Shoprite Holdings Limited · JSE:SHP

Shoprite — H1 2011 Earnings Presentation

6 slides from Shoprite's earnings presentation, 2011

  1. Slide 1: Furniture

    Furniture EAenne Nel General Manager: Retail Investments

  2. Slide 2: Furniture

    Furniture • Spending in middle-­‐to-­‐high LSM remains subdued • Reduced interest rates failed to kick-­‐start credit sales • Aggressive price compe--on in home entertainment and appliances • Selling price defla-on in all product categories 23

  3. Slide 3: Furniture continued

    Furniture conAnued Sales R1.60bn OK Furniture House & Home Increase/(decrease) 7.4% 0.3% Like for like 1.5% (3.3%) • Internal selling price defla-on 14.47% Sales Mix Dec 2009 Dec 2010 Home & entertainment appliances 65% 62% Furniture, bedding, photo and carpe-ng 35% 38% Cash 68.5% 69.2% Credit 31.5%

  4. Slide 4: Furniture continued

    Furniture conAnued Debtors Book Dec 2009 Dec 2010 Debtors Book R907m R1,15bn New Contracts 134,355 125,214 • Decrease of 7% in number of approved new contracts Arrears Dec 2009 Dec 2010 Actual arrears 9.0% 8.7% Balance of contract arrears 23.8% 18.9% Bad debts provision 12.7% 11.1% 25

  5. Slide 5: Furniture continued

    Furniture conAnued Trading Profit: R91m -­‐ Decrease 12.9% Sales 4.3% increase Nei Gross Income 4.8% increase Total Expenses 8.0% increase Controllable Expenses 5.9% increase Fixed Costs 17.3% increase • Sales did not increase in line with expenses, especially fixed expenses, afer opening of 20 new st

  6. Slide 6: Furniture continued

    Furniture conAnued Store Numbers Confirmed Confirmed Opened Total June 2011 June 2012 OK Furniture 17 231 8 10 OK Power Express 0 17 1 0 House & Home 3 50 0 1 Total 20 298 9 11 • One store opened in Huambo, Angola and one in Lusaka, Zambia 27

Shoprite Holdings — H1 2011 Earnings Presentation on 6ix