Super Group Limited · JSE:SPG
Super — FY2010 Earnings Presentation
37 slides from Super's earnings presentation, August 2010
Slide 1: Results presentation for the year ended 30 June 2010
Results presentation for the year ended 30 June 2010 August 2010
Slide 2: Agenda
Agenda • The year at a glance • Operational review: SC Supply Chain D Dealerships FS Fleet Solutions • Group financial results • Strategy and prospects 2
Slide 3: The trading environment
The trading environment • The trading environment remained challenging, although slight volume improvements experienced in the second half of F2010 • Supply Chain volumes and margins remained under pressure due to competitive market • Logistics into Africa remained a major challenge, with very poor
Slide 4: Update on discontinued operations
Update on discontinued operations Discontinued Status business AutoZone • Transaction was concluded on 23 June 2010 yielding a net R380 million by year end Mica • Only one store remains for disposal Emerald • Sale of Emerald Insurance’s 38% interest in Emerald Risk Underwriters Transfer (Pty) Ltd to
Slide 5: Operational Review
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Slide 6: Supply Chain
Supply Chain 6
Slide 7: Financial review
Financial review R’million Change Final Final 30 June 2010 30 June 2009 Revenue (6.6)% 2 572.3 2 753.5 Operating profit (39.2)% 168.7 277.5 Operating margin 6.6% 10.1% Profit before taxation (34.4)% 128.1 195.4 2010 Revenue (R'm) 2009 Revenue (R'm) 343.6 442.4 2 228.7 2 311.1 South Africa African Lo
Slide 8: Financial review (continued)
Financial review (continued) Operating profit/(loss) (R’million) PBT (R’million) 200 140 128.6 8.7% 172.8 158.9 120 102.2% 100.4 150 100 80 63.6 (72.0)% 100 73.8 60 (79.9)% 40 44.8 31.4 28.1 50 (142.2)% 20 (191.1)% 14.8 0 0 -18.9 -28.6 -20 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010
Slide 9: Operational review
Operational review South Africa • Current economic downturn continued to put negative pressure on volumes, including imports, resulting in a 3.6% revenue decrease • Substantially reduced overhead costs and amalgamation of divisional functions resulted in 8.7% increase in operating profit • Operating
Slide 10: Operational review (continued)
Operational review (continued) South Africa (continued) • TAL impressive turnaround and increased volumes through the Mohatas Dry Port terminal and has secured a 5-year short distance bulk coal movement project • Convenience Supply Chain completed national roll-out, reported solid revenue growth and
Slide 11: Operational review (continued)
Operational review (continued) African Logistics (continued) • Old fleet resulted in high running costs for the past year – US$1.12/km • Zimbabwe adoption of US$ had a considerable impact on overhead costs International (Mauritius) • Operating profit and PBT down nearly 80% and 72%, respectively, as
Slide 12: Prospects
Prospects • Supply Chain South Africa streamlined and should benefit from any recovery in the economy, in particular import/export and automotive parts volumes • Business continues to focus on niche and strategic segments of the market with opportunities in pharmaceuticals • Organic expansion strate
Slide 13: Dealerships
Dealerships 13
Slide 14: Financial review
Financial review R’million Change Final Final 30 June 2010 30 June 2009 Revenue 1.9% 2 679.9 2 628.8 Operating profit / (loss) nm 41.7 (9.9) Operating margin 1.6% nm Profit/(loss) before taxation nm 18.2 (57.1) 14
Slide 15: Operational review
Operational review • Dealerships marginally increased revenue and returned to profitability • Total vehicle sales volumes mirrored the general industry trend and recorded a total decline of 8.6% (2009: 35.2% decline) • NAAMSA sales were down 2.3% on new vehicle sales, Dealerships showed an increase
Slide 16: Prospects
Prospects • Trading conditions in new vehicle market expected to improve slightly in F2011 • Competitive lower end new vehicle promotions and currency strength are enticing buyers into this market • Shortage of used vehicles continues, resulting in improved margins in this category • Concern that a
Slide 17: Fleet Solutions
Fleet Solutions super group
Slide 18: Financial review
Financial review R’million Change Final Final 30 June 2010 30 June 2009 Revenue (0.2)% 1 739.6 1 742.6 Operating profit (3.7)% 272.3 282.8 Operating margin 15.7% 16.2% Profit before taxation 161.1% 162.9 62.4 Revenue (R'm) Operating profit (R'm) PBT (R'm) Fleet Fleet Africa, sgfleet Fleet Africa, 58
Slide 19: Operational review
Operational review FleetAfrica • Lower interest rate environment and increased maintenance, depreciation and restructuring charges impacted both revenue and operating profit • ECPG contract extended for 2 years (commenced 1 February 2010) • A Memorandum of Understanding has been signed with Wesbank
Slide 20: Prospects
Prospects FleetAfrica • A few Government opportunities expected during 2011 – awarded Sekhukhune municipality contract post year end • Wesbank partnership strengthens position to bid for potential new FML contracts • Opportunities to partner with other funders in tendering for FML contracts in the l
