investor update - Steinhoff International

Transcription

COMPETITIVE
ADVANTAGE
THROUGH SCALE
BENEFITS
WELCOME TO
THE WORLD OF
STEINHOFF
JUNE 2015
INVESTOR UPDATE
1
AGENDA
1
WELCOME & OPERATIONAL UPDATE
European retail
Markus Jooste
Manufacturing sourcing and logistics
Danie van der Merwe
Properties and European retail financial summary
Ben la Grange
African operations: JD
2
CAPITAL STRUCTURE UPDATE
Stehan Grobler
3
CORPORATE UPDATE
Markus Jooste
2
MARKUS JOOSTE
WELCOME
3
MARKUS JOOSTE
OPERATIONAL
UPDATE
4
MARKUS JOOSTE
INTERNATIONAL OPERATIONS
STEINHOFF
5
STEINHOFF EUROPE
1. RETAIL
2. MANUFACTURING, SOURCING
& LOGISTICS (MSL)
3. PROPERTIES
6
R E TA I L – C O N F O R A M A G R O U P
Eight
countries
276
STORES*
STEINHOFF INVESTOR UPDATE JUNE 2015
*Excluding Confo Deco
7
R E TA I L – C O N F O R A M A G R O U P
STRATEGIC DEVELOPMENT
DEVELOPMENT STRATEGIES IN LINE WITH OPERATION MATURITY
• 
Focus on tactical market consolidation opportunities in countries with
already significant market shares
–  France
–  Switzerland
–  Croatia
8
R E TA I L – F R A N C E
MARKET POSITION – Furniture
MARKET SIZE 2014: €9.1 BN
2
2014 MARKET POSITIONING
IKEA: 17,8%
0%
10%
Steinhoff: 15,7%
20%
30%
Other: 51,1%
40%
50%
60%
70%
80%
90%
100%
Alinéa: 3,0%
BUT: 12,4%
Source: IPEA
9
R E TA I L – F R A N C E
MAIN INITIATIVES
FRANCE: STRATEGIC INITIATIVES
INCREASE MARKET SHARE THROUGH MARKET CONSOLIDATION
•  Prioritise existing strengths
–  Small competitors continue to exit
–  Focus on opportunities inherent in strong strategic product categories – bedding
•  Store network
–  Promising hard discount concept – Confo Dépôt
–  Creating barrier to entry
–  Access to less affluent customers
–  Speed up product renewal
–  Low operating cost concept
–  Network optimisation
•  Internet
8%
–  Capitalise on success of multi-channel business
–  Sustainable traffic on web and customer database
92%
88%
10
R E TA I L – S W I T Z E R L A N D
MARKET POSITION
2
IKEA: 20,0%
0%
10%
Steinhoff: 14,0%
20%
30%
40%
Pfister: 11,0%
Other: 49,0%
50%
60%
70%
80%
90%
100%
Migros: 6,0%
Source: GFK
11
R E TA I L – S W I T Z E R L A N D
MAIN INITIATIVES
• 
Consolidate position as #2 furniture retailer
• 
Multi brand strategy with Conforama and Lipo
• 
Strong investment in Internet
Conforama
Lipo
Logistic Warehouse in Niederbipp
Opening 2016
12
R E TA I L – C R O AT I A
MARKET POSITION
2
Lesnina: 30,6%
0%
10%
Steinhoff: 17,7%
20%
30%
40%
50%
IKEA: 10,6%
60%
Jysk: 12,8%
70%
80%
90%
100%
Others: 28,3%
Source: FINA
13
R E TA I L – C R O AT I A
MAIN INITIATIVES
• 
Pursue network optimisation following Kika store integration
• 
Increase value creation
• 
Opened first store in Serbia last week
2%
Stores
Stores
98%
95%
14
R E TA I L – I B E R I C A
MARKET POSITION
3
IKEA: 20,8%
0%
10%
Steinhoff: 5,0%
20%
30%
40%
Other: 65,7%
50%
60%
70%
80%
90%
100%
El Corte Ingles: 8,5%
Source: GFK
15
MAIN INITIATIVES
MAIN INITIATIVES
• 
Accelerate growth and market share gains to become #2 furniture retailer
–  Spain
–  Portugal
16
MAIN INITIATIVES
PORTUGAL DEVELOPMENT
