Results presentation for the year ended 31 March 2008

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					                                             Analyst Presentation 2008




Results presentation for the year ended 31 March 2008
Agenda
•   Overview of economy and retail environment   Doug Murray
•   Review of the year                           Doug Murray
•   Financial overview 2008                      Ronnie Stein
•   Financial review                             Ronnie Stein
•   Divisional review                            Doug Murray
•   Financial Services                           Peter Meiring
•   Prospects & outlook                          Doug Murray
•   Questions                                    All




                                                  Foschini Group Analyst Presentation 2008
Overview of the economy and retail environment




                                     Foschini Group Analyst Presentation 2008
Overview of the economy and retail environment
• Consumer under pressure
• Impact of interest rate hikes
    - 9 increases since June 2006 totaling 4,5%
• Implementation of NCA and effect on credit extension
• Rising inflation especially fuel and food
• Weaker currency
• Power outages
• Consumer confidence declining




                                                         Foschini Group Analyst Presentation 2008
Power outages
• All our head office and distribution centres are covered by generators
• Our high-street stores are able to trade as they get sufficient light
• Stores in shopping centres close due to insufficient lighting
    - Dealing with landlords to overcome this
    - Requirements from retailers are lighting plus airflow
      (not necessarily air-conditioning)




                                                                    Foschini Group Analyst Presentation 2008
Review of the year




                     Foschini Group Analyst Presentation 2008
Review of the year
• Foschini group customers heavily affected by the changed retail environment
• Softening evident from third week of June 2007 after NCA
• Sharp downturn in Q4
• Cost cutting from Q4
    - Little effect on this year
    - Full benefit in 2009
• Retail debtors’ book
    - Conservative approach to opening of new pre-approved
      accounts prior to NCA
    - Negatively affected our retail turnover
    - Correct strategy?
    - Healthy retail debtors’ book, in contrast to other credit providers




                                                                   Foschini Group Analyst Presentation 2008
Financial overview 2008




                          Foschini Group Analyst Presentation 2008
Financial overview 2008: 1st half vs 2nd half
• Tale of 2 halves
• 1st half challenging but acceptable performance
• 2nd half extremely difficult with poorer performance



                                           1st half 2008                       2nd half 2008

Sales growth                                               +8,8%                                    +3,7%


HEPS growth                                                12,2%                                    (4,0%)




                                                                   Foschini Group Analyst Presentation 2008
Financial overview 2008: Full year
• Turnover up 6,1% to R7,7 billion
• Profit before tax of R1,79 billion: up 0,2%
• Operating margin down to 24,8% from 26,1%
• Headline earnings per share up 2,4% to 547,0 cents
• Diluted headline earnings per share up 4,5% to 538,0 cents
• Final dividend maintained at 170,0 cents per share
• Total dividend for the year of 288,0 cents per share: up 6,7%
• ROE declines from 32,5% to 29,6%
• Good performance from retail debtors’ book




                                                                  Foschini Group Analyst Presentation 2008
Financial Review




                   Foschini Group Analyst Presentation 2008
Financial review: Last 6 years
• Boom period experienced over the past 6 years illustrated by:

                Years ended                   2002      2003      2004      2005          2006         2007        2008
                No. of weeks                   52        52        52        52            53           52          52

Retail turnover (Rm)                          3 289,9   3 880,6   4 410,0   5 279,3        6 432,1     7 230,0     7 668,7

Retail turnover growth %                         10,4      18,0      13,6      19,7           21,8        12,4         6,1

Compound retail turnover growth %                                                                         15,9        14,5

Operating profit before finance charges(Rm)     348,5     582,0     814,6   1 204,8        1 567,3     1 887,0     1 905,5

Headline earnings per share (cents)              87,9     162,2     237,1     359,6         463,0        534,2       547,0

HEPS % increase                                  75,4      84,5      46,2      51,7           28,8        15,4         2,4

Compound HEPS growth %                                                                                    48,4        40,7

Dividends per share                              31,0      56,0      94,0     164,0         220,0        270,0       288,0


