Opportunity day 4Q March 2017

Transcription

1 Opportunity day 4Q16 21 March 2017

2 Disclaimer The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for share in Robinson Department Store Public Company Limited ( ROBINS and shares in ROBINS, shares ) in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever. This presentation may include information which is forward-looking in nature. Forward-looking information involve known and unknown risks, uncertainties and other factors which may impact on the actual outcomes, including economic conditions in the markets in which ROBINS operates and general achievement of ROBINS business forecasts, which will cause the actual results, performance or achievements of ROBINS to differ, perhaps materially, from the results, performance or achievements expressed or implied in this presentation. This presentation has been prepared by ROBINS. The information in this presentation has not been independently verified. No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness ofthe information and opinions in this presentation. None of the ROBINS or any of its agents or advisers, or any of their respective affiliates, advisers or representatives, shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. This presentation is made, furnished and distributed for information purposes only. No part of this presentation shall be relied upon directly or indirectly for any investment decision-making or for any other purposes. This presentation and all other information, materials or documents provided in connection therewith, shall not, either in whole or in part, be reproduced, redistributed or made available to any other person, save in strict compliance with all applicable laws. 2

3 Agenda Key Achievement 2016 Business Strategy

4 AGENDA KEYACHIEVEMENT2016 ROBINSON

5 2016KeyAchievement Continue to expand lifestyle center and focus on renovation of existing malls RENTAL INCOME +15.4%(yoy) Product mix: Increase sale portion of house brands and International brands GROSS MARGIN +40 BPS (yoy) Mall expansion in Department Store in Nakornsrithamrat -Lifestyle center (Shopping mall) in Lopburi 2 STORES 5

6 NewStore2016 ROBINSON NAKORNSRITHAMRAT2 (Department Store) Size OpeningDate 17,000SQM 28-JUL-2016 What s NEW Playland for kids Centralise cashier ROBINSON LIFESTYLE LOPBURI (Shopping mall) Size OpeningDate 32,000SQM 16-Dec-2016 What s NEW Integrated layout Water Park Solar Power Roof 6

7 NewRetailFormat 1Below Department Store Rama 9 At the core of the 1Below new retail format is the ability of millennial customers to shop seamlessly underwear, swimwear, footwear, Ath-leisure and sports collections whilst benefits from latest technology initiatives. 7

8 AGENDA BUSINESSSTRATEGY ROBINSON

9 OurObjective To Profitably G ow our Market Share To continue to drive sales To improve our gross margin To manage our cost base Investing for our future growth Making Retail More Than Just Shopping 9

10 OurCompanyStructure Robinson Department Store Robinson Lifestyle EAT SHOP PLAY Brand Management Robins Vietnam Tier 1 : Rama 9 Udornthani Chiangmai Fashion Island Srinakarin Chiangrai Ubolratchathani 2 Bangrak Rayong Tier 1 : Chanthaburi Ratchaburi Trang Saraburi Roi Et Prachinburi SamutPrakan Mukdaharn Burirum City, Hanoi Ho Chi Min City Jungceylon Khonkaen Rangsit Tier 2: Sriracha Hadyai Chonburi Bangna Rattanatibet Nakornsrithamrat2 Phitsanulok Sukhumvit Suratthani Ayutthaya Phuket Mahachai (Nov-17) Tier 3: Lampang Bangkhae New: Maesod Tier 2: Srisaman Nakornsithamrat 1 Kampaengpetch Kanchanaburi (Dec-17) Chachoengsao Suphanburi Sakonnakorn Surin Lopburi Petchburi (May-17) 22* NOTE: The tier of store reflects the size of the opportunity (customer spending power and number of transactions). *Robinson will manage 22 Food Courts in 2018 (1 in Bangrak and 21 in Robinson Lifestyle) 10

11 OurBusinessStrategy Drive Sales Improve GP Manage Cost Future growth Focus on our SIGNATURE Categories Reallocating space from underperforming categories to new and higher performing categories and services Footwear Unisex/Denim Lingerie Kids Luggage Home Health & Beauty Focus on Playing into TRENDS 11

12 ToImproveOurGrossMargin Drive Sales Improve GP Manage Cost Future growth Brands Management Introducing new pricing THB 1,000 SQM. trial store in 2017 Just Value launch 2017 Stand alone shop 2017 Bt1.1bn in Sales +4 Shop-in-shop in Robinson 12

13 ToImproveOurGrossMargin Drive Sales Improve GP Manage Cost Future growth Brands Management One of the largest family footwear retailers in the world with more than 4,400 stores in more than 35 countries shop-in-shops in Robinson +5 free-standing stores 13

14 ToImproveOurGrossMargin Drive Sales Improve GP Manage Cost Future growth Brands Management Over 300 stores across 14 countries US$ 1 bn in U.A.E Retails over 70,000 unique products every year shop-in-shops in Robinson +1 free-standing store 14

15 ToImproveOurGrossMargin Drive Sales Improve GP Manage Cost Future growth GREAT VALUE concept Every Day Good Values Self Selection New Ethical Sourcing 2017 Aggressively expand shop-in-shops in Robinson 15

16 ToManageOurCostBase Drive Sales Improve GP Manage Cost Future growth Invest where customer sees/ feels the difference Headcount existing, new stores and head office structure Centralized Cashier Realize savings on new and renovated stores Solar Power Roof Operational Efficiencies VDO Conference Centralized Cashier Self Selection 16

