HMPRO : Opp day Feb 27, 2012

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HMPRO : Opp day Feb 27, 2012

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HMPRO : Opp day Feb 27, 2012

  1. 1. Home Product Center Public Company Limited Opportunity Day Stock Exchange of Thailand February 27, 2012
  2. 2. DisclaimerThis Presentation (The “Presentation”) has been prepared by Home Product Center Plc.The Presentation is private and confidential and is being made available for information purposes only.Accordingly, this Presentation may not be copied, reproduced or redistributed to any other personsave with the prior written permission of the Company. By accepting this presentation, each recipientaccepts and agrees with the Company that it will comply with, and that it will procure that any otherperson to whom it provides this Presentation complies with, the Terms set out herein and all applicablelaws and regulations.This Presentation is not a prospectus and is not intended to and does not constitute offer or solicitationof any offer in respect of securities. It does not constitute any recommendation or Investment advice,is not intended to form the basis of an investment decision and should not be relied upon for suchpurpose. This Presentation has not been approved by any regulatory authority. Neither the Companyor their respective advisers accepts any liability whatsoever arising in connection with the distributionof this Presentation to recipients hereof.This Presentation is being supplied to you solely for your information and may not be reproduced,redistributed or passed on, directly or indirectly to any other person or published, in whole or in part,for any purpose. No part of this presentation may be reproduced or taken or transmitted. Thedistribution of this presentation in other jurisdictions may be restricted by law, and persons into whosepossession this presentation comes should inform themselves about, and such restrictions. By acceptingthis presentation you agree to be bound by the foregoing restrictions. 1
  3. 3. HomePro is the leading home improvement retailer in Thailand.Our products range cover 60,000 items. We operate 46 storesnationwide, providing complete services as One Stop Shoppingto attain highest customer satisfaction.The HomePro’s stock is traded on the Thailand Stock Exchange(SET - hmpro, BB - hmpro:tb). 2
  4. 4. Agenda Overview Financial Results Business Outlook 3
  5. 5. HomePro Overview 4
  6. 6. Background1996 : Formation of HomePro by Land & House group2001 : Listed in SET2006 : Selected as one of SET 100 list of companies2008 : TRIS Credit Rating A stable outlook and upgrade to positive outlook in 2010July 10 : Selected as one of SET 50 list of companiesNov 11 : TRIS Credit Rating upgrade from A positive outlook to A+ stable outlookFeb 12 : Operating 46 stores through out ThailandWhat HomePro does?Thailand and Southeast Asia’s largest retailer of home improvement productswhich includes home improvement product (hardware, plumbing, painting, tools,building material, lawn & garden), bathroom, kitchen, lighting, home appliancesand household accessories, furniture and decorative products with full servicesupport. 5
  7. 7. Major Shareholders as at October 12, 2011 Top 10 Shareholders %Share 1. Land & Houses Plc. 30.1 2. Quality Houses Plc. 19.9 Land & House 3. Mr. Niti Osathanuklor 4.8 30% 4. AIA Co., Ltd. 3.8Others Quality 5. Thai NVDR Co., Ltd. 3.2 House39% 6. Mr. Manit Udomkunnatum 3.1 20% 7. Norbax Inc. 2.4 8. Mr. Khunawut Tumpomkul 1.4 Niti Osathanuklor 5% 9. Sarasin Co.,Ltd. 1.3 AIA Management 4% 10. State Street Bank and Trust 1.0 &Employee 2% 11. Others 29.0 6
  8. 8. Footprint in Thailand as at December 31, 2011 19 Greater Bangkok Stores 26 Upcountry Stores 2 Chieng Mai Udonthani Sakonnakhon Phitsanulok Khonkaen Suphanburi Roi-et Nakhonpathom Chachoengsao 3 Nakornratchasima Ayutthaya Chonburi Lopburi Pattaya Rayong Hua-Hin Samui NakhonSrithammarat 2 Phuket Suratthani Krabi Had Yai5 New stores opened in 2011 were Chachoengsao, Roiet, Suphanburi, Lopburi and Sakonnakhon. 8 7
  9. 9. 2011 Financial Results 8
