OPPORTUNITY DAY 16 May 2019 SABINA PUBLIC COMPANY LIMITED - PowerPoint PPT Presentation

OPPORTUNITY DAY 16 May 2019 SABINA PUBLIC COMPANY LIMITED www.sabina.co.th

AGENDA 01 03 04 02 Appendix Performance Business Financial Update Highlight Update Q1 2019 SABINA PUBLIC COMPANY LIMITED

Performance Update Q1 2019 Sabina Public Company Limited

Performance Update Q1 19 Q1 19 Highlights Revenue THB mm • Delivered impressive revenue growth of 12.3 % YoY as a result of strong sales performance in core channels , particularly in NSR 3,103 2,679 channel. 2,397 2,308 2,165 • Successfully launched ‘Seamless Fit’ campaign through our integrate 774 690 11.8 % 15.8% marketing activities. • Expanded more stores in CLMV. 2014 2015 2016 2017 2018 Q1 2018 Q1 2019 Gross Profit 54.7% 53.0% 52.8% 53.0% 52.1% 50.9% 51.6% • Launched high margin products during Valentine’s Day in February. 1,595 1,356 1,258 1,198 1,141 • Gross profit increased to 54.7% YoY due to the lower cost sourced products from trusted sub-contractors. 421 364 Q1 2018 Q1 2019 2014 2015 2016 2017 2018 Gross Profit GPM Net Profit 12.3% 11.7% 11.5% • Impressive bottom line growth of 12.3% YoY primarily driven by our 9.1% higher Gross Profit. 7.2% 7.3% 6.8% 362 • NPM significantly expanded as a result of 1) more sales contribution 243 176 166 147 from NSR, Sabina Export segment 2) an effective cost management 95 79 38.4 % 48.7% and 3) adaptive marketing campaign. 2014 2015 2016 2017 2018 Q1 2018 Q1 2019 Net Profit NPM 3

Sabina at a Glance (Cont’d) Q1 2019 Performance Net Profit Sabina Revenue THB mm THB mm 2017 2018 2019 110 G15.8% 96 95 3,103 79 G 12% 78 75 2,679 63 51 51 G 4% 2,397 Q1 Q2 Q3 Q4 2016 2017 2018 Q1 2018 Q1 2019 % YoY Net Profit 79 95 + 20% 4

Performance Update Q1 19 (Cont’d) Financial overview by segment Sabina Brand Revenue NSR Revenue THB mm THB mm 2,489 2,291 2,112 1,977 1,873 254 96 541 585 92 57 8.5% 8.6% - - - 163.6% 2014 2015 2016 2017 2018 Q1 2018 Q1 2019 2014 2015 2016 2017 2018 Q1 2018 Q1 2019 • Cooperated with key partners to create big campaign, especially for Sabina brand in • Successfully launched ‘Seamless Fit’ campaign through our integrate marketing activities. order to get better awareness and visibility to end customers. • During Q1 Introduced 4 new branches i.e. Robinson Payao, Central Patong, etc. • Collaborated with well-known brands for better communication and promotion to end • Launched new collections i.e. Madmoisellei, Sabinie, Swimwear, Maggie Mae, etc. customers. • Launched co-promotion campaign with prominent brands of Hospital, Bank , Telco company. • Increased more online channel i.e. Fitcraze. Sabina Export Revenue OEM Revenue THB mm THB mm 287 256 242 220 212 52 61 64 74 73 59 38 -12.7% 17.4% 21 14 3.8% 30.3% Q1 2018 Q1 2019 Q1 2018 Q1 2019 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 • Expanded more offline and wholesale channels in Myanmar and Vietnam bringing the total • Due to UK economy slow down (Brexit), some shipments are postponed to Q2, point of sale outside Thailand up to 108 stores. 2019. • Expanded more online channels in Vietnam and Myanmar. • Our orders comprised of only high margin products such as fashion lingerie, big cup bra and swimwear. • Continued to share our knowledge and expertise to local distributors, in the area of inventory management, POS system, PC training, P&L analysis of sale channels and monthly • Continued to maintain high quality and on-time delivery. promotion plan • Launched the exclusive products for each country to fit with the local lifestyle and fitting Not include other revenue and service revenue 5

Sabina Brand Q1 2019 Overview by segmentation SABINA BRAND NSR SABINA EXPORT OEM THB mm 76% 12% 3% 9% 585 92 21 73 6 Not include other revenue and service revenue

Sabina Brand Overview by segmentation 2006-2015 Doomm Series Small Cup 2016 SABINA BRAND Perfect Bra Big Cup 76% 2017 Wireless Bra Perfect Bra Doomm Series All Cup 585 THB mm 2018 G +8% Wireless Bra Doomm Series All Cup Small Cup 2019 Seamless Fit All Cup 7

Sabina Brand (Cont’d) Special campaigns Special campaigns Q1 2019 Seamless Fit : TVC / Viral Clip Behind The scene Making of : Seamless Fit Online Promotion Campaign 8

Sabina Brand (Cont’d) Special campaigns Special events Q1 2019 Events at leading department store Baby&Kids Best Buy 2019 LINE Creators Market Connect Day Partner Samitivej Hospital SCB KBANK Krungsri AIS DTAC CSR Campaign Donate to Doomm Series : Baan Nontapum Celebrated 10M pcs. foundation 9

