Foschini Group Limited · JSE:TFG
Foschini — The Foschini Group — FY2021 Earnings Presentation
84 slides from Foschini's earnings presentation, June 2021
Slide 1: Results Presentation for the Full Year Ended 31 March 2021
RESULTS PRESENTATION FOR THE FULL YEAR ENDED 31 MARCH 2021 THE FOSCHINI GROUP LIMITED © @ @
Slide 2: Agenda
1 A COVID-19 YEAR IN CONTEXT 2 GROUP PERFORMANCE REVIEW AGENDA 3 SEGMENTAL PERFORMANCE 4 OUTLOOK 2 TFG RESULTS PRESENTATION FOR THE YEAR ENDED 31 MARCH 2021
Slide 3: A COVID-19 Year in Context
A COVID-19 YEAR IN CONTEXT A n t h o ny T h u n strö m Group CEO AN UNPRECEDENTED YEAR WITH COVID-19, BUT PIVOTAL IN TFG’S STRATEGIC JOURNEY
Slide 4: Turnover Growth FY 2021
FY 2021 IN CONTEXT GROUP TFG AFRICA TFG AUSTRALIA TFG LONDON TURNOVER GROWTH FY 2021 37% 30% 21% 15% 5% 0% -9% -6% -12% -43% -38% -42% -42% -41% -45% -69% Incl. Jet ZAR Incl. Jet ZAR Q1 Q2 Q3 Q4 A$ £ 15% 13% COVID-19 had a significant impact on store closures, 50% particularly in the UK in FY 2021 A
Slide 5: Strong Operational Performance
STRONG OPERATIONAL PERFORMANCE Debt reduced significantly, Successful rights issue Transformational Strong cash generation leverage reset implemented acquisition of JET R9,4bn R1,3bn net debt successfully completed R3,95bn (pre-IFRS 16) WORKING CAPITAL STRONG H2 TRADING RECOVERY OPTIMISED ESG REMAIN
Slide 6: Group Performance Highlights
GROUP PERFORMANCE HIGHLIGHTS GROUP GROUP CASH GROSS HEADLINE NET DEBT TURNOVER FREE CASH FLOW TURNOVER MARGIN EARNINGS (pre-IFRS 16) CONTRIBUTION - 6,7% 78,7% 45,5% R 600 million +70,5% - 84,3% R 33 billion R 26 billion 2020: 52,7% R 1,5 billion R 3,8 billion R 1,3 billion adjusted* All 12 months of
Slide 7: A Pivotal Year in TFG's Strategic Transformation
A PIVOTAL YEAR IN TFG’S STRATEGIC TRANSFORMATION JET ACQUISITION STELLAR OMNICHANNEL Slides 17 - 18 ORGANIC Slides 14 - 16 GROWTH Slide 8 - 13 QUICK RESPONSE SUSTAINABILITY MANUFACTURING Slide 21 - 22 Slides 19 - 20 TFG RESULTS PRESENTATION FOR THE YEAR ENDED 31 MARCH 2021 7
Slide 8: Continued Recognition of Our Stores & Brands
CONTINUED RECOGNITION OF OUR STORES & BRANDS Brand Finance Top 10 Coolest SACSC 2020 / 2021 2021 Clothing Stores Retail Design & Ask Africa Most valuable 2020 Sunday Times Development Awards Gen Next Awards 2020 Winner Orange Index™ SA Brands 37th Top 10 Coolest Clothing Brands 2020 Sunday Times 43r
Slide 9: Markham Is the Fastest-Growing Brand in Brand Finance Ranking
MARKHAM IS THE FASTEST-GROWING BRAND IN BRAND FINANCE TOP 50 RANKING Brand Value Change 2020 – 2021 (%) 1st 5th Source : Brand Finance – Annual Report, South Africa 50 May 2021 TFG RESULTS PRESENTATION FOR THE YEAR ENDED 31 MARCH 2021 9
Slide 10: Historic Performance Ahead of Market
HISTORIC PERFORMANCE AHEAD OF MARKET 15,7% 11,6% 9,1% 7,4% TFG ahead of market in: 6,5% 5,3% 4,4% 4,2% 3,9% 3,8% 3,0% • Cash sales: gained market share 2,2% 2,2% (notwithstanding a cautious approach to credit) – this speaks to the strength of the TFG SA Peer A Peer B Peer C Peer D various brands and
