Lewis Group Limited · JSE:LEW
Lewis — FY2012 Earnings Presentation
19 slides from Lewis's earnings presentation, May 2012
Slide 1: Results Presentation for the 12 months ended 31 March 2012
By Group Ltd Results Presentation for the 12 months ended 31 March 2012
Slide 2: Agenda
y Agenda - Overview of Results - Debtor Analysis - Financial Results - Outlook - Questions
Slide 3: Overview of Results
1. OVERVIEW OF RESULTS R4 857m R919 m 23.5% 882.5c 270c + 6.1% 38.9% 23.5% +13.0% + 30.0% Revenue Gross Operating Headline Final Profit Margin Earnings Dividend per share per share LY 4 578 LY 36.3% LY 23.0% LY 781.1c LY 207c 3
Slide 4: Operating Profit - History
Operating Profit - History Solid operating performance over the past 12 years – Compound annual growth of 13% 1 200 R1 139 R1 052 1 000 R907 R860 R883 R832 800 R729 ons R594 600 R Millio R506 R429 R361 400 R298 200 - 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year Operating profit (
Slide 5: Overview of Results
Overview of Results • Sales pattern for the year. - Furniture & appliances (83% of business) - up 4.8% (FY12) - Electronic sales ((17% of business)) - down 3.5% ((FY 12)) • Stable credit/cash mix - 71.4% . • Revenue - Insurance premiums - Service income • Credit application decline rate – 33.0% (LY:
Slide 6: Overview of Results (Cont'd)
Overview of Results (Cont’d) • Store roll out – 29 stores opened. • Merchandise a key focus. • New ranges launched twice a year. • Gross profit margin improved improved. FY12 FY11 FY10 Gross profit 38 9% 38.9% 36 3% 36.3% 34 9% 34.9% Exchange gains/(losses) 0.6% (0.3%) (1.5%) All in gross 39.5% 36.0
Slide 7: Debtor Analysis
Debtor Analysis
Slide 8: Debtor Costs
Debtor Costs FY12 FY11 Rm Rm Total Debtor costs 522 459 Bad debts written off 405 336 Impairment Provision 117 123 Debtor costs as a % of net debtors 10 8% 10.8% 10 2% 10.2% 8
Slide 9: Debtor Payment Analysis
Debtor Payment Analysis Impairment provision allocated on number of customers in the four summary categories. IMPAIRMENT NUMBER OF CUSTOMERS PROVISION % Debtor's Payment Analysis 2012 2011 2012 2011 Customers fully up to No. 491,478 521,304 date including those who Satisfactory paid have paid 70% or
Slide 10: Financial Results
af Group Ltd Financial Results 10
Slide 11: Income Statement
Income Statement FY12 FY11 Rm Rm % Revenue 4 857 4 578 6 1% 6.1% Merchandise sales 2 365 2 290 3.3% Gross profit % 38.9% 36.3% Operating profit 1 139 1 053 8.2% Operating margin % 23.5% 23.0% Attributable earnings 801 712 12 5% 12.5% EPS (cents) 905 807 12.1% Headline EPS (cents) 883 781 13.0% 11
Slide 12: Segmental Analysis
Segmental Analysis Best H Home and My 2012 Group Lewis Electric Home Revenue (Rm) 4 857 4 084 653 120 Revenue growth (%) 6 1% 6.1% 6 0% 6.0% 11 0% 11.0% (11 6%) (11.6%) Operating profit (Rm) 1 139 985 146 8 Operating margin FY:12 23.5% 24.1% 22.3% 7.0% FY:11 23.0% 23.9% 21.4% 5.0% Number of stores 6
Slide 13: Analysis of Costs
Analysis of Costs Excluding Debtor Costs FY12 FY11 Change Rm Rm % Employment p y costs 733 693 5.7% Admin and IT 221 208 6.3% Marketing 185 156 17.6% Occupancy costs 207 186 11.4% Transport/Travel 178 148 20.6% Depreciation 49 47 4.3% Other operating costs 177 170 4.9% Total 1 750 1 608 8.8% % of re
Slide 14: Balance Sheet Overview
Balance Sheet Overview FY12 FY11 Rm Rm Property, plant and equipment 312 279 Investments 1 378 1 097 Inventory 281 256 Net Debtors 4 065 3 835 Cash 78 84 T t l Assets Total A t 6 114 5 551 Shareholders equity and reserves Shareholders’ 4 275 3 728 Retirement benefits 64 59 Tax and Deferred Tax 115 1
Slide 15: Cash Flow
Cash Flow FY12 FY11 Cash Flow - Trading 1 358 1 296 W ki C Working Capital it l 386 519 Cash Flow - Operations 972 777 Interest & Tax Paid 367 358 Insurance Investments 194 160 Vehicles and F&F 78 67 Dividends 330 292 ((3)) 100 Opening Borrowings 999 899 Net Borrowings 996 999 15
Slide 16: Capital Ratios
Capital Ratios FY12 FY11 ROE – after tax (%) 20.0% 20.3% ROCE – after tax (%) 16.7% 17.2% ROA – before tax (%) 21 1% 21.1% 21 8% 21.8% Total Dividend (cents) 442 363 Gearing ratio (%) 23.3% 26.8% • No further share buy back planned • Investing in store roll out/Debtor book 16
Slide 17: Outlook
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Slide 18: Outlook
Outlook • Financial and operating targets 2013 Medium-term Gross profit margin (%) 36 – 38 36 – 38 O Operating ti costst as a % off revenue 36 – 37 35 – 36 Debtor costs as a % of net debtors 9.5 – 10.5 8 Operating p gp profit margin g ((%)) 23 – 24 26 Inventory turn (times) 5 – 5.5 5 – 5.5 Gearing (
Slide 19: Questions
Questions 19