Super Retail Group Limited · ASX:SUL
Super Retail — Super Cheap Auto Group — H1 FY2008 Earnings Presentation
19 slides from Super Retail's earnings presentation, Feb 21, 2008
Slide 1: Results for the 26 weeks to 29 December 2007
For personal use only Super Cheap Auto Group Results for the 26 weeks to 29 December 2007 Peter Birtles, Managing Director Gary Carroll, Chief Financial Officer 21 February 2008
Slide 2: Group Highlights
Group Highlights For personal use only - 26 Weeks to 29 December 2007 • Group Net Profit After Tax up by 38% over PCP • Group EBIT up by 36% over PCP • Group Sales up by 17% over PCP • Supercheap Auto maintaining the momentum established in the prior year with solid like for like growth supported by
Slide 3: Performance Trends
Performance Trends For personal use only Sales ($m) EBIT ($m) 365.7 21.8 312.3 264.7 16.0 221.9 13.8 11.1 Dec 04 Dec 05 Dec 06 Dec 07 Dec 04 Dec 05 Dec 06 Dec 07 EPS (cents) Post Tax ROC (%) 11.7 15.0 15.2 13.7 8.5 7.7 8.8 5.6 Dec 04 Dec 05 Dec 06 Dec 07 Dec 04 Dec 05 Dec 06 Dec 07 3
Slide 4: Group Results
Group Results For personal use only – 26 Weeks to 29 December 2007 2007 Reported • Strong profit performance driven by change on pcp $m top-line growth, gross margin improvement and cost control Sales 365.7 17.1% • Sales growth was delivered across both brands, and comprised new store and LFL growth
Slide 5: Supercheap Auto Results
Supercheap Auto Results For personal use only - 26 weeks to 29 December 2007 • 13% EBIT growth due to LFL sales growth, 2007 change on margin improvement and cost control $m pcp • LFL growth solid across Australia and New Sales 287.4 7.3% Zealand – builds on 3.1% LFL growth in PCP • Strategic initia
Slide 6: BCF Results
BCF Results For personal use only - 26 weeks to 29 December 2007 • 14 stores opened during the half to bring 2006 change on total stores to 45 – 3 in Qld, 5 in NSW, 5 in WA, 1 in VIC $m pcp – 11 new stores in smaller format Sales 78.3 76.4% • Underlying LFL sales growth after excluding impact of can
Slide 7: Group Cash Flow
Group Cash Flow For personal use only - 26 weeks to 29 December 2007 2007 2006 $m $m • Operating Cash Flow pre set up costs at Operating cash flow 44.2 46.6 $44.2m significantly higher than EBITDA pre set up costs of $33.5m (pre store set up investment) – Continued focus on working capital New store
Slide 8: Group Balance Sheet
Group Balance Sheet For personal use only - at 29 December 2007 Dec 07 Jun 07 $m $m Inventory • SCA average inventory of $568k per store compared to $555k at December 06 - SCA 140.2 122.7 – Traditional Christmas/New Year stock build - BCF 52.8 37.2 – Increased stock weight of higher value car audio
Slide 9: Group Key Financial Ratios
Group Key Financial Ratios For personal use only 2007 2006 • EPS and capital return ratios have improved with the improved earnings EPS – reported 11.7c 8.5c profile • Ratios are well within covenanted Fixed charge cover 2.0x 2.0x levels, and facility limits are sufficient to meet existing businesse
Slide 10: Group Strategy Update
For personal use only Super Cheap Auto Group Group Strategy Update
Slide 11: Core Strategic Themes
Core Strategic Themes For personal use only • Driving growth in the SCA Business • Developing the SCA Business Model • Expanding the BCF network • Developing Procurement and Supply Chain capabilities • Developing Our People 11
Slide 12: Driving Growth in the SCA Business
Driving Growth in the SCA Business For personal use only • New Store Opportunities – Anticipate 3 to 5 new stores in 2nd half – Opportunities to open up to 9 new stores in 2008/09 – Potential remains for 300 stores • New Store Formats – Caboolture Superstore delivering strong results since conversio
Slide 13: Developing the SCA Business Model
Developing the SCA Business Model For personal use only • Business Efficiency – Objective • Reduce time spent by store teams on administrative and stock handling activities by improving business processes – Current Projects • Store process improvements • New labour planning and recording system bein
Slide 14: Expanding the BCF Network
Expanding the BCF Network For personal use only • 47 stores trading today – QLD – 22; NSW - 10; WA - 11; VIC - 3; NT - 1 • Expect to open around 5 greenfield stores in the 2nd half • Acquisition of JV Marine Boating and Fishing Accessories Retail Business – 2 store network in Melbourne will be conve
Slide 15: Developing Procurement and Supply Chain Capabilities
Developing Procurement and For personal use only Supply Chain Capabilities • Continuing focus on cost of doing business through Group Logistics – 1st half logistics costs as a % of sales in line with PCP – Building on saving of 0.4% pts achieved in prior 2 years – Good performance given significant
Slide 16: Developing our People
Developing our People For personal use only • Over 4,500 Team Members across the Group • Clear focus across the Group Leadership Team – Each department targeted on team member retention, development and succession planning • Team Member Development – Year 2 of the Business Leadership Academy rollout
Slide 17: Looking Forward
For personal use only Super Cheap Auto Group Looking Forward
Slide 18: Looking Forward
Looking Forward For personal use only Supercheap Auto • Expect to open 3 to 5 new stores and refurbish 9 stores during the 2nd half • LFL sales growth in the first 7 weeks of the 2nd half in line with the 1st half – some sensitivity to a slow down in general retail spending however longer term outlo
Slide 19: Half Year FY08 Results Presentation
For personal use only Super Cheap Auto Group Half Year FY08 Results Presentation
Super Cheap Auto Group — H1 FY2008 Earnings Presentation on 6ix