Allhome Corp. · PSE:HOME
Allhome — IPO Roadshow (September 2019)
47 slides from Allhome's IPO roadshow presentation, Sep 27, 2019
Slide 1: Retail Investors' Briefing
Retail Investors’ Briefing September 27, 2019
Slide 2: Indicative offering summary
Indicative offering summary Issuer • AllHome Corp. • PHP12.9bn (before greenshoe), or PHP14.9bn (after greenshoe) Offer Size and Offer Price • PHP11.5 per share Offering Structure • IPO (66.7% primary, 33.3% secondary) Distribution Format • International offering (Reg S/ 144A) and domestic offering
Slide 3: Agenda
Agenda 01 O击 点 ve添 rv加 ie相 w关o标 f题Al文 lH字 ome 02 Investment highlights 点击添加相关标题文字 03 Future growth strategies 点击添加相关标题文字 04 Financial information 点击添加相关标题文字 05 Appendix 字 点击添加相关标题文 5
Slide 4: Overview of AllHome
Section 1 Overview of AllHome
Slide 5: Snapshot of AllHome
Snapshot of AllHome One-stop shop home store Synergistic relationship with the Villar Group Multi-format strategy Wholly owned subsidiary of Villar Group1 AllValue Holdings Corp., an affiliate Large mall-based Large free-standing of Villar Group, the largest homebuilder in the Philippines 75.63% 1
Slide 6: Key milestones
Key milestones AllHome has demonstrated rapid growth of store network over the last sixyears since incorporation Plan to open Cebu additional 20 M isamis stores in the Oriental second half of 2019 with total Plan to open Cavite estimated net additional 25 Taguig City Bulacan selling space of stores
Slide 7: Leveraging on track record, AllHome is primed to enter next stage of growth
Leveraging on track record, AllHome is primed to enter next stage of growth 25 stores located in key regions of growth in the Philippines Existing presence Store expansion Expansion plan Mega Manila Store count by format 70 13 large mall-based stores Revenue contribution1,2 3 large free-standing
Slide 8: Investment highlights
Section 2 Investment highlights
Slide 9: Key investment highlights
Key investment highlights Pioneering "one-stop shop" home store benefiting from strong macroeconomic tailwinds in 1 the Philippines 2 Strong operational expertise and a scalable business model for future expansion 3 Differentiated customer shopping experience in a retail ecosystem 4 Track record of
Slide 10: Pioneering "one-stop shop" home store in the Philippines
1 Pioneering "one-stop shop" home store in the Philippines Wide and diversified product and brand offering with over 250,000 SKUs creating a one-stop shopping experience % % One-stop shop: The only home store in thePhilippines SKUs1 Revenues1 Selected brands In-house brands with full product offerin
Slide 11: Strong macroeconomic tailwinds for AllHome's sectors in the Philippines
1 Strong macroeconomic tailwinds for AllHome’s sectors in the Philippines …with a large population and the youngest median age in Rising home and garden specialist retail Strong real GDP growth… the region sales value (PHPtn) (PHP bn) 108 270 33 6 69 97 385 24 43.3 39.3 31.7 17 28.8 28.9 24.7 246 19
Slide 12: Strong operational expertise and a scalable business model for future expansion
2 Strong operational expertise and a scalable business model for future expansion Know-how to efficiently set up and effectively operate an established home store business Rapid store network growth to 251 since 2013 Standardized principles for store design and layout Well-trained and experiencedsta
Slide 13: Differentiated customer shopping experience in a retail ecosystem
3 Differentiated customer shopping experience in a retail ecosystem AllHome, together with other retail offerings of AllValue and the Villar Group, creates a retail ecosystemthat addresses various needs of the surrounding residential communities Retail ecosystem Membership program Value-added servic
Slide 14: Unique shopping experience for the home in a comfortable and convenient setting
