Rich Sport Public Company Limited Q2 2019 Result Opportunity Day - - PowerPoint PPT Presentation

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Rich Sport Public Company Limited

Prepared by Investor Relations Department Rich Sport Public Company Limited

Q2 2019 Result

Opportunity Day 29 Aug 2019

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Agenda

Prepared by Investor Relations Department Rich Sport Public Company Limited

Section 1 Company Overview 3 Section 2 Business Update 9 Section 3 Financial Performance 15 Section 4 Appendix 20

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Key Milestone

Company Overview

Section 1: Company Overview Prepared by Investor Relations Department Rich Sport Public Company Limited 2001:

▪ Rich Sport Company

Limited was registered by the Department of Business Development, Ministry of Commerce with registered capital of THB 5 mn 2017:

▪ Converted from a private company to

public company

▪ Increased registered capital from THB

570 mn to THB 770 mn by issuing new 200 mn ordinary shares (Par Value = THB 1 per share) for subscription of public investors

▪ Started selling “Pony” via Shop-in-Shop

in department stores in Sep 2017

▪ Received exclusive rights to

manufacture and distribute “Converse” products in Cambodia in Oct 2017 2016:

▪ Rich Sport received exclusive rights

to manufacture and distribute “Pony” products in Thailand, Cambodia and Laos from Pony International Limited (HK) 2003:

▪ Rich Sport received exclusive

rights to manufacture and distribute “Converse” products in Thailand from Converse Inc. (USA)

▪ Rich Sport started selling

Converse products in Shop-in- shop in department stores, mono brand stores, and to wholesale accounts 2019:

▪ Rich Sport received exclusive

rights to distribute “Barrel” product in Thailand and Cambodia from Barrel Company Limited (267790: KOSDAQ)

▪ Opened “Barrel” 8 Shop-in-

shops (Aug 2019) 2001 2003 2016 2017 2018 2019 2018:

▪ Opened “Pony” 36 Shop-in-

shop

▪ Expanded “Converse” and

“Pony” brand into Cambodia market

▪ Expanded into online channels

Non-Footwear Sales Breakdown Sales Breakdown by Product Type 4

Converse – By product type

Section 1: Company Overview Prepared by Investor Relations Department Rich Sport Public Company Limited

Footwear

1

Apparel

3

Bag

2

Accessories

4

Bag 70.3% Apparel 15% Cap 12.3% Others 2.4%

1H19

Footwear 69.7% Non-Footwear 30.3%

1H19

Company Overview

5 Section 1: Company Overview Prepared by Investor Relations Department Rich Sport Public Company Limited

PONY – By product type

Footwear 1 Non-Footwear 2

Company Overview

Non-Footwear Sales Breakdown Sales Breakdown by Product Type

Bag 63.8% Apparel 28.6% Cap 7.6%

1H19

Footwear 64.5% Non-Footwear 35.5%

1H19

6 Section 1: Company Overview Prepared by Investor Relations Department Rich Sport Public Company Limited

Top

BARREL – By product type

1 Bottom Accessories 2 3

Company Overview

Top 46.7% Bottom 45.6% Accessories 7.7%

2Q19 Sales Breakdown

Online Mono Brand Store Shop-in-Shop

7 Section 1: Company Overview Prepared by Investor Relations Department Rich Sport Public Company Limited

▪ CONVERSE : 116 ▪ PONY : 34 ▪ BARREL : 5

▪ Sell products to wholesale accounts including sports specialty stores and multi-brand stores

Retail Wholesale

By distribution channel

▪ CONVERSE : 40

▪ Lazada ▪ Shopee

Company Overview

Sales Breakdown 1H 2019 Sales Breakdown 2018

25.00% 22.00% 53.00%

Mono Brand Store Shop-in-Shop Wholesale 651.2 MB

20.90% 25.00% 52.50% 1.73%

1273.5 MB Mono Brand Store Shop-in-Shop Wholesale OEM

Branch by location

Bangkok 38% Upcountry 62%

Total number

• f stores:

195

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Agenda

Prepared by Investor Relations Department Rich Sport Public Company Limited

Section 1 Company Overview 4 Section 2 Business Update 9 Section 3 Financial Performance 15 Section 4 Appendix 20

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The New Jack Purcell launch at WERK BTS Ari

CONVERSE

Section 3: Business Update Prepared by Investor Relations Department Rich Sport Public Company Limited

