RESULTS FOR THE 52 WEEKS TO 29 JUNE 2019 ANTHONY HERAGHTY Group Managing Director and Chief Executive Officer DAVID BURNS Chief Financial Officer 15 August 2019 Content KEY STRENGTHS AND OPPORTUNITIES GROUP HIGHLIGHTS 2018/19 FINANCIAL RESULTS 2019/20 TRADING AND OPERATING UPDATE APPENDICES Performance Trends Business Snapshots Segment Notes 2018/19 and 2017/18 SUPER RETAIL GROUP 2 Key Strengths and Opportunities FOUR LARGE, GROWING AND FOCUS ON SEAMLESS OMNI- POWERFUL BRANDS HIGHLY ENGAGED CUSTOMER RETAIL EXECUTION LOYALTY BASE • Recognised brands with market • Over six million active customers in our • Investing in digital capability to leading positions in growing loyalty programs develop a seamless omni-channel platform and grow online market share lifestyle categories • Loyalty club members represent over 56% of total Group - sales • Leveraging store network to mitigate • Loyalty club members have a higher online cost to serve via click and ATV than non club members collect • Opportunity to create closer • Scale allows us to fractionalise the cost relationships with our customers by of our investment in technology and refreshing our loyalty programs and systems across our entire brand utilising customer data analytics to portfolio, store network and customer deliver more personalised offers transaction base SUPER RETAIL GROUP 3 Powerful Brands in Growing Lifestyle Categories $1.0b $1.0b 2018/19 2018/19 REVENUE REVENUE 86% 94% BRAND BRAND AWARENESS1 AWARENESS1 $0.5b $0.1b 2018/19 2018/19 REVENUE REVENUE 74% 82% BRAND BRAND 1,2 AWARENESS1 AWARENESS SUPER RETAIL GROUP (1) Source: Stellar Market Research, Australia Apr – Jun 4 (2) Macpac brand awareness is for New Zealand Large and Highly Engaged Customer Loyalty Base ACTIVE CLUB MEMBERS GROWING PARTICIPATION AND ENGAGEMENT 6.1M 1 ACTIVE CLUB GROWTH IN ACTIVE CLUB MEMBERS IMPROVEMENT IN AVERAGE CLUB MEMBER NPS2 2.57M MEMBERS REBEL 11.3% 10.9% 12.7% 3.0% SUPERCHEAP 4 YR YOY 4 YR YOY AUTO CAGR GROWTH CAGR GROWTH 1.65M 1.45M 57.9% 59.6% 53.5% BCF 6.1M 5.5M 0.41M 5.2M 43.1% 4.5M 36.9% 4.0M Jun 15 Jun 16 Jun 17 Jun 18 Jun 19 Jun 15 Jun 16 Jun 17 Jun 18 Jun 19 MACPAC SUPER RETAIL GROUP (1) Includes Macpac active club members. Excluding Macpac 4 year CAGR is 9.4%. 5 (2) Supercheap Auto, Rebel and BCF only. Macpac NPS not measured in 2018/19 but will be introduced in 2019/20. Focus on Seamless Omni-Retail Execution GROWING ONLINE SALES AND LEVERAGING STORE NETWORK SALES BY CHANNEL IN-STORE ONLINE TO LOWER COST TO SERVE Click & Home • 25% growth in online sales to Collect Delivery over $200m 94% 4% 2% • 7% online sales penetration • Online cost to serve mitigated 91% 2% 7% by click & collect omni customer behavior 93% 5% 2% • Click & collect represents over 40% of online sales 90% N/A 10% • Only 4% of total sales are on- line orders delivered to home TOTAL GROUP 93% 3% 4% SUPER RETAIL GROUP 6 KEY STRENGTHS AND OPPORTUNITIES GROUP HIGHLIGHTS 2018/19 FINANCIAL RESULTS 2019/20 TRADING AND OPERATING UPDATE APPENDICES Performance Trends Business Snapshots Segment Notes 2018/19 and 2017/18 SUPER RETAIL GROUP 7 Group Highlights FINANCIAL PERFORMANCE OPERATING PERFORMANCE Total Group sales of $2.71b up by 5.4% on All core businesses delivering solid LFL and pcp total sales growth Total Group LFL sales growth of 2.9% Over six million active loyalty club members Total Segment EBITDA of $314.7m up by 7.0% driving increased spending and higher NPS on pcp Continued strong cash generation and lower Segment D&A increased by 16.2% to $86.6m net debt reflecting increased omni-retail investment Investment in omni-channel capability Total Segment EBIT of $228.1m up by 3.9% on underpinning 25% growth in Group online pcp sales Normalised NPAT of $152.5m up by 5.0% on Improved team member safety performance pcp Highly experienced leadership team Final fully franked dividend of 28.5 cents per in place share contributing to full year dividends totalling 50.0 cents per share SUPER RETAIL GROUP 8 Group Highlights Total sales growth 3.4% 3.8% 3.3% 70.3%1 CORE BUSINESSES DELIVERING SOLID TOTAL LFL sales growth 2.3% 3.3% 3.2% 7.3%2 AND LFL SALES GROWTH ACTIVE Club member % of sales 39% 61% 81% 65% LOYALTY CLUB MEMBERS DRIVING Club member NPS 61% 57% 61% N/A3 INCREASED SPENDING AND HIGHER NPS (1) Macpac was owned for 12 months in FY2018/19 compared to 3 months in FY2017/18. (2) Includes Adventure Hubs post April Easter trading period, week 44 (3) NPS measure not measured for Macpac in 2018/19 but will be introduced in 2019/20. SUPER RETAIL GROUP 9 Group Highlights CONTINUED STRONG INVESTMENT IN OMNI-CHANNEL CAPABILITY UNDERPINNING 25% CASH GENERATION GROWTH IN GROUP ONLINE SALES AND LOWER NET DEBT • Operating cashflow of $240.9m • 94% normalised EBITDA Online sales ($m) $60m $95m $34m $12m1 