Super Group Limited · JSE:SPG
Super — H1 2016 Earnings Presentation
40 slides from Super's earnings presentation, 2016
Slide 1: Unaudited Interim Results Presentation 2015
UNAUDITED INTERIM RESULTS PRESENTATION 2015 FOR THE SIX MONTHS ENDED 31 DECEMBER 2015
Slide 2: Agenda
2 AGENDA ● FINANCIAL HIGHLIGHTS ● INTERIM PERIOD REVIEW ● SEGMENTAL ANALYSIS ● DIVISIONAL REVIEWS ̵ SUPPLY CHAIN ̵ FLEET SOLUTIONS ̵ DEALERSHIPS ● UNAUDITED GROUP INTERIM RESULTS ● OUTLOOK SUPER GROUP Interim Results Presentation
Slide 3: Financial Highlights for the Period Ended 31 December 2015
3 FINANCIAL HIGHLIGHTS FOR THE PERIOD ENDED 31 DECEMBER 2015 ● Revenue 40.0% R12,2 billion ● Operating profit 23.3% R883 million ● Profit before taxation 20.7% R786 million ● Headline earnings per share (HEPS) 21.2% 159 cents ● Core HEPS 10.8% 159 cents 22.8% ● NAV per share (since 30 June 2015) 2 0
Slide 4: Interim Period Review
4 INTERIM PERIOD REVIEW ● Super Group delivered a commendable set of interim results for the period to 31 December 2015 with the majority of the businesses performing well ● SG Coal reported a poor set of results due to difficult trading conditions ● During the period the following corporate transac
Slide 5: Segmental Analysis
5 SEGMENTAL ANALYSIS REVENUE – 31 DEC 2015 REVENUE – 31 DEC 2014 37% 39% 49% 53% 10% 12% OPERATING PROFIT – 31 DEC 2015 OPERATING PROFIT – 31 DEC 2014 11% 22% 35% 43% 46% 43% SUPPLY CHAIN FLEET SOLUTIONS DEALERSHIPS SUPER GROUP Interim Results Presentation
Slide 6: Segmental Analysis Continued
6 SEGMENTAL ANALYSIS CONTINUED PROFIT BEFORE TAXATION PROFIT BEFORE TAXATION 31 DEC 2015 31 DEC 2014 11% 19% 34% 40% 49% 47% NET OPERATING ASSETS NET OPERATING ASSETS 31 DEC 2015 30 JUN 2015 19% 28% 49% 47% 32% 25% SUPPLY CHAIN FLEET SOLUTIONS DEALERSHIPS SUPER GROUP Interim Results Presentation
Slide 7: Net Operating Assets per Division
7 NET OPERATING ASSETS PER DIVISION SUPPLY CHAIN FLEET SOLUTIONS 7 000 4 500 6 000 4 000 3 500 5 000 2 774 3 000 4 000 2 500 R’m R’m 2 945 3 000 2 000 1 500 814 2 000 3 104 3 324 3 302 1 000 853 1 000 500 942 959 588 0 0 DEC 2014 JUN 2015 DEC 2015 DEC 2014 JUN 2015 DEC 2015 SUPPLY CHAIN AFRICA SUPPL
Slide 8: Normalised RNOA per Division After Tax
8 NORMALISED RNOA PER DIVISION AFTER TAX Normalised Group RNOA is 15.7% (Dec 2014: 18.9%) Normalised Group RNOA, after tax, excludes the effects of acquisitions during the period Supply Chain Africa FleetAfrica SG Fleet Dealerships SA Dealerships UK RNOA = Return on Net Operating Assets SUPER GROUP
Slide 9: Divisional Reviews
9 DIVISIONAL REVIEWS SUPER GROUP Interim Results Presentation
Slide 10: Supply Chain
10 SUPPLY CHAIN SUPER GROUP Interim Results Presentation
Slide 11: Supply Chain Africa
11 SUPPLY CHAIN AFRICA REVENUE (R’m) OPERATING PROFIT (R’m) 9 000 8 321 600 532 7 193 508 8 000 500 7 000 6 000 4 029 400 228 229 5 000 3 570 300 4 000 3 000 200 2 000 4 292 4 169 280 303 274 3 623 100 1 000 0 0 JUNE 2014 JUNE 2015 JUNE 2016 JUNE 2014 JUNE 2015 JUNE 2016 PROFIT BEFORE TAXATION (R’m)
