Analyst Meeting 1Q16 Results May 3, 2016 Disclaimer This - - PowerPoint PPT Presentation

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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.


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SLIDE 1

Analyst Meeting

1Q’16 Results

May 3, 2016

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SLIDE 2

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

  • f any offer in respect of securities. It does not constitute any recommendation or Investment advice,

is not intended to form the basis of an investment decision and should not be relied upon for such

  • purpose. This Presentation has not been approved by any regulatory authority. Neither the Company
  • r their respective advisers accepts any liability whatsoever arising in connection with the distribution
  • f this Presentation to recipients hereof.

This Presentation is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly to any other person or published, in whole or in part, for any purpose. No part of this presentation may be reproduced or taken or transmitted. The distribution of this presentation in other jurisdictions may be restricted by law, and persons into whose possession this presentation comes should inform themselves about, and such restrictions. By accepting this presentation you agree to be bound by the foregoing restrictions.

Disclaimer

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SLIDE 3

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).

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SLIDE 4

Agenda

Business Outlook 1Q’16 Financial Results

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SLIDE 5

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

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SLIDE 6

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

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SLIDE 7

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

  • 17.8
  • 13.1

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

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SLIDE 8

Sustainable Sales Growth

12,280 13,632 34,542 40,007 47,965

1Q16

Unit : MB 1Q16

FY. 52,513 8

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SLIDE 9
  • The increase in Other Income was mainly due to increasing joint-advertising income and in-store
  • Rental & Service Income increasing from Suvarnabhumi and Hua-Hin Market Villages well as higher

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%

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SLIDE 10

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

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SLIDE 11

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

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SLIDE 12

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

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SLIDE 13

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

  • 350.1
  • 13.8

Total Assets

47,890.8 46,991.0 899.8 1.9

Financial Debt

14,370.3 14,377.1

  • 6.8
  • 0.0

Account Payable

12,718.8 12,773.3

  • 54.5
  • 0.4

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

  • Share Premium

646.3 646.3

  • Retain Earnings

4,003.3 3,105.1 898.2 28.9

Total Equities

17,800.9 16,902.6 898.2 5.3

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SLIDE 14

Agenda

Business Outlook 1Q’16 Financial Results

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SLIDE 15

Source : The center for economic and business forecasting, UTCC. 15

CPI CCI

  • 2

2 4 6 8 10 50 60 70 80 90 100 110

CCI Inflation Rate

Thailand 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

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SLIDE 16

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

  • worthiness. In addition to the Company’s increase of variety of products, it had continued to develop 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

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SLIDE 17

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

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SLIDE 18

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.

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SLIDE 19

2Q’16 Marketing Highlight

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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

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SLIDE 20

Q & A

Contact us

Tel +662-832-1416 Email : IR@homepro.co.th