Fj Benjamin Holdings Ltd. · SGX:F10
Fj Benjamin — Shareholder Meeting (October 2016)
19 slides from Fj Benjamin's shareholder meeting presentation, Oct 27, 2016
Slide 1: FY2016 AGM Presentation
A leader in brand building and management in Southeast Asia FY2016 AGM 27 OCTOBER 2016 PRESENTATION
Slide 2: Agenda
Agenda STRATEGIC SNAPSHOT EXPANSION PHASE: 2006 – 2013 GROUP SALES & NET PROFIT:2008-2012 RESTRUCTURING PHASE: 2014 – 2016 FY2016 HIGHLIGHTS GROWTH STRATEGY 2
Slide 3: Strategic Snapshot
Strategic Snapshot Expansion Phase – 2006-2013 • China’s robust economic growth and newly-minted millionaires boosted tourism in SE Asia and consumer spending in North Asia • Many global brands were attracted to the region, and we rode the Asian consumer boom with iconic lifestyle and luxury brands
Slide 4: Expansion Phase: 2006-2013
Expansion Phase:2006-2013 Riding the Asia Consumer Boom • Lifestyle brands – Gap, Banana Republic, and Superdry • Luxury brands – Celine, Givenchy, Goyard, Loewe, and Tom Ford • Scaled up retail network across the region, 226 stores across SE Asia Internationalising Raoul • Raoul’s men’s shirt label
Slide 5: Group Sales & Profit After Tax: 2008-2012
Group Sales & Profit After Tax : 2008–2012 Revenue S$ mil • Successfully rode the Asian consumer boom as sales and earnings scaled new heights during expansion phase • FY2009 felt the impact of the global financial crisis but business quickly rebounded amid China’s continued economic expansion PAT S
Slide 6: Restructuring Phase: 2014-2016
Restructuring Phase:2014-2016 Economic slowdown in Singapore and the region, particularly in China China’s curbs on luxury Decline in tourist arrivals External spending factors weighing on Group’s business Depreciation of Malaysian Rise of e-commerce ringgit and Indonesian rupiah 6
Slide 7: Restructuring Phase: 2014-2016
Restructuring Phase:2014-2016 Rightsizing the group • Closure of non-performing stores in Singapore, Malaysia, and Indonesia • Cessation of North Asia timepiece wholesale business • Renegotiated leases for better terms • Tight management of inventory • Streamlined backend operations • Reduced debt •
Slide 8: FY2016 - Financial Highlights
FY2016 - Financial Highlights 42.8% 42.7% 41.5% Topline Pressures Gross Margin 39.1% Turnover 38.6% • Group turnover fell 14% from FY15; S$ mil 10% down excluding translation losses • Closure of non-performing stores, discontinued businesses and cessation of North Asian operations, all of which prev
Slide 9: FY2016 - Financial Highlights
FY2016 - Financial Highlights Net Profit/Loss After Tax S$ mil 9
Slide 10: FY2016 - Financial Highlights
FY2016 - Financial Highlights 51.2% 45.3% 46.9% 43.8% 40.2% Cost to revenue ratio Operating Expenses S$ mil 10
Slide 11: Group Luxury Brands
Group Luxury Brands CELINE GIVENCHY (j GOYARD LOEWE MARC JACOBS TOM FORD Prettyballerinas @ &) BENJAMIN 11
Slide 12: Group Lifestyle Brands
Group Lifestyle Brands BANANA REPUBLIC ‘NooTrees VA ®, . BABY ZEN \) " Superdry. REBECCAMINKOFF SH ERIDAN VINCCI Alpinad Bell(®@)Ross — CalvinKlein CASIO cs ee GUESS WATCHES Gc NAUTICA Siipérdry. me sree watches iT || ep RADO TISSOT © vicrorinox WATCH @ ©) BENJAMIN
Slide 13: Retail Footprint
Retail Footprint Number of stores Total Square Footage in sq ft '000 226 226 218 FY14 FY15 FY16 POS* Singapore 40 37 32 395 Malaysia 73 69 69 140 Indonesia 112 112 125 900 Hong Kong 1 0 0 0 Total 226 218 226 1,435 *Points of Sale – include department store corners, counters, SIS, mul7-brand etc. 13
Slide 14: Growth Strategy: Portfolio Management and Extension
Growth Strategy Portfolio Management Adding exciting new brands • Exclusive rights for Marc Jacobs and Rebecca Minkoff in the region • To open four Marc Jacobs stores in next two years retailing full range of ready-to-wear, leather goods, and accessories • Launches Casio in Indonesia Portfolio Exten
Slide 15: Growth Strategy: Timepieces
Growth Strategy Timepieces • Continue to focus on both luxury and mass market timepieces in SE Asia despite closure in N Asia • Growing multi-brand retail stores WatchZone and WatchEngine - 31 standalone stores in Indonesia; aiming to increase to 67 by 2018 • Casio plans to have 150 points of sale b
Slide 16: Growth Strategy: Targeting Millennials
Growth Strategy Targeting Millennials • Born between 1980-2000; 60% of millennials located in Asia by 2020 • Prefers to spend money on experiences, travel, wellness, technology, F&B, than on consumer goods • Affinity to technology determines shopping patterns • Active lifestyle influences retail tre
Slide 17: Growth Strategy: Omnichannel Execution
Growth Strategy Omnichannel Execution • Southeast Asia is the fastest-growing 1 internet region globally, with five-year CAGR of 14% Online • Existing internet user1 base of 260 million expected to grow to 480 million by 2020 • 10-year CAGR of 32% for e-commerce in electronics, apparel, 1 household
Slide 18: Outlook
Outlook • Restructuring mainly completed • Trading conditions remain difficult with weak macro economics • Operations leaner and more cost-effective • Management focused on revenue growth, exploring new brands and businesses, leveraging on track record and extensive retail network in Southeast Asia.
Slide 19: Thank You
@ ©) BENJAMIN BR! , a ORS ce Ee fe - Thank You ! ae
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