OPPOR OPPORTUNIT TUNITY Y DAY Y PRE PRESE SENT NTATION TION - - PowerPoint PPT Presentation

OPPOR OPPORTUNIT TUNITY Y DAY Y

PRE PRESE SENT NTATION TION

• 27. 02. 2020

Q4 2019

SABINA PERFORMANCE UPDATE

AGEN GENDA

FINANCIAL HIGHLIGHT BUSINESS UPDATE APPENDIX

1

PERFORMANC PERFORMANCE E UPD UPDATE TE Q4 2019 4 2019

SABINA PUBLIC COMPANY LIMITED 2

ผ

2,308 2,397 2,679 3,103 3,295 775 804

• 1,000

2015 2016 2017 2018 2019 Q4 18 Q4 19

• Bottom line growth of 28.1% YoY (NPM at

12.0%) primarily driven by our higher Gross Profit.

• NPM significantly expanded as a result of :

1) more sales contribution from NSR on the TV Shopping and Online Platform. 2) an effective cost management. 3) adaptive marketing campaign.

• Gross profit increased 9.2% YoY (GPM at

56.7%) due to:

• 1. The competitive cost advantage of

higher proportion sourced products from trusted sub-contractors.

• 2. Lower sewing process from Sabina

R&D new product development such as Seamless bra and Strapless bra.

• 3. An effective cost control on the MOH

through Kaizen and Lean manufacturing.

• Q4 revenue significantly increased of 3.8%

YoY due to the successful launched “Body Bra” Campaign since Q3.

• More sales contribution from NSR revenue
• n 11:11 with Lazada and 12:12 with

Shopee.

• Recovery of OEM sales from UK brands

have eventually brought the higher revenue.

THB mm

Revenue Gross Profit Net Profit

1,198 1,258 1,356 1,595 1,786 417 455 52.1% 52.8% 50.9% 51.6% 54.4% 54.0% 56.7% 2015 2016 2017 2018 2019 Q4 18 Q4 19

166 176 243 362 413 75 97

7.2% 7.3% 9.1% 11.7% 12.5% 9.7% 12.0% 2015 2016 2017 2018 2019 Q4 18 Q4 19

Performance Update Q4 19

6.2% 15.8% 12% 17.7% 14.3% 48.7%

3

Performance Update Q4 19

Sabina Revenue Net Profit

THB mm THB mm

2018 2019 % YoY Net Profit 362 413 14.3%

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

2016 2017 2018 2019

G15.8% G4% G12% G6.2%

51 63 78 51 79 96 110 75

95 105 117 97

Q1 Q2 Q3 Q4

2017 2018 2019

G 5.7% G 8.6% G 20% G 28.1% 4

256 212 220 287 287 69 81 2015 2016 2017 2018 2019 Q4 18 Q4 19

0.1%

64 59 52 60 76 14.6 5.3

• 50

2015 2016 2017 2018 2019 Q4 18 Q4 19 1,977 2,112 2,291 2,489 2,581 634 644

• 1,000

2015 2016 2017 2018 2019 Q4 18 Q4 19 96 254 336 54 73 2015 2016 2017 2018 2019 Q4 18 Q4 19

Performance Update Q4 19

Sabina Brand Revenue 79% NSR Revenue 10%

THB mm

Sabina Export Revenue 2% OEM Revenue 9%

• More orders have been bought in CLMV since late of Q3 instead of Q4 in order to prepare

for the holidays season sales of Nov-Dec.

• Continued to share our knowledge and expertise to local distributors in the area of inventory

management, POS system, PC training, P&L analysis of sale channels and monthly promotion plan.

• Launched exclusive products for each country regarding to the fitting and styles.
• Recovery of OEM sales from UK brands have eventually brought the higher

revenue.

• Our orders comprised of only high margin products such as fashion lingerie, big

cup bra and swimwear.

• Continued to maintain high quality and on-time delivery.
• Best performance in Big Campaign 11.11 and 12.12 in all marketplace by using

customer centric to design campaign promotion

• Continuing to use Data-driven insights to create campaign for each group of customer.

THB mm THB mm THB mm

• Successfully launched „Body Bra The Series‟ campaign through our integrated marketing

activities.

• Launched new collections i.e. Ano Collection , Modern V , Mad Moiselle.
• Launched co-promotion campaign with prominent brands of Bank and Skin Care.

