Super Retail Group Limited · ASX:SUL
Super Retail — Macquarie Securities 2005 Emerging Leaders Conference
32 slides from Super Retail's conference presentation, May 5, 2005
Slide 1: Macquarie Securities 2005 Emerging Leaders Conference
Slide 2: Company Overview
Company Overview
Slide 3: SCA is (one of) Australasia's fastest growing retailers
SCA is (one of) Australasia’s fastest growing retailers of automotive parts, accessories, handyman items, tools & equipment.
Slide 4: Company history and milestones
Reg & Hazel Rowe founded an automotive accessories mail order business in 1972 Established retail operations in 1974 inh, By March 1993 the Company had opened eight retail stores across Queensland and recorded sales of approx. $19.4m in the year ended 30 June 1993 Bob Thorn joined the company as Gen
Slide 5: Business Concept
Business Concept A DIY customer’s paradise, Super Cheap Auto retails products relating to: the car the house the garage the trailer the boat and the yard; covering everything from automotive parts and accessories, handyman items, tools and equipment to 4x4 and marine. e¢¢-e¢¢ ¢ SUPER ChEAD . . . . V
Slide 6: Our Product Categories
Our Product Categories @ Car Care @ Leisure/Outdoor Tools @ Performance | @ Interior @ Spare Parts @ Exterior @ Lubricants | @ Seat Covers @ Paint & Panel @ Electrical @ Batteries @ Audio Visual
Slide 7: Merchandise Management Structures
Merchandise Management Structures r Jacks teal boxes coolant«><co<cblirags gaskets bath Suspension (et tal a T noi: socket/tioal kits elect toads been a filters “Parts” gearftrans igniticry performance | gardening air tacos ma LA] | i | erfeor ear care -_. OUT GOr 7Extetior || trailer / carnping ext
Slide 8: The Brands
The Brands a
Slide 9: The Signage
The Signage SUPERSHE AP | : | .
Slide 10: Our Customers
Sd Sd Sd Our Customers Predominantly 18-54 year old males Average spend of around $26.00 per customer Estimated over 30 million customer visits for 2005 SCA generates an average close to $3,500 per square metre per year
Slide 11: Our Competitors
Our Competitors WM// / RECO a BIGW . WE SELL FOR LESS and many others
Slide 12: Our Sales Growth
Million Our Sales Growth
Slide 13: Sales growth
Slide 14: Our Current Locations
Our Current Locations at 5 May 2005 B03 Store's oy Brisbane ‘> Newcastle Aucklani4 Sydney "4 ~ Wellington hristchurch
Slide 15: Growth Initiatives
Slide 16: 2004/05 Results Focus
2004/05 Results Focus * New Stores Sales * Like For Like Sales Growth * Gross Margin Management * Expense Control * Optimising Net Investment in Inventory per Store EPS Growth DRIVING ————> Return on Capital Improvement
Slide 17: 2004/05 Growth Initiatives
2004/05 Growth Initiatives >» Securing New Stores and Delivering New Store Sales >» Enhancing our Merchandise and Marketing Planning > Improving our Supply Chain Operations (Project FOSIL) >» Building and Leveraging our Supplier Relations » Maintaining our culture as we grow » Developing and growing
Slide 18: Securing new stores and delivering new store sales
Securing new stores and delivering new store sales — 25 stores opened so far this financial year — On track to have 210 stores trading across Australia and New Zealand by June 2005 * 5 stores ahead of prospectus + Atleast 27 stores opened during the year — 31 Stores opened in New Zealand in 17 month
Slide 19: Enhancing our merchandising and marketing planning
Enhancing our merchandising and marketing planning -— Merchandise management structures aligned to in-store quadrants — Implementing new tools to support merchandise teams . Distribution Requirements Planning + — Implementing the SAP Data Warehouse and Merchandise Assortment Planning modules — Launc
Slide 20: Enhancing our merchandising and marketing planning
Enhancing our merchandising and marketing planning MOTOR SPORT "High Profile Sponsorship Arrangements Established * Naming right sponsor for the Bathurst 1000 Sponsor of the 2 car Super Cheap Auto Racing Team in the V8 Super Car series . « Partnership with Channel 10 in Australia and New Zealand « P
Slide 21: Improving our Supply Chain Operations
Improving our Supply Chain Operations = Supply Chain initiatives on track * Supply chain costs reducing as a % of sales Stronger in-stock position during key promotional periods . « Project FOSIL now integrated into day to day business aN « Lawnton DC facility extended =" Planning for the mid term "
Slide 22: Building and Leveraging our Supplier Relations
Building and Leveraging our Supplier Relations "Collaborative approach to improving supply chain arrangements = Improving supply performance through shared information "Packaging improvements « Bar coding of cartons =» E-commerce opportunities =" Improvements in trading terms generating net debt red
Slide 23: Maintaining our Culture as we grow
Maintaining our Culture as we grow = SCA is a major employer " Close to 3,500 team members across 212 locations « Unlike the past many team members do not have the opportunity to interact regularly with senior management Need to ensure we have the right balance of retail skills and product knowledge
Slide 24: Developing and Growing New Retail Formats
— Developing and Growing New Retail Formats Camp Mart Acquisition « Transaction completed 18 January 2005 « All stores trading on SCA’s Point of Sale and SAP systems by 19" January New Business Development = Project team established to develop ongoing customer offer and business model " Opportunity
Slide 25: 1st Half Results 2004/05
2004/05 1s* Half Results
Slide 26: Trading Statement months to Dec 03/04
Trading Statement 6 months to Dec 25 03/04 comparative Sales | Gross Profit . 38.6 | i Op Ex . 30.1 | EBITDA ; 85 EBITA | . 6.7 EBIT . 6.0 NPAT (comparative)
Slide 27: Sales
Sales Sales 27 wks to 1/3 Jan Australia New Zealand Total — » Australia: @ 2 additional new stores opened ahead of prospectus forecast for the half m LFL performance tracking 0.6% pts ahead of prospectus forecast for the year » NZ: m@ 7 additional new stores opened ahead of prospectus forecast for t
Slide 28: Net Debt
Net Debt Closing net cash Closing gross debt Closing net debt Pro-forma Adjustments for Pre IPO transactions: Liability arising on settlement of Team Management loans . Member share loans paid in full in July 04 Liability reclassified as debt at June 04 paid in full in August 04 Pre IPO dividends Pr
Slide 29: Earnings per Share
— Earnings per Share - pre amortisation and abnormals - post amortisation and abnormals Fixed Charge Cover Net Debt : Capital - headline - adjusted Annualised Return on Capital - headline - adjusted Key Ratios | Ful year prospectus forecast ~ 17.2c Full year prospectus forecast ~ 14.4c EBITDAR / (In
Slide 30: Outlook 2004/05
2004/05 Outlook
Slide 31: Looking Forward (cont)
Looking Forward (cont) Anticipate LFL growth in the 2" half in line with prospectus forecast of 4.5% @ EBITA margins expected to be around 7.0% in the 2" half @ Major IT projects continue through the second half =" Implementation of Distribution Requirements Planning system = Initial configuration o
Slide 32: Tools & Equipment
= oo TOOLS & FQUIPMENT , Ge ) (ie =
Super Retail Group — Macquarie Securities 2005 Emerging Leaders Conference on 6ix