Dfi Retail Group Holdings Limited · SGX:D01
Dfi Retail — FY2021 Earnings Presentation
30 slides from Dfi Retail's earnings presentation, Mar 4, 2022
Slide 1: 2021 DFI Retail Group Full Year Results Presentation
2021 DFI Retail Group Full Year Results Presentation 4 March 2022
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. Key Highlights 2. Financial Results 3. Business Updates 4. Business Outlook 3
Slide 4: Encouraging Underlying Performance
Encouraging Underlying Performance • Sales lower by 2% following Group divestments • Subsidiaries’ underlying net profit up 35%, excluding subsidies • Strong underlying Grocery Retail performance • Encouraging Health and Beauty recovery in second half • Improved Convenience performance • Strong grow
Slide 5: Agenda
Agenda 1. Key Highlights 2. Financial Results 3. Business Updates 4. Business Outlook 5
Slide 6: Sales and Profit
Sales and Profit (US$’ m) FY2021 FY2020 %∆ Total Sales Including Associates & JVs 27,684 28,159 -2 Subsidiaries 9,015 10,269 -12 Subsidiaries’ Net Profit 145 200 -27 Share of Associates & JVs’ Net Profit (40) 76 n.m. Profit Attributable to Shareholders 105 276 -62 Net Non-Trading Items (2) (5) +60 R
Slide 7: Sales Summary
Sales Summary (US$’ m) FY2021 FY2020 %∆ Food 6,394 7,447 -14 Grocery Retail 4,151 5,348 -22 Convenience Stores 2,243 2,100 +7 Health and Beauty 1,805 1,990 -9 IKEA 816 832 -2 Key Associates* Maxim's 2,455 2,064 +19 Yonghui 13,123 12,627 +4 RRHI 3,045 3,159 -4 *Includes 100% of Maxim’s, Yonghui (12 m
Slide 8: Subsidiaries Operating Profit
Subsidiaries Operating Profit (US$’ m) FY2021 FY2020 $∆ %∆ Food 197 324 -127 -39 Grocery Retail 143 267 -124 -46 Convenience Stores 54 57 -3 -5 Health and Beauty 56 66 -9 -14 IKEA 45 71 -26 -36 SG&A (68) (120) 52 +43 IFRS16 Adjustment – PBIT 83 71 12 +17 Operating Profit (after IFRS16) 314 412 -98 -
Slide 9: Solid Cash Flow
Solid Cash Flow (US$’ m) FY2021 FY2020 EBITDAR 1,199 1,395 Principal Elements of Lease Payments (672) (706) Interest Elements of Lease Payments (90) (111) ∆Working Capital (10) (102) Net Financing Costs (26) (32) Dividends Received 46 68 Other Operating Cash Flow (178) (151) Operating Cash Flow 270
Slide 10: Agenda
Agenda 1. Key Highlights 2. Financial Results 3. Business Updates 4. Business Outlook 10
Slide 11: Transformation Plan Proving Critical
Transformation Plan Proving Critical Strategic Priorities Improvement Programmes Building capability Fresh Labour Supply Chain Productivity Driving digital Growth in Efficiency innovation China Assortment Procurement Optimisation Centralisation Revitalising Maintaining SE Asia strength in HK 11
Slide 12: Grocery Retail North Asia
Grocery Retail North Asia • Price investment resulting in significant customer savings • Encouraging performance from new format development • Strong uplift from upscale refreshes • Own Brand momentum gathering pace • Consistent improvement in key brand metrics • Strong underlying sales outperforman
Slide 13: Grocery Retail Southeast Asia
Grocery Retail Southeast Asia • Giant relaunched in Singapore and Malaysia • Price investment campaigns driving improved price position • Improving brand perception metrics • Strong improvement in underlying sales productivity and profit • Arresting share decline with strong outperformance in fresh
Slide 14: Upscale Refresh (Market Place, CS Fresh)
Upscale Refresh (Market Place, CS Fresh) 14
Slide 15: Wellcome Fresh
Wellcome Fresh DI RETAIL GROUP 15
Slide 16: Own Brand Momentum Gathering Pace
Own Brand Momentum Gathering Pace • Over 2,000 SKUs since launch • Relaunched Yu Pin King, Giant brands • Meadows Essentials & Meadows Home ranges added • Meadows now No.1 snacks brand in Singapore • Double-digit own brand penetration • 1,200+ SKUs expected to be launched in 2022 16
