Mr Price Group SIX YEAR REVIEW
MR PRICE GROUP 2011
Abridged statements of financial position, cash flows and income 26 year compound growth %
(R'000)
Five year compound growth %
2012
2011
2010
Non-current assets
743 404
607 681
686 475
Property, plant and equipment
539 463
459 634
530 407
-
-
-
203 941
148 047
156 068
Current assets
3 551 664
3 253 456
2 923 769
Inventories
1 168 191
953 666
934 671
Trade and other receivables
1 182 895
931 278
818 355
Cash
1 200 578
1 368 512
1 170 743
4 295 068
3 861 137
3 610 244
2 779 516
2 394 184
2 070 823
194 474
179 010
200 966
Current liabilities
1 321 078
1 287 943
1 338 455
Trade and other payables
1 234 918
1 241 624
1 310 170
86 160
46 319
28 285
4 295 068
3 861 137
3 610 244
Statement of financial position Assets
Export partnerships Other
Equity and liabilities Equity attributable to shareholders Non-current liabilities
Other
Statement of cash flows Cash flows from operating activities
1 059 002
1 104 698
1 021 444
Cash flows from investing activities
310 244
155 043
100 924
Cash flows from financing activities
913 375
748 026
401 799
Net (decrease)/increase in cash and cash equivalents
164 617
201 629
518 721
1 368 512
1 170 743
660 787
Cash and cash equivalents at beginning of the year Exchange (losses)/gains Cash and cash equivalents at end of the year
3 317
3 860
8 765
1 200 578
1 368 512
1 170 743
Income statement Retail sales
21.1%
14.2%
11 766 765
10 673 364
9 454 130
Profit from operating activities
24.0%
23.2%
1 741 823
1 433 768
991 518
Profit attributable to shareholders
27.5%
20.5%
1 217 101
1 010 254
673 568
Headline earnings attributable to shareholders
27.5%
20.5%
1 222 375
1 026 399
682 135
PAGE 54
SIX YEAR REVIEW
2009
2008
2007
893 460
846 334
712 485
603 299
566 176
464 082
220 254
220 310
201 688
69 907
59 848
46 715
2 377 410
1 945 182
1 781 177
2 000
1 002 456
909 094
741 229
1 000
714 167
570 811
469 003
660 787
465 277
570 945
3 270 870
2 791 516
2 493 662
Total assets (R’million)
5 000 4 000 3 000
2007 2008 2009 2010 2011 2012 Cash generated and cash at year end (R’million)
1 400 1 200
1 479 331
1 316 808
225 673
241 142
231 263
1 281 010
1 071 043
945 591
1 208 450
1 034 118
821 139
72 560
36 925
124 452
3 270 870
2 791 516
2 493 662
1 000 800 600 400 200 2007 2008 2009 2010 2011 2012 Cash generated from operating activities Cash at year end Retail sales and operating profit (R’million)
2 000
12 000 783 153
578 774
387 945
219 246
(255 020)
( 237 381 )
367 135
(429 598)
( 203 691 )
196 772
(105 844)
( 53 127 )
465 277
570 945
624 523
1 262
176
660 787
465 277
570 945
8 591 258
7 203 640
6 056 757
827 188
716 180
612 685
615 723
550 943
479 164
622 724
553 165
480 644
( 451 )
Retail sales
10 000
1 500
8 000
1 000
6 000 4 000
500
2 000
Operating profit
1 764 187
2007 2008 2009 2010 2011 2012 Retail sales
Operating profit
Notes: 1. 2011 was a 53 week period. 2. The 26 year compound growth rates, reflected on pages 54 to 59, are calculated from the date of acquiring joint control in 1986. 3. Definitions are found on page 179. MR PRICE GROUP 2012 - PAGE 55
Stores and productivity measures 26 year compound growth %
Ratios/indicators
Five year compound growth %
2012
2011
2010
1.4
1.6
1.7
