Super Retail Group Limited · ASX:SUL
Super Retail — H1 FY2017 Earnings Presentation
22 slides from Super Retail's earnings presentation, Feb 24, 2017
Slide 1: Results for the 26 weeks to 31st December 2016
For personal use only Results for the 26 weeks to 31st December 2016 Peter Birtles Group Managing Director and Chief Executive Officer David Burns Chief Financial Officer 24 February 2017
Slide 2: Contents
For personal use only Contents 2016/17 1st Half Performance 2nd Half Trading Update Group Strategy
Slide 3: Group Highlights
For personal use only Group Highlights • Total Group sales of $1.3 billion up by 6.6% on pcp • Total Segment EBIT of $115.2 million up by 23.7% on pcp • Normalised NPAT of $74.4 million up by 26.3% on pcp • Net profit attributable to owners from continued operations of $74.4 million up by 65.7% on p
Slide 4: Performance Trends
Performance Trends Reported Sales ($m) Reported Total Segment EBIT For personal use only ($m) 1,296 1,216 1,159 1,096 1,037 115.2 759 99.8 101.1 94.1 93.1 562 464 61.6 413 41.4 23.6 28.3 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 D
Slide 5: ROC Drivers: Progress Report
ROC Drivers: Progress Report Ongoing work and initiatives well underway to exceed ROC target: For personal use only • Growing store numbers to over 800 • Delivering like for like growth of 3% to 4% • Range management and sourcing initiatives • $20 million in supply chain costs savings • Addr
Slide 6: Group Results
Group Results • Total Sales growth of 6.6% supported by new stores, 2016/17 Change on For personal use only like for like growth and timing benefits partially offset $m PCP by Ray’s Outdoors store closures Total Sales 1,295.5 6.6% • Group segment EBITDA increase as a result of the positive impact of
Slide 7: Segment Results
For personal use only Segment Results 2016/17 2015/16 Sales Segment EBIT Sales Segment EBIT $m $m $m $m Auto Segment 489.2 53.6 457.7 48.7 Leisure Segment 311.0 20.6 302.3 13.4 Sports Segment 490.5 50.9 452.0 42.6 Group & Unallocated 4.8 (9.9) 3.5 (11.6) Total Segment Result 1,295.5 115.2 1,215.5 93
Slide 8: Auto Retailing
Auto Retailing • Solid result with strong like for like sales growth of 3.7 2016/17 Change on For personal use only per cent, driven by strong transaction growth as the $m PCP business continues to benefit from expanding its customer offering into services and new lines Sales 489.2 6.9% • Like for l
Slide 9: Leisure Retailing
Leisure Retailing • Sales performance through the half was distorted by 2016/17 Change on For personal use only closure of Ray’s Outdoors stores and conversions to $m PCP BCF. BCF LFL sales growth of 3.6% post Ray’s Outdoors closure. Digital sales more than doubled Sales 311.0 2.9% • BCF like for li
Slide 10: Sports Retailing
Sports Retailing • Like for like sales growth in Rebel and Amart Sports 2016/17 Change on driven by total transaction and average transaction For personal use only $m PCP value growth Sales 490.5 8.5% • Strong LFL growth across all major categories with particularly strong performance in apparel LFL
Slide 11: Group & Unallocated
Group & Unallocated • Group and Unallocated includes: 2016/17 Change on For personal use only $m PCP • Corporate costs not allocated to segments • Commercial Operations Sales 4.8 37.1% • Super Retail Commercial • Oceania Bicycles $m • Digital Businesses EBIT (9.9) 1.7 • Fixed Price Car Service • You
Slide 12: Group Cash Flow
Group Cash Flow • Operating cash flow (pre store set up investment) 2016/17 2015/16 For personal use only $m $m is circa $77m higher than pcp driven by Sales growth and creditors cycle Operating cash flow (pre store set up 273.8 197.2 • Strong underlying operating cash flow investment) performance h
Slide 13: Group Balance Sheet
Group Balance Sheet • Inventory performance has been sound Dec 16 Jun 16 For personal use only accommodating an increased cost base from $m $m Australian dollar weakening and growth in private brand volumes Inventory - Auto Retailing • All Brands have improved average $ inventory per 208.8 188.7 - L
Slide 14: Returns & Capital Ratios
Returns & Capital Ratios • Normalised EPS of 37.7c an increase of 26% on 2016/17 2015/16 For personal use only pcp Normalised EPS 37.7c 29.9c • Normalised Fixed charge cover ratio, calculated on a rolling 12 month basis Basic EPS 37.7c 22.8c • Average net debt improvement is due to working capital i
Slide 15: Segment Note 2016/17
Segment Note 2016/17 For personal use only 15
Slide 16: Segment Note 2015/16
Segment Note 2015/16 For personal use only 16
Slide 17: Contents
For personal use only Contents 2016/17 1st Half Performance 2nd Half Trading Update Group Strategy
Slide 18: 2nd Half Trading Update
2nd Half Trading Updte Auto Retailing For personal use only • LFL sales growth in the first 7 weeks of second half circa 4% • SCA store development: plan to open 8 new stores and close 2 stores, 39 refurbishments, extensions and relocations Leisure Retailing • LFL sales growth in the first 7 weeks o
Slide 19: Contents
For personal use only Contents 2016/17 1st Half Performance 2nd Half Trading Update Group Strategy
Slide 20: Our Strategic Roadmap
Our Strategic Roadmap For personal use only OUR VISION Inspiring you to live your passion To provide solutions and engaging experiences that enable our customers to make OUR PURPOSE the most of their leisure time To achieve To achieve higher To provide To be one of the highest customer returns to ou
Slide 21: Our Five Year Vision
Our Five Year Vision PILLAR PRIORITY CURRENT STATE FIVE YEAR ASPIRATION For personal use only Customer • Customer insight to The capability to generate insights that understanding maximise profitable sales Basic in-house customer improve the customer experience and and insight Insights to support co
Slide 22: Delivering our Financial Targets
Delivering our Financial Targets 5 Year Target Store Numbers LFL Growth EBIT Margin Pre Tax ROC % * For personal use only Auto 350 >3% PA 12% > 50% Leisure 220 >3% PA 11% > 30% Sports 230 >4% PA 11% > 30% * excludes acquired goodwill and brand names Opportunities Challenges • Growing store numbers t