Analyst Presentation 3 rd Quarter 2008 Result November 13, 2008 - - PowerPoint PPT Presentation
Home Product Center PCL. Analyst Presentation 3 rd Quarter 2008 Result November 13, 2008 Home Product Center Plc. HomePro is the leading home improvement retailer in Thailand. Our products range cover 60,000 items. We operate 33 stores
November 13, 2008
Analyst Presentation
Home Product Center PCL.
3rd Quarter 2008 Result
The HomePro’s stock is traded on the Thailand Stock Exchange (SET:Hmpro). HomePro is the leading home improvement retailer in Thailand. Our products range cover 60,000 items. We operate 33 stores nationwide, providing complete services as One Stop Shopping to attain highest customer satisfaction.
Home Product Center Plc.
HomePro “Total Home Solution”.
1
Financial Result Business Outlook
Agenda
Service Mind.
2
Financial Result
3
17 Bangkok Stores 16 Upcountry Stores
Phuket Had Yai Pattaya Nakornratchasima 2 Chieng Mai Hua-Hin Samui Khonkan Phitsanulok Udonthani Suratthani Chonburi Rayong Ayutthaya
(as at September 30,2008)
HomePro store network covers nationwide.
4 Kabi
Footprint in Thailand
Unit : MB
9.0
35.1
3.4
387.7
3.2
422.8
RENTAL & SERVICE
4.1 1.5 1.2 6.7 99.4 22.4 77.0 106.1 2.7 100.0
% on Sales
4.6 2.1 0.7 7.5 98.7 22.5 76.3 106.2 3.0 100.0
% on Sales
(29.0)
(38.8) 133.7 94.8
INTEREST
69.5
117.3 168.7 286.0
TAX
29.2
225.6
997.7
EBIT
15.2
1,740.1 11,449.2 13,189.3
TOTAL EXPENSES
16.3
420.5 2,580.9 3,001.5
SG&A
14.9
1,319.6 8,868.2 10,187.8
COGS
16.1
1,965.7 12,221.3 14,187.0
TOTAL REVENUE
%G
VAR 9M’07 9M’08
30.9
95.8 310.6 406.4
OTHER INCOMES
147.2 1,834.8
31.3
469.7 616.8
NET PROFIT
15.9
11,523.0 13,357.8
SALES
5
P&L Summary
3,781 4,200 3,784 4,468 3,958 4,689 14,224 12,212 9,814 2004 2005 2006 2007 9M'08
Unit : MB
+18%
YoY
+18% +11%
15,944
C A G R = 1 7 . 7 % C A G R = 1 7 . 7 % 6 9M’08, sales growth 15.9% YoY while 3Q’08 growth of 18.5%.
Sustainable Sales Growth
Increase in Other Income as contributed by increasing in Rental, Service and Advertising Fees. 7
220 122 109 423 388 411 880 1,072 114 147 102 311 406
1.7% 2.2% 5.7% 6.1% 6.2% 5.3% 3.4% 6.2% 6.7%
2003 2004 2005 2006 2007 9M'07 9M'08 3Q'07 3Q'08 Rent & service Others %on Sales
Unit : MB
18.7% 18.7%
+31% +9% +44% +12%
27.8% 27.8%
Rising Other Income
1,737 1,040 860 3,001 2,581 2,278 3,116 3,585 1,235
18.3% 17.7% 22.2% 22.4% 22.5% 21.7% 18.7% 21.9% 22.5%
2003 2004 2005 2006 2007 9M'07 9M'08 3Q'07 3Q'08 SG&A %on Sales
Unit : MB
16.3% 16.3% 20.9% 20.9%
Stable SG&A Expenses
8 Rise in SG&A in baht term as a result of operational expenses of new stores, in particular, Salaries, Rental & Service, Energy cost and Depreciation.
GP increased as a result of improving in product mix, especially increase in sales
7.5% 4.5% 5.7% 6.3% 7.2% 7.1% 6.7% 6.7% 7.8% 24.2% 23.7% 23.1% 21.1% 23.0% 21.6% 21.2% 22.8% 23.0% 2003 2004 2005 2006 2007 9M'07 9M'08 3Q'07 3Q'08
EBIT on Sales %GP
GP EBIT
9
Upward GP & EBIT
381 230 164 617 470 505 601 710 207
3.1% 3.9% 4.9% 4.1% 4.6% 4.1% 4.1% 4.2% 4.5%
2003 2004 2005 2006 2007 9M'07 9M'08 3Q'07 3Q'08
NPAT %on Sales
3 1 . 3 % 3 1 . 3 % 40.2% 40.2%
Unit : MB
Net Profit
10 9M’08 NPAT growth by 31.3% and NPAT % to Sales increased over 9M’07.
