Rich Sport Public Company Limited Q2 2019 Result Opportunity Day - PowerPoint PPT Presentation

Rich Sport Public Company Limited Q2 2019 Result Opportunity Day 29 Aug 2019 Prepared by Investor Relations Department 1 Rich Sport Public Company Limited

Agenda Section 1 Company Overview 3 Section 2 Business Update 9 Section 3 Financial Performance 15 Section 4 Appendix 20 Prepared by Investor Relations Department 2 Rich Sport Public Company Limited

Company Overview Key Milestone 2016: 2018: ▪ Rich Sport received exclusive rights ▪ Opened “Pony” 36 Shop -in- to manufacture and distribute shop ▪ Expanded “Converse” and “Pony” products in Thailand, Cambodia and Laos from Pony “Pony” brand into Cambodia International Limited (HK) market ▪ Expanded into online channels 2001 2003 2016 2017 2018 2019 2001: 2017: 2019: 2003: ▪ Converted from a private company to ▪ Rich Sport received exclusive ▪ Rich Sport Company ▪ Rich Sport received exclusive public company rights to distribute “Barrel” Limited was rights to manufacture and ▪ Increased registered capital from THB product in Thailand and registered by the distribute “Converse” products 570 mn to THB 770 mn by issuing new Cambodia from Barrel Company Department of in Thailand from Converse Inc. 200 mn ordinary shares (Par Value = Limited (267790: KOSDAQ) Business (USA) ▪ Opened “Barrel” 8 Shop -in- THB 1 per share) for subscription of ▪ Rich Sport started selling Development, public investors shops (Aug 2019) Ministry of ▪ Started selling “Pony” via Shop -in-Shop Converse products in Shop-in- Commerce with shop in department stores, in department stores in Sep 2017 registered capital of mono brand stores, and to ▪ Received exclusive rights to THB 5 mn wholesale accounts manufacture and distribute “Converse” products in Cambodia in Oct 2017 Prepared by Investor Relations Department Section 1: Company Overview 3 Rich Sport Public Company Limited

Company Overview Converse – By product type 1 Sales Breakdown by Product Type 3 Apparel Footwear Footwear 69.7% 1H19 Non-Footwear 30.3% 4 2 Non-Footwear Sales Breakdown Bag Accessories Bag 70.3% 1H19 Apparel 15% Cap Others 12.3% 2.4% Prepared by Investor Relations Department Section 1: Company Overview 4 Rich Sport Public Company Limited

Company Overview PONY – By product type Sales Breakdown by Product Type 1 2 Footwear Non-Footwear Footwear 64.5% 1H19 Non-Footwear 35.5% Non-Footwear Sales Breakdown Bag 63.8% 1H19 Apparel 28.6% Cap 7.6% Prepared by Investor Relations Department Section 1: Company Overview 5 Rich Sport Public Company Limited

Company Overview BARREL – By product type 2 1 3 Accessories Top Bottom 2Q19 Sales Breakdown Accessories 7.7% Bottom 45.6% Top 46.7% Prepared by Investor Relations Department Section 1: Company Overview 6 Rich Sport Public Company Limited

Company Overview By distribution channel Shop-in-Shop Mono Brand Store Online Branch by location ▪ CONVERSE : 116 Retail ▪ Lazada ▪ PONY : 34 ▪ CONVERSE : 40 ▪ Shopee ▪ BARREL : 5 Upcountry 62% Total number of stores: 195 Bangkok 38% ▪ Sell products to wholesale accounts including sports specialty stores and multi-brand stores Wholesale Sales Breakdown 2018 Sales Breakdown 1H 2019 Shop-in-Shop Shop-in-Shop OEM 53.00% 52.50% 1.73% 651.2 Mono Brand Store 1273.5 MB 25.00% 20.90% MB Mono Brand Store Wholesale 22.00% 25.00% Wholesale Prepared by Investor Relations Department Section 1: Company Overview 7 Rich Sport Public Company Limited

Agenda Section 1 Company Overview 4 Section 2 Business Update 9 Section 3 Financial Performance 15 Section 4 Appendix 20 Prepared by Investor Relations Department 8 Rich Sport Public Company Limited

CONVERSE The New Jack Purcell launch at WERK BTS Ari Prepared by Investor Relations Department Section 3: Business Update 9 Rich Sport Public Company Limited

PONY Successful launch of PONY X POKEMON Average Same Store Sales growth +63% YoY Number of stores 34 SIS Prepared by Investor Relations Department Section 3: Business Update 10 Rich Sport Public Company Limited

BARREL Brand launch with store expansion Influencers 2019 Store Opening (8 Stores as of Aug 19) 23-April 2020 Robinson 1-August Early Sep 6 Stores Jungceylon 6-June Siam Discovery 29-May Central Pattaya Expansion in 2020 Phuket Emporium Pop up Paragon 1-June 9-May 10-August Q4 2019 1-July ZEN Central World Icon Siam 3 Shop-in-Shop TBC Robinson Rama 9 Pop up Prepared by Investor Relations Department Section 3: Business Update 11 Rich Sport Public Company Limited

BARREL Online Marketing Prepared by Investor Relations Department Section 3: Business Update 12 Rich Sport Public Company Limited

CAMBODIA Improving same store sales Stores Average Same +59% YoY Store Sales growth 6 stores Number of Phnom Penh: 5 stores Siem Reap: 1 Prepared by Investor Relations Department Section 3: Business Update 13 Rich Sport Public Company Limited

