SABINA PUBLIC COMPANY LIMITED www.sabina.co.th AGENDA 01 03 04 - PowerPoint PPT Presentation

SABINA PUBLIC COMPANY LIMITED www.sabina.co.th

AGENDA 01 03 04 02 Appendix Performance Business Financial Update Highlight Update Q2 2019 SABINA PUBLIC COMPANY LIMITED

Performance Update Q2 19 Q2 19 Highlights Revenue THB mm • Delivered revenue growth of 10.6 % YoY as a result of strong sales performance in core channels , particularly in NSR channel. 3,103 2,679 2,397 2,308 2,165 • Successfully launched ‘Seamless Fit’ campaign through our integrate 1,643 1,475 869 785 marketing activities. • Expanded new channel of Sales in CLMV. 2014 2015 2016 2017 2018 1H18 1H19 Q2 18 Q2 19 Gross Profit 53.6% 53.0% 52.8% 52.6% 52.1% 51.7% 50.9% 51.6% 50.5% • Gross profit increased 14.5% YoY (GPM at 52.6%) due to : 1,595 1. the lower cost sourced products from trusted sub-contractors. 1,356 1,258 1,198 1,141 874 759 2. less sewing process from Sabina R&D new product development. 453 396 3. an increase of the production of our in house moulding cup. 1H18 1H19 Q2 18 Q2 19 2014 2015 2016 2017 2018 Gross Profit GPM Net Profit 12.3% 12.2% 12.1% 11.9% 11.7% • Bottom line growth of 8.6% YoY (NPM at 12.1%) primarily driven by 9.1% our higher Gross Profit. 7.2% 7.3% 6.8% 362 • NPM significantly expanded as a result of 1) more sales contribution 243 200 176 176 166 147 from NSR, Sabina Export segment 2) an effective cost management 105 97 and 3) adaptive marketing campaign. 2014 2015 2016 2017 2018 1H18 1H19 Q2 18 Q2 19 Net Profit NPM 3

Sabina at a Glance (Cont’d) Q2 2019 Performance Net Profit Sabina Revenue THB mm THB mm 2017 2018 2019 3,400 150 G 15.8% 3,200 3,103 130 110 3,000 105 110 95 96 G 12% 2,800 90 2,679 79 78 75 G 4% 2,600 63 70 51 51 2,397 50 2,400 30 2,200 10 2,000 2016 2017 2018 -10 Q1 Q2 Q3 Q4 1H 2018 1H 2019 % YoY Net Profit 176 200 14% 4

Performance Update Q2 19 (Cont’d) Financial overview by segment Sabina Brand Revenue 79% NSR Revenue 11% THB mm THB mm 2,489 2,291 2,112 1,977 1,873 1,286 254 1,186 180 701 645 96 122 88 65 2014 2015 2016 2017 2018 1H18 1H19 Q2 18 Q2 19 2014 2015 2016 2017 2018 1H18 1H19 Q2 18 Q2 19 • Align with Corporate Marketing Plan to all online channels to create more awareness • Successfully launched ‘Seamless Fit’ campaign through our integrate marketing activities. and lock visibility for Sabina • Launched new collections i.e. Woonsen Collection • Create special campaign with well-known partner brands in order to gain more visibility • Launched co-promotion campaign with prominent brands of Bank , Telco company. and draw new customers. Sabina Export Revenue 2% OEM Revenue 8% THB mm THB mm -0.9% 287 256 242 220 212 52 61 133 130 64 59 59 58 38 36 29 14 16 1H18 1H19 Q2 18 Q2 19 1H18 1H19 Q2 18 Q2 19 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 • Due to UK economy slow down (Brexit), some shipments are postponed to Q3, • Expanded more online and TV channels in Vietnam and Philipines. 2019. • 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 more exclusive products for each country to fit with the local lifestyle and fitting Not include other revenue and service revenue 5

Sabina Brand 1H 2019 Overview by segmentation SABINA BRAND NSR SABINA EXPORT OEM THB mm 79% 11% 2% 8% 1,286 180 36 130 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 79% 2017 Wireless Bra Perfect Bra Doomm Series All Cup 1,286 THB mm 2018 Wireless Bra Doomm Series All Cup Small Cup 2019 Seamless Fit All Cup 7 * Expanded to capture all cup size since 2016

Sabina Brand (Cont’d) Special campaigns Special Campaigns Q2 2019 8

Sabina Brand (Cont’d) New Collections The "Woonsen Collection – Furious Obsession" combines speed and sports with a sense of femininity to create a preppy, yet sexy look. The collection features 14 sets of bras, panties, bikinis, activewear, and bodysuits that are adorned by elements such as the WS symbol, inspired by speed and racing which was designed exclusively for this collection. Influencers 9

Sabina Brand (Cont’d) Special campaigns Special events Q2 2019 Events at leading department store Partner Krungsri DTAC Fineline BabyLove 10

