Slide 1: Results for the 52 weeks to 1st July 2017
For personal use only Results for the 52 weeks to 1st July 2017 Peter Birtles Group Managing Director and Chief Executive Officer David Burns Chief Financial Officer 25 August 2017
Slide 2: Contents
For personal use only Contents 2016/17 Financial Results 2017/18 Trading Update Group Strategy
Slide 3: Group Highlights
Group Highlights • Total Group sales of $2.5 billion up by 4.1% on a LFL basis For personal use only • Total Segment EBIT of $207.3 million up by 18.3% on pcp • Normalised NPAT of $135.8 million up by 25.0% on pcp • Operating cash flow of $234.5 million up by $75.3 million on pcp • Full year dividen
Slide 4: Performance Trends
Performance Trends Reported Sales ($m) Reported Total Segment EBIT For personal use only ($m) 2,422 2,466 2,239 2,020 2,112 1,654 207.3 172.3 182.6 170.2 175.3 1,092 140.7 938 829 715 87.5 45.7 55.1 65.8 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 Jun 08 Jun 09 Jun 10 Jun 1
Slide 5: Performance Trends: Team and Customer
For personal use only Performance Trends Team Team Engagement Safety Team Retention Lost Time Injury Frequency Rate 71% 71% 75% 75% 74% 68% 13.2 8.8 6.3 Jun 15 Jun 16 Jun 17 Jun 15 Jun 16 Jun 17 Jun 15 Jun 16 Jun 17 Customer Average Net Active Club Customer Promoter Score Members Transactions 42.8M
Slide 6: Group Results
Group Results 2016/17 Change on $m PCP For personal use only • Total Sales increased 3.5%, adjusting for week Total Sales 2,465.8 1.8% 53 sales • Group segment EBIT increase driven by a Total Segment EBITDA 278.0 13.1% combination of underlying performance, benefits of transformation initiatives and
Slide 7: Segment Results
Segment Results 2016/17 2015/16 For personal use only Sales Segment EBIT Sales Segment EBIT $m $m $m $m Auto Segment 955.9 111.0 922.8 104.6 Leisure Segment 553.5 25.4 581.9 18.6 Sports Segment 949.2 91.3 910.2 77.8 Group & Unallocated 7.2 (20.4) 7.3 (25.7) Total Segment Result 2,465.8 207.3 2,422.2
Slide 8: Auto Retailing
Auto Retailing • Strong like for like sales growth of 3.5% driven 2016/17 Change on For personal use only by ATV and transaction growth $m PCP • Auto Accessories and Auto Maintenance categories delivered strong like for like sales Sales 955.9 3.6% growth • Tools and Outdoor category impacted by LFL
Slide 9: Leisure Retailing
Leisure Retailing • Total sales decrease reflects closure of Ray’s For personal use only Outdoors stores 2016/17 Change on • BCF like for like sales growth(1) of 5.1% driven by $m PCP increased transaction and ATV growth through improved pricing and promotion management Sales 553.5 (4.9%) • E-commer
Slide 10: Sports Retailing
For personal use only Sports Retailing • Like for like sales growth in Rebel and Amart 2016/17 Change on Sports driven by average transaction value $m PCP growth • Strong LFL growth for Kids and Mens Apparel, Sales 949.2 4.3% and for Equipment and Accessories • Footwear category performance was more
Slide 11: Group & Unallocated
Group & Unallocated • Group and Unallocated includes: 2016/17 Change on For personal use only • Corporate costs not allocated to $m PCP segments • Commercial Operations Sales 7.2 (1.4%) • Digital Businesses • Corporate costs reflect increased incentive $m provisions in line with improved company EBI
Slide 12: Group Cash Flow
Group Cash Flow 2016/17 2015/16 For personal use only • Operating cash flow (pre store set up $m $m investment) is circa $42m higher than pcp on an Operating cash flow comparable basis (impact of 53rd week in 264.8 184.4 (pre store set up investment) 2015/16) Store set up investment (30.3) (25.2) •
Slide 13: Group Balance Sheet
Group Balance Sheet Jun 17 Jun 16 For personal use only • Inventory performance has been sound $m $m accommodating an increased cost base from Australian dollar weakening and growth in Inventory private brand volumes - Auto Retailing 187.7 188.7 • SCA average $ inventory per store has - Leisure Reta
Slide 14: Returns & Capital Ratios
Returns & Capital Ratios 2016/17 2015/16 For personal use only • Normalised EPS of 68.9c an increase of 25% Normalised EPS 68.9c 55.1c on pcp • Normalised Fixed charge cover ratio, Basic EPS 51.6c 31.8c calculated after adjusting for transformation costs (2016/17 all non cash items) Fixed charge cov
Slide 15: Segment Note 2016/17
Segment Note 2016/17 For personal use only 15
Slide 16: Segment Note 2015/16
Segment Note 2015/16 For personal use only 16
Slide 17: Contents
For personal use only Contents 2016/17 Financial Results 2017/18 Trading Update Group Strategy
Slide 18: 2017/18 Trading Update
2017/18 Trading Update Auto Retailing For personal use only • LFL sales growth in the first 7 weeks of 2017/18 circa 4% • SCA store development: plan to open 10 new stores and close one store, 46 refurbishments, extensions and relocations Leisure Retailing • LFL sales growth in the first 7 weeks of
Slide 19: Contents
For personal use only Contents 2016/17 Financial Results 2017/18 Trading Update Group Strategy
Slide 20: Group strategy on a page
Group strategy on a page OUR VISION Inspiring you to live your passion For personal use only To provide solutions and engaging experiences that enable our customers to OUR PURPOSE make the most of their leisure time Growing businesses in Engaging capable team Building a world class OUR STRATEGY high
Slide 21: Key initiatives – investing in customer experience
Key initiatives – investing in customer experience • Implementing click-and-collect into Sports For personal use only • Extending click-and-collect in Auto and Leisure OMNI • Extending customer delivery and collection options • Improving direct to customer delivery capability and efficiency • New we
Slide 22: Key initiatives – building business capability
Key initiatives – building business capability Developing analytics data hub leveraging Group’s 10 year club history For personal use only • • Enhancing email campaign automation CUSTOMER • Embedding NPS analytics as driver of commercial decisions INSIGHT • Partnering with analytics companies to adv
Slide 23: Key initiatives – delivering business efficiency
Key initiatives – delivering business efficiency • Review commenced of the Group wide operating model to: For personal use only OPERATING o set up operations in the optimal manner to build a successful MODEL omni-retail organisation o identify efficiency opportunities in Group wide operations • Divi
Slide 24: Delivering our financial targets
Delivering our financial targets 5 Year Target Store Numbers LFL Growth EBIT Margin Pre Tax ROC % * For personal use only Auto 350 >3% PA 12% > 50% Leisure 220 >3% PA 11% > 30% Sports 230 >4% PA 11% > 30% *Excludes acquired goodwill and brand names Opportunities Challenges • Growing store numbers to