Super Retail Group Limited · ASX:SUL
Super Retail — Investor Presentation (August 2019)
32 slides from Super Retail's investor presentation, Aug 15, 2019
Slide 1: Results for the 52 Weeks to 29 June 2019
RESULTS FOR THE 52 WEEKS TO 29 JUNE 2019 ANTHONY HERAGHTY Group Managing Director and Chief Executive Officer DAVID BURNS Chief Financial Officer 15 August 2019
Slide 2: Content
Content KEY STRENGTHS AND OPPORTUNITIES GROUP HIGHLIGHTS 2018/19 FINANCIAL RESULTS 2019/20 TRADING AND OPERATING UPDATE APPENDICES Performance Trends Business Snapshots Segment Notes 2018/19 and 2017/18 SUPER RETAIL GROUP 2
Slide 3: Key Strengths and Opportunities
Key Strengths and Opportunities FOUR LARGE, GROWING AND FOCUS ON SEAMLESS OMNI- POWERFUL BRANDS HIGHLY ENGAGED CUSTOMER RETAIL EXECUTION LOYALTY BASE • Recognised brands with market • Over six million active customers in our • Investing in digital capability to leading positions in growing loyalty p
Slide 4: Powerful Brands in Growing Lifestyle Categories
Powerful Brands in Growing Lifestyle Categories $1.0b $1.0b 2018/19 2018/19 REVENUE REVENUE 86% 94% BRAND BRAND AWARENESS1 AWARENESS1 $0.5b $0.1b 2018/19 2018/19 REVENUE REVENUE 74% 82% BRAND BRAND AWARENESS1 AWARENESS1,2 SUPER RETAIL GROUP (1) Source: Stellar Market Research, Australia Apr – Jun 4
Slide 5: Large and Highly Engaged Customer Loyalty Base
Large and Highly Engaged Customer Loyalty Base ACTIVE CLUB MEMBERS GROWING PARTICIPATION AND ENGAGEMENT 6.1M ACTIVE CLUB GROWTH IN ACTIVE CLUB MEMBERS1 IMPROVEMENT IN AVERAGE CLUB MEMBERS MEMBER NPS2 2.57M REBEL 11.3% 10.9% 12.7% 3.0% SUPERCHEAP 4 YR YOY 4 YR YOY AUTO CAGR GROWTH CAGR GROWTH 1.65M 1
Slide 6: Focus on Seamless Omni-Retail Execution
Focus on Seamless Omni-Retail Execution GROWING ONLINE SALES AND LEVERAGING STORE NETWORK SALES BY CHANNEL IN-STORE ONLINE TO LOWER COST TO SERVE Click & Home • 25% growth in online sales to Collect Delivery over $200m 94% 4% 2% • 7% online sales penetration • Online cost to serve mitigated 91% 2% 7
Slide 7: Group Highlights (agenda)
KEY STRENGTHS AND OPPORTUNITIES GROUP HIGHLIGHTS 2018/19 FINANCIAL RESULTS 2019/20 TRADING AND OPERATING UPDATE APPENDICES Performance Trends Business Snapshots Segment Notes 2018/19 and 2017/18 SUPER RETAIL GROUP 7
Slide 8: Group Highlights
Group Highlights FINANCIAL PERFORMANCE OPERATING PERFORMANCE Total Group sales of $2.71b up by 5.4% on All core businesses delivering solid LFL and pcp total sales growth Total Group LFL sales growth of 2.9% Over six million active loyalty club members Total Segment EBITDA of $314.7m up by
Slide 9: Group Highlights
Group Highlights Total sales growth 3.4% 3.8% 3.3% 70.3%1 CORE BUSINESSES DELIVERING SOLID TOTAL LFL sales growth 2.3% 3.3% 3.2% 7.3%2 AND LFL SALES GROWTH Club member % of sales 39% 61% 81% 65% ACTIVE LOYALTY CLUB MEMBERS DRIVING Club member NPS 61% 57% 61% N/A3 INCREASED SPENDING AND HIGHER NPS (1
Slide 10: Group Highlights
Group Highlights CONTINUED STRONG INVESTMENT IN OMNI-CHANNEL CAPABILITY UNDERPINNING 25% CASH GENERATION GROWTH IN GROUP ONLINE SALES AND LOWER NET DEBT • Operating cashflow of $240.9m • 94% normalised EBITDA Online sales ($m) $60m $95m $34m $12m1 cash conversion • Normalised net debt/ Online sales
Slide 11: Group Highlights