Slide 11: Market Share Gains in Mens & Womens
MARKET SHARE GAINS IN MENS & WOMENS (EXCL JET & SPORTS) TFG MEN & WOMEN CATEGORIES: TURNOVER GROWTH COMPARED TO RLC Rm MARKET 2 500 2 000 1 500 1 000 500 0 Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Q1 Q2 Q3 Q4 TFG men & women RLC market Source : RLC • Men and Women categories grew market shar
Slide 12: Stellar Performance in Athleisure & Sports
STELLAR PERFORMANCE IN ATHLEISURE & SPORTS Social media Sportscene radio Award Most retail brand followers following monthly listeners on Instagram (SA) Winning 4M+ ~ 400k Brands 1M+ Significant contribution to TFG Africa turnover Strong own-brand contribution to Sport turnover c.35% TFG RESULTS PRE
Slide 13: Organic Growth: Successfully Rolled Out New Brands
ORGANIC GROWTH: SUCCESSFULLY ROLLED OUT NEW BRANDS TFG RESULTS PRESENTATION FOR THE YEAR ENDED 31 MARCH 2021 13
Slide 14: Paradigm Shift – Online Turnover More Than Doubled
PARADIGM SHIFT – ONLINE TURNOVER MORE THAN DOUBLED GROUP TFG AFRICA TFG AUSTRALIA TFG LONDON Online Online Online Online contribution contribution contribution contribution FY 2021 12,8% FY 2021 3,9% FY 2021 9,0% FY 2021 62,5% FY 2020 8,4% FY 2020 1,6% FY 2020 5,3% FY 2020 31,4% Outlets Online Outle
Slide 15: Online Driving Profitability & Inventory Efficiency
ONLINE DRIVING PROFITABILITY & INVENTORY EFFICIENCY STRENGTH OF COMBINED SPECIALITY BRANDS: SOCIAL MEDIA FOLLOWING LEADING THE MARKET 13,9M TFGAfrica TFG Africabrands brand Truworths Social media followers 5,7M Woolworths +11% Items ordered vs LY 12% Mr Price Clicks Superbalist Customer conversion +
Slide 16: Leading Share of Online Traffic Against Brick & Mortar Retailers
LEADING SHARE OF ONLINE TRAFFIC AGAINST BRICK & MORTAR RETAILERS “ONLINE ONLY" BRANDS "BRICK & MORTAR" BRANDS Edgars Zando Yuppiechef Truworths 1% Superbalist 3% 1% 5% 8% Cotton On 4% TFG TFG 37% 18% MRP 14% Takealot Dischem 70% 8% Clicks Woolworths 11% 15% Source: SimilarWeb (Online monitoring tool
Slide 17: Jet: Performance Above Expectation
JET: PERFORMANCE ABOVE EXPECTATION ACQUIRED PERFORMANCE • 425 stores, further roll-out in progress, comfortably adding > 100 stores • > 80% cash business (100% cash for TFG) R2,2bn • Short term >R6bn Turnover since acquisition • Trading margin c.14% SAVED • >5 600 jobs 36% to 40% • Gross margin targ
Slide 18: Successful Integration of Jet in Under 6 Months
SUCCESSFUL INTEGRATION OF JET IN UNDER 6 MONTHS • All Jet stores converted onto new OneX (POS) and Back Office systems Mobile POS New store systems • >5 200 store staff trained on these new store systems • Installed >6 750 devices including POS terminals, mobile POS, BO terminals & printers • Durban
Slide 19: Continued Expansion of Quick Response Manufacturing
CONTINUED EXPANSION OF QUICK RESPONSE MANUFACTURING TFG QUICK RESPONSE ADVANTAGE • Increased local CFA* contribution from 30% to 37% in FY 2021 -35 2% Inventory days Margin • Unit growth of locally produced products +60% on advantage advantage FY 2020 • Reliance on imports, particularly China, now <
