Super Retail : Macquarie Australia Conference Presentation 2022

2022

MACQUARIE AUSTRALIA CONFERENCE PRESENTATION

Authorised for release by the Super Retail Group Board

Tuesday 3 May 2022

ABN: 81 108 676 204

Introduction

Investing for future growth

• • In 2019, Super Retail Group announced our refreshed corporate strategy

• • Today's presentation will focus on a subset of key initiatives of the strategy, specifically:

  • ― Store network optimisation and refurbishment

  • ― Digital and omni-retail capability

  • ― Personalisation and customer loyalty

  • ― Supply chain efficiency

• • Since 2019, the Group has made progress in increasing the scale and profitability of our digital offering as we continue our transformation from a traditional bricks and mortar to an omni retail business

• • The Group's investment for future growth is delivering business improvements. These will provide a platform to sustainably generate value for our shareholders

Our strategy

STRATEGIC DRIVERS

Network optimisation - added ~30 (net) stores and upgraded network quality through new formats, refurbishments and fleet rationalisation

2019

• • 323 stores1

• • Underinvestment in fleet refurbishment

2022

• • 329 stores2 (+6 stores)

• • Commenced program to convert ~170 old generation stores into new generation stores over the next 5 years

  • • Designated service zones for "do it for me" fitment services

  • • Improved visibility and accessibility of Click & Collect

  • • Increased dedicated floorspace for tools

2026 OPPORTUNITY

• • ~ 360 stores

• • 50% of fleet in generation 4 format

• • 100% "Make it Super" red external stores (pictured)

• • Eliminate range-compromised stores (22 today)

• • Approximately 8 high fulfilment sites

• • 161 stores1

• • 63 former Amart Sports stores

• • Network overlap between former Amart Sports stores and rebel stores

• • Underinvestment in top 25 and CBD stores

• • No immersive customer experiences in store

• • 154 stores2 (-7 stores)

• • Focus on converting top 25 stores to rCX format and cascade of 'worlds of' formats into mid tier stores to elevate customer experience and increase sales intensity

• • 9 rCX Accelerate stores now open including Rundle Mall flagship store in Adelaide

• • 5 "duplicate" former Amart Sports stores now closed and 49 of 58 remaining stores refurbished

• • "Worlds of" basketball, football etc rolled out in 44 Benchmark stores

• • Opened 4 high fulfilment stores

• • 155 to 160 stores

• • rCX Accelerate in top 25 stores

• • rCX Benchmark in top 90 stores

• • CBD Flagship Stores in Melbourne, Sydney, Brisbane, Adelaide and Perth

• • New store openings in select regional locations and underpenetrated city catchments

• • All Tier X (underperforming or duplicated) stores exited

• • Finalise refurbishment of ex Amart stores

Network optimisation - added ~30 (net) stores and upgraded network quality through new formats, refurbishments and fleet rationalisation

2019

• • 136 stores1

• • Generic ranging across all stores

• • 59 stores1

• • Finalising conversion of 9 Rays stores to Macpac large format stores and closure of remaining Rays stores

• • Sub-scale in the Australian market

2022

• • 145 stores2 (+9 stores)

• • Commenced roll out of small format (~600 sqm) regional stores

  • • delivering sales intensity well above fleet average

  • • regional location means lower rent per sqm

• • Opened 6 small format regional stores

• • Tailored localised ranging

• • 6 high fulfilment sites

• • 82 stores2 (+23 stores)

• • 7 new stores opened in H1 FY22

• • Growing brand scale and awareness in Australia

• • Focus on roll out of stores in large shopping centres in cold climate Australian states

2026 OPPORTUNITY

• • ~165 stores

• • 5 new flagship Superstores - Townsville scheduled to open in H1 FY23

• • 60% of fleet in new format

• • Amplification of 4X4 range and expansion of apparel offering (including Macpac)

• • ~105 stores

• • ~15 large format one stop shops offering comprehensive range of apparel and camping and outdoor adventure equipment

• • Launch Next Generation store design and experience

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