Agenda Section 1 Company Overview 4 Section 2 Business Update 9 Section 3 Financial Performance 15 Section 4 Appendix 20 Prepared by Investor Relations Department 14 Rich Sport Public Company Limited

Financial Performance Revenue by product type Sales Sales from Footwear Product 1,235.3 1,552.7 1,343.5 1,014.1 1,273.5 865.1 651.2 616.6 460.2 429.1 316.3 287.8 225.1 193.5 2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019 2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019 Sales Proportion by Product Type Sales from Non-footwear Product 386.4 Footwear Non-footwear OEM 329.4 317.4 1.7% 20.4% 24.5% 28.8% 30.4% 29.3% 32.8% 30.3% 191.1 187.5 94.3 79.5% 91.2 75.4% 70.7% 71.2% 69.6% 67.9% 67.2% 2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019 2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019 Prepared by Investor Relations Department Section 2: Financial Performance 15 Rich Sport Public Company Limited

Financial Performance Revenue by distribution channel Sales from Mono Brand Store Sales from Shop-in-Shop* 6.81 6.17 8.17 7.93 7.00 4.52 4.38 4.31 8.00 4.13 6.49 3.85 6.42 6.36 6.07 1500.0 5.00 6.02 600.0 6.00 3.00 1000.0 789.9 400.0 728.3 1.00 667.5 260.3 266.1 4.00 256.0 (1.00) 163.4 339.1 330.4 500.0 124.5 200.0 2.00 164.4 79.3 154.0 61.7 (3.00) 0.0 (5.00) 0.0 - 2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019 2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019 Sales from Shop-in-Shop Avg. Same Store Sales Sales from Mono Brand store Avg. Same Store Sales 2014 2015 2016 2017 2018 2Q2019 2014 2015 2016 2017 2018 2Q2019 Number Number of Store of Store 30 35 39 41 41 40 111 113 116 118 155 150 Sales from Wholesale Sales Proportion by Distribution Channel Mono Brand Store Shop-in-Shop Wholesale 506.8 22% 22% 26% 25% 26% 25% 33% 355.0 317.9 53% 53% 54% 53% 54% 54% 51% 161.7 144.5 72.1 69.7 25% 25% 21% 19% 21% 20% 16% 2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019 2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019 Prepared by Investor Relations Department *include online channel Section 2: Financial Performance 16 Rich Sport Public Company Limited

Financial Performance Operating margins Gross Profit Selling Expenses 59.0% 58.1% 35.7% 57.1% 57.5% 33.4% 56.5% 33.1% 1500.0 55.5% 1100.0 32.6% 32.4% 54.4% 29.5% 27.0% 900.0 50.0% 30.0% 916.2 1000.0 700.0 780.8 726.6 30.0% 20.0% 419.0 412.5 500.0 396.4 368.0 358.2 500.0 215.6 205.7 10.0% 300.0 175.5 156.6 10.0% 102.7 103.2 100.0 0.0 -10.0% -100.0 0.0% 2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019 2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019 Gross Profit % Gross Profit Margin Selling Expense % Selling Expense to Sales Net Profit Administrative Expenses 9.3% 9.0% 9.0% 8.7% 19.2% 250.0 8.4% 7.9% 8.1% 550.0 10.0% 16.8% 20.0% 15.3% 15.3% 14.1% 200.0 12.4% 450.0 15.0% 5.0% 9.3% Extra item 137.9 350.0 298.8 150.0 122.7 10.0% 121.0 19.6mn THB 226.1 0.0% 250.0 5.0% 100.0 157.6 54.3 53.1 99.8 150.0 -5.0% 88.0 0.0% 50.0 25.8 26.5 48.2 26.8 50.0 -5.0% 0.0 -10.0% -50.0 -10.0% 2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019 2016 2017 2018 1H18 1H19 Q2 2018 Q2 2019 Administrative Expenses % Administrative Expenses to Sales Net Profit % Net Profit Margin Prepared by Investor Relations Department Section 2: Financial Performance 17 Rich Sport Public Company Limited

Financial Performance Balance Sheet Asset 2,027.2 1,980.0 1,974.0 • XD 30 April 2018 87.9 163.7 124.6 170.6 Dividend 0.15 per share 145.9 149.4 179.0 178.7 403.1 426.6 • XD 23 Aug 2018 150.1 207.5 Dividend 0.10 per share 873.3 727.2 646.4 77.0 165.5 1,411.0 129.3 • XD 29 April 2019 1,150.2 87.7 214.4 198.4 1,032.8 128.8 83.3 Dividend 0.10 per share 199.1 134.9 206.6 129.3 233.4 174.8 84.4 2014 2015 2016 2017 2018 Q2 2019 Cash / Equivalent Cash Account Receiveable Inventories PPE Others Equity Liabilities 1,870.2 1864.7 1,839.3 225.0 212.4 198.3 157.0 100.6 51.5 140.7 86.0 109.2 59.2 661.0 71.8 502.2 448.1 56.0 146.8 124.4 126.4 97.8 68.8 53.2 2014 2015 2016 2017 2018 2Q 2019 2014 2015 2016 2017 2018 2Q 2019 Account payable Others liabilities Prepared by Investor Relations Department Section 2: Financial Performance 18 Rich Sport Public Company Limited