AUDITED RESULTS AND DIVIDEND DECLARATION JUNE 2018 CONTENTS - PDF document

AUDITED RESULTS AND DIVIDEND DECLARATION JUNE 2018

CONTENTS FINANCIAL REVIEW 5 PRODUCT CATEGORIES 27 STORE DEVELOPMENT AND MARKET SUMMARY 38 FINANCIAL RESULTS 48 CASHBUILD AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2018

AUDITED FINAL RESULTS AND DIVIDEND DECLARATION June 2018 NOTES DISCLAIMER This presentation differs from the presentation available on the website and in the hand-out given to presentation participants as a result of industry sensitive information contained therein. The financial information pertaining to Cashbuild Limited’s (Cashbuild’s) results are exactly as published on SENS in terms of the JSE Limited’s Listings Requirements. This presentation may contain certain "forward-looking statements" regarding beliefs or expectations of Cashbuild, its directors and other members of its senior management about Cashbuild’s financial condition, results of operations, cash flow, strategy and business and the transactions described in this presentation. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The words "believe", "expect", "anticipate", "intend", "estimate", "forecast", "project", "will", "may", "should" and similar expressions identify forward-looking statements but are not the exclusive means of identifying such statements. Such forward-looking statements are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of Cashbuild and are difficult to predict, that may cause the actual results, performance, achievements or developments of Cashbuild or the industry in which it operates to differ materially from any future results, performance, achievements or developments expressed by or implied from the forward-looking statements. Each member of Cashbuild expressly disclaims any obligation or undertaking to provide or disseminate any updates or revisions to any forward-looking statements contained in this announcement. 2 2 NOTES CASHBUILD AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2018

NATURE OF BUSINESS • Mass retailer of building materials, home improvement and related products • Offers a focused range of quality products at competitive prices • Selling predominantly for cash • Largest retail chain of building materials in southern Africa • 318 outlets and expanding (251 Cashbuild, 60 P&L Hardware and 7 Cashbuild DIY outlets) 3 3 NOTES FINANCIAL HIGHLIGHTS Revenue Operating profit Headline earnings Net asset value per share R10.2bn R543m R424m 7 578cents 12% 9% 5% 14% 12 Rbn 700 500 80 Rm Rm Rand 70 600 10 400 60 500 8 (10%) 5% 50 (15%) 300 400 6 40 300 200 30 4 200 20 (8%) 5% (10%) 100 2 100 10 0 0 0 0 14 15 16 17 18 14 15 16 17 18 14 15 16 17 18 14 15 16 17 18 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half Compound Annual Growth Rate (CAGR) 2 year 9% (1%) (1%) 15% 5 year 10% 11% 12% 12% 4 4 NOTES CASHBUILD AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2018

FINANCIAL REVIEW CASHBUILD AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2018 5

INCOME STATEMENT STATUTORY YEAR-ON-YEAR Audited Audited Jun 2018 Jun 2017 R’000 (52 Weeks) (52 Weeks) % change Revenue 10 207 603 9 729 640 5 Gross profit 2 568 584 2 480 929 4 Gross profit % 25.2 25.5 Operating expenses 2 025 258 1 860 932 9 Operating expenses % 19.8 19.1 Operating profit 543 326 619 997 (12) Operating profit % 5.3 6.4 Net financing income 50 985 37 029 38 Profit for the year 425 248 469 486 (9) Earnings per share (cents) 1 852.1 2 047.7 (10) Dividend per share (cents) 842 930 (9) Weighted number of shares (‘000) 22 710 22 708 - 6 6 NOTES INCOME STATEMENT HIGHLIGHTS HALF YEAR COMPARISON 2 nd Half 1 st Half % % 2018 2017 change 2018 2017 change R’000 Revenue 4 802 619 4 558 733 5 5 404 984 5 170 907 5 Gross profit 1 209 350 1 169 734 3 1 359 234 1 311 195 4 Gross profit % 25.2 25.7 25.1 25.4 Operating expenses 990 924 911 742 9 1 034 334 949 190 9 Operating expenses % 20.6 20.0 19.1 18.4 Operating profit 218 426 257 992 (15) 324 900 362 005 (10) Operating profit % 4.5 5.7 6.0 7.0 7 7 NOTES CASHBUILD AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2018