cash conversion • Normalised net debt/ Online sales growth 25% 33% 6% 24%1 EBITDA decreased to 1.2x • Net debt decreased by (1) Macpac only. Excludes Rays. $36.2m SUPER RETAIL GROUP 10 Group Highlights HEALTHY, HAPPY AND ENGAGED TEAM MEMBERS • Awarded an Aon Best Employer for Australia (2019), as part of Aon Best Employers global certification • certification assessed on four measures: employee engagement, organisational agility, engaging leadership and talent focus • Continued improvement in safety performance • Total Recordable Injury Frequency Rate (TRIFR) decreased by 10% in 2018/19 on pcp • Ongoing investment in leadership capability and team members’ skills and knowledge • strengthened retail experience at the executive level • targeted leadership capability program for senior management levels • continuous learning program focused on technical skills for all team members SUPER RETAIL GROUP 11 Group Highlights HIGHLY EXPERIENCED LEADERSHIP TEAM IN PLACE Managing Director and CEO Anthony Heraghty Chief Financial Managing Director Managing Director Managing Director CEO Officer Supercheap Auto Rebel BCF Macpac David Burns Benjamin Ward Gary Williams Paul Bradshaw1 Alex Brandon Chief Strategy & Chief Human Chief Information Chief Supply Group General Customer Officer Resources Officer Officer Chain Officer Counsel and Company Secretary Katie McNamara Jane Kelly Paul Hayes Darren Wedding Peter Lim SUPER RETAIL GROUP (1) Commencing employment with the Group on 25 November 2019 12 KEY STRENGTHS AND OPPORTUNITIES GROUP HIGHLIGHTS 2018/19 FINANCIAL RESULTS 2019/20 TRADING AND OPERATING UPDATE APPENDICES Performance Trends Business Snapshots Segment Notes 2018/19 and 2017/18 SUPER RETAIL GROUP 13 Group Results 2018/19 Change on PCP $m • Total sales increased 5.4% reflecting solid sales and LFL Total sales 2,710.4 5.4% sales growth across all brands and full 12 month contribution from Macpac Total segment EBITDA 314.7 7.0% • Group segment EBITDA increased by 7.0% to $314.7m Segment D&A 86.6 16.2% • Segment D&A increased by 16.2% to $86.6m reflecting investment in omni-retail capability Total segment EBIT 228.1 3.9% • Group segment EBIT increased by 3.9% to $228.1m • Normalised NPAT increased by 5.0% to $152.5m Normalised NPAT 152.5 5.0% • Profit attributable to owners includes $6.2m after tax Other items not included in (13.2) $3.8m costs of wages underpayment and remediation costs, normalized NPAT $3.9m after tax costs from investments and $3.1m after Profit attributable to owners 139.3 8.6% tax costs of restructuring • Full year dividends totalling 50.0 cents per share, Normalised EPS (cents) 77.3 5.0% representing payout ratio of 65% of underlying net profit Full Year dividends (cents) 50.0 1.0 after tax • Strong operating cashflows supporting a $36.2m Net debt 386.7 422.9 reduction in net debt • Normalised net debt/ EBITDA decreased to 1.2x SUPER RETAIL GROUP 14 Segment Results 2018/19 2017/18 $m $m Segment % Group EBIT Sales EBIT Sales EBIT Supercheap Auto 1,040.6 120.6 1,006.4 116.4 Rebel1 38% 1,016.4 93.8 979.2 91.5 BCF 8% 514.6 20.8 498.3 27.3 Macpac (incl Rays)2,3 5% 138.8 13.0 81.52 2.32 Group and (20.1) 5.0 (17.9) Unallocated Total 2,710.4 228.1 2,570.4 219.6 (1) Includes Infinite Retail SUPER RETAIL GROUP (2) Macpac business was only owned for 3 months in 2017/18 compared to 12 months in 2018/19 15 (3) Revenue and EBIT for Macpac includes Rays business revenue and losses Supercheap Auto • Total sales growth of 3.4% driven by like for like sales 2018/19 Change on growth and contribution from new stores $m PCP • Like for like sales growth of 2.3% driven by higher average Sales 1,040.6 3.4% item value and items per transaction • Like for like sales growth was achieved in all Australian states and New Zealand LFL sales growth 2.3% • Gross margin in line with pcp and operating expenses as a percentage of sales improved by 0.3% Segment EBITDA 156.1 5.3% • Segment EBITDA increased by 5.3% to $156.1 million and EBITDA margin of 15.0% was 0.3% higher than pcp EBITDA margin % 15.0% 0.3% • Auto maintenance and auto accessories were the strongest performing categories Segment EBIT 120.6 3.6% • 25% growth in online sales following the successful replatforming of the website in August 2018 • SCA opened 5 new stores, closed 1 store and completed Segment EBIT margin % 11.6% 0.0% 8 refurbishments and relocations, with 323 stores at period end SUPER RETAIL GROUP 16 Rebel • Total sales growth of 3.8% driven by LFL sales growth 2018/19 Change on and new store openings $m1 PCP • Like for like sales growth of 3.3% was supported by transaction growth and higher average transaction Sales 1,016.4 3.8% value • Queensland, Victoria and South Australia delivered the LFL sales growth 3.3% strongest like for like sales growth •