Super Group Limited · JSE:SPG
Super — H1 2013 Earnings Presentation
45 slides from Super's earnings presentation, February 2013
Slide 1: Interim Results Presentation
Interim Results Presentation for the six months ended 31 December 2012 February 2013
Slide 2: Agenda
Agenda • Financial highlights • Half year review • Segmental analysis • Divisional reviews • Supply Chain • Fleet Solutions • Dealerships • Group financial results • Strategy and prospects Super Group Interim Results Presentation 2
Slide 3: Financial highlights
Financial highlights • Revenue 16% R5.4 billion • Operating profit 28% R517 million • Profit before taxation 39% R490 million • Headline earnings per share 19% 95 cents • Net cash position (since 30 June 2012) 12% R481 million • NAV per share (since 30 June 2012) 6% 1 106 cents Super Group Interim R
Slide 4: Half year review
Half year review • A solid set of results despite being faced with: • subdued economic conditions • a highly competitive trading environment • strike action and labour unrest • Supply Chain reported strong sales volume growth on the back of new contracts across most operations • Fleet Solutions boos
Slide 5: Segmental analysis
Segmental analysis Supply Chain Fleet Solutions Dealerships Super Group Interim Results Presentation 5
Slide 6: Segmental analysis (continued)
Segmental analysis (continued) Supply Chain Fleet Solutions Dealerships Super Group Interim Results Presentation 6
Slide 7: Segmental analysis: excl non-controlling interests
Segmental analysis: excl non-controlling interests Supply Chain Fleet Solutions Dealerships Super Group Interim Results Presentation 7
Slide 8: Segmental analysis: excl non-controlling interests (continued)
Segmental analysis: excl non-controlling interests (continued) Supply Chain Fleet Solutions Dealerships Super Group Interim Results Presentation 8
Slide 9: Divisional reviews
Divisional reviews
Slide 10: Results of the divisions
Results of the divisions Revenue (R’m) Operating profit (R’m) Profit before tax (R’m) Operating profit margin (%) Supply Chain Fleet Solutions Dealerships Super Group Interim Results Presentation 10
Slide 11: Net operating assets per division
Net operating assets per division Supply Chain Fleet Solutions Super Group Interim Results Presentation 11
Slide 12: RNOA per division (after tax)
RNOA per division (after tax) Group RNOA is 21,9% (HY2012: 16,5%) Supply Chain SA African Logistics FleetAfrica SG Fleet Dealerships RNOA = Return on Net Operating Assets Super Group Final Results Presentation 12
Slide 13: Supply Chain
supergroup supply chain Supply Chain
Slide 14: Supply Chain South Africa
Supply Chain South Africa Revenue (R’m) Operating profit (R’m) Profit before tax (R’m) Operating profit margin (%) First Half Second Half Super Group Interim Results Presentation 14
Slide 15: Supply Chain South Africa (continued)
Supply Chain South Africa (continued) • A satisfactory performance with revenue, operating profit and profit before tax increasing by 38,2%, 50,6% and 55,7%, respectively • Market conditions remained highly competitive and characterised by incidents of punitive pricing • The results were mainly driv
Slide 16: African Logistics
African Logistics Revenue (R’m) Operating profit (R’m) Profit before tax (R’m) Operating profit margin (%) First Half Second Half Super Group Final Results Presentation 16
Slide 17: African Logistics (continued)
African Logistics (continued) • African Logistics performed adequately given current market conditions • Revenue increased by 3,5%, however, operating profit and profit before tax decreased by 27,1% and 41,9%, respectively, primarily due to: • a small foreign exchange loss during the six months to D
Slide 18: Fleet Solutions
S supergroup Fleet Solutions