Reinforcing
Conforama’s
Position
17
PORTUGAL
MARKET CONSOLIDATION IS MOVING FORWARD
10,5m
€162bn
citizens
GDP
€ 500m
Furniture
market
*
Conforama
Matosinhos,
opening in
July 2015
COMPETITORS
PORTUGAL MARKET
Nº OF STORES
16 stores
3 stores
26 stores, all closed
18
PORTUGAL
ACQUISITION OF MOVIFLOR
Aligned with Portugal expansion strategy
NORTH Goal of Conforama is to be present as a major player in the
most important areas in Portugal by moving from 5 stores to
10 stores: opening of 1 new store and acquiring 4 Moviflor
stores
• 
• 
• 
• 
Oporto – 2 stores (Vila Nova de
Gaia, opening in July 2015 –
Matosinhos)
Lisbon (1m people) – 2 Conforama
stores
+ 3 Moviflor stores
Algarve – 1 Conforama store
+ 1 Moviflor store
Islands – 1 Conforama store
(Madeira)
2
CENTER 2+3
1+1
2
19
PORTUGAL
GOOD ASSET QUALITY
Rio de Mouro (Lisbon)
• 
• 
Premium location (Leroy Merlin,
Decathlon, Primark)
13 000 m2
Setubal
• 
Good location
• 
8 300 m2
20
PORTUGAL
GOOD ASSET QUALITY
Corroios
Ohlao
• 
Destination store in the South of
Lisbon
• 
Good location to complete our Albufeira store
catchment area
• 
7 200 m2
• 
5 200 m2
21
PORTUGAL
SUMMARY
• 
Four premium properties
• 
Good asset quality: low investment per m2 to open
• 
Store network density in Portugal:
–  Ability to advertise nationally
–  TV campaign
–  National radio campaign
–  Mutualised warehouses
22
R E TA I L – I TA LY
MARKET POSITION
MARKET SIZE 2014: €9,6BN
4
IKEA: 9,7%
0%
10%
Steinhoff: 1,4%
20%
30%
Other: 79,1%
40%
50%
60%
70%
80%
90%
100%
Poltrone Sofa+ Ricci casa : 3,3%
Mondo Convenienza Uno: 6,5%
Source: CSIL - GFK
23
R E TA I L – I TA LY
MAIN INITIATIVES
• 
Current business model and concept in process
of being validated
1 2 3%
3 4 6 7 8 5 9 5%
10 Stores
Stores
97%
95%
14 STEINHOFF INVESTOR UPDATE JUNE 2015
11 15 Logistic Warehouse in Piacenza
12 13 24
STEINHOFF EUROPE
1.  RETAIL
PERFORMANCE TO 1H15
CONFORAMA
25
PERFORMANCE
CONFORAMA GROUP
FINANCIAL DEVELOPMENT
Revenue
3 500
Operating profit & margin %
160
3 164
3 101
3 066
3 000
1 500
100
1 679
1 651
3%
1 655
1 722
5%
1 000
Stores
97%
95%
€m
119
1H12 FY12 1H13 FY13 1H14 FY14 1H15
88
95
86
74
80
60
40
500 Stores
-
126
120
2 500
2 000
140
140
20
5,2%
4,0%
4,5%
5,2%
3,9%
4,5%
5,5%
€m
1H12 FY12 1H13 FY13 1H14 FY14 1H15
26
PERFORMANCE
CONFORAMA GROUP
(LTM)
Revenue (LTM)
3 180
3 168
3 164
3 160
140
3 136
3 140
3 101
3 100
3 080
3 066
3%
119
80
3 070
60
5%
40
3 020 Stores
Stores
97%
95%
€m
112
140
149
100
3 040
3 000
131
126
120
3 120
3 060
160
FY12
1H13
FY13
1H14
FY14
20
4,0%
3,6%
3,9%
4,3%
4,5%
4,7%
FY12
1H13
FY13
1H14
FY14
1H15
1H15
€m
27
R E TA I L – E R M
Three
countries
230
STORES
28
R E TA I L – G E R M A N Y
MARKET POSITION
MARKET SIZE 2014: €31.4 BN*
5
IKEA: 12,7%
XXXLutz: 5,1%
Other: 59,9%
Roller: 4,4%
Segmuller: 3,2%
0%
10%
20%
30%
Höffner: 6,4%
Source: Holzmann Verlag
*Including VAT
40%
50%
60%
70%
80%
90%
100%
Porta: 4,1%
Steinhoff: 4,2%
29
R E TA I L – G E R M A N Y
MAIN INITIATIVES
INCREASE MARKET SHARE THROUGH STORE ROLLOUTS
•  Prioritise store rollout program
