Robinsons Retail Holdings, Inc. · PSE:RRHI
Robinsons Retail — 9M2016 Earnings Presentation
28 slides from Robinsons Retail's earnings presentation, 2016
Slide 1: Robinsons Retail Holdings 9M2016 Unaudited Earnings
RETAIL HOLDINGS,INC. 2 ROBINSONS 9M2016 Unaudited Earnings == SS SS >=
Slide 2: Agenda
Agenda Results Highlights Store Network Consolidated Results Business Segments Working Capital Capital Expenditure Recent Developments 1
Slide 3: 9M2016 Unaudited Results Highlights
9M2016 Unaudited Results Highlights 2
Slide 4: Nationwide Presence
Nationwide Presence Metro Manila 1,541stores Visayas Business segment Supermarkets Department stores # of stores 42 12 Plus 1,864 TGP branches Business segment Supermarkets # of stores 19 Nationwide Department stores 8 DIY stores 49 DIY stores 38 Convenience stores 321 Convenience stores 28 Drug sto
Slide 5: 9M2016 Stores and Gross Floor Area Statistics
9M2016 Stores and Gross Floor Area Statistics1 Number of RLC Gross Floor Stores Outside RLC Area (GFA) (in ‘000 sqm) 1,327 1,506 1,466 1,541 252 270 260 253 1,075 1,236 1,206 1,288 888 974 939 1,025 2014 2015 2014 2015 9M2015 9M2016 9M20159M2016 GFA GFA Contribution Contribution by Lessor by Segment
Slide 6: Consolidated Results: Net Sales and SSSG
Consolidated Results Net Sales1 (₱ bn) SSSG (%) 73.8 7.5% 8.2 5.7% 63.3 4.7% 3.8% 5.7 8.4 5.9 4.2 25.5 4.0 7.9 21.9 7.1 3Q2015 3Q2016 9M2015 9M2016 2.7 10.4 2.0 3.4 9.8 2.1 1.4 1.4 2.7 2.4 16.6% yoy net sales growth 3.1 3.2 in 9M2016: 30.8 34.7 12.0 9.1% from new stores 10.9 7.5% from SSSG 3Q2
Slide 7: 9M2016 Contribution Per Segment
9M2016 Contribution Per Segment Net Sales EBIT EBITDA Breakdown Breakdown Breakdown Discretionary Retailing 11.2% 5.6% 8.3% 36% 11.7% 9.5% 10.7% 4.9% 47.0% 16.4% 49.1% 53.3% 14.1% 14.6% 11.4% 13.1% 13.6% 5.6% 6
Slide 8: Consolidated Results
Consolidated Results Gross Profit (₱ mm) EBITDA (₱ mm) -♦- % of net sales -♦- % of net sales 21.7% 21.9% 21.8% 21.6% 7.1% 7.2% 6.8% 6.9% 15,967 13,767 5,071 4,306 Net income 4,752 5,575 1,548 1,827 attributable to equity holders 3Q2015 3Q2016 9M2015 9M2016 3Q2015 3Q2016 9M2015 9M2016 of the parent E
Slide 9: Operating Expenses
Operating Expenses Adjusted Operating Expenses1 (₱ mm, % of Net Sales) % of Net Sales 16.8% 17.1% 16.9% 16.7% Rental and utilities Personnel costs and contracted services 12,469 Others 10,818 5,996 8.1% Operating 5,362 8.5% expenses as a % 4,267 of net sales 3,694 3,398 5.4% 3,986 5.4% improved due
Slide 10: Supermarket Business Segment
Supermarket Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 34,681 30,785 6,632 5,861 2,489 2,176 10,919 12,050 2,121 2,360 844 946 19.4% 19.6% 19.0% 19.1% 7.7% 7.9% 7.1% 7.2% 3Q2015 3Q2016 9M2015 9M2016 3Q2015 3Q2016 9M2015 9M2016 3Q2015 3Q2016 9M2015 9M2016 Increase in 9M2016 s
Slide 11: Supermarket Business Segment SSSG and Store Count
Supermarket Business Segment SSSG Store Count Robust 7.2% 131 SSSG 124 mainly due 4.1% 4.3% 117 2.8% 111 to higher basket size 3Q2015 3Q2016 9M2015 9M2016 2014 2015 9M2015 9M2016 10
Slide 12: Department Store Business Segment
Department Store Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 10,414 9,801 2,595 2,727 705 691 3,083 3,224 824 848 215 190 26.7% 26.3% 26.5% 26.2% 7.0% 5.9% 7.2% 6.6% 3Q2015 3Q2016 9M2015 9M2016 3Q2015 3Q2016 9M2015 9M2016 3Q2015 3Q2016 9M2015 9M2016 Increase in 9M2016 sales d
Slide 13: Department Store SSSG and Store Count
Department Store Business Segment SSSG Store Count Robust SSSG 43 mainly due to 7.9% 6.0% 5.8% increase in 42 42 transaction 2.0% 41 count 3Q2015 3Q2016 9M2015 9M2016 2014 2015 9M2015 9M2016 12
Slide 14: DIY Store Business Segment
DIY Store Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 7,920 7,075 2,531 2,221 741 678 2,446 2,720 767 870 266 244 31.4% 32.0% 31.4% 32.0% 10.0% 9.8% 9.6% 9.4% 3Q2015 3Q2016 9M2015 9M2016 3Q2015 3Q2016 9M2015 9M2016 3Q2015 3Q2016 9M2015 9M2016 Growth in net sales driven by str
Slide 15: DIY Store SSSG and Store Count