Group Highlights H E A LT H Y, H A P P Y A N D E N G A G E D T E A M M E M B E R S • Awarded an Aon Best Employer for Australia (2019), as part of Aon Best Employers global certification • certification assessed on four measures: employee engagement, organisational agility, engaging leadership and t
Slide 12: Group Highlights
Group Highlights HIGHLY EXPERIENCED LEADERSHIP TEAM IN PLACE Managing Director and CEO Anthony Heraghty Chief Financial Managing Director Managing Director Managing Director CEO Officer Supercheap Auto Rebel BCF Macpac David Burns Benjamin Ward Gary Williams Paul Bradshaw1 Alex Brandon Chief Strateg
Slide 13: 2018/19 Financial Results (agenda)
KEY STRENGTHS AND OPPORTUNITIES GROUP HIGHLIGHTS 2018/19 FINANCIAL RESULTS 2019/20 TRADING AND OPERATING UPDATE APPENDICES Performance Trends Business Snapshots Segment Notes 2018/19 and 2017/18 SUPER RETAIL GROUP 13
Slide 14: Group Results
Group Results 2018/19 Change on PCP $m • Total sales increased 5.4% reflecting solid sales and LFL Total sales 2,710.4 5.4% sales growth across all brands and full 12 month contribution from Macpac Total segment EBITDA 314.7 7.0% • Group segment EBITDA increased by 7.0% to $314.7m Segment D&A 86.6 1
Slide 15: Segment Results
Segment Results 2018/19 2017/18 $m $m Segment % Group EBIT Sales EBIT Sales EBIT Supercheap Auto 1,040.6 120.6 1,006.4 116.4 Rebel1 38% 1,016.4 93.8 979.2 91.5 BCF 8% 514.6 20.8 498.3 27.3 Macpac (incl Rays)2,3 5% 138.8 13.0 81.52 2.32 Group and (20.1) 5.0 (17.9) Unallocated Total 2,710.4 228.1 2,57
Slide 16: Supercheap Auto
Supercheap Auto • Total sales growth of 3.4% driven by like for like sales 2018/19 Change on growth and contribution from new stores $m PCP • Like for like sales growth of 2.3% driven by higher average Sales 1,040.6 3.4% item value and items per transaction • Like for like sales growth was achieved
Slide 17: Rebel
Rebel • Total sales growth of 3.8% driven by LFL sales growth 2018/19 Change on and new store openings $m1 PCP • Like for like sales growth of 3.3% was supported by transaction growth and higher average transaction Sales 1,016.4 3.8% value • Queensland, Victoria and South Australia delivered the LFL
Slide 18: BCF
BCF • 3.2% like for like sales growth was driven by higher ATV 2018/19 Change on resulting from increased units per sale $m PCP • LFL sales growth across all Australian states Sales 514.6 3.3% • Overall performance reflects significant investment in price to maintain market leading position • Gross
Slide 19: Macpac
Macpac Macpac 2018/19 2017/18 AUD m1 AUD m1 • Completed integration of Macpac Sales • Sales of $119.3m supported by new stores and 7.3% like for like - Macpac 119.32 31.4 growth (moderated in the fourth quarter) - Rays 19.5 50.1 • EBITDA of AUD17.4m(2) is 18.4% higher than acquisition case of 138.8
Slide 20: Group & Unallocated
Group & Unallocated 2018/19 Change • Group and Unallocated includes: $m $m • Corporate costs not allocated to segments • Commercial operations Sales 0.0 5.0 • Omni-retail development • Corporate costs of $20.1m (EBIT) in line with guidance provided at May trading update EBITDA (19.8) (2.1) • Un-util
Slide 21: Group Cash Flow