8.6% 3.7% 163.5% 32.3% 17.4% 25.7% 30.3%

5

Sabina Brand

THB mm

79%

2,581

Shop Department stores and others Modern Trade Mobile Pop Up Stores

Distributors 2019 Strengths

 Key channel for high

value products

 Advertising

channels

 Channels to gather

customer behavior data for R&D

 Key channel for

mid-end products

 Key channel for

low price products

 Key channel

to manage

• bsolete

inventory

• Domestic

106 106 Sh Shops 2-3 3 Ev Events per quarter 83 De Departme ment stores 88 88 Tr Traditional Tr Trade 308 Modern trade

Traditional Store Retailing Channels 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

Mobile Pop Up Stores 6

G3.7%

Sabina Brand

Sabina Body Bra The Series rewarded the lucky winner from Body Bra dancing contest to Maldives with Baifern Pimchanok and the beauty bloggers. On this occasion, Sabina has cooperated with a skincare brand Mizumi in order to support the events and to promote products together. Special campaigns Q4 2019 : Body Bra The Series

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Partnership

Sabina partnered with Mizumi, skincare brand, sharing the same presenter Bai Fern Pimchanok, the famous actress.

Sabina Brand

COLLABORATION : SABINA X ANO COLLECTION

Mad Moiselle is classified as luxury and elegance, comes in new collection “Holliday”. The collection is also available on Pomelo website.

MAD MOISELLE INTIMATES

To collaborate with Nae Anothai, Thai street artist, for product designs to focus on teen-age. This is the first time for lingerie designed in street arts by first launching in Samyan Mitrtown Shop.

ANO COLLECTION

To continue the success for Modern V with more comfortable and better support in seamless technology.

MODERN V

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

–

 

Non Stores Retailing Channels (NSR)

TV Shopping Online Direct Catalogue

 Special Campaign exclusively

for specific channel – e.g. Super Brand Day at Shopee

 Data-driven social marketing to

personalize promotion and product for customers.

 No.1 in marketing place platform

• n both 11.11 and 12.12

Shopping Festival

THB mm

10%

335.5

9

G32.3%



–

 

1.12 1.12

1 1

12 12.12 .12 Non Stores Retailing Channels (NSR)

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Shopping Festival

Shopee Super Brand Day regional campaign include Thailand, Vietnam and Philippines.

Shopee Super Brand Day Regional Campaign

Sabina Brand Export



–

  New Store/POS Expansion (Q4 2019)



Vietnam 36 +2



Philippines 31 +2



Myanmar 8 -1



Laos 7 +1



Cambodia 5 +1



Bangladesh 10 0



Pakistan 9 0

TOTAL Dif

Open 2 new counters in Northern Vietnam : MM Than Xuan and Aeon Ha Dong.

Purely distributed by local partners with no direct investment on the stores

Launched new collection

Join big campaign with online channel in Vietnam & Philippines during 11.11 / 12.12 Big Campaign for Black Friday in CLMV during November.

THB mm

2%

76

11

G25.7%

OEM



–

 

Manufacture

• nly high

margin OEM products for selected brands

THB mm

9%

287

12

G0.1%

Order Confirmation

G+%

Order confirmation

OEM Customers Order Confirmation High margin products The impacts to Thailand from the impending US-China trade war

9M-2019

G-5.7%

FIN FINANCIAL ANCIAL HIGHLIG HIGHLIGHT HT

SABINA PUBLIC COMPANY LIMITED 13

Financial Highlights

Strong GPM and steadily expanding EBIT margins

Solid top line growth with strong margin improvement

Rapidly trending down SG&A to sales

% THB mm THB mm THB mm

Consistently growing top line Significantly expanding net profit and NPM

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

• 500

2015 2016 2017 2018 2019

% YoY Growth

7% 4% 12% 16% 6%

52.1% 52.8% 50.9% 51.6% 54.4% 9.2% 9.2% 11.4% 14.6% 15.9%

2015 2016 2017 2018 2019

GPM EBIT Margin 166 176 243 362 413 7.2% 7.3% 9.1% 11.7% 12.5%

• 100

2015 2016 2017 2018 2019

Net Profit NPM

% YoY Growth

12.7% 6.1% 38.4% 48.7% 14.3%

14

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

2015 2016 2017 2018 2019

SG&A SG&A/Sales

50 49 45 44 46 7.3 7.5 8.1 8.3 8.0

2015 2016 2017 2018 2019

DSO (Days) A/R Turnover (Times)

Financial Highlights

Steadily improving working capital management

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

Days

42 41 46 41 43 8.7 8.9 8.0 8.9 8.4

2015 2016 2017 2018 2019

A/P Turnover Days (Days) A/P Turnover (Times) 402 382 296 258 331

2015 2016 2017 2018 2019

394 374 297 255 328 0.9 1.0 1.2 1.4 1.1

2015 2016 2017 2018 2019

DIO (Days) Inventory Turnover (Times)

