OPPORTUNITY DAY 16 May 2019 SABINA PUBLIC COMPANY LIMITED - - PowerPoint PPT Presentation

OPPORTUNITY DAY

16 May 2019

SABINA PUBLIC COMPANY LIMITED www.sabina.co.th

03

Financial Highlight Business Update Performance Update Q1 2019

02 01

AGENDA

SABINA PUBLIC COMPANY LIMITED

04

Appendix

Performance Update Q1 2019

Sabina Public Company Limited

3

Performance Update Q1 19

Q1 19 Highlights

• Delivered impressive revenue growth of 12.3 % YoY as a result of

strong sales performance in core channels, particularly in NSR channel.

• Successfully launched ‘Seamless Fit’ campaign through our integrate

marketing activities.

• Expanded more stores in CLMV.
• Launched high margin products during Valentine’s Day in February.
• Gross profit increased to 54.7% YoY due to the lower cost sourced

products from trusted sub-contractors.

• Impressive bottom line growth of 12.3% YoY primarily driven by our

higher Gross Profit.

• NPM significantly expanded as a result of 1) more sales contribution

from NSR, Sabina Export segment 2) an effective cost management and 3) adaptive marketing campaign.

1,141 1,198 1,258 1,356 1,595 364 421 53.0% 52.1% 52.8% 50.9% 51.6% 53.0% 54.7% 2014 2015 2016 2017 2018 Q1 2018 Q1 2019 Gross Profit GPM 147 166 176 243 362 79 95 6.8% 7.2% 7.3% 9.1% 11.7% 11.5% 12.3% 2014 2015 2016 2017 2018 Q1 2018 Q1 2019 Net Profit NPM THB mm 2,165 2,308 2,397 2,679 3,103 690 774 2014 2015 2016 2017 2018 Q1 2018 Q1 2019

Revenue Gross Profit Net Profit

11.8 % 15.8% 38.4 % 48.7%

4

Q1 2019 Performance

Sabina at a Glance (Cont’d)

G 4% G 12%

2016 2017 2018

Sabina Revenue

Q1 2018 Q1 2019 % YoY Net Profit 79 95 + 20%

Net Profit

THB mm THB mm

2,397 3,103 2,679 G15.8% 51 63 78 51 79 96 110 75 95 Q1 Q2 Q3 Q4

2017 2018 2019

5

Financial overview by segment

Not include other revenue and service revenue

Performance Update Q1 19 (Cont’d)

Sabina Brand Revenue NSR Revenue

THB mm

1,873 1,977 2,112 2,291 2,489 541 585 2014 2015 2016 2017 2018 Q1 2018 Q1 2019

• Successfully launched ‘Seamless Fit’ campaign through our integrate marketing activities.
• During Q1 Introduced 4 new branches i.e. Robinson Payao, Central Patong, etc.
• Launched new collections i.e. Madmoisellei, Sabinie, Swimwear, Maggie Mae, etc.
• Launched co-promotion campaign with prominent brands of Hospital, Bank , Telco company.

Sabina Export Revenue OEM Revenue

• Expanded more offline and wholesale channels in Myanmar and Vietnam bringing the total

point of sale outside Thailand up to 108 stores.

• Expanded more online channels in Vietnam and Myanmar.
• 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 the exclusive products for each country to fit with the local lifestyle and fitting
• Due to UK economy slow down (Brexit), some shipments are postponed to Q2,

2019.

• 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.
• Cooperated with key partners to create big campaign, especially for Sabina brand in
• rder to get better awareness and visibility to end customers.
• Collaborated with well-known brands for better communication and promotion to end

customers.

• Increased more online channel i.e. Fitcraze.

THB mm

• 96

254 57 92 2014 2015 2016 2017 2018 Q1 2018 Q1 2019 38 64 59 52 61 14 21 2014 2015 2016 2017 2018 Q1 2018 Q1 2019

THB mm THB mm

242 256 212 220 287 74 73 2014 2015 2016 2017 2018 Q1 2018 Q1 2019 8.5% 8.6% 3.8% 30.3%

• 12.7% 17.4%

163.6%

6

Q1 2019 Overview by segmentation

Not include other revenue and service revenue

76%

585

SABINA BRAND

9%

21

SABINA EXPORT

12%

92

NSR

3%

73

OEM

THB mm

Sabina Brand

7

Overview by segmentation SABINA BRAND

2017

Wireless Bra Perfect Bra Doomm Series

2016

Perfect Bra

2018

Wireless Bra Doomm Series

Big Cup All Cup All Cup Small Cup

2006-2015

Doomm Series

Small Cup

THB mm

Sabina Brand

2019

Seamless Fit

All Cup

76%

585 G +8%

8

Special campaigns

Sabina Brand (Cont’d)

Special campaigns Q1 2019

Seamless Fit : TVC / Viral Clip Behind The scene Making of : Seamless Fit Online Promotion Campaign

9

Special campaigns

Sabina Brand (Cont’d)

Special events Q1 2019

LINE Creators Market Connect Day Events at leading department store Baby&Kids Best Buy 2019

Partner

Samitivej Hospital SCB KBANK Krungsri AIS DTAC Donate to Baan Nontapum foundation

CSR

Doomm Series : Celebrated 10M pcs.

