Super Retail Group Limited · ASX:SUL
Super Retail — FY2016 Earnings Presentation
26 slides from Super Retail's earnings presentation, Aug 26, 2016
Slide 1: Results for the 53 weeks to 2nd July 2016
For personal use only Results for the 53 weeks to 2nd July 2016 Peter Birtles Group Managing Director and Chief Executive Officer David Burns Chief Financial Officer 26 August 2016
Slide 2: Contents
For personal use only Contents 2015/16 Financial Results 2016/17 Trading Update Group Strategy
Slide 3: Group Highlights
Group Highlights Sales LFL 15/16 (2) 14/15 13/14 12/13 • Total group sales up by 8.2% For personal use only • Segment EBITDA up by 6.4% Auto 4.4% 2.2% 2.4% 5.0% Leisure 4.4% -0.6% -0.8% 2.9% • Normalised NPAT of $108.6 million up 2.2% Sports(1) 6.3% 6.6% 2.6% 8.0% (1) Rebel and Amart only 2015/16 re
Slide 4: Performance Trends
Performance Trends Reported Sales ($m) Reported Total Segment EBIT For personal use only ($m) 2,422 2,239 182.6 2,020 2,112 172.3 175.3 170.2 1,654 140.7 1,092 87.5 938 829 65.8 715 55.1 45.7 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Jun
Slide 5: Performance Trends
Performance Trends Team For personal use only Team Engagement Safety Team Retention Lost Time Injury Frequency Rate 71.0 75% 75% 68.0 13.2 6.8 Jun 15 Jun 16 Jun 15 Jun 16 Jun 15 Jun 16 Customer Average Net Active Club Customer Promoter Score Members Transactions 42.8M 44.8M 43.1% 4.5M 36.9% 3.9M Jun
Slide 6: Group Results
Group Results • Total Sales growth above market in all Divisions 2015/16 Change on For personal use only through a combination of new stores and solid like $m PCP for like growth Total Sales 2,422.2 8.2% • Group segment EBITDA increase driven by strong growth in Auto and Sports dampened by Leisure T
Slide 7: Segment Results
For personal use only Segment Results 2015/16 2014/15 Sales Segment EBIT Sales Segment EBIT $m $m $m $m Auto Segment 922.8 104.6 854.3 96.0 Leisure Segment 581.9 18.6 543.2 32.3 Sports Segment 910.2 77.8 835.0 65.6 Group & Unallocated 7.3 (25.7) 6.2 (23.7) Total Segment Result 2,422.2 175.3 2,238.7
Slide 8: Auto Retailing
Auto Retailing • Strong like for like sales growth of 4.4% across all key 2015/16 Change on For personal use only metrics – driven by transactions and units. Second half $m PCP sales growth stronger than first half Sales 922.8 8.0% • Like for like sales growth was achieved in all business units with
Slide 9: Leisure Retailing
Leisure Retailing • Strong like for like sales growth of 4.4% with BCF at 5.5% 2015/16 Change on For personal use only and Ray’s Outdoors/Rays at 1.3% $m PCP • BCF performance improving significantly in the 2nd Sales 581.9 7.1% half as revised pricing and promotional strategies implemented LFL Sales
Slide 10: Leisure Performance Plan Update
Leisure Performance Plan Update BCF RAYS For personal use only 1st half 2nd half • Ray’s Outdoors closures completed in Tasmania, Western Australia and South LFL Sales growth 3.1% 8.2% Australia Gross margin vs pcp -3.6% -1.2% • Closures in Queensland, New South Wales and Victoria due to complete la
Slide 11: Sports Retailing
Sports Retailing RebelFIT • Total Sales growth in Rebel and Amart Sports driven by 2015/16 Change on total transaction growth of 3.2% and average For personal use only $m PCP transaction value growth of 3.3% Rebel, Amart Sports and Workout World • Strong LFL growth across all major categories with S
Slide 12: Group & Unallocated
Group & Unallocated • Group and Unallocated includes: 2015/16 Change on For personal use only $m PCP • Corporate costs not allocated to segments • Commercial Operations Sales 7.3 17.7% • Super Retail Commercial • Oceania Bicycles $m • Digital Businesses EBITDA (25.3) (2.3) • Fixed Price Car Service
