Lewis Group Limited · JSE:LEW
Lewis — FY2024 Earnings Presentation
28 slides from Lewis's earnings presentation, May 2024
Slide 1: For the Year Ended 31 March 2024
FOR THE YEAR ENDED 31 MARCH 2024
Slide 2: Review of Targets 2024 and Outlook
: my ~~) “Saax — Review of Targets 2024 and Outlook
Slide 3: Review of 2024
Review of 2024 1 Highlights 2 Operational Context 3 Operational Achievements 7 Share Buy Backs 8 Dividends 9 Returns to Shareholders Lewis Group Limited Annual Financial Results 2024
Slide 4: Highlights
Highlights Revenue Merchandise Sales Gross Profit Margin at + 9.8% + 4.7% 43.1% Collection Rate at Satisfactory Paid Operating Profit Accounts at 79.7% 81.3% + 13.1% EPS HEPS Total Dividend +15.9% to cents +7.1% to cents + 21.1% to cents 806 per Share 925 per Share 500 per Share Lewis Group Limited
Slide 5: Operational Context
Operational Challenging Operating Environment Context Lewis Group Limited Annual Financial Results 2024 2
Slide 6: Operational Achievements
Operational Achievements Same-Day Delivery remains a competitive advantage Lewis Group Limited Annual Financial Results 2024 3
Slide 7: Operational Achievements: Costs, Balance Sheet and Buy-backs
Operating costs (including insurance service expenses) increased by 5.0%, in high inflationary environment Robust balance sheet Continuing share repurchase programme • 4.2 million shares repurchased in the financial year • 46.9% of shares in issue repurchased since listing, returning R1.8bn to share
Slide 8: Store Expansion
Operational Operational Achievements Net Achievements 29 new stores opened in 2024 Store Expansion March NEW March 138 stores outside SA (LY:134 stores) 2023 2024 492 6 498 154 16 170 259 small format Lewis stores (52% of Lewis stores) 149 1 150 2 10 12 43 -4 39 150 stores refurbished Lewis Group Li
Slide 9: Client Engagement via Social Media
Operational Operational Achievements Achievements Client Engagement via Social Media The Group now enjoys over 3 million Facebook followers Lewis Group Limited Annual Financial Results 2024 6
Slide 10: Share Buy Backs
Share ShareBuy Operational Back Buy Backs Number of Shares Repurchased Achievements Since 2018 (Millions) Lewis Group Limited Annual Financial Results 2024 7
Slide 11: Dividends
Dividends Dividends Per Share & Dividend Yield (%) Dividend Yield 11.5% Average Dividend Yield of 10.3% over 5 years Lewis Group Limited Annual Financial Results 2024 8
Slide 12: Returns to Shareholders
Returns to Delivering Shareholder Returns / Shareholders Active Capital Management FY2024 FY2023 FY2022 FY2021 FY2020 Return of capital - share buy back (Rm) 170.0 275.7 353.2 112.6 101.7 Return of income - dividends (Rm) 266.6 230.6 258.0 230.1 146.5 Total spent on increasing 436.6 506.3 611.2 342.