–  8 new stores planned in Germany in FY16
–  1st store opened in the Netherlands
•  Capitalise on brand strength
–  Like-for-like sales continue to benefit from
growing store network
–  Investment online to drive additional sales
•  Other
8%
12%
Stores
92%
88%
30
R E TA I L – P O L A N D
MARKET POSITION
3
IKEA: 23,3%
0%
10%
Steinhoff: 3,2%
20%
30%
40%
Other: 67,5%
50%
60%
70%
80%
90%
100%
LPP Tex: 1,5%
Source: Euromonitor
Black Red White: 4,5%
31
STEINHOFF EUROPE
1.  RETAIL
PERFORMANCE TO 1H15
ERM
32
PERFORMANCE
ERM
Revenue
1 400
140
1 238
1 200
122
1 152
1 094
120
1 000
800
600
581
617
3%
633
704
40
Stores
97%
95%
1H12 FY12 1H13 FY13 1H14 FY14 1H15
71
20
28
4,8%
6,5%
7,8%
61
54
48
5%
200 Stores
€m
80
60
400
-
97
100
8,4%
8,5%
9,9%
8,7%
€m
1H12 FY12 1H13 FY13 1H14 FY14 1H15
33
PERFORMANCE
ERM
Revenue (LTM)
(LTM)
1 350
1 309
1 300
1 238
100
1 200
1 130
1 150
1 152
1 168
1 094
3%
80
40
1 000 Stores
Stores
97%
95%
€m
FY12
1H13
FY13
1H14
FY14
91
97
129
103
71
60
5%
1 050
950
122
120
1 250
1 100
140
8,1%
8,4%
8,8%
1H13
FY13
1H14
9,9%
9,9%
FY14
1H15
6,5%
20
1H15
€m
FY12
34
R E TA I L : U N I T E D K I N G D O M
463
STORES
35
R E TA I L – U N I T E D K I N G D O M
MARKET POSITION
MARKET SIZE 2014*: €9.2 BN
3
DFS: 12,1%
IKEA: 9,0%
Other: 64,1%
HRG: 3,4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SCS: 3,9%
SHF: 7,5%
*Source: Verdict,
Upholstery,
living
& dining
STEINHOFF
INVESTOR
UPDATE
JUNE
2015 and bedding markets
36
R E TA I L – U K
MAIN INITIATIVES
• 
Customer focus
– 
Training and technology (Comfort Station,
footfall counters & technology)
– 
• 
• 
Expand current product offering
Store network
– 
Refurbishment currently underway
– 
63% complete
Internet
– 
Drive internet sales
8%
12%
Stores
Stores
92%
88%
37 37
STEINHOFF EUROPE
1.  RETAIL
PERFORMANCE TO 1H15
UK
38
PERFORMANCE
UK
Revenue
600
60
563
545
504
500
48
50
41
400
300
200
100
€m
336
293
283
3%
295
5%
Stores
Stores
97%
95%
1H12 FY12 1H13 FY13 1H14 FY14 1H15
40
36
30
20
10
€m
24
15
7,1%
5,1%
20
17
6,0%
7,5%
6,8%
8,5%
7,1%
1H12 FY12 1H13 FY13 1H14 FY14 1H15
39
PERFORMANCE
UK
(LTM)
Revenue (LTM)
60
700
600
500
545
504
563
557
52
604
48
50
494
40
36
38
41
44
400
30
300
3%
5%
20
200
100
€m
Stores
Stores
97%
95%
FY12
1H13
FY13
1H14
FY14
7,1%
7,7%
7,5%
7,9%
1H13
FY13
1H14
8,5%
8,6%
FY14
1H15
10
1H15
€m
FY12
40
R E TA I L : PA C I F I C R I M
138
STORES
41
R E TA I L – PA C I F I C R I M
MARKET POSITION
AUSTRALASIAN MARKET SIZE 2014: €6.2 BN
3
Harvey Norman 12.6%
0%
10%
20%
Super Amart: 8.0%
30%
40%
50%
Other: 59.7%
60%
70%
80%
90%
100%
SHF: 8.1%
IKEA: 11.6%
Source:
Australian
Bureau
of Statistics
STEINHOFF
INVESTOR
UPDATE
JUNE 2015
42
R E TA I L – PA C I F I C R I M
MAIN INITIATIVES
• 
Store footprint expansion
–  54 stores across all brands
• 
Gaining online market share
• 
Other opportunities
–  Enhancing product mix
–  Australia’s #1 Bedroom retailer
–  Introduction of new brands/concepts
–  Discount Retail growth through POCO
8%
12%
Stores
Stores
92%
88%
43
STEINHOFF EUROPE
1.  RETAIL
PERFORMANCE TO 1H15
PACIFIC RIM
44
PERFORMANCE
