If the pictures are not clear, please google Super retail group ASX reports and publications and look for 2019 annual report.
The group assignment involves analysis of the 2018 and 2019 Annual Report of an Asx listed company, Super Retail Group Limited (ASX code: SUL). Part A of the assessment involves identifying and summarising specific information within the 2018 Annual Report. This is to enable students to become familiar with the structure and content of an Annual Report in order to use the financial information provided to make an evaluation. Part A requirements: Part A requires investigation of relevant management discussion for Super Retail Group for the financial year ending 29 June 2019. This involves answering the following questions in your own words (i.e. do not simply "cut and paste" information from the Annual Report). The objective is to apply critical thinking concepts, so you need to be able to explain and justify your answers. All answers must be fully referenced both in-text and in a full reference list using the Harvard referencing system. Question 1: What category of business is Super Retail Group Ltd? Support and explain your answer using both qualitative (i.e. non-financial) evidence from the "Chair's Message" and "CEO's Message" appearing in the Annual Report (Super Retail Group, 2019, p.2-5) and quantitative (i.e. financial) information from the consolidated Balance Sheet and supporting notes to this statement. Question 2: Read the "Chair's Message" and "CEO's Message" (Super Retail Group, 2019, p.2-5). Imagine you are an investor who is considering whether or not to purchase shares in Super Retail Group. What do you think is the one most significant point mentioned in these pages to help with this decision? Provide evidence to support your choice. Question 3: If you could compare Super Retail Group's financial performance and position to one other ASX listed company, which company would you choose? Be specific and ensure you provide reasons to support your choice Chair's Message rebel rebel know A ond DEAR SHAREHOLDER In presenting our 2019 financial year results, I am pleased to report that Super Retail Group has made significant progress in building a stronger omni-retail business, well positioned for sustainable growth and enduring success. While the court the past supported the continued succo Inapoing Anthony, the year won changing periodo the Group's devu. towweled Bes who had your cry and the oder been with the company for til towertoned our focus This year your Board mocha ning up the business to igricant decorating to the yeon including 13 yeon Managing Director and Chat longum vc for wholden Group Moning Drector and Chat Becutive Office poulion folewing twee keer por edhe The Group's rencillor the well-planned to proces y were put net virmant and bad Alher a compregabe bond banding and economic condition, the value cach, the Board anghening the Auto Coup's policy to main vidend memba remuneration to prevent Under Palladip the franciers and the underlying of our branch and high customer harmed in January that Anthony the problemi Group on marocaing brandt payout rontol bespect ringth of birth engagement med cente Huraghy would succedere and highly engaged team member and percent of underlying at QUE SUCC Out engaged team mambenutus hard work and Cup Managing Director and ping to make the moutal apart from other in Australia proces Chet beste for Anthony The Board and create Icho thank my Boordcegues for who was y Monegro har tre time. We wahhm all the and wind. As we look ahead to the board and management care ther comment to the Group and time in stores, support Director of the Outdoor din to the real chapter of our journey to placed with the pa we have found guidance during a year of igricant cibution Condother becoming di amici to bude vrouw during Begrettably, the Board rents at our supply chain and hermal change for the company camera and customer the decupluntomer focus and contrated with a focused leader who will shape 2017 but we raman determined The decline water angge reguloy with the coup's hay organico cursul caround remation or the capability of the best and to contine Super Hero Coup's Board will continue to chanh on couragement, and Croup and deliver notum understanding of your we lead our cluton to leading marcon clocotocol diversity and inclusion-uncupie advantage of the were for you, but there perchenthe Board do While allowed ou performance provide atlet upport to the With wethofreciente Thank you for your contingut back payment within the ladung cam