REVENUE BREAKDOWN % change Cashbuild stores P&L Hardware stores R’000 FY 2018 FY 2017 Total Total New Existing* Total New Existing* Quarter 1 2 575 455 2 447 381 5 5 4 1 10 9 1 Quarter 2 2 829 529 2 723 526 4 2 3 (1) 22 16 6 1 st Half 5 404 984 5 170 907 5 3 3 - 16 12 4 Quarter 3 2 386 761 2 230 311 7 5 3 2 22 15 7 Quarter 4 2 415 858 2 328 422 4 2 3 (1) 19 12 7 Total 10 207 603 9 729 640 5 3 3 - 18 13 5 1 st 6 weeks trading since period end up 1% * All stores in existence prior to 1 July 2016 8 8 NOTES SALES R’MILLION All stores Growth: Q1: 5% Q2: 4% Q3: 7% Q4: 4% 2018 2017 2016 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Existing stores Growth: Q1: 1% Q2: (1%) Q3: 2% Q4: (1%) 2018 2017 2016 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun * 2016 has been smoothed for comparative 5 weeks vs 4 weeks 9 9 NOTES CASHBUILD AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2018

CUSTOMER TRANSACTIONS All stores Growth: Q1: 2% Q2: 1% Q3: 1% Q4: 1% 2018 2017 2016 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Existing stores Growth: Q1: (2%) Q4: (4%) Q2: (3%) Q3: (4%) 2018 2017 2016 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 10 10 * 2016 has been smoothed for comparative 5 weeks vs 4 weeks NOTES AVERAGE BASKET SIZE All stores Q3: 6% Q4: 2% Growth Q1: 3% Q2: 3% 2018 2017 2016 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Existing stores Growth Q1: 3% Q2: 3% Q3: 7% Q4: 4% 2018 2017 2016 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 11 11 * 2016 has been smoothed for comparative 5 weeks vs 4 weeks NOTES CASHBUILD AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2018

GROSS PROFIT AND EBIT MARGIN 28% 8% * 7.1% 27% 7% 27.0% 6.4% 6.0% 26% 26.3% 6% 25.7% 25.9% 5.3% 25.4% 25% 25.3% 25.2% 25.4% 5.3% 25.1% 5% 24.5% 24% 23% 4% 22% 3% 21% 2% 20% 1% 19% 18% 0% FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 1HY 2HY FY EBIT margin * Excludes BEE transaction 12 12 NOTES SEGMENTAL DISCLOSURE Cashbuild Namibia, Cashbuild P&L Hardware Cashbuild Botswana, Lesotho and Total Group South Africa South Africa Malawi and Zambia Swaziland Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Rm % % % % % 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Revenue 8 044 7 788 3 1 136 960 18 607 596 2 421 386 9 10 208 9 730 5 Gross profit 2 098 2 061 2 219 175 25 147 143 3 105 102 3 2 569 2 481 4 GP % 26.1 26.5 19.3 18.2 24.2 24.0 24.9 26.4 25.2 25.5 Operating profit 479 537 (11) 21 32 (34) 36 38 (5) 7 13 (46) 543 620 (12) OP % 6.0 6.9 1.8 3.3 5.9 6.4 1.7 3.4 5.3 6.4 Capital 119 106 12 82 13 >100 24 43 (44) 19 31 (39) 244 193 26 investment Revenue Revenue Operating profit Operating profit Jun 2018 Jun 2017 Jun 2018 Jun 2017 6% 4% 7% 1% 5% 6% 2% 6% 4% 4% 11% 10% 79% 80% 88% 87% South Africa South Africa Namibia, Lesotho and Swaziland Botswana, Malawi and Zambia (Cashbuild) (P&L Hardware) 13 13 NOTES CASHBUILD AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2018

% of Total sales SALES BY PROVINCE 2.8% 2.7% 4.5% 20.2% 5.5% 8.1% 5.9% 2.4% 10.1% 19.8% 6.5% 11.6% 14.7% 9.5% 4.6% 0.4% 1.6% 1.1% 2.2% 33.4% 66 64 60 51 42 41 38 29 33 30 25 26 14 15 15 15 8 8 10 9 Limpopo Gauteng Mpumalanga Eastern Cape Countries KwaZulu-Natal North West Free State Northern Cape Western Cape Year-on-year sales growth 14 14 NOTES EXISTING BUSINESS RESULTS R’000 FY 2018 FY 2017 % change Revenue 9 517 607 9 483 275 - Gross profit 2 403 958 2 418 684 (1) Gross profit % 25.3 25.5 Operating expenses 1 848 826 1 799 013 3 Operating expenses % 19.4 19.0 Operating profit 555 132 619 671 (10) Operating profit % 5.8 6.5 “Existing business” refers to stores that have comparative trading results for an entire prior financial period 15 15 NOTES CASHBUILD AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2018