Slide 20: Our Brand's Quick Response Model in Action
OUR BRAND’S QUICK RESPONSE MODEL IN ACTION Previous Model New Model OTHER FINANCIAL KPIs 2017 Stat 2021 Stat Onshore local and regional FY 2017 FY 2021 Import and wholesale suppliers 77% 90% suppliers Quick response lead time ~42 Long lead time > 5 months 96% 67% days 16% 7% Markdown % Buy in volume
Slide 21: Key Sustainability Developments on Our Pillars
KEY SUSTAINABILITY DEVELOPMENTS ON OUR PILLARS KEY SUSTAINABILITY ACHIEVEMENTS • JOB CREATION: Saved >6 000 jobs through acquisitions • SOURCING: Supported local manufacturing to ensure sustainable suppliers • ENVIRONMENT: • 82% of all business waste across all TFG sites recycled • 90% of all texti
Slide 22: Product Stewardship Across Our Territories
PRODUCT STEWARDSHIP ACROSS OUR TERRITORIES The FIX showcased a @home recycled recycled fabric and recyclable range as an yarn carpet range alternative to existing fabric bases Phase Eight’s Jessica Shacket crafted from re- @home HIP cutlery generated and made from ocean- renewable fibres and bound p
Slide 23: Thank You
THANK YOU … We have remained strong & resilient while staying true to our values through a dedicated workforce and the continued support of our customers, suppliers, shareholders and business partners in ALL our countries of operation. We win because of our people, and this was evidenced throughout
Slide 24: Group Performance Review
GROUP PERFORMANCE REVIEW Bongiwe Ntuli Group CFO
Slide 25: Group Income Statement – Exceptional H2 Trade / Recovery
GROUP INCOME STATEMENT – EXCEPTIONAL H2 TRADE / RECOVERY FY 2021 FY 2020 % Change Turnover & gross profit • +21,0% in Q4, excl. Jet +6,0% Rm Rm Full year H2 H1 • GP -2,8% in H2 - impact of Jet, UK Retail turnover 32 950,3 35 323,3 - 6,7 + 11,2 - 26,1 Interest & Other income • Interest rate reduction
Slide 26: Adjusted Headline Earnings of R1,5bn Down 44% on FY 2020
ADJUSTED HEADLINE EARNINGS OF R1,5BN DOWN 44% ON FY 2020 *Adjusted Headline (indicative) Earnings of c.R1,5bn excluding some once off income/expenses: • Jet support costs - R0,3bn • Staff / restructure costs - R0,2bn • Stock provisions increase - R0,5bn • Other includes Govt support, Aus, UK optimis
Slide 27: Turnover: Africa Grew 1,6%, Australia & London Down
TURNOVER: AFRICA GREW 1,6% AUSTRALIA & LONDON DOWN 7,1% AND 49,7 % RESPECTIVELY GROUP incl Jet TFG AFRICA incl Jet TFG AUSTRALIA TFG LONDON 30% 23% * 20% 12% 11% * A$309m R14bn 10% R20bn 0% £108m R12bn R8bn A$194m £88m -10% -20% -22% -30% -26% -27% -40% Strong H2 recovery -50% -43% Exceptional growt
Slide 28: Strong H2 Recovery on All Categories
STRONG H2 RECOVERY ON ALL CATEGORIES MERCHANDISE CATEGORY 48% Cellular Cellular 46% H1 | H2 GROWTH: GROUP 18% FY GROWTH: GROUP 21% Homeware & furniture Homeware & Furniture 17% -10% 10% Clothing Clothing -1% -29% -4% Cosmetics -34% Cosmetics -12% -6% Jewellery -41% Jewellery -13% H2 FY 2021 H1 FY 20
Slide 29: Cash Sales Now Contributes c. 80% of Turnover