PACIFIC RIM
Revenue
350
16
300
290
275
14
249
250
12
10
200
150
119 3%
135
123
138
5%
100
50
€m
15
Stores
97%
95%
1H12 FY12 1H13 FY13 1H14 FY14 1H15
8
8
6
4
Stores
9
5
4
6,5%
3
5,2%
2
2,5%
€m
8
1,8%
3,0%
5,8%
3,6%
1H12 FY12 1H13 FY13 1H14 FY14 1H15
45
PERFORMANCE
PACIFIC RIM
Revenue (LTM)
(LTM)
350
300
16
291
275
290
249
250
305
14
15
15
5,5%
5,2%
4,9%
1H14
FY14
1H15
13
12
237
10
200
9
8
150
3%
6
5%
100
50
€m
6
5
4
Stores
Stores
97%
95%
FY12
1H13
FY13
1H14
FY14
2
1H15
€m
3,6%
1,8%
2,1%
FY12
1H13
FY13
46
STEINHOFF EUROPE
1.  RETAIL
PERFORMANCE SUMMARY
AS REPORTED
47
S T E I N H O F F E U R O P E – R E TA I L
14
countries
>1 100
STORES
48
PERFORMANCE
STEINHOFF EUROPE RETAIL
Revenue
350
6 000
5 037
5 000
5 192
5 012
325
300
266
238
250
4 000
3 000
2 000
1 000
€m
2 672
2 686
3%
2 706
2 900
200
150
168
143
134
5%
100
Stores
Stores
97%
95%
1H12 FY12 1H13 FY13 1H14 FY14 1H15
188
50
€m
5,0%
4,7%
5,3%
5,3%
6,2%
6,3%
6,5%
1H12 FY12 1H13 FY13 1H14 FY14 1H15
49
PERFORMANCE
STEINHOFF EUROPE RETAIL
(LTM)
Revenue (LTM)
400
5 500
5 386
5 400
350
325
291
300
5 300
250
5 192
5 200
345
238
247
266
200
5 100
3%
5 037
5 051
5 012
5 032
150
5%
5 000
100
4 900 Stores
Stores
97%
95%
4 800
€m
FY12
1H13
FY13
1H14
FY14
50
1H15
€m
4,7%
4,9%
5,3%
FY12
1H13
FY13
5,8%
6,3%
6,4%
1H14
FY14
1H15
50
Danie van der Merwe
1. RETAIL
& LOGISTICS (MSL)
3. PROPERTIES
51
STEINHOFF EUROPE – MSL
FORTY-FOUR
countries
16
factories
€4bn
Purchasing
power
52
VERTICAL INTEGRATION
DIVERSE SOURCING
QUALITY MANUFACTURING
2
1
Sourcing from
44 countries world-wide
16 manufacturing
facilities
in the UK, Germany,
Poland and Hungary
€3.3 billion property portfolio
yielding ± 7% per annum
3%
4
5%
SUPPORTED BY HIGH QUALITY PROPERTY
PORTFOLIO
Stores
Stores
97%
3
88 000 TEU of
containers
per annum
HIGHLY SOPHISTICATED LOGISTICS
95%
53
MAIN INITIATIVES
• 
Bedding strategy gaining traction
Acquisition of Select-o-pedic in Australia
– 
• 
Kitchen strategy gaining traction
Acquisition of Impuls
– 
• 
Logistics operations gaining traction
Progress on central warehouse in Switzerland
– 
– 
3%
5%
Good savings achieved in container rates for FY16
Stores
Stores
97%
95%
54
STEINHOFF EUROPE
& LOGISTICS (MSL)
KITCHEN STRATEGY
INTEGRATION OF IMPULS
55
KITCHEN STRATEGY
Location
Proximity to OWL*
Situated in the region where most important
component suppliers to the furniture industry
are located
5%
Stores
Stores
97%
95%
*East Westphalia Lip
56
KITCHEN STRATEGY
Location
Total floor
space
100
Factory
Administration
Stock (Hochregal)
Exhibition (Puris)
000m2
3%
5%
Stores
Stores
97%
95%
21 175 m2
1 113 m2
1 952 m2
650 m2
57
KITCHEN STRATEGY
Location
3%
5%
Stores
Stores
97%
95%
58
KITCHEN STRATEGY
Numbers
1 000
150
900
778
800
864
812
837
813
130
728
717
700
90
600
500
71
400
300
110
79
74
3%
76
74
70
66
65
5%
30
200
10
100
0Stores
‘000s 97% 2008
50
2009
Stores
-10
2010
95%
2011
Units
2012
2013
2014
‘000s
Kitchens
59
KITCHEN STRATEGY
Process chain
Impuls Küchen is
•  an assembly company
•  all processes are
constantly optimised
•  perfectly coordinated
production flow
