Cp All Public Company Limited · SET:CPALL
Cp All Public — Q2 2016 Earnings Presentation
31 slides from Cp All Public's earnings presentation, August 2016
Slide 1: CP ALL 2Q16 Presentation Results
CP ALL Public Company Limited 2Q16 : Presentation Results August 2016
Slide 2: Financial Highlights
Financial Highlights Unit : Million Baht 2Q15 2Q16 % Chg 1H15 1H16 % Chg Company Only Total Revenue 63,506 72,943 +14.9% 121,956 137,886 +13.1% Net Profit 3,599 5,281 +46.7% 5,610 7,714 +37.5% Unit : Million Baht 2Q15 2Q16 % Chg 1H15 1H16 % Chg Consolidated Total Revenue 100,676 114,629 +13.9% 199,4
Slide 3: Business Segment Performance
Business Segment Performance CVS & Others and Cash & Carry Revenue Contribution Earnings Before Tax Contribution before elimination before elimination (Unit: Million Baht) (Unit: Million Baht) 396,126 433,960 238,772 17,349 21,408 12,734 36% 36% 36% 30% 22% 33% 70% 78% 64% 64% 64% 67% 2014 2015 1H16
Slide 4: We care for every trust
we care for every trust we share success through giving back we cherish the quality of convenience food we have engagement with Thai society 4
Slide 5: Store Types Breakdown
Store Types Breakdown Continued to expand with approximately 700 stores in 2016 BKK & Suburban / Provincial Corporate / Franchise / Sub-area Stores Stores 8,832 9,043 9,252 8,832 9,043 9,252 8,127 666 671 7% 8,127 7,429 667 7,429 641 588 4,257 4,310 4,434 4,910 5,021 5,123 55% 3,916 48% 4,034 4,479
Slide 6: Same store sales growth
Same store sales growth Positive SSSG is sustained 2Q16 Average daily sales / store 81,212 Baht 2013 2014 2015 1Q16 2Q16 SSS Growth +5.7% -2.6% +0.9% +2.6% +5.0% 2015 1Q15 2Q15 1Q16 2Q16 Spending per ticket (Baht) 62 63 63 63 64 No.of customer per store per day (Customers) 1,230 1,191 1,228 1,217 1,
Slide 7: Product Sales Mix and Gross Margin Mix
Product Sales Mix and Gross Margin Mix Overall gross margin improved YOY Product Sales Mix (excl. T&E) 27.5% 27.7% 28.1% 28.0% 27.5% 29.2% 28.8% Food Services i.e. RTE 72.5% 72.3% 71.9% 72.0% 72.5% 70.8% 71.2% Processed Food Beverage 2013 2014 2015 1Q15 2Q15 1Q16 2Q16 Foods Non Foods Gross Margin Mi
Slide 8: SG&A Expenses
SG&A Expenses An increase of CVS marketing expenses well offset by other operating income 250,000 2Q16 SG&A Expenses-to-Total Revenue 2Q16 SG&A Expenses Breakdown (Unit: Million Baht) Consolidated 200,000 Personnel 24.0% 25.8% 20.7% 150,000 18.5% 18.2% 18.4% 18.7% Others ** 17.9% 17.3% 14.1% 100,000
Slide 9: Financial Performance - Consolidated
Financial Performance - Consolidated Net profit growth mainly driven by CVS operation and lower interest expenses Total Revenue Total Costs (Unit: Million Baht) (Unit: Million Baht) +13.9% YoY +13.6% YoY 405,893 380,424 371,301 350,194 284,670 269,611 98,781 100,676 108,786 114,629 92,230 94,625 101
Slide 10: Financial Performance – Company Only
Financial Performance – Company Only Decent profits growth and lower interest expenses Total Revenue Total Costs (Unit: Million Baht) (Unit: Million Baht) +14.9% YoY +13.4% YoY 249,758 217,495 228,996 228,745 203,667 211,279 58,450 63,506 64,943 72,943 57,470 59,990 65,194 53,893 2013 2014 2015 1Q15
Slide 11: Profitability Ratios - Consolidated
Profitability Ratios - Consolidated Improved gross margin and net margin YOY Gross Margin (Sales & Services) EBIT Margin 22.6% 21.3% 21.8% 21.4% 21.7% 21.6% 21.8% 5.7% 6.3% 6.6% 6.0% 6.5% 6.2% 5.3% 2013 2014 2015 1Q15 2Q15 1Q16 2Q16 2013 2014 2015 1Q15 2Q15 1Q16 2Q16 EBITDA Margin Net Margin 7.4% 8.
