Investor Presentation - listed...
Transcript of Investor Presentation - listed...
Investor Presentation September 2015
R E T A I L
Important Notice The information contained in this presentation is for information purposes only and does
not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for share in Robinson Department Store Public Company Limited (“ROBINS” and shares in ROBINS, “shares”) in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever.
This presentation may include information which is forward-looking in nature. Forward-looking information involve known and unknown risks, uncertainties and other factors which may impact on the actual outcomes, including economic conditions in the markets in which ROBINS operates and general achievement of ROBINS business forecasts, which will cause the actual results, performance or achievements of ROBINS to differ, perhaps materially, from the results, performance or achievements expressed or implied in this presentation.
This presentation has been prepared by ROBINS. The information in this presentation has not been independently verified.
No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. None of the ROBINS or any of its agents or advisers, or any of their respective affiliates, advisers or representatives, shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.
This presentation is made, furnished and distributed for information purposes only. No part of this presentation shall be relied upon directly or indirectly for any investment decision-making or for any other purposes.
This presentation and all other information, materials or documents provided in connection therewith, shall not, either in whole or in part, be reproduced, redistributed or made available to any other person, save in strict compliance with all applicable laws.
Agenda
Company Profile
Company Plan & Strategy
Financial Performance
3
Company Profile
4
Opened the first
store in Bangkok in 1979
Started to
expand outside Bangkok
Temporarily ceased
store expansion due to
the ASEAN economic
crisis in 1997
- Resumed the store
expansion in 2005
- Launched “The 1 Card”
as a membership card to
support the company’s loyalty program in 2006
Exploit Vietnam
opportunity, under
“Robins” Dept. Store
7 10 11 9 8 10 11 BKK
- 4 9 9 13 24 28 UPC
Listed on SET in 1992
CRC became a
major shareholder
Shifted towards fashion and
lifestyle products by spinning
off supermarket, electrical
appliances and sport accessories department
Re-launched a new
image as “Robinson
…Your Life Vitalizer” in 2003
- Launched a new store
model, “Robinson Lifestyle
Center”, and unparalleled
shopping experience in 2010
- Launched a new flagship
store at Rama9 as a part of
rebranding campaign to
enhance brand awareness in 2011
2 VN
1
3
1979-1992 1995 1996-1998 2000-2004 2005-2009 2010-2013 2014 2015
More than 36 years in retail business
5
Major shareholder and free float
• Strong synergy with CRC helps ROBINS to
strengthen supply chain management and back
office system, and enhance economies of scale.
• Those specialty stores and supermarket make
ROBINS store as a one stop shopping destination
and attract people traffic to stores.
Central Group’s portfolio of dominant retail brands in Thailand
CRC 54% Free float
46%
As of Mar 2015
Foreign Institutions
48%
Thai Institutions
23%
Individuals 29%
Strong synergy within Central Group
6
Robinson
Powerbuy Supersports
40.00% 40.00%
Powerbuy and Supersports are the most famous category killers in home electronics
and sport products in Thailand, offering wide range of product selections with good
price and services
40% Investment in Powerbuy and Supersports
7
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2005
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2011
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20
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UPC BKK
34 stores 39 stores 42 stores
2013 2014 2015F
10 in BKK
24 in UPC 11 in BKK
28 in UPC Thailand
Total stores
10 in BKK
32 in UPC
Total saleable area: 480,000 sqm
Total rental area: 324,000 sqm
As of July 2015
Currently 40 stores nationwide
8
Province Store Format Opening Date
Rayong In Shopping Complex 27 May 2015
Burirum Lifestyle Center 29 Jul 2015
Srisaman Lifestyle Center 4Q15
Maesod Lifestyle Center 4Q15
4 New stores in 2015
Total investment: THB 4 bn
9
Store formats
Lifestyle Center
In shopping complex
• Own shopping mall with size of 35,000-40,000 sqm
• Newly developed format integrating shopping mall and department store ambiance
to enhance customers’ shopping experience
• Total investment size of THB 700-1,000 mn
• Lease shopping mall space to open Robinson Department Store
• Saleable area 10,000-14,000 sqm
• Total investment size of THB 200-500 mn
10
Company Plan & Strategy
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TO PROFITABLY G OW
OUR MARKET SHARE
OUR VISION
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OUR MISSION
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1. To put our customers and employees and suppliers at the heart of our business decisions.