3%
–  production is
5%
extremely fast and
Stores
Stores
97%
95%
organised
60
KITCHEN STRATEGY
Product
3%
5%
Stores
Stores
97%
95%
61
KITCHEN STRATEGY
Product
3%
5%
Stores
Stores
97%
95%
62
KITCHEN STRATEGY
Range
3%
5%
Stores
Stores
97%
95%
63
STEINHOFF EUROPE
& LOGISTICS (MSL)
LOGISTICS UPDATE
64
LOGISTICS UPDATE
TRANSPORTATION OPTIMISATION
East - West Benson for Beds Conforama Global Warehouse SUKU Kika / Leiner Pepco Poland Global Range North – South JD Group 3%
KAP Group Pepkor Australia/New
Zealand Pepkor Southern Africa Stores
Unitrans Asia Pacific 97%
Total STEINHOFF INVESTOR UPDATE JUNE 2015
Volume (TEU) 2 410 7 780 5 998 15 850 4 139 2 498 1 500 5%
502 9 914 4 026 Stores
95%
15 388 17 589 Oceanfreight tender FY16 resulted in
double digit savings on the total portfolio
–  Ongoing cost reduction program
2015/2016
–  Largest oceanfreight tender ever
–  Active participation – Pepkor
–  129 origin ports (41 countries)
–  42 destination harbours
–  475 port-to-port lanes
–  585 port-to-door lanes
–  462 834 rates to revise
87 594 65
LOGISTICS UPDATE
2,1 MILLION M 2 OF WAREHOUSING
• 
• 
• 
• 
Reduction in warehouse space
–  External warehouse
–  Integration Quattro Mobilli warehouse
into Kika-Leiner
–  Implementation of integrated HUB setup in Austria
Australia – move into new facilities
–  Melbourne,
Brisbane
3%
5%
Malaysia hub
–  Increase usage of Malaysia and
incorporate homewares
Stores
Stores into the hub
97%warehouse in Derendingen
Swiss
95%
–  40 000m2 under construction
66
STEINHOFF EUROPE
& LOGISTICS (MSL)
PERFORMANCE SUMMARY
AS REPORTED
67
PERFORMANCE
MSL
Revenue
Operating profit & Margin %
350
2 366
2 500
2 174
291
300
1 990
2 000
315
250
1 500
1 296
1 139
1 102
1 324
200
3%
104
5%
500
50
€m
Stores
97%
1H12
Stores
FY12
1H13
FY13
1H1495%FY14
90
100
1H15
€m
9,4%
1H12
152
142
150
1 000
-
160
8,0%
7,9%
FY12
1H13
13,4%
FY13
11,0%
1H14
13,3%
FY14
11,5%
1H15
68
PERFORMANCE
MSL
(LTM)
Revenue (LTM)
3 000
400
2 500
2 000
1 990
2 027
2 174
2 331
2 366
2 394
-
€m
325
250
200
3%
160
150
5%
146
13,4%
100
500
315
291
300
1 500
1 000
343
350
Stores
Stores
97%
95%
FY12
1H13
FY13
1H14
FY14
50
1H15
€m
8,0%
7,2%
FY12
1H13
FY13
14,7%
1H14
13,3%
13,6%
FY14
1H15
69
Ben la Grange
1. RETAIL
& LOGISTICS (MSL)
3. PROPERTIES
70
STEINHOFF EUROPE – PROPERTIES
4,1 MILLION M 2 OF PROPERTY OWNED
7%
PROPERTY
PORTFOLIO
VALUE:
10%
€3,3 billion
83%
Retail (m2)*
Warehouses
(m2)
3%
Manufacturing
5%
(m2)
Stores
Stores
97%
95%
Data on this slide as at 31 Dec 2014
*Warehouse space attached to stores are included in retail
71
STEINHOFF EUROPE
3. PROPERTIES
PERFORMANCE SUMMARY
AS REPORTED
72
PERFORMANCE
PROPERTIES
Revenue
Operating profit & annual yield %
250
200
100
140
151
126
78
3%
151
160
177
150
172
180
199
200
189
83
92
5%
114
120
100
80
92
83
78
60
50
€m
40
Stores
Stores
97%
95%
1H12 FY12 1H13 FY13 1H14 FY14 1H15
20
€m
8,1%
7,2%
7,6%
7,5%
7,6%
7,1%
7,3%
1H12 FY12 1H13 FY13 1H14 FY14 1H15
73
PERFORMANCE
PROPERTIES
Operating profit & annual
yield % (LTM)
Revenue (LTM)
250
233
200
150
100
177
151
186
211
199
