Super Group Limited · JSE:SPG
Super — FY2011 Earnings Presentation
41 slides from Super's earnings presentation, 2011
Slide 1: Final Results Presentation
Final Results Presentation for the year ended 30 June 2011
Slide 2: Agenda
Agenda • Financial highlights • The year at a glance • Segmental overview • Divisional review • Supply Chain • Fleet Solutions • Dealerships • Group financial results • Strategy and prospects 1
Slide 3: Financial highlights
Financial highlights • Revenue 12% • R7.8 billion • Operating profit 25% • R612 million • Profit before taxation 116% • R470 million • Headline earnings - continuing 114% • R339 million • Cash generated by operations 18% • R1.2 billion • NAV per share 13% • 83.2 cents Super Group repaid R606 million
Slide 4: The year at a glance
The year at a glance • The trading environment remained subdued • Solid contracts secured despite a highly competitive market, both locally and internationally • Operating performance and profitability reflects the benefits of the cost rationalisation across all the divisions • Fleet replacement pro
Slide 5: Segmental overview
Segmental overview Revenue - 30 June 2011 Revenue - 30 June 2010 36% Supply Chain 38% 37% Supply Chain 40% Fleet Solutions Fleet Solutions Dealerships Dealerships 24% 25% Operating profit - 30 June 2011 Operating profit - 30 June 2010 11% 9% 30% Supply Chain 35% Supply Chain Fleet Solutions Fleet So
Slide 6: Segmental overview (continued)
Segmental overview (continued) Profit before tax - 30 June 2011 Profit before tax - 30 June 2010 8% 6% 34% Supply Chain 41% Supply Chain Fleet Solutions Fleet Solutions Dealerships Dealerships 53% 58% 5
Slide 7: Divisional review
Divisional review 6
Slide 8: Results of the divisions
Results of the divisions Revenue (R’m) Operating profit (R’m) 9,000 700 8,000 600 64 7,000 3,161 500 6,000 2,680 42 5,000 Dealerships 400 Dealerships 358 4,000 1,881 Fleet Solutions 300 272 Fleet Solutions 1,740 3,000 Supply Chain 200 Supply Chain 2,000 2,572 2,793 100 169 183 1,000 - - June 2010 Ju
Slide 9: Supply Chain
Supply Chain Supply Chain 8
Slide 10: Supply Chain South Africa
Supply Chain South Africa Revenue (R’m) Operating profit (R’m) 3,000.0 200.0 172.8 2,429.2 164.8 2,500.0 2,228.7 150.0 2,000.0 88.2 69.9 1,204.8 1,118.7 1,500.0 2H 100.0 2H 1,000.0 1H 1H 1,224.4 50.0 84.6 94.9 500.0 1,110.0 - - June 2010 June 2011 June 2010 June 2011 Profit before tax (R’m) Operatin
Slide 11: Supply Chain South Africa (continued)
Supply Chain South Africa (continued) • Turnover and operating profit performances driven by: • Improved volume performance in the FMCG business • A modest contribution from Automotive and Staple Food businesses on the back of improving industry performance • Improved vehicle utilisation (75.8%) wit
Slide 12: Supply Chain South Africa (continued)
Supply Chain South Africa (continued) • New contracts secured included: • Nissan South African parts distribution • Nestlé and Distell Warehousing • Perishable Products Export Control Board (PPECB) – 4PL technology application • BOC-Linde distribution planning outside of the African environment • Af
Slide 13: African Logistics
African Logistics Revenue (R’m) Operating profit/(loss) (R’m) 400.0 343.6 360.2 20.0 16.7 350.0 15.0 5.4 300.0 10.0 175.8 5.0 1.4 11.3 250.0 162.6 0.0 200.0 2H 2H -5.0 150.0 1H -10.0 1H -20.3 100.0 181.0 184.4 -15.0 50.0 -20.0 - -25.0 (18.9) June 2010 June 2011 June 2010 June 2011 Profit/(loss) befo
Slide 14: African Logistics (continued)
African Logistics (continued) • Turnover increased primarily as a result of increased South-bound activity and transport rates, partially reflecting the escalation in commodity prices over the past year • The low level activity in North-bound aid, food and mining equipment still continues to impact
Slide 15: International (Mauritius)
International (Mauritius) Operating profit (R’m) Profit before tax (R’m) 16.0 14.8 30.0 28.1 14.0 1.2 25.0 5.8 12.0 10.0 20.0 14.3 8.0 2H 15.0 2H 13.6 6.0 1H 10.0 22.3 7.0 1H 4.0 1.2 5.0 2.0 7.3 - 1.2 - - June 2010 June 2011 June 2010 June 2011 • The operation performed in line with expectations acr
Slide 16: Fleet Solutions
Fleet Solutions 15
