Super Retail Group Limited · ASX:SUL
Super Retail — Investor Presentation (June 2020)
32 slides from Super Retail's investor presentation, Jun 15, 2020
Slide 1: Investor Presentation: COVID-19 impacts and trading update, strategy execution and equity raising
Super Retail Group Limited 20 INVESTOR PRESENTATION 20 COVID-19 impacts and trading update, strategy execution and equity raising Authorised for release by the Super Retail Group Board Inspiring you to NOT FOR RELEASE TO U.S. WIRE SERVICES OR DISTRIBUTION live your passion IN THE UNITED STATES OF AM
Slide 2: Important notice and disclaimer
Important notice and disclaimer The following important notice and disclaimer applies to this investor presentation (“Presentation”) and you are therefore advised to read this carefully before reading or making any other use of this Presentation or any information contained in this Presentation. By
Slide 3: Important notice and disclaimer (cont.)
Important notice and disclaimer (cont.) Financial data and rounding Investors should note that this Presentation contains pro forma financial information. The pro forma financial information provided in this Presentation is for illustrative purposes only and is not represented as being indicative of
Slide 4: Important notice and disclaimer (cont.)
Important notice and disclaimer (cont.) Past performance Past performance and pro forma historical information in this Presentation is given for illustrative purposes only and should not be relied upon (and is not) an indication of future performance including future share price information. Market
Slide 5: Important notice and disclaimer (cont.)
Important notice and disclaimer (cont.) In connection with the capital raising, one or more investors may elect to acquire an economic interest in the New Shares (“Economic Interest”), instead of subscribing for or acquiring the legal or beneficial interest in those shares. The lead managers (or the
Slide 6: Agenda
Agenda 1 EXECUTIVE SUMMARY 2 COVID-19 IMPACTS AND TRADING UPDATE 3 STRATEGY EXECUTION EQUITY RAISING OVERVIEW AND BALANCE 4 SHEET UPDATE 5 KEY DETAILS OF THE OFFER Super Retail 6
Slide 7: Executive Summary
Executive Summary S U P E R R E TA I L ' S C O R E 4 B R A N D S A R E W E L L P O S I T I O N E D T O B E N E F I T F R O M C H A N G I N G C O N S U M E R T R E N D S • Super Retail has responded promptly to protect the health and safety of team members and customers and to introduce cost, cash fl
Slide 8: Response to COVID-19
Response to COVID-19 P R O T E C T I N G T H E H E A L T H A N D W E L L B E I N G O F T E A M M E M B E R S , C U S T O M E R S A N D T H E C O M M U N I T Y, W H I L E M A N A G I N G C O S T S , P R E S E R V I N G C A S H A N D A C C E L E R AT I N G S U P E R R E TA I L ' S O M N I - R E TA I L
Slide 9: Well positioned to benefit from consumer response to COVID-19
Well positioned to benefit from consumer response to COVID-19 S U P E R R E TA I L’ S C O R E 4 B R A N D S A R E W E L L - P L A C E D T O B E N E F I T F R O M O B S E R V E D C H A N G E S I N C O N S U M E R B E H AV I O U R COVID-19 impact on consumer Impact on sales during COVID-19 Expected tr
Slide 10: Group trading update
Group trading update F O L L O W I N G A D E C L I N E I N A P R I L , G R O U P S A L E S H A V E R E B O U N D E D S T R O N G L Y I N M AY LFL sales growth Sales ($m) Total Sales on pcp Mar 2020 YTD May 2020 YTD May 2020 YTD May 2020 YTD Segment Weeks 39-471 (weeks 1-38)1 (weeks 1-47)1 (weeks 1-4
Slide 11: Segment trading update
Segment trading update C O R E F O U R B R A N D S D E L I V E R E D A S T R O N G S A L E S R E B O U N D I N M AY A S C O V I D - 1 9 R E S T R I C T I O N S E A S E D A N D A R E FAV O U R A B LY P O S I T I O N E D T O B E N E F I T F R O M N E A R T E R M C O N S U M E R T R E N D S Weeks 39-47
Slide 12: Our Strategy
Our Strategy THE THREE PRIMARY VALUE LEVERS FOCUS ON GROW BE AN ORGANIC ANNUAL EFFICIENT GROWTH & CUSTOMER OMNI- CAPITAL VALUE RETAILER DISCIPLINE 5 STRATEGIC DRIVERS GROW THE CORE LEVERAGE CLOSENESS CONNECTED OMNI- SIMPLIFY THE EXCEL IN OMNI- 4 BRANDS TO OUR CUSTOMER RETAIL SUPPLY CHAIN BUSINESS RE
Slide 13: Strategy execution remains on track
Strategy execution remains on track GROW THE CORE LEVERAGE CLOSENESS CONNECTED OMNI- SIMPLIFY THE EXCEL IN OMNI- 4 BRANDS TO OUR CUSTOMER RETAIL SUPPLY CHAIN BUSINESS RETAIL EXECUTION Current Focus Areas • New concept Rebel • Investment in analytical • Consolidation of Rebel • Senior Leadership team
Slide 14: Strategy robust throughout COVID-19
Strategy robust throughout COVID-19 GROW THE CORE LEVERAGE CLOSENESS CONNECTED OMNI- SIMPLIFY THE EXCEL IN OMNI- 4 BRANDS TO OUR CUSTOMER RETAIL SUPPLY CHAIN BUSINESS RETAIL EXECUTION COVID–specific actions • Alignment of category and • Customer behavioural • DC assets leveraged to • Seamless shift
Slide 15: Equity Raising overview
Equity Raising overview T H E E Q U I T Y R A I S I N G W I L L E N A B L E S U P E R R E TA I L T O C O N T I N U E T O E X E C U T E I T S S T R AT E G Y A N D P U R S U E S T R AT E G I C G R O W T H I N I T I AT I V E S Equity Raising • Super Retail is raising approximately $203m through an unde
