Super Retail Group Limited · ASX:SUL
Super Retail — H1 FY2015 Earnings Presentation
24 slides from Super Retail's earnings presentation, Feb 19, 2015
Slide 1: Results for the 26 weeks to 27 December 2014
For personal use only Results for the 26 weeks to 27 December 2014 Peter Birtles, Group Managing Director and Chief Executive Officer David Burns, Chief Financial Officer 19th February 2015
Slide 2: Group Headlines
Group Headlines 2 Sales LFL % 14/15 13/14 12/13 11/12 10/11 09/10 • Group Sales up by 5.7% For personal use only Auto 2.1% 2.3% 5.2% 3.5% 3.4% 6.1% • Group NPAT down by 45.5% Leisure* (5.1%) 1.6% 2.8% 9.9% 1.5% 8.8% • Group EBITDA before restructuring down by 1.0% Sports 6.1% 5.5% 8.3% 7.8% * Leisur
Slide 3: Performance Trends
Performance Trends 3 Sales ($m) For personal use only EBIT ($m) # 1159 1037 1096 759 99.8 101.1 94.1 562 413 464 366 61.6 312 41.4 21.8 23.6 28.3 16.0 Dec Dec Dec Dec Dec Dec Dec Dec Dec 06 07 08 09 10 11 12 13 14 Dec Dec Dec Dec Dec Dec Dec Dec Dec 06 07 08 09 10 11 12 13 14 # EBIT before business
Slide 4: Group Results
Group Results 4 2014/15 Change For personal use only • Solid sales growth achieved in both Auto and Sports $m on pcp from both new store and LFL sales • Improving like for like sales trends throughout the first half in the Leisure Division supporting Sales 1,158.7 5.7% expectation of positive growth
Slide 5: Divisional Results
Divisional Results 5 2014/15 2013/14 For personal use only Sales EBIT Sales EBIT $m $m $m $m Auto Retailing 431.5 44.2 415.0 44.9 Leisure Retailing 302.1 20.3 306.9 24.4 Sports Retailing 421.5 38.6 370.2 38.4 Group & Unallocated 3.6 (9.0) 4.4 (6.6) Total Group (before 1,158.7 94.1 1,096.5 101.1 rest
Slide 6: Auto Retailing
Auto Retailing 6 2014/15 change on For personal use only • Divisional results includes Supercheap Auto and Auto Trade Direct (not material at this stage) $m pcp • Strong sales from 6 new stores and good momentum in LFL sales at 2.1% growth on PCP Sales 431.5 4.0% • Sales growth in all categories wit
Slide 7: Leisure Retailing
Leisure Retailing 7 2014/15 change on For personal use only • Like for like sales negative trend continuing into the $m pcp 1st half of 2014/15 reflecting new store cannibalisation and lower demand in mining areas Sales 302.1 -1.6% • As expected trend improving with like for like sales LFL sales gro
Slide 8: Sports Retailing
Sports Retailing 8 2014/15 change on For personal use only • Sales performance has been strong in both Rebel $m pcp and Amart Sports. LFL sales growth driven by increased traffic and average transaction value Sales 421.5 13.9% • Included in the 2014/15 result is Infinite Retail, which became a fully
Slide 9: Group & Unallocated
Group & Unallocated 9 2014/15 change on For personal use only • Group and Unallocated includes SRG Commercial, $m pcp consolidated investment in Oceania Bicycles, Fixed Price Car Service and corporate costs not allocated Sales 3.6 NA to segments • Investment in Fixed Price Car Service occurred in De
Slide 10: Group Cash Flow
Group Cash Flow 10 Dec 14 Dec 13 For personal use only $m $m • Operating cash flow performance has funded increased investment in new stores and development program Operating cash flow 148.9 172.1 • Investment in inventory has reduced operating (pre store set up investment) cash flow compared to pcp
Slide 11: Group Balance Sheet
Group Balance Sheet 11 Dec 14 Jun 14 For personal use only • Inventory balances are seasonally higher in $m $m December. • SCA average inventory per store is 1% lower than December 2013 Inventory • Leisure average inventory per store is 7% higher - Auto Retailing 195.7 173.7 than December 2013 pcp d
Slide 12: Returns & Capital Ratios
