President Chain Store Corporation · TWSE:2912
President Chain Store — 9M 2022 Earnings Presentation
21 slides from President Chain Store's earnings presentation, Dec 1, 2022
Slide 1: President Chain Store Corp.
President Chain Store Corp. 2912 TT
Slide 2: 2022 9M Highlights and Results
2022 9M Highlights and Results 2
Slide 3: Historical Financial Results
Historical Financial Results Unit: NTD billion 2017 2018 2019 2020 2021 YOY Revenue 144.5 154.1 158.0 168.1 168.0 -0.1% (Company Only) Revenue 221.1 244.9 256.1 258.5 262.7 1.6% (Consolidated) Net Profit 31.0 10.2 10.5 10.2 8.9 -13.4% One-off gain from Starbucks 20.4 - - - - - deal EPS (NT$) 29.83 9
Slide 4: 2022 9M Financial Results
2022 9M Financial Results Unit: NTD billion YTD YTD 3Q22 3Q21 YOY YOY 9M22 9M21 Revenue 48.37 41.61 16.2% 135.98 124.95 8.8% (Company Only) Revenue 75.85 65.44 15.9% 214.64 194.09 10.6% (Consolidated) Net Profit 3.14 2.34 33.9% 8.60 7.26 18.5% (Consolidated) Net Profit attributable to the 2.69 2.06
Slide 5: Sales and Profitability (Consolidated)
Sales and Profitability (Consolidated) • The impact of COVID-19 has been narrowing down and Taiwan 7-11, Philippines 7-11, Starbucks, Cosmed and Uni- President department store keep increasing and. So the operating profit can grow in 9M22. And the performance of the main subsidiaries have enhanced q
Slide 6: Sales and Profitability (Parent)
Sales and Profitability (Parent) • The sales in 3Q22 increased and led by the increase of PSD which was driven by the differentiated products like fresh food and CITY CAFE and improved quarter by quarter. • The 3Q22 profit raised thanks to the improvement of Taiwan 7-11 and the recovery of subsidiar
Slide 7: Segment Information
Segment Information 5.63% sales 7.91% pre-tax profits 0.80% 10.05% 28.48% 52.55% 62.81% 31.77% Taiwan 7-11 Retail Logistics Others,Adjustment and Taiwan 7-11 Retail Logistics Others,Adjustment and elimination elimination Retail business: Philippines 7-11, Cosmed, Takkyubian(Transnet), Books.com, Mec
Slide 8: Steady cash flow during pandemic
Steady cash flow during pandemic Net Cash Cash Conversion Day (Consolidated) (Consolidated) Unit: NTD 35.0 32.4 billion 0.0 28.5 29.2 30.0 26.4 -5.0 24.3 25.0 -10.0 20.0 -15.0 15.0 -20.0 10.0 -20.7 -20.0 -20.3 5.0 -25.0 -22.4 -24.6 - -30.0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Note: Aver
Slide 9: Sustainable cash dividend
Sustainable cash dividend 30 110% 25 105% 20 100% 15 95% 10 90% 5 85% 0 80% Unit: $NT 2017 2018 2019 2020 2021 cash dividends 7 7.2 25.0 8.8 9.0 9.0 9.0 Payout Ratio 83.81% 89.64% 88.76% 91.39% 105.63% Note：2021 cash dividend has been approved by AGM. 9
Slide 10: Outlook
Outlook 10
Slide 11: Innovation Integration: O2O Benefit Maximization; Market Redistribution
Innovation Integration O2O Benefit Maximization; Market Redistribution ∞ Lifestyle-Based Service Platform That Exceeds Customer Expectations Satellite 7-11 Stores Innovation and Integration Generate Extra Revenues Attract Consumers to the Intelligent Vending Stores Machine E-Service Pursue new store
Slide 12: Aggressive Expansion; Strengthen the Franchise
Aggressive Expansion; Strengthen the Franchise • Aggressive expansion focusing on both quality and quantity to ensure economies of scale • Providing full support to franchisees during Covid-19, maintaining an approximately 90% franchisee ratio to total store, solidifying the franchise system and lon
Slide 13: Build Diverse Lifestyle Platforms
Build Diverse Lifestyle Platforms • Pooling internal and external resources to create group synergy Experience Education • Create opportunities for customers to look around the stores and provide 4E experience Entertainment Exploration ∞ • Provide diverse products mix to satisfy customer demands • I
Slide 14: Become a Reliable Fresh Food Platform
Become a Reliable Fresh Food Platform Increase Value Grasp Trends Diversify • Co-branding with Michelin star restaurants • Healthy Vegetables - Veggie Selection; Simple Channels • Mobile ordering and pickup APP - Digital Marketing Tools • Optimizing taste to shake the food market Fit • iPre-order &
Slide 15: Shape CITY CAFE Brand Culture
Shape CITY CAFE Brand Culture 2004 2015 2020 2021 Launch of Revenues Mobile Revenues + Cloud CITY CAFE 10 Billion + Ordering and 15 Billion + Pickup Service Consolidating existing customer base Grasping digital opportunity Promoting out-of-store services and develop new customer segments Steady gr
Slide 16: New Businesses Expansion; New Highs of Commission
New Businesses Expansion; New Highs of Commission ES Transaction Collection Transaction per year per year 300-400 Resource Integration 300-400 million million Expand the Scope Logistics integration, transportation capacity Markets of migrant workers Further Dedication in enhancement -Remittance,
Slide 17: Digital Evolution; Innovation Breakthroughs
Digital Evolution; Innovation Breakthroughs Start of Group Number of Membership Members Integration Exceeding14mn Number of Number of The fifth The first X-Store Members Integrating Group Expanding Members X-Store Unmanned store Exceeding12mn Members from 14 external reach 6.4mn Unmanned store Chann
Slide 18: Create Comprehensive Digital Service Platform
Create Comprehensive Digital Service Platform OPENPOINT Ecosphere Member Contribution UP Precision marketing 2021 Member Contribution • Expand external partnerships to • Member segment label boost traffic • Point monetization, circular • Operation of customer 50%↑ data center to create economy circl
Slide 19: 7-ELEVEN Philippines Recovers Steadily in Post-Pandemic Era
7-ELEVEN Philippines Recovers Steadily in Post-Pandemic Era Store adjustment tailored to Diversify products to optimize Mastering digital tools and business district portfolio creating digital ecosphere • 3,073 stores in 2021, with 60%↑market • Focus on fresh food, coffee, grocery • Continuous optim
Slide 20: ESG: Sustainable Earth + Inclusive Society + Happy Corporation
ESG: Sustainable Earth + Inclusive Society + Happy Corporation 2021: Start of the Sustainability Era at PCSC, Incorporating Sustainability into Our Daily Operations Decrease the use of Strengthen food waste Reduce carbon plastics management emissions Disposable Complete • Launch Leftover iLove Food
Slide 21: The End
The End 21
President Chain Store — 9M 2022 Earnings Presentation on 6ix