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Successful launch of PONY X POKEMON

PONY

Section 3: Business Update Prepared by Investor Relations Department Rich Sport Public Company Limited

+63% YoY

Average Same Store Sales growth

34 SIS

Number of stores

11

Brand launch with store expansion

BARREL

Prepared by Investor Relations Department Rich Sport Public Company Limited Section 3: Business Update

2019 Store Opening (8 Stores as of Aug 19)

23-April Robinson Jungceylon Phuket 9-May Central World Pop up 29-May Paragon 1-June ZEN 6-June Emporium 1-July Robinson Rama 9 1-August Siam Discovery Pop up 10-August Icon Siam Early Sep Central Pattaya Q4 2019 3 Shop-in-Shop TBC 2020 6 Stores Expansion in 2020

Influencers

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Online Marketing

BARREL

Prepared by Investor Relations Department Rich Sport Public Company Limited Section 3: Business Update

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Improving same store sales

CAMBODIA

Section 3: Business Update Prepared by Investor Relations Department Rich Sport Public Company Limited

Stores Number of stores

6 stores Phnom Penh: 5 Siem Reap: 1

Average Same Store Sales growth

+59% YoY

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Agenda

Prepared by Investor Relations Department Rich Sport Public Company Limited

Section 1 Company Overview 4 Section 2 Business Update 9 Section 3 Financial Performance 15 Section 4 Appendix 20

Sales Proportion by Product Type Sales from Non-footwear Product Sales from Footwear Product Sales

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Revenue by product type

Financial Performance

Section 2: Financial Performance Prepared by Investor Relations Department Rich Sport Public Company Limited

1,552.7 1,343.5 1,273.5 616.6 651.2 287.8 316.3

2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019

1,235.3 1,014.1 865.1 429.1 460.2 193.5 225.1

2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019

317.4 329.4 386.4 187.5 191.1 94.3 91.2

2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019

79.5% 75.4% 67.9% 69.6% 70.7% 67.2% 71.2% 20.4% 24.5% 30.3% 30.4% 29.3% 32.8% 28.8%

1.7% 2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019 Footwear Non-footwear OEM

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Revenue by distribution channel

Financial Performance

Prepared by Investor Relations Department Rich Sport Public Company Limited Section 2: Financial Performance

Sales Proportion by Distribution Channel Sales from Wholesale Sales from Shop-in-Shop* Sales from Mono Brand Store

Number

• f Store

2014 2015 2016 2017 2018 2Q2019 30 35 39 41 41 40 256.0 260.3 266.1 124.5 163.4 61.7 79.3 6.42 6.36 6.49 6.07 8.17 6.02 7.93

• 2.00

4.00 6.00 8.00 0.0 200.0 400.0 600.0

2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019

Sales from Mono Brand store

• Avg. Same Store Sales

506.8 355.0 317.9 161.7 144.5 72.1 69.7

2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019

16% 19% 21% 20% 25% 21% 25% 51% 54% 53% 54% 53% 54% 53% 33% 26% 25% 26% 22% 25% 22%

2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019 Mono Brand Store Shop-in-Shop Wholesale

789.9 728.3 667.5 330.4 339.1 154.0 164.4 6.81 6.17 4.31 4.13 4.52 3.85 4.38 (5.00) (3.00) (1.00) 1.00 3.00 5.00 7.00 0.0 500.0 1000.0 1500.0

2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019

Sales from Shop-in-Shop

• Avg. Same Store Sales

Number

• f Store

2014 2015 2016 2017 2018 2Q2019 111 113 116 118 155 150

*include online channel

122.7 121.0 137.9 54.3 53.1 25.8 26.5 7.9% 9.0% 9.3% 8.7% 8.1% 9.0% 8.4%

• 10.0%
• 5.0%

0.0% 5.0% 10.0% 0.0 50.0 100.0 150.0 200.0 250.0

2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019

Administrative Expenses % Administrative Expenses to Sales

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Operating margins

Financial Performance

Prepared by Investor Relations Department Rich Sport Public Company Limited

Gross Profit

Section 2: Financial Performance

Extra item 19.6mn THB 916.2 780.8 726.6 358.2 368.0 156.6 175.5 59.0% 58.1% 57.1% 57.5% 56.5% 54.4% 55.5%

