Dfi Retail Group Holdings Limited · SGX:D01
Dfi Retail — Dairy Farm International Holdings — FY2019 Earnings Presentation
41 slides from Dfi Retail's earnings presentation, Mar 5, 2020
Slide 1: 2019 Full Year Results Presentation
2019 Full Year Results Presentation 5th March 2020
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
Slide 3: Agenda
Agenda 1. 2019 Highlights 2. Financial Results 3. Business Performance Review 4. Outlook 3
Slide 4: Multi-year Transformation on Track
Multi-year Transformation on Track • Total sales (including associates and JVs) up 26% • Sales growth from 4 out of 5 divisions • Hong Kong environment impacted performance • Benefits accruing from business efficiency and SEA performance • Portfolio diversity partly insulates against environmental i
Slide 5: Agenda
Agenda 1. 2019 Highlights 2. Financial Results 3. Business Performance Review 4. Outlook 5
Slide 6: Sales and Underlying Profit
Sales and Underlying Profit (US$’ m) FY2019 FY2018 %∆ Total Sales Including Associates & JVs 27,665 21,957 +26 Subsidiaries 11,192 11,749 -5 Subsidiaries Underlying Operating Profit 437 506 -14 Share of Underlying Results of Associates/JVs 115 113 +2 Underlying Profit Attributable to Shareholders 32
Slide 7: Sales Growth from 4 out of 5 Divisions
Sales Growth from 4 out of 5 Divisions Sales (US$’ m) FY2019 FY2018 %∆ Food 7,376 7,992 -8 Grocery retail 5,190 5,888 -12 Convenience stores 2,185 2,104 +4 Health and Beauty 3,051 3,036 +1 IKEA 766 721 +6 Key Associates* Maxim's 2,701 2,586 +4 Yonghui 10,895 7,429 +47 RRHI 2,837 n/a n.m. * Includes
Slide 8: Subsidiaries Underlying Operating Profit
Subsidiaries Underlying Operating Profit IFRS16 [Separately Identified] Underlying Op. Profit Op. Margin (US$’ m) FY2019 FY2018 $∆ %∆ % ∆pp Food 145 110 +35 +32 2.0 +0.6 Grocery retail 63 22 +41 +183 1.2 +0.8 Convenience stores 82 88 -6 -7 3.8 -0.4 Health and Beauty 296 330 -34 -11 9.7 -1.2 IKEA 43
Slide 9: Solid Cash Conversion
Solid Cash Conversion (US$’ m) FY2019 FY2018 Underlying EBITDAR 1,439 1,607 Principal Elements of Lease Payments (790) (815) ∆Working Capital (77) (21) Net Financing Costs (160) (164) Dividends Received 89 94 Other Operating Cash Flow (3) (58) Operating Cash Flow after Lease Payments 498 643 Normal
Slide 10: Agenda
Agenda 1. 2019 Highlights 2. Financial Results 3. Business Performance Review 4. Outlook 10
Slide 11: Confidence in Strategy Remains
Confidence in Strategy Remains Strategic Priorities Improvement Programmes Build capability Fresh Labour Supply Chain Productivity Efficiency Drive digital Grow in innovation China Assortment Procurement Optimisation Centralisation Maintain Revitalise HK SE Asia strength 11
Slide 12: Grow in China
Grow in China • Over 270 stores opened with prudent capital investment 7-Eleven • Strong LFL growth • Own Brand RTE and meal deals improving sales performance • O2O supporting LFL growth Mannings • Space optimisation now Greater Bay Area focused • Shared services supporting overhead efficiency • Str
Slide 13: Maintain Strength in Hong Kong
Maintain Strength in Hong Kong • Encouraging LFL sales trends across each market NA Grocery • Proactive supply chain management improving freshness Retail • Improvement programmes supporting profit growth • Second best year after exceptional 2018 Health & • Ranges optimised by demographic Beauty • S
Slide 14: Revitalise Southeast Asia