2. To be locally relevant in our merchandising offering and our shopping experience.
3. To increase sales by expanding our customer base and increasing customer spend.
4. To make retail more than just shopping.
5. To invest in the future growth of our stores and people.
6. A Professional and Entrepreneurial approach by our management team to make it happen.
7. Attracting, retaining and growing the most talented people in the Retail Industry.
8. Exceeding the expectations of our shareholders, customers and employees.
Robinson
Department Store
Robinson
Lifestyle Centre International Brand
Management Robins
Vietnam
Tier 1 :
Rama 9
Udornthani
Chiangmai
Sriracha
Tier 2:
FashionIsland
Rangsit
Khonkaen
Had Yai Jungcelon
Chonburi
Bangna
Rattanatibet
Nakonsrithamrat2 (2016)
Tier 3:
Phitsanulok
Sukhumvit
Suratthani
Srinakarin
Chiangrai
Ubolratchtani 2
Bangrak
Rayong (2015)
Ayutthaya
Phuket
Tier 4:
Lampang
Bangkhae
Ubolratchtani 1
Close: Ladya (May-15)
Tier 1 :
Chanthaburi
Ratchaburi
Trang
Saraburi
Tier 2:
Nakornsithamrat 1
Kanchanaburi
Chachoengsao
Suphanburi
Srisaman (2015)
Lopburi (2016)
Tier 3:
Sakonnakorn
Surin
Roi Et
SamutPrakan
Mukdaharn
Burirum (2015)
Maesod (2015)
Tier 4:
Prachinburi
ROBINS @Royal City, Hanoi
ROBINS @Crescent,
Ho Chi Min City
25 17 7 2
60THB Store:
(Lifestyle Mall)
2016
R E T A I L
The Tier of store reflects the size of the opportunity (customer spending power and number of transactions)
TO PROFITABLY GROW OUR MARKET SHARE
14
OUR OBJECTIVES
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To Profitably G ow Our Market Share
To continue to drive sales
To improve our gross margin
To manage the cost base
Investing for future growth
TO CONTINUE TO DRIVE SALES
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TO CONTINUE TO DRIVE SALES
17
• Annualized new stores & renovations
• Footfall & higher conversion rates
• Average transaction values
• New stores
• International brands
• On-line
LFL Sales
Non LFL Sales
TO CONTINUE TO DRIVE SALES
18
Category %Contribution
2014 2015/2016 2020
Health & Beauty 14.9% 14.9% 14.9%
Ladies’ Fashion 7.3% 6.5% 6.0%
Shoes & Handbags & Luggage 11.3% 11.6% 12.0%
Jeans & Unisex 10.4% 10.6% 10.6%
Lingeries 7.1% 7.1% 7.1%
Watch & Jewellery 8.1% 7.5% 7.2%
Men’s Fashion 11.5% 11.1% 11.0%
Sport Fashion 1.9% 3.0% 3.3%
Home Electric & Hardware 14.2% 14.0% 14.0%
Kids 12.2% 12.5% 12.6%
Just Buy/60Baht 1.0% 1.2% 1.3%
Total 100.0% 100.0% 100.0%
R E T A I LBREAKDOWN OF OUR SALES
TO CONTINUE TO DRIVE SALES
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• Renovation of existing stores
• Playing into trends (Millennial Focus)
(Health, Sport, 60 Baht)
• Expand our customer base
• Attract new customers
• Increase customer spend
20
TO IMPROVE OUR GROSS MARGIN
TO IMPROVE OUR GROSS MARGIN
21
Take greater accountability for our business
• Differentiation
• Margin benefit
• Playing into trends
• Expansion opportunities outside
of Department Stores to reach
additional customers
Nike is No.1 millennial brand.
TO IMPROVE OUR GROSS MARGIN
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• Proven successes
• Wider availability
• Greater choice
Aeropostale is a Top 15 millennial brand.
2016
TO IMPROVE OUR GROSS MARGIN 2014
23
Robinson Brands International Brands (exclusively operated by Robinson)
Key Consignment Brands
0%
91%
9%
Significant focus on securing the supply base of Differentiation (House-Brands)
TO IMPROVE OUR GROSS MARGIN 2015/2016
24
Significant focus on securing the supply base of Differentiation (House-Brands)
Robinson Brands International Brands (exclusively operated by Robinson)
Key Consignment Brands
(Lifestyle Mall)
8%
82%
10%
TO IMPROVE OUR GROSS MARGIN 2020
25
Significant focus on securing the supply base of Differentiation (House-Brands)
Robinson Brands International Brands (exclusively operated by Robinson)
Key Consignment Brands
(Lifestyle Mall)
13%
75%
12%
NEW
NEW
TO IMPROVE OUR GROSS MARGIN
26
• Number One for Accessories in USA. • Claire’s Stores 3,500 Stores worldwide • Target Market 3-35 years old Females. • World’s Leading Ear Piercing Specialist.