• Boom period has ended



                                                                                   Foschini Group Analyst Presentation 2008
Financial review: 2008

            Income Statement for the year ended 31 March   2008 (Rm)                    2007 (Rm)           % change
Retail turnover                                                        7 668,7                  7 230,0           6,1
Cost of turnover                                                       4 479,2                  4 195,1
Gross profit                                                           3 189,5                  3 034,9
Interest received                                                      1 056,4                      877,4
Dividends received                                                       17,2                        22,8
Net trading expenses                                               (2 357,6)                   (2 048,1)
Operating profit before finance charges                                1 905,5                  1 887,0           1,0
Interest paid                                                           120,1                       104,7
Income from associate                                                      0,9                          -
Profit before tax                                                      1 786,3                  1 782,3
Income tax expense                                                      580,2                       590,3
Profit for the year                                                    1 206,1                  1 192,0           1,2
Attributable to:
Equity holders of Foschini Limited                                     1 128,4                  1 119,2
Minority interest                                                        77,7                        72,8


HEPS (cents)                                                            547,0                       534,2         2,4
Diluted HEPS (cents)                                                    538,0                       514,8         4,5

                                                                                 Foschini Group Analyst Presentation 2008
Retail turnover by division

                                2008 (Rm)                % Growth               % Same store growth

Foschini                                    3 070,5                       5,5                     1,2

Markham                                     1 190,9                       6,6                     3,4

Exact                                        707,2                        3,6                     1,7

Sports division                             1 151,4                       8,4                     3,7

Jewellery division                          1 090,7                       6,7                     3,3

@home                                        458,0                       11,1                   (0,3)

Group                                       7 668,7                       6,1                     2,2


• Doug Murray will deal in more detail with the separate divisions
• Pre-NCA did not aggressively issue new pre-approved accounts resulting
    - growth in turnover being affected
• Group inflation for the year of approx 4%
• Inflation for forthcoming winter season 6%
• Inflation for forthcoming summer season 10%
                                                              Foschini Group Analyst Presentation 2008
Retail turnover by merchandise category

                                   2008              2007                                 % Same store
                                   (Rm)              (Rm)               % Growth             growth

Clothing                                   4 989,2          4 727,4                 5,5             2,2

Jewellery                                  1 010,0           944,1                  7,0             3,5

Cellphones                                  721,6            706,8                  2,1            (0,7)

Cosmetics                                   488,3            435,8                 12,1             6,6

Homeware & furniture                        459,7            416,0                 10,5            (0,3)

Total                                      7 668,7          7 230,0                 6,1             2,2



• Surprised by the level of jewellery turnover
• Cellphones underperformed due to lack of new generation phones




                                                                Foschini Group Analyst Presentation 2008
Gross profit

                                                2008                              2007

Gross profit (Rm)                                      3 189,5                                   3 034,9




Gross margin (%)                                         41,6                                       42,0




• Input margin constant
• Budgeted stock levels conservatively for Christmas
• Christmas trading softer than expected
• Markdowns marginally higher at 13,9% (2007:12,5%)




                                                                 Foschini Group Analyst Presentation 2008
Gross profit: Historic view

       45

       40

       35

       30

       25

       20

       15

       10

       5

       0                                                                    Gross Margin %

            2002   2003   2004   2005   2006   2007          2008




                                                      Foschini Group Analyst Presentation 2008
Interest received

                                                 2008                  2007
                                                 (Rm)                  (Rm)                % growth

Trade receivables – retail                               385,5                  299,3                 28,8

Loan receivables – RCS Group                             314,7                  336,5                 (6,5)

Private label card receivables – RCS Group               347,9                  237,0                 46,8

Sundry - retail                                             7,2                   3,6

Sundry – RCS Group                                          1,1                   1,0


Total                                                   1 056,4                 877,4                 20,4




• Increase in interest received driven by higher yields in all debtors’ books,
  combined with book growth with the exception of the loans receivable book in RCS
• Peter Meiring will deal with this in more detail in his section


