Dfi Retail Group Holdings Limited · SGX:D01

Dfi Retail — Dairy Farm International Holdings — H1 2017 Earnings Presentation

18 slides from Dfi Retail's earnings presentation, Aug 4, 2017

  1. Slide 1: 2017 Interim Results Presentation

    2017 Interim Results Presentation 4th August 2017

  2. 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

  3. Slide 3: Agenda

    Agenda 2017 First Half Highlights Regional Review Format Review Financial Results Outlook 4 August 2017 3

  4. Slide 4: Sales mixed, profits up

    Sales mixed, profits up  Consolidated sales flat*; total sales up 6%*  Underlying net profit up 6%* to US$211m  Sales and profit growth in most divisions  Greater China driving performance  Strong performances from Yonghui and Maxim’s  Unchanged interim dividend of US¢ 6.50 per share *In const

  5. Slide 5: Greater China driving overall results

    Greater China driving overall results Greater China Southeast Asia 60% 40% Sales +3% -3% Op. Profit +9% 87% 13% -36% Sales and operating profit of subsidiaries in constant currency 4 August 2017 5

  6. Slide 6: Varied performance across our key markets

    Varied performance across our key markets Sales*      Op. Profit*      Increase Difficult LFL sales & Increased Growth in Factors in visitor trading store growth competition non-food arrivals conditions * In constant currency 4 August 2017 6

  7. Slide 7: Supers & Hypers holding back performance

    Supers & Hypers holding back performance Sales Op Profit -3% -20% +4% +27% +4% +11% +4% +4% +8% +13% +15% +57% All in constant currency versus 1H 2016 *Restaurants share of profit after tax 4 August 2017 7

  8. Slide 8: Supermarkets and Hypermarkets

    Supermarkets and Hypermarkets Fresh and private label remain key priorities  Challenges in certain markets  Fresh and private label participation up  Supply chain investment continues  Agreed to acquire the remaining interest in RSCI 4 August 2017 8

  9. Slide 9: Convenience Stores

    Convenience Stores Ready-to-Eat and Guangdong expansion offer big opportunities  Hong Kong main profit driver  RTE participation up  Continuing range innovation with 7-Eleven Japan collaboration  Alternative store formats 4 August 2017 9

  10. Slide 10: Health and Beauty

    Health and Beauty Operational improvement has shown good results  Private label participation flat  Increased focus on beauty  Growth in exclusive products  Improved stock availability with SAP implementation  Digital innovation 4 August 2017 10

  11. Slide 11: Home Furnishings

    Home Furnishings Improving accessibility and customer experience  4th Hong Kong store to open in 4Q 2017  Land purchase for 2nd Indonesia store  Online sales growth in all markets  Piloting parcel pick-up at selected 7-Eleven HK stores 4 August 2017 11

  12. Slide 12: Restaurants

    Restaurants Concept and product innovation driving growth at Maxim’s  Reached 1,000th store milestone  Strong growth in China  The Cheesecake Factory Hong Kong launched in May  New Shake Shack franchise in Hong Kong & Macau 4 August 2017 12

  13. Slide 13: Flat sales with improving profit

    Flat sales with improving profit Profit and Loss (US$'m) 1H 2017 %△ CCY %△ Sales - Including Associates & JVs 10,448  3  6 - Subsidaries 5,505  1 n - Operating Profit 201  2  1 Share of Results of Associates and JVs 62  33  36 Underlying Net Profit 211  6  6 Underlying EPS (US¢) 15.63  6 

  14. Slide 14: Supers & Hypers hold back Group performance

    Supers & Hypers hold back Group performance △ △ Sales (US$'m) 1H 2017 % CCY % Food 3,972  3  1 Supermarkets & Hypermarkets 3,001  5  3 Convenience Stores 971  3  4 Health and Beauty 1,229  3  4 Home Furnishings 304  8  4 Key Associates* Maxim's 974  8  8 Yonghui 3,876  9  15 * Includes

  15. Slide 15: Modest overall improvement in operating margin

    Modest overall improvement in operating margin Op. Profit Margin* (US$'m) 1H 2017 % △pp Food 105 2.7  0.2 Supermarkets & Hypermarkets 71 2.4  0.4 Convenience stores 34 3.5  0.7 Health and Beauty 89 7.2  0.5 Home Furnishings 33 11.0 n -- - 227 4.1  0.1 Support Office (27) Underlying Operating Pr

  16. Slide 16: Free cash flow improvement driven by working capital

    Free cash flow improvement driven by working capital (US$'m) 1H 2017 1H 2016 EBITDA 308 304 Working Capital Movement (25) (131) Normal Capex (150) (110) Free Cash Flow 133 63 Investments (5) (4) Dividends Paid (197) (185) Dividends Received 57 39 Net Drawdown of Borrowings 9 92 Other items (33) (33)

  17. Slide 17: Capital expenditure in 1H 2017

    Capital expenditure in 1H 2017  IKEA store expansion in Hong Kong and Indonesia  Store format upgrades Supply Chain & 36% Others IT 6% 9% Capex (US$'m) 150 US$150m Store 27% New 110 Refurbishment 58% Stores 1H 2016 1H 2017 4 August 2017 17

  18. Slide 18: Positive about long-term prospects

    Positive about long-term prospects  Addressing challenges in Southeast Asia  Focusing on driving growth in Supermarkets & Hypermarkets  Building on momentum across the rest of the Group  Ian McLeod joining as CEO on Sep 18th  Strategic priorities ongoing 4 August 2017 18

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