Robinsons Retail Holdings, Inc. · PSE:RRHI

Robinsons Retail — Q1 2016 Earnings Presentation

29 slides from Robinsons Retail's earnings presentation, May 16, 2016

  1. Slide 1: 1Q2016 Unaudited Earnings Presentation

    1Q2016 UNAUDITED EARNINGS PRESENTATION May 2016 20160516

  2. Slide 2: Agenda

    Agenda Results Highlights Store Network Consolidated Results Business Segments Working Capital Capital Expenditure Plans and Prospects 1

  3. Slide 3: 1Q2016 Unaudited Results Highlights

    1Q2016 Unaudited Results Highlights 2

  4. Slide 4: Nationwide Presence

    Nationwide Presence Metro Manila Visayas Business segment # of stores Business segment # of stores Supermarkets 41 Supermarkets 18 Department stores 12 Department stores 7 DIY stores 47 DIY stores 35 Convenience stores 329 Convenience stores 27 Drug stores 83 Drug stores 30 Specialty stores 130 Spec

  5. Slide 5: 1Q2016 Stores and Gross Floor Area Statistics

    1Q2016 Stores and Gross Floor Area Statistics Number of Gross Floor Stores Area (GFA) (in ‘000 sqm) 1,506 1,327 1,356 1,514 RLC 252 270 Outside RLC 252 273 974 1,075 1,236 888 967 1,104 1,241 896 2014 2015 2014 2015 1Q2015 1Q2016 1Q20151Q2016 GFA GFA Contribution Contribution by Lessor by Segment De

  6. Slide 6: Consolidated Results

    Consolidated Results Net Sales1 (₱ bn) SSSG (%) 90.9 9.0% 80.4 9.3 22.7 7.3 8.1 19.7 2.5 3.6% 4.1% 3.4% 7.1 5.5 1.7 2.2 4.6 9.9 1.9 1.4 8.5 1.3 2.5 2014 2015 1Q2015 1Q2016 14.9 2.2 13.7 3.2 3.0  15.1% yoy net sales growth in 1Q2016: 39.2 43.2 9.7 11.0  6.1% from new stores  9.0% from SSSG 2014 20

  7. Slide 7: 1Q2016 Contribution Per Segment

    1Q2016 Contribution Per Segment Net Sales EBIT EBITDA Breakdown Breakdown Breakdown Discretionary Retailing Specialty Specialty stores Specialty 36% stores stores Drugstores 5.5% 8.5% 11.0% 10.0% Drugstores DIY stores Convenience 8.0% 10.9% stores Convenience 1.2% stores Supermarkets Supermarkets DI

  8. Slide 8: Consolidated Results

    Consolidated Results Gross Profit1 (₱ mm) EBITDA2 (₱ mm) % of Net Sales % of Net Sales 21.7% 21.7% 21.6% 21.2% 7.2% 7.0% 6.0% 5.9% 19,749 17,429 6,376 5,768 4,252 4,805 1,190 1,348 Net income 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016 attributable EBIT (₱ mm) Net Income (₱ mm) to equity 5.6% %

  9. Slide 9: Operating Expenses

    Operating Expenses Adjusted Operating Expenses1 (₱ mm, % of Net Sales) 17.5% 17.4% 16.8% 16.3% % of Net Sales 15,235 Rental and utilities Personnel costs and contracted services 13,095  Operating Others 7,486 8.2% 6,549 8.1% expenses as a % of net sales 3,966 4.9% 4,805 5.3% 3,460 3,946 declined du

  10. Slide 10: Supermarket Business Segment

    Supermarket Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 43,239 39,199 8,203 7,362 3,009 2,664 19.0% 18.8% 7.0% 9,689 10,960 1,783 2,011 6.8% 559 655 18.4% 18.4% 6.0% 5.8% 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016  Increase in sales in 1Q2016 lar

  11. Slide 11: Supermarket Business Segment

    Supermarket Business Segment SSSG (%) Store Count 8.7% 124 124 111 113 3.3% 3.3% 3.4% 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016  Robust 1Q SSSG due higher basket size and transaction count 10

  12. Slide 12: Supermarket Business Segment

    Supermarket Business Segment  Robinsons Supermarket partnered with HappyFresh for its online grocery delivery service  Customers can make an order from within a 5km radius of 20 selected Robinsons Supermarket branches in Metro Manila 11

  13. Slide 13: Department Store Business Segment

    Department Store Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 14,906 13,738 3,926 3,607 1,153 1,056 26.3% 26.3% 7.7% 7.7% 2,985 3,154 774 807 171 171 25.9% 25.6% 5.7% 5.4% 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016  Increase in sales in 1Q2016 dri

  14. Slide 14: Department Store Business Segment

    Department Store Business Segment SSSG (%) Store Count 7.5% 42 42 42 5.1% 5.5% 4.8% 40 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016  Robust SSSG mainly due to higher basket size 13