DIY Store Business Segment SSSG Store Count Robust SSSG due to 7.7% 175 sustained 5.5% strong 5.1% 4.9% 166 161 162 residential construction activities 3Q2015 3Q2016 9M2015 9M2016 2014 2015 9M2015 9M2016 14
Slide 16: Convenience Store Business Segment
Convenience Store Business Segment System-wide Sales Gross Profit EBITDA (₱ mm) & Net Sales (₱ mm) & Royalty Income (₱ mm) 6,311 38.7% 40.4% 37.1% 40.3% 5,839 1,678 1,499 251 System-wide sales 190 2,002 2,045 1,115 1,281 Net sales 4,037 4,158 532 548 64 59 1,375 1,358 395 413 4.6% 4.3% 4.7% 6.0% 384
Slide 17: Convenience Store SSSG and Store Count
Convenience Store Business Segment SSSG Store Count 3Q SSSG was 519 flat due to 7.3% 511 500 stricter gov’t 5.5% regulations on 4.1% 450 liquor and -0.1% cigarettes 3Q2015 3Q2016 9M2015 9M2016 2014 2015 9M2015 9M2016 16
Slide 18: Drugstore Business Segment
Drugstore Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 8,412 5,899 1,419 3,380 943 484 2,066 584 274 218 323 105 15.6% 17.3% 16.0% 16.9% 5.1% 6.5% 4.6% 5.8% 3Q2015 3Q2016 9M2015 9M2016 3Q2015 3Q2016 9M2015 9M2016 3Q2015 3Q2016 9M2015 9M2016 Growth in 9M2016 sales propelled by
Slide 19: Drugstore SSSG and Store Count
Drugstore Business Segment SSSG Store Count Strong SSSG 7.4% 7.9% due to 5.4% 1,864 higher 1.9% basket size 320 367 354 395 3Q2015 3Q2016 9M2015 9M2016 2014 2015 9M2015 9M2016 18
Slide 20: Specialty Store Business Segment
Specialty Store Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 8,943 2,262 6,425 1,748 423 292 2,982 2,303 777 573 147 81 24.9% 26.1% 27.2% 25.3% 3.5% 4.9% 4.5% 4.7% 3Q2015 3Q2016 9M2015 9M2016 3Q2015 3Q2016 9M2015 9M2016 3Q2015 3Q2016 9M2015 9M2016 Growth in net sales driven by
Slide 21: Specialty Store SSSG and Store Count
Specialty Store Business Segment SSSG Store Count Strong SSSG 297 due to robust 14.0% 288 281 11.8% 243 SSSG of 10.6% appliances and 4.7% one-price point formats 3Q2015 3Q2016 9M2015 9M2016 2014 2015 9M2015 9M2016 20
Slide 22: Working Capital
Working Capital Working capital days trend 6.9 7.1 5.7 Trade receivable days1 2014 2015 9M2016 52.1 54.3 60.1 Inventory days2 2014 2015 9M2016 82.0 75.9 56.5 Trade payable days3 2014 2015 9M2016 Cash conversion cycle4 9.3 -22.9 -14.5 2014 2015 9M2016 1 Trade receivable days = No. of days x Trade and
Slide 23: Capital Expenditure
Capital Expenditure Capital expenditure breakdown (₱ mm)1 Supermarkets Department stores DIY stores Convenience stores Drugstores Specialty stores % of group’s net sales 4.8% 3.5% 5.8% 4,285 3,876 6% 15% 3,144 3% 50% 15% 18% 4% 11% 14% 13% 10% 4% 13% 6% 11% 42% 42% 23% 2014 2015 9M2016 1 Capital exp
Slide 24: Recent Developments
Recent Developments We acquired 100% stake of Chic Centre Corporation, a manufacturer and distributor of cosmetic products in the Philippines. 23
Slide 25: Thank you!
ROBINSONS (ZA RETAIL HOLDINGS, INC. Thank you!
Slide 26: Consolidated Statements of Financial Position (Unaudited)
Consolidated Statements of Financial Position (Unaudited) September 30 December 31 PHP mm 2016 2015 ASSETS Current Assets Cash and cash equivalents 6,371 9,757 Trade and other receivables 1,543 1,774 Merchandise inventories 12,684 10,576 Other current assets 2,096 1,695 Total Current Assets 22,694 2
Slide 27: Consolidated Statements of Comprehensive Income (Unaudited)
Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended Sept 30 Nine Months Ended Sept 30 PHP mm 2016 2015 2016 2015 Sales - net of sales discounts and returns 25,479 21,935 73,812 63,289 Cost of merchandise sold 19,904 17,184 57,845 49,522 Gross Profit 5,575 4,752 15,967 13,7
Slide 28: Consolidated Statements of Cash Flows (Unaudited)
Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended Sept 30 Years Ended December 31 PHP mm 2016 2015 2015 2014 CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax 4,485 3,986 5,848 5,219 Adjustments for: Depreciation and amortization 1,431 1,204 1,647 1,280 Interest expense
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