15

Financial Highlights

D/E ROA ROE EPS

Percent Percent THB/Share

7.3 7.9 10.5 14.5 14.7

2015 2016 2017 2018 2019

10.3 10.3 13.3 19.4 22.4

2015 2016 2017 2018 2019

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

2015 2016 2017 2018 2019

Total Equity Total Liabilities D/E

0.48 0.51 0.70 1.04 1.19

2015 2016 2017 2018 2019

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Healthy balance sheet with ample debt room to raise fund whenever it is needed

Stock Information and Dividends

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

• 0.20

0.40 0.60 0.80 1.00 1.20 1.40

• 0.20

0.40 0.60 0.80 1.00 1.20 1.40

2015 2016 2017 2018 2019

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

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

17

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

BUSINE USINESS SS UPD UPDATE TE 2020 2020

SABINA PUBLIC COMPANY LIMITED 18

Sabina Brand

From the previous achievement of WS collection, the collection that Sabina collaborate with the well-known Thai actress; Woonsen, is launched for the second time.

19

New Collection : Woonsen Collection

Sabina Brand

Maggi Mae

Full Cup Full Fashion For teenagers who have a larger breast volume

20

New Collection : Maggie Mae Collection

Doomm Seires Small Cup

2006-2015

Perfect Bra Big Cup

2016

Wireless Bra Perfect Bra Doomm Series

2017

SABIN SABINA B A BRA RAND ND

MARKETI KETING NG AND ND R&D &D

Sabina Brand

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Wireless Bra All Cup Doomm Series Small Cup

2018

Seamless Fit Body Bra The Series All Cup

2019

Invisible Wire All Cup

2020

NEW CAMPAIGN

SABINA INVISIBLE WIRE TO REGISTER SABINA WIRELESS BRA AS “INVISIBLE WIRE” TO BE SUPERIOR TO THE CATEGORY PERCEPTION

Sabina Brand

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NEW CAMPAIGN

TO REGISTER SABINA WIRELESS BRA AS “INVISIBLE WIRE” TO BE SUPERIOR TO THE CATEGORY PERCEPTION

SABINA INVISIBLE WIRE

Sabina Brand

Teaser Phase : Online Film

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394 374 297 255 328 0.9 1.0 1.2 1.4 1.1 2015 2016 2017 2018 2019

DIO (Days) Inventory Turnover (Times)

Sabina Core Strategy For 2020

2,400 1,400 1,550 1,845 1,758 1,900 1,400 1,450 1,617 1,618 800 1,100 1,200 1,148 1,153

2011 2013 2017 2018 2019

Output 2019 2020 %G Ys 4.3 4.0

• 7%

Cn 2.4 1.8

• 25%

Bn 1.7 1.4

• 18%

Tp 1.8 1.6

• 11%

S5 1.5 1.2

• 20%

Capacity 11.7 10.0

• 15%

2017 2018

Sourcing GPM 58.9% Produce GPM 50.4%

GPM 51.6% Output (million pcs.) Manpower Production : Sourcing 96% : 4% Working capital and inventory management

• Total 2019 GPM is 2.8% higher than total 2018 GPM.
• Sourcing gains 5.3% higher margin than production.
• The ratio of outsourcing will be increased by 3-5% each year.

4,610 4,200 3,900 5,100

63% : 37% 82% : 18%

4,529 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.

2019

GPM 50.9%

• 81

24

Sabina Revenue Segmentation

2023

79% 9% 10% 2% 60%

SABINA BRAND

6%

SABINA EXPORT

26%

NSR

8%

OEM SABINA BRAND SABINA EXPORT NSR OEM

2019 76 287 336 2,581

THB mm THB mm THB mm THB mm

25

Avg. Growth / Year 3-5% 25-30% 30-35% 0% 7-10%

Total Revenue

ESG

• Encourage the customer to donate the used bra for

Ban Kueng Veethi Foundation.

Where have all the used bras gone, we care… 26

CSR : ESG

ESG Principles 27

Zero Waste policy (GRI.301) 5S policy (GRI.403) EVAP system (GRI.302) Non Plastic Use (GRI.403) Disabled employees working program (GRI0.405 GRI.406) Mother Jintana Foundation (GRI.413) Sewing Cup, Sewing Heart (GRI.416) Factory Model : Lean , 5S , Kaizen (GRI.404) AunJai Fund (Micro Finance) (GRI.405) Code of conduct (GRI.419) CAC (Collective Action Coalition Against Corruption) (GRI.205) WRAP (Worldwide Responsible Accredited Production) (GRI​.410) SEDEX (Supplier Ethical Data Exchange) (GRI.414)

ESG

Sewing Cup Sewing Heart

2 9

• Encourage the customer

to make an artificial cup through Sabina kit and donate to post breast surgery woman.

28

Award

29

30

AP APPE PENDIX NDIX

SABINA PUBLIC COMPANY LIMITED 31

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

32

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