Slide 19: FleetAfrica
FleetAfrica Revenue (R’m) Operating profit (R’m) Profit before tax (R’m) Operating profit margin (%) First Half Second Half Super Group Final Results Presentation 19
Slide 20: FleetAfrica (continued)
FleetAfrica (continued) • FleetAfrica performed ahead of expectations • Revenue, operating profit and profit before tax declined by 63,7%, 45,8% and 40,4%, respectively, as a result of the expiration of the City of Johannesburg (CoJ) and Eastern Cape Provincial Government (ECPG) contracts • FleetAfr
Slide 21: SG Fleet
SG Fleet Revenue (R’m) Operating profit (R’m) Profit before tax (R’m) Operating profit margin (%) First Half Second Half Super Group Final Results Presentation 21
Slide 22: SG Fleet (continued)
SG Fleet (continued) • SG Fleet continued to deliver an excellent performance in a competitive trading environment • Revenue, operating profit and profit before tax increased by 31,7%, 110,8% and 129,0%, respectively • The results were mainly attributable to: • increased deliveries in terms of contr
Slide 23: Dealerships
supergroup — Dealerships
Slide 24: Dealerships
Dealerships Revenue (R’m) Operating profit (R’m) Profit before tax (R’m) Operating profit margin (%) First Half Second Half Super Group Final Results Presentation 24
Slide 25: Dealerships (continued)
Dealerships (continued) • Revenue, operating profit and profit before tax increased by 24,2%, 42,5% and 58,0%, respectively • The results reflect: • the inclusion of 5 new dealerships • a solid performance by the Finance and Insurance operations • Total NAAMSA new vehicle sales for the six months to
Slide 26: Group financial results
Group financial results
Slide 27: Summary of operating profit / PBT movements
Summary of operating profit / PBT movements Operating R’million PBT profit December 2011 (prior interim period) 405.3 352.9 Movements: Supply Chain South Africa 51.8 51.4 African Logistics (6.5) (7.1) FleetAfrica (60.4) (47.0) SG Fleet 123.7 126.6 Dealerships 16.6 16.1 Services (incl Mauritius and E
Slide 28: Statement of Comprehensive Income
Statement of Comprehensive Income 31 December 31 December Change R’million 2012 2011 % Unaudited Unaudited Revenue 5 428.6 4 667.9 16.3 Operating profit 517.4 405.2 27.7 Net finance charges (27.1) (52.3) (48.2) Profit before taxation 490.3 352.9 38.9 Net finance charges (R’million) Dec Dec 2012 2011
Slide 29: Statement of Comprehensive Income (continued)
Statement of Comprehensive Income (continued) 31 December 31 December Change R’million 2012 2011 % Unaudited Unaudited Revenue 5 428.6 4 667.9 16.3 Operating profit 517.4 405.2 27.7 Net finance charges (27.1) (52.3) (48.2) Profit before taxation 490.3 352.9 38.9 Income tax expense (128.0) (87.1) 46.
Slide 30: Statement of Comprehensive Income (continued)
Statement of Comprehensive Income (continued) 31 December 31 December Change R’million 2012 2011 % Unaudited Unaudited Revenue 5 428.6 4 667.9 16.3 Operating profit 517.4 405.2 27.7 Net finance charges (27.1) (52.3) (48.2) Adjusted HEPS (cents) Dec 2012 Jun 2012 Profit before HEPStaxation 490.3 95.3
Slide 31: Statement of Financial Position
Statement of Financial Position 31 December 30 June Change ASSETS (R’million) 2012 2012 % Unaudited Audited Property, plant and equipment 1 755.6 1 634.3 7.4 PP&E movements (R’million) December 2012 December 2011 Depreciation 74 83 Net capex 101 119 Net capex as a % of depreciation 136% 143% Super G
Slide 32: Statement of Financial Position (continued)
Statement of Financial Position (continued) 31 December 30 June Change ASSETS (R’million) 2012 2012 % Unaudited Audited Property, plant and equipment 1 755.6 1 634.3 7.4 Full maintenance lease assets 505.0 491.1 2.8 FML movements (R’million) December 2012 December 2011 Depreciation 68 140 Net capex