Non Store Retailing NSR 11% TV Shopping 180 THB mm ONLINE Catalogue 11

Non-store Retailing Reward Brand of the day Live Streaming Video Shopee Lazada Regional Campaign with online marketplace across SEA (1) 12

Sabina Brand Export New Store/POS expansion (Q2 2019) TOTAL Vietnam 41  2% Renovate counter in Vietnam : Philippines 29  Lotte Department Store (HN) Myanmar 10  Total 108 outlets as of Q2 2019 Laos 6  36 Cambodia 3  Bangladesh 10 THB mm  Pakistan 9  Launched new collection New online channel Wholesale market Launched new collection in CLMV Expand new online channel in Vietnam Expanded more wholesale market stores in During water festival ( Songkran ) which Vietnam is a high season 13

OEM The impacts to Thailand from the impending US-China trade war 8% 130 THB mm High margin products 14

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% 43.4% 40.1% 37.4% 38.7% 37.1% 3,103 1,156 1,067 1,051 2,679 997 953 2,397 2,308 2,165 632 1643.1 1475.1 544 2014 2015 2016 2017 2018 1H 2018 1H 2019 2014 2015 2016 2017 2018 1H 2018 1H 2019 % YoY Growth SG&A SG&A/Sales -1.1% 6.6% 3.9% 11.8% 15.8 16.2 11.4 Strong GPM and steadily expanding EBIT margins Significantly expanding net profit and NPM % THB mm 12.2% 11.9% 53.6% 53.0% 11.7% 52.8% 52.1% 51.6% 51.7% 50.9% 9.1% 7.3% 7.2% 6.8% 15.0% 15.4% 14.6% 362 11.4% 9.2% 9.2% 8.7% 243 200 176 176 166 147 2014 2015 2016 2017 2018 1H 2018 1H 2019 2014 2015 2016 2017 2018 1H 2018 1H 2019 Net Profit NPM EBIT Margin GPM % YoY Growth 25.0% 12.7% 6.1% 38.4% 48.7% 54.0% 13.7% 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 8.3 8.1 1.3 1.2 7.5 7.5 7.3 1.0 0.9 6.5 0.8 434 394 374 297 284 255 56 50 49 49 45 44 1H 2019 1H 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 7.4 449 402 382 296 283 258 50 46 41 42 41 41 1H 2019 2014 2015 2016 2017 2018 1H 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 20.9 19.4 14.9 14.5 13.3 10.5 10.3 10.3 9.7 7.9 7.3 6.4 2014 2015 2016 2017 2018 1H 2019 2014 2015 2016 2017 2018 1H 2019 D/E EPS THB/Share 0.52 0.47 0.42 0.33 0.28 0.26 1.04 965 767 492 552 484 741 0.70 0.58 0.51 0.48 0.42 1,566 1,664 1,754 1,895 1,835 1,857 1H 2019 1H 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 2015 2015 2016 2017 2018 2019 40% 40% 47% 117% 100% 99% 1.2 1.2 1.04 1 1 0.8 0.8 0.54 0.70 0.576 0.6 0.6 0.51 0.48 0.68 0.42 0.4 0.4 0.570 0.50 0.2 0.2 0.14 0.11 0.1 0.14 0.10 0.08 0.07 0 0 2014 2015 2016 2017 2018 1H 2019 EPS (Bt./share) 1st Half 2nd Half 19

Business Update Sabina Public Company Limited

FACTORY Output ( million pcs. ) Working capital and inventory management Output 2018 2019 %G 1H2019 1.4 1.3 1.2 1.0 0.9 Ys -2% 2.3 4.7 4.6 0.8 Cn 2.7 2.6 -4% 1.4 434 394 374 297 284 Bn 29% 0.9 1.4 1.8 255 Tp 2.0 1.8 -10% 0.9 S5 1.4 1.6 14% 0.8 2014 2015 2016 2017 2018 1H 2019 Capacity 12.2 12.4 2% 6.3 DIO (Days) Inventory Turnover (Times) - Number of inventory day increased due to the postpone shipment of OEM sector Manpower Production : Sourcing 96% : 4% 82% : 18% 65% : 35% 5,100 4,610 4,609 PC 800 4,200 3,900 Non sewing+PC 1,163 1,148 1,200 Sewing 2017 2018 1H 2019 1,900 1,100 1,617 1,641 1,450 1,400 Sourcing Sourcing Produce GPM 57% 2,400 GPM 59% GPM 50% 1,845 1,805 1,550 1,400 Produce GPM 52% GPM 53% GPM 54% 2011 2013 2017 2018 1H 2019 The number of sewing line staff is lower while the efficiency increases by 2%. Sourcing gains 4% higher margin than production. - - 21

Sabina Brand Launching new collection Influencers Cartoon Characters : Mamegoma & Sumikkogurashi Youtuber 22