OPPOR OPPORTUNIT TUNITY Y DAY Y PRE PRESE SENT NTATION TION - PowerPoint PPT Presentation

OPPOR OPPORTUNIT TUNITY Y DAY Y PRE PRESE SENT NTATION TION Q4 2019 27. 02. 2020

AGEN GENDA SABINA BUSINESS PERFORMANCE UPDATE UPDATE FINANCIAL APPENDIX HIGHLIGHT 1

PERFORMANC PERFORMANCE E UPD UPDATE TE Q4 2019 4 2019 SABINA PUBLIC COMPANY LIMITED 2

ผ Performance Update Q4 19 6,000 THB mm 56.7% 11.7% 12.5% 54.4% 54.0% 12.0% 5,000 52.8% 52.1% 51.6% 50.9% 9.7% 9.1% 4,000 3,103 3,295 413 1,198 1,258 1,356 1,595 1,786 2,308 2,397 2,679 7.2% 7.3% 362 3,000 15.8% 6.2% 243 17.7% 12% 14.3% 2,000 176 48.7% 166 775 804 455 417 97 75 1,000 - 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Q4 18 Q4 19 Q4 18 Q4 19 Q4 18 Q4 19 Revenue Gross Profit Net Profit • Q4 revenue significantly increased of 3.8% • Gross profit increased 9.2% YoY (GPM at • Bottom line growth of 28.1% YoY ( NPM at YoY due to the successful launched “Body 12.0% ) primarily driven by our higher 56.7%) due to: Bra ” Campaign since Q3. Gross Profit. 1. The competitive cost advantage of • More sales contribution from NSR revenue • NPM significantly expanded as a result of : higher proportion sourced products from on 11:11 with Lazada and 12:12 with trusted sub-contractors. 1) more sales contribution from NSR on Shopee. the TV Shopping and Online Platform. 2. Lower sewing process from Sabina 2) an effective cost management. • Recovery of OEM sales from UK brands R&D new product development such as 3) adaptive marketing campaign. have eventually brought the higher revenue . Seamless bra and Strapless bra. 3. An effective cost control on the MOH through Kaizen and Lean manufacturing. 3

G6.2% Performance Update Q4 19 Sabina Revenue G15.8% 3,295 THB mm 3,103 G12% 2,679 G4% 2,397 2016 2017 2018 2019 2017 2018 2019 Net Profit 117 110 THB mm 105 97 95 96 79 78 75 G 5.7% 63 G 28.1% G 8.6% G 20% 51 51 Q1 Q2 Q3 Q4 2018 2019 % YoY 4 362 413 14.3% Net Profit

Performance Update Q4 19 Sabina Brand Revenue 79% NSR Revenue 10% 6,000 THB mm THB mm 5,000 4,000 336 2,581 2,489 2,291 3,000 2,112 254 1,977 32.3% 2,000 163.5% 8.6% 3.7% 96 73 634 644 54 1,000 - 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Q4 18 Q4 19 Q4 18 Q4 19 • Successfully launched „Body Bra The Series‟ campaign through our integrated marketing • Best performance in Big Campaign 11.11 and 12.12 in all marketplace by using 400 activities. customer centric to design campaign promotion • Launched new collections i.e. Ano Collection , Modern V , Mad Moiselle. 350 • Continuing to use Data-driven insights to create campaign for each group of customer. • Launched co-promotion campaign with prominent brands of Bank and Skin Care. 300 OEM Revenue 9% Sabina Export Revenue 2% 250 THB mm THB mm 200 150 287 287 256 220 76 212 100 64 59 60 52 30.3% 25.7% 0.1% 81 17.4% 69 50 14.6 5.3 - 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Q4 18 Q4 19 Q4 18 Q4 19 • More orders have been bought in CLMV since late of Q3 instead of Q4 in order to prepare • Recovery of OEM sales from UK brands have eventually brought the higher for the holidays season sales of Nov-Dec. revenue . • Continued to share our knowledge and expertise to local distributors in the area of inventory • Our orders comprised of only high margin products such as fashion lingerie, big management, POS system, PC training, P&L analysis of sale channels and monthly cup bra and swimwear. promotion plan. • Continued to maintain high quality and on-time delivery. • Launched exclusive products for each country regarding to the fitting and styles. 5

Sabina Brand • Domestic Mobile Pop Up Stores Traditional Store Retailing Channels Department stores Mobile Pop Shop Modern Trade and others Up Stores 79% Distributors 2019 106 Sh 106 Shops 83 De Departme ment stores 2-3 3 Ev Events per quarter 308 Modern trade 88 Tr 88 Traditional Tr Trade  Key channel for high  Key channel for  Key channel for  Key channel 2,581 value products mid-end products low price to manage products obsolete  Advertising inventory THB mm Strengths channels  Channels to gather G3.7% customer behavior data for R&D Store 2018 2019 Dif Department Store 80 83 +3 Discount Store 307 308 +1 Shop 100 106 +6 Traditional Trade 93 88 -5 Total 580 585 +5 6

