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O P P O R T U N I T Y D A Y P R E S E N T A T I O N Q 1 / 2 0 2 0 27. 02. 2020 N W N W AGEND GENDA 1. BEFORE COVID - JAN FEB 2020 PERFORMANCE 2. COVID PANDEMIC - COVID-19 BUSINESS ADAPTATION 3. AFTER COVID - NEW NORMAL 1

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SLIDE 1

O P P O R T U N I T Y D A Y

P R E S E N T A T I O N

  • 27. 02. 2020

Q 1 / 2 0 2 0

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SLIDE 2

N W N W AGEND GENDA

1. BEFORE COVID

  • JAN – FEB 2020 PERFORMANCE
  • 2. COVID PANDEMIC
  • COVID-19 BUSINESS ADAPTATION
  • 3. AFTER COVID
  • NEW NORMAL

1

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SLIDE 3

2

“Sick staff can’t work and dead customer don’t buy”

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SLIDE 4

166 176 243 362 413 95 70

7.2% 7.3% 9.1% 11.7% 12.5% 12.3% 10.3%

2015 2016 2017 2018 2019 Q1 19 Q1 20

1,198 1,258 1,356 1,595 1,786 421 356 52.1% 52.8% 50.9% 51.6% 54.4% 54.7% 52.9%

2015 2016 2017 2018 2019 Q1 19 Q1 20

2,308 2,397 2,679 3,103 3,295 774 682

  • 1,000
2,000 3,000 4,000 5,000 6,000

2015 2016 2017 2018 2019 Q1 19 Q1 20

THB mm

Revenue

6.2% 15.8%

Gross Profit

14.3% 48.7%

Net Profit

HOW COVID-19 IS IMPACTING SABINA

THB mm THB mm

  • Jan – Feb Revenue increased 8% as
  • ur yearly target.
  • Unluckily launch “Invisible Wire” on

March when the State of Emergency decree has announced to close down all the department stores to stop Covid19 widespread.

  • Almost 1,200 product counselors have

to leave the stores but start to sell directly by social commerce through self IG and Facebook with our friendly Sabina@home program.

  • High price product of “Invisible

Wire” campaign has not been sold

  • ffline in a sudden as all Stores are

closed, more discount products menu sets have been offered through online instead.

  • Self production capacity has been

scarified to make free fabric mask for employees, commodities, some government sectors and hospitals.

เอารุปเก่ามาแปะ

  • Quickly revised all expenses to

cope with the Crisis.

  • Cutting 30% marketing budget but

heavily self conveys the marketing messages through Social media.

3

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256 212 220 287 287 73 62

2015 2016 2017 2018 2019 Q1 19 Q1 20

0.1%

64 59 52 60 76 20.6 27.0

2015 2016 2017 2018 2019 Q1 19 Q1 20

1,977 2,112 2,291 2,489 2,581 585 483

2015 2016 2017 2018 2019 Q1 19 Q1 20

96 254 336 92 100

2015 2016 2017 2018 2019 Q1 19 Q1 20

Sabina Brand Revenue 72% NSR Revenue 15%

THB mm

OEM Revenue 9%

  • Covid19 has not landed UK and EU in Mar; however, the sales still went down due

to poor economic.

  • The COVID-19 pandemic is having a significant impact growth in Q1 because

part of the imported product has been delayed on February shipment.

  • Consumers are considering positive changes from traditional platform to Digital

Platform that impact in changing their lifestyle.

  • Temporally Increase 30 offline staffs to work on social commerce preparing for

April and May

THB mm THB mm

  • Jan&Feb sales still can make 8% growth according to the target but unluckily launch

“Invisible Wire” on March when the State of Emergency decree has announced to close down all the department stores to stop Covid19 widespread.

  • Almost 1,200 product counselors have to leave the stores but start to sell directly by

social commerce through self IG and Facebook.