                                                                  Foschini Group Analyst Presentation 2008
Trading expenses
                                                                 % to
                                                   2008        turnover          2007         % to turnover      %
                                                   (Rm)          2008            (Rm)             2007         growth
Depreciation and amortisation                       (204,7)           2,7           (174,1)             2,4      17,6
Employee costs                                     (1 120,0)         14,6           (964,5)            13,3      16,1
Store occupancy costs                               (583,5)           7,6           (520,4)             7,2      12,1
Other operating costs                               (489,8)           6,4           (466,5)             6,5       5,0

                                                   (2 398,0)         31,3         (2 125,5)            29,4      12,8

Net bad debts and provision movement - retail       (217,2)           2,8           (187,8)             2,6      15,7
Net bad debts and provision movement – RCS Group    (253,7)           3,3           (132,4)             1,8      91,6
Other revenue                                         511,3         (6,7)            397,6             (5,5)     33,2
Total net trading expenses                         (2 357,6)         30,7         (2 048,1)            28,3      15,1


• Expenses before bad debts well controlled at 12,8%
• Employee costs breakdown will be dealt with on the next slide
• Store occupancy costs: lease escalations average 8% and the balance is
  made up of new stores
• Bad debts and other income will be dealt with by Peter Meiring

                                                                            Foschini Group Analyst Presentation 2008
Employee costs

                                                     2008                   2007                % growth

Employee costs: normal (Rm)                                 1 053,9                  920,9                 14,4

Employee costs: bonuses (Rm)                                      -                    4,4                    -

Employee costs: restraints (Rm)                                35,4                   20,0                 77,0

Employee costs: share-based payments (Rm)                      30,7                   19,2                 59,9

Total employee costs                                        1 120,0                  964,5                 16,1



% to retail turnover                                           14,6                   13,3


• Staff increases this year were 6,5%, balance being in respect of new store staff
• No bonuses paid this year as performance targets not reached
• Restraints
     - now have in excess of 60 top staff covered by 4 year restraints
     - should be minimal restraints paid in the next 4 years

                                                                      Foschini Group Analyst Presentation 2008
Interest paid

                                2008 (Rm)               2007 (Rm)                         % growth


Interest paid                               120,1                         104,7                        14,7




• Increase in interest rates
• Treasury share repurchases of R760,4 million during the year
• R97,7 million relates to funding of RCS Group




                                                                    Foschini Group Analyst Presentation 2008
Segmental analysis

                                                       2008 (Rm)             2007 (Rm)          % change

Retail                                                        1 515,8               1 459,6                3,9

RCS Group                                                          269,6              322,7            (16,5)

Total profit before tax & income from associate               1 785,4               1 782,3                0,2




• RCS Group contribution to PBT (before minorities) = 15,1% (vs 18,1% in 2007)
• Our expectation is that the RCS Group contribution will not exceed 20% in the future




                                                                      Foschini Group Analyst Presentation 2008
Balance sheet
• Our group’s balance sheet remains strong
• Advantageous when in tough trading conditions
• The next few slides deal with key elements of our balance sheet




                                                               Foschini Group Analyst Presentation 2008
Stock and creditors

                                         2008                   2007
                                          Rm                     Rm                     % growth

Stock                                            1 227,5                1 194,8                      2,7


• Stock up only 2,7%
• Levels well controlled and going into new year with clean stock position


                                         2008                   2007
                                          Rm                     Rm                     % growth

Trade and other payables                          741,8                 1 171,7                    (36,7)


• Looks as if we have paid down creditors substantially. Reason is that month-end
  creditors this year of R289,7 million were paid prior to year-end whilst last year
  paid after year-end. Timing issue
• Creditors terms remain 30 days from statement


                                                                 Foschini Group Analyst Presentation 2008
Trade receivables

                                             2008               2007
                                              Rm                 Rm                        % growth

Loan receivables                                     716,2                   866,5                    (17,3)

Private label card receivables                      1 068,3                  826,7                      29,2

