Opportunity day 4Q16 21 March 2017
21 March 2017 Disclaimer The information contained in this - - PowerPoint PPT Presentation
21 March 2017 Disclaimer The information contained in this - - PowerPoint PPT Presentation
Opportunity day 4Q16 21 March 2017 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
- Disclaimer
The information contained in this presentation is for information purposes only and does not constitute an
- ffer 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
- utcomes, 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 of the information and opinions in this presentation. None
- f 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.
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Agenda Key Achievement 2016 Business Strategy
AGENDA
KEYACHIEVEMENT2016
ROBINSON
2016KeyAchievement
Continue to expand lifestyle center and focus on renovation
- f existing malls
Product mix: Increase sale portion of house brands and International brands Mall expansion in 2016
- Department Store in Nakornsrithamrat
- Lifestyle center (Shopping mall) in Lopburi
RENTAL INCOME
+15.4%(yoy)
GROSS MARGIN
+40 BPS (yoy)
2 STORES
5
Size 17,000SQM OpeningDate 28-JUL-2016 Size 32,000SQM OpeningDate 16-Dec-2016
NewStore2016
ROBINSON
NAKORNSRITHAMRAT2
(Department Store)
What’s NEW
- Playland for kids
- Centralise cashier
ROBINSON LIFESTYLE
LOPBURI
(Shopping mall)
What’s NEW
- Integrated layout
- Water Park
- Solar Power Roof
6
7
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.
NewRetailFormat
1Below Concept @Robinson Department Store Rama 9
AGENDA
BUSINESSSTRATEGY
ROBINSON
OurObjective
9
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
Robinson Department Store Robinson Lifestyle EATSHOP 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
ROBINS @Royal City, Hanoi ROBINS @Crescent, Ho Chi Min City
Ayutthaya Jungceylon Phuket Khonkaen Mahachai Rangsit
(Nov-17)
Tier 2: Tier 3: Sriracha Lampang Hadyai Bangkhae Chonburi Bangna Rattanatibet New:
Nakornsrithamrat2
Phitsanulok Sukhumvit Suratthani
26 27 6 2
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) Maesod Tier 2: Srisaman
Nakornsithamrat 1 Kampaengpetch
Kanchanaburi
(Dec-17)
Chachoengsao Suphanburi Sakonnakorn Surin Lopburi Petchburi (May-17)
22*
18 20
OurCompanyStructure
10
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
Drive Sales Improve GP Manage Cost Future growth
OurBusinessStrategy
Focus on Playing into “TRENDS”
11
12
- Brands Management
Introducing new pricing 60 – 300THB 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
Drive Sales Improve GP Manage Cost Future growth
ToImproveOurGrossMargin
Brands Management
One of the largest family footwear retailers in the world with more than 4,400 stores in more than 35 countries
2017
- +3 shop-in-shops in Robinson
- +5 free-standing stores
13
Drive Sales Improve GP Manage Cost Future growth
ToImproveOurGrossMargin
14
Brands Management
- Over 300 stores across 14 countries
- US$ 1 bn in U.A.E
- Retails over 70,000 unique products every year
2017
- +3 shop-in-shops in
Robinson
- +1 free-standing store
Drive Sales Improve GP Manage Cost Future growth
ToImproveOurGrossMargin
“GREAT VALUE” concept
- Every Day Good Values
- Self Selection
- New Ethical Sourcing
2017
- Aggressively expand
shop-in-shops in Robinson
Drive Sales Improve GP Manage Cost Future growth
ToImproveOurGrossMargin
15
ToManageOurCostBase
16
Drive Sales Improve GP Manage Cost Future growth
Operational Efficiencies
VDO Conference Centralized Cashier Self Selection
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
2012 2011 2013 2014 2015 2016 2017(F) 2018(F) 2019(F) 2020(F) 25 39 42 UPC 30 BMR 34
- No. of stores
2014 39 stores 11 in BMR
Dept:10 Lifestlye:1
28 in UPC
Dept:15 Lifestlye:13
Total stores
Thailand
2015 42 stores 11 in BMR
Dept:9 Lifestlye:2
31 in UPC
Dept:16 Lifestlye:15
2016 44 stores 11 in BMR
Dept:9 Lifestlye:2
33 in UPC
Dept:17 Lifestlye:16 Note: BMR : Bangkok Metropolitan Region UPC : Upcountry
17
44 +2 47 +3 50 +3 53 +3 56 +3 Drive Sales Improve GP Manage Cost Future growth
StrongMarketPenetration
Size 35,000SQM Opening 2Q17
- What’s NEW
Local and Regional trade Over 1,400 car parking Drive-Thru Fitness Center & Tutor Schools 5 Screens Cinema
18 Tenants
ROBINSON LIFESTYLE (Shopping mall)
PETCHABURI
Toinvestforfuturegrowth
Drive Sales Improve GP Manage Cost Future growth