Slide 12: Profitability Ratios – Company Only
Profitability Ratios – Company Only Improved gross margin and net margin YOY Gross Margin (Sales & Services) EBIT Margin 10.6% 28.5% 8.4% 9.5% 26.3% 27.7% 28.0% 27.7% 28.0% 28.4% 7.7% 7.8% 7.6% 6.4% 2013 2014 2015 1Q15 2Q15 1Q16 2Q16 2013 2014 2015 1Q15 2Q15 1Q16 2Q16 EBITDA Margin Net Margin 11.2%
Slide 13: Leverage Ratios – Consolidated
Leverage Ratios – Consolidated Moved downward due to equity growth and cashflow improvement Net Debt to Equity Bond Covenants * Year Net Debt to Equity 2015 5.0x 2016 3.5x 4.9x 4.7x 5.1x 4.2x 4.0x 2017 2.5x 2018 - 2022 2.0x 2013 2014 2015 1H15 1H16 2016 2017F * Equity as per Bond Covenants shall be
Slide 14: Working Capital – Consolidated
Working Capital – Consolidated Negative cash cycle days Inventory Days Account Payable Days (Unit: Days) (Unit: Days) 25.1 27.1 28.0 26.7 24.6 27.2 24.3 75.5 73.6 72.2 66.1 60.6 64.6 59.6 2013 2014 2015 1Q15 2Q15 1Q16 2Q16 2013 2014 2015 1Q15 2Q15 1Q16 2Q16 Cash Cycle Days Cash (Unit: Days) (Unit: M
Slide 15: Working Capital – Company Only
Working Capital – Company Only Negative cash cycle days Inventory Days Account Payable Days (Unit: Days) (Unit: Days) 21.2 23.0 22.6 22.6 21.3 22.2 20.7 64.6 69.5 69.2 64.2 60.8 63.6 60.0 2013 2014 2015 1Q15 2Q15 1Q16 2Q16 2013 2014 2015 1Q15 2Q15 1Q16 2Q16 Cash Cycle Days Cash (Unit: Days) (Unit: M
Slide 16: Key Performance Ratios
Key Performance Ratios Improved ROAA and ROAE Consolidated Statement ROAA ROAE 46.9% 43.1% 49.0% 37.6% 40.2% 41.6% 34.3% 5.6% 4.4% 4.3% 5.0% 5.2% 3.2% 4.2% 2013 2014 2015 1Q15 2Q15 1Q16 2Q16 2013 2014 2015 1Q15 2Q15 1Q16 2Q16 Company Only Statement ROAA ROAE 57.1% 42.3% 49.0% 40.6% 33.9% 29.2% 32.2%
Slide 17: 7-Eleven Future and CAPEX plan
7 – Eleven Future and CAPEX plan Continued store expansion and supporting infrastructure 7-Eleven Stores Expansion 2016 Projected CAPEX Continue to expand around 700 stores in 2016 MB Stores expansion 3,000 – 3,200 Milestone: 10,000 stores by 2018 Stores renovation 1,300 – 1,400 Investment in subsid
Slide 18: Appendix
Appendix
Slide 19: Share Capital Information
Share Capital Information Major Shareholders (as of May 4, 2016) Price (Aug 3, 2016) : Bt 52.00 - CPF (subsidiaries) 32.8% Hi/Low (12-month) : Bt 53.00 / 39.00 per share - Thai NVDR 7.1% - Charoen Pokphand Group 5.8% Avg. daily turnover : 1,421 MB - Chase Nominees Limited 4.3% No. of shares : 8,983,
Slide 20: Group Structure of CPALL
Group Structure of CPALL As of June 30, 2016 99.99% 99.99% 99.99% 99.99% 99.99% 99.99% 99.99% 72.64% 99.99% 99.99% 99.99% 97.88% Counter CPRAM CP Retailink Gosoft MAM Heart Suksapiwat Dynamic Thai Panyatara ALL 24 Makro Service (Thailand) Management Smart Card Training Shopping Thailand 100% Lotus D
Slide 21: Balance Sheet – Consolidated
Balance Sheet – Consolidated Balance Sheet 2013 2014 2015 2Q15 2Q16 Unit : Million Baht Cash 24,632 32,204 21,518 15,566 17,066 I nv entory 19,916 22,167 25,072 21,415 23,561 Other current assets 9,414 10,313 10,382 9,923 9,708 Fixed assets 71,606 80,534 89,781 84,043 93,921 Other assets 178,439 181
Slide 22: Balance Sheet – Company Only
Balance Sheet – Company Only Balance Sheet 2013 2014 2015 2Q15 2Q16 Unit : Million Baht Cash 15,642 24,864 15,330 10,308 10,237 I nv entory 9,219 10,242 10,622 10,303 10,579 Other current assets 6,124 6,346 6,599 5,670 5,907 Fixed assets 18,343 20,036 22,441 20,982 23,496 Other assets 206,801 205,69
