Shoprite Holdings Limited · JSE:SHP

Shoprite — FY2012 Earnings Presentation

21 slides from Shoprite's earnings presentation, August 2012

  1. Slide 1: i ee er

    i ee er

  2. Slide 2: Carel Goosen, Deputy Managing Director

    Carel Goosen Deputy Managing Director 2

  3. Slide 3: Size of Operation

    Size of Opera?on June 2012 Turnover R83bn Owned Outlets 1 334 Franchise Outlets 406 Countries 17 Employees 102 137 Market Capitalisa<on* >R94bn *During August 2012 3

  4. Slide 4: Financial Highlights

    Financial Highlights Turnover R 82.7bn Trading Profit R4.7bn Trading Margin 5.64% Headline EPS 607c NAV per Share 2 382c Dividend per Share 303c 4

  5. Slide 5: Key Information per Segment

    Key Informa?on per Segment • Turnover – Total + 14.4% – Supermarkets RSA + 12.9% – Supermarkets Non-­‐RSA + 25.4% – Furniture + 11.1% – Other Opera<ng Segments + 18.4% • Trading Profit – Total + 17.0% – Supermarkets RSA + 17.7% – Supermarkets Non-­‐RSA + 12.2% – Furniture + 33.5% – Other Opera<ng Seg

  6. Slide 6: Value Added Statement

    Value Added Statement Employees R6.931m Providers 54% 13% of Capital R1.645m 11% 22% Tax R1.439m Re-­‐invested R2.805m 6

  7. Slide 7: Sales Growth Analysis

    Sales Growth Analysis Exis?ng Net new Total Customers Basket stores stores Supermarkets RSA 7.6% 5.3% 12.9% 3.4% 8.5% Supermarkets Non-­‐RSA 15.4% 10.0% 25.4% 9.7% 9.6% Furniture 8.8% 2.3% 11.1% -­‐ -­‐ Other Divisions 10.5% 7.9% 18.4% -­‐ -­‐ Total 8.5% 5.9% 14.4% -­‐ -­‐ 7

  8. Slide 8: Store Portfolios

    Store Por[olios June 2011 Opened Closed June 2012 Supermarkets RSA 700 50 (6) 744 Supermarkets Non-­‐RSA 114 18 (1) 131 Hungry Lion 130 18 (3) 145 Furniture 300 21 (7) 314 Owned Stores 1 244 107 (17) 1 334 Franchise 276 172 (42) 406 Total Stores 1 520 279 (59) 1 740 Pharmacies 121 18 (3) 136 Liquor

  9. Slide 9: Highlights of Results: Gross profit margin

    Highlights of Results June 2011 June 2012 Gross profit margin 20.3% 20.5% • Investment in logis<cs • Higher non-­‐food contribu<on • Higher internal food infla<on 9

  10. Slide 10: Highlights of Results: Other operating income

    Highlights of Results Other opera?ng income June 2011 June 2012 Growth increased by 25.3% R’m R’m % Finance income earned 196 206 5.2 Net premiums earned 257 295 14.5 Opera<ng lease income 232 251 8.4 Commissions received 412 486 17.8 Franchise fees received 38 47 24.0 Investment income 28 82 >190 S

  11. Slide 11: Highlights of Results: Operating expenses

    Highlights of Results Deprecia?on and amor?sa?on increased 16.8% • Con<nued high spend on revamps and new branches • Spend on distribu<on centres and informa<on technology Opera?ng leases increased 14.1% • Due to new stores opened in the past 12 months • Turnover rentals on sales growth Employee ben

  12. Slide 12: Highlights of Results: Trading profit

    Highlights of Results Trading profit increased 17% with turnover increasing by 14.4% • Op<mising of margins • Contained overhead costs • Growth in in-­‐store services • Effec<ve systems and logis<cal infrastructure 12

  13. Slide 13: Highlights of Results: Exchange rate differences

    Highlights of Results Exchange rate differences • June 2011: R446 thousand loss • June 2012: R8 million loss Rand to US Dollar exchange rate (R:$) • June 2010: R7.75 • June 2011: R6.77 • June 2012: R8.30 13

  14. Slide 14: Highlights of Results: Interest and income tax

    Highlights of Results June 2011 June 2012 R’m R’m Net Interest Paid 31 81 -­‐ High Capital Expenditure -­‐ Conver<ble Bonds Income Tax Expense -­‐ Normal 1 260 1 437 -­‐ STC 122 92 -­‐ Deferred (35) (90) Total 1 347 1 439 Effec?ve tax rate (excl. STC) 31.6% 30.1% 14

  15. Slide 15: Capital Expenditure

    Highlights of Results Capital Expenditure June 2011 June 2012 R’m R’m Land and Buildings 937 921 Store Refurbishment 361 350 New Stores 610 756 Informa<on Technology 374 401 Other Replacements* 735 709 Total 3 017 3 137 *Motor vehicles, generators and office furniture 15

  16. Slide 16: Contracted Capital Commitments

    Highlights of Results Contracted Capital Commitments June 2011 June 2012 R’m R’m Stores 814 1 138 -­‐ RSA 514 741 -­‐ Non-­‐RSA 300 397 Distribu<on Centres 449 481 IT Systems 80 88 Total 1 343 1 707 16

  17. Slide 17: Highlights of Results: Cash balances

    Highlights of Results June 2011 June 2012 Growth R’m R’m % (Overdrad)/cash balances (81) 7 916 >100 • Issue of R3.5 billion worth of shares • Issue of R4.5 billion worth of conver<ble bonds 17

  18. Slide 18: Stockholding

    Stockholding June 2011 June 2012 Growth R’m R’m % Inventory 7 056 8 680 23 • Stocking up 90 new corporate stores • Increase in internal food infla<on • More SKU’s through enlarged DC’s 81% Opening Stock Net New Stores -­‐2% Real GEB Growth 1% Infla?on 4% Weakening rand 8% 8% Effec?ve stock reduc?on 18

  19. Slide 19: Debtors and Other Receivables

    Highlights of Results Debtors and Other Receivables June 2011 June 2012 Growth R’m R’m % Furniture Instalment Sales 798 936 17.3 Franchise 375 485 29.3 Buy-­‐aid Organisa<ons 129 126 (2.3) Rental and Property Debtors 259 273 5.4 MediRite and Transpharm 157 295 87.9 Money Market and Compu<cket 102 59

  20. Slide 20: Cash earnings

    Highlights of Results Cash earnings* (R'm) 4 084 4 119 3 187 2 756 2009 2010 2011 2012 *Cash flow from opera<ng ac<vi<es excluding dividends paid and changes in working capital 20

  21. Slide 21: HEPS vs. EBITDA per share

    Highlights of Results HEPS vs. EBITDA per share (cents) 21

Shoprite Holdings — FY2012 Earnings Presentation on 6ix