Slide 12: Supply Chain Africa Continued
12 SUPPLY CHAIN AFRICA CONTINUED ● The core Supply Chain Africa businesses delivered a strong performance, however SG Coal’s poor performance impacted the results as follows: Incl SG Coal Excl SG Coal ̵ Revenue (2.9)% 0.9% ̵ Operating profit (9.6)% 27.6% ̵ Profit before taxation (9.0)% 31.8% ● SG Co
Slide 13: Supply Chain Europe
13 SUPPLY CHAIN EUROPE ● Super Group acquired its 75% interest in IN tIME effective 2 November 2015 ● IN tIME provides Time-critical Delivery Services in predominantly Germany and Central Eastern Europe ● Time-critical Delivery Services (TDS) are: ̵ emergency shipments utilised to prevent supply cha
Slide 14: Fleet Solutions
14 FLEET SOLUTIONS SUPER GROUP Interim Results Presentation
Slide 15: FleetAfrica
15 FLEETAFRICA REVENUE (R’m) OPERATING PROFIT (R’m) 600 523 140 123 116 500 120 383 400 290 100 41 300 188 80 71 200 60 320 82 233 40 72 100 195 20 45 0 JUNE 2014 JUNE 2015 JUNE 2016 0 JUNE 2014 JUNE 2015 JUNE 2016 PROFIT BEFORE TAX (R’m) OPERATING PROFIT MARGIN (%) 160 32.0% 135 140 118 120 21.8% 2
Slide 16: FleetAfrica Continued
16 FLEETAFRICA CONTINUED ● FleetAfrica delivered an exceptional performance: ̵ Revenue 37.3% ̵ Operating profit 62.6% ̵ Profit before taxation 30.3% ● Continued implementation of the Transnet contract ● A number of key contracts were successfully concluded, including: ̵ City of Tshwane emergency veh
Slide 17: SG Fleet
17 SG FLEET REVENUE (R’m) OPERATING PROFIT (R’m) 1 800 1 552 1 617 560 1 600 600 528 1 400 500 1 200 792 861 400 278 1 000 313 800 300 600 400 825 905 200 691 282 291 200 100 215 0 JUNE 2014 JUNE 2015 JUNE 2016 0 JUNE 2014 JUNE 2015 JUNE 2016 PROFIT BEFORE TAX (R’m) OPERATING PROFIT MARGIN (%) 600 5
Slide 18: SG Fleet Continued
18 SG FLEET CONTINUED ● SG Fleet reported a good set of results: ̵ Revenue 9.7% ̵ Operating profit (excl NLC and acquisition costs) 10.1% ̵ Profit before taxation (excl NLC and acquisition costs) 11.2% ● The results were impacted by: ̵ further customer wins and the NLC acquisition – fleet size over
Slide 19: Dealerships
19 DEALERSHIPS SUPER GROUP Interim Results Presentation
Slide 20: Dealerships SA
20 DEALERSHIPS SA REVENUE (R’m) OPERATING PROFIT (Rm) 177 7 000 6 069 200 6 000 5 150 180 160 139 5 000 140 3 004 91 4 000 120 2 532 68 100 3 000 80 2 000 60 106 3 065 3 372 40 86 1 000 2 618 71 20 0 0 JUNE 2014 JUNE 2015 JUNE 2016 JUNE 2014 JUNE 2015 JUNE 2016 PROFIT BEFORE TAX (R’m) OPERATING PROF
Slide 21: Dealerships SA Continued
21 DEALERSHIPS SA CONTINUED ● Dealerships SA exceeded expectations: ̵ Revenue 10.0% ̵ Operating profit 23.5% ̵ Profit before taxation 19.5% ● NAAMSA new vehicle sales for the period to 31 December 2015 declined by 0.6% (2014: 2.5% decline) ● Dealerships continued to perform well and reported a 7.9%