CASH SALES NOW CONTRIBUTES C. 80% OF TURNOVER GEOGRAPHY TENDER TYPE CHANNEL 18% 12% CONTRIBUTION CONTRIBUTION (PY: 8%) CONTRIBUTION (PY:15%) 21% (PY: 26%) 13% 79% 69% (PY: 21%) (PY: 74%) (PY:64%) 88% (PY: 92%) 1,6% -23,6% -0,8% -49,7% 33,4% -7,1% GROWTH GROWTH GROWTH -10,4% TFG Africa TFG Australia
Slide 30: Gross Margins Impacted by Conservative Provisioning
GROSS MARGINS IMPACTED BY CONSERVATIVE PROVISIONING • Margin impacted by: • Heavy promotional environment GROUP GP% • Conservative stock provisioning (R1,1bn) • Product mix FY 2020 FY 2021 • Jet: significantly lower margins as it turns around (target 42%) • TFG Africa product price deflation: - 2,2%
Slide 31: Reset the Cost Base – Comp Costs Down 7,9%
RESET THE COST BASE – COMP COSTS DOWN 7,9% • Reported trading expenses down 6,1% due to deliberate cost savings / business optimisation • Employee costs down 8% includes: • Government support R0,8bn(*) • Restructuring • JET staff R0,3bn(*) • Other provisions R0,2bn(*) • Occupancy costs down 2,3% wit
Slide 32: Strong Financial Position Key Balance Sheet Metrics
STRONG FINANCIAL POSITION KEY BALANCE SHEET METRICS • Available facilities and cash at 31 Mar 2021 R10,3bn • Operations generated strong cash flow of R9,4bn, up 14% on the prior year • Further reduced debt (over and above 1,8x Current ratio -2,0% Debtors’ book down 14,5% R6,6bn R3,8bn rights issue)
Slide 33: Net Debt Reduction of R7bn, Cash + Facilities > R10bn
NET DEBT REDUCTION OF R7bn, CASH + FACILITIES > R10bn GROSS DEBT (Rbn) R11,3bn DEBT TO EQUITY RATIO (PRE- IFRS 16) 65,3% 62,0% Africa: R5bn 57,7% 52,4% UK: R1,1bn (£ 59m) 2.9 Aus: Nil R6,1bn 7,6% FY2017 FY2018 FY2019 FY2020 FY2021 8,4 Debt To Equity ratio 4,8 (R7bn) GROUP DEBT REPAYMENT PROFILE 1.3
Slide 34: Fresh Inventory
"FRESH" INVENTORY DELIBERATE ACTIONS, CONSERVATIVE PROVISIONING INTO FY 2022 TFG Africa TFG London TFG Australia Group R4,7bn* £60,2m A$116,3m R7,2bn* Net stock balance (Incl Jet: R5,8bn) (FY 2020: £75,0m) (FY 2020: A$106,0m) (FY 2020: R8,4bn) @ March (FY 2020: R5,6bn) -16,3%* -19,6% +9,7% -14,3%* %
Slide 35: Strong Cash Generation
STRONG CASH GENERATION Operating Investing Financing 35 TFG RESULTS PRESENTATION FOR THE YEAR ENDED 31 MARCH 2021 35
Slide 36: Controlled Capex Spend (c 40% Reduction)
CONTROLLED CAPEX SPEND (C 40% REDUCTION) • Expansionary capex driven by Jet, manufacturing, e-commerce GROUP CAPITAL EXPENDITURE (R) and Relay stores expansion 755 • Investment in digital technology will continue to be prioritised • Future capital investment expected to return to c. 2% - 3% of 102 t
Slide 37: TFG Africa Solid Performance
TFG AFRICA SOLID PERFORMANCE FY 2021 FY 2020 Retail turnover Rm 22 885,8 Rm 22 531,8 % change 1,6 41,4% Gross margin EBITDA 5 299,6 6 283,5 -15,7 (FY 2020: 47,5%) EBIT 2 629,5 3 869,7 -32,0 Trading expenses Occupancy costs 2 545,3 2 445,9 4,1 23,2% EBITDA* margin Depreciation 596,3 562,9 5,9 (FY 202
Slide 38: Going into FY 2022 Financial Year
