President Chain Store Corporation · TWSE:2912
President Chain Store — FY2017 Earnings Presentation
21 slides from President Chain Store's earnings presentation, Mar 19, 2018
Slide 1: President Chain Store Corp. Investor Conference
President Chain Store Corp. Investor Conference March 19, 2018 pcsc
Slide 2: Agenda
Agenda 2017 Achievements and Results Outlook Ending Remarks Q&A pcsc 2
Slide 3: Achievements in 2017
Achievements in 2017 1. Listed on FTSE4Good, MSCI Global Sustainability Indexes, and TWSE Corporate Governance 100 Index, ranked as top 5% by Taiwan Corporate Governance Evaluation System. Listed as the top 250 retailers around the world by Deloitte, and ranking rise in the third consecutive year. 2
Slide 4: Achievements in 2017 (continued)
Achievements in 2017 6. Fortify logistics infrastructure to enhance its capability and efficiency. Delivery and Pick-up parcels surpassed 180 million. 7. ibon transactions exceeded 200 million by further enhancement of mobile services and cooperation with EC platforms. 8. Fresh food contribution rea
Slide 5: 2017 Financial Results
2017 Financial Results pcsc 5
Slide 6: Financial Highlights
Financial Highlights Historical revenue and profit Unit:NTD billion 2013 2014 2015 2016 2017 YoY Revenue 126.9 131.3 133.4 140.1 144.5 3.1% (Company Only) Revenue 200.6 200.4 205.5 215.4 221.1 2.7% (Consolidated) Net Profit 8.0 9.1 8.2 9.8 31.0 215.3% One-off gain from Starbucks deal - - - - 20.4
Slide 7: Profitability Trend
Profitability Trend Company Only Unit:NTD billion 100% 40% 40 25% 20% 30 15% 20 50% 14.4% 15.2% 15.2% 20% 10% 14.3% 10 5% 33.3% 35.0% 36.0% 32.4% 0 0% 2013 2014 2015 2016 2017 0% 0% NI 8.0 9.1 8.2 9.8 31.0 2013 2014 2015 2016 2017 NI Margin 6.3% 6.9% 6.2% 7.0% 21.5% ROE 36.1% 36.2% 30.7% 35.3% 78.3%
Slide 8: Cash Flow Trend
Cash Flow Trend Unit: NTD billion Net Cash(Company only) Net Cash(Consolidated) Note：The longer holidays in the end of 2017 resulted in payment terms deferred temporally. pcsc 8
Slide 9: Cash Dividend Trend
Cash Dividend Trend 30 200% 190% 25 180% 170% 20 160% 15 150% 140% 10 130% 120% 5 110% Unit:NTD 0 100% 2013 2014 2015 2016 2017 Cash Dividends 6.0 7.0 7.2 8 25 Payout Ratio 77.61% 80.06% 90.85% 84.57% 83.81% Note 1：2017 cash dividend has not been approved by AGM. Note 2 ：2017 cash dividend includes
Slide 10: Outlook
Outlook pcsc 10
Slide 11: Sustainable Growth of PCSC
Sustainable Growth of PCSC Long-term targets Taiwan 7-ELEVEN Subsidiaries Advancing PSD Sales to NTD 100K Following trends and opportunities Let each store Nurture talent with flourish in its own way; in-depth expertise; Replicate the successes Expand the business with across the network. clear stra
Slide 12: Multiple Drivers for Sustainable Growth
Multiple Drivers for Sustainable Growth PSD Sales NTD 100K Advanced technology, comprehensive E-services, premium CITY brand, and differentiated products. Feature stores, E-services, Product mix optimization, and Franchisee program improvements Bigger-Store format, TK Marketing Campaign, CITY CAFE,
Slide 13: Apply Technology to Enhance Efficiency and Value
Apply Technology to Enhance Efficiency and Value Value and Experience Improve operational efficiency and customer experience by system upgrade and advanced technologies testing in X- store. Environmental Friendly Apply energy-saving Trend of Energy Use Intensity equipment to reduce Unit: kW.h/m2
Slide 14: Extend Digital Platform
Extend Digital Platform 串聯數位行動流量、整合會員資訊 Integrate digital flow with OPENPOINT membership Rewards • Points’ value OPENPOINT VIP Membership 160 enhancement • Strategic Alliance 80 • Simplified Registration process 0 2015 2016 2017 Number of EC Transaction Number of ibon/ibon APP Non-Cash Payment Ratio
Slide 15: Upscale CITY Brand
Upscale CITY Brand Upgrade systems and equipment to enhance quality. Grow CITY Brand through new products and merchandise launched. Improve store service efficiency by optimizing procedures. 2017 12 billion Sales Introduce Bubble Drinks 2015 10.6 billion Sales Launch Fresh Tea 2007 500 million Sa
Slide 16: Provide Quality, Tasty, and Convenient Fresh Food Service
Provide Quality, Tasty, and Convenient Fresh Food Service Trend of Fresh Food Sales and Contribution Food Safety 250 18% Strengthen traceability mechanism from farm to 200 17% table. Preventive management. Infrastructure 150 16% 2015 2016 2017 Renew equipment, improve Sales(NT$100m) Contributi
Slide 17: Differentiate Product Mix
Differentiate Product Mix Trend of International and PL product sales Extend frozen products of (NT$100m) iseLect and daily necessaries 85 of UNIDESIGN. Selective, premium and 80 exclusive international products to enrich product mix. Exclusive and quality brands 75 products enhance the feelin
Slide 18: Fast-Growing Philippine 7-ELEVEN
Fast-Growing Philippine 7-ELEVEN Aggressive Expansion Profitability Improvement Digital Service Maintain dominant Ground up more Introduce E-Wallet, market shares, and satellite kitchens to CliQQ Pay. will exceed 2,600 raise the capacity of Develop in-store pick- stores in 2018. fried produc
Slide 19: Regional Trend and Opportunities
Regional Trend and Opportunities Cultivate talents and Follow the lifestyle trend to transfer Know-how. drive sustainable growth of Takkyubin, Books.com, Taiwan Starbucks , etc. Strengthen profitability of Evaluate potential Philippine 7-ELEVEN. Improve operations of investments in Shangha
Slide 20: Ending Remarks
Ending Remarks Jui-Tang, Chen pcsc 20
Slide 21: Q&A
Q&A pcsc 21