Dfi Retail Group Holdings Limited · SGX:D01

Dfi Retail — Dairy Farm International Holdings — H1 2016 Earnings Presentation

21 slides from Dfi Retail's earnings presentation, Jul 29, 2016

  1. Slide 1: 2016 Interim Results Presentation

    2016 Interim Results Presentation 29 July 2016

  2. Slide 2: Presentation Disclaimer

    2016 Interim 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 i

  3. Slide 3: Agenda

    2016 Interim Results Presentation Agenda  2016 first half highlights  Financial results  Outlook 29 July 2016 2

  4. Slide 4: Solid set of results in 1H

    2016 Interim Results Presentation Solid set of results in 1H  Sales of subsidiaries up 2%*; total sales up 31%*  Underlying net profit up 5%*  Higher contribution from Food, Home Furnishings, Restaurants and Yonghui; Health and Beauty lower  Satisfactory performance in most major markets  Finan

  5. Slide 5: All formats achieved constant currency sales growth

    2016 Interim Results Presentation All formats achieved constant currency sales growth Supermarkets Convenience Health & Home Restaurants and Stores Beauty Furnishings Hypermarkets Sales* +2% Sales +4% Sales +2% Sales +7% Sales +6% Stores* -11 Stores -27 Stores -53 Stores: ±0 Stores +57 Op Profit * +

  6. Slide 6: Continuing to deliver on long-term strategy

    2016 Interim Results Presentation Continuing to deliver on long-term strategy Strategy Progress Winning Positive LFL sales in most markets Brands Format Driving differentiation everywhere Leadership Accelerating e-Commerce and CRM activities Operational Strengthening supply chain Excellence Investin

  7. Slide 7: Important milestones achieved in this Half

    2016 Interim Results Presentation Important milestones achieved in this Half Growth in Fresh New Fresh DC E-Commerce opens in Singapore launch for IKEA penetration Increased Acquisition of COVA Stronger Corporate & opening of Brand RTE The Cheesecake participation Factory penetration 29 July 2016 6

  8. Slide 8: Fresh penetration continues to grow

    2016 Interim Results Presentation Fresh penetration continues to grow 29 July 2016 7

  9. Slide 9: Supply chain investment continues

    2016 Interim Results Presentation Supply chain investment continues 29 July 2016 8

  10. Slide 10: E-Commerce launched for IKEA

    2016 Interim Results Presentation E-Commerce launched for IKEA Hong Kong & Macau launched in April 2016 Indonesia just launched Taiwan (Taichung) later this year 29 July 2016 9

  11. Slide 11: New corporate brands hit the shelves in Grocery

    2016 Interim Results Presentation New corporate brands hit the shelves in Grocery 29 July 2016 10

  12. Slide 12: Corporate Brand portfolio also building in Health & Beauty

    2016 Interim Results Presentation Corporate Brand portfolio also building in Health & Beauty 29 July 2016 11

  13. Slide 13: RTE participation up 1.0% vs. 1H 2015

    2016 Interim Results Presentation RTE participation up 1.0% vs. 1H 2015 International Fare Healthy Fare Daily Cafe Range Euro 2016 Promotion 29 July 2016 12

  14. Slide 14: Further growth in Restaurant formats

    2016 Interim Results Presentation Further growth in Restaurant formats Acquisition of COVA’s Hong Kong franchise in April 2016 Opening of the first store in Shanghai Disneytown in June 2016 29 July 2016 13

  15. Slide 15: Profit & Loss (US$ m)

    2016 Interim Results Presentation Profit & Loss (US$ m) 1H 2016 1H 2015 %△ CCY %△ Sales - Including Associates & JVs 10,110 8,011  26  31 - Reported 5,562 5,593  1  2 Reported Operating Profit 197 201  2 n 0 Share of Results of Associates and JVs 47 32  47 Net Finance Charge (9) (6) Profit Bef

  16. Slide 16: Broad based top line growth in the face of currency headwinds

    2016 Interim Results Presentation Broad based top line growth in the face of currency headwinds △ △ Sales CCY (US$ m) 1H 2016 1H 2015 % % Food 4,086 4,131  1  2 Supermarkets & Hypermarkets 3,146 3,212  2  2 Convenience Stores 940 919  2  4 Health and Beauty 1,194 1,191 n 0  2 Home Furnishings

  17. Slide 17: Margin pressure easing

    2016 Interim Results Presentation Margin pressure easing △ 2016 Margin1 (US$ m) 1H 2016 1H 2015 % 1H15 pp Food 116 112 2.8  0.1 Supermarkets & Hypermarkets 89 85 2.8  0.2 Convenience stores 27 26 2.9 n 0.0 Health and Beauty 80 89 6.7  0.8 Home Furnishings 31 26 11.1  1.5 227 227 4.1 n 0.0 Suppor

  18. Slide 18: Balance Sheet (US$ m)

    2016 Interim Results Presentation Balance Sheet (US$ m) Jun. 2016 Dec. 2015 Non-current assets 3,393 3,381 Stocks 982 937 Debtors 229 234 Other 14 11 Bank balances and other liquid funds 260 259 Current assets 1,486 1,440 Creditors (2,251) (2,355) Short term borrowings (345) (730) Others (80) (67) C

  19. Slide 19: Cash Flow (US$ m)

    2016 Interim Results Presentation Cash Flow (US$ m) 1H 2016 1H 2015 Trading Cash Flow 312 293 Working Capital Movement (131) 22 Normal Capex (110) (147) Free Cash Flow 71 168 0 Investments (4) (1,028) Net Drawdown of Borrowings 92 775 Dividends Paid (185) (223) Other (3) 17 Net Decrease in Cash and

  20. Slide 20: Capital expenditure 1H 2016

    2016 Interim Results Presentation Capital expenditure 1H 2016 -25% Supply chain/other New stores IT 7% 14% Total = Capex (US$m) 147 US$ 110m 53% 110 26% Store refurbishment 1H 15 1H 16 29 July 2016 19

  21. Slide 21: Outlook

    2016 Interim Results Presentation Outlook  Market conditions remain uncertain  Investing to support customer centric strategy  Building on the trading strategies which worked in 1H  Margin pressure easing slightly  Positive signs going into the second half 29 July 2016 20

Dairy Farm International Holdings — H1 2016 Earnings Presentation on 6ix