Campaign

10

Sabina Brand (Cont’d)

New Collections Influencers

11

Non Store Retailing

NSR ONLINE TV Shopping Catalogue

THB mm

12%

92 G +62%

12

Non-store Retailing

Live Streaming Video Brand of the day

Shopee Lazada

13



Bangladesh 10



Pakistan 9



Vietnam 41



Philippines 29



Myanmar 10



Laos 6



Cambodia 3 +1 -1 +2

Sabina Brand Export

New Store/POS expansion (Q4 2018) Shopee : Tet Total 108 outlets as of Q1 2019 , net addition

• f 5 outlets from 2018.

OPEN CLOSE TOTAL

New Store : Vincom Tran Duy Hung

THB mm

21

3%

Sabina cooperate with Marc

Launched the collection to match with the Chinese New Year Joined the campaign with Outerwear Brand to increase the customer base in online channel Expanded more wholesale market stores in Vietnam

Wholesale market

G +43%

14

OEM

High margin products

9%

73

THB mm

Visiting of UK Buyer for big cup swimwear development

G -2%

Financial Highlight

Sabina Public Company Limited

16

147 166 176 243 362 95 6.8% 7.2% 7.3% 9.1% 11.7% 12.3% 2014 2015 2016 2017 2018 Q1 2019 Net Profit NPM 2,165 2,308 2,397 2,679 3,103 774 2014 2015 2016 2017 2018 Q1 2019

Strong GPM and steadily expanding EBIT margins

948 953 997 1,051 1,067 1,156 304 43.5% 44.3% 43.4% 44.1% 40.1% 37.4% 39.5% 2013 2014 2015 2016 2017 2018 Q1 2019 SG&A SG&A/Sales

Solid top line growth with strong margin improvement

Rapidly trending down SG&A to sales

% THB mm

% YoY Growth

• 1%

7% 4% 12% 16%

THB mm THB mm

% YoY Growth 25.4% 12.7% 6.1% 38.4% 48.7%

Consistently growing top line Significantly expanding net profit and NPM

Financial Highlights (Cont’d)

7.7% 8.7% 9.2% 9.2% 11.4% 14.6% 15.6% 51.3% 53.0% 52.1% 52.8% 50.9% 51.6% 54.7% 2013 2014 2015 2016 2017 2018 Q1 2019 EBIT Margin GPM

17

Financial Highlights (Cont’d)

Steadily improving working capital management

449 402 382 296 258 271

2014 2015 2016 2017 2018 Q1 2019

56 50 49 45 44 49 6.5 7.3 7.5 8.1 8.3 7.5

2014 2015 2016 2017 2018 Q1 2019

DSO (Days) A/R Turnover (Times) 41 42 41 46 41 48 8.8 8.7 8.9 8.0 8.9 7.6

2014 2015 2016 2017 2018 Q1 2019

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

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

434 394 374 297 255 270 0.8 0.9 1.0 1.2 1.4 1.4

2014 2015 2016 2017 2018 Q1 2019

DIO (Days) Inventory Turnover (Times)

Days

18

D/E

Key Financial Ratio

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

1,566 1,664 1,754 1,895 1,835 1,937 741 552 484 492 767 777 0.47 0.33 0.28 0.26 0.42 0.40

2014 2015 2016 2017 2018 Q1 2019

Total Equity Total Liabilities D/E 9.7 10.3 10.3 13.3 19.4 19.3

2014 2015 2016 2017 2018 Q1 2019

6.4 7.3 7.9 10.5 14.5 14.6

2014 2015 2016 2017 2018 Q1 2019

ROA ROE EPS

0.42 0.48 0.51 0.70 1.04 0.27

2014 2015 2016 2017 2018 Q1 2019 Percent Percent THB/Share

19

Stock Information and Dividends

Dividend policy is not less than 40% of normal net profit 0.42 0.48 0.51 0.70 1.04 0.07 0.08 0.10 0.14 0.50 0.10 0.11 0.14 0.68 0.54

