Super Retail Group Limited · ASX:SUL
Super Retail — FY2009 Earnings Presentation
18 slides from Super Retail's earnings presentation, Aug 27, 2009
Slide 1: Results for the 52 weeks to 27 June 2009
For personal use only Super Cheap Auto Group Results for the 52 weeks to 27 June 2009 Peter Birtles, Managing Director Gary Carroll, Chief Financial Officer 27th August 2009
Slide 2: Group Highlights
Group Highlights For personal use only • Group Net Profit After Tax up by 25% over PCP • Group EBIT up by 21% over PCP • Group Sales up by 16% over PCP • Supercheap Auto and BCF operational performance – Strong like for like sales growth – Growth in gross margins • Goldcross Cycles business developm
Slide 3: Performance Trends
Performance Trends For personal use only Sales ($m) EBIT ($m) 55.1 828.8 45.7 715.4 38.1 624.8 525.9 30.4 28.9 470.1 June June June June June June June June June June 05 06 07 08 09 05 06 07 08 09 EPS (cents) Post Tax ROC (%) 30.2 15.6 13.2 13.9 14.1 24.2 11.7 20.4 20.9 15.5 June June June June June
Slide 4: Group Results
Group Results For personal use only • Strong performance driven by top-line 2008/09 Change growth and gross margin improvement on pcp $m • Solid sales growth in both SCA and BCF through both new store and LFL growth Sales 828.8 15.9% • EBIT margin growth in SCA and BCF EBITDA 73.4 19.1% • Group NPAT
Slide 5: Business Unit Results
Business Unit Results For personal use only 2008/09 2007/08 Sales EBIT Sales EBIT $m $m $m $m Supercheap Auto 604.2 46.4 558.8 41.5 BCF 205.5 16.4 156.4 7.9 Goldcross 19.1 (4.0) 0.2 (0.5) Group Costs (3.7) (3.2) Total Group 828.8 55.1 715.4 45.7 Group Costs include $1.2m DC rents not charged to busi
Slide 6: Supercheap Auto
For personal use only 2008/09 change on • 11.7% EBIT growth due to LFL sales growth and gross margin improvement $m pcp • LFL growth solid across Australia and New Sales 604.2 8.1% Zealand – builds on 4.8% LFL growth in PCP LFL Sales 7.3% • Store Development: – 30 stores refurbished – 6 new stores o
Slide 7: BCF
For personal use only 2008/09 change on • 9 stores opened and one acquired during the $m pcp year to bring total stores to 59 Sales 205.5 31.4% • BCF now trading in all mainland states • Strong LFL growth across all regions: LFL Sales 12.5% – Wider growth in the camping market – Localised ranging –
Slide 8: Goldcross Cycles
For personal use only 2008/09 2007/08 • 5 stores opened and 2 stores acquired during $m $m the year to bring total stores to 18 – 11 in Melbourne Sales 19.1 0.2 – 7 in South East Queensland • Sales performance below expectations primarily in new stores Gross margin % 42.5% - • Gross margin in line w
Slide 9: Group Cash Flow
Group Cash Flow For personal use only 2009 2008 • Continued focus on working capital $m $m management has resulted in total growth investment of $43m being fully funded out of operating cash flows Operating cash flow 81.6 70.3 • New and Refurb Store Set Up Investment: (pre store set up investment) –
Slide 10: Group Balance Sheet
Group Balance Sheet For personal use only 2009 2008 • SCA average inventory of $557k per store $m $m up by 6% compared to PCP – Increased stock weight of higher value products – Some cost increases due to commodity price and FX movements Inventory – Total stock units as at June 2009 were - SCA 142.5
Slide 11: Returns & Capital Ratios
Returns & Capital Ratios For personal use only • Increase in Interest Expense is primarily 2009 2008 due to increased debt level compared to pcp reflecting investment in business development EPS – reported 30.2c 24.2c • Finance costs include $2.2m interest rate swap mark to market adjustment in Fixe
Slide 12: Group Strategy Update
For personal use only Super Cheap Auto Group Group Strategy Update 12
Slide 13: Supercheap Auto Five Year Goals
For personal use only (5 year goal) NETWORK LFL SALES MARGIN ROC EXPANSION GROWTH GROWTH GROWTH (300 STORES) (> 3% PA) (8% EBIT) (> 30%) Multi Format New Refurbishment Program Direct Sourcing Inventory Optimisation Store Program : - Circa 40 stores pa Circa 5 stores pa - Up to $7 m cap ex Supply Cha
Slide 14: BCF Five Year Goals
For personal use only (5 year goal) NETWORK LFL SALES MARGIN ROC EXPANSION GROWTH GROWTH GROWTH (70 STORES) (> 5% PA) (9% EBIT) (> 25%) Category Opportunities New Store Program : - Water Sports / Kayak Direct Sourcing Inventory Optimisation - 11 New BCF Stores - Trailer Camping - New Formats - Ski /
Slide 15: Goldcross Five Year Goals
For personal use only (5 year goal) NETWORK LFL SALES MARGIN ROC EXPANSION GROWTH GROWTH GROWTH (50 STORES) (> 5% PA) (8% EBIT) (> 21%) New Store Program : Range Development Direct Sourcing Supply Chain Development: Own Brand Development - E-Commerce New Channel - Master Data Mgt Development - Suppl
Slide 16: Team Member Development
TEAM MEMBER DEVELOPMENT For personal use only (5 year goal) ATTRACTION RETENTION SATISFACTION SAFETY SUCCESSION (<4 weeks vacancies) (>72.5%) (>77.5%) (LTIs < 0.15%) (> 70%) Team Member Knowledge and Skills Development Business Leadership Academy Team Member Value Proposition Development Human Resou
Slide 17: Looking Forward
For personal use only Super Cheap Auto Group Looking Forward 17
Slide 18: Looking Forward
Looking Forward For personal use only Supercheap Auto • Expect to open five to eight new stores and refurbish 40 stores during the new year • LFL sales growth in the first 8 weeks of new year circa 10% • Expect further small increment in EBIT margins BCF • Expect to open five new stores • LFL sales