Slide 13: Group Cash Flow
Group Cash Flow • Operating cash flow (pre store set up investment) 2015/16 2014/15 For personal use only $m $m is circa $26m higher than PCP on a LFL basis (excluding week 53 net payments) Operating cash flow (pre store set up 184.4 196.2 • Strong underlying operating cash flow investment) performa
Slide 14: Group Balance Sheet
Group Balance Sheet • Inventory performance has been sound Jun 16 Jun 15 For personal use only accommodating an increased cost base from $m $m Australian dollar weakening and growth in private brand volumes Inventory - Auto Retailing • SCA average $ inventory per store is consistent with 188.7 183.3
Slide 15: Returns & Capital Ratios
Returns & Capital Ratios • All debt funding is compliant with financial 2015/16 2014/15 For personal use only covenants Normalised EPS 55.1c 54.0c • Fixed charge cover ratio based on reported EBITDAL is 1.69 which is above covenant Basic EPS from continuing 31.8c 41.2c • Average net debt improvement
Slide 16: Segment Note 2015/16
Segment Note 2015/16 Total Inter-segment continuing eliminations/ For personal use only For the period ended 2 July 2016 Auto Leisure Sports operations unallocated Consolidated $m $m $m $m $m $m Segment Revenue and Other Income External segment revenue 922.8 581.9 910.2 2,414.9 7.9 2,422.8 Inter seg
Slide 17: Segment Note 2014/15
Segment Note 2014/15 Total Inter-segment continuing eliminations/ For personal use only For the period ended 27 June 2015 Auto Leisure Sports operations unallocated Consolidated $m $m $m $m $m $m Segment Revenue and Other Income External segment revenue 854.3 543.2 835.0 2,232.5 8.2 2,240.7 Inter se
Slide 18: Contents
For personal use only Contents 2015/16 Financial Results 2016/17 Trading Update Group Strategy
Slide 19: 2016/17 Trading Update
2016/17 Trading Update Auto Retailing For personal use only • LFL sales growth in the first 7 weeks of 2016/17 circa 3.5% • SCA store development: plan to open 15 new stores and close one store, 50 refurbishments, extensions and relocations Leisure Retailing • LFL sales growth in the first 7 weeks o
Slide 20: Contents
For personal use only Contents 2015/16 Financial Results 2016/17 Trading Update Group Strategy
Slide 21: 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 22: Strategic Pillars
Strategic Pillars TODAY 5 YEAR PLAN For personal use only Market leading retail brands in all Group wide focus on driving our categories (apart from outdoor customer endorsement through adventure) team and customer engagement Solutions that engage and Strong portfolio of existing stores Opening circ
Slide 23: Strategic Pillars
Strategic Pillars TODAY 5 YEAR PLAN For personal use only Deep understanding of our target Growing active membership and customers across all categories lifetime value Customer Understanding Large active membership of loyalty Strengthening in-house capabilities programs: to generate insights to impr
Slide 24: Strategic Pillars
Strategic Pillars TODAY 5 YEAR PLAN For personal use only Distribution centre and freight $20m cost savings driven through network to support business plans productivity, freight efficiencies and are built and operational sports integration Agile and Efficient Supply Best of breed warehouse Further
Slide 25: Strategic Pillars
Strategic Pillars TODAY 5 YEAR PLAN For personal use only Strong cost control disciplines $10m group wide procurement and across the Group productivity savings program Strong, Sustainable and Strong performance framework Developing performance and IT infrastructure that supports management framework
Slide 26: 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