and up to building on the manum The robust francic performance Super Group and the Board is very by enhancing and opening cand prudent capital management shop business Bocand we dappointed with the Cortint that Anthony and lack outve vnight that Dubotto che organic supported the Board on to in one corporate ad to this and growth and intereste decione tra divinda canti honden Australian eng heightened recam wel equipped to the Pray Management Porn per should bringing public and growth your nast chapter of growth and meet on outcome ora year dividench to 30 persoane Tot mye to wwwyone company's commento good the changes of an incredung reflection of this con fully rank can increc Bur commembers for their compattoond technologien 2 per cento the priory. The dedication and comment in Sety in approach to chon makina including review of full year poyout wine with the engloutcome Ouro Independent Non-bacutive Cha ilaa en Slithin CEO's Message SA Qurants will cacin our 2019 Sustainability Deport, rucned in October 2013 STERGICROCUS Our primary son cheving organic growth in our branch and optiming turn to our thanh through the held location of capital. Looking cho the crevenir og I am plecat port that 2018/19 has been not collector the Company Incloughconvironment SuperReal Group has delivered devenue and caring growth hiching the strength of our fout trends, lience of our busin cand the act of the which we puncte FINANCIAL PERFORMANCE Group gw by 5.45 supported by 2.7 Group for kgrowth 256 growth cines and strong custom engagement, Segment BIDAI by? Do 314.7 million and Segmenti incond by 3. to $22.1 milion NPA cabutton Indby to $199.3 milion and remote PAT inced by S. $152 milion Strong operating how ned to fund or growth initiative while reducing and increcing dividend payment to our holder DEAR SHAREHOLDER As only the fourth Managing Director and Chief Executive Officer in Super Retail Group's long history, I am honoured to have been appointed to the position by the Board in 2019. TOUR POWER BANDS DELIVERING CUSTOMER LOYALTY IS KEY SOUD SALES GROW Our large growing and loyal Out our power branche customer bom representa marcedir positions in attractive entre compte and growing chegorien for the organization In 2018/19 al tour brand deed Strong brand we, our focus on sold total growth can be theindore and cience and the bath we for growth and rapid growth offin culoyalty programa novel Incine contributed to continence The strength of our branch andra In loyalty club membah capacity to imprendang We now have more than milion customer concludin kay active club members customers for FY19. Our lot brands and together theneb customer trovare incred mambo more than by 2.3 percento milion and Si percent of the our to club members Looking forward, there is on improved to up from in the pportunity to deepencur proyer connection with our customer 1919 Sales Sales growth ke tarike Online sales Sm al growth growth Supercheap Auto 10406 3.45 Rebel 164 395 by improving our customer canalice to cover more on con and regur loyalty program INVESTING IN WINNING OMBETARE CAPARUTES We cu investing in our omstal capable to grow our over marathcare by providing multiple way for our customers to argo with our brands and shopping price More than percent of our online care Click Collectie that product in store and engage our customer anime pickup with a pomoccam member in the proces. This mucom we con wwwport 490 Ascend New ledend to grow our online and megole du contre be our clicks and be approach to winga wing While channel Secrylara piace, and network aplication remania yra focus, the Group's national or footprintermaand an integral part Our omni-cloturing A by focus in 2019/20 and beyond will be integrating technogy into surreal business the customer pencahough Iniciando che improved order chatton and clima undevour to deliver on even better relax year. We care to come to me uity and gender equality and care proud of the diverse team w have grown and the organation 3 percent of our leadership to confiled by woman whole familie representation on our Board has semained constant at pourt Advancing under diversity at all level ha prosty, in line with our target of having pecant fucherpretation Board and nice management level by 2000 A dhe painting note in 2018/19 was the creation of an underpeyman of our manger The thesome problem we uncond with our Set Upbeam memban 2017/18. We found that will mano were conect, not all overtime houn world war paid according to the General Industry Award Additionally, some wcances required under the