President Chain Store Corporation · TWSE:2912
President Chain Store — Q2 2022 Earnings Presentation
21 slides from President Chain Store's earnings presentation, Aug 22, 2022
Slide 1: President Chain Store Corp.
President Chain Store Corp. 2912 TT
Slide 2: 2022 1H Highlights and Results
2022 1H 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 1H Financial Results
2022 1H Financial Results Unit: NTD billion YTD YTD 2Q21 2Q22 YOY YOY 1H21 1H22 Revenue 41.5 44.8 7.9% 83.3 87.6 5.1% (Company Only) Revenue 63.6 71.1 11.9% 128.6 138.8 7.9% (Consolidated) Net Profit 1.9 2.9 49.3% 4.9 5.5 11.1% (Consolidated) Net Profit attributable to the 1.8 2.5 38.7% 4.5 4.6 3.2%
Slide 5: Sales and Profitability (Consolidated)
Sales and Profitability (Consolidated) • The impact of COVID-19 has been narrowing down and Philippines 7-11, Starbucks, Transnet and Cosmed keep increasing and recovering. So the operating profit can grow in 1H22. • Some amount of deferred tax liabilities in 1Q21 was reversed due to the injection o
Slide 6: Sales and Profitability (Parent)
Sales and Profitability (Parent) • Taiwan 7-11 has been recovering step by step in 2Q22. Not only the increase of fresh food, CITY CAFE and commission revenue but also the improvement of subsidiaries can drive the increase in sales and profit. • Some amount of deferred tax liabilities in 1Q21 was re
Slide 7: Segment Information
Segment Information sales 7.80% pre-tax profits 3.60% 0.82% 10.67% 28.83% 32.88% 52.85% 62.55% 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: 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 — Q2 2022 Earnings Presentation on 6ix