Analyst Meeting
1Q’16 Results
May 3, 2016
Analyst Meeting 1Q16 Results May 3, 2016 Disclaimer This - - PowerPoint PPT Presentation
Analyst Meeting 1Q16 Results May 3, 2016 Disclaimer This Presentation (The Presentation) has been prepared by Home Product Center Plc. The Presentation is private and confidential and is being made available for information purposes only.
Analyst Meeting
1Q’16 Results
May 3, 2016
This Presentation (The “Presentation”) has been prepared by Home Product Center Plc. The Presentation is private and confidential and is being made available for information purposes only. Accordingly, this Presentation may not be copied, reproduced or redistributed to any other person save with the prior written permission of the Company. By accepting this presentation, each recipient accepts and agrees with the Company that it will comply with, and that it will procure that any other person to whom it provides this Presentation complies with, the Terms set out herein and all applicable laws and regulations. This Presentation is not a prospectus and is not intended to and does not constitute offer or solicitation
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Disclaimer
Our product range covers 40,000 items. We operate 77 stores nationwide, providing complete services as One Stop Shopping to attain highest customer satisfaction. HomePro is the leading home improvement retailer in Thailand. The HomePro’s stock is traded on the Stock Exchange of Thailand (SET - hmpro, BB - hmpro:tb).
Agenda
Business Outlook 1Q’16 Financial Results
Holds 99.99% of total shares Objective to manage rental space and provide utilities services to tenants.
Market Village Co., Ltd.
Holds 100% of total shares Objective to operate a retail business in Malaysia.
Home Product Center (Malaysia) Sdn. Bhd.
Holds 99.99% of total shares Objective to operate retail business under trade name “Mega Home”.
Mega Home Center Co., Ltd. DC Service Center Co., Ltd.
Holds 99.99% of total shares Objective to operate the warehousing and distribution.
5
Corporate Group Structure
Home Product Center Plc. : Operating HomePro in Thailand
Footprint in Thailand
as at March 31, 2016
6
Greater Bangkok : 22 stores Upcountry : 55 stores Greater Bangkok : 2 stores Upcountry : 5 stores Malaysia : 1 store
P & L Summary
7
Unit : MB
1Q’16
% on Sales
1Q’15
% on Sales
VAR
% Growth
Sales
13,631.5
100.0
12,280.3
100.0
1,351.2 11.0
Other Income
980.3
7.2
816.0
6.6
164.3 20.1
Total Revenue
14,611.8
107.2
13,096.3
106.6
1,515.5 11.6
COGS
10,219.0
75.0
9,105.8
74.1
1,113.2 12.2
SG&A
3,181.8
23.3
2,936.6
23.9
245.2 8.4
Total Expenses
13,400.8
98.3
12,042.4
98.1
1,358.4 11.3
EBIT
1,211.0
8.9
1,053.9
8.6
157.1 14.9
Financial Exp.
118.4
0.9
136.3
1.1
Tax
226.4
1.7
184.0
1.5
42.4 23.1
Net Profit
866.2
6.4
733.7
6.0
132.5 18.1
Depreciation
708.7
5.2
632.5
5.2
76.2 12.0
EBITDA
1,919.7
14.1
1,686.4
13.7
233.3 13.8
Sustainable Sales Growth
12,280 13,632 34,542 40,007 47,965
1Q16
Unit : MB 1Q16
FY. 52,513 8
Rising Other Income
9 rental income from the additional HomePro’s leasable areas. promotion with vendor as well as service income from “Home Care” program.