word war not paid. They are both Underpayments that we deeply regut and we polog to our team members who have banatucted to ensure ongoing compliance who introduced an increased level of governance, including Guru audits of our employment cagement care confident that we have the control in place to pick up the sort of anomalies that may be from time to mainan trgonoon of our A SUSTAINABLE In 1919, we continued to make progress towards adopinga integrach to our bus paration. One example the launch of our readigonsible Sourceg hogam which promos fair wing conditions cantity and improvement outcomes in our supply chaine to page 1. Further detalon Delivery of a pence for come Integration of our chan Simpel operating model Improving our customer Lang our powerful branch While there onde changing and competitions recargoment that Super hatal Croup ho bright future. We own for iconic heard with dire more positions in growing high- involvement style como cute sport and outdoor In the coming year we will leverage the ongoition with a specie focus on building brands that are cu powerful as the proches greater digitor poly chain Integration and camoms real experience With the hinc con penance managem focused on its cution, we are wel positioned to impire our customer to live the point of share and create value for our shartlc AN ENGAGED AND CAPABLE TEAM We know that providing in solution and experiences for ons on an engaged capable and possionem This with providing scale working in anticomplected to report that in 2016 our local Recordable Injuryequency Recrec by mouthon 10 per cent with a mult of 1434. This is a plecang outcome and we will SCH Macpos 1308 735 245 1 Cor.com VOLG Mac Advanced Audio Anthony Group Managing Director and Chiw butto CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the period ended 29 June 2019 2019 Sm 2018 Sm Notes 2.710.4 2.B 2,713.2 2,570.4 8.5 2,579.9 (1,488.2) (1.415.5) CONTINUING OPERATIONS Revenue from continuing operations Other income from continuing operations Total revenues and other income Expenses Cost of sales of goods Other expenses from ordinary activities seling and distribution - marketing occupancy administration Net finance costs Share of net loss of associates and joint ventures Total expenses (347.8) (81.9) (215.5) (366.4) (21.3) (2.6) (2.523.7) (3323) 183.91 (2130) (339.4 (17.71 11.0) 12.402.8) Pront before income tax 189.5 176.1 13 (50.3) 139.2 127.3 Income tax expense Profit for the period Pront for the period is attributable to: Owners of Super Retail Group Limited Non-controlling interests 139.3 (0.1) 139.2 129.3 11.0 127.3 OTHER COMPREHENSIVE INCOME Items that may be reclassified to profit or loss Changes in the fair value of cash flow hedges Exchange differences on translation of foreign operations Other comprehensive income for the period, net at fax 18 18 (6.3) 2.7 (3.6) 6.2 10.9) 5.3 135.6 132.6 Total comprehensive Income for the period Total comprehensive income for the period is attributable to: Owners of Super Retal Group Limited Non-controlling interests 135.7 (0.1) 133.6 11.0) 132.6 1356 Earnings per share for profit attributable to the ordinary equity holders of the Company Basic earnings per share Diluted comings per share 16 16 70.6 69.9 65.0 64.5 CONSOLIDATED BALANCE SHEET As at 29 June 2019 2019 2018 Restated Sm 2017 Restated Sm Notes Sim ASSETS Curent assets Cash and cosh equivalents Trade and other receivables Inventories Current tax asset Derivative financial instruments Total current assets 15.2 23.8 545.5 19.9 42.6 481.5 7 B 13 15 7.5 37.6 560.2 1.9 2.8 610.0 6.8 591.3 544.0 9 264.5 750.1 Non current assets Property, plant and equipment Intangible assets Other financial assets Total non-current assets Total assets ID 23/6) 267.9 894.2 6.9 1,169.0 1,779.0 270.4 891.6 9.3 1,1713 1.762.6 1,014.6 1.558,6 362.7 3.4 3423 3.0 LIABILITIES Current Mobiles Trade and other payables Interest-bearing liabilities Current tax lloblities Provisions Derivative financial instruments Total current labies 11 12 13 14 15 - 107.3 6.2 479.6 253.7 2.6 1.5 96.3 3.1 357.2 105.0 1.5 461.4 Non.current lobos Trade and other payables Interest-bearing liabilities Deferred tax liabilites Provisions Total non-current abies Total liabilities 11 12 13 14 49.5 390.8 23.4 19.7 20.1 21.7 44.2 3980 7.1 21.5 470.8 828.0 526.0 483.4 963.0 987.4 NET ASSETS 816.0 775.2 730.6 EQUITY Contributed equity Reserves Retained earrings Capital and reserves attributable to owners of Super Retail Group Limited Non-controlling interests TOTAL EQUITY 17 18 IB 542.3 8.2 265.9 816.4 (0.4) 5423 