FINAL RESULTS AND DIVIDEND DECLARATION for the 53 weeks ended 30 - PDF document

CELEBRATING 40 YEARS FINAL RESULTS AND DIVIDEND DECLARATION for the 53 weeks ended 30 June 2019

CONTENTS FINANCIAL REVIEW 5 PRODUCT CATEGORIES 25 STORE DEVELOPMENT AND MARKET SUMMARY 36 FINANCIAL RESULTS 47 CASHBUILD AUDITED RESULTS FOR 53 WEEKS ENDED 30 JUNE 2019

2019 FINAL RESULTS AND DIVIDEND DECLARATION FOR THE 53 WEEKS ENDED 30 JUNE 2019 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 NOTES CASHBUILD AUDITED RESULTS FOR THE 53 WEEKS ENDED 30 JUNE 2019

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 • 315 stores and expanding (255 Cashbuild, 59 P&L Hardware and one Cashbuild DIY) 3 NOTES FINANCIAL HIGHLIGHTS - STATUTORY Revenue Operating profit Headline earnings Net asset value per share R10.8bn R559m R434m 8 636 cents 6% 3% 14% 2% 12 700 600 100 Rbn Rm Rm Rand 90 600 10 500 80 500 70 8 9% 400 60 24% 400 21% 6 300 50 300 40 4 200 200 30 3% 20 (12%) 2 100 (11%) 100 10 0 0 0 0 15 16 17 18 19 15 16 17 18 19 15 16 17 18 19 15 16 17 18 19 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half Compound Annual Growth Rate (CAGR) 2 year 5% (5%) (3%) 14% 10% 5 year 9% 10% 12% 4 NOTES CASHBUILD AUDITED RESULTS FOR THE 53 WEEKS ENDED 30 JUNE 2019

CELEBRATING 40 YEARS FINANCIAL REVIEW CASHBUILD AUDITED RESULTS FOR THE 53 WEEKS ENDED 30 JUNE 2019 5

INCOME STATEMENT YEAR-ON-YEAR Audited Unaudited Audited Jun 2019 Jun 2019 Jun 2018* % 53 rd Week R’000 (53 Weeks) (52 Weeks) (52 Weeks) change Revenue 10 821 235 199 097 10 622 138 10 206 730 4 Gross profit 2 720 006 52 748 2 667 258 2 568 453 4 Gross profit % 25.1 26.5 25.1 25.2 Operating expenses 2 160 981 1 027 2 159 954 2 025 258 7 Operating expenses % 20.0 20.3 19.8 Operating profit 559 025 51 721 507 304 543 195 (7) Operating profit % 5.2 4.8 5.3 Net financing income 53 688 134 53 554 50 985 5 Profit for the period 432 419 36 289 396 130 425 153 (7) Earnings per share (cents) 1 881.3 159.7 1 721.6 1 851.6 (7) Dividend per share (cents) 855.0 842.0 2 Weighted number of shares (‘000) 22 716 22 711 - * The application of IFRS 15 has resulted in a restatement of June 2018 figures 6 NOTES INCOME STATEMENT HIGHLIGHTS HALF YEAR COMPARISON 2 nd Half 1 st Half % % 2018* change 2018* change 2019^ 2019 R’000 Revenue 5 058 907 4 813 889 5 5 563 231 5 392 841 3 1 273 002 1 212 078 5 1 394 256 1 356 375 3 Gross profit Gross profit % 25.2 25.2 25.1 25.2 1 050 567 990 924 6 1 109 387 1 034 334 7 Operating expenses Operating expenses % 20.8 20.6 19.9 19.2 Operating profit 222 435 221 154 1 284 869 322 041 (12) 4.4 4.6 5.1 6.0 Operating profit % • The application of IFRS 15 has resulted in a restatement of the 2018 figures ^ Excluding the 53 rd Week 7 NOTES CASHBUILD AUDITED RESULTS FOR THE 53 WEEKS ENDED 30 JUNE 2019