200
156
150
3%
172
181
189
151
156
7,2%
7,6%
7,5%
7,6%
7,1%
7,3%
FY12
1H13
FY13
1H14
FY14
1H15
100
5%
50
50
€m
250
Stores
Stores
97%
95%
FY12
1H13
FY13
1H14
FY14
1H15
€m
74
STEINHOFF EUROPE
STEINHOFF EUROPE
PERFORMANCE SUMMARY
AS REPORTED
75
PERFORMANCE
STEINHOFF EUROPE
Revenue
9 000
900
8 000
7 757
7 363
7 229
800
7 000
700
6 000
600
5 000
4 000
3 000
400
3%
5%
€m
595
454
402
340
316
300
2 000
1 000
729
4 350 500
4 094
3 909
3 875
829
200
Stores
Stores
97%
95%
1H12
FY12
1H13
FY13
1H14
100
FY14
1H15
8,8%
8,2%
8,1%
1H12
FY12
1H13
9,9%
9,8%
10,7% 10,4%
FY13
1H14
FY14
€m
1H15
76
PERFORMANCE
STEINHOFF EUROPE
(LTM)
Revenue (LTM)
8 200
8 013
8 000
7 400
7 200
700
7 549
7 600
600
€m
7 2293% 7 261
815
9,9%
10,8%
10,7%
11,0%
FY13
1H14
FY14
1H15
729
595
571
400
5%
300
200
Stores
97%
FY12
100
Stores
1H13
881
829
500
7 363
7 000
6 800
900
800
7 757
7 800
1 000
FY13
1H14
95%
FY14
1H15
8,2%
7,9%
FY12
1H13
-
€m
77
STEINHOFF
AFRICAN OPERATIONS
78
R E TA I L – S O U T H A F R I C A
1 155
STORES
79
JD GROUP
DIVISIONS
HOUSEHOLD GOODS,
APPLIANCES &
ELECTRONICS
STEINBUILD
BUILDING MATERIALS
& DIY
Furniture & household appliances Building materials and do-‐it-‐
yourself (DIY) products consumer electronics, technology goods and insurance MARKET SIZE
MARKET SHARE
New and pre-‐owned motor vehicles, parts, insurance, accessories, servicing, car rental €3.4 BN
€4.2 BN
€40.6 BN
20,5%
4,3%
6,0%*
1
5
3
€0.7 BN
€0.2 BN
€1.2 BN
RANKING
REVENUE FY14
UNITRANS
AUTOMOTIVE
Exchange rate of R13.72: EUR1 / Source: StatsSA / * New vehicle market only 80
JD GROUP
MARKET GROWTH
30,0%
25,0%
20,0%
15,0%
10,0%
5,0%
0,0%
-5,0%
-10,0%
-15,0%
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
General Dealers
Food
Pharma
Textiles
Household Furn
Hardware
Other
Motor Vehicle
Source: Econometrix 2019
81
JD GROUP
GROWTH
•  Currently changing credit model resulting in a lower credit
sales mix. Focus on lower risk credit consumers
•  Lay-bys – additional tender type for low-end customers
HOUSEHOLD
GOODS,
APPLIANCES &
ELECTRONICS
•  Sleepmasters – expanding into higher end of market
•  Insurance – in-line with retail organic growth and potential
group opportunities
•  Continued cost reduction strategies
POCO
•  1 store currently open
•  To evaluate potential for more
82
JD GROUP
GROWTH
•  Capitalise on strong organic market growth
Steinbuild: DIY
•  Store expansion opportunities
•  Good return on investment
•  Enhancing scale benefits and efficiencies
•  Maximise performance of existing locations to counter
subdued market in new vehicles and strategic brands
Automotive
•  Explore additional opportunities to increase representation of
existing brands
•  Development of website to enhance customer interaction
and marketing capabilities
83
A F R I C A N O P E R AT I O N S
PERFORMANCE SUMMARY
AS REPORTED
84
PERFORMANCE
AFRICAN OPERATIONS
Revenue
1 600
35 000
30 684
29 262
30 000
1 400
1 200
25 000
10 000
16 414
17 042
15 394
3%
7 538
400
Stores
97%
95%
FY12
800
1H13
FY13
1H14
FY14
919
707
600
5%
5 000 Stores
Rm
923
1 000
20 000
15 000