GOING INTO FY 2022 FINANCIAL YEAR Income Statement Growth in FY 2022 will be inflated due to the low base in FY 2021 (COVID-19 impact) and the non-comp Jet inclusion • Turnover growth on FY 2019 levels expected on underlying business • Normalised growth level comparison from FY 2023 onwards • Jet to
Slide 39: Segmental Performance Credit
SEGMENTAL PERFORMANCE CREDIT Jane Fisher Group Director
Slide 40: Conservative New Account Strategy
CONSERVATIVE NEW ACCOUNT STRATEGY… NEW ACCOUNTS 1 200 000 60% • Economic climate and decrease in new account initiatives contributed to a 42% YoY decrease in applications, however 1 000 000 50% applications improved by 50% vs H1 800 000 40% 600 000 30% • Approval rates at 15% on average vs c.50% his
Slide 41: Improved Credit Quality Over the Lockdown
IMPROVED CREDIT QUALITY OVER THE LOCKDOWN CASH COLLECTED 120% 15,0% 100% 10,0% 80% 5,0% 60% 0,0% • Cash collected c.12% lower than last year, exceeding 40% -5,0% expectation -10,0% 20% -15,0% 0% -20,0% • Customer payment behavior improved vs last year in Q4 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Fe
Slide 42: Segmental Performance TFG London
SEGMENTAL PERFORMANCE TFG LONDON Justin Hampshire
Slide 43: COVID-19: UK Economy Experienced the Largest Decline in 300 Years
COVID-19: UK ECONOMY EXPERIENCED THE LARGEST DECLINE IN 300 YEARS MARKET CONTEXT SPRINGBOARD UK FOOTFALL 0% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar -10% • Successive deep lockdowns -20% “Eat Out to Help Out” • Impacting the ability to plan and respond -30% -40% • Economic support from govern
Slide 44: Profitability Impacted, Costs Tightly Controlled
WHILST PROFITABILITY HAS BEEN IMPACTED, WE HAVE TIGHTLY CONTROLLED COSTS 42,0% FY 2021 FY 2020 £m £m % change Retail turnover 196,2 390,0 -49,7 Gross margin EBITDA (28,5) 44,3 -164,3 (FY 2020: 59,3%) EBIT (193,0) 14,5 -1 431,0 Trading expenses Occupancy costs 23,4 41,4 -43,5 -14,5% Depreciation 6,6
Slide 45: Losses Driven by Impairment Due to Higher WACC Rates
LOSSES DRIVEN BY IMPAIRMENT DUE TO HIGHER WACC RATES WITH TRADING LOSSES CONTAINED FY 2021 EBIT WATERFALL Non-cash items • Loss of £13,0m limited: tight cost control and government (13,0) 2.7 16.8 16,3 5.3 (54,1) 138,9 (193,0) - support • Restructuring/streamlining - a more dynamic and efficient (50
Slide 46: Since Reopening: Encouraging Start
SINCE REOPENING: ENCOURAGING START, BUT FORMAL CATEGORIES SLOWER TO RECOVER UNTIL RESTRICTIONS ARE FULLY LIFTED… DRESSES VS KNITWEAR TREND (vs April/May 2019) Store Further Lockdown relaxation reopening confirmed 17 May 0.0% • All categories/ brands are showing ongoing improvement April May through
Slide 47: TFG London Well Placed for Growth
TFG LONDON WELL PLACED FOR GROWTH … CUSTOMER FIRST STRATEGY ROUTES TO MARKET TRADING STRATEGY OPERATIONAL EFFICIENCY ESG FOCUS • Digital First • Pre-COVID trend: • Centralised Platform • Environment • CRM / Digital Marketing • More relaxed styles • All support functions • High standards, reducing •
Slide 48: Segmental Performance TFG Australia
