Super Retail Group Limited · ASX:SUL
Super Retail — FY2006 Earnings Presentation
19 slides from Super Retail's earnings presentation, Aug 24, 2006
Slide 1: Super Cheap Auto Group Results for the 52 weeks to 1 July 2006
Super Cheap Auto Group Results for the 52 weeks to 1 July 2006 Peter Birtles, Managing Director Gary Carroll, Chief Financial Officer 24 August 2006 BOATING» CANPING « FISHISG
Slide 2: Group Highlights
Group Highlights * Underlying Group EBIT increasing by 11% * Supercheap Auto gaining market share and at the same time growing gross and net margins in difficult trading conditions * Average inventory investment across Supercheap Auto stores reducing by over 10% whilst improving on shelf availabilit
Slide 3: Group Results
Group Results — 52 Weeks to 71 July 2006 Strong underlying profit performance driven by good control of gross margins and costs Strong cash flow arising from inventory reductions, while improving store in- stock positions Net Debt increased by circa $6m after $37+m investment in new SCA stores and B
Slide 4: Supercheap Auto Results
Supercheap Auto Results - 52 weeks to 1 July 2006 . Gross Margins were up by 0.8% pts with EBITDA margins increasing by 0.3% pts The Gross Margin improvement reflects: ~ Improvements in range and promotional planning ~ Improved trading terms ~ Reductions in logistics costs Marketing costs have incre
Slide 5: Supercheap Auto Results
Supercheap Auto Results - 52 weeks to 1 July 2006 2006 % change + Store opening schedule on track $m on py ~ 234 Stores at 1 July 2006 ~ 196 in Australia and 38 in New Zealand Total Sales - Total 481.8 3.6% + Underlying growth was solid in 2005/6 on a - Underlying Growth 5.6% 52-week comparative bas
Slide 6: BCF Results
BCF Results - 52 weeks to 7 July 2006 2006 Launch Target $m + Business launched as BCF on 15 October $m get $ 2005 Sales 44.2 40.0 ~ 4 stores traded under Camp Mart brand from start of the year until BCF launch fi oy ) «Store Numbers: Gross margin 35.7% 34.5% ~ 31 Dec 2005 - 12 - 1 July 2006 ~ 13 EB
Slide 7: Group Cash Flow
Group Cash Flow + — Strong cash flow performance driven by the reduction in net inventory investment per store in the SCA business — This has delivered a cash flow benefit of $12.1m * New Store Fit-out includes $4.6m in SCA and $5.2m in BCF + Other Investing Activities is lower than 2005 due to incl
Slide 8: Group Balance Sheet
Group Balance Sheet + SCA average inventory per store reduced from $568k at June 2005 to $499k at 1 July 2006 ~ Improved inventory management 2006 $m 2005 $m resulting from supply chain focus and investment in forecasting and Inventory replenishment systems ~ Has been achieved whilst improving - SCA
Slide 9: Group Key Financial Ratios
Group Key Financial Ratios + — Investment in BCF launch has impacted on reported financial ratios + Underlying EPS performance (excluding BCF launch costs) is positive + AIFRS has had a minor detrimental impact on the ratios due to the change in accounting for fixed rate lease arrangements + Adjuste
Slide 10: Group Strategy Update
Super Cheap Auto Group Group Strategy Update
Slide 11: Group Strategy Update
Group Strategy Update * Driving LFL sales growth in Supercheap Auto * Expansion of the Supercheap Auto network * Expansion of BCF network * Developing Procurement and Supply Chain capabilities 11
Slide 12: Driving LFL Sales Growth in SCA
Driving LFL Sales Growth in SCA *« SCA is the dominant retailer of automotive products — Competitors revising their offer * Chermside concept store trial proving successful — Customer reaction positive with sales uplift > 15% — Refurbishing 10 higher turnover stores by Christmas * Range development
Slide 13: Expansion of SCA Network
Expansion of SCA Network 237 stores trading today — 3-stores opened so far this year Development of 4 discrete formats — Existing ‘700’ format stores — ‘400’ format stores — smaller regional and higher rental urban locations — ‘200’ format stores — trial of shopping centre opportunities — Superstore
Slide 14: Expansion of BCF Network
Expansion of BCF Network + 15 stores trading today * Opened new stores at Midland and Gosford since 1 July * Port Macquarie, Cannington, Rockingham and Burleigh to open before Christmas + Will open between 10 to 15 new stores in 2006/07 + New Stores will be targeted towards NSW, WA and Qld * Assesse
Slide 15: Developing Procurement and Supply Chain Capabilities
Developing Procurement and Supply Chain Capabilities Procurement gains have generated an 0.5% pt improvement in gross margin — further improvement anticipated in FY2007 Overseas sourcing team established —- commence operating out of Hangzhou offices in October Relocated New Zealand distribution cent
Slide 16: Outlook for Full Year FY07
Super Cheap Auto Group Outlook for Full Year FY07
Slide 17: Outlook for Full Year FY07
Outlook for Full Year FY07 Super Cheap Auto * 10 to 15 new stores * Retail consumer spending on automotive products expected to be flat . Expect the business to continue to gain market share => modest LFL growt » Anticipate further improvement in gross and EBIT margins BCF * 10 to 15 new stores + Fu
Slide 18: Appendix to Full Year FY06 Results Presentation
Super Cheap Auto Group Appendix to Full Year FY06 Results Presentation
Slide 19: Appendix 1: Underlying Group Results
Appendix 1: Underlying Group Results - 52 weeks to 1 July 2006 The Group’s reported results have been impacted by long term business investment BCF set up costs - $4.8m in 2006 and $0.5m in 2005 — Concept development costs ~ Pre launch operating costs ~ Store set up costs — Launch advertising The Gr