3 Unique shopping experience for the home in a comfortable and convenient setting Store layout follows standardized principles while the design of each store is tailored to suit and address the needs of the relevant target market Improved store productivity Well-organized selling space based on pr
Slide 15: Track record of significant growth and profitability
4 Track record of significant growth and profitability Proven track record of robust store expansion and financial performance Significant store and net selling space growth EBITDA1,2 growth in 2016-2018 ( % CAGR) No. of stores Net selling space (sqm) 25 196,327 107.5% 15 111,204 50.6% 21.1% 10.7% 2
Slide 16: Synergistic collaboration with the Villar Group, the largest homebuilder in the Philippines
5 Synergistic collaboration with the Villar Group, the largest homebuilder in the Philippines AllHome has a synergistic relationship with the Villar Group, the largest homebuilder in the country which also operates a diversified mix of property and retailconcepts Wholly owned subsidiary of the Villa
Slide 17: Collaboration with the Villar Group to strategically and sustainably expand AllHome's network
5 Collaboration with the Villar Group to strategically and sustainably expand AllHome's network Villar Group, Vista Land and Golden Bria have proprietary knowledge and real estate industry experience to position AllHome for strategic and sustainable growth I Creating demand for renovations and furni
Slide 18: Experienced and founder-led management team with extensive knowledge of homebuilding markets
6 Experienced and founder-led management team with extensive knowledge of homebuilding markets Unparalleled insights into the Philippines’s homebuilding markets and strong operational expertise Board of Directors Manuel B. Villar, Jr. Camille A. Villar Manuel Paolo A.Villar Chairman Vice Chairman Di
Slide 19: Future growth strategies
Section 3 Future growth strategies
Slide 20: Future strategies
Future strategies No. of stores Store space (sqm) 1 Further expand store 460,188 network 70 196,327 25 1H2019 2020 1H2019 2020 Revenue contribution of in-house brands Gross profit margin 2 Continue to expand 10.0 - 20.0% c.15-25% higher offering of in-house gross margins brand products 4.7% 2018 202
Slide 21: Further expand the store network across the Philippines
Further expand the store network across the Philippines Robust pipeline for store network expansion Planned stores timetable - Lease agreements for all stores signed Est. Net selling Lease Construction Category Location Region Store format Open space (sqm) signed started C9 Group A (2H2019) C1 3 A1
Slide 22: Financial information
Section 4 Financial information
Slide 23: Exceptional growth supported by multiple drivers
Exceptional growth supported by multiple drivers AllHome has grown significantly over the past four years Store network expansion Customer traffic Revenue growth Number of stores (PHPm) 109 114 111 63 2,547 2,049 70 1,633 1,568 23 25 15 18 7,192 2016 2017 2018 1H2019 2020 2016 2017 2018 1H 2019 Aver
Slide 24: Proven track record of growth and profitability
Proven track record of growth and profitability Revenues Gross profit and margin (PHPm) (PHPm) Margin 27.1% 27.1% 29.6% 29.0% 29.5% 7,192 2,130 4,896 5,0551 1,4921 3,431 1,324 3,028 928 879 2016 2017 2018 1H 2018 1H 2019 2016 2017 2018 1H 2018 1H 2019 EBITDA2 and margin Net profit and margin (PHPm)
Slide 25: Working capital
Working capital Inventory turnover1 Trade receivables turnover2 Trade payables turnover3 Days Days Days 42 50 177 39 31 151 132 20 17 2017 2018 1H 2019 2017 2018 1H 2019 2017 2018 1H 2019 • Increase in inventory turnover days as a • Decrease in trade receivables turnover • Continued decrease in trad
Slide 26: Use of proceeds and dividend policy
Use of proceeds and dividend policy Use of proceeds • Based on the offer price of PHP11.50 per offer share Store expansion – capital expenditure & working capital (43.4%) (In PHPbn) • 18 new stores in 2H 2019 and 10 new stores in 2020 – To be used in building fit-out, expenses for furniture and fixt
Slide 27: Thank you.
Thank you.