SEGMENTAL PERFORMANCE TFG AUSTRALIA Gary Novis Dean Zanapalis
Slide 49: Resilient Economy
RESILIENT ECONOMY GDP - Growth Strong STRONG H2 RECOVERY, INTO FY 2022 WITH: • GDP: positive • Employment: pre-COVID-19 2021 Mar Ann +1,1% • Consumer Confidence: “normal” 2021 Mar Qtr +1,8% 2020 Dec Qtr +3,1% 2020: Jun Qtr -7,7% DRIVEN BY: 2019: 2,2% • Border controls • COVID-19 tracking and contain
Slide 50: FY 2021: Operating Context
FY 2021: OPERATING CONTEXT SALES & PROFITABILITY • H2 “major lockdowns” transitioned to “localised” lockdowns • Sales accelerated into Q4 with focus on “newness” • Strong growth across all sectors in Q4 • Activewear & “event based” brands - assisted by the lifting LAST of restrictions YEAR A$’M • St
Slide 51: FY 2021: Turnover Down 7,1%, EBIT Up 20,8%
FY 2021: TURNOVER DOWN 7,1%, EBIT UP 20,8% 63,7% FY 2021 FY 2020 A$m A$m % change Retail turnover 503,0 541,7 -7,1 Gross margin EBITDA 155,7 138,7 12,3 (FY 2020: 65,4%) EBIT 65,1 53,9 20,8 Trading expenses Occupancy costs 96,3 103,7 -7,1 31,0% EBITDA* margin Depreciation 10,3 10,0 3,0 (FY 2020: 25,6
Slide 52: Going into FY 2022 Confidently
GOING INTO FY 2022 CONFIDENTLY Continue to rollout existing brands in Australia and New Stores New Zealand (consistent with previous years) Expansion - Continue to expand the sqm footprint where there is demand Digitisation Acceleration of investment in digital channels, enhancing people and systems
Slide 53: Outlook
OUTLOOK A n t h o ny T h u n strö m
Slide 54: Well-Positioned for Growth
WELL-POSITIONED FOR GROWTH Existing foundation Future opportunities • Continued investment in organic growth Diversified product mix and customer base, ✔ opportunities with strong specialty brands • Responsible leverage off credit • Growth in VAS ✔ Globally diversified • Increased local sourcing Loc
Slide 55: Introducing TFG Labs
INTRODUCING TFG LABS • SECURED THE BEST TALENT: • Founded Superbalist.com and built it to a R1bn pureplay business, pre- COVID-19, served on the Takealot.com executive from 2014-2020 • Knowledge of what it takes to run and scale digital businesses in SA • Strong relationships and experience recruiti
Slide 56: Outlook for FY 2022
OUTLOOK FOR FY 2022 • Trading conditions and consumer confidence remain under pressure • Encouraging recent turnover growth in all territories • Well positioned to benefit from the expected recovery in the UK • Omnichannel execution will continue to support growth in online turnover • Reset cost bas
Slide 57: Turnover: Trade Post Year-End
TURNOVER: TRADE POST YEAR-END • Africa – 10 weeks to 5 June Strong performance • Turnover +32,2% • Credit turnover down -11,0% • Cash turnover +67,4% • UK -34,1% to 6 June (like-for-like -28,8%) Non-essential retail only opened 12 Apr • Since reopening, ongoing improvement through April and May in a
Slide 58: Thank You
THANK YOU
Slide 59: Q&A
Q&A
Slide 60: Disclaimer
