Super Retail Group Limited · ASX:SUL
Super Retail — Shareholder Meeting (October 2004)
34 slides from Super Retail's shareholder meeting presentation, Oct 21, 2004
Slide 1: Thank you Dick for the comments on our performance
Thank you Dick for the comments on our performance. Given that this is our first AGM, | thought | would take the opportunity to explain a little about SCA to our shareholders.
Slide 2: Who is Super Cheap Auto?
Who is Super Cheap Auto? First, who is Super Cheap Auto?
Slide 3: SCA is one of Australia's fastest growing specialty retailers
SCA is one of Australia’s fastest growing specialty retailers. Our business covers automotive parts, accessories, handyman items, tools and equipment and more.
Slide 4: Business Offer
Business Offer A DIY customer’s paradise, Super Cheap Auto retails products relating to: the car the house the garage the trailer the boat and the yard; covering everything from automotive parts and accessories, handyman items, tools and equipment to 4x4 and marine. VAMOMOMMAW ¢$¢¢¢¢ ¢ Estimated mar
Slide 5: Store internals and merchandising
The internals of our store are very distinctive through the way we merchandise our extensive range of products and we are renowned for the volume of product we have on display.
Slide 6: Product Categories
Product Categories 13 Product Categories: @ Car Care @ Leisure/Outdoor @ Tools @ Performance / @ Interior @ Spare Parts : @ Exterior @ Lubricants @ Paint & Panel @ Batteries @ Seat Covers @ Electrical @ Audio Visual g Our product offer is dissected into 13 separate product categories. Some of these
Slide 7: Our Brands
Our Brands LAMAN The registered brands and trademarks of Super Cheap Auto are an important part of our product offer. Our eight brands generate in excess of 27% of our total turnover.
Slide 8: Our Store
Our Store... A hay jacks tool boxes coolant«e:«cacaliraacg gaskets batt H ie) : Lis pice & iva : filters g i : 5 . : & : gear/trans alr tools = performance 5 =a 7] sound car carc U 1 LU | a electrical paint and pane} H H . U .Q ir : ; js 5 exteri : trailer ping 2 Co EF + +++ 4] § GEE EEE) H ‘™ exter
Slide 9: Our Signage
Our Signage LAMAN oo el TUE A Externally, our stores are very distinctive with effective use of our prominent red, yellow and white signage to identify the site.
Slide 10: Our People
Our People & Our Culture A store full of products is nothing without its people and at Super Cheap, our people and our culture, as Dick mentioned, are critical to our success.
Slide 11: Our distinctive uniform
Our distinctive uniform is just one part of identifying the Super Cheap Team Member and is a link to our culture.
Slide 12: Our Culture
Our Culture We believe in a team approach that: « Shares the same vision * Commitment to open and effective communication + Enjoyment of the shopping experience « Has a customer service mentality + Acommitment to reinvention * Application of standards in all areas, shares a passion for our business,
Slide 13: Team Framework Principles
Team Framework Principles Set clear and precise objectives which are understood by everyone. Trust and respect each other and the team as a unit. Provide feedback at all stages of the process. Review and adjust the plan constantly, reset objectives to continually improve. Praise and encourage fellow
Slide 14: Core Strengths
Core Strengths Team Culture Reinvention Logic LAMAN Retailing Knowledge Product & Brand Management Marketing & Promotions oo ¢ © ¢@¢—h6UtDlUM Property Management 14 At Super Cheap, we have developed skills in many areas and we believe our core strengths relates to our team culture, our reinvention l
Slide 15: Management Structure
Management Structure Theresa Steve Rob Steve Burrows Boyle Dawkins Tewkesbury Our Senior Management Team is key to the application of these core strengths and | would like to acknowledge the substantial amount of effort and commitment that the Senior Management Team along with all our team members h
Slide 16: The Way We Market
The Way We Market Our Business One of our values is to maintain a distinct point of difference and we apply this to the way we market our business.
Slide 17: The Marketing / Media
LAMAN The Marketing / Media Television Catalogues — 8, 12 & 16 page (5 million copies per catalogue) Press Radio 17 We aggressively promote our business through extensive use of television, supported by catalogue, press, radio and motorsport. Our catalogues which run {2 times per annum each with in
Slide 18: Our catalogues
Our catalogues again show that distinct point of difference in the way we present our offer.
Slide 19: Advertising
Advertising As does our TV advertising through its unique style and friendly characters (who are also very inexpensive!)
Slide 20: Achievements FY 03/04
Achievements FY 03/04 | would like to talk about some of our achievements for the 04 financial year.
