Retail capital ri presentation august 2013

Business challenges, strategies and solutions

August 2013

David LewisRetail Capital

• Current & Future Environments

• Appropriate Business Strategies

• Survey Findings

• Alternative Solution

• Questions

TOPICS

• Significant rises in input costsUtilities, imports, food, labour, fuel…….Rental escalations from long term leases

CURRENT ENVIRONMENT

• Significant rises in input costsUtilities, imports, food, labour, fuel (75%)Rental escalations from long term leases

• Increased consumer pressureImpact to discretionary spendingReduced ability to ‘pass on’ cost increasesChanges in spending patterns – more discerning customers

• Sustained margin pressure

• Challenging and difficult trading environment

CURRENT ENVIRONMENT

• Clem Sunter

• Continuous period of historical growth

• Prolonged period of no / low growth V, W, U or L…………Continued austerity and pressure on consumersPockets of excellence, tourism (China), gateway to Africa

• Appropriate business strategiesValue for moneyInnovationCheaper alternative

FUTURE ENVIRONMENT

VALUE FOR MONEY, INNOVATION & CHEAPER ALTERNATIVE

* Interim results August 2012 Press Release 22 October 2012 / 1st Quarter results 2013

Famous Brands:Revenue up 17% and Operating profit up 12%*

CEO Kevin Hedderwick: “Our solid results are attributable to continuous innovation at the front end of the business, and enhancements at the back end of the business, which served to drive the growth”

“Tashas is recession proof; it continues to amaze us….”“produced astonishing growth, turning in a 22% rise in sales versus the prior year….”

“Value is the new black (competitive trading environment and general economic downturn has trained consumers to look for value - which they perceive as price, quality, relevance and convenience)”


Spur Corporation:Revenue up 40% and diluted EPS up 35%*

Chief Executive Pierre van Tonder: “An aggressive promotions strategy and increasing customer loyalty resulted in the group growing it’s market share”

“the Family Card has grown to over 1.4 million and accounts for 29% of local restaurant turnover. The loyalty programme has grown the average spend per head. Card holders spend on average 20% more than non-members”

* Interim results to December 2012 Press Release 7 March 2013


Scooters Pizza (Taste Holdings):Financial growth of over 30% after taking the strategic decision to refresh the brand*

Christo Calitz (Food Division CEO):“We are delighted with the success we have had with the brand refresh, and it undoubtedly proves that it is important for brands to remain relevant in the public eye and that committing to this principle will ultimately result in considerable financial gain”

* Hotel & Restaurant 12 March 2013

• Clem Sunter – Hostex 2013

• Continuous period of historical growth

• Prolonged period of no/low growth V, W, U or L …..Continued austerity and pressure on consumers

• Appropriate business strategiesValue for moneyInnovationCheaper alternative

• Business change requires investmentRequirement for fundingAccessibility of credit / capital

FUTURE ENVIRONMENT

RETAIL CAPITAL – SURVEY – BIGGEST CHALLENGE

RETAIL CAPITAL – SURVEY – GREATEST FRUSTRATIONS WITH BANKS

RETAIL CAPITAL – SURVEY – MOST VALUED FEATURES

BUSINESS CASH ADVANCE

Most valued features:

• Flexible repayment Payments linked to business turnover

• No security required None – can be used for any purpose

• Quick turnaround Funds available within 10 working days

• Price All costs are transparent and agreed up front

• Approval Over 80% of businesses qualify

• Established in US (1998), Europe (2007), Asia Pacific (2009), Australia (2010)

• First SA advance in August 2011 - Total advances of over R200m to date

• High quality testimonials and reference sites - Over 70% re-advance

• Offices in Johannesburg, Cape Town and Durban

• Agents in Bloemfontein, Lepalale and George

• Ideal for business types with relatively high card sales

A SELECTION OF OUR CUSTOMERS

THANK YOU

www.retailcapital.co.za