Slide 21: Group Financial Results
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Slide 22: Summary of operating profit / PBT movements
Summary of operating profit / PBT movements Operating Continuing operations (R’millions) PBT profit 2009 (prior year) * 547.5 116.4 Increases/(decreases): Supply Chain South Africa 13.9 65.0 African Logistics (63.7) (60.0) International (Mauritius) (59.1) (72.3) Dealerships 51.6 75.3 Fleet Africa (6
Slide 23: Statement of comprehensive income
Statement of comprehensive income 30 June 30 June R’million 2010 2009 Change Reviewed Restated* Revenue 6 991.7 7 138.6 (2.1)% Operating profit 490.2 547.5 (10.5)% Net finance charges (272.6) (431.1) (36.8)% Profit before taxation 217.6 116.4 86.9% Net Finance Charges 2010 2009 Full maintenance leas
Slide 24: Statement of comprehensive income
Statement of comprehensive income 30 June 30 June R’million 2010 2009 Change Reviewed Restated* Revenue 6 991.7 7 138.6 (2.1)% Operating profit 490.2 547.5 (10.5)% Net finance charges (272.6) (431.1) (36.8)% Profit before taxation 217.6 116.4 86.9% Income tax expenses (45.2) 1.5 Profit after taxatio
Slide 25: Statement of financial position
Statement of financial position 30 June 30 June ASSETS (R’million) 2010 2009 Change Reviewed Audited Property, plant and equipment 1 308.0 1 242.2 5.3% PP&E movements 2010 2009 Revaluation 86 5 Depreciation 130 132 Net additions 116 172 (% of depreciation) 89% 130% 25
Slide 26: Statement of financial position
Statement of financial position 30 June 30 June ASSETS (R’million) 2010 2009 Change Reviewed Audited Property, plant and equipment 1 308.0 1 242.2 5.3% Full maintenance lease assets 1 391.6 1 722.2 (19.2)% FML movements 2010 2009 Depreciation 378 390 Net additions 28 128 (% of depreciation) 7% 33% 2
Slide 27: Statement of financial position
Statement of financial position 30 June 30 June ASSETS (R’million) 2010 2009 Change Reviewed Audited Property, plant and equipment 1 308.0 1 242.2 5.3% Full maintenance lease assets 1 391.6 1 722.2 (19.2)% Intangible assets and goodwill 1 382.3 1 411.2 (2.0)% Investments and investments in associate
Slide 28: Statement of financial position
Statement of financial position 30 June 30 June ASSETS (R’million) 2010 2009 Change Reviewed Audited Cash including overdrafts 2010 2009 Property, plant and equipment 1 308.0 1 242.2 5.3% sgfleet (Australia) 274 179 Full maintenance lease assets 1 391.6 1 722.2 (19.2)% Emerald Insurance 284 - Intang
Slide 29: Statement of financial position (continued)
Statement of financial position (continued) 30 June 30 June EQUITIES AND LIABILITIES (R’million) 2010 2009 Change Reviewed Audited Shareholders’ equity 2 362.6 994.0 137.7% Non-controlling interests 188.2 194.2 (3.1)% Total equity 2 550.8 1 188.2 114.7% Liabilities Fund reserves 291.4 268.9 8.4% Def
Slide 30: Statement of financial position (continued)
Statement of financial position (continued) 30 June 30 June EQUITIES AND LIABILITIES (R’million) 2010 2009 Change Reviewed Audited Shareholders’ equity 2 362.6 994.0 137.7% Minority interests 188.2 194.2 (3.1)% Capital and reserves 2 550.8 1 188.2 114.7% Liabilities Per share data 2010 2009 Fund res
Slide 31: Net borrowings
Net borrowings Interest 30 June 2010 30 June 2009 R’million Change profile Reviewed Audited Term loans V 238 - Nm Corporate bonds N/A - 412 Nm Securitisation borrowings N/A - 258 Nm Property borrowings H 361 425 (15.1)% Bank overdraft V - 318 Nm Other borrowings V/P 171 333 (48.6)% Total SA borrowin
Slide 32: Gearing ratios
Gearing ratios 30 June 2010 30 June 2009 Net trade (cash) / debt : Equity (4%) 142% Unrestricted gearing : Equity 25.7% 325.6% Consolidated gearing : Equity 53.7% 276.1% Interest cover (EBITDA / Net Interest) 3.8 2.6 All banking covenants have been met 32
Slide 33: Cash flow movements
33 R million 1,000 1,200 1,400 1,600 1,800 200 400 600 800 0 Opening cash balance 321 Cash from operations Working capital utilised 1 059 (212) Net finance costs paid (280) Taxation paid (57) Net cash received from business combinations Net additions to PPE & 459 (106) intangibles Net additions to F
Slide 34: Strategy and prospects
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Slide 35: Strategy
Strategy • Emphasis is on sustainable growth and service within core business units • Ensuring cost containment mentality throughout the Group • Continuing focus on cash management • Expanding operations, both organically and through strategic acquisitions in core synergy areas • Repayment of outsta
Slide 36: Prospects
Prospects • Tough trading conditions are expected to prevail throughout F2011 period – no volume improvements being experienced within the Supply Chain operations • Supply Chain will benefit from renewed as well as new contracts – post year end renewal of Usabco contract • Supply Chain should report
Slide 37: Thank you
Thank you www.supergroup.co.za 37