Slide 17: Fleet Africa
Fleet Africa Revenue (R’m) Operating profit (R’m) 1,200.0 1,051.7 160.0 149.5 976.4 122.6 1,000.0 140.0 120.0 800.0 75.0 487.3 545.8 100.0 62.1 600.0 2H 80.0 2H 400.0 1H 60.0 1H 505.9 40.0 74.5 200.0 489.1 60.5 20.0 - - June 2010 June 2011 June 2010 June 2011 Profit before tax (R’m) Operating profit
Slide 18: Fleet Africa (continued)
Fleet Africa (continued) • Significantly improved results due to: • The effect of re-fleeting on the Eastern Cape Provincial Government (ECPG) contract • Cost containment and rationalisation exercise across total business • Reduction in depreciation on FML assets in line with market values • Reduced
Slide 19: Sg fleet (Australia)
Sg fleet (Australia) Revenue (R’m) 829.2 Operating profit (R’m) 900.0 800.0 763.2 250.0 208.7 700.0 421.6 200.0 600.0 395.4 149.6 500.0 150.0 400.0 2H 136.0 2H 300.0 1H 100.0 90.1 200.0 367.8 407.6 1H 100.0 50.0 59.5 72.7 - - June 2010 June 2011 June 2010 June 2011 Profit before tax (R’m) Operating
Slide 20: Sg fleet (Australia) (continued)
Sg fleet (Australia) (continued) • Sg fleet (Australia) restructure – Champ Ventures introduced as 49.9% shareholder • The leading fleet management service provider in Australia • Australian economy operating at “two speeds”: • Unabated resource boom in the West; and • Subdued consumer spending and
Slide 21: Dealerships
Dealerships 20
Slide 22: Dealerships
Dealerships Revenue (R’m) Operating profit (R’m) 3,500.0 3,161.3 70.0 63.7 3,000.0 2,679.9 60.0 2,500.0 50.0 41.7 1,682.8 35.5 2,000.0 1,372.1 40.0 2H 2H 1,500.0 30.0 22.1 1H 1H 1,000.0 20.0 1,307.8 1,478.5 28.2 500.0 10.0 19.6 - - June 2010 June 2011 June 2010 June 2011 Profit before tax (R’m) Oper
Slide 23: Dealerships (continued)
Dealerships (continued) • Total NAAMSA new vehicle sales for the year to 30 June 2011 were up 23.1%. Dealerships outperformed the industry by 1.7% • New vehicle sales continued to show strong recovery • Used vehicle market depressed as a result of “value-for-money” new car offerings and reduced stoc
Slide 24: Group financial results
supergroup , Group financial results Hs aE EE 23
Slide 25: Summary of operating profit / PBT movements
Summary of operating profit / PBT movements Operating Continuing operations (R’millions) PBT profit June 2010 (prior year) 490.2 217.6 Increases/(decreases): Supply Chain South Africa (8.0) 19.6 African Logistics 35.6 35.7 International (Mauritius) (13.5) (13.8) Fleet Africa 26.9 49.8 Sg fleet (Aust
Slide 26: Statement of comprehensive income
Statement of comprehensive income 30 June 30 June R’million 2011 2010 Change Reviewed Audited Revenue 7 834.8 6 991.7 12.1% Operating profit 612.5 490.2 24.9% Net finance charges (142.5) (272.6) (47.7)% Profit before taxation 470.0 217.6 116.0% Net finance charges (R’million) June June 2011 2010 Ful
Slide 27: Statement of comprehensive income (continued)
Statement of comprehensive income (continued) 30 June 30 June R’million 2011 2010 Change Reviewed Audited Revenue 7 834.8 6 991.7 12.1% Operating profit 612.5 490.2 24.9% Net finance charges (142.5) (272.6) (47.7)% Profit before taxation 470.0 217.6 116.0% Income tax expense (101.6) (45.2) 124.8% Pr
Slide 28: Statement of financial position
Statement of financial position 30 June 30 June ASSETS (R’million) 2011 2010 Change Reviewed Audited Property, plant and equipment 1 435.6 1 308.0 9.8% PP&E movements (R’million) June 2011 June 2010 Depreciation 135 130 Net additions 246 116 (% of depreciation) 182% 89% 27
Slide 29: Statement of financial position (continued)
Statement of financial position (continued) 30 June 30 June ASSETS (R’million) 2011 2010 Change Reviewed Audited Property, plant and equipment 1 435.6 1 308.0 9.8% Full maintenance lease assets 862.2 1 391.6 (38.0)% - Vehicles 856.8 1 315.1 - Finance lease receivables: non-current 5.4 76.5 FML movem
Slide 30: Statement of financial position (continued)
Statement of financial position (continued) 30 June 30 June ASSETS (R’million) 2011 2010 Change Reviewed Audited Property, plant and equipment 1 435.6 1 308.0 9.8% Full maintenance lease assets 862.2 1 391.6 (38.0)% Intangible assets and goodwill 1 476.8 1 382.3 6.8% Other non-current assets 1.7 27.