RCS Group                                           1 784,5                1 693,2                       5,4



Trade receivables - retail                          2 414,9                2 235,2                       8,0



Total receivables                                   4 199,4                3 928,4                       6,9


• Now have over R4 billion in receivables on balance sheet of which R1,8 billion
  relates to RCS Group
• All receivables internally funded
• No intention to divorce our retail receivables from our business
• RCS Group not core and no need for us to control – could in the future reduce
  our holding below 50% and therefore no need to consolidate
• Peter Meiring will deal in more detail with our receivables
                                                                     Foschini Group Analyst Presentation 2008
Borrowings

                                                 2008                2007                   % growth

    Interest-bearing debt                               1 762,3               1 020,5                  72,7

    Less: Preference share investment                   (200,0)               (200,0)                      -

    Less: Cash                                           (63,4)                (69,1)                  (8,2)

    Borrowings                                          1 498,9                751,4                   99,5


•     Gearing of 36,2% (2007: 18,8%)
•     R1,2 billion relates to RCS Group
•     R298,7 million relates to retail borrowings, equivalent to month-end creditors payment
•     Our current direct funding of RCS Group is at our agreed limit of R750 million.
      All further RCS Group funding will be from the open market with no recourse to Foschini




                                                                   Foschini Group Analyst Presentation 2008
Stock turn

                                               2008                               2007

Jewellery                                                 2,21                                      2,18

@home                                                     2,31                                      2,43

Other                                                     3,21                                      3,20



• Stock turns need to be improved which is being addressed through our supply chain
  initiative which will be referred to later




                                                                 Foschini Group Analyst Presentation 2008
Cash generation and utilisation
                                                             Rm                       Total Rm
    Net borrowings at beginning of year                                                             (751)
    Cash EBITDA                                                      2 027
    Inventory reduction                                                    3
    Other investing activities                                            10
    Sale of 10% of RCS Group                                             211
    Shares sold by share trust                                           110
    Cash generated                                                                                  2 361
    Taxation paid                                                    (735)
    Dividends paid                                                   (677)
    Retail debtors                                                   (142)
    RCS Group debtors                                                    (91)
    Capital expenditure                                              (274)
    Share buy-backs                                                  (760)
    Creditors                                                        (430)
    Cash utilised                                                                                 (3 109)
    Net borrowings at the end of the year                                                         (1 499)


•     Borrowings increased by R748 million
•     Receipts R211 million for sale of 10% of RCS Group
•     Share buy-backs R760 million
•     Share buy-backs and pay down of creditors amount to R1,2 billion
                                                                  Foschini Group Analyst Presentation 2008
Share repurchases

                                                                      Average price
                                                # of shares              (cents)                 Rm

Purchased during the year                                12 479 617           6 093,36                  760,4



Purchased to date                                        35 933 776           3 416,80                1 227,7




• Treasury shares held by subsidiary – 24 049 824 shares representing 10% of total
  issued share capital
• Shares held by share incentive trust – 11 883 952 shares representing 4,9% of total
  issued share capital




                                                                      Foschini Group Analyst Presentation 2008
Capex

                                       2008           2007                     % growth

Stores                                        159,7              169,7                      (5,9)

Land & buildings                                  -               26,1                          -

RCS Group                                      27,1               13,2                    (105,3)

IT                                             53,3               63,0                     (15,4)

Other                                          34,3               32,4                       5,9

Total                                         274,4              304,4                      (9,9)


• RCS Group moved to new premises
• Budgeted capex for 2009 is R315 million




                                                        Foschini Group Analyst Presentation 2008
Divisional Review




                    Foschini Group Analyst Presentation 2008
Divisional review: Overall

                                                                                     Number of
                     2008 Turnover (Rm)     % Growth          % Same store growth     stores          Space growth

Foschini                          3 070,5               5,5                   1,2              400                6,3

Markham                           1 190,9               6,6                   3,4              201                5,3

Exact                               707,2               3,6                   1,7              182                2,8

Sports division                   1 151,4               8,4                   3,7              221               10,2