Slide 23: Income Statement and Cash flow Statement - Consolidated
Income Statement and Cash flow Statement - Consolidated Income Statement % YOY % YOY 2013 2014 2015 2Q15 2Q16 1H15 1H16 Unit : Million Baht Growth Growth Net sales 266,008 349,464 383,254 95,227 107,674 13.1% 188,595 210,356 11.5% Serv ices income 6,277 8,302 8,563 2,065 2,324 12.5% 4,251 4,610 8.5%
Slide 24: Income Statement and Cash flow Statement – Company Only
Income Statement and Cash flow Statement – Company Only Income Statement % YOY % YOY 2013 2014 2015 2Q15 2Q16 1H15 1H16 Unit : Million Baht Growth Growth Net sales 199,247 208,015 228,412 57,443 64,971 13.1% 111,607 125,513 12.5% Serv ices income 2,422 2,761 2,738 686 681 (0.7%) 1,380 1,357 (1.7%) O
Slide 25: Key Performance Ratios – Consolidated
Key Performance Ratios – Consolidated Financial Ratios 2013 2014 2015 2Q15 2Q16 1H15 1H16 Gross margin (sales & serv ice) (%) 22.6% 21.3% 21.8% 21.7% 21.8% 21.6% 21.7% Operating margin (%) 5.3% 5.7% 6.3% 6.0% 6.2% 6.3% 6.4% EBI TDA margin (%) 6.9% 7.4% 8.1% 7.8% 8.0% 8.1% 8.2% Net margin (%) 3.7% 2.
Slide 26: Key Performance Ratios – Company Only
Key Performance Ratios – Company Only Financial Ratios 2013 2014 2015 2Q15 2Q16 1H15 1H16 Gross margin (sales & serv ice) (%) 26.3% 27.7% 28.0% 28.0% 28.5% 27.8% 28.5% Operating margin (%) 6.4% 7.7% 8.4% 9.5% 10.6% 8.7% 9.2% EBI TDA margin (%) 7.9% 9.5% 10.2% 11.2% 12.3% 10.4% 10.8% Net margin (%) 4
Slide 27: Balance Sheet – Makro
Balance Sheet – Makro Balance Sheet 2013 2014 2015 2Q15 2Q16 Unit : Million Baht Cash 5,011 4,564 2,230 1,260 931 I nv entory 9,792 10,628 12,954 9,621 11,426 Other current assets 1,633 2,214 2,142 1,721 1,970 Fixed assets 18,211 23,767 27,039 25,286 28,750 Other assets 1,458 2,492 3,545 3,074 3,818
Slide 28: Income Statement and Cash flow Statement – Makro
Income Statement and Cash flow Statement – Makro Income Statement % YOY % YOY 2013 2014 2015 2Q15 2Q16 1H15 1H16 Unit : Million Baht Growth Growth Net sales 126,638 139,271 152,604 37,324 42,247 13.2% 76,178 83,870 10.1% Serv ices income 2,449 2,558 2,613 611 656 7.5% 1,345 1,403 4.4% Other operatin
Slide 29: Key Performance Ratios – Makro
Key Performance Ratios – Makro Financial Ratios 2013 2014 2015 2Q15 2Q16 1H15 1H16 Gross margin (sales) (%) 8.7% 9.0% 9.6% 9.1% 8.5% 9.5% 8.7% Gross margin (Total rev enue) (%) 10.9% 11.1% 11.5% 10.9% 10.3% 11.4% 10.6% Operating margin (%) 4.2% 4.5% 4.5% 4.0% 3.4% 4.6% 3.6% EBI TDA margin (%) 5.3% 5
Slide 30: CPALL Corporate Governance
CPALL Corporate Governance Corporate Governance Shareholder External Consultant Committee Acknowledgement Consist of independent directors with Assess the current state of CG Formally on AGM agenda to report on main duties and responsibilities as the progress of elevating CPALL CG Identify and analy
Slide 31: The Progress of CPALL Corporate Governance Enhancement
The Progress of CPALL Corporate Governance Enhancement The External Consultant evaluated CPALL CG by conducting gap analysis since 1Q16 in various areas e.g. CG policy, conflict of interest, code of ethics/conduct, risk management policy, insider trading policy, and public disclosure. Following the
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