Group Cash Flow • Strong operating cash flow represents 94% normalised 2018/19 2017/18 EBITDA cash conversion and reflects ongoing focus on $m $m working capital together with a strategic decision to Operating cash flow (pre store set up 257.4 322.1 invest in inventory to increase in-store availabil
Slide 22: Group Balance Sheet
Group Balance Sheet Jun 19 Jun 18 • Total inventory has increased due to growth in private $m $m brand volumes, decision to invest in inventory to lift Inventory stock availability and lower A$ • Supercheap Auto inventory per store has increased - Supercheap Auto 200.9 204.5 modestly due to currency
Slide 23: Returns and Capital Ratios
Returns and Capital Ratios 2018/19 2017/18 • Normalised EPS of 77.3c an increase of 5.0% on pcp • Basic EPS of 70.6 cents an increase of 8.6% on pcp Normalised EPS 77.3c 73.7c • Normalised fixed charge cover ratio is near target of 2.2 times Basic EPS 70.6c 65.0c • While average net debt increased,
Slide 24: New Lease Accounting Standards
New Lease Accounting Standards Estimated pro forma impact of new lease accounting standards on • Super Retail Group will adopt the new lease accounting 2019/20 1,2 standards (AASB 16) from 1 July 2019 Balance sheet (1 July 2019) • The Group will adopt the modified retrospective approach (comparative
Slide 25: 2019/20 Trading and Operating Update (agenda)
KEY STRENGTHS AND OPPORTUNITIES GROUP HIGHLIGHTS 2018/19 FINANCIAL RESULTS 2019/20 TRADING AND OPERATING UPDATE APPENDICES Performance Trends Business Snapshots Segment Notes 2018/19 and 2017/18 SUPER RETAIL GROUP 25
Slide 26: Trading and Operating Update
Trading and Operating Update Group LFL sales growth for first 6 weeks • Supercheap Auto – circa 3% • Rebel – circa 2% • BCF – circa 5% • Macpac – circa negative 3% LFL sales reflecting a shift in the timing and duration of the key winter promotion Store development program for 2019/20 • Supercheap A
Slide 27: AGM and Investor Strategy Day
AGM and Investor Strategy Day • Super Retail Group’s AGM will be held at 11.30am (AEST) on 22 October at Level 23, 480 Queen Street, Brisbane • Super Retail Group will also be holding an investor strategy day on 8 November in Sydney • The Group’s corporate strategy will build upon the focus areas pr
Slide 28: Appendices (agenda)
KEY STRENGTHS AND OPPORTUNITIES GROUP HIGHLIGHTS 2018/19 FINANCIAL RESULTS 2019/20 TRADING AND OPERATING UPDATE APPENDICES Performance Trends Business Snapshots Segment Notes 2018/19 and 2017/18 SUPER RETAIL GROUP 28
Slide 29: Performance Trends
Performance Trends Reported Sales ($m) Reported Total Segment EBIT ($m) 2,570 2,710 2,239 2,422 2,466 2,020 2,112 228.1 1,654 207.3 219.6 172.3 182.6 170.2 175.3 938 1,092 87.5 140.7 65.8 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 Jun 18 Jun 19 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15
Slide 30: Business Snapshots
Business Snapshots Supercheap Auto - Key Statistics Snapshot Rebel - Key Statistics Snapshot Active club members 1.65m Active club members 2.57m Club members NPS 61% Club members NPS 57% Club sales % total sales 39% Club sales % total sales 61% Store numbers 323 Store numbers 161 Online sales % tota
Slide 31: Segment Note 2018/2019
Segment Note 2018/2019 SUPER RETAIL GROUP 31
Slide 32: Segment Note 2017/2018
Segment Note 2017/2018 SUPER RETAIL GROUP 32
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