REVENUE BREAKDOWN % change Cashbuild stores P&L Hardware stores R’000 FY 2019 FY 2018 Total Total New Existing* Total New Existing* Quarter 1 2 650 823 2 572 837 3 1 3 (2) 19 13 6 Quarter 2 2 912 408 2 820 004 3 2 3 (1) 12 6 6 1 st Half 5 563 231 5 392 841 3 2 3 (1) 15 9 6 Quarter 3 2 468 062 2 398 519 3 2 3 (1) 5 4 1 Quarter 4 2 590 845 2 415 370 7 7 3 4 6 4 2 53 rd Week 199 097 Total 10 821 235 10 206 730 6 5 3 2 10 6 4 * All stores in existence prior to 1 July 2017 8 NOTES SALES R’MILLION All stores Q4: 7% Growth: Q1: 3% Q2: 3% Q3: 3% Q4: 15% (incl W53) Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Existing stores Q4: 4% Growth: Q1: (1%) Q2: 0% Q3: 0% Q4: 12% (incl W53) Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 9 2019 (incl W53) 2019 2018 2017 NOTES CASHBUILD AUDITED RESULTS FOR THE 53 WEEKS ENDED 30 JUNE 2019

CUSTOMER TRANSACTIONS ‘000 All stores Q4: 4% Growth: Q1: (1%) Q2: (1%) Q3: 1% Q4: 13% (incl W53) Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Existing stores Q4: 0% Growth: Q1: (6%) Q2: (5%) Q3: (2%) Q4: 8% (incl W53) Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 10 2019 (incl W53) 2019 2018 2017 NOTES AVERAGE BASKET SIZE RAND All Stores Growth Q1: 4% Q2: 5% Q3: 3% Q4: 5% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 11 2019 2018 2017 NOTES CASHBUILD AUDITED RESULTS FOR THE 53 WEEKS ENDED 30 JUNE 2019

GROSS PROFIT AND EBIT MARGIN 28% 8% * 7.1% 27% 7% 6.4% 27.0% 26% 6.0% 6% 25.9% 25.7% 25.4% 25.4% 25% 25.2% 25.2% 25.1% 25.2% 25.3% 5% 5.3% 24% ^ 4.8% 23% 4% 22% 3% 21% 2% 20% 1% 19% 18% 0% FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 1HY 2HY FY EBIT margin • Excludes BEE transaction ^ Excluding 53 rd Week 12 NOTES SEGMENTAL DISCLOSURE (EXCL 53 RD WEEK) 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 % % % % % 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Revenue 8 300 8 043 3 1 256 1 136 11 602 607 (1) 464 421 10 10 622 10 207 4 Gross profit 2 198 2 097 5 207 219 (5) 149 147 1 113 105 8 2 667 2 568 4 GP % 26.5 26.1 16.5 19.3 24.8 24.2 24.4 24.9 25.1 25.2 Operating 480 479 - (9) 21 (>100) 32 36 (11) 4 7 (43) 507 543 (7) profit/(loss) OP % 5.8 6.0 (0.7) 1.8 5.3 5.9 0.9 1.7 4.8 5.3 Capital 166 119 39 12 82 (85) 20 24 (17) 6 19 (68) 204 244 (16) investment Revenue Revenue Operating profit Operating profit Jun 2019 Jun 2018 Jun 2019 Jun 2018 6% 1% 6% 4% 6% 4% 7% 1% -2% 4% 12% 11% 78% 79% 95% 88% South Africa South Africa Namibia, Lesotho and Swaziland Botswana, Malawi and Zambia (Cashbuild) (P&L Hardware) 13 NOTES CASHBUILD AUDITED RESULTS FOR THE 53 WEEKS ENDED 30 JUNE 2019

% of 2019 sales SALES BY PROVINCE 2.9% 2.8% R’MILLION (EXCL 53 RD WEEK) 4.4% 20.2% 5.1% 8.0% 4.2% 4.9% 10.1% 19.9% 4.1% 11.9% 14.7% 6.7% 4.3% 3.2% (3.7%) 2.1% 16.8% (3.9%) 68 66 63 60 43 42 35 38 32 33 26 25 14 14 15 15 10 9 8 9 Limpopo Gauteng Mpumalanga Eastern Cape Countries KwaZulu-Natal North West Free State Western Cape Northern Cape Year-on-year sales growth The number of stores (excluding DIY stores) are indicated at the bottom of the bars 14 NOTES EXISTING BUSINESS RESULTS (EXCL 53 RD WEEK) % R’000 FY 2019 FY 2018 change Revenue 10 059 538 9 971 123 1 Gross profit 2 497 923 3 2 563 105 Gross profit % 25.5 25.1 Operating expenses 2 011 095 1 949 105 3 Operating expenses % 20.0 19.5 Operating profit 552 010 548 817 1 Operating profit % 5.5 5.5 “Existing business” refers to stores that have comparative trading results for the entire prior financial year 15 NOTES CASHBUILD AUDITED RESULTS FOR THE 53 WEEKS ENDED 30 JUNE 2019