Slide 16: Balance sheet update
Balance sheet update P R O F O R M A F O R C O M P L E T I O N O F T H E E Q U I T Y R A I S I N G , N E T D E B T A T M AY M O N T H E N D R E D U C E S T O C . $ 1 0 M • Net debt at December 20191 was c.$252m Adjusted capital structure (Pro Forma Dec 2019)1 − Pro-forma for the Equity Raising4, net
Slide 17: Pro forma balance sheet as at 28 December 2019
Pro forma balance sheet as at 28 December 2019 28 December 2019 28 December 2019 Pro forma post $m Impact of Equity Raising3 (Pre-AASB16)1 (Statutory)2 Equity Raising Cash and cash equivalents 57 57 - 57 Trade and other receivables 52 49 - 49 Inventories 621 621 - 621 Property, plant and equipment 2
Slide 18: Details of the offer
Details of the offer • Underwritten 1 for 7 accelerated pro rata non-renounceable entitlement offer to raise approximately $203m (Equity Raising or Offer) Offer structure • Approximately 28.2 million new fully paid ordinary shares in Super Retail (New Shares) to be issued under the Equity Raising, r
Slide 19: Entitlement offer timetable
Entitlement offer timetable Event1 Date (2020) Announcement of Offer, Institutional Entitlement Offer opens Monday, 15 June Institutional Entitlement Offer closes Monday, 15 June Trading halt is lifted and trading resumes on an "ex-entitlement" basis Tuesday, 16 June Record date for the Offer (7:00p
Slide 20: Appendix
Appendix A KEY RISKS B INTERNATIONAL OFFER RESTRICTIONS Super Retail
Slide 21: Key risks
Key risks Super Retail Group’s financial position and performance, its dividends and the market price of Super Retail Group’s shares may be adversely affected, sometimes materially, by a number of risk factors. Holders of Super Retail Group shares (“Super Retail Group Shareholders”) should according
Slide 22: Key risks (cont.)
Key risks (cont.) Changing consumer preferences and buying patterns The markets in which Super Retail Group competes (being automotive parts and accessories and outdoor, sporting and leisure goods) are subject to changing consumer preferences and buying patterns, including as a result of new technol
Slide 23: Key risks (cont.)
Key risks (cont.) Security or privacy of data As a retailer, the protection of customer, employee, third party and company data is critical to Super Retail Group’s operations. Super Retail Group has access to customer, employee and third party information, including as a result of its database of cu
Slide 24: Key risks (cont.)
Key risks (cont.) Relationship with suppliers and trade partners Super Retail Group relies on numerous key suppliers and trade partners in Australia, New Zealand, China and other foreign jurisdictions. Any loss of these key suppliers and trade partners or a change in their ability to perform their o
Slide 25: Key risks (cont.)
Key risks (cont.) Property leases Super Retail Group has a large number of leased premises. The growth prospects of Super Retail Group are partly dependent on increased contribution from existing stores, Super Retail Group’s ability to continue to open and operate new stores on a profitable basis an
Slide 26: Key risks (cont.)
Key risks (cont.) General and Offer Risks Market There are risks associated with any investment in listed securities. The market price of listed securities such as Super Retail Group shares is affected by numerous factors. These factors include but are not limited to: • the impact of COVID-19, or ot
Slide 27: Key risks (cont.)
Key risks (cont.) The events which may trigger termination of the Underwriting Agreement include (but are not limited to) the following: • the ASX/S&P 200 Index falls: • 12.5% or more from its level at market close on the last trading day immediately preceding the date of the Underwriting Agreement
Slide 28: Key risks (cont.)
Key risks (cont.) • the commencement of legal proceedings against Super Retail Group or any member of Super Retail Group, or any of their directors in that capacity; • a government agency commences any enquiry or public action against Super Retail Group, any members of Super Retail Group, the chief
Slide 29: Appendix
Appendix A KEY RISKS B INTERNATIONAL OFFER RESTRICTIONS Super Retail
Slide 30: International offer restrictions
International offer restrictions This document does not constitute an offer of New Shares in Super Retail Group in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold in the institutional ent
Slide 31: International offer restrictions (cont.)
International offer restrictions (cont.) Language of documents in Canada. Upon receipt of this document, each investor in Canada hereby confirms that it has expressly requested that all documents evidencing or relating in any way to the sale of the New Shares (including for greater certainty any pur
Slide 32: International offer restrictions (cont.)
International offer restrictions (cont.) Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other document or materia
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