President Chain Store Corporation · TWSE:2912
President Chain Store — FY2016 Earnings Presentation
23 slides from President Chain Store's earnings presentation, Mar 13, 2017
Slide 1: President Chain Store Corp. Investor Conference
President Chain Store Corp. Investor Conference March 13, 2017 pcsc
Slide 2: Agenda
Agenda 2016 Achievements and Results 2017 Outlook Ending Remarks Q&A pcsc 2
Slide 3: Achievements in 2016
Achievements in 2016 1. Be listed on FTSE4Good Emerging Index, MSCI Global Sustainability Indexes, and TWSE Corporate Governance 100 Index, ranked as top 5% by Taiwan Corporate Governance Evaluation System. 2. Improve profitability of franchisees by adjusting franchise program. 3. Diversify store fo
Slide 4: Achievements in 2016
Achievements in 2016 6. Fortify logistics infrastructure to enhance its capability and service efficiency. 7. icasH further extends to transportation systems, and links with OPENPOINT to build a comprehensive point exchange platform. 8. Fresh food revenue exceeded NT$ 22 billion by manufacturing pro
Slide 5: 2016 Financial Results
2016 Financial Results pcsc 5
Slide 6: Financial Highlights
Financial Highlights Historical revenue and profit Unit:NTD billion 2012 2013 2014 2015 2016 2016 V.S. (adjusted) 2015 Revenue 124.8 126.9 131.3 133.4 140.1 5.1% (Company Only) Revenue 192.6 200.6 200.4 205.5 215.4 4.8% (Consolidated) Net Profit 5.9 8.0 9.1 8.2 9.8 19.4% EPS (NT$) 5.69 7.73 8.74 7
Slide 7: Profitability Trend
Company Only Profitability Trend Unit:NTD billion 12 8% 40% 33.3% 18% 6.4% 7% 35% 32.4% 16% 10 6.3% 6% 30% 14% 8 14.3% 14.4% 12% 5% 25% 10% 6 4% 20% 8% 3% 15% 4 6% 2% 10% 4% 2 5% 2% 1% 0 0% 0% 0% 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 ROE 30.0% 36.1% 36.2% 30.7% 35.3% NI 5.9 8.0 9.1 8.2 9
Slide 8: Subsidiaries Contribution Trend
Subsidiaries Contribution Trend 4,000 40% 3,500 3,000 30% 2,500 20% 2,000 1,500 10% 1,000 500 0% - Unit:NTD million (500) -10% 2014 2012 2013 2015 2016 (adjusted) Investment gain or Loss (1) 1,936 2,961 2,190 3,457 Profit contribution -0.02% 24.09% 32.57% 26.59% 35.14% 40% 38% 36% 34% 32% Unit:NTD b
Slide 9: Cash Flow Trend
Cash Flow Trend Unit:NTD billion Net Cash(Company only) Net Cash(Consolidated) 14 25 12.7 22.4 12 10.9 19.6 20 19.0 10.1 18.2 10 8.3 14.9 8 15 6.7 6 10 4 5 2 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 pcsc 9
Slide 10: Cash Dividend Trend
Cash Dividend Trend 9 8 7 6 5 4 3 2 Unit:NTD 1 0 2012 2013 2014 2015 2016 Cash Dividends 4.85 6.0 7.0 7.2 8 Total Dividends 4.85 6.0 7.0 7.2 8 Note：2016 cash dividend has not been approved by AGM. pcsc 10
Slide 11: 2017 Outlook
2017 Outlook pcsc 11
Slide 12: 7 Strategies for Sustainable Growth
7 Strategies for Sustainable Growth Sustainable Growth of PCSC Stable Provide Upscale Differenti Extend Stable and Environ- Franchise quality, CITY -ate store Digital fast- mental, System tasty, and CAFE format Platform growing Social, convenient brand and BU Governa- fresh food product nce service
Slide 13: Stable Franchise System
Stable Franchise System Persistent store profitability growth relies on store-by-store and item-by-item management. Improve store operational efficiency by system upgrade and labor-saving devices. Introduce better franchise system to increase franchisees profitability and franchise ratio. Su
Slide 14: Provide Quality, Tasty, and Convenient Fresh Food Service
Provide Quality, Tasty, and Convenient Fresh Food Service Food Safety Infrastructure Premium Quality Continue to Integrate 18℃ and Upgrade value and strengthen traceability 4℃ fresh food: taste of products mechanism by origin 1.More variety, better through new materials management, system tast
Slide 15: Upscale CITY CAFE Brand
Upscale CITY CAFE Brand Upgrade CITY CAFE quality Introduce new product CITY CAFE continues to deliver Introduce new product line to strong growth. generate new growth drivers. Grow CITY CAFE brand by Speed up the roll-out of CITY upgrading coffee bean quality, Fresh Tea. developing coffee m
Slide 16: Diversify Store Format
Diversify Store Format Bigger format stores account for 71% of total store number, 40 square meters stores account for 31%. More experiential, entertaining, educational stores will be rolled out in an efficient and systematic way. A 7-ELEVEN store designed by OPEN! family to generate joyful atmosp
Slide 17: Diversify Store Format (continued)
Diversify Store Format(continued) A 7-ELEVEN store with reading room and flexible space brings comfortable and joyful atmosphere . pcsc 17
Slide 18: Differentiate Product Mix
Differentiate Product Mix Private-labeled brands, iseLect and UNIDESIGN, bring new choices for customers. Selective and premium international products are introduced to enrich product mix. Exclusive and quality brands products make 7-ELEVEN always a fresh shopping place. pcsc 18
Slide 19: Extend Digital Platform
Extend Digital Platform Rewards Payment 1.The membership of 1.The new card issuance and OPENPOINT grew 85%. Data active cards grew significantly. 2.Growth drivers： 2.More customers use icasH to Continuous growth of shop at 7-ELEVEN. membership. 3.Growth drivers： Strengthen i-gift platform. PCSC
Slide 20: Stable and Fast-Growing Subsidiaries
Stable and Fast-Growing Subsidiaries Develop subsidiaries that Grow overseas markets： deliver stable growth ： 1.Philippine 7-ELEVEN achieved 2,000 stores, and Shanghai 16 subsidiaries with over Starbucks will reach 1,500 NT$100 million net profit in stores in 2017. 2016, including Cosmed 2. Shangh
Slide 21: Environmental, Social and Governance
Environmental, Social and Governance Happiness, Gung Ho, and sustainability, the concept of our ESG are built in our operational strategies. Happiness Gung Ho Sustainability We value well-being NT$100M/per year was We continue to…. of franchisees and invested in food safety reduce energy usag
Slide 22: Ending Remarks
Ending Remarks Jui-Tang, Chen pcsc 22
Slide 23: Q&A
Q&A pcsc 23