Analyst Meeting 1H14 Results August 5, 2014 Disclaimer This - - PowerPoint PPT Presentation

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Home Product Center Public Company Limited

August 5, 2014

Analyst Meeting

1H’14 Results

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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.

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Disclaimer

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The HomePro’s stock is traded on the Thailand Stock Exchange (SET

• hmpro, BB - hmpro:tb).

HomePro is the leading home improvement retailer in Thailand. Our products range cover 60,000 items. We operate 66 stores nationwide, providing complete services as One Stop Shopping to attain highest customer satisfaction.

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4

Agenda

1H’14 Financial Results Business Outlook

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Footprint in Thailand

as at June 30, 2014

Greater Bangkok

Samutsakhon Ubonrachathani

Upcountry

2 Phuket 2 Had Yai Pattaya 3 Nakornratchasima 2 Chiang Mai Hua-Hin Samui Khonkaen Phitsanulok Udonthani Suratthani Chonburi Rayong Ayutthaya Krabi NakhonSrithammarat Nakhonpathom Chachoengsao Roi-et Suphanburi Lopburi Sakonnakhon Trang Burirum Nakhonsawan Ratchaburi Chathaburi Chumphon Prachinburi Phare Kanchanaburi Chaiyaphum Phuttamonthon Phetchabun Loei Chiang Rai

HomePro 21 Stores Mega Home 1 Store HomePro 45 Stores Mega Home 3 Stores

Lampang Prachuapkhirikhan Surin

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P & L Summary

Unit : MB

1H’14

% on Sales

1H’13

% on Sales

VAR

%G

Sales

23,102.1

100.0

19,106.7

100.0

3,995.3 20.9

Other Income

1,512.4

6.6

1,217.6

6.4

294.8 24.2

Total Revenue

24,614.4

106.6

20,324.3

106.4

4,290.1 21.1

COGS

17,041.6

73.8

14,072.2

73.7

2,969.4 21.1

SG&A

4,392.1

19.0

3,609.1

18.9

783.1 21.7

Total Expenses

21,433.7

92.8

17,681.2

92.6

3,752.5 21.2

EBITDA

3,180.7

13.8

2,643.1

13.8

537.6 20.3

Depreciation & Amortization

1,065.1

4.6

742.4

3.9

322.6 43.5

EBIT

2,115.6

9.2

1,900.7

9.9

215.0 11.3

Financial Expenses

206.9

0.9

102.2

0.5

104.7 102.5

TAX

390.2

1.7

376.8

2.0

13.5 3.6

Net Profit

1,518.5

6.6

1,421.7

7.4

96.8 6.8

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19,107 23,102

24,073 28,363 34,542 Unit : MB

H’

FY. 40,112

Sustainable Sales Growth

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1H14, sales growth 20.9% YoY, driven by same store sales 5.3%, 16.5% by sales of new stores, EXPO, project sales, and Mega Home.

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Rising Other Income

Unit : MB 32% 26%

2,139 2,428 1,218 1,512 736 929 375 494 482 583 214 271 7.5% 7.0% 6.8% 6.4% 6.5% 6.0% 6.4% 1H'14 1H'13 1H'14 2Q'13 2Q'14

Others Rent & service %on Sales

26% 21%

FY. 2,718

• The increase in Other Income was driven by the advertising, in-store promotion with vendors and

service income received from customers.

• Rental & Service Income increased by the rental income of retail space in HomePro and Market Village.

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SG&A Expenses

1H’14 SG&A represented 23.6% to sales comparing with 22.8% of the same period of last year. The main increase in absolute amount is due to the increase in salaries, cost of transportation, cost

• f service, utilities expenses, depreciation, marketing expenses, and pre-operational cost of

HomePro in Malaysia and Mega Home. 9 6,384 7,781 4,351 5,457 3,741 4,712 1,913 2,440 611 746 327 397 22.5% 22.5% 23.3% 22.8% 23.6% 23.0% 23.6% 1H'14 1H'13 1H'14 2Q'13 2Q'14

Sale Related Admin Exp %on Sales

28% 26%

FY. 9,350

22% 21% Unit : MB

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GP & EBIT

Unit : %

10.0 10.7 10.5 10.3 9.9 9.2 10.0 9.2 25.0 25.7 26.0 26.8 26.3 26.2 26.9 26.4 1H'13 1H'14 2Q'13 2Q'14

%EBIT %GP

10 GP decreased as a result of the change of product-mix in Homepro business and lower gross margin structure of Mega Home business.

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Unit : MB

1H’14 NPAT growth by 6.8%, and NPAT % to Sales decreased from 7.4% to 6.6%. 1,422 1,519 1,638 2,005 2,671 6.8% 7.1% 7.7% 7.6% 7.4% 6.6%

1H14

NPAT %on Sales

0.28 0.29 0.28 0.38 0.13 0.14

1H14

NPAT EPS

NPAT & EPS

EPS in 2013 taking full dilution impact of stock dividend (interim) at the ratio of 6:1 paid in November 2013. EPS in 1H14 taking dilution effect impact at ratio of 7:1 paid in May 2014 (Final). FY. 3,068

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Balance Sheet at a Glance

Unit : MB

30 Jun 14 31 Dec 13

VAR

%

Cash & Deposit

396.5 807.5 410.9 50.9

Inventory

8,162.1 6,505.6 1,656.5 25.5

Land Building & Equipment

29,141.9 26,561.2 2,580.3 9.7

Others

2,033.9 2,067.4 33.5 1.6

Total Assets

39,734.1 35,941.7 3,792.4 10.6

Financial Debt

11,030.1 9,787.1 1,243.0 12.7

Account Payable

12,113.1 11,056.7 1,056.4 9.6

Others

2,509.0 2,381.5 127.5 5.4

Total Liabilities

25,652.2 23,225.3 2,426.9 10.4

Paid-Up Capital

10,959.5 9,589.6 1,369.9 14.3

Share Premium

646.3 646.3

• Retain Earnings

2,476.1 2,480.5 4.4 0.2

Total Equities

14,081.9 12,716.4 1,365.5 10.7

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Agenda

1H’14 Financial Results Business Outlook

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

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CPI CCI

• 6
• 4
• 2

2 4 6 8 10 50 60 70 80 90 100 110 120 CCI Inflation Rate

The Consumer Confidence Index (CCI) in June rose to 75.1, the highest in 8-month since November 2013, as political uncertainties had been reduced and the economy is set for recovery. The National Council for Peace and Order took control of national administration and as a result consumer confidence had risen in the overall economic and political situation in Thailand. Consumption is expected to steadily grow in the second half, and payments for farmers' pledged rice should increase nationwide purchasing power. The improvement was seen across the different components e.g. present assessment, future expectations, and economic view. Still, more work needs to be done about the economy.

Consumer Confidence Index picked up since May

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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.

Continuous margin expansion through Private Label

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3Q’14 Marketing Highlight

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18th Anniversary

28 August – 24 September

HomePro Champion 8

Decorating room in multi-function style with limited time and budget by using HomePro’s products to win prizes worth Baht 400,000. The final round will be set on November in HomePro Expo 20 at IMPACT, Muang Thong Thani.

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Q & A

Contact us

Tel+66 2832 1416 Email : IR@homepro.co.th