Size 28,000SQM Opening 4Q17 Size 15,000SQM Opening 4Q17
19
Toinvestforfuturegrowth
ROBINSON
MAHACHAI
(Department Store)
ROBINSON LIFESTYLE
KAMPEANGPHET
(Shopping mall)
Drive Sales Improve GP Manage Cost Future growth
20
MakeRetailMoreThanJustShopping
Entertain the customer first and sell later
Co-promotion between brands and F&B service in-store
Segway for staff to use for better customer service at 1Below @Rama 9
21 Ear Piercing Service by Claire’s Vending Machine
Free Wi-Fi and Mobile ChargingService
In-store Fashion Workshop CoffeeShop
MakeRetailMoreThanJustShopping
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
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APPENDIX
2016 Total income Bt30,187m Rental income 9.8% Other income 3.8% Department Sale 86.4% 28,762 30,187
892 394 138
2015 Totalincome Department Sale Rental income Other income* 2016 Totalincome
2016FinancialPerformance
Total income breakdown
GROSS MARGIN
+0.4%
24.9% (2016) 24.5% (2015)
* Rental income is including interest income
EBITDA
+15.1%(yoy)
Bt5,669m
NET PROFIT
+30.7%(yoy)
Bt2,815m
24
23,896 25,185 26,073 7,258 6,237 7,353
2014 2015 2016 4Q15 3Q16 4Q16
- 5.8%
- 2.1%
0.1% 3.1% 0.0%
- 1.8%
2014 2015 2016 4Q15 3Q16 4Q16 +1.3% YoY
NetSale(Bt m)
Net Sale (Bt m)
+3.5% YoY
Same-store sale growth (SSG)
25
2,234 2,510 3,056 778 575 1,032 8.4% 8.7% 10.1% 9.4% 8.0% 12.0% 2014 2015 2016 4Q15 3Q16 4Q16
Operating profit (Bt m) Operating margin (%)
5,843 6,163 6,504 1,789 1,517 1,847 24.5% 24.5% 24.9% 24.6% 24.3% 25.1% 2014 2015 2016
- 4Q15
3Q16 4Q16
Gross profit (Bt m) Gross profit margin (%)
Gross profit (Bt m) and margin (%) Operating profit (Bt m) and margin (%)
GrossProfit AndOperatingProfit
*Gross profit margin = (Net sale – CGS)/net sale *Operating profit margin = (Total income-COG-SG&A )/Total income +32.6% YoY +8.9% YoY Excl one time item +21.8% YoY +14.5% YoY Excl one time item
+5.5% YoY +3.2% YoY
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One time item in other income
- 2015 had one time item of Bt49m
- 2016 had one time item of Bt239m
SG&AExpense- keepcostsundercontrol
6,328 2,037 1,902 2,057 23.8% 25.1% 7,231 25.0% 7,557 24.6% 26.4% 23.9% 2014 2015 2016
- 4Q15
3Q16 4Q16 SG&A (Bt m) SG&A/ sale of good
2016 SG&A breakdown SG&A (Bt m) and SG&A/Sale (%)
Personnel 24% Utilities 15% Rent & Lease 8% D&A 27% Marketing 8% Others 18%
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4,343 4,950 5,699 1,477 1,206 1,785 16.3% 17.2% 17.8% 16.8% 2014 2015 2016 4Q15 3Q16 4Q16 EBITDA (Bt m) EBITDA margin (%)
EBITDA
EBITDA (Bt m) and EBITDA margin (%)
+15.1% YoY
+11.4% YoY Excl one time item
18.9% +20.8% YoY
+8.3% YoY Excl one time item
20.8%
28
1,927 2,153 2,815 701 510 1,010 7.2% 7.5% 9.3% 8.5% 7.1% 11.7% 2014 2015 2016 4Q15 3Q16 4Q16 Net profit (Bt m) Net profit margin (%)
Net profit (Bt m) and Net profit margin (%)
+44.0% YoY
+18.3%Excl one time item
+30.7% YoY
+22.5% YoY Excl one time item
1,523 1,702 2,235 550 406 802 5.7% 5.9% 7.4% 6.6% 5.6% 9.3% 2014 2015 2016 4Q15 3Q16 4Q16 Core net profit* (Bt m) Core profit margin (%)
CoreNetProfitandNetprofit
Core net profit (Bt m) and Core profit margin (%)
+31.3% YoY
+20.8% YoY Excl one time item
+45.8% YoY
+12.5%Excl one time item *Core profit margin = (Net profit-Equity income)/Total income *Net profit margin = Net profit/Total income
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CapitalStructureRemainSolid
1,922 2,117 2,255 2,654 3,582 3,267 13,040 14,451 16,197 0.1 0.1 0.1 2014 2015 2016
Cash and Current investment (Bt m) Interest bearing debt (Bt m) Equity (Bt m) Net D/E (times)
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0.90 0.90 0.90 1.00 1.25 48.5% 50.3% 51.8% 51.6% 53.9% (Excl one time items) 49.3% 10.0% 20.0% 30.0% 40.0% 60.0% 50.0% 0.00 0.20 0.60 0.40 1.00 0.80 1.40 1.20 2.00 1.80 1.60
2012 2013 2014 2015 2016*
Dividend per share (Bt) Dividend payout ratio (%) ๕
DividendPolicy
Our dividend payout policy is at the rate of approximately 40% of profit arising from ordinary business (after corporate income tax) 31
Note: Dividend of baht 1.25 per share is subject to the approval of Annual General Shareholder’s Meeting on 28 April, 2017
Investor Relations Department Robinson Department Store Public Company Limited ir@robinson.co.thor pasuphaluck@robinson.co.th
- Tel. +662 169 2500 Ext. 4750-2