International Brands
• 18 Doors in 2015 • 51 Doors in 3 years
TO IMPROVE OUR GROSS MARGIN
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International Brands
• Over 300 Stores Across 14 Countries. • Sales just under 1B US$. • Retails over 70,000 unique products
every year
• 3 Doors in 2015 • 15 Doors in 3 years
TO IMPROVE OUR GROSS MARGIN
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International Brands
• One of the Largest Family Footwear Retailers in the world with more than 4,400 stores in more than 35 countries.
• Positioning is to be the First Choice for style and value in footwear for customers.
• 16 Doors in 2015 • 41 Doors in 3 years
TO IMPROVE OUR GROSS MARGIN
29
International Brands
• Specialty retailer of casual apparel and accessories in USA.
• Target Market 14-17 years old young women and men.
• Focus selection of high-quality, active-oriented fashion and fashion basic merchandise at compelling values.
Opening Feb 2016
• 10 Doors in 2016 • 25 Doors in 3 years
NEW
TO MANAGE THE COST BASE
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TO MANAGE THE COST BASE
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• Realize savings on new and renovated stores
• Operational efficiencies
• Invest where customer sees/feels the difference
• Head count existing, new and head office structure
MAKE IT HAPPEN.
INVESTING FOR FUTURE GROWTH 2015-2020
32
INVESTING FOR FUTURE GROWTH 2015-2020 NEW STORE PIPELINE
2015
Rayong CPN
Burirum Srisamarn Maesod 42
2016
Nakornsrithamrat 2 CPN
Lifestyle #18 Nov 44 Confirm
2017
CPN Lifestyle #19 Lifestyle #20 47
Plan
2018
CPN Lifestyle #21 Lifestyle #22 Lifestyle #23 51
2019
CPN Lifestyle #24 Lifestyle #25 Lifestyle #26 55
2020
CPN Lifestyle #27 Lifestyle #28 Lifestyle #29 59
INVESTING FOR FUTURE GROWTH 2015-2020
34
• 4 Stores opened in 2015
• 1 Department Store opening 2016
• 1 Lifestyle Malls opening 2016
• 25-150 MB per store
• All top 20 will have investment over the next 3 years
New stores
Renovations
KEY AREAS FOR INVESTMENT
R E T A I L
KEY AREAS FOR INVESTMENT
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1. Investing in New Growth Categories/Playing Into Trends Reallocating space from underperforming categories to new and higher
performing categories and services
No.1 Health & Beauty
No.1 Sneaker (Sports Fashion) Stores
60 Baht business
2. Overhauling Robinson Existing Store Real Estate Space management and renovation with investment in visual
merchandise across all Top20 and potential stores over the next 3 years
3. To Make Retail More Than Just Shopping
Introducing new services to drive footfall into our stores and increase
dwell time e.g. F&B, Ear Piercing, Nail Bar, Kids Play Area, Optician
New innovative store environments
KEY AREAS FOR INVESTMENT
37
4. Increasing Our Customer Base by The Expansion of The International Brands (and House Differentiation)
International Differentiation (House-Brands)
Payless FOF Ladies
Claire’s Cuizimate Home
BabyShop Pacific Union Unisex
Mades/Yves Rocher Ohio Ladies
Aeropostale (New 2016) Just Buy 60 Baht
Robinson@Home
Robinson Luggage
Emilio Valentino Men
Significant focus on securing the supply base of Differentiation (House-Brands)
KEY AREAS FOR INVESTMENT
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5. Improving Our Relationship and Support for Our Consignment Business Including Product Availability, Presentation and Service
We will be locally relevant in our merchandise offer across all our
Department Stores.
Significant support for consignment (Top brands) to amplify their presence across all stores and help invest in infrastructure to support their brands growth (Top sellers, replenishment, locations, stockroom, IT, people)
Our in-store experience will be improved by a focus on presentation and merchandising standards.
Invest in training of management and store teams to improve the quality and consistency of customer service.