Returns & Capital Ratios 12 Dec Dec For personal use only • Headline EPS ratio impacted by business restructure provisions. EPS before business 2014 2013 restructuring is 29.5cps EPS – reported 17.0c 31.3c • The Group undertook a modification of its debt facility in the period. The facility limit ha
Slide 13: Leisure Division Restructure
Leisure Division Restructure 13 Ray’s Outdoors FCO For personal use only • Strategic review has concluded that there is a $1.8 • A review of the FCO business has identified that to $2.0 billion addressable market opportunity while a number of improvement opportunities exist the business is unlikely
Slide 14: Looking Forward
For personal use only Looking Forward 14
Slide 15: Looking Forward
Looking Forward 15 General Margin Expectations For personal use only • Expect each division to deliver solid like for like sales growth in the second half • Focus on lifting gross margin but need to be careful to manage the trade off with sales momentum in an environment in which customer confidence
Slide 16: Group Strategy
For personal use only Group Strategy 16
Slide 17: Our Vision and Mission
Our Vision INSPIRING YOU TO LIVE YOUR PASSION For personal use only Our Mission TO PROVIDE SOLUTIONS AND ENGAGING EXPERIENCES THAT ENABLE OUR CUSTOMERS 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 to our
Slide 18: How are we going to win?
How are we going to win? Understanding our Developing a clear understanding of our customer’s leisure passions, their Customers search patterns, their buying behaviour and their opinion of our offer For personal use only customer relationship management increasingly driving our store and website des
Slide 19: Auto Retailing – Key Strategic Initiatives
Auto Retailing – Key Strategic Initiatives (5 year goal) For personal use only NETWORK LFL SALES EBIT PRE TAX EXPANSION GROWTH MARGIN ROC (325 STORES) (> 3% PA) (12%) (> 40%) Understanding our • SCA club + membership now at 1.2 million – target 1.5 million plus Customers • Understanding and meeting
Slide 20: Leisure Retailing – Key Strategic Initiatives
Leisure Retailing – Key Strategic Initiatives (5 year goal) For personal use only NETWORK LFL SALES EBIT PRE TAX EXPANSION GROWTH MARGIN ROC (200+ STORES) (> 3% PA) (11%) (> 30%) Understanding our • BCF / Ray’s Outdoors club membership now at 2.9 million Customers • Developing Ray’s Outdoors offer t
Slide 21: Sports Retailing – Key Strategic Initiatives
Sports Retailing – Key Strategic Initiatives (5 year goal) For personal use only NETWORK LFL SALES EBIT PRE TAX EXPANSION GROWTH MARGIN ROC (250 STORES) (> 4% PA) (11%) (> 21%) Understanding our • Rebel / Amart club membership now at 2.5 million Customers • Relaunch of loyalty programs • Use of cust
Slide 22: Commercial
Commercial (5 year goal) For personal use only B2B INTERFACE SALES TARGET PRE TAX $50M + ROC (> 21%) Wholesale • Opportunities across all Group categories • Centred around Group’s private label products Insurance • $15m opportunity • Providing gift cards or replacement products to major insurers to
Slide 23: Supply Chain and Inventory Management
Supply Chain and Inventory Management (5 year goal) • Support the brands inventory optimisation initiatives For personal use only • Clarity of supply chain cost drivers and ability to select appropriate supply method • Efficient flow of inventory to reduce logistics costs as a % of sales by 1% • Enh
Slide 24: Supply Chain and Inventory Management
Supply Chain and Inventory Management FY14 FY15 FY16 FY17 For personal use only Logistics Investment Sydney DC Brisbane DC New network Network developed developed implemented optimised Systems Development Sports SAP Sports SAP implemented optimised WMS developed WMS rollout Trade Partner Leisure DTS