1 427
5,6%
200
1H15
Rm
FY12
384
342
9,4%
1H13
4,9%
FY13
2,2%
3,0%
2,3%
1H14
FY14
1H15
85
PERFORMANCE
AFRICAN OPERATIONS
Revenue (LTM)
(LTM)
35 000
29 262
30 000
30 684
32 332
28 242
1 200
1 000
15 000
800
3%
5%
400
Stores
97%
95%
FY12
1H13
FY13
1H14
FY14
919
961
3,0%
3,0%
3,0%
1H14
FY14
1H15
846
707
600
7 538
5 000 Stores
Rm
1 427
1 400
20 000
10 000
1 600
1 600
23 911
25 000
1 800
9,4%
6,7%
200
1H15
Rm
FY12
1H13
4,9%
FY13
86
S T E I N H O F F I N T E R N AT I O N A L G R O U P
GROUP
PERFORMANCE SUMMARY
AS REPORTED
87
PERFORMANCE
INTERNATIONAL GROUP
Revenue
14 000
140 000
117 364
120 000
40 000
57 796
5%
4 000
Stores
97%
95%
FY12
1H13
FY13
1H14
5 862
6 000
37 645
1H12
6 808
64 615
20 000 Stores
Rm
8 011
8 000
57 292
3%
9 782
10 000
80 143
80 000
60 000
12 000
97 938
100 000
12 622
2 000
FY14
1H15
Rm
5 017
3 699
9,8% 10,0% 8,8% 10,0% 10,1% 10,8% 10,5%
1H12
FY12
1H13
FY13
1H14
FY14
1H15
88
PERFORMANCE
INTERNATIONAL GROUP
Revenue (LTM)
(LTM)
140 000
124 183
117 364
120 000
99 790 97 938 98 442
100 000
80 000
16 000
14 000
12 000
80 143
3%
10 627
8 011
4 000
20 000Stores
Stores
97%
95%
Rm
9 782
13 568
6 000
5%
40 000
-
9 329
10 000
8 000
60 000
12 622
FY12
1H13
FY13
1H14
FY14
1H15
2 000
10,0%
9,3%
10,0%
10,8%
10,8%
10,9%
Rm
FY12
1H13
FY13
1H14
FY14
1H15
89
Stehan Grobler
CAPITAL
Update
STRUCTURE
90
C A P I TA L S T R U C T U R E
DEVELOPMENTS SINCE 1H15
• 
Acquisition of Pepkor fully implemented
–  Sufficient debt facilities procured with 8 banks
–  R6bn redeemable preference share issue (4 years)
–  R6bn term facility (3, 4 and 5 years)
–  R2bn revolving credit facility for working capital
–  Acquisition of remaining interest from Pepkor management for the issue of 87m
shares
–  Pepkor now wholly-owned
• 
JD scheme of arrangement approved
–  JD 100% owned and will be de-listed
91
C A P I TA L S T R U C T U R E
DEVELOPMENTS SINCE 1H15
• 
• 
Moodys upgrade Steinhoff to investment grade with a stable outlook
• 
International rating Baa3
• 
National rating A3.za
Convertible bond conversion
–  2016 Convertible bond (145m shares) fully converted and redeemed (€390m)
–  2017 Convertible bond (76m shares) converted as at 26 June (€239m)
• 
Euro 650m Schuldschein loan issue (German law)
–  5 years (Floating: Euribor plus 1.25% / Fixed: 1.877%)
–  7 years (Floating: Euribor plus 1.50% / Fixed: 2.461%)
–  10 years (Fixed: 3.079%)
• 
ZAR1.5bn fixed and floating notes 3 and 5 years issued 29 June 2015
92
Markus Jooste
CORPORATE
Investment in PSG
UPDATE
93
C O R P O R AT E U P D AT E D
INCREASED INVESTMENT IN PSG
INVESTMENT INCREASE TO 25,04%*
•  Initial associate investment was diluted when PSG concluded a share
placement in June 2014. •  Obtained a unique opportunity not only to re-establish the associate investment
status, but also to increase investment to above 25%.
•  The associate investment is now again in line with our strategic intent of
significant influence and this level of investment will lead to additional value
creation.
•  Total cost of 25% stake was R5,3bn – current value at R11,1bn.
