SABINA PUBLIC COMPANY LIMITED www.sabina.co.th AGENDA 01 03 04 - - PowerPoint PPT Presentation

SABINA PUBLIC COMPANY LIMITED www.sabina.co.th

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Financial Highlight Business Update Performance Update Q2 2019

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AGENDA

SABINA PUBLIC COMPANY LIMITED

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Appendix

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Performance Update Q2 19

Q2 19 Highlights

• Delivered revenue growth of 10.6 % 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 new channel of Sales in CLMV.
• Gross profit increased 14.5% YoY (GPM at 52.6%) due to :
• 1. the lower cost sourced products from trusted sub-contractors.
• 2. less sewing process from Sabina R&D new product development.
• 3. an increase of the production of our in house moulding cup.
• Bottom line growth of 8.6% YoY (NPM at 12.1%) primarily driven by
• ur 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 1,595 759 874 396 453 53.0% 52.1% 52.8% 50.9% 51.6% 51.7% 53.6% 50.5% 52.6% 2014 2015 2016 2017 2018 1H18 1H19 Q2 18 Q2 19 Gross Profit GPM 147 166 176 243 362 176 200 97 105 6.8% 7.2% 7.3% 9.1% 11.7% 11.9% 12.2% 12.3% 12.1% 2014 2015 2016 2017 2018 1H18 1H19 Q2 18 Q2 19 Net Profit NPM THB mm 2,165 2,308 2,397 2,679 3,103 1,475 1,643 785 869 2014 2015 2016 2017 2018 1H18 1H19 Q2 18 Q2 19

Revenue Gross Profit Net Profit

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Q2 2019 Performance

Sabina at a Glance (Cont’d)

Sabina Revenue Net Profit

THB mm THB mm

51 63 78 51 79 96 110 75

95 105

• 10

10 30 50 70 90 110 130 150

Q1 Q2 Q3 Q4

2017 2018 2019 1H 2018 1H 2019 % YoY Net Profit 176 200 14%

2,397 2,679 3,103

2,000 2,200 2,400 2,600 2,800 3,000 3,200 3,400

2016 2017 2018

G 4% G 12% G 15.8%

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Financial overview by segment

Not include other revenue and service revenue

Performance Update Q2 19 (Cont’d)

Sabina Brand Revenue 79% NSR Revenue 11%

THB mm

1,873 1,977 2,112 2,291 2,489 1,186 1,286 645 701 2014 2015 2016 2017 2018 1H18 1H19 Q2 18 Q2 19

• Successfully launched ‘Seamless Fit’ campaign through our integrate marketing activities.
• Launched new collections i.e. Woonsen Collection
• Launched co-promotion campaign with prominent brands of Bank , Telco company.

Sabina Export Revenue 2% OEM Revenue 8%

• Expanded more online and TV channels in Vietnam and Philipines.
• 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 more 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 Q3,

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.
• Align with Corporate Marketing Plan to all online channels to create more awareness

and lock visibility for Sabina

• Create special campaign with well-known partner brands in order to gain more visibility

and draw new customers. THB mm

96 254 122 180 65 88 2014 2015 2016 2017 2018 1H18 1H19 Q2 18 Q2 19 38 64 59 52 61 29 36 14 16 2014 2015 2016 2017 2018 1H18 1H19 Q2 18 Q2 19

THB mm THB mm

242 256 212 220 287 133 130 59 58 2014 2015 2016 2017 2018 1H18 1H19 Q2 18 Q2 19

• 0.9%

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1H 2019 Overview by segmentation

Not include other revenue and service revenue

79%

1,286

SABINA BRAND

8%

36

SABINA EXPORT

11%

180

NSR

2%

130

OEM

THB mm

Sabina Brand

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Overview by segmentation

* Expanded to capture all cup size since 2016

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

79%

1,286

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Special campaigns

Sabina Brand (Cont’d)

Special Campaigns Q2 2019

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Sabina Brand (Cont’d)

New Collections Influencers

The "Woonsen Collection – Furious Obsession" combines speed and sports with a sense of femininity to create a preppy, yet sexy look. The collection features 14 sets of bras, panties, bikinis, activewear, and bodysuits that are adorned by elements such as the WS symbol, inspired by speed and racing which was designed exclusively for this collection.

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Special campaigns

Sabina Brand (Cont’d)

Special events Q2 2019

Events at leading department store

Partner

Krungsri DTAC Fineline BabyLove

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Non Store Retailing

NSR ONLINE TV Shopping Catalogue

THB mm

11%

180

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Non-store Retailing

Live Streaming Video Reward

Shopee Lazada

Brand of the day

Regional Campaign with online marketplace across SEA(1)



Vietnam 41



Philippines 29



Myanmar 10



Laos 6



Cambodia 3 13



Bangladesh 10



Pakistan 9

Sabina Brand Export

New Store/POS expansion (Q2 2019) Launched new collection Total 108 outlets as of Q2 2019

TOTAL

Renovate counter in Vietnam : Lotte Department Store (HN)

THB mm

New online channel

Launched new collection in CLMV During water festival (Songkran) which is a high season Expand new online channel in Vietnam Expanded more wholesale market stores in Vietnam

Wholesale market

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2%

OEM

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The impacts to Thailand from the impending US-China trade war High margin products