Slide 21: Key Highlights for 03/04 Financial Year
Key Highlights for 03/04 Financial Year ™ Successful integration of Marlows & Rocca Bros business m Seven week conversion program ~ 20 stores, 2 DC’s ™ Launched in New Zealand m= 7 stores on one day — 29" November 2003 ™ Opened 39 new stores _ m= Australia: 20 m New Zealand: 19 LAMAN ™ Increased tea
Slide 22: Key Highlights for 03/04 Financial Year
Key Highlights for 03/04 Financial Year = Merchandise Planning Initiatives m= = Product Forums m= = Category Planning / Range Reviews LAMAN » Re-engineered Supply Chain m= = New DC in Wiri (Auckland), New Zealand 7 % Wri, ™ =~ Closed South Australian DC (acquired in Marlow’s transaction) Auskend m=
Slide 23: Key Highlights for 03/04 Financial Year
Key Highlights for 03/04 Financial Year ™ EXCEEDED PLANNED STORE OPENINGS m Exceeded Prospectus forecasts for store openings m Opened 7 stores in June 2004 that had been forecast to open in July 2004 m Finished with 183 stores against Prospectus Forecast of 176 ™ EXCEEDED SALES m $382.7m ($3.8m ahea
Slide 24: Store Numbers
Store Numbers LAMAN Jun 01 Jun 62 Jun 63 Jun 04 Prospectus » 183 stores trading by 26 June 04 m 7 higher than prospectus forecast m 39 stores opened during the year + 20 stores in Australia + 19 stores in New Zealand » 194 stores trading at 21 October 04 24 This graph shows the growth in store numbe
Slide 25: 28.2% compound annual growth for the past 10 years
Our achievements in 04 have meant that the business has delivered 28.2% compound annual growth for the past 10 years. A result that we are extremely proud of and | would believe is quite unique in the retail industry in Australia.
Slide 26: Outlook 2004/05
2004/05 Outlook Slide 26 / 27 | would now like to talk about the outlook for 05. At this point in time, our sales are in line to achieve prospectus forecasts of $474.3 million, as are our store openings to deliver 205 stores for the 05 year. Our initiatives to achieve improvements in working capital
Slide 27: 04/05 Outlook
04/05 Outlook @ Sales in line with Prospectus forecast of $474.3m @ Store openings on track to meet Prospectus forecasts of 205 stores for 05 year Supply chain and trading term initiatives are delivering margin and working capital benefits PEE SIIOOOWWWWW Operating costs in line with Prospectus fore
Slide 28: 04/05 Outlook
04/05 Outlook » Currently 194 stores trading at 21 October 04 ™ On track to achieve 205 stores trading by June 2005 and prospectus forecasts Store Numbers] $450 $400 $350 5 $300 + g $256 + $200 + $158 5 $100 5 $50 + $0 + LAMAN Australia New Zealand Australia New Zealand mOaFY « Fecast 05 FY m04 FY =
Slide 29: Initiatives: Project FOSIL
05 Initiatives # Project FOSIL - Focus on Supply, Inventory and Logistics ™ Potential to delivering revenue, cost and capital benefits for: LAMAN H Freight efficiency m@ DC productivity m Forecasting and replenishment systems = Inventory management ™ Benefits included in prospectus forecast for 2004
Slide 30: Initiatives: Supplier Relations
05 Initiatives @ Supplier Relations ® Continue improvement with our Suppliers: ™ = =§$Collaborative approach to future requirements Range development and exclusivity Own brand LAMAN " = ™ = = Trading terms . Payment methods @ Merchandise Planning =» Range reviews ® Christmas 04 initiatives covering:
Slide 31: Initiatives: Promotional activity
05 Initiatives Promotional activity ® First quarter: Lower than 04 financial year ® Second quarter: Higher than 04 financial year ® Third quarter: tn line with 04 financial year ® Fourth quarter: In line with 04 financial year LAMAN @ Confirmed stores for 2004 calendar year Port Macquarie, NSW Hamil
Slide 32: First Quarter Results
First Quarter Results * Quarterly results (week ending 2°¢ October 2004) for 2004/05 » Sales: $118.4m ™»> Growth on ‘04 financial year: 22.1% > Like for like growth: 4.0% LAMAN Store Numbers, Sales| $118.4 200 192 _ $120 Australia New Total Zealand Company Austratia New Zealand Total Company 2 First
Slide 33: Our Current Locations
Our Current Locations at 27 October 2004 ga store® EERO MWMMMOO®O_ y Newcastle Auckland“ Wellington hristchurch 33 As at 21st October, we are trading with 194 stores and can boast that we trade in all states and territories in Australia and now both islands of New Zealand.
Slide 34: In closing
g J Z 4 Z / @ In closing | would like to assure you of my commitment and that of our Senior Management Team to the performance and delivery of the forecast numbers for the 05 year.
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