Mr Price Group Limited · JSE:MRP

Mr Price — FY2009 Earnings Presentation

25 slides from Mr Price's earnings presentation, March 2009

  1. Slide 1: Mr Price Group Limited Annual Results March 2009

  2. Slide 2: Annual results highlights

    Mr Price Group Limited Annual Results March 2009  Group revenue R8,9 billion – up 19%  Operating profit R827 million – up 16%  Diluted headline earnings per share 244.6 cents – up 16%  Dividends per share – up 15%  Cash sales maintained at 84%  Return on capital employed 53%  16,855 people em

  3. Slide 3: Retail sales and operating profit

    Mr Price Group Limited Annual Results March 2009 2009 2008 Growth Retail sales (R’b) 8.6 7.2 19.3% Comparable sales 11.4% Weighted average trading space (net) 16.5% RSP inflation 5.0% Profit from operating activities (R’m) 827 716 15.5% Operating margin (%) 9.6 9.9

  4. Slide 4: Earnings and dividends per share

    Mr Price Group Limited Annual Results March 2009 Cents per share 2009 2008 Growth Headline earnings 251.9 219.0 15.0% - excluding STC impact 264.2 221.4 19.3% Diluted headline earnings 244.6 210.8 16.0% - excluding STC impact 256.5 213.1 20.4% Dividends 133.0 116.0 14.7%

  5. Slide 5: Retail sales and operating profit trend

    Mr Price Group Limited Annual Results March 2009 10,000 900 9,000 800 8,000 700 Operating profit (R’m) Retail sales (R’m) 7,000 600 6,000 500 5,000 400 4,000 300 3,000 2,000 200 1,000 100 - - 2004 2005 2006 2007 2008 2009 Retail sales Operating profit

  6. Slide 6: DPS, HEPS and full-time associates

    Mr Price Group Limited Annual Results March 2009 300 12,000 250 10,000 Full-time associates Cents per share 200 251.9 8,000 219.0 150 191.8 6,000 161.7 100 4,000 108.8 89.1 133.0 116.0 50 81.0 101.0 2,000 60.0 35.0 - - 2004 2005 2006 2007 2008 2009 DPS HEPS Number of associates

  7. Slide 7: Cash generated from operating activities and capital expenditure

    Mr Price Group Limited Annual Results March 2009 900 800 700 600 500 R’m 400 300 200 100 - 2004 2005 2006 2007 2008 2009 Cash generated from operating activities Capital expenditure

  8. Slide 8: Net inventories, payables and capital expenditure

    Mr Price Group Limited Annual Results March 2009 2009 2008 Growth Net inventories 1,002 909 10.3% % sales growth 19.3% Stock turn (times) 5,5 5,3 Benefits of Redgold Trade and other payables 1,208 1,034 16.9% Capital expenditure 234 260 -9.8%

  9. Slide 9: Trade receivables and bad debts

    Mr Price Group Limited Annual Results March 2009 2009 2008 Growth Gross trade receivables (R’m) 669 542 23.3% Total number of active accounts (000) 817 727 12.4% Net bad debts as % credit sales * 3.2 4.1 Net bad debts as % debtors * 6.6 8.6 Impairment provision (% of debtors) 9.8 9.0 Markov chain an

  10. Slide 10: Mr Price division results

    Mr Price Group Limited Annual Results March 2009 2009 2008 Growth Revenue (R’b) 6.1 4.9 23.0% Comparable sales 16.2% Unit sales 16.5% Weighted average space growth 13.5% RSP inflation 4.0% Retail sales per m² 20,393 18,859 8.1% Operating margin (%) 14.0 13.8 Number of stores 572 534

  11. Slide 11: Division results

    Mr Price Group Limited Annual Results March 2009 2009 2008 Growth Revenue (R’b) 4.6 3.7 24.5% Comparable sales 20.3% Unit sales 15.7% Weighted average space growth 6.7% RSP inflation 6.0% Retail sales per m² 24,548 21,127 16.2% Number of stores 326 315

  12. Slide 12: Market share and shopper growth

    Mr Price Group Limited Annual Results March 2009  Number of shoppers as measured by AMPS increased by 11.2%  Per RLC, market share increased from 9.8% in March 2008 to 11.1% in March 2009  Sales growth for RLC 6.3% compared with 22.7% achieved by Mr Price  Sold in excess of 92 million units  In