Slide 17: Own Brand Momentum Gathering Pace
Own Brand Momentum Gathering Pace • Strong Health and Beauty Own Brand launches in Q4 • Strong double digit volume uplift in cotton & paper ranges • Essential and beauty accessory ranges added • Over 1,000 new Health and Beauty products planned in 2022 17
Slide 18: Mannings Update
Mannings Update • Border closures still significant compromise to performance • Price investment enhancing value perception • Strong volume growth in key SKUs • Consistent market share gains • Strong LFL sales recovery in second half • Triple digit e-commerce growth • Strategic consolidation to Sout
Slide 19: Guardian Update
Guardian Update • 2021 SEA lockdown restrictions more severe than 2020 • Over 100 new stores opened, despite COVID restrictions • Price investment driving improved brand perception • Strong volume growth in key SKUs • Range optimisation program in place • Guardian voted No.1 store in Malaysia • Impr
Slide 20: 7-Eleven Update
7-Eleven Update • LFL sales recovery as restrictions eased • Over 350 new stores opened • Over 1,300 new products launched • Digital system transformation in China complete • O2O orders quadrupled in Guangdong • O2O offering launched in Hong Kong • Strong market share growth in key markets • Strong
Slide 21: IKEA Update
IKEA Update • Indonesia and Taiwan impacted by trading constraints • Global supply chain constraints impacting availability • Solid sales despite trading days lost • Double digit e-commerce growth • Trading space more than doubled in Indonesia • First Giant conversion in Bali opened in November • In
Slide 22: IKEA Leading Global Innovation
IKEA Leading Global Innovation Pop Up Store Store in Store Blue Box Store Mobile Format Small Format 22
Slide 23: yuu Update
yuu Update Creating a yuu-niverse • Almost 4 million yuu members • 99% brand awareness • Strong membership retention • Over 130 billion points issued since launch • Over 50% increase in customers shopping cross banners • yuu Insure launched in November • Shell joined as fuel partner in February • yu
Slide 24: Digital Initiatives Remain Key Focus
Digital Initiatives Remain Key Focus Creating a yuu-niverse • Ecommerce pilots launched across key markets 11.11 Online Orders* • 160% increase of daily e-commerce orders across Group • Fulfillment across combination of dark store and local stores • Additional digital and CRM capabilities introduced
Slide 25: DFI's CSR Framework
DFI’s CSR Framework DI. RETAIL GROUP OUR MISSION PROVIDE COMMUNITIES WE SERVE WITH BENEFITS THAT HELP THEM AND HELP THE ENVIRONMENT TOO OUR APPROACH BUILD CHANGE THAT MATTERS, HARNESS OUR TEAM'S PASSION AND STRIVE TO MAKE A DIFFERENCE OUR KEY PILLARS SERVING COMMUNITIES SUSTAINING THE PLANET SOURCIN
Slide 26: Wellcome X FoodLink CSR Campaign
Wellcome X FoodLink CSR Campaign 26
Slide 27: Agenda
Agenda 1. Key Highlights 2. Financial Results 3. Business Updates 4. Business Outlook 27
Slide 28: Reshaping DFI Retail Group
Reshaping DFI Retail Group Building a Strong Base Delivering Consistently Well Driving the DFI Difference 1. Build a strong leadership 1. Establish leadership strength in 1. High performing teams with strong team depth succession plans 2. Define store brand customer 2. Store portfolio structured to
Slide 29: Business Outlook
Business Outlook • Successfully migrating to 3rd phase of transformation • Continued investment in new format development • Increasing digital emphasis across the company • Confidence in underlying business strength • COVID crisis will continue to add performance volatility • Confident progress will
Slide 30: Q&A session
Q&A session 2021 Full Year Results Presentation