Robinsons Retail Holdings, Inc. · PSE:RRHI

Robinsons Retail — 9M 2014 Earnings Presentation

27 slides from Robinsons Retail's earnings presentation, Nov 18, 2014

  1. Slide 1: 9M 2014 Unaudited Earnings Presentation

    9M 2014 Unaudited Earnings Presentation 20141118

  2. Slide 2: Agenda

    Agenda Results Highlights Store Network Consolidated Results Business Segments Working Capital Capital Expenditure Recent Developments 1

  3. Slide 3: 9M 2014 Unaudited Results Highlights

    9M 2014 Unaudited Results Highlights 2

  4. Slide 4: 9M 2014 Store Network

    9M 2014 Store Network Visayas Metro Manila Business units No. of stores Supermarkets 13 Business units No. of stores Department stores 6 Supermarkets 32 DIY stores 32 Department stores 11 Convenience stores 16 DIY stores 47 Drug stores 19 Convenience stores 278 Specialty stores 24 Drug stores 62 Tot

  5. Slide 5: 9M 2014 Store Network

    9M 2014 Store Network 2012 2013 Inc. 9M2013 9M2014 Inc. Supermarkets 74 91 17 84 102 18 Department Stores 36 38 2 36 40 4 DIY Stores 111 126 15 119 153 34 Convenience Stores 336 386 50 354 440 86 Drug Stores* 218 239 21 228 296 68 Specialty Stores 137 184 47 161 227 66 Total 912 1,064 152 982 1,258

  6. Slide 6: Consolidated Results

    Consolidated Results Net Sales1 (PHP bn) SSSG (%) 56.2 4.4% 4.9 3.7% 47.2 5.2 2.3% 3.4 3.3 1.1% 19.2 4.6 6.0 3.1 15.9 1.6 3Q2013 3Q2014 9M2013 9M2014 5.1 8.9 1.8 1.2 1.1 1.6 8.0 1.0 2.1  19.1% yoy growth in 9M 1.7 2.8 2014 net sales coming from: 2.4 27.9  15.4% from 276 new stores 23.0 added for t

  7. Slide 7: 9M 2014 Contribution Per Segment

    9M 2014 Contribution Per Segment Net Sales EBIT EBITDA Breakdown Breakdown Breakdown Discretionary Specialty Specialty Retailing Specialty stores stores stores 35% Drug stores Drug stores 8.5% 4.5% 6.7% DIY stores 7.2% 6.3% Convenience Convenience 10.6% stores stores 2.7% 5.6% DIY stores Supermarket

  8. Slide 8: Consolidated Results

    Consolidated Results Gross profit1 (PHP mm) EBITDA2 (PHP mm) % of Net Sales % of Net Sales 21.5% 21.8% 21.6% 7.3% 7.1% 6.9% 21.1% 8.0% 12,083 3,853 9,973 3,346  Growing scale 3,427 4,193 1,262 1,407 pushed GP margin higher 3Q2013 3Q2014 9M2013 9M2014 3Q2013 3Q2014 9M2013 9M2014  Sustained gross pr

  9. Slide 9: Operating Expenses

    Operating Expenses Adjusted operating expenses1 (PHP mm, % of Net Sales) 16.3% 16.5% 16.1% 15.7% Total Opex as % of Net Sales 9,280 Others 7,596 1,789 3.2% Personnel costs and contracted services Rental and utilities 1,399 3.0%  Increase in OPEX as % 2,790 5.0% of net sales due to 2,276 4.8% unprec

  10. Slide 10: Supermarket Business Segment

    Supermarket Business Segment Net Sales (PHP mm) Gross Profit (PHP mm) EBITDA (PHP mm) 27,929 5,225 23,004 1,848 4,239 1,465 9,762 18.7% 6.6% 1,886 722 8,005 1,542 18.4% 630 6.4% 19.3% 7.9% 7.4% 19.3% 3Q2013 3Q2014 9M2013 9M2014 3Q2013 3Q2014 9M2013 9M2014 3Q2013 3Q2014 9M2013 9M2014  Increase in sa

  11. Slide 11: Supermarket Business Segment

    Supermarket Business Segment SSSG (%) Store Count 4.8% 4.1% 91 102 74 84 0.9% -0.7% 3Q2013 3Q2014 9M2013 9M2014 2012 2013 9M2013 9M2014  Strong SSSG due to robust sales performance of stores that were opened in 2012 and improved service levels 10

  12. Slide 12: Department Store Business Segment

    Department Store Business Segment Net Sales (PHP mm) Gross Profit (PHP mm) EBITDA (PHP mm) 8,939 2,365 7,956 2,101 639 589 26.5% 2,422 2,774 740 26.4% 7.4% 647 197 7.1% 182 26.7% 26.7% 7.5% 7.1% 3Q2013 3Q2014 9M2013 9M2014 3Q2013 3Q2014 9M2013 9M2014 3Q2013 3Q2014 9M2013 9M2014  Increase in sales i

  13. Slide 13: Department Store Business Segment

    Department Store Business Segment SSSG (%) Store Count 5.4% 3.2% 40 38 0.8% 0.9% 36 36 3Q2013 3Q2014 9M2013 9M2014 2012 2013 9M2013 9M2014  SSSG was strong at 3.2% vs flattish SSSG recorded same period LY 12

  14. Slide 14: DIY Store Business Segment

    DIY Store Business Segment Net Sales (PHP mm) Gross Profit (PHP mm) EBITDA (PHP mm) 5,972 1,887 5,088 1,596 648 587 31.6% 2,139 668 31.4% 11.5% 1,722 539 207 227 10.8% 31.3% 31.2% 12.0% 10.6% 3Q2013 3Q2014 9M2013 9M2014 3Q2013 3Q2014 9M2013 9M2014 3Q2013 3Q2014 9M2013 9M2014  Growth in net sales dr

