Super Retail Group Limited · ASX:SUL
Super Retail — Investor Presentation (February 2016)
25 slides from Super Retail's investor presentation, Feb 26, 2016
Slide 1: Results for the 26 weeks to 26 December 2015
Results for the 26 weeks to 26 December 2015 Peter Birtles | Group Managing Director and Chief Executive Officer David Burns | Chief Financial Officer 26th February 2016
Slide 2: Contents
Contents 2015/16 1st Half Performance 2015/16 Full Year Outlook Group Strategy
Slide 3: Group Highlights
Group Highlights • Group Total Segment Sales up by 6.0% Sales LFL 15/16 14/15 13/14 12/13 11/12 SCA 3.9% 2.1% 2.3% 5.2% 3.5% • NPAT attributable to owners up by 33.6% Leisure(1) 2.6% (4.7%) 0.5% 2.6% 9.9% • Group Normalised NPAT down by 2.2% Sports(2) 6.1% 6.1% 5.5% 8.3% 7.8% (1) BCF and Rays, BCF o
Slide 4: Performance Trends
Performance Trends Reported Sales ($m) Reported Total Segment EBIT ($m) 1,216 1,159 1,096 1,037 759 99.8 101.1 94.1 93.1 562 464 61.6 366 413 41.4 21.8 23.6 28.3 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Reported EPS
Slide 5: Group Results
Group Results • Strong performance across all key metrics in the Auto 2015/16 Change and Sports divisions $m on PCP • Leisure division has delivered solid sales growth Total Sales 1,215.5 6.0% however gross margin performance is below expectations Total Segment EBITDA 124.9 (0.7%) • Total Segment EB
Slide 6: Divisional Results
Divisional Results 2015/16 2014/15 Sales Segment Sales Segment EBIT EBIT $m $m $m $m Auto Segment 457.7 48.7 431.5 44.2 Leisure Segment 302.3 13.4 290.5 22.3 Sports Segment 452.0 42.6 421.5 38.9 Group & Unallocated 3.5 (11.6) 3.6 (9.0) Total Segment Result 1,215.5 93.1 1,147.1 96.4 Segment Result is
Slide 7: Auto Retailing
Auto Retailing • Strong LFL sales growth momentum of 3.9% 2015/16 Change on tracking ahead of 3% target $m PCP • Like for like sales growth was delivered in all business units with particular strong growth in the Sales 457.7 6.1% Auto maintenance business unit • Sales growth driven by increase in tr
Slide 8: Leisure Retailing
Leisure Retailing • Like for like sales increase of 2.6% with BCF at 2015/16 Change on 3.1% and Rays at 1.0% $m PCP (1) • BCF total sales growth of 6.2% driven by unit growth of 8.8% offset by a decline in average item Sales 302.3 4.1% value of 2.4% • BCF growth achieved despite challenging demand c
Slide 9: Ray’s Transformation Plan
Ray’s Transformation Plan • The key challenge is to establish a sustainable profitable business model and to transition as efficiently as possible to this model • The early performance of the three new format trial stores has been encouraging and a further five stores will be trialed in the second h
Slide 10: Sports Retailing
Sports Retailing • Total Sales growth in Rebel and Amart Sports has 2015/16 Change on been strong with total transaction growth of 5.1% $m PCP and average transaction value growth of 3.4% • Solid LFL growth across all major categories with Rebel, Amart Sports and Workout World particularly strong pe
Slide 11: Group & Unallocated
Group & Unallocated • Group and Unallocated includes: 2015/16 Change on Commercial Operations $m PCP Super Retail Commercial Oceania Bicycles Sales 3.5 (2.8%) Digital Businesses Fixed Price Car Service $m Youcamp Aussie Outdoors Gross Profit (2.9) 1.0 Group costs not allocated to seg
Slide 12: Group Cash Flow
Group Cash Flow 2015/16 2014/15 • Strong underlying operating cash flow performance has funded investment in new $m $m stores and operational capital expenditures Operating cash flow 197.2 148.9 • New and refurbished store investment of (pre store set up investment) $53.2m is fully funded out of ope
Slide 13: Group Balance Sheet
