Robinsons Retail Holdings, Inc. · PSE:RRHI

Robinsons Retail — Q1 2015 Earnings Presentation

27 slides from Robinsons Retail's earnings presentation, May 19, 2015

  1. Slide 1: 1Q2015 Unaudited Earnings Presentation

    1Q2015 Unaudited Earnings Presentation May 2015 20150519

  2. Slide 2: Agenda

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

  3. Slide 3: 1Q2015 Unaudited Results Highlights

    1Q2015 Unaudited Results Highlights 2

  4. Slide 4: 1Q2015 Store Network

    1Q2015 Store Network 1,356stores Nationwide Visayas Metro Manila Business units No. of stores Supermarkets 15 Business units No. of stores Department stores 6 Supermarkets 36 DIY stores 34 Department stores 13 Convenience stores 17 DIY stores 47 Drug stores 25 Convenience stores 297 Specialty stores

  5. Slide 5: 1Q2015 Stores and Gross Floor Area Statistics

    1Q2015 Stores and Gross Floor Area Statistics Number of Gross Floor Stores 1,327 1,356 Area (GFA) 1,064 1,145 (in ‘000 sqm) 252 206 252 RLC 233 888 858 1,075 896 Outside RLC 756 912 1,104 798 2013 2014 1Q2014 1Q2015 2013 2014 1Q2014 1Q2015 GFA GFA Contribution Contribution Department by Lessor by Se

  6. Slide 6: Consolidated Results: Net Sales

    Consolidated Results Net Sales1 (₱ bn) SSSG (%) 80.4 3.6% 3.4% 7.3 2.6% 2.4% 67.3 7.1 5.3 4.6 19.7 6.3 8.5 17.4 1.7 4.2 1.4 1.9 2013 2014 1Q2014 1Q2015 7.1 13.7 1.7 1.3 1.1 2.2 11.9 1.8 3.0  13.1% yoy net sales 2.7 growth in 1Q2015: 32.5 39.2 9.7% from new stores 9.7 3.4% from SSSG 8.7 2013 2014

  7. Slide 7: 1Q2015 Contribution Per Segment

    1Q2015 Contribution Per Segment Net Sales EBIT EBITDA Breakdown Breakdown Breakdown Discretionary Specialty Specialty Specialty stores Retailing stores stores Drug stores 2.9% 35% 8.7% 8.7% 9.3% Drug stores DIY stores Convenience 7.3% 11.2% stores Convenience 0.8% stores DIY stores 5.0% Supermarkets

  8. Slide 8: Consolidated Results: Gross Profit, EBITDA, EBIT, Net Income

    Consolidated Results Gross Profit1 (₱ mm) EBITDA2 (₱ mm) % of Net Sales % of Net Sales 21.6% 21.7% 7.2% 6.0% 6.0% 21.3% 7.5% 21.0% 17,429 14,312 5,768 5,063 3,665 4,252 1,043 1,189 Growing 2013 2014 1Q2014 1Q2015 2013 2014 1Q2014 1Q2015 scale as well as additional EBIT (₱ mm) Net Income (₱ mm) % of

  9. Slide 9: Operating Expenses

    Operating Expenses Adjusted Operating Expenses1 (₱ mm, % of Net Sales) 16.9% 17.5% 16.3% 15.7% 13,095 % of Net Sales Rental and utilities 10,569 Personnel costs and contracted services  Increase in OPEX as % of net 6,549 8.1% Others sales due to: 5,386 8.0%  unprecedented new store openings with s

  10. Slide 10: Supermarket Business Segment

    Supermarket Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 39,199 7,362 32,491 2,664 6,039 2,240 18.8% 18.6% 6.9% 6.8% 9,689 8,703 1,580 1,783 489 559 18.4% 18.2% 5.6% 5.8% 2013 2014 1Q2014 1Q2015 2013 2014 1Q2014 1Q2015 2013 2014 1Q2014 1Q2015  Increase in sales in 1Q2015 larg

  11. Slide 11: Supermarket Business Segment: SSSG and Store Count

    Supermarket Business Segment SSSG (%) Store Count 3.3% 3.5% 3.4% 111 113 91 98 1.0% 2013 2014 1Q2014 1Q2015 2013 2014 1Q2014 1Q2015  Strong SSSG due to higher basket size 10

  12. Slide 12: Department Store Segment

    Department Store Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 13,738 3,607 11,877 3,116 1,056 987 26.3% 26.2% 8.3% 7.7% 2,727 2,985 774 703 171 159 25.8% 25.9% 5.8% 5.7% 2013 2014 1Q2014 1Q2015 2013 2014 1Q2014 1Q2015 2013 2014 1Q2014 1Q2015  Increase in sales in 1Q2015 drive

  13. Slide 13: Department Store: SSSG and Store Count

    Department Store Business Segment SSSG (%) Store Count 5.1% 4.8% 42 42 40 38 1.1% 0.5% 2013 2014 1Q2014 1Q2015 2013 2014 1Q2014 1Q2015  Robust SSSG due to higher basket size 12