11.9
11.9
11.8
Operating statistics Depreciation as a % sales
a
Employment costs as a % sales Occupancy costs as a % sales
b
7.5
8.0
8.3
29.6
30.7
31.6
353
340
338
47
40
36
Miladys
188
198
214
Total Apparel stores
588
578
588
Mr Price Home
140
130
136
Sheet Street
234
229
238
Total Home stores
374
359
374
28
24
27
990
961
989
12 994
12 585
12 536
508 390
508 316
504 707
515 833
501 497
513 347
14.2% 11 766 765
10 673 364
9 454 130
Traditional comparable sales growth %
8.2
10.2
6.5
Retail selling price inflation %
5.0
3.0
5.6
Cash sales %
81.4
83.8
83.9
Credit sales %
18.6
16.2
16.1
12 232
11 391
9 828
905 560
848 102
754 170
22 979
20 787
18 492
c
Total expenses as a % sales Number of stores Mr Price Apparel Mr Price Sport
Franchise Total stores FTE associates
8.8%
3.6%
d
Trading area - weighted average net m² - closing net m²
11.0%
Retail sales (R'000)
21.1%
Sales per store excluding Franchise stores (R'000) Sales per FTE associates (Rand) Sales density excluding sales to Franchises (Rand per weighted average net m2) PAGE 56
6.4%
SIX YEAR REVIEW CONTINUED
2008
2007
1.8
1.8
1.7
11.9
12.3
12.7
8.3
8.0
7.7
2007 2008 2009 31.6 2010 2011 2012 31.5
31.5
Sales contribution (%)
2009
100
1 200
80
1 000 800
60
600
40
400
20
200 2007 2008 2009 2010 2011 2012
Number of active accounts (000)
Sales split and number of active accounts
Total assets (R’million)
Cash sales (%) Credit sales (%) Number of active accounts (000)
generated and cash at year end (R’million)
305
23
8
215
196
184
572
534
497
2007 2008 2009 138 2010 2011 2012 140
136
244 222 Cash generated from operating activities Cash at382 year end 362
196
20 000
13 000
15 000
12 000
10 000
11 000
5 000
10 000 2007 2008 2009 2010 2011 2012
332
Sales density
1 000 12 472
11 884 500
2007 2008 2009 2010 2011 2012
11 036
414 773
347 060
498 884
439 901
377 813
8 591 258
7 203 640
6 056 757
7.8
6.4
8.0
5.0
11.5
6.9
84.0
84.2
84.1
16.0
15.8
15.9
9 006
8 040
7 306
688 854
606 170
548 804
17 445
17 256
17 436
Operating profit
600 000
800
500 000 400 000
600
300 000
400
200 000
200
483 141
Retail sales
1 000
m2
830
Number of stores
971
1 500 903
1 Operating profit
17
2 000 7
Re
FTE associates
Number of stores and trading area
ail sales and operating profit (R’million)
100 000 2007 2008 2009 2010 2011 2012
Number of stores
%
315
31
14 000
Number of FTE associates
326
Density - R/m2
Sales density and number of FTE associates
25 000
Weighted average net m2
Notes: 1. 2011 was a 53 week period. 2. The 26 year compound growth rates, reflected on pages 54 to 59, are calculated from the date of acquiring joint control in 1986. 3. Definitions are found on page 179. a Depreciation on property, plant and equipment only. b Employment costs include salaries, wages and other benefits, incentives, share-based payments, restraint of trade expenses, defined contribution pension fund expense, defined benefit pension fund net expense and post retirement medical aid benefits. c Occupancy costs include land and building lease expenses, including straight line lease adjustments. d FTE: Full-time equivalent. MR PRICE GROUP 2012 - PAGE 57
Returns, profitability and share information
26 year compound growth %
Ratios/indicators
Five year compound growth %