Group Balance Sheet • Inventory has been well controlled given the Dec 15 Jun 15 impact of currency inflation and the increase in $m $m private and exclusive brands Inventory • Inventory units per store is below PCP - Auto Retailing 211.8 183.3 • SCA average $ inventory per store is in line with Dec
Slide 14: Returns & Capital Ratios
Returns & Capital Ratios • Total EPS from continuing operations has 2015/16 2014/15 declined by 24% due to the inclusion of the impairment of the Ray’s Outdoors brand name EPS - total 22.8c 17.0c • All bank debt funding is non-current at December 2015 EPS - continuing operations 22.8c 27.8c • Fixed
Slide 15: Segment Note 2015/16
Segment Note 2015/16 Total Inter-segment continuing eliminations/ For the period ended 26 December 2015 Auto Leisure Sports operations unallocated Consolidated $m $m $m $m $m $m Segment Revenue and Other Income (1) External segment revenue 457.7 302.3 452.0 1,212.0 3.8 1,215.8 Inter segment sales -
Slide 16: Segment Note 2014/15
Segment Note 2014/15 Total Inter-segment (1) Restated continuing eliminations/ For the period ended 27 December 2014 Auto Leisure Sports operations unallocated Consolidated $m $m $m $m $m $m Segment Revenue and Other Income (2) External segment revenue 431.5 290.5 421.5 1,143.5 5.1 1,148.6 Inter seg
Slide 17: Contents
Contents 2015/16 1st Half Performance 2015/16 Full Year Outlook Group Strategy
Slide 18: Full Year Outlook
Full Year Outlook Auto Retailing • LFL sales growth in the first 8 weeks of H2 is circa 4% • Full year Segment EBIT margin expected to show similar improvement on PCP to the 1st half • SCA store development: 4 new stores, 29 refurbishments, extensions and relocations Leisure Retailing • LFL sales gr
Slide 19: Contents
Contents 2015/16 1st Half Performance 2015/16 Full Year Outlook Group Strategy
Slide 20: Our Strategic Roadmap
Our Strategic Roadmap OUR VISION Inspiring you to live your passion To provide solutions and engaging experiences that enable our customers OUR PURPOSE to make the most of their leisure time To achieve the To achieve higher To provide returns To be one of the 5 highest Team customer OUR GOALS larges
Slide 21: Strategic Pillars
Strategic Pillars OUR STRATEGIC PILLARS Customer Solutions that Leading private Agile & Strong and engage and Engaged and understanding inspire our and exclusive efficient supply efficient brands capable team and insight customers chain foundations OUR DELIVERY Auto Leisure Sports Commercial 21
Slide 22: Strategic Pillars
Strategic Pillars Customer Understanding and Insight Use customer insight to maximise customer lifetime • Auto club membership now at over 1.4 million – 1.1 million active; value club members represent circa 32% of sales Generate and share insights • BCF/Rays club membership now at 3.3 million – 1.4
Slide 23: Strategic Pillars
Strategic Pillars Solutions that Engage and Inspire our Customers Achieve higher customer satisfaction ratings in our markets • Driving customer endorsement – delivering improvement in Net Provide product solutions Promoter Score how, when and where the • Continued significant investment in new stor
Slide 24: Strategic Pillars
Strategic Pillars Agile and Efficient Supply Chain Deliver in line with business • Targeting reduction in supply chain costs of $20m, net working capital and customer expectations reduction of between $75 and $100 million and in stock levels of greater than 96.5% Operate supply chain at best • Conti
Slide 25: Delivering our Financial Targets
Delivering our Financial Targets 5 Year Target Store Numbers LFL Growth EBIT Margin Pre Tax ROC % * Auto 350 >3% PA 12% > 50% Leisure 220 >3% PA 11% > 30% Sports 250 >4% PA 11% > 30% * excludes acquired goodwill and brand names Opportunities Challenges • Growing store numbers to over 800 • Lower dom
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