DOCUMENT TITLE SUBTITLE
NAME SURNAME
dd.mm.yy
22.12.19
ANALYST / INVESTOR MEETING Business & Performance Updates FY 2019
2 March 2020
DOCUMENT TITLE SUBTITLE NAME SURNAME dd.mm.yy 22.12.19 ANALYST - - PowerPoint PPT Presentation
DOCUMENT TITLE SUBTITLE NAME SURNAME dd.mm.yy 22.12.19 ANALYST / INVESTOR MEETING Business & Performance Updates FY 2019 2 March 2020 This presentation and all other information, materials or documents provided in connection therewith
NAME SURNAME
dd.mm.yy
22.12.19
2 March 2020
This presentation and all other information, materials or documents provided in connection therewith are being furnished to you solely for your information and may not be photocopied or reproduced or redistributed to any other person in whole or in part at any time except with a prior written consent of Central Retail Corporation Public Company Limited (“CRC”). These materials have been prepared by CRC solely for your information and for use at a presentation for this meeting. No representations, warranties, or undertakings, express or implied, are made by CRC, or any of its respective members, directors, officers, employees, agents, affiliates, advisers or representatives or any other person as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of, the information or opinions presented or contained therein. By attending this presentation, you represent and warrant that you are entitled to attend such presentation in accordance with the restrictions set forth below and agree to be bound by the restrictions contained herein. Any failure to comply with these restrictions may constitute a violation of applicable laws. The contents of these materials have not been verified by CRC and it may not contain all material information concerning CRC. None of CRC, or any of its respective directors, officers, employees, agents, affiliates, advisers or representatives accepts any liability whatsoever in negligence or otherwise for any loss howsoever arising, whether directly or indirectly, from any use of the information or opinions presented or contained therein or otherwise arising in connection therewith. The information and opinions presented or contained therein are provided as at the date
notice and the accuracy of the information is not guaranteed. CRC and/or persons connected with it may have acted upon or used the information and opinions herein contained, or the research or analysis on which it is based, before its publication. It should be understood that subsequent developments may affect the information and opinions presented or contained therein, which neither CRC nor its advisers or representatives are under an obligation to update, revise or affirm. This presentation may contain “forward-looking statements” including opinion, forecasts or estimates as well as “unaudited forecasts” and “projected financial information” (“Forward-Looking Statements”), which (i) address hypothetical situation, (ii) are based on current expectations and projections about future events, or (iii) include all statements other than statements of historical facts, as well as predictions, projections and forecasts of the economy or economic trends of the markets. Such Forward-Looking Statements are not necessarily indicative of the future or likely performance or projection of CRC and involve known and unknown risks, uncertainties and other important factors beyond the control of CRC that could cause the actual results, performance or achievements or industry results to be materially different from future results, performance or achievements expressed or implied by such Forward-Looking Statements. Such Forward-Looking Statements are based on forecasts and projections from CRC. Forward-Looking Statements are not guarantees of future performance and speak only as at the date of this presentation, and none of CRC, or any of its respective directors, officers, employees, agents, affiliates, advisers or representatives intends or has any obligation or undertakes to supplement, amend, update or revise any Forward-Looking Statements as a result of new information or to reflect future events or circumstances, except as required under applicable laws. You should not place undue reliance on these Forward-Looking Statements. Past performance is not necessarily indicative of future performance. No part of this presentation and the information contained in these materials shall constitute or form part of any advertisement of, commitment or offer or invitation of any offer for sale or subscription of or solicitation or recommendation or invitation of any offer to buy or subscribe for, any securities of CRC in any jurisdiction nor shall it or any part of it form the basis of or be relied
No consideration has been given to particular investment objectives, finances or needs of any recipient. This presentation should not be treated or relied upon as advice relating to legal, taxation, financial, accounting, investment matters or advice or a credit or other evaluation of the offering for any securities of CRC. By attending this presentation you (i) acknowledge that you will be solely responsible for your own assessment of the market and the market position of CRC, and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of CRC’s business and (ii) agree to be bound by the foregoing terms. CRC and its representatives are not responsible for any costs or expenses incurred by the recipient.
