Super Retail Group Limited · ASX:SUL
Super Retail — Super Cheap Auto Group — H1 FY2009 Earnings Presentation
21 slides from Super Retail's earnings presentation, Feb 19, 2009
Slide 1: Results for the 26 weeks to 27 December 2008
For personal use only Super Cheap Auto Group Results for the 26 weeks to 27 December 2008 Peter Birtles, Managing Director Gary Carroll, Chief Financial Officer 19th February 2009
Slide 2: Group Highlights
Group Highlights For personal use only • Group Net Profit After Tax up by 9% over PCP • Group EBIT up by 8% over PCP • Group Sales up by 13% over PCP • Strong operational performance in both Supercheap Auto and BCF – Maintaining solid like for like sales growth – Growth in gross margins • Goldcross
Slide 3: Performance Trends
Performance Trends For personal use only Sales ($m) EBIT ($m) 23.6 412.8 21.8 365.7 312.3 16.0 264.7 13.8 221.9 11.1 Dec 04 Dec 05 Dec 06 Dec 07 Dec 08 Dec 04 Dec 05 Dec 06 Dec 07 Dec 08 EPS (cents) Post Tax ROC (%) 12.7 15.6 11.7 15.0 15.2 13.7 7.7 8.5 8.8 5.6 Dec 04 Dec 05 Dec 06 Dec 07 Dec 08 Dec
Slide 4: Group Results
Group Results For personal use only • Strong underlying profit performance 2008 Change driven by top-line growth and gross on pcp margin improvement $m • Solid sales growth in both SCA and BCF through both new store and LFL Sales 412.8 12.9% growth EBITDA 32.2 10.1% • Overall EBIT and NPAT growth he
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 302.6 19.5 287.4 18.1 BCF 101.6 7.9 78.3 4.8 Goldcross 8.6 (1.6) Group Costs (2.2) (1.1) Total Group 412.8 23.6 365.7 21.8 Group Costs include $0.6m DC rents not charged to business units, $
Slide 6: Supercheap Auto Results
Supercheap Auto Results For personal use only 2008 change on • 8% EBIT growth due to LFL sales growth, pcp margin improvement and cost control $m • LFL growth solid across Australia and New Sales 302.6 5.3% Zealand – builds on 4.7% LFL growth in PCP LFL Sales 4.5% • Store Development: – 25 stores re
Slide 7: BCF Results
BCF Results For personal use only 2008 change on • 5 stores opened and one acquired during $m pcp the half to bring total stores to 55 Sales 101.6 29.8% • Strong LFL growth of 6.8%, with good growth in all regions LFL Sales 6.8% • Strong growth across all categories, with apparel growing to 5.5% of
Slide 8: Goldcross Results
Goldcross Results For personal use only • 4 stores opened and 2 stores acquired 2008 during the half to bring total stores to 17 $m – 11 in Melbourne – 6 in South East Queensland Sales 8.6 • Range development complete and supply partners in place Gross margin 40.2% • Sales from new Queensland stores
Slide 9: Group Cash Flow
Group Cash Flow For personal use only 2008 2007 • Continued focus on working capital $m $m management has resulted in total growth investment of $30m being fully funded out of operating cash flows Operating cash flow 59.4 44.2 • New and Refurb Store Set Up Investment: (pre store set up investment) –
Slide 10: Group Balance Sheet
Group Balance Sheet For personal use only Dec 08 Jun 08 • SCA average inventory of $587k per store $m $m up by 3.3% compared to PCP – Stock build for 20%/25% off sale which fell at the start of the 2nd half – Increased stock weight of higher value car audio and navigation products Inventory – Some c
Slide 11: Returns & Capital Ratios
Returns & Capital Ratios For personal use only • Increase in Interest Expense is primarily 2008 2007 due to increased debt level compared to pcp reflecting investment in business development EPS – reported 12.7c 11.7c • Fixed charge cover and adjusted capital ratios have deteriorated slightly due to
Slide 12: Group Strategy Update
For personal use only Super Cheap Auto Group Group Strategy Update 12
Slide 13: Core Strategic Themes
Core Strategic Themes For personal use only • Driving sales and margin growth in Supercheap Auto • Driving sales and margin growth in BCF • Developing the Goldcross business • Developing Procurement and Supply Chain capabilities • Developing Our People 13
Slide 14: Driving Sales and Margin Growth in Supercheap Auto
Driving Sales and Margin Growth in Supercheap Auto For personal use only • Store Development – Expect to open one to two stores, relocate one store and close one store in the balance of 2008/09 – Potential remains for 300 stores – Two existing stores to be converted to Superstores – Country model re
Slide 15: Driving Sales and Margin growth in BCF
Driving Sales and Margin growth in BCF For personal use only • Store Development – 55 stores trading today • QLD – 22; NSW - 13; WA - 11; VIC - 6; NT – 1; ACT - 2 – Potential to open 70 stores – Expect to open a further three to five stores and relocate one store in the balance of 2008/09 – First So
Slide 16: Developing the Goldcross business
Developing the Goldcross business For personal use only • Business Plan – Phase 1 – Build a network of 20 stores across Melbourne and South East Queensland – Review and refine business operations to develop a profitable business model – Key challenge is to drive sales per square metre • Range Develo
Slide 17: Developing Procurement and Supply Chain Capabilities
Developing Procurement and Supply Chain Capabilities For personal use only • Continuing focus on cost of doing business through Group Logistics – Goal is to reduce Logistics costs as a % of sales by 1.0% pt between FY05 and FY10 – DC Network development increased Group Logistics costs by 0.5% pts in
Slide 18: Developing our People
Developing our People For personal use only • Continuing Investment in People – As forecast, people costs are increasing as a % of sales – Improved customer service will drive customer loyalty => marketing spend reducing as a % of sales • Team Member Development – Year 3 of the Business Leadership A
Slide 19: Looking Forward
For personal use only Super Cheap Auto Group Looking Forward 19
Slide 20: Looking Forward
Looking Forward For personal use only Supercheap Auto • Expect to open one to two new stores and refurbish 5 stores during 2nd half • LFL sales growth in the first 7 weeks of 2nd half above 5.0% • Expect to maintain small increment in EBIT margins BCF • Expect to open three to five new stores • LFL
Slide 21: Half Year FY09 Results Presentation
For personal use only Super Cheap Auto Group Half Year FY09 Results Presentation 21
Super Cheap Auto Group — H1 FY2009 Earnings Presentation on 6ix