DISCLAIMER This announcement contains certain forward-looking statements with respect to the financial condition and results of operations of The Foschini Group Limited and its subsidiaries, which by their nature involve risk and uncertainty because they relate to events and depend on circumstances
Slide 61: Appendices
APPENDICES
Slide 62: Macroeconomy
MACROECONOMY
Slide 63: Macro Environment Statistics
MACRO ENVIRONMENT STATISTICS Business Consumer GDP confidence confidence Business confidence improvements in Consumer spending remains All three territories remains South Africa and Australia as economies muted, despite slight improvement depressed open, UK remains subdued in confidence from a low b
Slide 64: Unemployment Statistics
% 0 5 10 15 20 25 30 35 2000-Q1 Source: IHS Markit 2001-Q2 2002-Q3 2003-Q4 2005-Q1 2006-Q2 2007-Q3 2008-Q4 2010-Q1 2011-Q2 2012-Q3 Q4 2020 32,4% to expand UNEMPLOYMENT 2013-Q4 2015-Q1 TFG AFRICA 2016-Q2 Seasonally adjusted 2017-Q3 2018-Q4 unemployment continue 2020-Q1 % 0 2 4 6 8 10 2000-Q1 2001-Q2
Slide 65: Additional Financial Information
ADDITIONAL FINANCIAL INFORMATION
Slide 66: Group Income Statement
GROUP INCOME STATEMENT FY 2021 FY 2020 % Change Rm Rm Retail turnover 32 950,3 35 323,3 - 6,7 Gross profit 14 990,3 18 623,2 - 19,5 Interest income 1 358,4 1 759,7 - 22,8 Other income 1 277,1 1 393,5 - 8,4 Net bad debt (1 222,4) (1 275,5) - 4,2 Expenses (14 856,7) (15 816,2) - 6,1 Operational EBIT 1
Slide 67: TFG Africa Income Statement
TFG AFRICA INCOME STATEMENT FY 2021 FY 2020 % Change Rm Rm Retail turnover 22 885,8 22 531,8 1,6 Gross profit 9 485,3 10 701,2 - 11,4 Interest income 1 358,4 1 759,7 - 22,8 Other income 1 277,1 1 393,5 - 8,4 Net bad debt (1 222,4) (1 275,5) - 4,2 Expenses (8 961,1) (8 709,2) 2,9 Operational EBIT 1 9
Slide 68: TFG London Income Statement
TFG LONDON INCOME STATEMENT FY 2021 FY 2020 FY 2021 FY 2020 % Change % Change £m £m Rm Rm Retail turnover 196,2 390,3 - 49,7 4 178,9 7 330,9 - 43,0 Gross profit 82,5 231,5 - 64,4 1 756,9 4 350,4 - 59,6 Expenses (136,6) (217,0) -37,1 (2 909,6) (4 078,4) - 28,7 Operational EBIT (54,1) 14,5 - 473,1 (1
Slide 69: TFG Australia Income Statement
TFG AUSTRALIA INCOME STATEMENT FY 2021 FY 2020 FY 2021 FY 2020 % Change % Change A$m A$m Rm Rm Retail turnover 503,0 541,7 - 7,1 5 885,6 5 460,6 7,8 Gross profit 320,3 354,3 - 9,6 3 748,1 3 571,6 4,9 Expenses (255,2) (300,4) - 15,0 (2 986,0) (3 028,7) (1,4) EBIT 65,1 53,9 20,8 762,1 542,9 40,4 EBITD
Slide 70: Expenses Reset: Comparable Decline of -7,9%
EXPENSES RESET: COMPARABLE DECLINE OF –7,9% FY 2021 excl. non- GROUP EXPENSES FY 2021 FY 2020 comps % change Rm Rm % change Rm excl. non-comp Depreciation 857,6 828,5 3,5 821,9 -0,8 Employee costs 5 816,7 6 311,6 -7,8 6 027,1 -4,5 Occupancy costs 4 170,8 4 269,8 -2,3 4 379,3 2,6 Other operating cost
Slide 71: Group Statement of Financial Position
GROUP STATEMENT OF FINANCIAL POSITION FY 2021 FY 2020 FY 2021 FY 2020 Rm Rm % Change Rm Rm % Change ASSETS EQUITY AND LIABILITIES Equity attributable to equity holders Non-current assets of The Foschini Group Limited 17 211,0 15 942,6 8,0 Property, plant and equipment 2 525,0 2 937,4 -14,0 LIABILITI