Unit : MB
2,428 2,719 3,244 3,730 980 476 533 340 447
7.0% 6.8% 6.8% 7.1% 7.2% 6.6% 7.2% 1Q16 1Q15 1Q16
Others Rent & service %of Retail Sales
11.9% 31.6%
SG&A Expenses
7,781 9,245 11,119 12,283 3,182 2,558 2,723 379 459 22.5% 23.1% 23.2% 23.4% 23.3% 23.9% 23.3%
1Q16 1Q15 1Q16
Sale Related Admin Exp %of Retail Sales
6.5% Unit : MB 21.0%
1Q16, SG&A increased by 8.4% compared to the same period last year. The increases are mainly from Depreciation and Salary. However, SG&A % to sales has marginally improved, resulting to the decrease from 23.9% in 1Q'15 to 23.3%. 10
1Q16, GP has decreased to 25.0% due to change of the merchandising mix of HomePro sales and the blended margin of HomePro business and Mega Home business which has a lower gross margin structure. 11
Profitability Ratio
Unit : %
10.5 10.3 9.6 9.4 8.9 14.1 14.5 14.3 14.6 14.1 26.0 26.6 26.0 25.7 25.0 1Q16 %EBIT %EBITDA %GP
GP EBIT EBITDA
NPAT & EPS
12 1Q16 NPAT growth by 18.1% and NPAT % to sales increased from 6.0% to 6.4%. EPS in 2015 taking impact at ratio of 15:1 paid in May 2015 (Final). Unit : MB 734 866 2,671 3,068 3,313 7.7% 7.7% 6.9% 6.7% 6.0% 6.4%
1Q'16
NPAT %on Sales
0.28 0.25 0.25 0.27 0.06 0.07
1Q'16
NPAT EPS
FY. 3,499
13
Balance Sheet at a Glance
Unit : MB
31 Mar 16 31 Dec 15
VAR
%
Cash & Deposit
3,071.7 2,698.1 373.6 13.8
Inventory
8,836.4 8,364.8 471.7 5.6
Land Building & Equipment
33,787.9 33,383.4 404.5 1.2
Others
2,194.7 2,544.8
Total Assets
47,890.8 46,991.0 899.8 1.9
Financial Debt
14,370.3 14,377.1
Account Payable
12,718.8 12,773.3
Others
3,000.9 2,938.0 62.9 2.1
Total Liabilities
30,090.0 30,088.4 1.6 0.0
Paid-Up Capital
13,151.2 13,151.2
646.3 646.3
4,003.3 3,105.1 898.2 28.9
Total Equities
17,800.9 16,902.6 898.2 5.3
Agenda
Business Outlook 1Q’16 Financial Results
Source : The center for economic and business forecasting, UTCC. 15
CPI CCI
2 4 6 8 10 50 60 70 80 90 100 110
CCI Inflation RateThailand Consumer Confidence Index (CCI) fell to 73.5 in March, compared with 74.7 in February and 75.5 in January. Consumers were concerned over the effects of the drought on agricultural sector, together with the softening confidence in global economy, China’s slowdown, higher domestic fuel prices, and high cost of living. However, the government has launched out several rounds of stimulus measures to boost up domestic spending and sought to accelerate infrastructure projects . Additionally, the government has announced tax breaks of up to Baht 15,000 per person during the Thai New Year in mid-April for spending on hotels and food in Thailand.
Thai Consumer Confidence down since January
Continuous margin expansion through Private Label
The main objective of the development and selection of private brand products is an adherence to build up value-added to customers. Therefore, the core element of private brand products is quality and
select products with quality to continuously provide worthiness to customers. To date, we have a total of 36 private brands and over 1,000 items.
16
2016 Store Expansion Plan
Chaiyapruk Rojana
2016 No. of New stores
Total (stores) 80 10 - 11 2
Our stores in 2016
Malaysia
1Q Chaiyapruk 26 Feb 2Q Rojana 29 Apr Rama 3 (Relocation) May 3Q 1
store
1
store
4Q 2
stores
1-2
stores
1
store
5 3-4 1
Rama 3 - relocated from Future Mart
18 18
Future Mart
Grand opening in May 2016
Rama 3
Apart from HomePro store, the second branch of “Bike Club” is also open at Rama 3.
2Q’16 Marketing Highlight
Save & Get up to 40% discount
Spend THB 10,000 to THB 24,999 :
Shop Label No.5 energy saving products
Get THB 1,000 Saving-Energy coupon Spend THB 25,000 : Get THB 1,500 Saving-Energy coupon
Get up to 21% discount
when pay with participating credit cards
Get up to THB 4,990 free gifts*
Subject to the Company’s condition
Contact us
Tel +662-832-1416 Email : IR@homepro.co.th