Jewellery division                1 090,7               6,7                   3,3              328                2,2

@home                               458,0              11,1                  (0,3)               61               8,1

Group                             7 668,7               6,1                   2,2            1 393                6,0



Cash sales                        2 791,5              16,1

Credit sales                      4 877,2               1,1

Total                             7 668,7               6,1


• 6% growth in floor space this year

                                                                              Foschini Group Analyst Presentation 2008
Divisional review: Merchandise category

                                2008                2007                                 % Same store
                                (Rm)                (Rm)               % Growth             growth

Clothing                               4 989,2             4 727,4                 5,5             2,2

Jewellery                              1 010,0              944,1                  7,0             3,5

Cellphones                              721,6               706,8                  2,1            (0,7)

Cosmetics                               488,3               435,8                 12,1             6,6

Homeware & furniture                    459,7               416,0                 10,5            (0,3)

Total                                  7 668,7             7 230,0                 6,1             2,2


• Surprised by the level of jewellery turnover
• Cellphones underperformed due to lack of new generation phones




                                                               Foschini Group Analyst Presentation 2008
Divisional review: Overall
• Sales below expectation since 3rd week of June 2007
• Credit customer under pressure
• Cash sales grew 16,1% - much faster rate than credit sales
• Cellphones – now showing modest growth after significant growth in past few years
• Notwithstanding slowdown in economy all divisions remain in good shape
• All divisions have experienced MD’s and management teams




                                                               Foschini Group Analyst Presentation 2008
Foschini division




                    Foschini Group Analyst Presentation 2008
Foschini division

                          2008 Turnover (Rm)          % Growth          Number of stores      Space growth

    Foschini                              2 383,1                 3,6                 211                    6,2

    Fashionexpress                         321,5                 14,9                 100                    2,9

    Donna-claire                           330,7                  9,1                  70                  13,4

    Luella                                     35,2              27,6                  19                    4,7

    Total                                 3 070,5                 5,5                 400                    6,3

• New MD – Abigail Bisogno & restructured management team
• Total same store growth 1,2%
• Major focus on Foschini stores product
• Cosmetics business performing well, growing 12% to almost R500 million sales per annum
• Donna claire performing well and to be more aggressively expanded
• Fashionexpress, our group’s value chain performing well – developed it’s own supply base
  and to be more aggressively expanded
• Luella – more focus to be given with improved merchandise offering before further roll-out
                                                                        Foschini Group Analyst Presentation 2008
Markham division




                   Foschini Group Analyst Presentation 2008
Markham division

                                                                                   Number of
                    2008 Turnover (Rm)     % Growth         % Same store growth     stores          Space growth

Markham                          1 190,9              6,6                   3,4              201                5,3


• Disappointing 1st half performance
• Traded better in 2nd half
• Re-positioning exercise towards a younger and more fashionable customer
  starting to bear fruit
• The new “Markham Relay” casual format well received in market place
• 240 stores planned by 2010




                                                                            Foschini Group Analyst Presentation 2008
Exact! division




                  Foschini Group Analyst Presentation 2008
Exact! division

                                                                                      Number of
                       2008 Turnover (Rm)     % Growth         % Same store growth     stores          Space growth

    Exact!                            707,2              3,6                   1,7              182                2,8


•     Lower LSM customer base
•     Traded marginally worse than our expectations
•     Ladies clothing & footwear underperformed
•     Encouraging childrenswear performance
•     Store expansion – 200 stores planned by 2010




                                                                               Foschini Group Analyst Presentation 2008
Sports division




                  Foschini Group Analyst Presentation 2008
Sports division

                                            2008 Turnover (Rm)                    % Growth                 Number of stores      Space growth

Sportscene                                                       414,9                               7,4                  90                    9,2

Totalsports                                                      645,4                               7,7                 112                    8,6

DueSouth                                                           91,1                             18,6                  19                  20,8

Total                                                          1 151,4                               8,4                 221                  10,2