2
3
4
Leading Multi-format, Multi-category Omni-channel Retailing Platform Across Attractive Growth Markets
+8% YoY Growth
+3% YoY Growth
+11% YoY Growth
Across Thailand, Vietnam, Italy and Malaysia
16.9 Mn T1 members: +6% YoY Growth
In Thailand and Vietnam
*Normalized EBITDA THB 22,455 Mn and Normalized NPAT 9,016 Mn
+84% YoY Growth
ITALY VIETNAM THAILAND
5
Leading Multi-format, Multi-category Omni-channel Retailing Platform Across Attractive Growth Markets Business Segment 2019 SALES (THB Mn) 2019 EBITDA* 2019 Store1 Network
NSA (sqm) NLA (sqm)
*Normalized to exclude items: Gain (loss) on disposal assets/investment/entities, FX Gain (loss), Employee benefit, Insurance claim Normalized EBITDA THB 22,455 Mn and Normalized NPAT 9,016 Mn
144,940 Mn / 74% 35,691 Mn / 18% 14,537 Mn / 7% 18,335 Mn / 82% 2,415 Mn / 10% 1,895 Mn / 8% 1,934 stores
(51/77 provinces)
2.6 Mn sqm / 88% 0.4 Mn sqm / 73% 132 stores
(40/63 provinces)
9 stores
(8 cities)
0.3 Mn sqm / 10% 0.15 Mn sqm / 27% 0.1 Mn sqm / 2%
6
Leading Multi-format, Multi-category Omni-channel Retailing Platform Across Attractive Growth Markets COUNTRY 2019 SALES (THB Mn) 2019 EBITDA* 2019 Store1 Network
NSA (sqm) NLA (sqm)
*Normalized to exclude items: Gain (loss) on disposal assets/investment/entities, FX Gain (loss), Employee benefit, Insurance claim Normalized EBITDA THB 22,455 Mn and Normalized NPAT 9,016 Mn
64,280 Mn / 33% 80,492 Mn / 41% 50,583 Mn / 26% 12,116 Mn / 54% 5,805 Mn / 26% 4,535 Mn / 20%
601 stores
1.3 Mn sqm / 42% 0.4 Mn sqm / 67%
1,248 stores 234 stores
0.6 Mn sqm / 21% 0.2 Mn sqm / 33% 1.1 Mn sqm / 37%
FOOD FASHION
4Q 2019 and FY2019
7 *Normalized to exclude items: Gain (loss) on disposal assets/investment/entities, FX Gain (loss), Employee benefit, Insurance claim
Unit: THB Million 2018 2019 % YoY 4Q 2018 4Q 2019 % YoY Sales 180,614 195,355 8% 47,171 52,986 12% Rental & service income 7,828 8,654 11% 1,923 2,242 17% Other income 18,178 18,728 3% 4,399 8,176 86% Total revenue 206,620 222,737 8% 53,493 63,405 19% COGs 129,937 142,352 10% 33,212 38,713 17% SG&A 60,160 62,652 4% 16,328 16,801 3% EBITDA 25,123 25,814 3% 6,334 10,233 62% NPAT 11,105 12,359 11% 2,338 6,500 178% EBITDA* (normalized) 22,052 22,455 2% 6,608 6,608
8,648 9,016 4% 2,558 2,943 15% Gross profit from sales % 28.1% 27.1% 29.6% 26.9% EBITDA* margin % 10.7% 10.1% 12.4% 10.4% NPAT* margin % 4.2% 4.0% 4.8% 4.6%
Sales
8
SALES BY SEGMENT, THB Mn SALES BY GEOGRAPHY, THB Mn
% YOY 2018-19
+28% +2% +3%
+41% +4% % YOY 2018-19 78,299 80,492 62,765 64,280 39,550 50,583 2018 2019 180,614 195,355 +8% +8% 139,315 144,490 25,371 35,691 15,643 14,537 2018 2019 180,614 195,355 +4% +44% Constant THB +10%
Hardline Fashion Food
Sales
9
SALES BY SEGMENT, THB Mn SALES BY GEOGRAPHY, THB Mn
% YOY 2018-19
+28% +2% +3%
+41% +4% % YOY 2018-19 78,299 80,492 62,765 64,280 39,550 50,583 2018 2019 180,614 195,355 +8% +8% 139,315 144,490 25,371 35,691 15,643 14,537 2018 2019 180,614 195,355 +4% +44% Constant THB +10%
Hardline Fashion Food 22% Mix 35% 43% 26% Mix 33% 41% 9% Mix 14% 77% 7% Mix 18% 74%
EBITDA normalized
10
EBITDA* BY SEGMENT, THB Mn
5,617 5,805 12,774 12,115 3,661 4,535
2018 2019
Food Fashion Hardline
% YOY 2018-19 22,052
