Spar Group Limited · JSE:SPP
Spar — The SPAR Group — Investor Day (April 2025)
14 slides from Spar's investor day presentation, April 2025
Slide 1: My SPAR, Our Tomorrow: Business & Strategic Overview
My SPAR, Our Tomorrow Business & Strategic Overview Angelo Swartz - Group CEO
Slide 2: SPAR at a glance
SPAR at a glance Ireland and South West England Switzerland • R16 billion turnover* • R41 billion turnover* • 1 distribution centre o Ireland R35 billion | UK R6 billion • 11 Cash & Carry • 3 distribution centres o Ireland 1 | UK 2 Southern Africa Sri Lanka (joint venture) • R96 billion turnover* •
Slide 3: The Evolution of The SPAR Group Ltd
The Evolution of The SPAR Group Ltd Portfolio review underway Voluntary Trading Origins in Grocery, Model (the only which extended to one in SA) Liquor, Building Materials and Wholesaler business model Pharmacy International expansion: Formed 1963 (merger of 6-8 independent BWG Group (2014) wholesal
Slide 4: Competitive positioning in major retail categories
Competitive positioning in major retail categories Ireland & South-West Grocery Liquor Building/ DIY Pharmacy Switzerland England (61 years) (20 years) (30 years) (7 years) (9 years) (11 years) • SPAR • SPAR • SPAR • Pharmacy at SPAR • EUROSPAR • KWIKSPAR • EUROSPAR •Tops! • Build it • Consumer Heal
Slide 5: Update on Swiss sanction process
My SPAR, Our Tomorrow Update on Swiss sanction process
Slide 6: Switzerland – intention to sanction
Switzerland – intention to sanction Further procedural steps Exceptionally: Substantial revision of SOB → must be provided to parties for additional comments Spar: Comments to SOB: - Spar: Appeal to Federal Spar: Appeal to Federal February 2025 Administrative Court Supreme Court Hearing before Issua
Slide 7: The future of SPAR
My SPAR, Our Tomorrow The future of SPAR 7
Slide 8: Where we come from..
Where we come from.. Revenue (R’m) & Operating Profit Margin (%) Over the past two years, SPAR has 160,0 3,0% faced market and operational 2,8% 2,7% challenges 140,0 2,5% 2,5% 120,0 • A constrained macro-environment 1,9% 100,0 1,7% 2,0% across territories • High debt leverage 80,0 146,5 152,3 1,5% •
Slide 9: KZN DC Update
KZN DC Update KZN has returned to profitability Future Rollouts & Risk Mitigation Retailer experience improved - delivering fulfilment rates >90% Several post-implementation reviews conducted Margin visibility addressed SAP Steering Committee has been overhauled CSnx chosen as warehouse management s
Slide 10: European Strategic Review
European Strategic Review Review ongoing – to be completed June 2025 Guiding principle • Maintaining positive ROIC-WACC spread essential for long term sustainability • Where returns are not justified in the capital allocated, need to review operational and investment strategies Review focused on UK
Slide 11: Our formula for future success
Our formula for future success We are good at SUPPORTING independent retailing • +60 year track record across 4 categories (Grocery, Liquor, Our Ambition: Building, Pharmacy) • Collaboration – relentless focus on retailer success Unleash the Power of Independent Retail • Expertise We are UNIQUELY PO
Slide 12: But first we need the building blocks in place..
But first we need the building blocks in place.. Enabling growth Progress • Poland exit complete Disposals • European strategic review underway – to be completed June 2025 • Reduction of net debt to R9 billion Capital • Multiple levers underway to further reduce structure debt and reach targeted gea
Slide 13: Key Priorities
Key Priorities Harden Grow Clarify Portfolio review Format & Brand architecture SPAR Profitability Culture Review of TOM^ and Retail profitability Store expansion Group structure Execute! Driving SPAR 2U IT transformation Launch of VAS* (Flex, SPAR Mobile, Retail Media ^Target Operating Model *Value
Slide 14: My SPAR, Our Tomorrow Q&A
@® My SPAR, Our Tomorrow < vet