• Total same store growth of 3,7%
• Sportscene
        -   Offers a blend of sport and fashion brands to youth market
        -   Our own Redbat brand continues to expand
        -   Continued to introduce international youth brands
        -   Store expansion – 106 stores by 2010
• Totalsports
        -   Positioned as a premier sportswear destination
        -   Key sports strategy focuses on football, running, fitness and rugby
        -   We are the SA retail football partner of choice for some of the major brands for 2010
        -   Store expansion – 130 stores by 2010
• DueSouth
        -   Caters for the modern, hi-tech outdoor consumer
        -   Continues to enjoy increased market awareness
        -   Growing acceptance of our exclusive key international brands, The Northface and Columbia
        -   Store expansion – 31 by 2010
                                                                                                           Foschini Group Analyst Presentation 2008
Jewellery division




                     Foschini Group Analyst Presentation 2008
Jewellery division

                         2008 Turnover (Rm)          % Growth          Number of stores      Space growth

American Swiss                            663,4                  6,5                 187                    3,3

Matrix                                        38,8              13,8                  19                  23,0

Sterns                                    388,5                  6,2                 122                 (0,6)

Total                                    1 090,7                 6,7                 328                    2,2


• Total same store growth of 3,3%
• Remains dominant 1 and 2 player in mass middle market jewellery sector
• Jewellery surprisingly strong for most of the year, but now trading at similar
  levels to clothing
• Severely impacted by increase in gold price and the rand/dollar rate of exchange
• Input gold price increased in excess of 30% during the year
• Pro-active planning done to ensure product mix was adjusted to soften impact
  on price points
• Store expansion – particular opportunity with Sterns
                                                                       Foschini Group Analyst Presentation 2008
@home division




                 Foschini Group Analyst Presentation 2008
@home division

                                                                                   Number of
                   2008 Turnover (Rm)     % Growth          % Same store growth     stores          Space growth

@home                             458,0              11,1                  (0,3)               61               8,1


• Serves LSM 8-10 market segment
• Very competitive market segment
• Third @homelivingspace store opened in Bloemfontein with a further 7 planned by 2010
• 2 @home franchise stores opened in Dubai with a further 3 planned in UAE this year
• Store expansion – 7 @homelivingspace & 12 @home by 2010




                                                                            Foschini Group Analyst Presentation 2008
Financial Services




                     Foschini Group Analyst Presentation 2008
Financial services: Agenda
• Financial Services Overview
   - Credit Landscape
   - Structure
   - NCA & our approach

• FG Financial Services
   - Performance
   - Statistics
   - Strategy & outlook

• RCS Group
   - Structure
   - Overview
   - Financial review
   - Strategy & outlook
                                Foschini Group Analyst Presentation 2008
Financial services overview: Credit landscape
2007
                                                        1st qtr   2nd qtr       3rd qtr    4th qtr
Household disposable income                             14,0      14,0          12,7       12,5

Source : SARS Financial Stability Review – March 2008




                                                                            • Aggressive bank card marketing prior to
                                                                              1st June 2007
                                                                            • Substantial credit limit hikes prior to
                                                                              1st June 2007
                                                                            • Repo moves from 9% to 11%
                                                                            • CPIX in double digits and rising
                                                                            • Disposable income outpaced in the
                                                                              short term



                                                                                                Foschini Group Analyst Presentation 2008
Financial services overview: Structure


        INTERNAL             100% Holding                          55% Holding                EXTERNAL




             FG Financial Services                                               RCS Group




                                                 TRANSITIONAL                    FIXED TERM             OTHER
                                                   FINANCE                       INSURANCE           INVESTMENTS



                                                                                                         65% Holding


                                              GENERAL    PRIVATE
                                      STORE                             PERSONAL        HOME                 EFFECTIVE
 CLUB       INSURANCE     ONE2ONE             PURPOSE     LABEL
                                      CARDS                               LOANS         LOANS              INTELLIGENCE
                                               CARDS      CARDS