Slide 72: Net Debt Ratios
NET DEBT RATIOS EBITDA to Net debt to Debt to finance costs EBITDA equity R1,3bn 6,1 0,5 7,6% MARCH 2021 Net debt • Net debt improvement driven by: (pre-IFRS 16) MARCH 2020 • Rights issue proceeds (net) of R3,8bn R8,4bn 6,8 1,6 52,4% • Strong cash flow from reduction in working capital R9,5bn 6,6 1,
Slide 73: Additional Credit Information
ADDITIONAL CREDIT INFORMATION
Slide 74: CCI – Improving Credit Health
CCI – IMPROVING CREDIT HEALTH • The TransUnion SA Consumer Credit Index (CCI) improved to 64 in Q1 2021. The CCI last improved this significantly after the 2008/09 financial crisis, which suggests the current improvement is due to a recovery from deep distress and not outright household strength. •
Slide 75: Credit EBIT Summary
CREDIT EBIT SUMMARY TFG AFRICA TFG AFRICA % of credit TFG AFRICA FY 2021 % of credit trx’s FY 2020 trx’s % change (Rm) (Rm) Income 1 797,1 16,6 2 375,5 17,2 -24,3 Net bad debt (1 222,4) 11,3 (1 275,5) 9,2 -4,2 Credit costs (529,1) 4,9 (560,9) 4,1 -5,7 EBIT 45,6 0,4 539,1 3,9 -91,5 Credit costs 275 b
Slide 76: Credit Key Ratios
CREDIT KEY RATIOS TFG AFRICA TFG AFRICA TFG AFRICA September Key indicators FY 2021 FY 2020 % change 2020 Number of applications 1 271 414 2 187 310 -41,9% 503 613 Accept rates 14,9% 36,9% 9,1% Number of new accounts 170 946 805 505 -78,8% 45 885 Number of active accounts (‘000) 2 322,5 2 788,7 -16,
Slide 77: Brand Overview
BRAND OVERVIEW
Slide 78: Business Overview
BUSINESS OVERVIEW UPPER MARKET MID TO UPPER MARKET MID TO UPPER MARKET MID MARKET VALUE MARKET TFG RESULTS PRESENTATION FOR THE YEAR ENDED 31 MARCH 2021 78
Slide 79: Our Footprint
OUR FOOTPRINT
Slide 80: TFG International Footprint
TFG INTERNATIONAL FOOTPRINT 4 284 TFG OUTLETS 26 COUNTRIES 2 929 801 554 TFG AFRICA OUTLETS TFG LONDON OUTLETS TFG AUSTRALIA OUTLETS 69% 13% 18% Contribution to turnover Contribution to turnover Contribution to turnover TFG RESULTS PRESENTATION FOR THE YEAR ENDED 31 MARCH 2021 80
Slide 81: Footprint Movement Since 1 April 2020
FOOTPRINT MOVEMENT SINCE 1 APRIL 2020 81 TFG RESULTS PRESENTATION FOR THE YEAR ENDED 31 MARCH 2021 81
Slide 82: TFG Africa Footprint
TFG AFRICA FOOTPRINT SOUTH AFRICA STORES COUNTRY STORES Gauteng 785 South Africa 2 710 Western Cape 439 Namibia 106 Kwazulu-Natal 338 Zambia 31 Mpumulanga 241 Botswana 44 Eastern Cape 240 Lesotho 20 Limpopo 234 Eswatini 18 Free State 171 North West 159 Northern Cape 103 82 TFG RESULTS PRESENTATION F
Slide 83: TFG London Footprint
TFG LONDON FOOTPRINT EUROPE TOTAL STORES CONCESSIONS ASIA TOTAL STORES CONCESSIONS UK & Ireland 568 188 380 Hong Kong 19 17 2 Switzerland 39 5 34 Japan 15 0 15 Germany 44 0 44 Singapore 1 0 1 Spain 20 0 20 Macau 3 0 3 Netherlands 12 0 12 MIDDLE EAST TOTAL STORES CONCESSIONS Sweden 1 0 1 UAE 14 0 14
Slide 84: TFG Australia Footprint
TFG AUSTRALIA FOOTPRINT AUSTRALIA TOTAL STORES CONCESSIONS Australia 520 487 33 New Zealand 34 34 0 84 TFG RESULTS PRESENTATION FOR THE YEAR ENDED 31 MARCH 2021 84