Revitalise Southeast Asia • Significant improvement in profitability SEA Grocery • Strong focus on fixing the basics Retail • New formats introduced into Upscale and Giant • Now 1,300 stores across Southeast Asia Health & • Further expansion planned in 2020 Beauty • Performance improvement achieved
Slide 15: Drive Digital Innovation
Drive Digital Innovation • Focused IT investment plan now in place • IKEA website upgrades driving e-commerce growth • E-commerce infrastructure investment in Health and Beauty • SAP successfully integrated into Singapore • Enhanced CRM capability in development 15
Slide 16: Build Capability
Build Capability • Significant change in senior leadership • Strength in depth now established • Central business hubs established in Hong Kong and Singapore • Enhanced collaboration driving Standardisation, Synergy and Scale • Significant culture change now evolving • Developing pipeline of future
Slide 17: Strategic Priorities and Improvement Programmes
Strategic Priorities and Improvement Programmes Strategic Priorities Improvement Programmes Build capability Fresh Labour Supply Chain Productivity Efficiency Drive digital Grow in innovation China Assortment Procurement Optimisation Centralisation Maintain Revitalise HK SE Asia strength 17
Slide 18: Agenda
Agenda 1. 2019 Highlights 2. Financial Results 3. Business Performance Review 4. Outlook 18
Slide 19: Reshaping Dairy Farm – Multi-Year Plan
Reshaping Dairy Farm – 3 Phase Multi-Year Plan Making a Difference for Building a Strong Base Delivering Consistently Well Every Customer 1. Build a strong leadership team 1. Establish leadership strength in 1. High performing teams with strong depth succession plans Performance 2. Define store bran
Slide 20: Confidence in Transformation Remains Strong
Confidence in Transformation Remains Strong • Portfolio diversity provides resilience to market changes • Early stages of transformation strengthened business fundamentals • Standardisation, Synergy and Scale remains a focus • Strong financial control supporting decision making • Significant transfo
Slide 21: Q&A Session
Q&A Session 2019 Full Year Results Presentation 5th March 2020
Slide 22: Upscale Concept Stores
UPSCALE CONCEPT STORES Doi been
Slide 23: Introducing Mercato Gurney Plaza Malaysia
Introducing MERCATO GURNEY PLAZA MALAYSIA
Slide 24: Penang Mercato Relaunch
Penang Mercato Relaunch 24
Slide 25: Penang Mercato Relaunch
Penang Mercato Relaunch 25
Slide 26: Penang Mercato Relaunch
Penang Mercato Relaunch 26
Slide 27: Penang Mercato Relaunch
Penang Mercato Relaunch 27
Slide 28: Singapore
SINGAPORE
Slide 29: CS Fresh Singapore
CS Fresh Singapore 29
Slide 30: CS Fresh Singapore
CS Fresh Singapore 30
Slide 31: CS Fresh Singapore
CS Fresh Singapore 31
Slide 32: CS Fresh Singapore
CS Fresh Singapore 32
Slide 33: Refreshing Our Stores
Refreshing Our Stores
Slide 34: Over 70 Refreshed Giant Stores
Over 70 Refreshed Giant Stores 34
Slide 35: Over 70 Refreshed Giant Stores
Over 70 Refreshed Giant Stores 35
Slide 36: Over 70 Refreshed Giant Stores
Over 70 Refreshed Giant Stores 36
Slide 37: Over 70 Refreshed Giant Stores
Over 70 Refreshed Giant Stores 37
Slide 38: Sentul Hypermarket Conversion – 5 months later
Sentul Hypermarket Conversion – 5 months later Before 38
Slide 39: Sentul Hypermarket Conversion – 5 months later
Sentul Hypermarket Conversion – 5 months later 39
Slide 40: Sentul Hypermarket Conversion – 5 months later
Sentul Hypermarket Conversion – 5 months later 40
Slide 41: Meadows Launch
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Dairy Farm International Holdings — FY2019 Earnings Presentation on 6ix