Investment Proposition Unpacked

1. Quality Leadership

Guided by a seasoned and highly skilled management team, Super Group combines industry expertise with strategic vision. The Groupโ€™s strong leadership ensures efficient decision-making and effective execution of growth strategies.

This statement is supported by the following:

Super Group is led by a diverse Board of directors with experience and expertise relevant to the Groupโ€™s strategy and operating context. Under their leadership, the Group has been able to adapt to changing circumstances and thrive in a volatile business landscape. The Boardโ€™s composition reflects the appropriate mix of knowledge, skills, experience, diversity and independence. The Board comprises five Non-Executive Directors and two Executive Directors. Read more about the Board.
The Board is ably supported by a team of highly experienced executives whose exceptional strategic thinking and understanding of industry and market dynamics enable Super Group to successfully navigate complex challenges.

2. Leading in essential industries

Mobility and logistics solutions play a critical role in todayโ€™s interconnected world. Sharply focused on these critical and resilient industries, Super Groupโ€™s solutions and services constitute the backbone for efficient and effective movement of goods and people across multiple geographies, sectors and markets โ€“ all of which provide ample room for expansion and sustained growth.

This statement is supported by the following:

Super Group provides leading logistics and mobility solutions across sub-Saharan Africa, the UK, Europe and Australasia. The Groupโ€™s work has spanned multiple industries and markets for over four decades. With an enviable track record for navigating demanding and complex environments, this expertise translates into significant insight for our clients.

3. Expanding globally

Super Group continues to expand its geographic footprint internationally. By growing offshore earnings, investors gainย exposure toย growing markets in Australasia, the UK and Europe.

This statement is supported by the following:

Operations and stakeholders span multiple geographies, allowingย the Group to collaborate, innovate and executeย to theย highest standard. The Groupโ€™s broad reach enables it to anticipate and mitigate challenges as well as identify and realise opportunities inย an increasingly interconnected and interdependent world.
The proportion of Super Groupโ€™s 2023 revenue derived from its non-South African businesses is 54% (2022: 52%), having grown from 16% in 2013. The proportion of Super Groupโ€™s 2023 operating profit derived from its non-South African businesses is 56% (2022: 53% normalised), having grown from 50% in 2013.

4. Purposeful diversification

The Groupโ€™s businesses span diverse geographies, industries and markets, reducing overall volatility and providing a more stable longโ€‘term investment. A deliberate strategy to optimise returns while minimising potential risks, this diversification also positions Super Group to better leverage emerging trends, adapt to changing market conditions and realise opportunities inherent in volatile markets.

This statement is supported by the following:

The Group operates in 24 countries compared to 10ย countries inย 2013. The Group comprises three divisions:
  • Supply Chain
  • Fleet Solutions
  • Dealerships
Read more about the divisionโ€™s brands, products and services.
Our diverse client base spans multiple industries, including automotive, industrial, retail, food and beverage, pharmaceutical, construction, mining, hospitality, tourism, quick service restaurants, oil and gas.
The combined benefits of Super Groupโ€™s size, diversity, scale and experience translate into significant advantage for clients.

5. Technological expertise

Super Group distinguishes itself through technological prowess. By leveraging leading-edge innovations, the Group stays ahead of digital advancements. This capability enables the business to anticipate change, reduce costs, enhance efficiency and gain a competitive edge.

This statement is supported by the following:

Super Group has tapped into the transformational power of technology โ€“ leveraging IT and digitisation to increase productivity, improve efficiency, reduce costs and build capabilities. From training to solution design, technology has become an essential part of the Groupโ€™s DNA and competitive advantage. The Group optimises the conversion of big data to business intelligence to better predict and leverage shifts in demand andย anticipate changing customer needs.
Customised digital and IT solutions unlock the value inherent in data, enable agile decision-making, and provide critical visibility and flexibility. Super Groupโ€™s proprietary software, Cella, enables innovative supply chain solutions that help principals meet objectives and leverage growth opportunities. With a focus on integration and visibility, this customised, scalable technology unlocks the intelligence inherent in big data โ€“ delivering efficiency and costย savings.
The Groupโ€™s ability to navigate volatility confirms the value of the investments made in technology. In 2023, R223 million was invested in state-of-the-art infrastructure and technology. Digital technology has fundamentally changed the way people buy cars, and the Dealerships division continues to innovate and invest in this area to simplify and enhance the customer experience.
Drivers receive rigorous training, with technology deployed as a highly effective tool for monitoring and guiding driver behaviour. The Groupโ€™s investment in technology ensures vigilance, readiness and resilience in the face of prolific cyber threats.
Super Group is fully blockchain-enabled and can actively add its own blockchain to a range of systems to ensure end-to-end data integrity. Blockchain technology is also increasingly included in the Groupโ€™s client solutions. Machine learning is used to improve and calculate customer turnaround times, thereby improving route calculations and the accuracy of estimated times of arrival shared with clients.