Slide 31: Statement of financial position (continued)
Statement of financial position (continued) 30 June 30 June ASSETS (R’million) 2011 2010 Change Reviewed Audited Property, plant and equipment 1 435.6 1 308.0 9.8% Full maintenance lease assets 862.2 1 391.6 (38.0)% Intangible assets and goodwill 1 476.8 1 382.3 6.8% Other non-current assets 1.7 27.
Slide 32: Statement of financial position (continued)
Statement of financial position (continued) 30 June 30 June EQUITY AND LIABILITIES (R’million) 2011 2010 Change Reviewed Audited Shareholders’ equity 2 572.8 2 362.6 8.9% Non-controlling interests 258.5 188.2 37.4% Total equity 2 831.3 2 550.8 11.0% Liabilities Fund reserves 357.4 291.4 22.6% Deferr
Slide 33: Net borrowings
Net borrowings Interest 30 Jun 2011 30 Jun 2010 R’million Change profile Reviewed Audited Term loans V - 237.7 (100.0)% Property borrowings H/V 308.3 317.8 (3.0)% Asset based finance V/P 220.0 170.8 28.8% Total SA borrowings (excl FML) 528.3 726.3 (27.3)% FML borrowings › SA P 703.4 919.4 (23.5)% Gr
Slide 34: Gearing ratios
Gearing ratios 60% 3.8x 6.8x 8.1x 50% 40% 30% 20% 10% 54% 26% 40% 18% 27% 18% 0% Jun 2010 (Final) Dec 2010 (Interim) June 2011 (Final) Consolidated gearing Unrestricted gearing Interest cover 33
Slide 35: Cash flow movement
R million 500 0 2,500 1,000 1,500 2,000 Opening cash balance Cash from operations 1,197 Working capital utilised 1,243 (135) Discontinued working capital (137) Cash flow movement Net finance costs paid (132) Taxation paid Dividends paid to non- (115) (38) controlling interest Net sale of businesses
Slide 36: Strategy and prospects
Strategy and prospects 35
Slide 37: Strategy
Strategy • Emphasis is on sustainable growth and service within core business units Organic • Ensuring cost containment mentality is maintained • Training and development of staff to optimise efficiencies • Continuing focus on cash and working capital management • Expanding operations through strate
Slide 38: Prospects
Prospects • General recovery of local economy remains challenging • Fuel and tyre price increases and the planned toll road tariffs expected to impact significantly on consumers • Growth rates across all Super Group business sectors expected to be modest Supply Chain South Africa • Focusing on niche
Slide 39: Prospects (continued)
Prospects (continued) Fleet Africa • The COJ (Vanilla Fleet) and related services contract extended to December 2011 • Recently submitted tenders for City of Tshwane and a few major corporate fleet contracts within South Africa • Post Office tender (currently Super Group and AVIS) up for renewal • C
Slide 40: Prospects (continued)
Prospects (continued) Dealerships • Outlook for next year should see continuing positive trend for new vehicle sales • Japanese tsunami production backlog expected to be caught up by the end of December 2011 • Carbon Tax impacting on margin – being dealt back as a discount • Consumer Act has added a
Slide 41: Thank you
Thank you www.supergroup.co.za 40