1H2007 results Home Product Center Public Company Limited August - PowerPoint PPT Presentation

ANALYST PRESENTATION 1H2007 results Home Product Center Public Company Limited August 14, 2007 1

HOMEPRO STORE NETWORK (as at June 30,2007) 17 Stores in Bangkok 17 Stores in Bangkok 12 Stores in Upcountry 12 Stores in Upcountry Chieng Mai Udonthani Khonkan Phitsanulok Nakornratchasima Chonburi Hua-Hin Pattaya Samui Suratthani Phuket Had Yai 2

PROFIT & LOSS STATEMENT Unit : MB % on % on %G 1H’07 1H’06 VAR Sales Sales 100.0 100.0 14.7 SALES 7,565.0 6,595.9 969.1 3.7 3.1 35.4 RENTAL & SERVICE 278.8 205.9 72.9 2.8 2.5 25.7 OTHER INCOMES 208.9 166.2 42.8 106.4 105.6 15.6 TOTAL REVENUE 8,052.7 6,968.0 1,084.8 77.0 76.7 15.1 COGS 5,824.1 5,059.9 764.2 22.7 21.8 19.6 SG&A 1,720.9 1,438.9 282.0 99.7 98.5 16.1 TOTAL EXPENSES 7,545.0 6,498.8 1,046.2 6.7 7.1 8.2 EBIT 507.7 469.2 38.5 1.2 1.2 15.2 93.7 81.4 12.4 INTEREST 1.4 1.7 (6.0) 105.4 112.1 (6.7) TAX 4.1 4.2 11.9 308.6 275.7 32.9 NET PROFIT 3

Sustainable Sales Growth Unit : MB CAGR = 40.9% - 0.8% 14,224 CAGR = 40.9% - 0.8% 12,212 7,628 7,628 7,565 9,814 7,565 6,753 4,564 3,232 2,188 1,343 1q06 1H07 1q07 2H06 1999 2000 2001 2002 2003 2004 2005 2006 4

Declining CCI !! Consumer confident index as at June 2007 is 76.8 120 110 100 90 80 70 60 7 3 3 3 4 4 4 5 5 5 6 6 6 7 7 0 3 4 5 6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - n - - - - - - - - - - - - - - - - - - n r l n r l n r l n r l n r t t t t u u u u u p c p c p c p c p a a a a a J A J O A J O A J O A J O A J J J J J CCI Source : The center for economic and business forecasting, UTCC. 5

Weak Private Consumption Unit : % 2007 2005 2006 Jan Feb Mar Apr May Jun Average 118.6 120.6 119.7 Private Consumption Index 118.5 119.1 119.4 119.0 120.2 122.1 Growth Percent YoY 0.9 1.7 -0.0 0.2 -1.4 -0.4 -0.4 0.7 -0.2 Retail Sales Index 147.1 147.6 144.1 146.0 136.9 156.0 137.5 144.1 (at 2002 price) … Growth Percent YoY 7.1 0.4 1.3 -3.4 -3.6 -1.6 -5.2 N/A -2.6 Source : Bank of Thailand 6

Rising Other Income Mix Growth +Rental Business 57.2% 35.4% +Others 42.8% 25.7% Unit : MB 31.1% 31.1% 7.0% 880 6.4% 6.2% 5.9% 5.6% 3.4% 488 2.2% 2.2% 372 1.7% 411 266 1.1% 1.0% 221 0.7% 220 51 29 16 31 114 1999 2000 2001 2002 2003 2004 2005 2006 1Q'07 2Q'07 1H'06 1H'07 Amount %on Sales 7

SG&A Expenses Unit : MB 3,116 23.4% 22.7% 18.7% 22.1% 21.9% 21.8% 17.4%18.3% 2,278 17.7% 17.3% 16.2% 16.1% 1,721 1,737 1,439 1,235 883 838 795 560 354 216 1999 2000 2001 2002 2003 2004 2005 2006 1Q'07 2Q'07 1H'06 1H'07 Amount %on Sales 8

GP & EBIT 22.9% 22.9% 23.3% 23.1% 23.0% 21.6% 21.2% 21.1% 20.1% 20.2% 19.9% 19.9% GP 7.2% 6.8% 7.1% 6.6% 6.7% 6.3% 5.9% 5.7% EBIT 4.5% 3.6% 3.5% 3.6% 1999 2000 2001 2002 2003 2004 2005 2006 1Q'07 2Q'07 1H'06 1H'07 EBIT on Sales %GP 9

