Shoprite Holdings Limited · JSE:SHP
Shoprite — FY2013 Earnings Presentation
20 slides from Shoprite's earnings presentation, August 2013
Slide 1: Carel Goosen, Deputy Managing Director
Carel Goosen Deputy Managing Director 2
Slide 2: Size of Operation
Size of Operation June 2013 Turnover R92.7bn Total Stores 1 836 Countries 17 Employees 111 338 Market Capitalisation* ±R95bn *During August 2013 3
Slide 3: Financial Highlights
Financial Highlights Turnover R92.7bn Trading Profit R5.4bn Trading Margin 5.82% Headline EPS 675.4c NAV per Share 2 837c Dividend per Share 338c 4
Slide 4: Key Information per Segment: Turnover
Key Information per Segment Turnover – Total + 12.1% – Supermarkets RSA + 9.8% – Supermarkets Non-RSA + 27.9% – Furniture + 4.7% – Other Operating Segments + 17.2% 5
Slide 5: Sales Growth Analysis
Sales Growth Analysis Existing Net new Total Customers Basket stores stores Supermarkets RSA 4.5% 5.3% 9.8% 2.6% 6.6% Supermarkets Non-RSA 15.3% 12.6% 27.9% 11.9% 14.6% Furniture 0.2% 4.5% 4.7% - - Other Divisions 9.5% 7.7% 17.2% - - Total 5.8% 6.3% 12.1% - - 6
Slide 6: Store Portfolios
Store Portfolios June Opened Closed June 2012 2013 Supermarkets RSA 744 62 (5) 801 Supermarkets Non-RSA 134 19 - 153 Hungry Lion 150 23 (7) 166 Furniture 314 27 (5) 336 OK Franchise 398 42 (60) 380 Total Stores 1 740 173 (77) 1 836 Pharmacies 136 13 (3) 146 Liquor Stores 165 31 (1) 195 7
Slide 7: Key Information per Segment: Trading Profit
Key Information per Segment Trading Profit – Total + 15.6% – Supermarkets RSA + 15.8% – Supermarkets Non-RSA + 31.4% – Furniture - 25.6% – Other Operating Segments + 8.4% 8
Slide 8: Highlights of Results: Gross Profit Margin
Highlights of Results June 2012 June 2013 Gross Profit Margin 20.5% 21.0% • Benefit of increased international sourcing • Investment in systems and logistics 9
Slide 9: Highlights of Results: Other Operating Income
Highlights of Results Other operating income June 2012 June 2013 Growth increased by 12.2% R’m R’m % Finance Income Earned 206 228 10.5 Net Premiums Earned 295 333 12.9 Operating Lease Income 251 280 11.3 Commissions Received 486 575 18.4 Franchise Fees Received 47 52 8.7 Investment Income 82 39 -52
Slide 10: Highlights of Results: Operating Expenses
Highlights of Results Depreciation and amortisation increased by 23.9% • Continued high spend on revamps and new branches • Spend on distribution centres and information technology Operating leases increased by 15.2% • Due to new stores opened in the past 12 months • Turnover rentals on sales growth
Slide 11: Highlights of Results: Exchange Rate Differences
Highlights of Results Exchange rate differences • June 2012 : R8.3 million loss • June 2013: R3.8 million loss Rand to US Dollar exchange rates (R:$) • June 2011 : R6.77 • June 2012 : R8.30 • June 2013 : R9.96 12
Slide 12: Highlights of Results: Income Tax Expense
Highlights of Results June 2012 June 2013 R’m R’m Net Interest Expense 81 170 - Convertible Bonds - High Capital Expenditure Income Tax Expense - Normal 1 437 1 536 - STC 92 - - Deferred (90) 42 Total 1 439 1 579 Effective tax rate (excl. STC) 30.1% 30.4% 13
Slide 13: Value Added Statement
Value Added Statement Employees R7 679m 52% Providers 14% of Capital R2 126m 11% Tax 23% R1 579m Re-invested R3 391m 14
Slide 14: Highlights of Results: Capital Expenditure
Highlights of Results Capital Expenditure June 2012 June 2013 R’m R’m Land and Buildings 565 324 Distribution Centres 356 264 Store Refurbishment 350 417 New Stores 756 1 001 Information Technology 401 405 DC Equipment 107 391 DC Vehicles 155 165 Other Replacements* 447 363 Total 3 137 3 330 *Motor
Slide 15: Highlights of Results: Contracted Capital Commitments
Highlights of Results Contracted Capital June 2012 June 2013 Commitments R’m R’m Stores 1 138 1 220 - RSA 741 518 - Non-RSA 397 702 Distribution Centres 481 487 IT Systems 88 32 Total 1 707 1 739 16
Slide 16: Highlights of Results: Net Cash Balances
Highlights of Results June 2012 June 2013 Growth R’m R’m % Net Cash Balances 7 916 6 131 -22.6 • Month-end closing date 17
Slide 17: Stockholding
Stockholding June 2012 June 2013 Growth R’m R’m % Inventory 8 680 10 317 18.9 • Provision for 114 net new corporate stores • Roll-out of value-added departments • Taking on new distribution capacity 18
Slide 18: Highlights of Results: Debtors and Other Receivables
Highlights of Results Debtors and Other June 2012 June 2013 Growth Receivables R’m R’m % Furniture Instalment Sales 1 114 1 257 12.8 Franchise 485 541 11.5 Buy-aid Organisations 126 121 -4.0 Rental and Property Debtors 273 396 45.1 MediRite and Transpharm 295 330 11.9 Money Market and Computicket 59
Slide 19: Highlights of Results: Cash Earnings
Highlights of Results Cash Earnings* (R’m) *Cash flow from operating activities excluding dividends paid and changes in working capital 20
Slide 20: HEPS vs Cash EPS vs EBITDA per Share
Highlights of Results HEPS vs Cash EPS* vs EBITDA per Share (Cents) 1 276 1 120 2010 967 2011 887 2012 846 807 803 2013 675 607 633 508 455 HEPS Cash EPS* EBITDA per share *Cash flow from operating activities excluding dividends paid and changes in working capital 21