Robinsons Retail Holdings, Inc. · PSE:RRHI

Robinsons Retail — H1 2014 Earnings Presentation

27 slides from Robinsons Retail's earnings presentation, Aug 18, 2014

  1. Slide 1: 1H 2014 Unaudited Earnings Presentation

    1H 2014 Unaudited Earnings Presentation 20140818

  2. Slide 2: Agenda

    Agenda Results Highlights Store Network Consolidated Results Business Segments Working Capital Capital Expenditure Recent Developments 1

  3. Slide 3: 1H 2014 Unaudited Results Highlights

    1H 2014 Unaudited Results Highlights 2

  4. Slide 4: 1H 2014 Store Network

    1H 2014 Store Network Visayas Metro Manila Business units No. of stores Supermarkets 13 Business units No. of stores Department stores 6 Supermarkets 30 DIY stores 17 Department stores 11 Convenience stores 12 DIY stores 45 Drug stores 17 Convenience stores 264 Specialty stores 24 Drug stores 57 Tot

  5. Slide 5: 1H 2014 Store Network

    1H 2014 Store Network 2012 2013 Inc. 1H2013 1H2014 Inc. Supermarkets 74 91 17 75 99 24 Department Stores 36 38 2 36 40 4 DIY Stores 111 126 15 114 131 17 Convenience Stores 336 386 50 345 414 69 Drug Stores* 218 239 21 223 279 56 Specialty Stores 137 184 47 147 217 70 Total 912 1,064 152 940 1,180 2

  6. Slide 6: Consolidated Results

    Consolidated Results Net Sales1 (PHP bn) SSSG (%) 37.0 3.2 3.9% 31.3 3.4 3.0% 3.2% 2.7% 2.3 2.2 3.0 3.8 19.6 2.1 16.3 1.7 3.4 2Q2013 2Q2014 1H2013 1H2014 6.2 1.8 1.2 1.2 1.5 5.5 2.0  18.1% yoy growth in net sales 1.0 1.8 3.4 coming from: 3.1  13.6% from 240 new stores added 18.2 for the period and

  7. Slide 7: 1H 2014 Contribution Per Segment

    1H 2014 Contribution Per Segment Net Sales EBIT EBITDA Breakdown Breakdown Breakdown Discretionary Specialty Specialty Retailing Drug stores stores Specialty stores 36% stores 7.4% 4.2% Drug stores 6.4% 8.5% Convenience 6.5% DIY stores stores Convenience 10.4% 3.1% stores Supermarkets 6.0% Supermark

  8. Slide 8: Consolidated Results

    Consolidated Results Gross profit1 (PHP mm) EBITDA2 (PHP mm) % of Net Sales % of Net Sales 21.3% 21.6% 7.2% 21.3% 7.3% 6.7% 6.6% 20.9% 7,890 6,546 2,446 2,084 4,225 1,403 3,473 1,196  Growing scale pushed GP margin higher 2Q2013 2Q2014 1H2013 1H2014 2Q2013 2Q2014 1H2013 1H2014  Sustained gross mar

  9. Slide 9: Operating Expenses

    Operating Expenses Adjusted operating expenses1 (PHP mm, % of Net Sales) 16.6% 16.4% 16.3% 16.1% Total Opex as % of Net Sales 6,150 Others 5,109 1,172 3.2% Personnel costs and contracted services Rental and utilities 947 3.0%  Increase in OPEX as % 1,853 5.0% of net sales due to high 3,204 1,534 4.

  10. Slide 10: Supermarket Business Segment

    Supermarket Business Segment Net Sales (PHP mm) Gross Profit (PHP mm) EBITDA (PHP mm) 18,168 3,339 1,127 14,999 2,697 836 9,465 1,759 638 7,710 1,419 18.4% 500 6.2% 18.0% 5.6% 6.7% 18.6% 18.4% 6.5% 2Q2013 2Q2014 1H2013 1H2014 2Q2013 2Q2014 1H2013 1H2014 2Q2013 2Q2014 1H2013 1H2014  Increase in sale

  11. Slide 11: Supermarket Business Segment

    Supermarket Business Segment SSSG (%) Store Count 3.8% 3.7% 1.7% 91 99 1.2% 74 75 2Q2013 2Q2014 1H2013 1H2014 2012 2013 1H2013 1H2014  Strong SSSG due to robust sales performance of stores that were opened in 2012 10

  12. Slide 12: Department Store Business Segment

    Department Store Business Segment Net Sales (PHP mm) Gross Profit (PHP mm) EBITDA (PHP mm) 6,165 5,534 1,625 1,454 441 407 3,438 922 282 3,051 272 802 26.4% 26.3% 7.4% 7.2% 26.8% 8.9% 8.2% 26.3% 2Q2013 2Q2014 1H2013 1H2014 2Q2013 2Q2014 1H2013 1H2014 2Q2013 2Q2014 1H2013 1H2014  Increase in sales i

  13. Slide 13: Department Store Business Segment

    Department Store Business Segment SSSG (%) Store Count 3.3% 2.6% 2.3% 40 1.0% 38 36 36 2Q2013 2Q2014 1H2013 1H2014 2012 2013 1H2013 1H2014  SSSG recovered on better product assortment 12

  14. Slide 14: DIY Store Business Segment

    DIY Store Business Segment Net Sales (PHP mm) Gross Profit (PHP mm) EBITDA (PHP mm) 3,833 3,365 1,219 420 1,057 380 2,007 1,776 643 232 566 31.8% 212 31.4% 11.0% 11.3% 31.9% 32.0% 11.6% 12.0% 2Q2013 2Q2014 1H2013 1H2014 2Q2013 2Q2014 1H2013 1H2014 2Q2013 2Q2014 1H2013 1H2014  Growth in net sales dr