Slide 22: Dealerships UK
22 DEALERSHIPS UK REVENUE (R’m) OPERATING PROFIT (Rm) 91 * 4 000 3 279 100 90 80 3 000 70 60 2 000 50 75 2 965 40 3 134 75 30 1 000 20 10 16 0 314 0 JUNE 2015 JUNE 2016 JUNE 2015 JUNE 2016 PROFIT BEFORE TAX (R’m) OPERATING PROFIT MARGIN (%) 2.8% * 80 69 * 70 60 2.5% 50 40 50 30 54 5.1% 20 10 19 2.4%
Slide 23: Dealerships UK Continued
23 DEALERSHIPS UK CONTINUED ● The results are not comparable to the prior period as Super Group only acquired 100% of Allen Ford (UK) effective 1 December 2014 ● Allen Ford (UK) performed ahead of expectations with overall new vehicle sales growth of 6.3%, their best performance to date ̵ 6.4% growt
Slide 24: Unaudited Group Interim Results
24 UNAUDITED GROUP INTERIM RESULTS SUPER GROUP Interim Results Presentation
Slide 25: Summary of Profit Movements
25 SUMMARY OF PROFIT MOVEMENTS Operating R’million PBT profit December 2014 (prior period) 716,3 651,7 Net profit movement (excl once-off transaction gains and costs): 132,9 101,0 Supply Chain Supply Chain Africa (excl SG Coal) 58,6 60,3 SG Coal (87,8) (83,7) Supply Chain Europe (IN tIME 2 months) 2
Slide 26: Once-off Operating Profit/PBT Movements
26 ONCE-OFF OPERATING PROFIT/PBT MOVEMENTS Operating R’million PBT profit December 2014 (prior period) 716,3 651,7 Net profit movement (excl once-off transaction gains and costs) 132,9 101,0 Once-off gains/(costs) associated with acquisitions: 33,7 33,7 Profit on IN tIME Foreign Exchange Contract tr
Slide 27: Statement of Comprehensive Income
27 STATEMENT OF COMPREHENSIVE INCOME 31 December 31 December Change R’million 2015 2014 % Unaudited Unaudited Revenue 12 242,5 8 747,1 40.0 Operating profit 882,9 716,3 23.3 Net finance charges (96,5) (64,6) 49.4 Profit before taxation 786,4 651,7 20.7 Income tax expense (185,2) (160,9) 15.2 Profit
Slide 28: Statement of Comprehensive Income Continued
28 STATEMENT OF COMPREHENSIVE INCOME CONTINUED 31 Dec 31 Dec Change 2015 2014 % Unaudited Unaudited Non-controlling interests (R’million) 110,6 104,7 5.6 Basic HEPS (cents) 159,2 131,4 21.2 Adjustment for non-operational/one-off items: (0,7) 11,7 - Forex profit on forward contract (30,8) - - Acquisi
Slide 29: Significant Changes to Financial Position
29 SIGNIFICANT CHANGES TO FINANCIAL POSITION ● Acquisition of a 75% equity interest in IN tIME (Germany) ● SG Fleet acquired 100% of NLC ● Rights Offer: Issued 35,019,470 shares at R25.70 on 12 October 2015, raising R900 million to part fund the IN tIME acquisition; ● Accelerated Bookbuild: Issued 1
Slide 30: Statement of Financial Position Continued
30 STATEMENT OF FINANCIAL POSITION CONTINUED 31 December 30 June ASSETS Change 2015 2015 R’million % Unaudited Audited Property, plant and equipment 3 448,5 3 313,3 4.1 Investment property 139,2 139,2 - Full maintenance lease assets 1 223,5 1 065,7 14.8 Goodwill and intangible assets 8 078,9 2 696,4
