Dfi Retail Group Holdings Limited · SGX:D01
Dfi Retail — Dairy Farm International Holdings — FY2015 Earnings Presentation
19 slides from Dfi Retail's earnings presentation, Mar 4, 2016
Slide 1: 2015 Full Year Results Presentation
Dairy 2015 Full Year Farm Results Presentation 4 March 2016
Slide 2: Presentation Disclaimer
2015 Full Year Results Presentation 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
Slide 3: Agenda
2015 Full Year Results Presentation Agenda Strategic Context 2015 Highlights Financial Results Outlook 4 March 2016 2
Slide 4: Dairy Farm Strongly Committed to Retail Journey
2015 Full Year Results Presentation Dairy Farm Strongly Committed to Retail Journey Strategy What It Means Winning Clear positioning; Customer centric range discipline Brands Format Strong average unit volumes for each format Leadership Operational Improving shopper experience; investment in stores
Slide 5: Markets Challenging but Businesses Well Positioned
2015 Full Year Results Presentation Markets Challenging but Businesses Well Positioned Immediate outlook uncertain Long-term market position strong Strategy on track Gaining market share in most markets Continuing to invest for long-term growth 4 March 2016 4
Slide 6: Significant Steps Forward despite Margin Pressures
2015 Full Year Results Presentation Significant Steps Forward despite Margin Pressures Sales Underlying profit Operating Up 5% in Down 14% due Cash Flows constant currency to margin squeeze Up 4% Record Year Investments in IT and supply chain for Home Yonghui and investments Furnishings and on Track
Slide 7: Lower Underlying Profit but Strong Operating Cash Flow
2015 Full Year Results Presentation Lower Underlying Profit but Strong Operating △ Cash△Flow CCY (US$ m) 2015 2014 % % Total Sales1 17,907 13,103 37 42 Sales ex-Acquisitions2 13,066 13,073 – 5 Operating Profit3 431 534 19 17 Underlying Net Profit 428 500 14 13 Underlying EPS (US¢) 31.7
Slide 8: All Formats Achieved Constant Currency Sales Growth
2015 Full Year Results Presentation All Formats Achieved Constant Currency Sales Growth △ △ Sales CCY (US$ m) 2015 2014 % % Food 8,053 8,394 4 2 Supermarkets & Hypermarkets 6,172 6,534 6 2 Convenience Stores 1,881 1,860 1 3 Health and Beauty 2,563 2,435 5 9 Home Furnishings 568 497
Slide 9: Supermarkets and Hypermarkets
2015 Full Year Results Presentation Supermarkets and Hypermarkets Supermarkets and Hypermarkets Financial Highlights Business Milestones Geographic Performance Increased Fresh participation: Market share gains in most markets range and quality enhancements, Sales* +4% more direct sourcing Hong
Slide 10: Convenience Stores
2015 Full Year Results Presentation Convenience Stores Convenience Stores Financial Highlights Business Milestones Geographic Performance Ready-to-Eat momentum China: improved sales and sustained Sales +3% profitability 61 new stores in China Hong Kong: market share gains in most categories
Slide 11: Health and Beauty
2015 Full Year Results Presentation Health and Beauty Health & Beauty Financial Highlights Business Milestones Geographic Performance Corporate brands growing HK: market share gains Sales* +8% E-commerce offer evolving in Singapore: good sales growth Singapore and profit improvement Succes
Slide 12: Home Furnishings
2015 Full Year Results Presentation Home Furnishings Home Furnishings Financial Highlights Business Milestones Geographic Performance Record profits and sales; new Hong Kong and Taiwan: METOD kitchen range doing well Sales +18% solid LFL sales growth E-commerce in 2016 Indonesia: very strong
Slide 13: Restaurants
2015 Full Year Results Presentation Restaurants Restaurants Financial Highlights Business Milestones Geographic Performance Brand portfolio addresses Hong Kong solid different market segments Sales +8% (Wildfire, Cheesecake Factory) China expansion continued with casual dining and Japanese P
Slide 14: Profit & Loss (US$ m)
2015 Full Year Results Presentation Profit & Loss (US$ m) 2015 2014 Change % Sales - Including Associates & JVs 17,907 13,103 37% - Ex-Acquisitions1 13,066 13,073 – 2 - Subsidiaries 11,137 11,008 1% Operating Profit3 431 534 19% Share of Results of Associates and JVs 85 69 23% Net Finance Ch
Slide 15: Operating Profit Margin Pressure throughout 2015
2015 Full Year Results Presentation Operating Profit Margin Pressure throughout 2015 △ △ 2015 Margin1 (US$ m) 2015 2014 % FY15 pp 1H15 pp Food 236 299 2.9 0.8 1.1 Supermarkets & Hypermarkets 172 226 2.7 0.9 1.2 Convenience stores 64 73 3.4 0.5 0.5 Health and Beauty 185 219 7.8 1.3 0.
Slide 16: Balance Sheet (US$ m)
2015 Full Year Results Presentation Balance Sheet (US$ m) 2015 2014 Non-current assets 3,381 2,386 Yonghui and Stocks 937 1,011 San Miu investments Debtors 234 252 Other 11 4 Bank balances and other liquid funds 258 662 Lower stock 1,440 1,929 level with Non-current assets held for sale - 1 higher s
Slide 17: Cash Flow (US$ m)
2015 Full Year Results Presentation Cash Flow (US$ m) 2015 2014 Operating Cash Flow 700 676 Operating cash Normal Capex (304) (345) flow up despite lower trading Free Cash Flow 396 331 Asset Sales 3 30 Investments (1,065) (118) Optimising capex Change in Interests in Subsidiaries 16 (2) Net Drawdown
Slide 18: Normal Capex
2015 Full Year Results Presentation Normal Capex Supply Chain / US$345m 9% Others US$304m Continuing long- IT 12% 11% term infrastructure investments 15% Store 29% Refurbishment Maintaining quality 30% of existing estate New More cautious 50% Store 44% approach to new store growth 2014 2015 4 March
Slide 19: 2016 Outlook
2015 Full Year Results Presentation 2016 Outlook Trading conditions uncertain Focus on building stronger businesses with a better consumer offer Sustain long-term infrastructure investment Success in creating market-leading retail businesses is the way we measure ourselves 4 March 2016 18
Dairy Farm International Holdings — FY2015 Earnings Presentation on 6ix