Slide 1: Results for the 52 weeks to 28 June 2008
For personal use only Super Cheap Auto Group Results for the 52 weeks to 28 June 2008 Peter Birtles, Managing Director Gary Carroll, Chief Financial Officer 28th August 2008
Slide 2: Group Highlights
For personal use only Group Highlights • Earnings per share increasing by 15.5% over the prior comparative period • Supercheap Auto and BCF growing profits at a faster rate than sales through improvement in retail margins and control of support costs • Strong like for like sales growth across both b
Slide 3: Performance Trends
Performance Trends For personal use only Sales ($m) EBIT ($m) 715.4 45.7 624.8 38.1 525.9 30.4 470.1 28.9 Jun 05 Jun 06 Jun 07 Jun 08 Jun 05 Jun 06 Jun 07 Jun 08 EPS (cents) Post Tax ROC (%) 24.2 13.9 14.1 20.9 13.2 20.4 11.7 15.5 Jun 05 Jun 06 Jun 07 Jun 08 Jun 05 Jun 06 Jun 07 Jun 08 3
Slide 4: Group Results
Group Results For personal use only 2007/08 change on prior year $m • Strong profit performance driven by good sales growth and control of costs Sales 715.4 14.5% • Sales growth across both brands achieved through new store and LFL sales growth EBITDA 61.6 20.0% • 0.3% pts increase in EBIT margin du
Slide 5: Business Unit Results
Business Unit Results For personal use only 2007/08 2006/07 Sales EBIT Sales EBIT $m $m $m $m Supercheap Auto 558.8 41.5 525.7 37.9 BCF 156.4 7.9 99.1 1.8 Goldcross 0.2 - Group Costs (3.7) (1.6) Total Group 715.4 45.7 624.8 38.1 Group Costs include $2.0m DC relocation costs, $0.5m Goldcross acquisit
Slide 6: Supercheap Auto Results
Supercheap Auto Results For personal use only • 10% EBIT growth due to LFL sales growth 2007/08 change on and cost control $m pcp • LFL growth solid across Australia and New Sales 558.8 6.3% Zealand – builds on 4.1% LFL growth in PCP • Strategic initiatives: LFL Sales 4.8% – 30 stores refurbished –
Slide 7: BCF Results
BCF Results For personal use only • Strong EBIT growth driven by sales growth 2007/08 2006/07 and gross margin impovement $m $m • 49 stores at 28 June – Represented in Qld, NSW, WA, Vic and NT Sales 156.4 99.1 • Sales growth was due to both new stores (18 were opened or acquired during the Gross mar
Slide 8: Group Cash Flow
Group Cash Flow For personal use only 2008 2007 $m $m • Operating cash flows benefited from Operating cash flow 70.3 60.9 payables timing benefit, partly offset by working capital associated with the (pre store set up) distribution centre relocation project New/refurb store set-up (20.7) (26.9) • SC
Slide 9: Group Balance Sheet
Group Balance Sheet For personal use only • SCA average inventory per store has 2008 2007 increased by 5% due to: – Investment in higher value items such as $m $m navigation equipment – Cost price increases in key areas such as batteries and lubricants Inventory • BCF average inventory investment pe
Slide 10: Group Key Financial Ratios
For personal use only Group Key Financial Ratios • EPS has improved with the improved 2008 2007 earnings profile • Ratios are well within covenanted levels and EPS – reported 24.2c 21.0c facility limits are sufficient to meet existing businesses growth requirements Fixed charge cover 1.90x 1.93x • D
Slide 11: Group Strategy Update
For personal use only Super Cheap Auto Group Group Strategy Update 11
Slide 12: Core Strategic Themes
For personal use only Core Strategic Themes • Driving sales and margin growth in Supercheap Auto • Driving sales and margin growth in BCF • Developing the Goldcross business • Developing Procurement and Supply Chain capabilities • Developing Our People 12
Slide 13: Driving Sales and Margin Growth in Supercheap Auto
Driving Sales and Margin Growth in Supercheap Auto For personal use only • Store Development – Opportunities to open up to eight new stores in 2008/09 – Potential remains for 300 stores – Two existing stores to be converted to Superstores – Further enhancement of 2 trial Pitstop stores – Development
Slide 14: Driving Sales and Margin growth in BCF
Driving Sales and Margin growth in BCF For personal use only • Store Development – Three stores opened so far this financial year • Including acquisition of Jurkiewicz Adventure store in Fyshwick – 52 stores trading today • QLD – 22; NSW - 12; WA - 11; VIC - 5; NT – 1; ACT - 1 – Expect to open a fur
Slide 15: Developing the Goldcross business
Developing the Goldcross business For personal use only • Bike Market – Bicycles and Accessories market valued at over $1bn – Bike sales have grown by an average of 10% per annum for the last 4 years – Market expected to continue to grow – Fragmented market • Over 1,300 independent bike stores • Ret
Slide 16: Developing Procurement and Supply Chain Capabilities
Developing Procurement and Supply Chain Capabilities For personal use only • Continuing focus on cost of doing business through Group Logistics – Goal is to reduce Logistics costs as a % of sales by 1.0% pt between FY05 and FY10 – DC Network development increased Group Logistics costs by 0.5% pts in
Slide 17: Developing our People
Developing our People For personal use only • Continuing Investment in People – People costs will increase as a % of sales – Improved customer service will drive customer loyalty => opportunity to continue to reduce marketing spend as a % of sales • Team Member Development – Year 3 of the Business L
Slide 18: Looking Forward
For personal use only Super Cheap Auto Group Looking Forward 18
Slide 19: Looking Forward
Looking Forward For personal use only Supercheap Auto • Expect to open up to eight new stores and refurbish 30 stores during FY08/09 • LFL sales growth in the first 8 weeks of FY08/09 : 2.7% (3.5% in Australia, (2.7)% New Zealand) • Small increment in EBIT margins - savings in logistics costs and so
Slide 20: Full Year FY08 Results Presentation
For personal use only Super Cheap Auto Group Full Year FY08 Results Presentation 20