Slide 13: Returning Profits to Shareholders
Returns to Returning Profits To Shareholders(R’m) Shareholders Delivering shareholder returns in excess of 110% over the past 5 years Lewis Group Limited Annual Financial Results 2024 10
Slide 14: Debtor Analysis
Debtor Analysis 12 Debtor Performance 15 Gross Debtor Analysis Lewis Group Limited Annual Financial Results 2024 11
Slide 15: Debtor Performance: Instalment Collections
Debtor Performance Instalment Collections (%) 80.8% 79.7% 79.0% 74.5% 71.8% FY2020 FY2021 FY2022 FY2023 FY2024 Lewis Group Limited Annual Financial Results 2024 12
Slide 16: Debtor Performance: Collections and Debtor Costs
Debtor Performance 2024 2023 Collections (Rm) Collections from instalment sales (+10.9%) 5 282 4 762 Contractual arrears (Rm) 1 706 1 670 % of debtors at gross carrying value 24.5% 27.8% Debtor costs (Rm) Debtor costs (+70.3%) 1 225 720 • Net bad debts written off 782 791 • Debtors’ impairment provi
Slide 17: Debtor Performance: Impairment Provisions
Debtor Performance % % % 2024 2023 of Debtors of Debtors movement Gross Debtors(Rm) 6 949 6 013 15.6 Net bad debts 782 790 (1.1) Impairment model provision 2 259 32.5% 1 994 33.2% 13.3 Economic overlay provision 347 5.0% 169 2.8% 105.4 Total impairment provision 2 606 37.5% 2 163 36.0% 20.5 Debtors’
Slide 18: Gross Debtor Analysis
Gross Gross Debtor Debtor Analysis Analysis Gross Instalments in arrears Number of Impairment Impairment Total carrying Customer grouping customers value provision provision arrears ≤3 months >3 months Total R’000 % R’000 R’000 R’000 R’000 FY2024 520 512 5 328 692 1 351 020 25.4 695 162 461 622 233
Slide 19: Gross Debtor Performance
Gross Debtor Satisfactory Paid Accounts (%) Performance 81.3% 80.4% 79.0% 74.4% 70.5% FY2020 FY2021 FY2022 FY2023 FY2024 Satisfactory paid customers increasing to all time high of 81.3% Lewis Group Limited Annual Financial Results 2024 16
Slide 20: Financial Results
Financial Results 18 Income Statement 19 Segmental Analysis 20 Balance Sheet Overview 21 Key Ratios Lewis Group Limited Annual Financial Results 2024 17
Slide 21: Income Statement
Income Statement FY2024 FY2023 % Revenue* (Rm) 8 184 7 456 9.8 Merchandise sales (Rm) 4 653 4 443 4.7 Gross profit margin (%) 43.1 40.6 Total operating costs* (Rm) (3 558) (3 389) 5.0 Operating costs* (2 835) (2 713) 4.5 Insurance service expenses* (723) (676) 7.0 Adoption of IFRS 17 insurance Impai
Slide 22: Segmental Analysis
Debtor Segmental Performance Analysis Group Traditional UFO FY2024 FY2023 FY2024 FY2023 FY2024 FY2023 Revenue (Rm) 8 184 7 456 7 741 6 950 443 506 Merchandise sales (Rm) 4 653 4 443 4 217 3 945 436 498 Total Operating costs (Rm) 3 558 3 389 3 395 3 188 163 201 Operating profit /(loss) before impairm
Slide 23: Balance Sheet Overview
Balance Sheet Overview FY2024 FY2023 Rm Rm Property, plant, equipment and intangible assets 553 541 Right-of-use assets 794 760 Inventory 724 869 Trade and other receivables* 4 483 3 947 Insurance contract asset* 197 126 Cash on hand 224 183 Other assets 558 619 Total assets 7 533 7 045 Shareholders
Slide 24: Key Ratios
Key Ratios Lewis Group Limited Annual Financial Results 2024 21
Slide 25: Targets and Outlook
Targets and Outlook 23 Financial and Operating Targets 24 Outlook Lewis Group Limited Annual Financial Results 2024 22
Slide 26: Financial and Operating Targets
Financial and Operating Targets FY2024 Targets (%) Actual Targets Year-end 2025 Medium-term Gross profit margin 43.1 40-42 40-42 41-43 Increase in operating costs 5.0 6-10 6-10 4-8 Satisfactory paid customers 81.3 77-80 77-80 77-80 Debtor costs as a % of debtors at gross carrying value 17.6 12-16 13
Slide 27: Lewis Group Limited Annual Financial Results 2024
Lewis Group Limited Annual Financial Results 2024 24
Slide 28: Lewis Group Limited Annual Financial Results 2024
Lewis Group Limited Annual Financial Results 2024 25