KEY AREAS FOR INVESTMENT
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6. Improving Our Gross Margins Our Gross margin has shown no improvement due to significantly heavy
promotional activity to drive sales. (and a dependency on consignment business)
Robinson wants to reposition the business with a better balance between full-price and discount and reduce the level of discounting and markdown activity to improve overall GP:
- Reducing The number of never ending promotions
- More “Light and shade”
- Value For Money during non promotional periods
- Move promotions to when customers have cash to spend e.g. PayDay
KEY AREAS FOR INVESTMENT
40
7. Realising Efficiencies
Capex savings on new and renovated stores with energy saving
initiatives
A more productive store network on a smaller footprint to improve sales per sqm. e.g. Seacon Square, Chiangmai, Tier3/4 Lifestyle Malls
Head count existing and new stores
8. Becoming a Digitally Led Retailer 2020
Focus on Click & Collect
Online infrastructure and supply chain initiatives
KEY AREAS FOR INVESTMENT
41
9. Putting The Right Resources in Place for The Future Development of Our Business
A complete review of head office function and roles and responsibilities
to underpin our key strategies:
- Re-organizing key areas of support functions to align with new
strategies priorities
- Continued implementing of future focused culture
- Supported by investment in technology systems
SUMMARY
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• Focus on sales and margin g owth • Investing in key existing stores • Investing for future g owth in our people, stores and retail
innovation • Playing into trends • New exclusive International brands to deliver additional
market share (new sales channels) • Significant focus on cost management and efficiencies • St ong business fundamentals • Putting our customer, employee and supplier at the hea t of
our business decision
To Profitably G ow our Market Share.
Financial Performance
43
GDP & Consumption Growth
Year GDP Export Consumption
2013 2.8% -0.1% 0.8%
2014 0.9% -0.3% 0.6%
2015E*
(18-May-15
(16-Feb-15
2.7%-3.2%
3.0%-4.0%
3.5%-4.5%
-3.5%
0.2%
3.5%
1.8%
2.3%)
2.9%)
*NESDB, as of 17 August 2015
Source: Bank of Thailand, NESDB and UTCC
Consumer Confident Index Export (%YoY)
65
70
75
80
85
90
Ju
l-14
Au
g-1
4
Se
p-1
4
Oct-
14
No
v-1
4
De
c-1
4
Ja
n-1
5
Feb-1
5
Ma
r-15
Ap
r-15
Ma
y-1
5
Ju
n-1
5
Ju
l-15 -10.0%
-5.0%
0.0%
5.0%
Ju
l-14
Au
g-1
4
Se
p-1
4
Oct-
14
No
v-1
4
De
c-1
4
Ja
n-1
5
Feb
-15
Ma
r-15
Ap
r-1
5
Ma
y-1
5
Jun-1
5
• NESDB revised down 2015 GDP
growth for the third times this year
from 3.5% to 3.0%.
• Overall economy remained sluggish
QoQ with no sign of recovery in
economic key indicators.
Economic Conditions
44
17,630 21,620 24,300 23,896 11,896
2011 2012 2013 2014 6M15
5,500 5,860
2Q14 2Q15
Net Sales
Remark: SSSG Calculation based on number of stores fully operated throughout the previous year i.e. in 2015 there were 33 stores.
Growth 2011 2012 2013 2014 6M15 2Q14 2Q15
Same store sales 12.0% 10.3% 2.9% -5.8% -3.9% -7.0% -1.0%
Total store sales 19.2% 22.6% 12.4% -1.7% 4.0% 11.1% 6.5%
6.5% YoY 4.0% YoY
% Growth : Total Store Sales vs. Same Store Sales
THB mn
45
953 1,090 1,300 1,858 1,245
2011 2012 2013 2014 6M15
Gross Profit & %Gross Margin
Investment Income
1,346 1,440
24.5% 24.6%
2Q14 2Q15
4,304 5,309 5,914 5,843 2,931
24.4% 24.6% 24.3% 24.5% 24.6%
2011 2012 2013 2014 6M15 GP % GPM
7.0% YoY
3.2% YoY
439 622
2Q14 2Q15
41.9% YoY 45.5% YoY
2011 2012 2013 2014 2Q15
Rental area (sq.m.) 166,000 186,000 234,000 310,000 310,000