17 (F) 2018(F) 2019(F) 2020(F) StrongMarketPenetration Drive Sales Improve GP Manage Cost Future growth No. of stores 25 UPC 30 BMR Total stores stores stores stores Thailand 11 in BMR Dept:10 Lifestlye:1 11 in BMR Dept:9 Lifestlye:2 11 in BMR Dept:9 Lifestlye:2 28 in UPC Dept:15 Lifestlye:13 31 in UPC Dept:16 Lifestlye:15 33 in UPC Dept:17 Lifestlye:16 Note: BMR : Bangkok Metropolitan Region UPC : Upcountry 17

18 Toinvestforfuturegrowth Drive Sales Improve GP Manage Cost Future growth ROBINSON LIFESTYLE (Shopping mall) PETCHABURI Size Opening 35,000SQM 2Q17 What s NEW Local and Regional trade Over 1,400 car parking Drive-Thru Fitness Center & Tutor Schools 5 Screens Cinema Tenants 18

19 Toinvestforfuturegrowth Drive Sales Improve GP Manage Cost Future growth ROBINSON LIFESTYLE KAMPEANGPHET (Shopping mall) Size Opening 28,000SQM 4Q17 ROBINSON MAHACHAI (Department Store) Size Opening 15,000SQM 4Q17 19

20 MakeRetailMoreThanJustShopping Entertain the customer first and sell later Segway for staff to use for better customer service at 9 Co-promotion between brands and F&B service in-store 20

21 MakeRetailMoreThanJustShopping Vending Machine Ear Piercing Service by Claire s In-store Fashion Workshop Free Wi-Fi and Mobile ChargingService CoffeeShop 21

22 2017StrategicDirections NET SALE Growth at range 5-6% yoy Keydriverforgrossmarginexpansion 1) Product mix : increase house brand and international brand 2) Control trade discount 2017Investment CAPEX of Bt.4.1bn 3 new stores, renovation of existing stores and others 22

23 APPENDIX

24 FinancialPerformance Total income breakdown 28, ,187 Rental income 9.8% Other income 3.8% 2016 Total income Bt30,187m Department Sale 2015 Totalincome Department Sale Rental income Other income* 2016 Totalincome 86.4% GROSS MARGIN +0.4% 24.9% (2016) 24.5% (2015) EBITDA +15.1%(yoy) Bt5,669m NET PROFIT +30.7%(yoy) Bt2,815m * Rental income is including interest income

25 NetSale(Bt m) Net Sale (Bt m) Same-store sale growth (SSG) +3.5% YoY 23,896 25,185 26, % 0.1% 0.0% +1.3% YoY Q15 3Q16 4Q16 7,258 6,237 7, % -1.8% Q15 3Q16 4Q16-5.8% 25

26 GrossProfit AndOperatingProfit Gross profit (Bt m) and margin (%) Operating profit (Bt m) and margin (%) 24.5% 24.5% 24.9% 24.6% 24.3% 25.1% +5.5% YoY +21.8% YoY +14.5% YoY Excl one time item +32.6% YoY +8.9% YoY Excl one time item 5,843 6,163 6, % 8.7% 10.1% 9.4% 8.0% 12.0% 3, % YoY 2,234 2,510 1,789 1,517 1, , Q15 3Q16 4Q Q15 3Q16 4Q16 Gross profit (Bt m) Gross profit margin (%) *Gross profit margin = (Net sale CGS)/net sale Operating profit (Bt m) Operating margin (%) *Operating profit margin = (Total income-cog-sg&a )/Total income One time item in other income had one time item of Bt49m had one time item of Bt239m 26

27 SG&AExpense- keepcostsundercontrol SG&A (Bt m) and SG&A/Sale (%) 2016 SG&A breakdown 23.8% 25.1% 7, % 7, % 26.4% 23.9% Others 18% Personnel 24% 6,328 Marketing 8% Utilities 15% 2,037 1,902 2,057 D&A 27% Rent & Lease 8% Q15 3Q16 4Q16 SG&A (Bt m) SG&A/ sale of good 27

28 EBITDA EBITDA (Bt m) and EBITDA margin (%) +15.1% YoY +11.4% YoY Excl one time item +20.8% YoY +8.3% YoY Excl one time item 18.9% 20.8% 16.3% 17.2% 5, % 16.8% 4,950 4,343 1,477 1,206 1, Q15 3Q16 4Q16 EBITDA (Bt m) EBITDA margin (%) 28

29 CoreNetProfitandNetprofit Core net profit (Bt m) and Core profit margin (%) Net profit (Bt m) and Net profit margin (%) +31.3% YoY +20.8% YoY Excl one time item +45.8% YoY +12.5%Excl one time item +30.7% YoY +22.5% YoY Excl one time item +44.0% YoY +18.3%Excl one time item 11.7% 9.3% 9.3% 8.5% 5.7% 5.9% 7.4% 6.6% 5.6% 7.2% 7.5% 2, % 1,523 1,702 2,235 1,927 2, , Q15 3Q16 4Q Q15 3Q16 4Q16 Core net profit* (Bt m) Core profit margin (%) Net profit (Bt m) Net profit margin (%) *Core profit margin = (Net profit-equity income)/total income *Net profit margin = Net profit/total income 29

30 CapitalStructureRemainSolid ,197 13,040 14,451 3,582 2,654 1,922 2,117 2,255 3, Cash and Current investment (Bt m) Interest bearing debt (Bt m) Equity (Bt m) Net D/E (times) 30

31 DividendPolicy Our dividend payout policy is at the rate of approximately 40% of profit arising from ordinary business (after corporate income tax) % 50.3% 51.8% 51.6% 53.9% (Excl one time items) 49.3% 60.0% 50.0% % % % * ๕ 10.0% Dividend per share (Bt) Dividend payout ratio (%) Note: Dividend of baht 1.25 per share is subject to the approval of Annual General Shareholder s Meeting on 28 April,

32 THANKYOU ROBINSON Investor Relations Department Robinson Department Store Public Company Limited Tel Ext