President Chain Store Corporation · TWSE:2912
President Chain Store — Credit Suisse Asia Technology Conference 2011
23 slides from President Chain Store's conference presentation, Sep 14, 2011
Slide 1: President Chain Store
President Chain Store 2912TT pcsc 1
Slide 2: 2010 and 2011H1 Results
2010 and 2011H1 Results pcsc 2
Slide 3: Trend of Sales and Store no.
Trend of Sales and Store no. 120 ~ 110 100 ~ 60 50 mm Revenie Stores Unit:$NT bn 3
Slide 4: Parent Income Statement
Parent Income Statement Unit:$NT’million 2010 YOY 2011H1 YOY Amount ％ ％ Amount ％ ％ Net sales 111,074 96.9% 12.9% 56,527 96.7% 6.2% Other operating revenue 3,590 3.1% 6.4% 1,929 3.3% 9.5% Total operating revenue 114,664 100.0% 12.7% 58,456 100.0% 6.4% Gross profit 35,923 31.3% 9.0% 18,495 31.6% 7.9%
Slide 5: Profitability Hit a New High
Profitability Hit a New High 5 33.85% 4.5 27.28% 4 3.5 20.71% 3 2.5 14.14% 2 7.57% 1.5 1 1.00% unit：NT$ bn 2005 2006 2007 2008 2009 2010 2011H1 Net Profit 3.65 3.82 3.62 3.52 4.06 5.73 3.65 Operating Profit 4.18 4.51 4.85 4.61 4.89 5.53 3.02 Operating Margin 4.50% 4.50% 4.70% 4.50% 4.80% 4.80% 5.16%
Slide 6: Two Engines for Growth: 7-11 Taiwan and Subsidiaries
Two Engines for Growth: 7-11 Taiwan and Subsidiaries NI grows 41% in 2010 NI grows 14.8% in 2011H1 Solid growth from Taiwan 7-11 Positive contribution from Subsidiaries Internal strategies 12 subsidiaries’ -New store formats NI over NT$100m -Private Label in 2010. products Strong earning -Virtua
Slide 7: Business Scope
Business Scope Retail F&B •• Taiwan Taiwan 7-11 7-11 •• 21 21 Century Century (100%) (100%) •• Cosmed Cosmed (100%) (100%) •• Oven Oven Bakery Bakery (100%) (100%) •• Being Being Spa Spa (100%) (100%) •• Cold Cold Stone Stone (100%) (100%) •• Smile Smile Gas Gas Station Station (80.87%) (80.87%) ••
Slide 8: Overseas Investment Structure
Overseas Investment Structure President Chain Store 100% 100% President Chain Store (BVI) 100% PCSC (China) Drugstore Limited 65% President Chain Store President Chain Store PCSC Cosmed (Labuan) Holdings (Hong Kong) Holdings (Shen Zhen) Shanghai Seven 100% Philippine Seven 56.59% Wuhan Oven Bakery 1
Slide 9: Consolidated Sales Contribution
Consolidated Sales Contribution Logistic 1.6% 1.7% Support 0.2% 0.2% China 5.5% 5.4% F&B 1.7% 1.7% Retail 22.9% 26.2% 7-11 68.1% 64.8% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 2010H1 2011H1 Unit:$NT’million 7-11 Retail F&B China Support Logistic 2011H1 58,456 25,554 1,817 5,255 1,753 43,
Slide 10: Consolidated Net Profit Contribution
Consolidated Net Profit Contribution Logistic 8.3% 7.1% Support 2.1% 2.2% China -1.5% -1.9% F&B 2.0% 1.2% Retail 16.5% 21.3% 7-11 89.1% 88.0% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 2010H1 2011H1 Unit:$NT’million 7-11 Retail F&B China Support Logistic 2011H1 3,647 881.18 51.53 (77.05) 93.03 296.2
Slide 11: Taiwan Subsidiaries
Taiwan Subsidiaries Unit: $NT’m Lifestyle Business Restaurant Cosmed Taiwan Starbucks Taiwan Afternoon Tea (100%) (30%) (51%) Stores:340 Stores: 241 Stores: 10 NI:10’FY:297 11’H1:152 NI: 10’FY:329 11’H1:200 NI: 10’FY:-35 11’H1:-8 09’FY:166 10’H1:126 09’FY:111 10’H1:180 09’FY:-34 10’H1:-10 MUJI Taiwa
Slide 12: China Subsidiaries
China Subsidiaries Unit: $NT’m Convenience Store Restaurant Shanghai 7-11 Starbucks Afternoon Tea (30%) (51%) (100%) Stores: 69 Stores: 208 Stores: 2 NI: 10’FY:-162 11’H1:-121 NI:10’FY:387 11’H1:306 NI:10’FY:-42 11’H1:-27 09’FY:-89 10’H1:-63 09’FY:229 10’H1:140 09’FY:-73 10’H1:-21 Mister Donut Cold
Slide 13: Dividend Policy
Dividend Policy pcsc 13
Slide 14: Cash Dividend Reaches New High
Cash Dividend Reaches New High 6 100% 5 90% 4 80% 3 70% 2 60% 1 0 50% 2005 2006 2007 2008 2009 2010 Total Dividends 3.4 3.5 3.2 3.4 3.6 4.9 Cash Dividends 3.4 3.5 3.2 2.04 3.6 4.9 Payout Ratio(%) 85% 84% 81% 88% 92% 89% pcsc 14
Slide 15: 2011 Outlook
2011 Outlook pcsc 15
Slide 16: Taiwan 7-11: Strengthen Real-virtual Retail Platform
Taiwan 7-11： Strengthen Real-virtual Retail Platform 40% are Bigger Stores Food Store Net Store City Café and + Fresh food Virtual Businesses 【Chain Store】=>【Net Store】 The most convenience platform for consumers. The most innovative platform for real-virtual integration. The most efficient pl
Slide 17: New Store Format
New Store Format Focus on raising store profitability. Adjust product mix depending on the characteristics of the neighborhood. Bigger stores account for 40%, and the number keeps growing. pcsc 17
Slide 18: Product Mix Adjustments
Product Mix Adjustments Higher quality：City Café provides convenience and good quality coffee. More choices：a variety of national brands and private label products. Reasonable prices：reasonable prices for daily necessities and private label products. pcsc 18
Slide 19: Innovative Promotions
Innovative Promotions Enhance value-added experience through cooperation with group affiliates and other channels. We have the most fans among Taiwanese companies. We use it as communication and marketing platform. pcsc 19
Slide 20: Virtual Businesses
Virtual Businesses ibon：New services include ticketing services for transportation, online shopping, etc. 7nET: 300,000 items, 640,000 membership. pcsc 20
Slide 21: Overseas Businesses - Transfer and localize
Overseas Businesses－Transfer and localize Philippine 7-11-Aiming for China-Aiming for becoming becoming best retailer of regional leading brands convenience for emerging markets. Enhance PSD through 524 stores in China, 353 in East product mix adjustment China. (Fresh food, general merchandise) Sh
Slide 22: Key to Continued Growth
Key to Continued growth Focus, Execution Next： Positive contribution from Chinese businesses Positive contribution from subsidiaries Solid growth from Taiwan 7-11 pcsc 22
Slide 23: Q&A
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