  15. Slide 15: DIY Store Business Segment

    DIY Store Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 9,872 8,521 3,067 2,641 911 945 31.1% 10.7% 31.0% 9.6% 2,208 2,480 692 792 212 218 31.4% 31.9% 9.6% 8.8% 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016  Growth in net sales driven by new store sal

  16. Slide 16: DIY Store Business Segment

    DIY Store Business Segment SSSG (%) Store Count 9.8% 166 166 7.2% 5.0% 161 4.8% 159 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016  Robust SSSG due to sustained strong residential construction activities 15

  17. Slide 17: Convenience Store Business Segment

    Convenience Store Business Segment System-wide Sales & Net Sales Gross Profit & Royalty Income (₱ mm) (₱ mm) EBITDA (₱ mm) 7,961 6,711 2,070 39.4% 289 36.1% 271 System-wide sales 1,603 527 37.7% 433 Net sales 34.7% 6.3% 5,493 2,079 4.9% 4,616 1,796 1,544 454 546 82 1,170 131 59 121 1,256 1,385 416 4

  18. Slide 18: Convenience Store Business Segment

    Convenience Store Business Segment SSSG (%) Store Count 519 518 7.0% 473 5.4% 5.0% 450 -2.6% 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016 Robust SSSG was driven by the strong sales performance of ready-to-eat category 17

  19. Slide 19: Drugstore Business Segment

    Drugstore Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 8,070 7,061 1,265 1,129 373 321 16.0% 15.7% 4.6% 2,229 362 1,876 312 4.5% 107 87 16.6% 4.8% 16.2% 4.6% 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016  Growth in sales propelled by the sales contri

  20. Slide 20: Drugstore Business Segment

    Drugstore Business Segment SSSG (%) Store Count 378 367 10.7% 330 320 3.3% 1.0% -0.9% 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016 SSSG turned around due to increase in purchasing power from wage hike, low fuel prices and election spending 19

  21. Slide 21: Specialty Store Business Segment

    Specialty Store Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 10,359 2,761 7,889 2,247 635 533 28.5% 2,722 26.7% 6.8% 702 6.1% 1,917 566 104 118 29.5% 25.8% 5.6% 4.3% 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016  Growth in net sales driven by the dou

  22. Slide 22: Specialty Store Business Segment

    Specialty Store Business Segment SSSG (%) Store Count 12.7% 288 288 243 239 6.4% 4.9% 3.1% 2014 2015 1Q2015 1Q2016 2014 2015 1Q2015 1Q2016  Strong SSSG in due to robust SSSG of toys and appliances formats 21

  23. Slide 23: Working Capital

    Working Capital Working capital days trend 6.0 6.9 7.1 5.9 Trade receivable days1 2013 2014 2015 1Q2016 52.1 54.3 56.0 48.5 Inventory days2 2013 2014 2015 1Q2016 83.3 82.0 75.9 63.4 Trade payable days3 83.3 82.0 75.9 63.4 -28.8cycle4 -22.9 -14.5 -1.6 Cash conversion 2013 2014 2015 1Q2016  Negative

  24. Slide 24: 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% 3.2% 3,876 15% 3% 3,144 15% 18% 732 4% 10% 11% 4% 14% 11% 13% 10% 11% 13% 21% 42% 42% 44% 2014 2015 1Q2016 1 Capital exp

  25. Slide 25: Robinsons Wallet

    Robinsons Wallet  RWallet is a pin-based, re-loadable debit card used for shopping in Robinsons Retail stores  Powered by Robinsons Bank, this is a more convenient and secure alternative to gift certificates  A special edition cash card was launched for UniLab allowing its employees to purchase t

  26. Slide 26: Plans and Prospects

    Plans and Prospects Organic gross expansion of 200+ new stores in 2016 with CAPEX of ₱5bn GP margin increase of 10-20 bps Same store sales growth of 3-5% Mergers and acquisitions 25

  27. Slide 27: Consolidated Statements of Financial Position (Unaudited)

    Consolidated Statements of Financial Position (Unaudited) March 31 December 31 PHP mm 2016 2015 ASSETS Current Assets Cash and cash equivalents 7,197 9,757 Short-term investments 7 7 Merchandise inventories 11,011 10,576 Other current assets 3,398 3,462 Total Current Assets 21,613 23,802 Noncurrent

  28. Slide 28: Consolidated Statements of Comprehensive Income (Unaudited)

    Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended March 31 PHP mm 2016 2015 Sales - net of sales discounts and returns 22,696 19,715 Cost of merchandise sold 17,891 15,463 Gross Profit 4,805 4,252 Royalty, rent and other revenues 489 397 Gross profit including other reve

  29. Slide 29: Consolidated Statements of Cash Flows (Unaudited)

    Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31 PHP mm 2016 2015 CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax 1,073 1,023 Adjustments for: Depreciation and amortization 443 399 Interest expense 16 5 Equity in net earnings of an associate (26) (11) Divid

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