10.3 223.3 775.9 542.3 3.5 186.7 732.5 11.9 730.6 816.0 775.2 The group assignment involves analysis of the 2018 and 2019 Annual Report of an Asx listed company, Super Retail Group Limited (ASX code: SUL). Part A of the assessment involves identifying and summarising specific information within the 2018 Annual Report. This is to enable students to become familiar with the structure and content of an Annual Report in order to use the financial information provided to make an evaluation. Part A requirements: Part A requires investigation of relevant management discussion for Super Retail Group for the financial year ending 29 June 2019. This involves answering the following questions in your own words (i.e. do not simply "cut and paste" information from the Annual Report). The objective is to apply critical thinking concepts, so you need to be able to explain and justify your answers. All answers must be fully referenced both in-text and in a full reference list using the Harvard referencing system. Question 1: What category of business is Super Retail Group Ltd? Support and explain your answer using both qualitative (i.e. non-financial) evidence from the "Chair's Message" and "CEO's Message" appearing in the Annual Report (Super Retail Group, 2019, p.2-5) and quantitative (i.e. financial) information from the consolidated Balance Sheet and supporting notes to this statement. Question 2: Read the "Chair's Message" and "CEO's Message" (Super Retail Group, 2019, p.2-5). Imagine you are an investor who is considering whether or not to purchase shares in Super Retail Group. What do you think is the one most significant point mentioned in these pages to help with this decision? Provide evidence to support your choice. Question 3: If you could compare Super Retail Group's financial performance and position to one other ASX listed company, which company would you choose? Be specific and ensure you provide reasons to support your choice Chair's Message rebel rebel know A ond DEAR SHAREHOLDER In presenting our 2019 financial year results, I am pleased to report that Super Retail Group has made significant progress in building a stronger omni-retail business, well positioned for sustainable growth and enduring success. While the court the past supported the continued succo Inapoing Anthony, the year won changing periodo the Group's devu. towweled Bes who had your cry and the oder been with the company for til towertoned our focus This year your Board mocha ning up the business to igricant decorating to the yeon including 13 yeon Managing Director and Chat longum vc for wholden Group Moning Drector and Chat Becutive Office poulion folewing twee keer por edhe The Group's rencillor the well-planned to proces y were put net virmant and bad Alher a compregabe bond banding and economic condition, the value cach, the Board anghening the Auto Coup's policy to main vidend memba remuneration to prevent Under Palladip the franciers and the underlying of our branch and high customer harmed in January that Anthony the problemi Group on marocaing brandt payout rontol bespect ringth of birth engagement med cente Huraghy would succedere and highly engaged team member and percent of underlying at QUE SUCC Out engaged team mambenutus hard work and Cup Managing Director and ping to make the moutal apart from other in Australia proces Chet beste for Anthony The Board and create Icho thank my Boordcegues for who was y Monegro har tre time. We wahhm all the and wind. As we look ahead to the board and management care ther comment to the Group and time in stores, support Director of the Outdoor din to the real chapter of our journey to placed with the pa we have found guidance during a year of igricant cibution Condother becoming di amici to bude vrouw during Begrettably, the Board rents at our supply chain and hermal change for the company camera and customer the decupluntomer focus and contrated with a focused leader who will shape 2017 but we raman determined The decline water angge reguloy with the coup's hay organico cursul caround remation or the capability of the best and to contine Super Hero Coup's Board will continue to chanh on couragement, and Croup and deliver notum understanding of your we lead our cluton to leading marcon clocotocol diversity and inclusion-uncupie advantage of the were for you, but there perchenthe Board do While allowed ou performance provide atlet upport to the With wethofreciente Thank you for your contingut back payment within the ladung cam and up to building on the manum The robust francic performance