Super Retail Group Limited · ASX:SUL
Super Retail — Super Cheap Auto Group — H1 2010 Earnings Presentation
19 slides from Super Retail's earnings presentation, Feb 18, 2010
Slide 1: Results for the 26 weeks to 26 December 2009
For personal use only Super Cheap Auto Group Results for the 26 weeks to 26 December 2009 Peter Birtles, Managing Director Gary Carroll, Chief Financial Officer 18th February 2010
Slide 2: Group Highlights
Group Highlights For personal use only • Group Net Profit After Tax up by 14.5% over PCP • Group EBIT up by 20.1% over PCP before goodwill impairment • Group Sales up by 12.3% over PCP • Supercheap Auto and BCF operational performance • Strong like for like sales growth • Growth in gross margins • S
Slide 3: Performance Trends
Performance Trends For personal use only Sales ($m) EBIT ($m) 463.6 28.3 412.8 23.6 365.7 21.8 312.3 264.7 16.0 11.1 Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 EPS (cents) Post Tax ROC (%) 14.4 12.7 17.0 11.7 15.2 15.6 13.7 8.5 8.8 5.6 Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 De
Slide 4: Group Results
Group Results For personal use only • Strong performance driven by top-line growth 2009/10 Change and gross margin improvement $m on pcp • Solid sales growth in both SCA and BCF through both new store and LFL growth Sales 463.6 12.3% • EBIT margin growth in SCA and BCF EBITDA 38.3 18.9% • Group NPAT
Slide 5: Business Unit Results
Business Unit Results For personal use only 2009/10 2008/09 Sales EBIT * Sales EBIT $m $m $m $m Supercheap Auto 326.0 22.4 302.6 19.5 BCF Boating Camping Fishing 125.5 11.4 101.6 7.9 Goldcross Cycles 12.2 (3.5) 8.6 (1.6) Group Costs ** (1.9) (2.2) Total Group 463.6 28.3 412.8 23.6 * - excludes goodw
Slide 6: Supercheap Auto results
For personal use only • 15.3% EBIT growth due to LFL sales growth 2009/10 change on and gross margin improvement $m pcp • LFL growth solid across Australia and New Zealand – builds on LFL growth of 4.5% in PCP Sales 326.0 7.7% • Store Development: • 25 stores refurbished, including 1 superstore LFL
Slide 7: BCF Boating Camping Fishing results
For personal use only 2009/10 change on • 4 stores opened and one acquired during the pcp year to bring total stores to 64 $m • Strong LFL growth across all regions as BCF Sales 125.5 23.4% continues to build its standing as the destination store in each market – builds on LFL growth of 6.8% in PCP
Slide 8: Goldcross Cycles results
For personal use only 2009/10 2008/09 • 3 stores were fully refurbished and 6 stores undertook layout/flow changes during the half $m $m • Sales performance below expectations: Sales 12.2 8.6 • Melbourne stores were particularly challenged, given prior year boost through clearance of discontinued br
Slide 9: Group Cash Flow
Group Cash Flow For personal use only 2010 2009 • Operating cash flow continues to be ahead of EBITDA through focus on working capital $m $m management Operating cash flow 59.2 59.4 • Total growth investment of $27m being fully funded out of operating cash flows (pre store set up investment) New sto
Slide 10: Group Balance Sheet
Group Balance Sheet For personal use only Dec 09 Jun 09 $m $m • SCA average inventory of $567k per store Inventory down by 3.4% compared to PCP, with continued focus on supply chain efficiencies - SCA 150.3 142.5 offsetting the increased stock weight of - BCF 76.2 64.5 higher value products - Goldcr
Slide 11: Returns & Capital Ratios
Returns & Capital Ratios For personal use only • Improvement in EPS and fixed charge 2010 2009 coverage ratio reflect the improved profit performance • Fixed charge cover ratio calculation EPS – reported 14.4c 12.7c excludes benefit of mark to market interest rate swap adjustment Fixed charge cover
Slide 12: Group Strategy Update
For personal use only Super Cheap Auto Group Group Strategy Update
Slide 13: Supercheap Auto five-year strategy
For personal use only (5 year goal) NETWORK LFL SALES MARGIN ROC EXPANSION GROWTH GROWTH GROWTH (300 STORES) (> 3% PA) (8% EBIT) (> 30%) Multi Format New Refurbishment Program Direct Sourcing Inventory Optimisation Store Program : - Circa 40 stores pa Circa 5 stores pa - Up to $7 m cap ex Supply Cha
Slide 14: BCF five-year strategy
For personal use only (5 year goal) NETWORK LFL SALES MARGIN ROC EXPANSION GROWTH GROWTH GROWTH (80 STORES) (> 5% PA) (9% EBIT) (> 25%) New Store Program : Category Opportunities Direct Sourcing Inventory Optimisation - 16 New BCF Stores - Water Sports / Kayak - New Formats - Trailer Camping Supply
Slide 15: Goldcross Cycles five-year strategy
For personal use only (5 year goal) NETWORK LFL SALES MARGIN ROC EXPANSION GROWTH GROWTH GROWTH (50 STORES) (> 5% PA) (8% EBIT) (> 21%) New Store Program : Range Development Direct Sourcing New Channel Supply Chain Development: Own Brand Development - E-Commerce Development - Master Data Mgt Store F
Slide 16: Goldcross Cycles Business Development Plan
Goldcross Cycles Business Development Plan For personal use only Target Business Model Action Plan • Core Customers: • Store Development • Get Fit • Relocate or reduce space in 8 of 18 existing stores • Family activity – kids growing up • Complete store refurbishment rollout in 10/11 • Get outside /
Slide 17: Team Member Development
Team Member Development For personal use only (5 year goal) ATTRACTION RETENTION SATISFACTION SAFETY SUCCESSION (<4 weeks vacancies) (>75%) (>77.5%) (LTIs < 0.15%) (> 70%) Team Member Knowledge and Skills Development Business Leadership Academy Team Member Value Proposition Development Human Resourc
Slide 18: Looking Forward
For personal use only Super Cheap Auto Group Looking Forward
Slide 19: Looking Forward
Looking Forward For personal use only Supercheap Auto • Expect to open two new stores and refurbish 5 stores during the 2nd half • LFL sales growth in the first 7 weeks of 2nd half circa 8% • Full year EBIT margins expected to be up on PCP BCF Boating Camping Fishing • Expect to open four new stores
Super Cheap Auto Group — H1 2010 Earnings Presentation on 6ix