EBITDA* BY GEOGRAPHY, THB Mn
+2% +24%
+3% 22,455 18,088 18,335 1,991 2,415 2,055 1,895
2018 2019
Food Fashion Hardline
+2%
+21% +1% 22,052 22,455 % YOY 2018-19
*Normalized to exclude items: Gain (loss) on disposal assets/investment/entities, FX Gain (loss), Employee benefit, Insurance claim
+4% Constant THB +4% Constant THB
Hardline Fashion Food
EBITDA normalized
11
EBITDA* BY SEGMENT, THB Mn
5,617 5,805 12,774 12,115 3,661 4,535
2018 2019
Food Fashion Hardline
% YOY 2018-19 22,052
EBITDA* BY GEOGRAPHY, THB Mn
+2% +24%
+3% 22,455 18,088 18,335 1,991 2,415 2,055 1,895
2018 2019
Th VN IT
+2%
+21% +1% 22,052 22,455 % YOY 2018-19
*Normalized to exclude items: Gain (loss) on disposal assets/investment/entities, FX Gain (loss), Employee benefit, Insurance claim
+4% Constant THB +4% Constant THB
Hardline Fashion Food 17% Mix 58% 25% 20% Mix 54% 26% 9% Mix 9% 82% 8% Mix 11% 81%
Thailand
12
% YOY 2018-19 139,280 144,940 0.7% 1.0% 1.8% 3.2% 2016 2017 2018 2019
Omni-channel % to Sales
+6%
+8% +4% 53,207 52,842 46,523 49,330 39,550 42,768 2018 2019
Sales, THB Mn
Food Fashion Hardline +2% +1% SSSG % 41% 89% 84%
Hardline Fashion Food
Thailand – Retail Plaza (RBS Lifestyle Center and Tops Plaza)
13
3,131 3,458 2018 2019
Rental Income, THB Mn
27 28 2018 2019
+10% 370,461 398,572
2018 2019
Net Leasable Sqm & Occ %
+8% 98% 97%
25,092 27,650 2018 2019
Sales, THB Mn
14% 14% 6% 8% 2018 2019
SSSG %
Vietnam Food
14
Note: Big C acquisition in 2016; performance did not record on annual basis
VND 1,095 1,169 2018 2019
Rental income, THB Mn
142,329 145,966 2018 2019
Leasable Sqm & Occupancy rate1 %
+10% +15% Constant THB THB +7% +13% Constant THB 89% 90%
Italy
15
15,643 14,537 2018 2019
Sales, THB Mn
11 10 9 2017 2018 2019
Genoa closed Nov Padova closed Feb Rome Galleria closed Mar/ Rome Tritone
Nov
6% 12% 5% 2% 2018 2019
SSSG %
THB EUR
+4% Constant THB
16
SG&A Expenses, THB Mn & % of Total revenue 2019 SG&A Breakdown %
60,160 62,653 29.1% 28.1% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2018 2019 Personnel, 35% Rental & Service, 16% Depreciation , 15% Utilities, 7% Marketing, 6% Others*, 20% SG&A expense increased driven by
severance pay obligations pursuant to the provisions of a new Labor Protection Act)
*Other items are such as Maintenance, Professional and management fees, Shrinkage, and computer expenses
+4%
17
177,357 187,022 110,030 146,063 67,327 40,959 2018 2019
Total assets Total liabilities Total equity
THB Mn Net Debt/Equity 0.5x 1.2x Net Debt/EBITDA 1.2x 2.0x 0.4x 1.1x Post IPO*
*Adjusted to give effect to issue of 1,331,000,000 Primary Shares at an offering price of THB 42 per share and accounting for payment of underwriting fees, advisory
Capital Structure Ceiling Leverage
by 5.4%, primarily due to the consolidation of Nguyen Kim business
Equity change from dividend payment
18
19
Drive profitable growth focusing on omni-channel, portfolio expansion, efficiency & strategic M&A
ITALY ITALY VIETNAM VIETNAM THAILAND THAILAND
Accelerate profitable and sustainable growth via Omni-channel Platform Accelerate profitable and sustainable growth via Omni-channel Platform Expand our network through our ecosystem of Property, Food and Non-Food Expand our network through our ecosystem of Property, Food and Non-Food Drive superior & luxury Lifestyle Experience Drive superior & luxury Lifestyle Experience