Sabina Brand (Cont’d) New Collections Influencers 10

Non Store Retailing NSR 12% TV Shopping 92 THB mm G +62% ONLINE Catalogue 11

Non-store Retailing Brand of the day Live Streaming Video Shopee Lazada 12

Sabina Brand Export New Store/POS expansion (Q4 2018) OPEN CLOSE TOTAL Vietnam +1 -1 41  3% New Store : Vincom Tran Duy Hung Philippines 29 +2  Total 108 outlets as of Q1 2019 , net addition Myanmar 10  of 5 outlets from 2018. Laos 6  21 Cambodia 3  Bangladesh 10 THB mm  G +43% Pakistan 9  Shopee : Tet Sabina cooperate with Marc Wholesale market Launched the collection to match Joined the campaign with Outerwear Brand to Expanded more wholesale market stores in increase the customer base in online channel Vietnam with the Chinese New Year 13

OEM High margin products 9% 73 THB mm G -2% Visiting of UK Buyer for big cup swimwear development 14

Financial Highlight Sabina Public Company Limited

Financial Highlights (Cont’d) Solid top line growth with strong margin improvement Consistently growing top line Rapidly trending down SG&A to sales THB mm THB mm 44.3% 44.1% 43.5% 43.4% 39.5% 40.1% 37.4% 3,103 1,067 1,051 1,156 2,679 997 953 948 2,397 2,308 2,165 304 774 2014 2015 2016 2017 2018 Q1 2019 2013 2014 2015 2016 2017 2018 Q1 2019 SG&A SG&A/Sales % YoY Growth -1% 7% 4% 12% 16% Strong GPM and steadily expanding EBIT margins Significantly expanding net profit and NPM % THB mm 12.3% 54.7% 11.7% 53.0% 52.8% 52.1% 51.6% 51.3% 50.9% 9.1% 7.2% 7.3% 6.8% 15.6% 14.6% 362 11.4% 9.2% 9.2% 8.7% 7.7% 243 176 166 147 95 2014 2015 2016 2017 2018 Q1 2019 Q1 2019 2013 2014 2015 2016 2017 2018 Net Profit NPM EBIT Margin GPM % YoY Growth 25.4% 12.7% 6.1% 38.4% 48.7% 16

Financial Highlights (Cont’d) Steadily improving working capital management Days inventory outstanding and inventory turnover Days sales outstanding and account receivable turnover 1.4 1.4 8.3 8.1 1.2 7.5 7.5 7.3 1.0 0.9 6.5 0.8 434 394 374 297 270 255 56 50 49 49 45 44 Q1 2019 Q1 2019 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 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 8.8 8.9 8.7 8.0 7.6 449 402 382 296 271 258 48 46 41 42 41 41 Q1 2019 2014 2015 2016 2017 2018 Q1 2019 2014 2015 2016 2017 2018 A/P Turnover Days (Days) A/P Turnover (Times) 17

Key Financial Ratio Healthy balance sheet with ample debt room to raise fund whenever it is needed ROA ROE Percent Percent 19.4 19.3 14.6 14.5 13.3 10.5 10.3 10.3 9.7 7.9 7.3 6.4 2014 2015 2016 2017 2018 Q1 2019 2014 2015 2016 2017 2018 Q1 2019 D/E EPS THB/Share 0.47 0.42 0.40 0.33 0.28 0.26 1.04 777 767 492 552 484 741 0.70 0.51 0.48 0.42 0.27 1,566 1,664 1,754 1,895 1,835 1,937 Q1 2019 Q1 2019 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Total Equity Total Liabilities D/E 18

Stock Information and Dividends Dividend policy is not less than 40% of normal net profit THB 2014 2015 2016 2017 2018 40% 40% 47% 117% 100% 1.20 1.20 1.04 1.00 1.00 0.80 0.80 0.70 0.54 0.60 0.60 0.51 0.48 0.42 0.68 0.40 0.40 0.50 0.20 0.20 0.14 0.11 0.10 0.14 0.10 0.08 0.07 - - 2014 2015 2016 2017 2018 EPS (THB/Share) 1st Half 2nd Half 19

Business Update Sabina Public Company Limited

FACTORY Output ( million pcs. ) Working capital and inventory management 1.4 1.4 Output 2018 2019 %G 1.2 1.0 0.9 0.8 Ys 0% 4.7 4.7 434 394 374 Cn 2.7 2.7 0% 297 270 255 Bn 34% 1.4 1.9 Tp 2.0 2.0 0% S5 1.4 1.6 11% Q1 2019 2014 2015 2016 2017 2018 DIO (Days) Inventory Turnover (Times) Capacity 12.2 12.8 5% Inventory turn over at 1.4 time despite the increase in unit production of 6.1% and sourcing of 33% Manpower Production : Sourcing 5,100 96% : 4% 82% : 18% 67% : 33% 4,635 4,664 800 4,200 3,900 PC 1,150 1,162 1,200 1,100 1,900 2017 2018 Q1 2019 Non 1,622 1,677 sewing+PC 1,450 1,400 Sourcing Sewing Sourcing Produce 2,400 GPM 62.2% 1,851 1,833 GPM 59% GPM 50% 1,550 1,400 Produce GPM 51.6% GPM 54.7% GPM 52.9% 2011 2013 2017 2018 Q1 2019 28 employees have been increased from the expansion of the moulding line. Sourcing gains 9.3% higher margin than production. - - 21

Sabina Brand Launching new collection WOONSEN COLLECTION 22

Sabina Brand Launching new collection Influencer 23