SPAR GROUP RESULTS

1
WELCOME
SPAR GROUP RESULTS
2
Agenda

• Financial overview

• Retail performance

• Distribution update

• Looking forward

• Video

• Questions

3
SPAR International

• Retail turnover

27.2bn
4
Financial Overview
R million
2007
2008
Change
Turnover
26 742
21 704
23.2
25.5
Operating profit
972
775
523
30.3
PAT
682
HEPS (cents)
29.9
405.7
312.3
Return on equity
52.5
52.3
37.8
Dividend (cents)
255.0
185.0
5
Financial Overview
Turnover (Rm)
Change
2008
2007
Spar
24 270
19 789
22.6
Build it
2 472
1 915
29.1
8.8
Ratio
9.2
TOTAL
26 742
21 704
23.2
Liquor sales (TOPS SPAR)
1 307
919
42.2
Ratio
4.9
4.2
6
Financial Overview
Turnover growth reconciliation

Spar retail growth
15.8
- organic
TOPS / Build it excess growth
1.7
2.7
Improved loyalty / new suppliers
(1.9)
Dropshipment adjustment
23.2
7
Financial Overview
Margins (as turnover)
2008
2007
Gross margin
8.1
8.2
Other income
0.9
1.0
Expenses
(5.4)
(5.6)
Net margin
3.6
3.6
8
Cash flow (Rm)
Cash flow from trading
1 088
Working capital changes
(870)
218
facilities
Capex
(248)
vehicles/equipment
(149)
(29)
IT
(268)
Tax
Dividends
(355)

Loans/shares/other
124
(707)
Net cash outflow
9
Retail Performance
Retail Stores
2008
2007
Change
46
Superspar
218
172
Spar
457
477
20
Kwikspar
150
161
11
825
810
15
Sq meters 000s
780
6.9
834
129
Remodels
144
287
65
Tops
352
Build it
245
227
18
10
SPAR Sales (Rbn) Market Share ()
27.6
26
24.6
20
15
11
Distribution Update
South Rand
58000 m²
229 SPAR
83 TOPS
50 Build it
12
Distribution Update
North Rand
32000 m²
182 SPAR
73 TOPS
44 Build it
13
Distribution Update
Kwazulu Natal
40000 m²
157 SPAR
75 TOPS
67 Build it
14
Distribution Update
Western Cape
34000 m²
129 SPAR
56 TOPS
19 Build it
15
Distribution Update
Eastern Cape
21000 m²
93 SPAR
52 TOPS
36 Build it
16
Distribution Update
Lowveld
17000 m²
35 SPAR
13 TOPS
29 Build it
17
Looking forward

• Trading environment

18
Trading Environment

• Business confidence

• Economic fundamentals

interest rates peaked
pressure on inflation

• Emerging market power

outlook positive for cash retail
19
Key Focus Areas
Retail

• Growth

new stores
SPAR
TOPS / BUILD IT
20
Key Focus Areas
Retail Stores
Change in 2009
2008
Superspar
218
12
Spar
457
16
Kwikspar
150
2
825
30
Sq metres 000s
834
5
144
Remodels
145
287
Tops
40
Build it
243
25
21
Key Focus Areas
Retail

• Growth

- new stores
SPAR
TOPS / BUILD IT
- existing stores
revamps
extending services

• Fresh food

• Marketing

• Technology

22
Distribution

• Executive management

• Warehouse facilities

• Supply chain efficiency

• Transformation