* % calculated by including PSG treasury shares in issue
94
MARKUS JOOSTE
FRANKFURT
Update
LISTING
95
FRANKFURT LISTING
TRANSACTION STRUCTURE
ANTICIPATED ACQUISITION BY HOLDCO OF STEINHOFF BY WAY OF A
SCHEME OF ARRANGEMENT
Holdco NV
Dutch company
No capital will be raised,
only a listing by introduction
Steinhoff
shareholders
100%
kika-Leiner
Steinhoff
shareholders
Scheme of
arrangement
approved by 75%
of shareholders
Steinhoff
Holdco NV
*Listed on JSE
*Listed on the Prime
Standard of the FSE;
and inward listing on
the JSE, SA tax resident
•  Working towards receiving a formal offer from Holdco NV and
the convening of a shareholders meeting to take place
before Steinhoff 2015 results release
•  Holdco will be listed on the prime standard of the Frankfurt
Stock Exchange with an inward listing on the JSE
•  Time table subject to regulatory approvals and prevailing
market INVESTOR
conditions
STEINHOFF
UPDATE JUNE 2015
100%
kika-Leiner
100%
Steinhoff
96
FRANKFURT LISTING
PROPOSED TIMELINE
ANTICIPATED FRANKURT LISTING in Q4 2015
Proposed timing subject to regulatory approvals, Steinhoff shareholder approval
and prevailing market conditions
Posting of scheme of
arrangement circular
and related documents
Scheme of
arrangement meeting
Q3 2015
8 September
Steinhoff 2015 results
release
Listing of Holdco NV on
the FSE with an inward
listing on the JSE
Q4 2015
Scheme of arrangement
finalisation announcement
and publication of EU
prospectus
97
FRANKFURT LISTING
PROPOSED CORPORATE GOVERNANCE
TWO TIER BOARD STRUCTURE ESSTENTIALLY SIMILAR TO STEINHOFF BOARD
SHAREHOLDERS
SUPERVISORY BOARD
COMPISING MAINLY CURRENT NON-EXECUTIVES OF STEINHOFF
Audit and risk
committee
Nominations committee
Human resources and
remuneration
committee
MANAGEMENT BOARD
CEO, CFO, COO
• 
Management board decisions to be submitted for approval by the Supervisory Board tailored
appropriately to provide management with flexibility to act speedily – based on current Steinhoff
reserved matters and Dutch law requirements
• 
CEO will be supported by an Exco of key executives
98
FRANKFURT LISTING
PROPOSED CAPITAL STRUCTURE
3 CLASSES OF SHARES: ORDINARY, PREFERENCE AND PRIORITY
ORDINARY SHARES
• 
3.6 billion issued shares of €0.50 nominal value each (mirror of
Steinhoff issued ordinary shares)
• 
17.5 billion authorised shares of €0.50 nominal value each
• 
All existing Steinhoff voting pool arrangements to continue post
• 
RATIONALE
•  Common share capital structure for Dutch
companies
•  Ability to issue financing preference shares
listing
with almost no voting rights (1/50th voting
Only ordinary shares to be issued as part of the anticipated scheme
right compared to ordinary – as non-voting
arrangement
PREFERENCE SHARES
• 
20 billion authorised shares of €0.01 nominal value each
• 
Similar dividend rights as ordinary shares (any premium over ordinary
shares to be set at the time of issuance)
• 
Equity-like permanent capital
• 
Limited voting rights
PRIORITY SHARES
• 
3 authorised shares of €0.50 nominal value each
• 
Very limited governance rights – 3 matters require priority
shares not allowed under Dutch law) with a
high headroom will provide Holdco flexibility
to obtain additional funding speedily without
materially diluting the voting rights of
ordinary shareholders
•  Voting pool to continue South African control
of the group (SARB condition to approval of
the transaction)
shareholder approval: binding nomination for appointment of
directors, proposal to dismiss directors, amendment to articles
99
FRANKFURT LISTING
PROPOSED CAPITAL STRUCTURE
AUTHORITY IN PLACE PRIOR TO LISTING AND RATIONALE
AUTHORITIES IN PLACE PRIOR TO LISTING
• 
• 
• 
• 
RATIONALE
The Management Board will have the customary
European authorities to issue shares, grant rights to
subscribe for shares and exclude or limit statutory
pre-emption rights thereto.
•  Dutch law allows authorisation to be
This authorisation will be for 5 years following the
listing.
•  The company will consider to issue financing
Management Board will be authorised to
repurchase shares (as treasury shares), limited to
20 per cent. This will be granted for 18 months and
renewed annually
granted for 5 years (except for share
repurchases, which will be granted for 18
months and renewed annually)
preference shares wherever possible rather
than ordinary shares to fund growth
•  Examples of listed ordinary and preference
shares in the German market: Volkswagen,
BMW, Henkel, Metro
Prior to listing, the sole shareholder of Holdco NV
will also grant rights to subscribe for shares to all
holders of existing convertible bonds and
employees in respect of existing share rights.
100
TY
THANK YOU
101

investor update - Steinhoff International

Transcription

Similar documents

Conforama - Steinhoff International

Unaudited financial results (12MFY16)

Starter Package Program 2010