  10. 10. Sustainable Sales GrowthUnit : MB 28,363 24,073 20,329 18,540 15,944 9
  11. 11. Rising Other Income Unit : MB 7.7% 7.5% 6.9% 7.2% 6.7% 2,139 1,842 813 768 6% 1,470 1,284 1,326 1,074 1,072 23% Rent & service Others %on SalesIncrease in Other Income as contributed by increasing in Rental, Service and Advertising Fees. 10 8
  12. 12. SG&A Expenses Unit : MB 22.4% 22.6% 22.9% 22.7% 22.5% 6,385 5,456 999 4% 962 5,386 4,494 4,662 4,192 3,579 20% Sale Related Admin Exp %on SalesRise in SG&A in baht term as a result of operational expenses of new stores, in particular, Salaries,Cost of Rent and Services, Transportation, Depreciation but slightly declined as percentage of sales. 11
  13. 13. GP & EBIT Unit : % 25.0 25.7 23.7 24.3 23.0 10.0 10.7 7.2 8.0 8.6 %EBIT %GPGP increased as a result of sales of higher product mix with higher margin particularlyhouse brand products. 12
  14. 14. NPAT & EPSUnit : MB 6.8% 7.1% 0.50 5.6% 0.28 5.2% 0.37 0.34 4.5% 0.26 2,005 1,638 1,131 959 710 NPAT %on Sales NPAT EPS 2011 NPAT growth by 22.4% and NPAT % EPS in 2010 taking full dilution impact of stock to Sales increased over 2010 from 6.8% dividend at the ratio of 6:1 paid in OCT 2010 to 7.1%. (interim) and at ratio of 6.1 paid in APR 2011 (Final). In 2011, EPS taking impact at 7:1 paid in OCT 2011. 13
  15. 15. DIVIDENDUnit : Baht/Share Cash Dividend 2011 Final Dividend: On 21 Feb. 2012 the Board proposed to pay 70.9 70.0 cash dividend at Baht 0.15/share subject to 49.2 47.5 shareholders approval on 4 April 2012. 9.6 2011 Interim Dividend (paid on 27 Oct. 2011) 0.35 0.04 1. Stock : 7 current shares /1 dividend share 0.18 0.21 0.17 2. Cash : Baht 0.0159/share Payout Ratio 2010 Final Dividend (paid on 29 Apr. 2011) Unit : Baht/Share Stock Dividend 1. Stock : 6 current shares /1 dividend share 2. Cash : Baht 0.0193/share 155.6 2010 Interim Dividend (paid on 29 Oct. 2010) 82.8 1. Stock : 6 current shares /1 dividend share 36.2 2. Cash : Baht 0.0193/share 0.47 0.31 0.14 Payout Ratio 14
  16. 16. ROA – ROE – ROCE Unit : % 27.9 28.6 23.5ROE 20.6 26.9 26.3 17.8 22.2 20.7ROCE 17.4 10.8 10.8 7.5 8.3ROA 5.9 Net Profit ROA ROE ROCE 15
  17. 17. Business Outlook 16
  18. 18. CCI in January rose for 2nd consecutive month CCI CPI 120 10 110 8 6 100 4 90 2 80 0 70 -2 60 -4 50 -6 CCI Inflation Rate Consumer Confidence Index (CCI) rose to 74.2 in January from 73.1 in December, an increase for the second consecutive month. Due to flood back to normal, and the government measured to ease the impact of the recent floods as well as the Bank of Thailands 25-basis-point interest rate cut in late January.Source : The center for economic and business forecasting, UTCC. 17
  19. 19. Continuous margin expansion through House BrandThe Company has continuously developed Private Brand with the core objective to createcustomer value. We selected quality products with reasonable price by evaluating customerdemands and behaviors. To date, we have a total of 36 private brands and over 1,000 items. 18
  20. 20. New Stores openedSakhonnakhorn in December 2011 Trang in February 2012 19
  21. 21. 2012 Store Expansion Plan 2011 Stores opening 2012 New stores opening plan Trang 24 Feb SakonNakhon Mega Bangna May Burirum 2Q Roi-et Had Yai 2 2QSuphanburi 4 Stores in Central, North East, East 2H Lopburi Chachoengsao Our stores targeted in 2012 Greater Bangkok 20 Stores Upcountry 33 Stores Total 53 Stores 20
  22. 22. Corporate Social ResponsibilityKids’ Toilet Project :)Chachoengsao : 38 rooms / 4 schoolsRoi-et : 47 rooms / 4 schoolsSuphanburi : 45 rooms / 4 schoolsLopburi : 31 rooms/ 3 schoolsSakonnakhon : 39 rooms / 2 schoolsSince the beginning of the project : 906 rooms / 75 schools HomePro Scholarship Homepro joins with 8 Technical Colleges to offer 120 scholarships in 2012 at High Vocational Certificate Level. Internship and part time work offered throughout the course and Job guarantee after graduation. 21
  23. 23. Q&A Flood rehabilitation guides is available on www.homepro.co.thCONTACT USTel+662-832-1144Email : IR@homepro.co.th

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