• 10.0%

10.0% 30.0% 50.0% 0.0 500.0 1000.0 1500.0

2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019

Gross Profit % Gross Profit Margin 419.0 396.4 412.5 205.7 215.6 102.7 103.2 27.0% 29.5% 32.4% 33.4% 33.1% 35.7% 32.6% 0.0% 10.0% 20.0% 30.0%

• 100.0

100.0 300.0 500.0 700.0 900.0 1100.0

2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019

Selling Expense % Selling Expense to Sales 298.8 226.1 157.6 88.0 99.8 26.8 48.2 19.2% 16.8% 12.4% 14.1% 15.3% 9.3% 15.3%

• 10.0%
• 5.0%

0.0% 5.0% 10.0% 15.0% 20.0%

• 50.0

50.0 150.0 250.0 350.0 450.0 550.0

2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019

Net Profit % Net Profit Margin

Selling Expenses Administrative Expenses Net Profit

Liabilities

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Balance Sheet

Financial Performance

Prepared by Investor Relations Department Rich Sport Public Company Limited Section 2: Financial Performance

84.4 174.8 233.4 1,411.0 1,032.8 1,150.2 129.3 206.6 199.1 178.7 207.5 150.1 134.9 128.8 198.4 179.0 426.6 403.1 83.3 87.7 165.5 170.6 149.4 145.9 214.4 129.3 77.0 87.9 163.7 124.6

646.4 727.2 873.3 2,027.2 1,980.0 1,974.0

2014 2015 2016 2017 2018 Q2 2019 Cash / Equivalent Cash Account Receiveable Inventories PPE Others

146.8 124.4 126.4 97.8 68.8 53.2 51.5 100.6 86.0 59.2 71.8 56.0 198.3 225.0 212.4 157.0 140.7 109.2

2014 2015 2016 2017 2018 2Q 2019 Account payable Others liabilities

448.1 502.2 661.0 1,870.2 1,839.3 1864.7

2014 2015 2016 2017 2018 2Q 2019

• XD 30 April 2018

Dividend 0.15 per share

• XD 23 Aug 2018

Dividend 0.10 per share

• XD 29 April 2019

Dividend 0.10 per share

Asset Equity

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Agenda

Prepared by Investor Relations Department Rich Sport Public Company Limited

Section 1 Company Overview 4 Section 2 Business Update 9 Section 3 Financial Performance 15 Section 4 Appendix 20

Rich Sport Holding Company Limited Shareholding structure

Paid registered capital before IPO THB 570 mn : Par Value of THB 1 per share Paid-up registered capital after IPO THB 770 mn : Par Value of THB 1 per share 20

Shareholding Structure

Company Overview

Section 1: Appendix Prepared by Investor Relations Department Rich Sport Public Company Limited

33.334% 33.333% 33.333% Papitch Wongpaitoonpiya Pasawich Wongpaitoonpiya Panuwich Wongpaitoonpiya % total 1 Rich Sport Holding CO.,LTD. 30.00 2

• Ms. Papitch Wongpaitoonpiya

23.33 3

• Mr. Pasawich Wongpaitoonpiya

23.33 4

• Mr. Panuwich Wongpaitoonpiya

23.33 TOTAL 100 TOTAL ISSUES SHARES (mn shares) 570.0

Post-IPO THB 770 mn

IPO 25.32% Rich Sport Holding Co.,Ltd 22.21% Papitch Wongpaitoonpiya 17.27% Pasawich Wongpaitoonpiya 17.27% Panuwich Wongpaitoonpiya 17.27%

As of 30 April 2019 % out of total 1 Rich Sport Holding CO.,LTD. 22.21 2

• Ms. Papitch Wongpaitoonpiya

17.34 3

• Mr. Pasawich Wongpaitoonpiya

17.29 4

• Mr. Panuwich Wongpaitoonpiya

10.78 5 BBHISL NOMINEES LIMITED 3.48 6 CREDIT SUISSE (SWITZERLAND) LTD. 2.59 7

• Ms. Yuwadee wachiraprapa

1.49 8

• Mr. Aumpol Kitijarurat

1.42 9

• Mr. Theera Kitijarurat

1.38 10

• Mr. Sompong Cholkadeedumrongkul

1.30 TOTAL TOP 10 SHAREHOLDERS 79.28 TOTAL ISSUES SHARES (mn shares) 770.0

21 Prepared by Investor Relations Department Rich Sport Public Company Limited