                                                                         Foschini Group Analyst Presentation 2008
Financial services overview: NCA and our approach
• Conversion of our customer base to NCA
    - Full conversion rationale (example)
• Maximising credit limits / limiting risk exposure
    - Conservative approach
    - Negative impact on pre and post 1st June sales
    - Good impact on book performance
• NCA Impacts
    - 6,7% fewer new accounts
    - Greater degree of self declines




                                                       Foschini Group Analyst Presentation 2008
Financial services overview: Credit limit/allocation
• After affordability evaluation a customer has R500 a month disposable
  for servicing new debt


• Credit limit (or “facility”) = R500*12 = R6000


• However based on our risk criteria, the model indicates an appropriate initial
  limit exposure of R3000


• Credit Allocation (or “temporary credit limit”) = R3000


• Maximum initial spend = R3000
• Over time a further R3000 can be made available to this customer




                                                                 Foschini Group Analyst Presentation 2008
FG Financial Services




                        Foschini Group Analyst Presentation 2008
FG financial services: Performance

                                                                           2008                                       2007
                                                                            Rm              % change                   Rm
    Interest income                                                                385,5      28,8                              299,3
    Other income                                                                   144,0      69,0                               85,2
                                                                                   529,5      37,7                              384,5
    Net bad debt                                                                  (217,2)     15,7                            (187,8) **
    Credit costs                                                                  (165,2)     11,6                            (148,0)
    Profit before tax                                                              147,1     202,1                               48,7

    ** Restated to exclude R19.8m abnormal sale of written-off accounts.


•     Interest benefits from rate & term increases
•     Solid growth from other financial products
•     Bad debt well managed at 3,5% of sales
•     Costs tightly managed
•     Healthy bottom line contribution from this area



                                                                                              Foschini Group Analyst Presentation 2008
FG financial services: Statistics

    Key debtor statistics                                                               2008                 2007
    Number of active accounts (‘000)                                                   2,165                 2,163
    Credit sales as a % of total retail sales                                           63,6                  66,7
    Net debtors’ book (Rm)                                                            2,414,9              2,235,2 **
    Arrear debtors % to debtors book                                                    25,1                  25,0

    Net bad debt writeoff as a % of credit transactions                                   3,5                  3,0 **
    Net bad debt writeoff as a % of debtors book                                          8,3                  7,4 **
    Doubtful debt provision as a % of debtors book                                        8,4                  8,0
    % able to purchase                                                                  82,0                  82,1
    ** Restated to exclude R19.8m abnormal sale of written-off accounts.

•     Active accounts flat – of concern
•     Impact of credit/debit cards seen in switch to cash
•     Book growth slows to 8%
•     Healthy provision maintained
•     Ratios expected to deteriorate marginally over next period
•     Further increase in collectors
•     Scorecards remain highly predictive
                                                                           Foschini Group Analyst Presentation 2008
FG financial services: Strategy and outlook
• Customer relationship focus
• Move to 12-month product seen as positive impact on sales
• New products introduced in Insurance and Club
• One2One telemarketing expanded
• Further strengthening of our collections and recoveries capability
• Bad debt performance through to August appears to be tracking on budget




                                                                  Foschini Group Analyst Presentation 2008
RCS Group




            Foschini Group Analyst Presentation 2008
RCS Group: Structure

                                                     RCS Group


    Transactional                                                  Fixed Term                              Effective
       Finance                                                       Finance                           Intelligence (Ei)



                                             RCS Personal                               RCS Home
  RCS Cards Pty Ltd
                                             Finance Pty Ltd                           Loans Pty Ltd



                      General Purpose Card                            Loans                                   Home Loans



                         Private Label
                                                                  Vehicle Finance
                          Queenspark


                       Private Label MDD
                                                                Debt Consolidation




                                                               Stand Alone Insurance


                                                                                       Foschini Group Analyst Presentation 2008
RCS Group: Overview
• Tough year that saw advances come under pressure
• NCA had greater impact on this business than envisaged
• RCS faced same growth in bad debts as in the banking industry
• New Projects – eg. Vehicle Finance not viable and took focus off prime business
• Key senior staff not in place to facilitate growth
• Collections were not keeping pace with growth