NPAT Unit : MB % 9 . 1 % 1 9 . 1 1 4.3% 4.1% 609 4.5% 4.2% 4.1% 3.9% 3.7% 3.1% 505 2.7% 2.4% 2.4% 381 1.8% 309 276 207 170 139 40 32 109 86 1999 2000 2001 2002 2003 2004 2005 2006 1Q'07 2Q'07 1H'06 1H'07 Amount %on Sales 10

BALANCE SHEET Unit : MB % 30 Jun 07 31 Dec 06 VAR CASH & DEPOSIT 110.1 695.0 (584.9) (84.2) INVENTORY 2,695.5 2,574.8 120.7 4.7 Land Building & Equipment 8,738.9 8,083.4 655.5 8.1 OTHERS 521.0 539.8 (18.8) (3.5) TOTAL ASSETS 12,065.5 11,893.0 172.5 1.5 FINANCIAL DEBT 3,372.9 3,160.1 212.8 6.7 ACCOUNT PAYABLE 3,084.3 3,077.4 6.9 0.2 OTHERS 1,607.8 1,738.0 (130.2) (7.5) TOTAL LIABILITIES 8,065.0 7,975.5 89.5 1.1 PAID-UP CAPITAL 1,924.6 1,919.8 4.8 0.2 SHARE PREMIUM 555.7 555.7 - - RETAIN EARNINGS 1,520.2 1,442.0 78.2 5.4 TOTAL EQUITIES 4,000.5 3,917.5 83.0 2.1 TOTAL LIABILITIES & EQUITIES 12,065.5 11,893.0 172.5 1.5 11

ROA - ROE - ROCE Unit : % ROE 31.3 26.1 24.4 22.1 21.8 20.3 21.8 19.1 ROCE 18.9 16.1 16.1 13.5 13.9 11.5 16.8 11.0 15.6 12.1 7.2 6.6 5.5 5.8 5.2 4.4 3.2 3.0 4.0 ROA 1999 2000 2001 2002 2003 2004 2005 2006 1H-07 Net Profit 12

Earning per Share : EPS Unit : Baht 0.59 0.58 0.51 609 505 0.32 381 0.27 0.24 309 0.18 276 0.09 0.16 0.07 207 0.10 170 0.14 139 40 32 109 86 1999 2000 2001 2002 2003 2004 2005 2006 1Q'07 2Q'07 1H'06 1H'07 Net Profit EPS Note : 1. Equity raising 960 MBht in DEC 2006 at ratio 1:1 of 1 Bht /share 2. EPS in 1H06 after taking dilution impact of 1:1 13

Financial D/E Ratio 4,000 3.62 3,000 2.08 2,000 0.84 0.81 0.83 0.92 0.72 1,000 0.47 0.23 0 1999 2000 2001 2002 2003 2004 2005 2006 1H'07 Financial Debts D/E Ratio 14

2007 Business Outlook 15

Management Responses toward declining consumer confidence !! Operating Efficiency Store & Sales Customer & Service Improvement Warehouse Management Merchandising regrouping System CRM Product Differentiation Only at HomePro VRM More joint promotion Home Care Program with business partners Fast checkout - Single ( Suppliers, Credit card, Sales Hire purchase) Expand business, Increase Customer satisfaction, Sustainable growth 16

Store Expansion Plan 2007 Stores Opening Schedule Petchkasem / BKK 16 th FEB 24 th MAR Chonburi Petchkasem 21 th APR and Ram Indra / BKK Ram-Indra Rayong 4Q’07 Chonburi Rayong HomePro Store the End of 2007 BKK 17 Stores Upcountry 13 Stores Total 30 Stores 17

Continuous expanding sales area 204.0 ‘000 Sqm 178.0 30 141.3 26 113.1 98.9 20 18 66.9 56.4 16 32.5 29.3 11 9 6.0 No. of Store 2001 2002 2003 2004 2005 2006 2007E Sellable Area Rental Area 18

NEW STORE OPENING 1 st Half 2007 CHONBURI : Mar 24,2007 Ekamai – Ram Indra : Apr 21,2007 PETCHKASEM : Feb 16,2007 19

UPCOMING EVENTS HomePro Champion AUG – OCT 07 HomePro Anniversary SEP 07 ANNIVERSARY ANNIVERSARY HomePro EXPO OCT 07 20

Q & A 21

Contact us K.Rakpong, K.Renuka Tel+662-832-1416 Email : IR@homepro.co.th 22

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