Dfi Retail Group Holdings Limited · SGX:D01
Dfi Retail — Dairy Farm International Holdings — FY2020 Earnings Presentation
31 slides from Dfi Retail's earnings presentation, Mar 12, 2021
Slide 1: 2020 Dairy Farm Full Year Results Presentation
2020 Dairy Farm Full Year Results Presentation 12 March 2021
Slide 2: Presentation Disclaimer
Presentation Disclaimer This Document (the “Document”) is for information purposes only. This Document is not intended to form the basis of any investment decision nor does it constitute a recommendation or advice as to how the reader should act on any matter. The information in this Document is an
Slide 3: Agenda
Agenda 1. 2020 Highlights 2. Financial Results 3. Business Performance Review 4. Outlook 3
Slide 4: Business Change Supports Resilience
Business Change Supports Resilience • Total sales up 2% • Profit underpinned by portfolio diversity and business change • All divisions’ trading patterns affected by COVID-19 o Greatest adverse impact within Health & Beauty o Significant sales and profit growth in Grocery Retail o Solid trading in H
Slide 5: Agenda
Agenda 1. 2020 Highlights 2. Financial Results 3. Business Performance Review 4. Outlook 5
Slide 6: Sales and Underlying Profit
Sales and Underlying Profit (US$’ m) FY2020 FY2019 %∆ Total Sales Including Associates & JVs 28,159 27,665 +2 Subsidiaries 10,269 11,192 -8 Subsidiaries Underlying Operating Profit 412 437 -6 Share of Associates/JV Underlying Profit 76 115 -34 Underlying Profit Attributable to Shareholders 276 321 -
Slide 7: Sales Summary
Sales Summary Sales (US$’ m) FY2020 FY2019 %∆ Food 7,447 7,376 +1 Grocery retail 5,348 5,190 +3 Convenience stores 2,100 2,185 -4 Health and Beauty 1,990 3,051 -35 IKEA 832 766 +9 Key Associates* Maxim's 2,064 2,701 -24 Yonghui 12,627 10,895 +16 RRHI 3,159 2,837 +11 * 100% of Maxim’s, Yonghui (12 mo
Slide 8: Subsidiaries Underlying Operating Profit
Subsidiaries Underlying Operating Profit IFRS16 Separately Identified Underlying Op. Profit (US$’ m) FY2020 FY2019 $∆ %∆ Food 324 145 +179 +123 Grocery retail 267 63 +204 +324 Convenience stores 57 82 -25 -31 Health and Beauty 66 296 -230 -78 IKEA 71 43 +28 +65 SG&A (120) (143) +23 +16 Underlying Op
Slide 9: Solid Cash Conversion
Solid Cash Conversion (US$’ m) FY2020 FY2019 Underlying EBITDAR 1,395 1,439 Principal Elements of Lease Payments (706) (790) ∆Working Capital (102) (77) Net Financing Costs (143) (160) Dividends Received 68 89 Other Operating Cash Flow (149) (3) Operating Cash Flow after Lease Payments 362 498 Norma
Slide 10: Agenda
Agenda 1. 2020 Highlights 2. Financial Results 3. Business Performance Review 4. Outlook 10
Slide 11: Strategic Priorities and Improvement Programmes
Strategic Priorities and Improvement Programmes Strategic Priorities Improvement Programmes Building capability Fresh Labour Supply Chain Driving Productivity Growth in Efficiency digital China innovation Assortment Procurement Optimisation Centralisation Revitalising Maintaining SE Asia HK strength
Slide 12: Building Capability
Building Capability • Continued investment in developing talent • Strong mix of internal promotions and external hires Building • Additional investment in digital and CRM capability Capability • Graduate recruitment programme now in place • In-store training enhanced through mobile technology • Cult
Slide 13: Growth in China
Growth in China • Lockdowns constrained foot traffic and ready-to-eat category sales • Over 200 new stores opened despite COVID-19 7-Eleven • New DC underpins future store growth • IT systems transformation underway • Store optimisation plan completed • Greater Bay Area the focus for future growth M
Slide 14: Maintaining Hong Kong Strength
Maintaining Hong Kong Strength • Significantly impacted by government COVID controls • Strong balance sheet supports portfolio resilience Maxim’s • International expansion strategy reducing HK dependency • Mooncake sales remain solid • Sales and profit severely impacted by reduced tourist trade Heal
Slide 15: Meadows – Driving Own Brand Success
Meadows – Driving Own Brand Success 30 BRANDS YOU CAN’T REMEMBER 15
Slide 16: 1 Brand You Can't Forget
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Slide 17: Meadows – Driving Own Brand Success
Meadows – Driving Own Brand Success Over 600 SKUs launched across 3 major markets Brand represented in Grocery, Convenience and Health & Beauty SKUs available in grocery, chilled, fresh and frozen Already number 1 brand across Dairy Farm 17
Slide 18: IKEA
IKEA • Successful store opening in Macau and Taiwan • North Asia sales grew despite COVID-19 disruption North Asia • Strong e-commerce sales underpinning business growth • Improving sales trend through the year • Adverse impact of COVID-19 trading restrictions offset by: o Annualisation of Sentul st
Slide 19: Revitalising Southeast Asia
Revitalising Southeast Asia • Discretionary retail impacted by COVID-19 Robinsons • Rustan integration supporting margin accretion Retail • Acquired Rose Pharmacy • DF own brand supply agreement in place • New format developed and landed in over 20 locations Health & • EDLP value position introduced
Slide 20: Giant Refresh
Giant Refresh Over 50 stores refreshed in Singapore >> 20
Slide 21: Giant Refresh
Giant Refresh “Lower Prices that Last” price investment campaign across c.600 SKUs Full category range & space optimisation plan implemented Enhanced capital investment programme landed Strongest LFL sales growth in 5 years 21
Slide 22: Giant Refresh
Giant Refresh >> 22
Slide 23: New Upscale Formats Landed
New Upscale Formats Landed New consistent upscale format launched in 3 markets Mercato, CS Fresh, Marketplace Strong fresh food emphasis; Demographic ranging 50% improvement in sales productivity 60% improvement in fresh sales Rollout across c.40 stores planned in 2021 23
Slide 24: Mercato
Mercato 24
Slide 25: CS Fresh
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Slide 26: Market Place
Market Place 26
Slide 27: Driving Digital Innovation
Driving Digital Innovation • Over 3 million members joined in five months • Over 50 billion points earned yuu Rewards • Most downloaded app in 2020 • 98% brand awareness • Customer personalisation programmes in place • E-commerce capability introduced across multiple markets • Double-digit e-commerc
Slide 28: Agenda
Agenda 1. 2020 Highlights 2. Financial Results 3. Business Performance Review 4. Outlook 28
Slide 29: Reshaping Dairy Farm – Multi-Year Plan
Reshaping Dairy Farm – 3 Phase Multi-Year Plan Making a Difference for Building a Strong Base Delivering Consistently Well Every Customer 1. Build a strong leadership team 1. Establish leadership strength in 1. High performing teams with strong depth succession plans Performance 2. Define store bran
Slide 30: Transformation Progress
Transformation Progress • Transformation plan on track, despite significant external impacts • Confidence in underlying strength of business performance • Strong progress on key improvement programmes • Supply chain challenges well controlled • COVID-19 impact remains uncertain across each market •
Slide 31: Q&A Session
Q&A Session 2020 Full Year Results Presentation
Dairy Farm International Holdings — FY2020 Earnings Presentation on 6ix