                                                               Foschini Group Analyst Presentation 2008
RCS Group: Financial review – 2008

 ROE = PAT / OPENING EQUITY 38%
 ROE = PAT / AVE EQUITY 34%

• Total RCS Group vs prior year:           • Bad Debt up due to:
• PBT                 R270m        (15%)       - Pre NCA Acquisition strategy
• Revenue             R781m        (24%)       - Non Foschini Customer Loans
• Bad Debt            R254m        (91%)   • Advances and Book impacted
• Cost                R257m        (37%)     by NCA related decisions
• Book (gross)        R1,955m       (6%)       - Fixed term - negative growth
• Advances            R1,826m       (1%)       - Transactional – moderate growth
• Cost to Income                    34%    • Cost increased due to collections;
                                             new premises and infrastructure
• PBT / Ave Book                   14.2%
                                           • Healthy ROE’s and positive signs in
• Debt / Gross Book                59.5%     early delinquency in April / May

                                                          Foschini Group Analyst Presentation 2008
RCS Group: Financial review – Historic trend

 R 1,000,000K

  R 900,000K

  R 800,000K

  R 700,000K

  R 600,000K

  R 500,000K

  R 400,000K

  R 300,000K                                                             PBT


  R 200,000K                                                             Revenue

                                                                         Bad Debt
  R 100,000K

                                                                         Costs
        R 0K
                2004   2005   2006   2007            2008


                                            Foschini Group Analyst Presentation 2008
RCS Group: Financial review – by business unit




                                      Foschini Group Analyst Presentation 2008
RCS Group: Strategy and outlook
• RCS Group
    - Management team strengthened
    - New premises allow the division to consolidate its operations at a single location
    - Strategic investments in the form of EI will pay dividends in 2009


• Transactional Finance
    -   Cards acceptance now by 7500 Merchants
    -   New account volumes back on track with double digit growth on last year
    -   Two additional major national retailers to accept RCS card
    -   Acceptance of card in all Foschini group outlets by July 2008
    -   Cards scorecards aligned to improve bad debt rates
    -   Massmart deal with Competition Board expected to be earnings enhancing next year
    -   Several new Private Label portfolio’s being investigated.


• Fixed term Finance
    -   NCA opportunities +R10k loans >36 months now being offered
    -   Loans being priced for risk
    -   Advances have crept back to pre-NCA levels
    -   Bad debt experience in April and May back on track

                                                                                      Foschini Group Analyst Presentation 2008
Prospects and outlook




                        Foschini Group Analyst Presentation 2008
Prospects
• Trading divisions – no issues still to be addressed
    - Updating strategy
        - Clear strategies in play
        - Looking for continued improvement in merchandise offerings across all divisions,
          particularly Foschini stores
• Upside in Foschini stores performance
• Space growth in the next few years
    - Lagging behind competitors
    - Expansion in the right trading brands
    - 100 new stores to be opened in selected brands in 2009 – approx 10% floor space growth
• Supply chain initiative underway
    - Reduced product leadtimes
    - Increased stock turns
    - Stronger supplier relationships
• Retail debtors’ book
    - Well managed and strong
    - Providing 12-month account as alternative to 6-month
• Strong balance sheet

                                                                                  Foschini Group Analyst Presentation 2008
Outlook for 2009
• 2009 will be an extremely difficult year, particularly 1st half
• Gross margins to be maintained
• Aggressive containment of costs to levels appropriate to expected turnover
• Continued good performance from our retail debtors’ book
• Additional interest income and turnover lift from our debtors’ alternative 12-month offer
• Retail sales for the 1st 8 weeks of the year remain difficult
    - All divisions are in line with or marginally ahead of budget, with the exception
      of Foschini stores which is slightly behind budget
• Internal budgets reflect an increase in earnings




                                                                    Foschini Group Analyst Presentation 2008
Thank You




            Foschini Group Analyst Presentation 2008