President Chain Store Corporation · TWSE:2912
President Chain Store — FY2015 Earnings Presentation
26 slides from President Chain Store's earnings presentation, Mar 28, 2016
Slide 1: President Chain Store Corp. Analyst Conference
President Chain Store Corp. Analyst Conference March 28, 2016 pcsc
Slide 2: Agenda
Agenda 2015 Achievements and Results 2016 Outlook Ending Remarks Q&A pcsc 2
Slide 3: Achievements in 2015
Achievements in 2015 1. Be listed on MSCI Global Sustainability Indexes and TWSE Corporate Governance 100 Index, ranked as top 5% by Taiwan Corporate Governance Evaluation System. 2. Continue to be listed as the top 250 retailers around the world by Deloitte. 3. Establish Material and Quality Assura
Slide 4: Achievements in 2015
Achievements in 2015 6. Upgrade the quality of point-collection campaign by cooperating with renowned brands. 7. Diversify store formats with distinctive design to enrich customers experience . 8. Integrate ibon and ibon APP to provide more convenient E-services. 9. Issue icash co-branded credit car
Slide 5: 2015 Financial Results
2015 Financial Results pcsc 5
Slide 6: Financial Highlights
Financial Highlights Historical revenue and profit Unit:NTD billion 2011 2012 2013 2014 2015 2014 V.S. (adjusted) 2015 Revenue 122.7 124.8 126.9 131.3 133.4 +1.6% (Company Only) Revenue 189.3 192.6 200.6 200.4 205.5 +2.5% (Consolidated) Net Profit 6.4 5.9 8.0 9.1 8.2 -9.8% EPS (NT$) 6.11 5.69 7.73
Slide 7: Profitability Trend
Profitability Trend Company Only Unit:NTD billion 40% 33.3% 20% 10 8% 32.4% 6.4% 7% 30% 15% 8 6.3% 6% 14.3% 14.4% 6 5% 20% 10% 4% 4 3% 10% 5% 2% 2 1% 0% 0% 0 0% 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 NI 6.4 5.9 8.0 9.1 8.2 ROE 31.1% 30.0% 36.1% 36.2% 30.7% NI Margin 5.2% 4.7% 6.3% 6.9% 6.
Slide 8: Subsidiaries Contribution Trend
Subsidiaries Contribution Trend 3,500 40.0% 3,000 30.0% 2,500 2,000 20.0% 1,500 1,000 10.0% 500 0.0% - Unit:NTD million (500) -10.0% Unit:NTD million 2014 2011 2012 2013 2015 (adjusted) Investment gain or Loss 620 (1) 1,936 2,961 2,190 Profit contribution 9.76% -0.02% 24.09% 32.57% 26.59% Unit:NTD b
Slide 9: Cash Flow Trend
Cash Flow Trend Unit:NTD billion Net Cash(Company only) Net Cash(Consolidated) 25.0 12.0 10.9 10.1 19.0 19.6 10.0 20.0 18.2 8.3 8.0 14.9 6.7 15.0 13.3 6.0 6.0 10.0 4.0 2.0 5.0 0.0 0.0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Note：Numbers are under ROC GAAP in 2011, under IFRS in 2012~2015.
Slide 10: Cash Dividend Trend
Cash Dividend Trend 8 95% 7 90% 6 5 85% 4 80% 3 2 75% 1 Unit:NTD 0 70% 2011 2012 2013 2014 2015 Cash Dividend 4.8 4.85 6.0 7.0 7.2 Total Dividend 4.8 4.85 6.0 7.0 7.2 Payout Ratio 78.56% 74.27% 77.61% 80.06% 90.85% Note：2015 cash dividend has not been approved by AGM. pcsc 10
Slide 11: 2016 Outlook
2016 Outlook pcsc 11
Slide 12: 7 Strategies for Sustainable Growth
7 Strategies for Sustainable Growth Sustainable Growth Progress Provide Upscale Differenti Extend Leverage Environ- Persistently quality, CITY -ate store Digital group mental, tasty, and CAFE format synergy Social, convenient Platform brand and Governa fresh food product -nce service mix Uniqueness、
Slide 13: Progress Persistently
Progress Persistently Adjust franchise system to improve profitability of franchisees. Our service is differentiated by members with store- by-store, item-by-item management expertise. Unit：NTD in thousands Franchise System 87.80% 86.80% 86.22% 單店單品的 Store-by- 200－ Professional 管理能力 store, item- m
Slide 14: Provide Quality, Tasty, and Convenient Fresh Food Service
Provide Quality, Tasty, and Convenient Fresh Food Service Food Safety New technology Premium Quality Strengthen Provide new Upgrade value traceability product lines of products mechanism . with new tech. with new Establish More variety, equipment. Material and better taste , Further expa
Slide 15: Upscale CITY CAFE Brand
Upscale CITY CAFE Brand Grow CITY CAFE brand by upgrading coffee bean quality, developing coffee masters, and strengthening marketing campaign. New product line “CITY fresh ” is introduced to leverage the successful experience of CITY CAFE . Year 2015 Year 2005 5028 stores 300 Stores Year 2013 10.
Slide 16: Diversify Store Format
Diversify Store Format Bigger format stores account for 70% of total store number. Build stores with diversified design to create unique experience for customers. You come, you see, you stay, and you will experience the difference! A 7-11 store with reading room and comfortable seating area. pcsc
Slide 17: Diversify Store Format (continue)
Diversify Store Format(continue) A 7-11 store characterized by cat and magic. pcsc 17
Slide 18: Diversify Store Format (continue)
Diversify Store Format(continue) A 7-11 store characterized by the image of ship and anchor. pcsc 18
Slide 19: Differentiate Product Mix
Differentiate Product Mix New private-labeled brand, iseLect , is launched for your own style. Exclusive and quality brands products make 7-11 always a fresh shopping place. pcsc 19
Slide 20: Extend Digital Platform
Extend Digital Platform With ibon APP, ibon services become more accessible. With high accessibility and solid infrastructure, 7-11 is the most convenient digital payment platform. With group synergy and resources, icash 2.0 and OPENPOINT make 7-11 the most valuable points exchange platform. Fina
Slide 21: Leverage Group Synergy
Leverage Group Synergy Cosmed, Takkyubin, Starbucks, and Books.com showed significant growth in 2015. New store formats, new services are the drivers for sustainable growth. pcsc 21
Slide 22: Grow Overseas Market
Grow Overseas Market Shanghai Starbucks will exceed 1,200 stores in 2016. Philippine 7-11’s main growth drivers are aggressive expansion, fresh food, Coffee and E-service. Shanghai 7-11’s PSD sales keeps double-digit growth. Continue to focus on the operations of CVS, mini- supermarket, and fast
Slide 23: Environmental, Social and Governance
Environmental, Social and Governance Happiness, Gung Ho, and sustainability, the concept of our ESG are built in our operational strategies. We value well-being of Happiness franchisees and employees. Sustainability Gung Ho We reduce energy usage We are a community center that intensity of 7-11 sto
Slide 24: Cash Flow Projection in 2016
Cash Flow Projection in 2016 Cash inflows from NTD11~12B operating activities Cash outflows from NTD 3B investing activities Cash outflows from NTD 7.5 B financing activities pcsc 24
Slide 25: Ending Remarks
Ending Remarks Jui-Tang, Chen pcsc 25
Slide 26: Q&A
Q&A pcsc 26