6. Successful track record

With a solid history of both organic and acquisitive growth, Super Group consistently outperforms comparable peers in delivery of earnings growth. Investors can rely on the Groupโ€™s proven ability to drive sustainable growth.

The graphs below demonstrate the Groupโ€™s financial track record since 2014, highlighting the performance post-Covid:

As illustrated below, the Groupโ€™s financial performance for the year well exceeds pre-Covid levels.

An integrated approach to acquisitions

Super Group consistently applies the following principles in evaluating and concluding acquisitions:

Strategic fit: Any acquisition must align with the Groupโ€™s strategic goals and objectives. It should complement existing business andย enhance competitive advantage.

Financial performance: Evaluation goes beyond analysing the numbers. It involves assessing the efficiency of financial management, cost structures, investment strategies and overall financial health. Underlying issues โ€“ such as excessive debt, declining margins, or inefficient operational practices โ€“ that may affect the long-term prospects of the acquisition are identified and considered.

Track record and outlook: Assessing an organisationโ€™s track record provides valuable insights into historical performance, stability and the ability to generate consistent revenue, profitability and market share growth over time. This analysis helps to identify patterns, trends and potential risks that could impact the success of an acquisition and provides a basis for estimating future performance and value.

Talent and leadership retention: The Group prioritises talent and leadership retention throughout the acquisition process to maintain critical expertise, preserve institutional knowledge and sustain a high-performing workforce.

Risk management: Potential legal, financial, operational and reputational risks associated with a potential acquisition are identified andย assessed.

Cultural compatibility: Factors such as work environment, values and management style are carefully considered in light of their impactย on integration and performance.

7. Financial strength

With a focus on sustainable growth, Super Group has the financial strength, acumen and proven ability to explore and leverage growthย opportunities.

This statement is supported by the following:

A rigorous focus on costs and effective management of working capital. The Group remains highly cash-generative and continues to explore local and international acquisition opportunities that meet the Groupโ€™s strategic requirements and create shareholder value.
Excellent cash-generation capabilities, with operating cash flow up by 18.9% to R8.7 billion (2022: R7.3 billion). Group HEPS increased by 23.3% to 469.4 cents (2022: 380.7 cents) and EPSย increased by 24.9% to 472.9 cents per share (2022: 378.5 cents).
The Groupโ€™s RNOA (after tax) is 10.2% (2022:ย 10.3%) and the Groupโ€™s WACC was 7%ย (2022: 6.3%). The net asset value per share increased by 20.5% from R38.40 as at 30 June 2022 to R46.27 as at 30 June 2023.

The Groupโ€™s financial management approach encompasses the following key principles and considerations:

  • Strategic financial planning, investment and capital allocation
  • Continuously monitoring performance
  • Rigorously focusing on costs and asset management, and managing working capital effectively
  • Strengthening cash-generation capabilities
  • Meeting debt covenants and ensuring sufficient debt facilities
  • Pursuing value-accretive opportunities
  • Managing risks, compliance and governance

The Group uses several key indicators to assess its financial health and provide insight into profitability, liquidity, leverage and market value. These ratios include:

  • Profitability ROI, ROIC, RNOA, ROE, EBIT, margin ratio, EPS, HEPS
  • Leverage Net debt-to-equity ratio, net debt-to-equity excluding IFRSย 16 and securitised warehouses
  • Liquidity Current ratio, net working capital, cash conversion ratio
  • Market value Price-to-earnings ratio, EPS and dividend yield

    • The graph below shows the growth trajectory of the Groupโ€™s net asset value per share over the last 10 years:

    8. Shared value creation

    Super Group is committed to shared value creation. In line with its belief that people, planet and prosperity are interconnected, the Groupโ€™s growth strategy encompasses economic, environmental and social dimensions. This approach ensures sustainable growth while benefiting stakeholders, society and the environment.

    Sustainability is entrenched in the Groupโ€™s ways of thinking and working and is increasingly being integrated into its strategies, business models, systems, policies and procedures.

    This statement is supported by the following:

    R6.8 billion
    in wealth (wages and benefits) distributed to employees

    (2022: R5.8 billion)

    More than 3% of payroll cost
    invested in skills development

    (2022: >3%)

    R2.7 billion paid in
    government taxes

    (2022: R3 billion)

    R26.4 million invested in corporate social investment (CSI)

    (2022: R21.1 million)

    20 007 people employed in 24 countries

    (2022: 14 934 people)

    62.57% of goods and services procured from South African suppliers who are accredited B-BBEE Level 3 (or better) contributors

    (2022: 60%)

    Value-added statement

    Measures of the financial wealth created by Super Group for various stakeholders include the amount spent on the cost of goods and services provided, the remuneration paid to its employees, money paid to providers of equity and debt, taxes paid to government, and capital reinvested in the Group.

      Group CEOโ€™s Report
    A Responsive Group Strategy