Slide 33: Statement of Financial Position (continued)
Statement of Financial Position (continued) 31 December 30 June Change ASSETS (R’million) 2012 2012 % Unaudited Audited Property, plant and equipment 1 755.6 1 634.3 7.4 Full maintenance lease assets 505.0 491.1 2.8 Investment property 69.8 70.8 (1.4) Intangible assets and goodwill 1 820.6 1 602.9 1
Slide 34: Statement of Financial Position (continued)
Statement of Financial Position (continued) 31 December 30 June Change ASSETS (R’million) 2012 2012 % Unaudited Audited Property, plant and equipment 1 755.6 1 634.3 7.4 Full maintenance lease assets 505.0 491.1 2.8 Investment property 69.8 70.8 (1.4) Cash including overdrafts Dec 2012 Jun 2012 Inta
Slide 35: Statement of Financial Position (continued)
Statement of Financial Position (continued) 31 December 30 June Change EQUITY AND LIABILITIES (R’million) 2012 2012 % Unaudited Audited Shareholders’ equity 3 199.4 3 020.1 5.9 Non-controlling interests 544.5 380.5 43.1 Total equity 3 743.9 3 400.6 10.1 Liabilities Fund reserves 352.2 341.7 3.1 Defe
Slide 36: Net cash
Net cash 31 December 30 June Interest Change R’million 2012 2012 profile % Unaudited Audited Property and other borrowings H/V 360 339 6.2 Asset-based finance V/P 442 350 26.3 Total SA borrowings (excl FML) 802 689 16.4 FML borrowings › SA P 68 92 (26.1) Gross SA borrowings 870 781 11.4 Australian b
Slide 37: Net cash
Net cash 31 December 30 June Interest Change R’million 2012 2012 profile % Unaudited Audited Property and other borrowings H/V 360 339 6.2 Asset-based finance V/P 442 350 26.3 Total SA borrowings (excl FML) 802 689 16.4 Net (cash)/debt FML borrowings › SA P Dec 2012 68 Jun 2012 92 (26.1) Australia G
Slide 38: Cash flow movement
Cash flow movement 3 000 648 (42) (23) (177) 2 500 (108) (72) (42) (59) 2 000 (26) (6) 52 1 921 1 776 R’million 1 500 1 000 500 - Super Group Final Results Presentation 38
Slide 39: Other key financial data
Other key financial data December December 2012 2011 • Return on Equity 18.2% 17.7% • RNOA (after tax) 21.9% 16.5% • Consolidated gearing (9.0)% 15.4% • Net interest cover 24.6x 12.5x • USD – close at 31/12/2012 4.8% R8.48 R8.09 • USD – average 11.2% R8.47 R7.62 • AUD – close at 31/12/2012 6.5% R8.8
Slide 40: Strategy and prospects
Strategy and prospects
Slide 41: Prospects
Prospects • South African economy remains uncertain with muted growth rates expected • Highly competitive trading environment expected to continue • Strong pipeline of new business opportunities across Supply Chain and Fleet Solutions • Continued single digit growth in new car sales • New business g
Slide 42: Prospects (continued)
Prospects (continued) Supply Chain • Continue to focus on niche consumer and pharmaceutical opportunities • Emphasis on securing new and retaining existing contracts at acceptable margins • New Super Park expansion on track to be occupied by SG Convenience and a new customer on a long-term lease tow
Slide 43: Prospects (continued)
Prospects (continued) FleetAfrica • Good pipeline of opportunities for securing new fleet management contracts SG Fleet • Solid performance expected to continue as a result order pipeline and the implementation of a large new contract that has been signed • Strong cash generation continues to underp
Slide 44: Strategy
Strategy Strategy Dec’12 Jun’12 Replacement of FleetAfrica contract losses Acquisition of strategic investments Cost containment and improved customer services levels Delivering strong RNOA Implementation of B-BBEE staff empowerment scheme Staff training and development Optimisation of carbon footpr
Slide 45: Thank you for your participation
Thank you for your participation For further information, please visit our website: www.supergroup.co.za