Spar Group Limited · JSE:SPP
Spar — The SPAR Group — Non-Deal Roadshow (2009)
32 slides from Spar's roadshow presentation, 2009
Slide 1: SPAR Investor Roadshow 2009
Slide 2: Agenda
Agenda Financial overview Retail performance Wholesale update Looking forward Questions 2
Slide 3: Financial Overview
Financial Overview R million 2008 2009 % Change Turnover 26 742 31 962 19.5 Trading profit 972 1 215 25.0 PAT 682 745 9.2 HEPS (excl BEE) 405.7 484.8 19.5 Dividend (cents) 255 322 26.3 Return on equity 52.5 43.5 3
Slide 4: Financial Overview: Turnover
Financial Overview Turnover (Rm) 2008 2009 % Change Spar/TOPS 24 270 29 158 20.1 Build it 2 472 2 804 13.4 Ratio 9.2% 8.8% TOTAL 26 742 31 962 19.5 Liquor sales (TOPS & SPAR) 1 307 1 732 32.5 Ratio 4.9% 5.4% 4
Slide 5: Turnover growth reconciliation
Financial Overview Turnover growth reconciliation % Spar retail growth - organic 14.7 new stores 3.8 18.5 TOPS “excess” growth/improved loyalty 1.0 19.5 5
Slide 6: Financial Overview: Margins
Financial Overview Margins (as % turnover) 2008 2009 Gross margin 8.1 8.0 Net expenses (4.4) (4.2) Net margin 3.7 3.8 6
Slide 7: Cash flow
Cash flow Rm Cash flow from trading 1 374 Working capital changes (164) 1 210 Capex (442) Tax (527) Dividends (468) Loans/shares 95 Proceeds on disposal assets 101 Net cash outflow (31) 7
Slide 8: Retail Performance
Retail Performance Retail Stores 2008 2009 Change Superspar 218 242 +24 Spar 457 462 +5 Kwikspar 150 142 8 825 846 +21 Sq meters 000’s 834 883 + 5.8% Remodels 144 137 Tops 352 416 +64 Build it 245 250 +5 8
Slide 9: SPAR Sales & Market Share
SPAR Sales & Market Share 27.9% 27.6% 26% 24.6% 20% 9
Slide 10: Distribution Update
DISTRIBUTION UPDATE 10
Slide 11: North Rand
NORTH RAND 33 600m² 11
Slide 12: South Rand
SOUTH RAND 60 000m² 12
Slide 13: KZN Dry
KZN DRY N = ) eo) o) fo) wv
Slide 14: KZN Perishables
KZN PERISHABLES 10 000m² 14
Slide 15: Western Cape
WESTERN CAPE 33 500m² 15
Slide 16: Eastern Cape
EASTERN CAPE 24 000m² 16
Slide 17: Lowveld
LOWVELD 17 000m² 17
Slide 18: Looking forward
Looking forward … • Trading environment • Key focus areas 18
Slide 19: Trading Environment
Trading Environment • Business confidence • Economy interest rates/lending criteria inflation costs • Emerging market power … outlook positive 19
Slide 20: Key Focus Areas
Key Focus Areas Retail • Growth new stores 20
Slide 21: Key Focus Areas: Expected store numbers
Key Focus Areas… Retail Stores Expected 2009 2010 Superspar 242 +10 Spar 462 +16 Kwikspar 142 +4 846 +30 Sq metres 000’s 883 +3% Remodels 137 +135 Tops 416 +35 Build it 250 +15 21
Slide 22: Key Focus Areas
Key Focus Areas Retail • Growth - new stores - existing stores * “remix” * extending offer 22
Slide 23: Quarter-half-full chicken
quarter-half-fullchicken ZzxclUSsiva Chicka chicken
Slide 24: Prepaid electricity
————— PRE PAID ELECTMICITY CIS REEL INES —. rate. COMER is]
Slide 25: Key Focus Areas
Key Focus Areas Retail • Growth - new stores - existing stores * “remix” * extending offer • Costs • Securing finance for retailers • Marketing 25
Slide 26: 26
26
Slide 27: Key Focus Areas: Wholesale
Key Focus Areas Wholesale • Warehouse facilities • Build it wholesale • Lean organisation • Transformation • Competition Commission 27
Slide 28: Questions
QUESTIONS 28
Slide 29: 29
29
Slide 30: Basket price comparison by chain and region
Chain Audit Date W01 OCT 09 Total Basket R' # of Index Region Chain Value items Percentage 1 Johannesburg 1 WW R 9,269.37 328 114% 2 PnP R 8,143.20 328 100% 3 Chkrs R 8,277.66 328 102% 4 Sspar R 8,179.37 328 100% 4 Durban 1 WW R 9,251.33 328 113% 2 PnP R 8,173.60 328 100% 3 Chkrs R 8,180.08 328 100%
Slide 31: BMI Retail In Store Basket
BMI Retail In Store Basket Indexed on Checkers Region Store # Items R'Value % Index E Cape Checkers GreenAcres 225 6,281.51 100.0% PnP Family Gardens 225 6,261.93 99.7% PnP Hypermarket William Moffat 225 6,235.56 99.3% PnP Walmer 225 6,249.53 99.5% Shoprite Green Acres 225 6,348.80 101.1% Spar Water
Slide 32: BMI Retail In Store Basket
BMI Retail In Store Basket Indexed on Checkers Region Store # Items R'Value % Index KZN Checkers Hyper Pavillion 217 5,841.03 100.0% Checkers Westville 217 5,807.74 99.4% PnP Family Westville 217 5,861.20 100.3% PnP Gateway 217 5,863.93 100.4% PnP Hypermarket By The Sea 217 5,657.87 96.9% Shoprite C