• 0.20

0.40 0.60 0.80 1.00 1.20

• 0.20

0.40 0.60 0.80 1.00 1.20

2014 2015 2016 2017 2018 EPS (THB/Share) 1st Half 2nd Half

2014 2015 2016 2017 2018 40% 40% 47% 117% 100%

THB

Business Update

Sabina Public Company Limited

21

FACTORY

Output 2018 2019 %G Ys 4.7 4.7 0% Cn 2.7 2.7 0% Bn 1.4 1.9 34% Tp 2.0 2.0 0% S5 1.4 1.6 11% Capacity 12.2 12.8 5%

2,400 1,400 1,550 1,851 1,833 1,900 1,400 1,450 1,622 1,677 800 1,100 1,200 1,162 1,150

2011 2013 2017 2018 Q1 2019

PC Non sewing+PC Sewing

2017 2018 Q1 2019

Sourcing GPM 59% Produce GPM 50%

GPM 51.6%

Output (million pcs.) Manpower Production : Sourcing

96% : 4%

Working capital and inventory management

Inventory turn over at 1.4 time despite the increase in unit production of 6.1% and sourcing of 33%

• Sourcing gains 9.3% higher margin than production.

4,635 4,200 3,900 5,100

• 28 employees have been increased from the expansion of the moulding line.

67% : 33% 82% : 18% 4,664

Sourcing GPM 62.2% Produce GPM 52.9%

GPM 54.7%

434 394 374 297 255 270 0.8 0.9 1.0 1.2 1.4 1.4

2014 2015 2016 2017 2018 Q1 2019

DIO (Days) Inventory Turnover (Times)

22

Sabina Brand

Launching new collection

WOONSEN COLLECTION

23

Sabina Brand

Launching new collection

Influencer

24

Sabina Brand (Cont’d)

Our integrated marketing strategy in both offline and online channels NEW WEBSITE www.sabina.co.th

25

Growth Strategy in 2019-2024



Customer centric product development



Consistently introduce new products / collection that meet customers needs



Backed by state-of-the-art marketing activities (plan to invest 3- 4% of sales in marketing activities)



Store expansion



Price optimization



Increase B2B Business



Wider and Exclusive assortment in online and TV channels



Joint business plan with key partners to align sales & marketing plan



Provide customer seamless Experience



Personalized marketing campaign



Sabina brand building



Strengthen distributors



Stores expansion



Online and TV channels expansion oversea



Product innovation



Maintain superb quality and

• n-time delivery

Now Looking Forward

Key Drivers

Sales will be supported by both Sabina manufacturing capacity together with an increase in product sourcing from trusted sub-contractors

Sabina Brand NSR Export OEM

ESG

26

ESG Principles

Zero Waste policy 5S SOLAR EVAP system Non Plastic Use Disabled employees Mother Jintana Foundation Sewing Cup, Sewing Heart Factory Model : Lean , 5 S , Kaizen AunJai Fund (Micro Finance ) Code of conduct CAC (Collective Action Coalition Against Corruption ) WRAP (Worldwide Responsible Accredited Production) SEDEX (Supplier Ethical Data Exchange)

SABINA PUBLIC COMPANY LIMITED www.sabina.co.th

Appendix

Sabina Public Company Limited

29

0%

BRAND EXPORT

2%

BRAND EXPORT

8%

NSR

9%

OEM

10%

BRAND

90%

OEM

81%

BRAND

From OEM manufacturer to brand developer

2005: No pricing ability with nominated supplier 2018: Ability to command retail price with variety supplier

Sale Report Brand and OEM (2006 - 2018)

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

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

500 1,000 1,500 2,000 0% 20% 40% 60% 80% 100%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 OEM Sabina % Gross Profit 27% 26% 37% 37% 35% 44% 50% 51% 53% 52% 53% 51% 52% % Net Profit Margin 8% 6% 9% 4% 3% 3% 6% 5% 7% 7% 7% 9% 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

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) 30

Sabina at a Glance

Wide product offering with ability to capture broad group of customers

Sabina at a Glance (Cont’d)

31

Highly penetrated and robust distribution network

Shop Department stores and

• thers

Modern Trade Special Event Distributors Q1 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 International



Vietnam 41



Philippines 29



Myanmar 10



Laos 6



Cambodia 3



Bangladesh 10



Pakistan 9

83 Shops 2-3 Events per quarter 80 Department stores 110 other channels 308 Modern trade

Traditional Store Retailing Channels Non-stores Retailing Channels (NSR)

 3 TV channels, 9 online,

2 direct catalog distribution channels

 New growth drivers with

minimal cost

 Consistently ranked the Best

selling products in TV channels since 2019

Sabina Export and POS Q1 2019 OEM Customers

Manufacture only high margin OEM products for selected brands Purely distributed by local partners with no direct investment on the stores

 TV Shopping  Online  Direct Catalogue

Q1 2019 Store Total Department store Central 23 Robinson 48 The mall 9 80 Modern trade Big C 131 Lotus 176 Makro 1 308 Shops 83 Other 110 Total 581