THB mm

8%

130

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147 166 176 243 362 176 200 6.8% 7.2% 7.3% 9.1% 11.7% 11.9% 12.2% 2014 2015 2016 2017 2018 1H 2018 1H 2019 Net Profit NPM 2,165 2,308 2,397 2,679 3,103 1475.1 1643.1 2014 2015 2016 2017 2018 1H 2018 1H 2019

Strong GPM and steadily expanding EBIT margins

953 997 1,051 1,067 1,156 544 632 44.3% 43.4% 44.1% 40.1% 37.4% 37.1% 38.7% 2014 2015 2016 2017 2018 1H 2018 1H 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

• 1.1%

6.6% 3.9% 11.8% 15.8 16.2 11.4

THB mm THB mm

Consistently growing top line Significantly expanding net profit and NPM

Financial Highlights (Cont’d)

8.7% 9.2% 9.2% 11.4% 14.6% 15.0% 15.4% 53.0% 52.1% 52.8% 50.9% 51.6% 51.7% 53.6% 2014 2015 2016 2017 2018 1H 2018 1H 2019 EBIT Margin GPM

25.0% 12.7% 6.1% 38.4% 48.7% 54.0% 13.7% % YoY Growth

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Financial Highlights (Cont’d)

Steadily improving working capital management

449 402 382 296 258 283

2014 2015 2016 2017 2018 1H 2019

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

2014 2015 2016 2017 2018 1H 2019

DSO (Days) A/R Turnover (Times) 41 42 41 46 41 50 8.8 8.7 8.9 8.0 8.9 7.4

2014 2015 2016 2017 2018 1H 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

434 394 374 297 255 284 0.8 0.9 1.0 1.2 1.4 1.3

2014 2015 2016 2017 2018 1H 2019

DIO (Days) Inventory Turnover (Times)

Days

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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 1,857 741 552 484 492 767 965 0.47 0.33 0.28 0.26 0.42 0.52

2014 2015 2016 2017 2018 1H 2019

Total Equity Total Liabilities D/E 9.7 10.3 10.3 13.3 19.4 20.9

2014 2015 2016 2017 2018 1H 2019

6.4 7.3 7.9 10.5 14.5 14.9

2014 2015 2016 2017 2018 1H 2019

ROA ROE EPS

0.42 0.48 0.51 0.70 1.04 0.58

2014 2015 2016 2017 2018 1H 2019 Percent Percent THB/Share

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Stock Information and Dividends

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

THB

2015 2015 2016 2017 2018 2019 40% 40% 47% 117% 100% 99%

0.42 0.48 0.51 0.70 1.04 0.576 0.07 0.08 0.10 0.14 0.50 0.570 0.1 0.11 0.14 0.68 0.54

0.2 0.4 0.6 0.8 1 1.2 0.2 0.4 0.6 0.8 1 1.2

2014 2015 2016 2017 2018 1H 2019

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

Business Update

Sabina Public Company Limited

434 394 374 297 255 284 0.8 0.9 1.0 1.2 1.4 1.3

2014 2015 2016 2017 2018 1H 2019

DIO (Days) Inventory Turnover (Times) 21

FACTORY

Output 2018 2019 %G 1H2019 Ys 4.7 4.6

• 2%

2.3 Cn 2.7 2.6

• 4%

1.4 Bn 1.4 1.8 29% 0.9 Tp 2.0 1.8

• 10%

0.9 S5 1.4 1.6 14% 0.8 Capacity 12.2 12.4 2% 6.3

2,400 1,400 1,550 1,845 1,805 1,900 1,400 1,450 1,617 1,641 800 1,100 1,200 1,148 1,163

2011 2013 2017 2018 1H 2019

PC Non sewing+PC Sewing

2017 2018

Sourcing GPM 59% Produce GPM 50%

GPM 52% Output (million pcs.) Manpower Production : Sourcing 96% : 4% Working capital and inventory management

• Number of inventory day increased due to the postpone shipment of OEM sector
• Sourcing gains 4% higher margin than production.

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

65% : 35% 82% : 18%

4,609 Sourcing GPM 57% Produce GPM 53% GPM 54%

• The number of sewing line staff is lower while the efficiency increases by 2%.

1H 2019

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Sabina Brand

Launching new collection Cartoon Characters : Mamegoma & Sumikkogurashi Influencers Youtuber

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Sabina Brand

fulfilment

MAD MOISELLE

I N F L U N C E R Madmoiselle Intimates ,‘Festival Collection' , the luxury brand new from Sabina.

Sabina Brand

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Special Campaign Q3 School Tour Mother’s day

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Sabina Brand

ABC TO SML Special Bra

Sabina Brand

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Advertising

LineTV

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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

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ESG Principles

Zero Waste policy 5S Policy 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)

Sewing Cup Sewing Heart

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SABINA PUBLIC COMPANY LIMITED www.sabina.co.th

Appendix

Sabina Public Company Limited

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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) 33

Sabina at a Glance

Wide product offering with ability to capture broad group of customers

Sabina at a Glance (Cont’d)

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Highly penetrated and robust distribution network

Shop Department stores and

• thers

Modern Trade Special Event Distributors Q2 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

100 Shops 2-3 Events per quarter 80 Department stores 93 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 1H 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

Store 2018 1H2019 Dif Department Store 80 80 Discount Store 307 308 1 Shop 100 100 Outlet 93 93 Sum 580 581 1