  14. Slide 14: DIY Segment

    DIY Store Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 8,521 7,095 2,641 911 2,194 770 31.0% 30.9% 10.9% 2,208 692 10.7% 1,825 576 188 212 31.6% 31.4% 10.3% 9.6% 2013 2014 1Q2014 1Q2015 2013 2014 1Q2014 1Q2015 2013 2014 1Q2014 1Q2015  Growth in net sales driven by new store s

  15. Slide 15: DIY: SSSG and Store Count

    DIY Store Business Segment SSSG (%) Store Count 7.2% 7.6% 161 159 6.0% 132 4.8% 126 2013 2014 1Q2014 1Q2015 2013 2014 1Q2014 1Q2015  Healthy SSSG due to sustained strong residential construction activities 14

  16. Slide 16: Convenience Segment

    Convenience Store Business Segment System-wide Sales & Net Sales Gross Profit & Royalty Income (₱ mm) (₱ mm) EBITDA (₱ mm) 36.1% 6,711 34.9% 6,292 1,603 1,459 433 351 365 34.7% 289 34.7% System-wide sales 4,616 8.3% 4,208 1,581 1,796 1,094 1,170 454 6.3% 370 Net sales 121 70 59 100 1,059 1,256 269 3

  17. Slide 17: Convenience: SSSG and Store Count

    Convenience Store Business Segment SSSG (%) Store Count 450 473 386 402 3.3% 5.0% -2.6% -7.6% 2013 2014 1Q2014 1Q2015 2013 2014 1Q2014 1Q2015  SSSG turned around as cigarette high sales base effect now gone and supply chain has improved 16

  18. Slide 18: Drug Segment

    Drug Store Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 7,061 6,287 1,129 1,013 320 321 16.1% 5.1% 16.0% 4.5% 1,680 1,876 279 312 78 87 16.6% 16.6% 4.7% 4.6% 2013 2014 1Q2014 1Q2015 2013 2014 1Q2014 1Q2015 2013 2014 1Q2014 1Q2015  Growth in sales in 1Q2015 propelled by the sa

  19. Slide 19: Drug: SSSG and Store Count

    Drug Store Business Segment SSSG (%) Store Count 6.0% 6.2% 320 330 239 265 1.0% -0.9% 2013 2014 1Q2014 1Q2015 2013 2014 1Q2014 1Q2015 Flattish 1Q2015 SSSG due to high base effect in January 2014 18

  20. Slide 20: Specialty Segment

    Specialty Store Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 7,889 2,247 533 5,813 1,583 397 28.5% 1,917 27.2% 566 6.8% 6.8% 1,547 426 104 29.5% 61 27.5% 3.9% 5.4% 2013 2014 1Q2014 1Q2015 2013 2014 1Q2014 1Q2015 2013 2014 1Q2014 1Q2015  Growth in net sales driven by the stron

  21. Slide 21: Specialty: SSSG and Store Count

    Specialty Store Business Segment SSSG (%) Store Count 7.4% 6.4% 243 239 208 184 3.1% -0.4% 2013 2014 1Q2014 1Q2015 2013 2014 1Q2014 1Q2015  Healthy SSSG due double- digit SSSG of Toys “R” Us and Daiso Japan 20

  22. Slide 22: Working Capital

    Working Capital Working capital days trend 6.0 6.9 4.7 3.3 Trade receivable days1 2012 2013 2014 1Q2015 52.1 56.7 47.8 48.5 Inventory days2 2012 2013 2014 1Q2015 96.9 83.3 82.0 62.0 Trade payable days3 2012 2013 2014 1Q2015 -44.4 -28.8 -22.9 -2.0 Cash conversion cycle4 2012 2013 2014 1Q2015  Negati

  23. Slide 23: Capital Expenditure

    Capital Expenditure Capital expenditure breakdown (₱ mm)1 Supermarkets Department stores DIY stores Convenience stores Drug stores Specialty stores % of group’s net sales 4.4% 4.8% 3.8% 3,876 15% 2,963 3% 15% 17% 3% 748 11% 11% 13% 7% 5% 13% 14% 22% 10% 11% 48% 42% 39% 2013 2014 1Q2015 1 Capital exp

  24. Slide 24: Recent Developments

    Recent Developments DIY Store Specialty Store  The first store of True Home by  Our first Costa Coffee shop will True Value opened in Robinsons open in the middle of this year Magnolia last April 30, 2015 23

  25. Slide 25: Consolidated Financial Statements

    Consolidated Financial Statements Consolidated Statements of Financial Position (Unaudited) March 31 December 31 PHP mm 2015 2014 ASSETS Current assets Cash and cash equivalents 7,151 9,970 Short-term investments 7 1,853 Merchandise inventories 9,747 8,993 Other current assets 2,571 2,897 Total Curr

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

    Consolidated Financial Statements (cont’d) Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended March 31 PHP mm 2015 2014 Sales - net of sales discounts and returns 19,715 17,426 Cost of merchandise sold 15,463 13,761 Gross Profit 4,252 3,665 Royalty, rent and other revenue

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

    Consolidated Financial Statements (cont’d) Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31 PHP mm 2015 2014 CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax 1,023 865 Adjustments for: Depreciation and amortization 399 285 Interest expense 5 5 Interest incom

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