  15. Slide 15: DIY Store Business Segment

    DIY Store Business Segment SSSG (%) Store Count 6.5% 6.1% 6.3% 5.0% 131 126 111 114 2Q2013 2Q2014 1H2013 1H2014 2012 2013 1H2013 1H2014  SSSG benefited from sustained residential construction boom, and improvement in merchandise mix 14

  16. Slide 16: Convenience Store Business Segment

    Convenience Store Business Segment System-wide Sales & Net Sales Gross Profit & Royalty Income (PHP mm) (PHP mm) EBITDA (PHP mm) 35.0% 34.9% 3,167 3,312 775 726 35.3% 34.9% 182 147 1,604 1,731 405 571 System-wide sales 368 550 86 77 8.8% 2,077 2,219 302 6.6% Net sales 282 1,041 1,160 8.3% 6.7% 176 2

  17. Slide 17: Convenience Store Business Segment

    Convenience Store Business Segment SSSG (%) Store Count 3.9% 2.0% 414 336 386 345 -1.9% -4.5% 2Q2013 2Q2014 1H2013 1H2014 2012 2013 1H2013 1H2014  Weaker SSSG due to stiffer competition, lower cigarette sales, and supply chain issues 16

  18. Slide 18: Drug Store Business Segment

    Drug Store Business Segment Net Sales (PHP mm) Gross Profit (PHP mm) EBITDA (PHP mm) 3,441 562 3,017 490 160 149 1,761 283 1,519 256 16.3% 83 82 16.2% 5.0% 4.7% 16.1% 4.7% 16.9% 5.5% 2Q2013 2Q2014 1H2013 1H2014 2Q2013 2Q2014 1H2013 1H2014 2Q2013 2Q2014 1H2013 1H2014  Growth in sales in 1H 2014 came

  19. Slide 19: Drug Store Business Segment

    Drug Store Business Segment SSSG (%) Store Count 5.4% 4.5% 279 218 239 223 2Q2014 1H2014 2012 2013 1H2013 1H2014  Strong SSSG due to the unusually cold weather conditions early this year * SSD was only acquired in July 2012 and consolidated into Robinsons Retail beginning August 2012. 18

  20. Slide 20: Specialty Store Business Segment

    Specialty Store Business Segment Net Sales (PHP mm) Gross Profit (PHP mm) EBITDA (PHP mm) 3,401 941 155 156 2,503 672 1,854 515 96 1,295 27.7% 345 69 6.2% 4.6% 26.9% 27.8% 5.2% 26.6% 5.3% 2Q2013 2Q2014 1H2013 1H2014 2Q2013 2Q2014 1H2013 1H2014 2Q2013 2Q2014 1H2013 1H2014  Growth in net sales mainly

  21. Slide 21: Specialty Store Business Segment

    Specialty Store Business Segment SSSG (%) Store Count 10.5% 10.5% 9.0% 5.1% 217 184 137 147 2Q2013 2Q2014 1H2013 1H2014 2012 2013 1H2013 1H2014  Higher 2Q SSSG due to stellar SSSG of toys, appliances and Daiso Japan, compensating the negative SSSG of int’l fashion brands 20

  22. Slide 22: Working Capital

    Working Capital Working capital days trend 4.7 6.0 3.9 Trade receivable days1 2012 2013 1H2014 48.5 47.8 47.5 Inventory days2 2012 2013 1H2014 96.9 83.3 67.5 Trade payable days3 2012 2013 1H2014 -44.4 -28.8 -16.1 Cash conversion cycle4 2012 2013 1H2014  Negative working capital sustained in 1H 2014

  23. Slide 23: Capital Expenditure

    Capital Expenditure Capital expenditure breakdown (PHP mm)1 Supermarkets Department stores DIY stores Convenience stores Drug stores Specialty stores % of group’s net sales 3.6% 4.2% 4.2% 2,797 18% 2,094 3% 9% 11% 10% 8% 4% 1,566 11% 15% 19% 5% 21% 15% 10% 45% 15% 45% 36% 2012 2013 1H2014 1 Capital

  24. Slide 24: Recent Developments: Supermarket – Robinsons Easymart

    Recent Developments Supermarket – Robinsons Easymart  Robinsons Supermarket recently launched a new format, called Robinsons Easymart, a network of neighborhood grocery stores  The first four (4) branches were opened in Tarlac City, North Luzon last August 15, 2014. Seven (7) more branches are sla

  25. Slide 25: Consolidated Financial Statements

    Consolidated Financial Statements Consolidated Statements of Financial Position (Unaudited) 31-Dec PHP mm 6M 2014 2013 ASSETS Current assets Cash and cash equivalents 9,981 30,136 Short-term investments 6,838 335 Merchandise inventories 7,637 7,029 Other current assets 2,063 2,116 Total Current Asse

  26. Slide 26: Consolidated Financial Statements (cont'd)

    Consolidated Financial Statements (cont’d) Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended June 30 Six Months Ended June 30 PHP mm 2Q 2014 2Q 2013 6M 2014 6M 2013 Sales - net of sales discounts and returns 19,553 16,303 36,979 31,317 Cost of merchandise sold 15,328 12,

  27. Slide 27: Consolidated Financial Statements (cont'd)

    Consolidated Financial Statements (cont’d) Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30 PHP mm 6M 2014 6M 2013 CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax 2,105 1,744 Adjustments for: Depreciation and amortization 587 467 Equity in net earnings of an a

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