Slide 31: Statement of Financial Position Continued
31 STATEMENT OF FINANCIAL POSITION CONTINUED 31 December 30 June ASSETS Change 2015 2015 R’million % Unaudited Audited Current assets 9 532,2 7 600,7 25.4 Assets held-for-sale - 48,1 - Inventories 3 009,5 2 458,2 22.4 Trade and sundry receivables 3 669,8 2 971,5 23.5 Cash and cash equivalents 2 852,
Slide 32: Statement of Financial Position Continued
32 STATEMENT OF FINANCIAL POSITION CONTINUED 31 December 30 June EQUITY Change 2015 2015 R’million % Unaudited Audited Shareholders’ equity 7 120,8 5 022,0 41.8 Non-controlling interests 1 553,1 910,7 70.5 Total equity 8 673,9 5 932,7 46.2 Shares in issue (‘000) 345 166 298 839 15.5 Net asset value
Slide 33: Statement of Financial Position Continued
33 STATEMENT OF FINANCIAL POSITION CONTINUED 31 December 30 June LIABILITIES Change 2015 2015 R’million % Unaudited Audited Fund reserves and provisions 961,4 684,5 40.5 Deferred tax liabilities 586,1 230,2 154.6 Total borrowings 5 615,8 3 118,4 80.1 Non-controlling interest put options and other li
Slide 34: Net Borrowings
34 NET BORROWINGS 31 December 30 June Change R’million 2015 2015 % Unaudited Audited Property and other borrowings V 539 386 39.8 Corporate bond V 478 477 0.1 Asset-based borrowings V/P 829 921 (9.9) Acquisition borrowings – UK V 539 452 19.1 Acquisition borrowings – Germany V/H 957 - - SG Fleet bor
Slide 35: Cash Flow Movement
35 CASH FLOW MOVEMENT 4 000 Investing 154 R2 265 million 3 500 1 241 for the future (89) 3 000 223 2 853 (257) (96) (180) 472 64 2 500 (228) R’million 2 123 1 225 2 000 1 500 1 000 58 (1 857) 500 - SUPER GROUP Interim Results Presentation
Slide 36: Other Key Financial Data
36 OTHER KEY FINANCIAL DATA % 31 December 31 December Change 2015 2014 Return on Equity 16.2% 17.4% Total gearing 31.9% 14.6% Net interest cover 12.9x 16.0x AUD close 19.5 R11,27 R9,43 AUD average 0.4 R9,81 R9,77 EUR close 20.2 R16,81 R13,99 EUR average 6.2 R15,02 R14,14 GBP close 26.6 R22,78 R17,99
Slide 37: Outlook
37 OUTLOOK SUPER GROUP Interim Results Presentation
Slide 38: Outlook
38 OUTLOOK ● The outlook for the South African market, over the short to medium term, is subdued and reflective of: ̵ extreme currency weakness; ̵ escalating interest rates; and ̵ depressed consumer spending ● The Australian and European markets look more resilient and the Group expects growth to re
Slide 39: Thank You
39 THANK YOU Further information available on www.supergroup.co.za SUPER GROUP Interim Results Presentation
Slide 40: ADR Information
40 ADR INFORMATION Ticker SSGPY ISIN US86802E2072 CUSIP 86802E207 Structure Sponsored Level 1 ADR Exchange OTC Ratio (ADR:ORD) 1:5 ADR contact information Deutsche Bank Trust Company Americas c/o American Stock Transfer & Trust Company Peck Slip Station P.O. Box 2050 New York, NY 10272-2050 Email: D