Shoprite Holdings Limited · JSE:SHP
Shoprite — H1 2010 Earnings Presentation
21 slides from Shoprite's earnings presentation, February 2010
Slide 1: Results Presentation
Results Presenta,on 1 For the 6 months ended 31 December 2009
Slide 2: Agenda
Agenda • Financial Highlights • Opera<ng Overview • Furniture • Business Overview • Ques<ons 2
Slide 3: Financial Highlights
Financial Highlights Carel Goosen Deputy Managing Director 3
Slide 4: Size of Operation
Size of Opera,on Turnover R33 bn Owned Outlets 1,137 Franchise Outlets 276 Countries 17 Employees 89,000 Market Capitalisa<on R40 bn* *During February 2010 4
Slide 5: Financial Results
Financial Results Turnover R 33,1bn Trading Profit R 1,7bn Trading Margin 5.0% Diluted Headline EPS 208.5c Dividend per share 80.0c 5
Slide 6: Key Information
Key Informa,on • Turnover – Total – Supermarkets RSA – Supermarkets Non-‐RSA – Furniture – Other Opera<ng Segments • Trading Profit – Total – Supermarkets RSA – Supermarkets Non-‐RSA – Furniture – Other Opera<ng Segments 6
Slide 7: Key Information
Key Informa,on • Diluted Headline EPS + 13.3% to 208.5c • Dividends per share + 14.3% to 80.0c 7
Slide 8: Value Added Statement (R'm)
Value Added Statement (R’m) • Employees 3,159 • Providers of Capital 694 • Tax 571 • Re-‐invested 819 16% 11% Re-‐invested 60% 13% Tax Providers of Capital Employees 8
Slide 9: Sales Growth Analysis
Sales Growth Analysis Exis,ng Net new Total stores stores Supermarkets RSA 9.1% 5.5% 14.5% Supermarkets Non-‐RSA (9.4%) 5.0% (4.3%)* Furniture 4.5% 6.9% 11.5% Other Opera<ng Segments 1.3% 8.8% 10.1% *16.3% in constant currencies 9
Slide 10: Store Portfolios
Store PorLolios Jul 2009 Opened Closed Dec 2009 Supermarkets 695 53 (5) 743 Hungry Lion 120 5 (2) 123 Furniture 264 9 (2) 271 Owned Stores 1,079 67 (9) 1,137 Franchise 270 14 (8) 276 Total Stores 1,349 81 (17) 1,413 Pharmacies 81 19 -‐ 100 Liquor Stores 48 24 -‐ 72 Countries 17 -‐ -‐ 17 10
Slide 11: Highlights of Results
Highlights of Results Gross profit margin • Maintain low margins on basic foods • Alleviate impact of the downturn in the economy on consumers • Resul<ng in sa<sfactory sales volumes 11
Slide 12: Highlights of Results
Highlights of Results Other opera,ng income Dec 2008 Dec 2009 Growth increased by 11.4% R’m R’m % Finance income earned 93 101 9.2 Net premiums earned 100 112 12.0 Opera<ng lease income 102 103 1.3 Commissions received 143 156 9.4 Franchise fees received 19 19 0.6 Investment income 4 12 196.8 Sundry
Slide 13: Highlights of Results
Highlights of Results Opera,ng lease increased 21.8% • Due to a net number of 86 corporate stores opened in past 12 months Employee benefits increased 12.6% • Resul<ng staff requirements due to new stores • Produc<vity increased Other opera,ng expenses increased 0.4% • Lower CPI of 6.3% for the year e
Slide 14: Highlights of Results
Highlights of Results Trading margin highest ever: 5.0% • Contained overhead costs • Higher turnover growth than expense growth • Growth in complementary services 14
Slide 15: Highlights of Results
Highlights of Results Exchange rate differences • December 2008: R 26 million gain • December 2009: R 34 million loss Rand to US Dollar exchange rates (R:$) • December 2007: R 6.89 • December 2008: R 9.66 • December 2009: R 7.60 15
Slide 16: Highlights of Results
Highlights of Results Dec Dec 2008 2009 R’m R’m 16
Slide 17: Highlights of Results
Highlights of Results Dec 2008 Dec 2009 Capital Expenditure R’m R’m Land and Buildings 271.3 347.4 Store Refurbishment 262.1 291.8 New Stores 228.1 349.6 Informa<on Technology 117.7 108.8 Other Replacements* 160.2 171.8 Total 1,039.3 1,269.4 *Distribu<on Centres, Motor Vehicles, Generators & Office Fu
Slide 18: Highlights of Results
Highlights of Results Dec Dec 2008 2009 Growth R’m R’m % 18
Slide 19: Highlights of Results
Highlights of Results Dec Dec Growth 2008 2009 Debtors % R’m R’m Furniture (net) 775 907 17.1 Franchise 542 575 6.1 Buy aid organisa<ons 172 173 0.5 Other receivables 627 684 9.1 Total 2,116 2,340 10.6 19
Slide 20: Highlights of Results
Highlights of Results Cash flow reconcilia,on Cash at June 2009 2,811 Cash from opera<ons 1,998 Changes in working capital 1,350 Net interest received 31 Dividends paid (672) Tax paid (516) Purchase of assets (1,269) Proceeds on disposal of assets 24 Acquisi<on of treasury shares (244) Other (371) Ca
Slide 21: Highlights of Results
HEPS Highlights of Results Cash EPS HEPS vs Cash EPS* vs EBITDA per share (cents) EBITDA per share 404 358 302 292 258 212 181 190 134 2007 2008 2009 *Cash flow from opera<ng ac<vi<es excluding dividends paid and changes in working capital 21