Slide 28: Appendix: Industry information
Appendix: Industry information
Slide 29: AllHome's stores are located in the key regions of growth within the Philippines
AllHome's stores are located in the key regions of growth within thePhilippines Various flagship infrastructural projects outside of the National Capital Region are intended to balance the country’s economic development and are devised to help narrowing income gaps, drive job creation, and increase
Slide 30: The Philippines stands out as one of the most dynamic economies in Southeast Asia
The Philippines stands out as one of the most dynamic economies in Southeast Asia The young and large population of the Philippines is expected to be one of the main pillars of its economic growth as young adults form the base of the workforce Youngest country in Southeast Asia with a Robust economi
Slide 31: Appendix: Business & operations
Appendix: Business & operations
Slide 32: Further expand the store network across the Philippines
Further expand the store network across the Philippines Significant growth potential • Attractive demographics suggesting a strong demand for residential homes in the country • Strong pipeline of Villar Group homes strategically targeting middle class in the Philippines • Underpenetrated home improv
Slide 33: Continue to expand our offering of in-house brand products
Continue to expand our offering of in-house brand products Continued expansion and development of in-house brands to further improve profitability and customer satisfaction In-house brand products In-house product development process Exclusivity 1 Collect data at point of sale (POS) Collect sales
Slide 34: Introduce new format to expand our customer base
Introduce new format to expand our customerbase The AllBuilders new store format is complementary to AllHome and will expand our customer base Growth in the Philippines residential construction market AllHome's edge in builders' and contractors' segment 2014 – 2018 Villar Group's 42 years of 292,3
Slide 35: Continue to enhance shopping experience to grow customer base
Continue to enhance shopping experience to grow customer base Further improvements to our shopping experience will drive stronger store productivity and customer loyalty A New initiatives and differentiated value-adding services to customer • Currently offering styling consultations with in-house de
Slide 36: Store and service upgrade to improve shopping experience
Store and service upgrade to improve shopping experience Upgrades to our store layout and decoration will improve overall shopping experience for our customers AllHome appliance section AllHome tiles section Old New Old New AllHome furniture section AllHome customer lounge Old New Old New
Slide 37: Continue to invest in technology and supply chain solutions
Continue to invest in technology and supply chain solutions Investment in technology and supply chain enhances customer loyalty and ensures sufficient capacity to support expanding store network Investment in technology Investment in supply chain solution Properly time Collect customer data through
Slide 38: Nationwide store network and multi-format strategy
Nationwide store network and multi-format strategy AllHome's multi-format proposition caters to a wide range of customer demand and preferences (As of June 30, 2019) Large mall-based Large free-standing Small specialty AllBuilders Number of stores 18 4 3 na Total net selling space 162,046 33,126 1,1
Slide 39: Highly efficient marketing tactics
Highly efficient marketing tactics AllHome uses a multi-channel marketing strategy to reach potential customers In-store Prints and local store Social Media marketing Showroom Flyers design ideas and inspirations 41.8K 331.7K Followers Likes Out-of-home advertisements VS. Wilcon: 4.6K 78.2K billboar
Slide 40: Logistics management and IT system
Logistics management and IT system Well-established logistics and IT systems to support operations AllHome has two distribution centers located in Muntinlupa and Laguna which supports inventory flow and control – Both distribution centers are self-operated – Current utilization rates are around 90
Slide 41: Human resources, training and development
Human resources, training and development Comprehensive training, development and engagement programs to support employees Training and development • Take measures to control our labor costs with improved worker productivity through cross-training of personnel to enable them to handle multiple areas
Slide 42: Appendix: Financial information
Appendix: Financial information
Slide 43: Operating costs continue to improve as business continues to expand
Operating costs continue to improve as business continues to expand Operating expenses1,2 Rental expenses1 (PHPm) (PHPm) % of 25.1% 24.1% 21.5% 24.4% 16.5% % of 8.2% 8.2% 6.3% 7.3% 1.3% Revenues Revenues Excl. PFRS 16 impact: 17.8% Excl. PFRS 16 impact: 6.3% 1,545 450 400 1,182 861 282 740 8341 213
Slide 44: Close lender relationship and capital expenditures
Close lender relationship and capital expenditures Total debt & net debt Gearing profile (PHPm) (PHPm) 192% 4,315 4,649 6,000 80% 161% 162% 5,000 2,900 104% 60% 4,000 3,000 40% 1,450 4,017 4,316 2,000 56% 53% 2,500 40% 33% 20% 1,000 974 0 0% 2016 2017 2018 1H 2019 2016 2017 2018 1H 2019 Debt / Asset
Slide 45: Summary income statement
Summary income statement For the years ended December 31 For the six months ended June 30 (PHPm, unless specified) (USDm1,2) (USDm1,2) 2016 2017 2018 2018 2018 20193 20193 Revenues 3,430.60 4,896.30 7,192.20 140.3 3,028.1 5,055.2 98.6 Cost of goods sold 2,502.6 3,571.8 5,061.9 98.8 2,148.9 3,563.4 6
Slide 46: Summary balance sheet
Summary balance sheet As of December 31 As of June30 (USDm1,2) (USDm1,2) (PHPm, unless specified) 2016 2017 2018 2018 20193 20193 Cash and cash equivalents 475.8 399.8 298.5 5.8 333.3 6.5 Trade and other receivables 469.7 591.3 1,196.4 23.3 686.3 13.4 Inventories 1,087.4 1,494.3 2,690.9 52.5 4,295.3
Slide 47: Summary cash flow statement
Summary cash flow statement For the years ended December 31 For the six months ended June30 (USDm1,2) (USDm1,2) (PHPm, unless specified) 2016 2017 2018 2018 2018 20193 20193 Net cash from (used in) operating activities (465.1) (623.6) (250.5) (4.9) 200.9 954.7 18.6 Net cash used in investing activit