THB mn
THB mn
46
3,752 4,782 5,686 6,328 3,349
21.3% 22.1% 23.4%
26.5% 28.2%
16.8% 17.2% 17.6% 19.3%
20.3%
2011 2012 2013 2014 6M15
SG&A %SG&A to sales %Operating cost to sales
1,492 1,720
27.1% 29.4%
19.9% 21.2%
2Q14 2Q15
SG&A vs. Operating Cost
13.9% YoY 15.3% YoY
0%
2%
4%
6%
8%
2011 2012 2013 2014 6M15
Personnel
D&A
Utilities
Rent
Marketing
THB mn
47
1,997 2,255 2,289 2,234 1,273
11.3% 10.4%
9.4% 9.3%
10.7%
2011 2012* 2013* 2014 6M15
Operating Profit %Operating Margin
473 562
8.6%
9.6%
2Q14 2Q15
Operating Profit & %Operating Margin
Operating profit = EBIT - share of profit of associates *2012 and 2013 excluded non-recurring items
18.7% YoY 13.6% YoY
THB mn
48
205 402 358 404 211
2011 2012 2013 2014 6M15
Associates Income (POWERBUY & SUPERSPORT)
EBIT & %EBIT Margin
121 93
2Q14 2Q15
-23.6% YoY -1.4% YoY
595 654
10.8% 11.2%
2Q14 2Q15
2,202 2,657 2,647 2,638 1,483
12.5% 12.3%
10.9% 11.0%
12.5%
2011 2012* 2013* 2014 6M15
EBIT %EBIT Margin
10.1% YoY
11.2%YoY
*2012 and 2013 excluded non-recurring items
THB mn
THB mn
49
Core Profit & %Core Profit Margin
440 440
8.0% 7.5%
2Q14 2Q15
1,453 1,917 1,951 1,927 1,055
8.2% 8.9%
8.0% 8.1% 8.9%
2011 2012* 2013* 2014 6M15
Net Profit %Net Profit Margin
*2012 and 2013 excluded non-recurring items. Changed in deferred tax in 4Q12 bring net profit down by 413 MB.
-0.1% YoY 7.7% YoY
319 347
5.8% 5.9%
2Q14 2Q15
1,248 1,515 1,592 1,523 844
7.1% 7.0% 6.6% 6.4%
7.1%
2011 2012* 2013* 2014 6M15
Core Profit %Core Profit Margin
8.8% YoY 10.2%YoY
Core net profit = net profit - share of profit of associates – non recurring items
Net Profit & %Net Profit Margin
THB mn
THB mn
50
EBITDA & %EBITDA Margin
871 1,037
15.8%
17.7%
2Q14 2Q15
2,782 3,311 3,707 3,939 2,203
15.8% 15.3% 15.3% 16.5%
18.5%
2011 2012* 2013* 2014 6M15
EBITDA %EBITDA Margin
19.1% YoY 14.4% YoY
EBITDA = EBIT + Depreciation and Amortization + – non cash items
(exclude share of net profit from associates)
*2012 and 2013 excluded non-recurring item
THB mn
51
Strong Financial Position
-0.29
-0.36
-0.44
-0.33 -0.37
-0.17
0.06
0.19
2008 2009 2010 2011 2012 2013 2014 2015
Net DE(x)
Consolidated Financial Statements as of 30 June 2015
(THB mn)
Cash + current investments 1,001
PP&E + leasehold rights 16,573
Total assets 22,984
Liabilities 9,916
Share capital 3,943
Legal reserve 394
Retained earnings 7,835
Total equity 13,067
52
Statement of Income
(Unit : THB mn) 2Q15 2Q14 6M15 6M14
Revenue from sale of goods 5,860 5,500 11,896 11,441
Investment income 622 439 1,245 855
Other income 220 181 446 366
Total income 6,702 6,120 13,587 12,663
Cost of sale of goods 4,420 4,154 8,965 8,602
Selling and administrative expenses 1,720 1,492 3,349 2,941
Finance costs 19 9 37 10
Total expenses 6,159 5,656 12,351 11,553
Share of profit of associates 93 121 211 214
Profit before income tax expense 635 585 1,446 1,324
Income tax expense 150 99 293 230
Net Profit 440 440 1,054 979
Balance Sheets
(Unit : THB mn) 30-Jun-15 31-Dec-14 31-Jun-15 31-Dec-14
Assets Liabilities & Equity
Cash and cash equivalents 966 1,833 Trade accounts payable 3,655 4,245
Current investments 35 88 S-T loan from fin. Inst. 2,454 2,574
Trade accounts receivable 614 877 Other current liabilities 2,504 2,937
Inventories 1,552 1,509 Non-current liabilities 1,303 306
Other current assets 350 312 Total liabilities 9,916 10,062
Non-current assets 19,466 18,482 Total equity 13,067 13,040
Total assets 22,984 23,102 Total liabilities & equity 22,984 23,102
53
Investor Relations Robinson Department Store Public
Company Limited
Tel. +662 169 2500 Ext. 4750-2