  13. Slide 13: Division results

    Mr Price Group Limited Annual Results March 2009 2009 2008 Growth Revenue (R’m) 368.6 240.3 53.4% Comparable sales -4.2% Unit sales 59.1% Weighted average space growth 73.4% RSP deflation 4.0% Retail sales per m² 9,449 10,699 -11.7% Number of stores 31 23

  14. Slide 14: Division results

    Mr Price Group Limited Annual Results March 2009 2009 2008 Growth Revenue (R’b) 1,1 1,0 10.2% Comparable sales 4.0% Unit sales 7.0% Weighted average space growth 10.8% RSP inflation 1.1% Retail sales per m² 15,361 15,440 -0.5% Number of stores 215 196

  15. Slide 15: New stores and market share

    Mr Price Group Limited Annual Results March 2009  Opened 20 new stores during the year (including René Taylor)  Per RLC increased market share in both total ladieswear and outsize ladieswear during the year  Increased share of outsize ladieswear from 14.6% in 2005 to 22.8% in 2009

  16. Slide 16: Division results

    Mr Price Group Limited Annual Results March 2009 2009 2008 Growth Revenue (R’b) 2.7 2.4 12.3% Comparable sales 2.0% Unit sales 3.0% Weighted average space growth 21.3% RSP inflation 6.3% Retail sales per m² 13,825 14,953 -7.5% Operating margin (%) 3.1 5.0 Number of stores 382 362

  17. Slide 17: Division results

    Mr Price Group Limited Annual Results March 2009 2009 2008 Growth Revenue (R’b) 1.9 1.6 13.4% Comparable sales 2.5% Unit sales 4.4% Weighted average space growth 24.3% RSP inflation 4.6% Retail sales per m² 12,880 14,139 -8.9% Number of stores 138 140

  18. Slide 18: Market share growth

    Mr Price Group Limited Annual Results March 2009  Continued growth in market share per RLC  Per AMPS, grew the number of shoppers compared with AMPS universe which was flat  Gain mostly from increase in number of black shoppers  Sold 35 million units

  19. Slide 19: Division results

    Mr Price Group Limited Annual Results March 2009 2009 2008 Growth Revenue (R’m) 819 747 9.7% Comparable sales 0.9% Unit sales 0.1% Weighted average space growth 13.1% RSP inflation 9.7% Retail sales per m² 16,621 17,143 -3.0% Number of stores 244 222

  20. Slide 20: New stores and revamp programme

    Mr Price Group Limited Annual Results March 2009  Opened 24 stores  New store revamp and wrap continues to be successful, with stores delivering increased sales growth % post revamp and achieving ROCE targets

  21. Slide 21: Year-end stores outside South Africa

    Mr Price Group Limited Annual Results March 2009 Year End Stores Mr Price Sheet Mr Price Home Street Zambia 1 Ghana 1 Tanzania 1 1 Mozambique 1 1 2 Kenya 2 1 1 Mauritius 1 1 Saudi Arabia 3 Total 7 7 3

  22. Slide 22: Systems rollout phases

    Mr Price Group Limited Annual Results March 2009  Phase 1: 90% rolled out in Mr Price 1/3rd complete in other divisions  Phase 2: Includes product lifecycle management and location planning Will be completed in Mr Price during 2010 and then rolled out to other divisions

  23. Slide 23: Gains from initiative in Mr Price

    Mr Price Group Limited Annual Results March 2009 5,000  Proven to be very 4,500 successful in Mr Price 4,000 3,500  In 2010 Mr Price will build 3,000 on gains made to date 2,500 20.3 16.2 2,000  Other divisions will start to 14.7 1,500 experience benefits 1,000 through improved 500 comparable sal

  24. Slide 24: Outlook

    Mr Price Group Limited Annual Results March 2009  Expect an even tighter economic environment  RLC statistics are proving that we are capturing market share as consumers shop for value during tougher economic conditions

  25. Slide 25: Mr Price Group Limited

    Mr Price Group Limited Annual Results March 2009

Mr Price Group — FY2009 Earnings Presentation on 6ix