Super Group and the Board is very by enhancing and opening cand prudent capital management shop business Bocand we dappointed with the Cortint that Anthony and lack outve vnight that Dubotto che organic supported the Board on to in one corporate ad to this and growth and intereste decione tra divinda canti honden Australian eng heightened recam wel equipped to the Pray Management Porn per should bringing public and growth your nast chapter of growth and meet on outcome ora year dividench to 30 persoane Tot mye to wwwyone company's commento good the changes of an incredung reflection of this con fully rank can increc Bur commembers for their compattoond technologien 2 per cento the priory. The dedication and comment in Sety in approach to chon makina including review of full year poyout wine with the engloutcome Ouro Independent Non-bacutive Cha ilaa en Slithin CEO's Message SA Qurants will cacin our 2019 Sustainability Deport, rucned in October 2013 STERGICROCUS Our primary son cheving organic growth in our branch and optiming turn to our thanh through the held location of capital. Looking cho the crevenir og I am plecat port that 2018/19 has been not collector the Company Incloughconvironment SuperReal Group has delivered devenue and caring growth hiching the strength of our fout trends, lience of our busin cand the act of the which we puncte FINANCIAL PERFORMANCE Group gw by 5.45 supported by 2.7 Group for kgrowth 256 growth cines and strong custom engagement, Segment BIDAI by? Do 314.7 million and Segmenti incond by 3. to $22.1 milion NPA cabutton Indby to $199.3 milion and remote PAT inced by S. $152 milion Strong operating how ned to fund or growth initiative while reducing and increcing dividend payment to our holder DEAR SHAREHOLDER As only the fourth Managing Director and Chief Executive Officer in Super Retail Group's long history, I am honoured to have been appointed to the position by the Board in 2019. TOUR POWER BANDS DELIVERING CUSTOMER LOYALTY IS KEY SOUD SALES GROW Our large growing and loyal Out our power branche customer bom representa marcedir positions in attractive entre compte and growing chegorien for the organization In 2018/19 al tour brand deed Strong brand we, our focus on sold total growth can be theindore and cience and the bath we for growth and rapid growth offin culoyalty programa novel Incine contributed to continence The strength of our branch andra In loyalty club membah capacity to imprendang We now have more than milion customer concludin kay active club members customers for FY19. Our lot brands and together theneb customer trovare incred mambo more than by 2.3 percento milion and Si percent of the our to club members Looking forward, there is on improved to up from in the pportunity to deepencur proyer connection with our customer 1919 Sales Sales growth ke tarike Online sales Sm al growth growth Supercheap Auto 10406 3.45 Rebel 164 395 by improving our customer canalice to cover more on con and regur loyalty program INVESTING IN WINNING OMBETARE CAPARUTES We cu investing in our omstal capable to grow our over marathcare by providing multiple way for our customers to argo with our brands and shopping price More than percent of our online care Click Collectie that product in store and engage our customer anime pickup with a pomoccam member in the proces. This mucom we con wwwport 490 Ascend New ledend to grow our online and megole du contre be our clicks and be approach to winga wing While channel Secrylara piace, and network aplication remania yra focus, the Group's national or footprintermaand an integral part Our omni-cloturing A by focus in 2019/20 and beyond will be integrating technogy into surreal business the customer pencahough Iniciando che improved order chatton and clima undevour to deliver on even better relax year. We care to come to me uity and gender equality and care proud of the diverse team w have grown and the organation 3 percent of our leadership to confiled by woman whole familie representation on our Board has semained constant at pourt Advancing under diversity at all level ha prosty, in line with our target of having pecant fucherpretation Board and nice management level by 2000 A dhe painting note in 2018/19 was the creation of an underpeyman of our manger The thesome problem we uncond with our Set Upbeam memban 2017/18. We found that will mano were conect, not all overtime houn world war paid according to the General Industry Award Additionally, some wcances required under the word war not paid. They are both Underpayments that we deeply