Super Retail Group Limited · ASX:SUL
Super Retail — Merger or Acquisition (April 2010)
19 slides from Super Retail's merger presentation, Apr 27, 2010
Slide 1: Development of the Leisure Retail Business: Ray's Outdoors
For personal use only Development of the Leisure Retail Business Ray’s Outdoors Peter Birtles, Managing Director 27 April 2010 0 NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, US PERSONS
Slide 2: Important notice
Important notice This presentation (Presentation) has been prepared by Super Cheap Auto Group Limited (ABN 81 108 676 204) (Super Cheap Auto) For personal use only Summary information • This Presentation contains summary information about Super Cheap Auto and its subsidiaries (Super Cheap Auto Group
Slide 3: Important notice
Important notice Past performance For personal use only • Past performance information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. Not an offer • This Presentation is not and should not be consi
Slide 4: Agenda
Agenda For personal use only 1 Transaction highlights 2 Ray’s Outdoors 3 Strategic rationale 4 The new Super Cheap Auto Group 5 Financial summary 6 Funding arrangements 7 Timetable 8 Trading update 9 Key risks 3 NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, US PE
Slide 5: Transaction highlights
Transaction highlights • Super Cheap Auto Group has entered into an agreement to acquire the For personal use only Ray’s Outdoors business of Ray’s Outdoors • Ray’s Outdoors is an outdoor leisure retailer with a broad camping and leisure offering operating through a network of 38 stores in five stat
Slide 6: Ray's Outdoors
Ray’s Outdoors For personal use only Highlights Key metrics • Established 1958, Ray’s Outdoors is one • 38 stores in five states of the most widely recognised camping • One distribution centre (Victoria) and leisure brands in Victoria • Last twelve months sales of c.$125 million • Ray’s Outdoors has
Slide 7: Strategic rationale—complementary brands
Strategic rationale—complementary brands The transaction will create a category leading Leisure Retail business with two For personal use only complementary and distinct brands • Primarily a destination offering—focus is on • Convenience offering—focus is on breadth depth of range in certain segment
Slide 8: Ray's Outdoors
Ray’s Outdoors Ray’s Outdoors’ broad outdoor leisure offering is delivered through a big box format For personal use only 7 NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, US PERSONS
Slide 9: BCF Boating Camping Fishing
BCF Boating Camping Fishing BCF provides a specialised, destination style For personal use only offering for the outdoor enthusiast 8 NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, US PERSONS
Slide 10: Significant growth potential
Significant growth potential The Leisure Retail business will have 103 stores and over $400 million in sales with the For personal use only potential to grow to c.160 stores across Australia and New Zealand and c.$600 million in sales Store footprint BCF store growth c.85 59 65 50 31 15 5 1 23 1 200
Slide 11: Accelerating growth
Accelerating growth Super Cheap Auto Group and Ray’s Outdoors will leverage complementary strengths to For personal use only accelerate the growth of the Company as a whole Growth from scale • The Company has the capacity to finance and support “step change” store roll out for Ray’s Outdoors Improve
Slide 12: The new organisation structure
The new Super Cheap Auto Group For personal use only Peter Birtles (CEO) Gary Carroll (CFO) Ray Frost will remain a consultant to Leisure Retailing Auto and Cycle Retailing Leisure Retailing David Ajala Steve Doyle Chief Operating Officer Chief Operating Officer 266 stores 20 stores 65 stores 38 sto
Slide 13: Financial summary
Financial summary For personal use only Financial summary • Super Cheap Auto Group has the ability grow Ray's Outdoors by 10–15 stores per year over the next three years • In FY2011 Ray’s Outdoors is expected to generate • c.$130 million sales • c.$7.5 million EBIT for the Leisure Retail business •
Slide 14: Funding arrangements
Funding arrangements Super Cheap Auto Group will finance the transaction by an issue of equity For personal use only • Purchase price $54.0 million • $52.5 million to be paid in cash • $1.5 million to be paid in shares • Corresponds to an acquisition multiple of 7.2x FY2011 EBIT • Additional funds r
Slide 15: Timetable
Timetable For personal use only Key events Dates Trading halt and announcement 27 April 2010 Institutional bookbuild 27 April 2010 Existing shares recommence trading 28 April 2010 SPP record date 30 April 2010 Placement settlement date 3 May 2010 Allotment and trading of placement shares 4 May 2010
Slide 16: Trading update
Trading update For personal use only • 266 stores at 27 April 2010 • LFL sales up by 5.6% in the 16 weeks to 24 April building on 9.3% LFL growth in the prior comparative period • EBIT margins continue to track up on PCP in line with first half improvement • 65 stores at 27 April 2010 (2 stores to o
Slide 17: Key risks
Key risks For personal use only • As with Super Cheap Auto Group, the key risk to Ray’s Outdoors is the general retail and economic environment which might result in Ray’s Outdoors’ financial performance being weaker than anticipated • Additional risks connected with the acquisition which might affe
Slide 18: Appendix A
For personal use only Appendix A SECTION 1 17 NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, US PERSONS
Slide 19: Assets to be acquired
Assets to be acquired For personal use only Assets to be acquired (ex Goodwill) under the transaction ($m) Stock 30.01 Fixed assets 12.0 Cash 0.2 Employee liabilities (2.0) Trade creditors2 (7.5) Net assets 32.7 Notes: 1 Subject to stocktake completion adjustment 2 The Vendor is aggregating trade cr
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