Dfi Retail Group Holdings Limited · SGX:D01
Dfi Retail — Dairy Farm International Holdings — H1 2014 Earnings Presentation
20 slides from Dfi Retail's earnings presentation, 2014
Slide 1: Dairy Farm International Holdings Limited 2014 Interim Presentation
Dairy Farm International Holdings Limited 2014 Interim Presentation
Slide 2: Presentation Disclaimer
Presentation Disclaimer The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions, investors should rely on their own examination of Dairy Farm and consult with their own legal, tax, business and/or fin
Slide 3: Results Overview, Business Highlights, Financial Results, Outlook
RESULTS OVERVIEW BUSINESS HIGHLIGHTS FINANCIAL RESULTS OUTLOOK 2
Slide 4: Solid Results in Most Areas but Further Disappointment in Food
Solid Results in Most Areas but Further Disappointment in Food Sales up 5% with growth in all divisions Underlying profit marginally behind last year The Food business, especially Singapore and Indonesia is below par Good performances in Health & Beauty, Home Furnishings (IKEA) and Restauran
Slide 5: Growth in Sales but Reported Profits Slightly Down
Growth in Sales but Reported Profits Slightly Down (US$ m) 1H2013 1H2014 Change % Sales (Incl. Associates & JVs) 1 6,033 6,312 5% Underlying Net Profit1 228 224 2% Underlying EPS (US¢) 16.89 16.56 2% Capex 162 184 14% Net Cash 421 568 35% Note: Sales include 100% associates & joint venture
Slide 6: Strong Sales Growth in All Formats, except Food
Strong Sales Growth in All Formats, except Food SALES (US$ m) 1H2013 1H2014 Change % Food1 4,082 4,132 1% Health and Beauty 1 1,084 1,185 9% Home Furnishings 186 226 22% Restaurants 681 769 13% 6,033 6,312 5% Note: Sales include 100% associates & joint ventures 5 1 Forex adjusted sales gro
Slide 7: Continuing Margin Pressures across All Businesses
Continuing Margin Pressures across All Businesses OPERATING PROFIT Margin (US$ m) 1H2013 1H2014 Margin Change Subsidiaries Food 162 149 3.8% 0.4 pts Health and Beauty 96 97 8.4% 0.6 pts Home Furnishings 17 20 8.7% 0.8 pts 275 266 5.0% 0.4 pts Restaurants (Maxim's –100%) 64 66 8.6% 0.8 pts
Slide 8: Pioneers in Asian Retail: Vision, Mission and Strategies
Vision Pioneers in ASIAN RETAIL Mission Bringing to ASIAN CONSUMERS the Benefits of Modern Retail Strategies Format Profitable Passionate Brands Operations Leadership Growth People Retail brands Excellence in Based on that win For each of our retail operations attractive format Who love retail consu
Slide 9: Multiple Formats with Clear Strategies
Multiple Formats with Clear Strategies Supermarkets & Shape growth in Greater China and Hypermarkets Southeast Asia Convenience Selective growth in Greater China and Stores Southeast Asia Build truly pan-Asian Health and Beauty Health & Beauty business Home Partner with IKEA in Asia Furnishings Rest
Slide 10: Portfolio Balance is a Key Strength of Dairy Farm
Portfolio Balance is a Key Strength of Dairy Farm 1H2014 Restaurants US$6.3b US$332m 12% 20% Home 4% Furnishings 6% 19% Health & Beauty 14% 29% 9% Convenience Stores 51% 36% Supermarkets & Hypermarkets Sales Operating Profit Note: Sales include 100% associates & joint ventures Operating Profit inclu
Slide 11: Clear Challenges for Supermarkets & Hypermarkets
Clear Challenges for Supermarkets & Hypermarkets Overall priorities − Fresh − Corporate brand − Mass market and upscale formats Strong performance in Hong Kong Weakness in Singapore and Indonesia Continuing turnaround in Malaysia 10
Slide 12: Convenience Stores Transformation Taking Shape
Convenience Stores Transformation Taking Shape Overall priorities − Fresh / Ready to Eat − Services − Tighter execution (esp. supply chain) Hong Kong and Macau solid Continued store growth in China Cost pressures and store rationalisation in Singapore Indonesia working on business model 11
Slide 13: Health and Beauty Format Making Good Progress
Health and Beauty Format Making Good Progress Overall priorities − Health-led health and beauty − Consistency in execution − Corporate brand − Category alignment LFL growth solid in most markets Continued strong performance in Hong Kong and Macau Cost pressures impacting margins in Singapore
Slide 14: Strong Performance for Home Furnishings
Strong Performance for Home Furnishings Overall priorities − Continue to enhance price and quality perception − Focus on new markets − Explore opportunities for multi-channeling Taiwan and Hong Kong both strong First IKEA in Indonesia on schedule for October opening 13
Slide 15: Maxim's Stays Healthy
Maxim’s Stays Healthy Growth in both sales and profits in Hong Kong and China Opening of new food factory in Hong Kong New franchise relationship with The Cheesecake Factory Starbucks expansion in Vietnam 14
Slide 16: Profit & Loss Account
Profit & Loss Account (US$ m) 1H2013 1H2014 Change % Sales - Including Associates & JVs 6,033 6,312 5% - Subsidiaries 5,102 5,299 4% Operating Profit1 258 256 1% Share of Results of Associates 22 22 2% Net Finance Income / (Charges) (5) 1 Profit Before Tax 275 279 2% Tax (44) (44) 1% Pro
Slide 17: Balance Sheet
Balance Sheet (US$ m) 31/12/2013 30/06/2014 Intangible Assets 408 430 Property 453 492 Other Fixed Assets 636 652 Associates and Joint Ventures 370 371 Net Working Capital (1,041) (1,005) Net Cash 638 568 Others (87) (107) Total Equity 1,377 1,401 Trade Creditors to Stock Ratio 1.6x 1.6x 16
Slide 18: Cash Flow
Cash Flow (US$ m) 1H2013 1H2014 Change % Operating Cash Flow 239 313 31% Normal Capex (162) (184) 14% Free Cash Flow 77 129 68% Asset Sales 5 22 327% Investment Capex (18) (1) 98% Capital Contribution from 57 - Non-controlling interest Dividends Paid (223) (223) – Net Cash Flow (102) (73)
Slide 19: Capex
Capex US$184m Supermarket IT / DCs / (30%) Admin (13%) Home Food (69%) Furnishings (9%) Hypermarkets (32%) H&B (9%) Convenience Stores (7%) Note: Exclude investments 18
Slide 20: Outlook
Outlook All formats focused on consumer centric business models Trading conditions unlikely to change in balance of the year Continuing efforts to strengthen supply chain capability Significant IT transformation in progress Consolidation of investment in the Philippines 19
Dairy Farm International Holdings — H1 2014 Earnings Presentation on 6ix