Shoprite Holdings Limited · JSE:SHP

Shoprite — H1 2012 Earnings Presentation

7 slides from Shoprite's earnings presentation, 2012

  1. Slide 1: Aubrey Karp, Divisional Director

    Aubrey Karp Divisional Director 21

  2. Slide 2: Furniture

    Furniture • Significant trading improvements in the trading LSM 5 to 7 environment • Con=nued price vola=lity: – Rand strength – Produc=on economies of scale bringing down prices • Price compe==veness in electrical product con=nues • Market dominated by aggressive promo=ons to drive sales and reduce

  3. Slide 3: Furniture

    Furniture Sales R1.82bn + 13.6% OK Furniture House & Home Increase 19.3% 5.0% Like for like 15.1% 4.4% • Internal selling price defla=on 7.37% Sales Mix Dec 2010 Dec 2011 Home & entertainment appliances 62% 64% Furniture, bedding, pa=o and carpe=ng 38% 36% Cash 69% 68% Credit 31% 32% 23

  4. Slide 4: Furniture

    Furniture Debtors Book Dec 2010 Dec 2011 Change Debtors Book R836m R980m +17.2% New Contracts 125,214 136,103 +8.7% • Ave. Rand contract value increased 15.9% Arrears Dec 2010 Dec 2011 Actual arrears 8.7% 7.5% Balance of contract arrears 18.9% 18.3% Bad debts provision 11.1% 10.5% 24

  5. Slide 5: Furniture

    Furniture Trading Profit: R109m (19.9% increase) Sales 13.6% increase Net Gross Income 12.2% increase Total Expenses 11.1% increase Controllable Expenses 12.4% increase Fixed Costs 9.7% increase • Sales growth exceeds expense growth • OK Furniture profit increased by 30.1% • House & Home profit decreas

  6. Slide 6: Furniture

    Furniture Store Numbers New Stores Total Confirmed Opened June 2012 OK Furniture 10 240 7 OK Power Express 1 19 0 House & Home 0 49 2 Total 11 308 9 • Angola Expansion: - One store opened in Lubango - Progressing with two new stores – Lobito and Luanda 26

  7. Slide 7: Furniture

    Furniture • Low growth environment expected to con=nue un=l end of 2012, especially in higher LSMs: – NCA affordability calcula=on – Con=nuing electrical product price compe==veness Future Growth Drivers: • Expansion with 9 new stores confirmed to June 2012 • Deep discoun=ng of high value products to

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