(Superstore, Supermarket: urban & rural) to serve different customer segments nationwide
BigC hypermarkets into lifestyle GO! malls
(HBA, lifestyle, home improvements, family entertainment zone, etc)
anticipating trends / customer needs and modernizing the experience through attractive product mix for locals & tourists
(Milan, Mini-Flagships: Florence, Roma Fiume)
2020
experience as first mover
upcountry
formats and brands
to increase LFL EBITDA
Growth
CAGR
Growth
CAGR Growth
CAGR Growth
CAGR
20
1.1
1.9 0.9 0.5
1.8
2.8 2.1 0.7
3.2
5.5 3.1 1.0 TOTAL Fashion Hardline Food
2017 2018 2019
Omni-channel sales growth 2018 vs. 19 Omni-channel % sales contribution to net sales
+110% Fashion +58% Hard line +51% Food
+200% +195% +160% +140%
Top performing categories1
7.6 (exc. TWD) 5.8
21
Track record in Converting Offline Customers to Omni-channel with Increased Sales (1)
1,385 1,451 217
2018 2019
654 936 279
2018 2019
511 554 121
2018 2019
+21% +86% +32% +8% +43% +8%
39,333 New online customers 45,316 New online customers
218 248 593
2018 2019
+286 % +14%
215,133 New online customers 28,648 New online customers
Sales in THB Mn in 2019 vs 2018
22
Ladkrabang (Q4) Patong (Q1) Record sales in Jan 2020 Huge success well above budget
23
5 new stores:
24
8% 6% 9% 7% Non-food Food
2019 PL penetration % to Net Sales
Non-Food brands Food brands
12% 14% 8% Total Non-food Food
% Private Labels (PL) sales growth 2018 vs. 19
25
Market share gained in 2019 and Leadership in Price image & Product variety strengthened Continued to build strong relationships with local communities and the Government
26
27
SALES (in EUR) Q4: +72% vs. LY I FY: +54% vs. LY RELAUNCHED in OCT 2019
28
2018 2019 2018 2019 Dept Store - TH 70 73 Retail Plaza - TH 27 28 Dept Store - IT 10 9 Specialty - Sports 192 219 Brandshops 284 300 Supermarket - TH 298 218 Big C/GO! mall - VN 32 33 Convenience store - TH 1,090 968 Food - VN 61 62 Electronic - TH 105 108 Electronic - VN 63 70 DIY - TH 51 56 TOTAL 2,224 2,083 TOTAL 59 61 NLA ('000 sqm) 513 545 Growth %yoy 15% 6% Occupancy rate 93% 94% # of Stores # of Retail Plazas FASHION FOOD HARDLINE
29
Opportunities Actions Capture local shoppers opportunity and high growth categories
shopping abroad, more to spend locally
groceries, air-purifiers, beauty essentials Capture Online/home shopping acceleration opportunity
less willing to go to store: Web-shopping and Chat & Shop Rebase our cost structure: Existing stores productivity
HO rationalization, Marketing spend effectiveness, Purchasing & Organizational synergies Strengthen our value/ price perception
range reviews, visual merchandising), continue to increase the penetration of PL/ DIP
1 1 2 2 3 3 4 4
30
63% 32% 5% By Country
Thailand Vietnam Italy
31
Projected CAPEX 2020: THB 18 Billion
60% 30% 10%
New stores Stores renovation Supporting assets & systems
By Type of Use
2020 Major Store Expansion & Renovation
Major Store
Major Renovation
32
Thailand’s GDP growth
growth is 1.8-3.3x Thailand GDP
maintained (2018, 2019 ROE’s: 16%, 23%)
33