth in SCA soars rcemrinen FSaKe + Refurbishment program continues to deliver strong results ~- Established refurb stores generating 10+% growth compared to pre-refurb period - § stores will be refurbished in the 2° half - Going forward around 30 stores per year will be refurbis
Slide 13: Expansion of SCA Network
. Expansion of SCA Network soars rcemrinen FSaKe 244 stores trading today ~ 11 stores opened so far this year > 7 ‘700’ format stores + 3'400’ format stores + 1'200’ format store - 1store closed (delayed relocation) in NZ in January Plans for the 24 half - 4new stores ~ 3 ‘700' formats and 1 ‘400’ f
Slide 14: Expansion of BCF Network
Expansion of BCF Network soars rcemrinen FSaKe + 28 stores trading today * Opened new store at Balcatta (WA) in mid January * Continuing focus on WA, NSW and QLD for new store opportunities ~ 5new sites currently secured ~- Site development will determine store opening date ~- 3 additional stores sc
Slide 15: Developing Procurement and Supply Chain Capabilities
Developing Procurement and Supply Chain Capabilities soars rcemrinen FSaKe * Continuing focus on cost of doing business through Group Logistics - 1*half logistics costs as a % of sales have reduced by 0.1% pts compared to PCP ~ Building on saving of 0.2% pts achieved in FY06 ~ Benefits of expansion
Slide 16: Outlook for 2nd Half Year FY07
Super Cheap Auto Group Outlook for 2"4 Half Year FY07
Slide 17: Outlook for 2nd Half Year FY07
Outlook for 2°° Half Year FY07 sears Supercheap Auto . Expect to open 4 new stores, relocate 3 stores and close 2 stores during the 2"¢ half LFL growth will be dependant on performance of promotional program as retail expenditure in the auto aftermarket remains subdued 2°¢ half operating margins hig
Slide 18: Half Year FY07 Results Presentation
Super Cheap Auto Group Half Year FY07 Results Presentation
Super Cheap Auto Group — H1 FY2007 Earnings Presentation on 6ix