Sabina Brand Special campaigns Q4 2019 : Body Bra The Series Partnership Sabina partnered with Mizumi, skincare brand, sharing the same presenter Bai Fern Pimchanok, the famous actress. Sabina Body Bra The Series rewarded the lucky winner from Body Bra dancing contest to Maldives with Baifern Pimchanok and the beauty bloggers. On this occasion, Sabina has cooperated with a skincare brand Mizumi in order to support the events and to promote products together. 7

Sabina Brand COLLABORATION : SABINA X ANO COLLECTION MAD MOISELLE INTIMATES ANO COLLECTION MODERN V To collaborate with Nae Anothai, Thai street artist, for Mad Moiselle is classified as luxury and elegance, comes in To continue the success for Modern V with more new collection “Holliday”. The collection is also available on product designs to focus on teen-age. comfortable and better support in seamless technology. Pomelo website. This is the first time for lingerie designed in street arts by first launching in Samyan Mitrtown Shop. 8

Non Stores Retailing Channels ( NSR ) Online TV Shopping –   10%  Direct Catalogue 335.5  Special Campaign exclusively THB mm for specific channel – e.g. Super G32.3% Brand Day at Shopee  Data-driven social marketing to personalize promotion and product for customers.  No.1 in marketing place platform on both 11.11 and 12.12 Shopping Festival 9

Non Stores Retailing Channels ( NSR ) 1.12 1.12 12.12 12 .12 Shopee Super Brand Day Regional Campaign Shopping Festival –    Shopee Super Brand Day regional campaign include Thailand, Vietnam and Philippines. 10 1 1

Sabina Brand Export New Store/POS Expansion (Q4 2019) Open 2 new counters in TOTAL Dif Northern Vietnam : Vietnam 36 +2 MM Than Xuan and  Aeon Ha Dong. Philippines 31 +2  –  Myanmar 8 -1   Laos 7 +1   Cambodia 5 +1 2%  Bangladesh 10 0  Pakistan 9 0  Purely distributed by local partners with no direct investment on the stores Launched new collection 76 Join big campaign Big Campaign THB mm with online channel in for Black Friday in Vietnam & Philippines G25.7% CLMV during during 11.11 / 12.12 November. 11

OEM The impacts to Thailand from the impending High margin products US-China trade war Manufacture only high margin OEM products for –  selected brands  9%  OEM Customers 287 Order Confirmation Order confirmation THB mm G0.1% Order 9M-2019 Confirmation G-5.7% G+% 12

FIN FINANCIAL ANCIAL HIGHLIG HIGHLIGHT HT SABINA PUBLIC COMPANY LIMITED 13

Financial Highlights Solid top line growth with strong margin improvement Consistently growing top line Rapidly trending down SG&A to sales THB mm THB mm 5,000 4,500 44.1% 43.4% 40.1% 38.7% 4,000 37.4% 3,295 3,103 3,500 1,276 2,679 3,000 1,156 2,397 1,067 1,051 2,308 997 2,500 2,000 1,500 1,000 500 - 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 % YoY Growth SG&A SG&A/Sales 7% 4% 12% 16% 6% Strong GPM and steadily expanding EBIT margins Significantly expanding net profit and NPM % THB mm 12.5% 1,000 14.0% 11.7% 54.4% 900 52.8% 52.1% 60.0% 51.6% 50.9% 12.0% 800 9.1% 50.0% 10.0% 700 7.3% 7.2% 600 40.0% 8.0% 500 30.0% 6.0% 400 15.9% 14.6% 300 20.0% 4.0% 11.4% 9.2% 9.2% 413 200 362 243 2.0% 10.0% 176 100 166 - 0.0% 0.0% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Net Profit NPM % YoY Growth GPM EBIT Margin 14 12.7% 6.1% 38.4% 48.7% 14.3%

Financial Highlights Steadily improving working capital management Days inventory outstanding and inventory turnover Days sales outstanding and account receivable turnover 1.4 8.3 8.1 8.0 1.2 7.5 7.3 1.1 1.0 0.9 50 49 394 46 374 45 44 328 297 255 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 DSO (Days) A/R Turnover (Times) DIO (Days) Inventory Turnover (Times) Account payable turnover days and account payable turnover Improving cash conversion cycle Days 8.9 8.9 8.7 8.4 100 8.0 90 402 382 80 331 70 296 60 46 258 43 42 41 41 50 40 30 20 10 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 15 A/P Turnover Days (Days) A/P Turnover (Times)

Financial Highlights Healthy balance sheet with ample debt room to raise fund whenever it is needed ROA ROE Percent Percent 14.7 14.5 22.4 19.4 10.5 7.9 13.3 7.3 10.3 10.3 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 D/E EPS 2.00 THB/Share 1.80 0.62 1.60 0.42 1.40 1.19 0.33 0.28 1.04 0.26 1.20 1,157 1.00 767 492 0.70 484 552 0.80 0.51 0.48 0.60 1,895 1,861 1,835 0.40 1,754 1,664 0.20 0.00 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 16 Total Equity Total Liabilities D/E