8.6% 3.7% 163.5% 32.3% 30.3%

Sabina Export Revenue 4%

  • Covid19 has hit Thailand a month before hitting CLMV; therefore, Sabina sales still

make the high growth in Q1.

THB mm

17.4% 25.7%

PERFORMANCE

UPDATE Q1 20

4

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NEW CAMPAIGN

To register Sabina register Sabina Wireless Bra as “Invisible Wire” to be superior to the category perception. SABINA INVISIBLE WIRE

Sabina Brand

TVC : INVISIBLE WIRE

Trend Igniter Instagram brand and influencer post Photo Spin fashion photo set to target consumer to expand Visibility and product efficacy Real consumer talk about Sabina Wireless Bra

5

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Offline retailers have closed all stores due to the COVID-19 outbreak.

585 85 Stores

Store 2018 2019 Dif Department Store 80 83 +3 Discount Store 307 308 +1 Shop 100 106 +6 Traditional Trade 93 88

  • 5

Total 580 585 +5

HOW COVID-19

IS IMPACTING SABINA

6

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SLIDE 8

ONLINE SALES

The rise of online purchasing during the COVID-19 pandemic. TV 34% ONLINE 49% CATALOGUE 17%

Q1 2020

  • Urgently Increase

30 offline staffs on March 22nd to work

  • n social commerce

preparing for April and May.

7

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SLIDE 9

NEW BUSINESS

A crisis brings new opportunities and should be a trigger to explore new directions.

WIN-Masks was developed with strategic cooperation between Ministry of Higher Education, Science, Research and Innovation, Faculty of Medicine Siriraj Hospital, Thailand Center of Excellence for Life Sciences (TCELS).

CSR TIME ON MARCH BECOMES NEW BUSINESS ON APRIL-MAY AND GOING FORWARD.

At least our sewing staffs have work to do, lingerie inventory do not pile up and helping cash outflow by offering our free production capacity donated to produce fabric March for Siriraj Hospital.

8

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PERFORMANCE

UPDATE Q1 20

79 96 110 75 95 105 117 97 70

Q1 Q2 Q3 Q4

2018 2019 2020

2,397 2,679 3,103 3,295

2016 2017 2018 2019

G15.8%

Sabina Revenue Net Profit

THB mm THB mm

Q1-2019 Q1-2020 % YoY

Net Profit

95 70

  • 26%

G4% G12%

G6.2%

G-26% 9

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Financial Highlights

Solid top line growth with strong margin improvement

Strong GPM and steadily expanding EBIT margins SG&A to sales

% THB mm THB mm THB mm

Consistently growing top line Significantly expanding net profit and NPM

% YoY Growth

7% 4% 12% 16% 6%

2,308 2,397 2,679 3,103 3,295 682

2015 2016 2017 2018 2019 Q1 2020

997 1,051 1,067 1,156 1,276 274 43.4% 44.1% 40.1% 37.4% 38.7% 40.7%

2015 2016 2017 2018 2019 Q1 2020

SG&A SG&A/Sales 9.2% 9.2% 11.4% 14.6% 15.9% 13.4% 52.1% 52.8% 50.9% 51.6% 54.4% 52.9%

2015 2016 2017 2018 2019 Q1 2020

EBIT Margin GPM

166 176 243 362 413 70

7.2% 7.3% 9.1% 11.7% 12.5% 10.3%

2015 2016 2017 2018 2019 Q1 2020

Net Profit NPM

% YoY Growth

12.7% 6.1% 38.4% 48.7% 14.3%

10

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Financial Highlights

394 374 297 255 328 361 0.9 1.0 1.2 1.4 1.1 1.0

2015 2016 2017 2018 2019 Q1 2020

DIO (Days) Inventory Turnover (Times)

402 382 296 258 331 362

2015 2016 2017 2018 2019 Q1 2020

Days inventory and inventory turnover Days sales outstanding and account receivable turnover Cash conversion cycle Account payable turnover days and account payable turnover