regut and we polog to our team members who have banatucted to ensure ongoing compliance who introduced an increased level of governance, including Guru audits of our employment cagement care confident that we have the control in place to pick up the sort of anomalies that may be from time to mainan trgonoon of our A SUSTAINABLE In 1919, we continued to make progress towards adopinga integrach to our bus paration. One example the launch of our readigonsible Sourceg hogam which promos fair wing conditions cantity and improvement outcomes in our supply chaine to page 1. Further detalon Delivery of a pence for come Integration of our chan Simpel operating model Improving our customer Lang our powerful branch While there onde changing and competitions recargoment that Super hatal Croup ho bright future. We own for iconic heard with dire more positions in growing high- involvement style como cute sport and outdoor In the coming year we will leverage the ongoition with a specie focus on building brands that are cu powerful as the proches greater digitor poly chain Integration and camoms real experience With the hinc con penance managem focused on its cution, we are wel positioned to impire our customer to live the point of share and create value for our shartlc AN ENGAGED AND CAPABLE TEAM We know that providing in solution and experiences for ons on an engaged capable and possionem This with providing scale working in anticomplected to report that in 2016 our local Recordable Injuryequency Recrec by mouthon 10 per cent with a mult of 1434. This is a plecang outcome and we will SCH Macpos 1308 735 245 1 Cor.com VOLG Mac Advanced Audio Anthony Group Managing Director and Chiw butto CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the period ended 29 June 2019 2019 Sm 2018 Sm Notes 2.710.4 2.B 2,713.2 2,570.4 8.5 2,579.9 (1,488.2) (1.415.5) CONTINUING OPERATIONS Revenue from continuing operations Other income from continuing operations Total revenues and other income Expenses Cost of sales of goods Other expenses from ordinary activities seling and distribution - marketing occupancy administration Net finance costs Share of net loss of associates and joint ventures Total expenses (347.8) (81.9) (215.5) (366.4) (21.3) (2.6) (2.523.7) (3323) 183.91 (2130) (339.4 (17.71 11.0) 12.402.8) Pront before income tax 189.5 176.1 13 (50.3) 139.2 127.3 Income tax expense Profit for the period Pront for the period is attributable to: Owners of Super Retail Group Limited Non-controlling interests 139.3 (0.1) 139.2 129.3 11.0 127.3 OTHER COMPREHENSIVE INCOME Items that may be reclassified to profit or loss Changes in the fair value of cash flow hedges Exchange differences on translation of foreign operations Other comprehensive income for the period, net at fax 18 18 (6.3) 2.7 (3.6) 6.2 10.9) 5.3 135.6 132.6 Total comprehensive Income for the period Total comprehensive income for the period is attributable to: Owners of Super Retal Group Limited Non-controlling interests 135.7 (0.1) 133.6 11.0) 132.6 1356 Earnings per share for profit attributable to the ordinary equity holders of the Company Basic earnings per share Diluted comings per share 16 16 70.6 69.9 65.0 64.5 CONSOLIDATED BALANCE SHEET As at 29 June 2019 2019 2018 Restated Sm 2017 Restated Sm Notes Sim ASSETS Curent assets Cash and cosh equivalents Trade and other receivables Inventories Current tax asset Derivative financial instruments Total current assets 15.2 23.8 545.5 19.9 42.6 481.5 7 B 13 15 7.5 37.6 560.2 1.9 2.8 610.0 6.8 591.3 544.0 9 264.5 750.1 Non current assets Property, plant and equipment Intangible assets Other financial assets Total non-current assets Total assets ID 23/6) 267.9 894.2 6.9 1,169.0 1,779.0 270.4 891.6 9.3 1,1713 1.762.6 1,014.6 1.558,6 362.7 3.4 3423 3.0 LIABILITIES Current Mobiles Trade and other payables Interest-bearing liabilities Current tax lloblities Provisions Derivative financial instruments Total current labies 11 12 13 14 15 - 107.3 6.2 479.6 253.7 2.6 1.5 96.3 3.1 357.2 105.0 1.5 461.4 Non.current lobos Trade and other payables Interest-bearing liabilities Deferred tax liabilites Provisions Total non-current abies Total liabilities 11 12 13 14 49.5 390.8 23.4 19.7 20.1 21.7 44.2 3980 7.1 21.5 470.8 828.0 526.0 483.4 963.0 987.4 NET ASSETS 816.0 775.2 730.6 EQUITY Contributed equity Reserves Retained earrings Capital and reserves attributable to owners of Super Retail Group Limited Non-controlling interests TOTAL EQUITY 17 18 IB 542.3 8.2 265.9 816.4 (0.4) 5423 10.3 223.3 775.9 542.3 3.5 186.7 732.5 11.9 730.6 816.0 775.2