2012
2011
2010
4.2
4.5
4.5
Gross margin (%)
41.8
41.9
39.9
Operating margin (%)
14.8
13.4
10.5
EBITDA margin (%)
16.4
15.2
10.7
Return on net worth
43.8
42.2
32.5
Return on average shareholders equity
47.2
46.0
35.6
Return on capital employed
62.7
63.6
42.6
Return on operating assets
67.2
63.8
52.4
Current ratio
2.7
2.5
2.2
Quick ratio
1.8
1.8
1.5
Inventory turn
6.5
6.6
5.9
Total liabilities to total shareholders equity
0.5
0.6
0.7
Productivity ratios Net asset turn
Profitability and gearing ratios (%)
Solvency and liquidity ratios
Per share performance (cents) Headline earnings
23.4%
21.3%
503.0
418.9
276.9
Diluted headline earnings
23.0%
20.4%
464.5
388.8
263.0
Dividends
25.3%
25.5%
314.0
252.0
173.0
436
451
415
1 140
978
837
Number of shares in issue net of shares held by staff trusts (000)
243 922
244 845
247 298
Number of shares on which earnings based (000)
242 996
245 024
246 320
Shares traded (000)
287 699
284 749
251 912
118.4
116.2
102.3
Earnings yield (%)
5.3
6.6
7.0
Dividend yield (%)
3.5
4.0
4.3
Dividend cover
1.6
1.6
1.6
Operating cash flow Net worth Stock exchange information
Percentage of shares traded (%)
P:E ratio
18.8
15.1
14.4
23 561
15 744
9 837
- high
9 434
6 908
4 318
- low
6 190
4 026
2 435
9 434
6 338
3 980
36.4
29.2
16.7
Market capitalisation (R'm) Share price (cents)
- closing
27.0%
Foreign shareholding at year end (%) PAGE 58
25.9%
SIX YEAR REVIEW CONTINUED
2009 2008 lit and number of active accounts
9.6
9.9 600
12.0
12.2
400 200
34.92011 2012 37.2 7 2008 2009 2010 38.4 39.6 ash sales (%) Credit sales (%) 52.5 Number of active accounts (000) 52.1
40.0 10.1 12.3
13 000
1.8
1.1
12 000 1.0
5.5
5.3 11 000
0.9
0.9
10 000
12
8 000
5.7 0.9
70 60 50 40 30 20 10
Return on net worth, equity and capital employed
2007 191.8 183.6
717
500 000 598 400 000
101.0 155 523
m2
317
600 000 229
300 000 245 946 247 175
200 000251 882 247 332 100 000
252 599
308 975 07 2008 2009 2010 2011 2012271 233 125.0 109.7 f stores Weighted average net m2
250 553 238 286 101.5
10.4
12.0
6.4
5.5
6.4
3.4
1.9
1.9
1.9
9.6
8.3
15.5
5 994
4 498
6 995
2 651
3 340
3 189
1 440
1 719
1 600
2 425
1 820
2 980
20.3
12.1
18.1
2008
2009
2010
2011
2012
Return on net worth (%) Return on average shareholders equity (%) Return on capital employed (%) Headline earnings and dividends per share Headline earnings (cents)
07 2008 2009 2010 2011 2012 251.9 219.0 les density FTE associates 244.6 210.8 mber of stores and trading area 133.0 116.0
3
2 000
2007 2008 2009 2010 2011 2012 Retail sales Operating margin (%)
51.5
1.1
6
4 000
53.0
1.9
9
6 000
41.0
Number of FTE associates
1.9
10 000
36.4
52.9 52.5 nsity and number of FTE associates
14 000
15
Operating margin %
800 39.4
4.5
12 000
500 400
350 300 250
300
200
200
150
100
100
Dividends (cents)
39.0
Retail sales (R’ million)
1 000 4.8
%
4.8
Retail sales and operating margin Number of active accounts (000)
1 200
2007
50
2007 2008 2009 2010 2011 2012 Headline earnings per share Dividends per share
Notes: 1. 2011 was a 53 week period. 2. The 26 year compound growth rates, reflected on pages 54 to 59, are calculated from the date of aquiring joint control in 1986. 3. Definitions are found on page 179. MR PRICE GROUP 2012 - PAGE 59