Days

50 49 45 44 46 43 7.3 7.5 8.1 8.3 8.0 8.5

2015 2016 2017 2018 2019 Q1 2020

DSO (Days) A/R Turnover (Times)

42 41 46 41 43 42 8.7 8.9 8.0 8.9 8.4 8.6

2015 2016 2017 2018 2019 Q1 2020

A/P Turnover Days (Days) A/P Turnover (Times)

11

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Financial Highlights

Healthy balance sheet with ample debt room to raise fund whenever it is needed D/E ROA ROE EPS

Percent Percent THB/Share

7.3 7.9 10.5 14.5 14.7 13.5

2015 2016 2017 2018 2019 Q1 2020

10.3 10.3 13.3 19.4 22.4 20.2

2015 2016 2017 2018 2019 Q1 2020

1,664 1,754 1,895 1,835 1,861 1,907 552 484 492 767 1,157 1,119 0.33 0.28 0.26 0.42 0.62 0.59

2015 2016 2017 2018 2019 Q1 2020

Total Equity Total Liabilities D/E 0.48 0.51 0.70 1.04 1.19 0.20

2015 2016 2017 2018 2019 Q1 2020 12

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Stock Information and Dividends

Dividend policy is not less than 40% of normal net profit

THB

0.48 0.51 0.70 1.04 1.19 0.08 0.10 0.14 0.50 0.57 0.11 0.14 0.68 0.54 0.62

2015 2016 2017 2018 2019

EPS (Bt./share) 1st Half 2nd Half

2015 2016 2017 2018 2019 40% 47% 117% 100% 100%

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SLIDE 15

1

COVID-19 Business Adaptation

14

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SLIDE 16

Making sabina letters apart to represent social distancing during the COVID-19 pandemic.

HOW DO WE WIN OUR CONSUMERS’ HEARTS?

Consumer pay more attention to products on sales. How to safely receive underwear deliveries in the age of social distancing Activate our Brand Purpose : Stay Home Still Doomm 15

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HOW DO WE WIN OUR EMPLOYEES’ HEARTS?

Sabina Work From Home Work From Heart

Weekly communicate with all employees through internal speaker phone bringing good morals and better understanding to the crisis for both hygienic policy and financial situation. 16

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SLIDE 18

NEW BUSINESS NEW

INNOVATION

* UV Steriliser machine 17

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SLIDE 19

NEW NORMAL NEW SKILL

Seamstress sews underwear has turned to making face masks.

After "WIN-Masks" charity projects in need of donations from the public and

  • rganisations to help produce and provide necessary items for medical

Personnel , Sabina have started making our own brand “Triple Mask” with a pop-up production line.

MAGIC SILVER INNOVATION LIQUID-REPELLENT ANTI-DUST

18

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SLIDE 20

SABINA TRIPLE MASK

WITH MAGIC SILVER INNOVATION 19

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VENDING MACHINE

NEW CHANNEL

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FACESHIELD SABINA MASK

REOPENING STORES&SHOPS, MAY 17th, THE NEW HOPE BEGINS.

paying “special attention

Stop Covid-19 Policy

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REOPENING SHOP

The safety of our customers is always Sabina's most important priority.

Reserving sanitized all space from fitting rooms to window shopping. Sabina have provided hand sanitiser gel at all stores. 22

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SLIDE 24

Cashless transactions using e-money applications, credit cards or debit cards to handling physical cash to prevent spread of COVID-19.

SELF MEASUREMENT

Offering free Paper measuring tape, handy tool while shopping Lingeries. Temporarily closing all

  • ur fitting room to avoid

spreading COVID-19. The coronavirus has moved the industry away from

High-touch to Low-touch

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SLIDE 25

NEW BUSINESS

Coordinate fashion fabric mask with bra and panty.