207 381 505 601 710 617 470 230 161 0.27 0.51 0.37 0.58 0.58 0.09 0.32 0.24 0.12 2003 2004 2005 2006 2007 9M'07 9M'08 3Q'07 3Q'08 Net Profit EPS
Note : 1. Equity raising 960 MBht in DEC 2006 at ratio 1:1 of 1 Bht /share.
11
33.3% 33.3% 30.7% 30.7%
Unit : MB
EPS
Unit : MB
0.4 8.6 1,924.9 1,933.5
PAID-UP CAPITAL
(21.0) (621.0) 2,953.2 2,332.3
FINANCIAL DEBT
10.1 323.4 3,206.4 3,529.7
ACCOUNT PAYABLE
13.3 238.3 1,791.2 2,029.5
OTHERS
(0.7) (59.3) 7,950.8 7,891.5
TOTAL LIABILITIES
11.3 288.4 2,547.6 2,836.0
INVENTORY
(0.1) (6.4) 8,339.6 8,333.2
Land Building & Equipment
6.7 290.1 4,323.5 4,613.6
TOTAL EQUITIES
14.7 270.4 1,842.9 2,113.2
RETAIN EARNINGS
2.0 11.1 555.7 566.8
SHARE PREMIUM
1.9 230.8 12,274.3 12,505.1
TOTAL ASSETS
% VAR 31 Dec 07 30 Sep 08
1.5 17.0 1,152.1 1,169.1
OTHERS
(230.8) (68.3) 1.9 12,274.3 12,505.1 TOTAL LIABILITIES & EQUITIES (29.1) 235.1 166.8
CASH & DEPOSIT
12
B/S Summary
14
3.2 3.0 6.6 19.1 20.3 11.0 21.8 21.1 5.8 6.6 7.2 5.5 4.0 4.4 5.9 18.4 18.9 31.3 26.1 24.4 16.8 12.1 22.1 17.4 14.0 13.5 11.5 16.1 21.8 17.8 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008F
Net Profit
ROA ROCE ROE
Unit : %
9M’08 Annualized
ROA – ROE – ROCE
16
Business Outlook
Gradually declining Consumer Confidence Index since Apr 08
70 80 90 100 110 120
J a n
A p r
J u l
O c t
J a n
A p r
J u l
O c t
J a n
A p r
J u l
O c t
J a n
A p r
J u l
O c t
J a n
A p r
J u l
O c t
J a n
A p r
J u l
2 4 6 8 10
CCI Inflation Rate
CPI CCI
S e p
CCI fell to a 10-month low in September, eroded by growing political uncertainty, the global financial crisis and slowing export growth. Furthermore, the survey also said a weaker Thai baht and the higher cost
Source : The center for economic and business forecasting, UTCC. 17
Regulation Update
18
The Committee of Wholesales and Retail Business has been appointed in Aug-08 to draft the law under the Ministry of Commerce before seeking approval by the Cabinet. If it is passed by the Cabinet, National Legislation Assembly will continue further for approval process.
Upcoming Retail and Wholesales Business Act
Margin expansion through House Brand
19 More than 1,000 products available only at HomePro.
20
Building Platform for Growth
Store Expansion Plan
2008
HomePro Store the End of 2008
BKK 17 Stores Upcountry 16 Stores Total 33 Stores
Ayutthaya Stores Opening Schedule
Chieng Mai 2 29th MAR Ayutthaya 8th MAR
Chieng Mai 2
Krabi 5th JUL
Krabi
Existing network expansion
Rajapruk Hua-Hin
Expanding rental area for driving other income growth. 22
HomePro EXPO 8
23
Expo 8 with a competition for home lovers “HomePro Champion” final round for the prize with the concept of “Small space, Great idea”.
The leading position among home improvement retailers in Thailand. Pursuing its store expansion strategy Well-accepted brand name
2008 A 2005 BBB+ 2004 BBB+ 2003 BBB
Credit Rating Update
2008
2006 A-
24
K.Rakpong , K.Renuka Tel+662-832-1416 Email : IR@homepro.co.th
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