  15. Slide 15: DIY Store Business Segment

    DIY Store Business Segment SSSG (%) Store Count 9.6% 7.3% 5.3% 153 3.7% 111 126 119 3Q2013 3Q2014 9M2013 9M2014 2012 2013 9M2013 9M2014  Strong SSSG due to increased sales of imported products and emergency- related products 14

  16. Slide 16: Convenience Store Business Segment

    Convenience Store Business Segment System-wide Sales & Net Sales Gross Profit & Royalty Income (PHP mm) (PHP mm) EBITDA (PHP mm) 35.0% 34.8% 4,926 4,664 1,165 1,080 271 35.1% 34.6% 215 849 System-wide sales 813 1,497 1,614 3,349 391 8.8% 3,083 354 89 6.4% 68 Net sales 263 278 1,130 316 8.9% 1,006 26

  17. Slide 17: Convenience Store Business Segment

    Convenience Store Business Segment SSSG (%) Store Count 3.2% 3.7% 386 440 -1.0% -3.4% 336 354 3Q2013 3Q2014 9M2013 9M2014 2012 2013 9M2013 9M2014  Weak SSSG due to lower cigarette sales and supply chain issues 16

  18. Slide 18: Drug Store Business Segment

    Drug Store Business Segment Net Sales (PHP mm) Gross Profit (PHP mm) EBITDA (PHP mm) 5,223 846 4,596 757 245 244 16.5% 1,579 1,782 267 284 16.2% 95 5.3% 4.7% 84 16.9% 6.0% 15.9% 4.7% 3Q2013 3Q2014 9M2013 9M2014 3Q2013 3Q2014 9M2013 9M2014 3Q2013 3Q2014 9M2013 9M2014  Growth in sales in 9M 2014 driv

  19. Slide 19: Drug Store Business Segment

    Drug Store Business Segment SSSG (%) Store Count 3.4% 296 218 239 228 -0.4% 3Q2014 9M2014 2012 2013 9M2013 9M2014  Flattish SSSG in 3Q because of barangay elections spending LY and intermittent power TY due to typhoons * SSD was only acquired in July 2012 and consolidated into Robinsons Retail begi

  20. Slide 20: Specialty Store Business Segment

    Specialty Store Business Segment Net Sales (PHP mm) Gross Profit (PHP mm) EBITDA (PHP mm) 5,128 1,444 265 3,758 226 1,014 28.2% 1,727 503 108 6.0% 27.0% 5.2% 1,255 342 70 29.1% 6.3% 27.2% 5.6% 3Q2013 3Q2014 9M2013 9M2014 3Q2013 3Q2014 9M2013 9M2014 3Q2013 3Q2014 9M2013 9M2014  Growth in net sales m

  21. Slide 21: Specialty Store Business Segment

    Specialty Store Business Segment SSSG (%) Store Count 8.6% 7.6% 5.4% 5.6% 227 184 161 137 3Q2013 3Q2014 9M2013 9M2014 2012 2013 9M2013 9M2014  Positive 3Q SSSG due to stellar SSSG of toys, appliances and Daiso Japan, offsetting the negative SSSG of int’l fashion brands 20

  22. Slide 22: Working Capital

    Working Capital Working capital days trend 4.7 6.0 4.9 Trade receivable days1 2012 2013 9M2014 53.2 47.8 48.5 Inventory days2 2012 2013 9M2014 96.9 83.3 61.6 Trade payable days3 2012 2013 9M2014 Cash conversion cycle4 -44.4 -28.8 -3.5 2012 2013 9M2014  Negative working capital sustained in 9M 2014

  23. Slide 23: Capital Expenditure

    Capital Expenditure Capital expenditure breakdown (PHP mm)1 Supermarkets Department stores DIY stores Convenience stores Drug stores Specialty stores % of group’s net sales 3.6% 4.2% 4.8% 2,797 2,693 18% 19% 2,094 3% 4% 9% 11% 14% 10% 8% 4% 11% 13% 15% 21% 12% 45% 45% 38% 2012 2013 9M2014 1 Capital

  24. Slide 24: Recent Developments: Supermarket – Robinsons Selections

    Recent Developments Supermarket – Robinsons Selections  Robinsons Supermarket opened its first high-end supermarket, called Robinsons Selections, in Bonifacio Global City, Taguig last October 23, 2014. 23

  25. Slide 25: Consolidated Financial Statements

    Consolidated Financial Statements Consolidated Statements of Financial Position (Unaudited) 31-Dec PHP mm 9M 2014 2013 ASSETS Current assets Cash and cash equivalents 8,850 30,136 Short-term investments 1,847 335 Merchandise inventories 8,587 7,029 Other current assets 2,273 2,116 Total Current Asse

  26. Slide 26: Consolidated Financial Statements (cont'd)

    Consolidated Financial Statements (cont’d) Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended June 30 Nine Months Ended September 30 PHP mm 3Q 2014 3Q 2013 9M 2014 9M 2013 Sales - net of sales discounts and returns 19,200 15,860 56,179 47,176 Cost of merchandise sold 15,0

  27. Slide 27: Consolidated Financial Statements (cont'd)

    Consolidated Financial Statements (cont’d) Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended September 30 PHP mm 9M 2014 9M 2013 CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax 3,516 2,816 Adjustments for: Depreciation and amortization 907 708 Equity in net earnings o

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