Exclusive print made in collaboration with Julibaker and Summer 24

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SLIDE 26

Guarantee the real Sabina product counselor Product menu set Attached with talk of the town music promotion Reachable online channels

have changed as a consequence of COVID 19

Lazada Top Brand Award

SHOPPING BEHAVIORS

More consumer behaviors changes to buying online during Covid-19 pandemic. 25

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SLIDE 27

Live commerce: “See now, buy now” LIVE COMMERCE

What are the

  • pportunities?

26

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2,400 1,400 1,550 1,845 1,758 1,631 1,900 1,400 1,450 1,617 1,618 1,591 800 1,100 1,200 1,148 1,153 1,199 5,100 3,900 4,200 4,610 4,529 4,421

2011 2013 2017 2018 2019 Q1 2020

Sewing Non ( sewing+PC ) PC

Stock Information and Dividends

Dividend policy is not less than 40% of normal net profit

Output 2019 2020 %G Ys 4.3 3.6

  • 15%

Cn 2.4 1.8

  • 26%

Bn 1.7 1.4

  • 21%

Tp 1.8 1.4

  • 21%

S5 1.5 1.1

  • 31%

Capacity 11.7 9.3

  • 21%

2018

Sourcing GPM 58.9% Produce GPM 50.4%

GPM 51.6% Output (million pcs.) Manpower Production : Sourcing Working capital and inventory management

  • Due to Covid-19 pandemic, both self production and outsourcing have been quickly

reduced to avoid inventory piling up and cash outflow on middle of March.

  • Outsourcing products have been postponed to June when all stores and shops will be

100% reopened. 63% : 37% 82% : 18%

Sourcing GPM 58.6% Produce GPM 53.3%

GPM 54.4%

  • The number of sewing line staff decreases with no replacement to

decrease the production capacity allowing more outsourcing product to bring in.

2019 394 374 297 255 328 361

0.9 1.0 1.2 1.4 1.1 1.0

2015 2016 2017 2018 2019 Q1 2020

DIO (Days) Inventory Turnover (Times)

50% : 50%

Q1 2020 GPM 52.9%

Sourcing GPM 54.6% Produce GPM 52.2%

  • Capacity has planned to reduce to 21% for the year 2020.
  • Level of inventory days will maintain at this level because only fabric mask has made

during April and May.

27

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SLIDE 29

The new strategies that businesses have adopted to navigate through the COVID-19 crisis will become core strategies. It is comparable to how cloth face masks will become another apparel to be worn and washed daily, like undergarments.

Bunchai Punturaumporn CEO of Sabina Public Company Limited

28

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APPENDIX APPENDIX

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SLIDE 33

From OEM manufacturer to brand developer

0%

BRAND EXPORT

2%

BRAND EXPORT

10%

NSR

9%

OEM

10%

BRAND

90%

OEM

79%

BRAND

2005: No pricing ability with nominated supplier 2019: Ability to command retail price with variety supplier

Sale Report Brand and OEM (2006 - 2019)

60% 55% 50% 35% 30% 25% 10% 9% 11% 11% 9% 8% 9% 9% 40% 45% 50% 65% 70% 75% 90% 91% 89% 89% 97% 92% 91% 91%

1,346 1,163 959 551 556 441 185 200 242 250 216 220 287 287 848 903 994 1,099 1,310 1,459 1,824 1,978 1,911 2,044 2,108

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 OEM Sabina % Gross Profit 27% 26% 37% 37% 35% 44% 50% 51% 53% 52% 53% 51% 52% 54% % N % Net et Pr Profit

  • fit Margin

Margin 8% 6% 9% 4% 3% 3% 6% 5% 7% 7% 7% 9% 12% 12%

2011: Thailand Great flood / Euro-zone crisis 2012: Minimum Wages hike to THB 300 2007-2008:Subprime 2010:UK Financial Crisis 2,439 2,803

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SLIDE 34

Sabina at a Glance

Medium (<THB700) Medium-High(THB700-1,000) High(>THB1,000)

Children (6-15 years) Teens (15-25 years) Young women (25-45 years) Women ( > 45 years)

Wide product offering with ability to capture broad group of customers

33