opportunity day...

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SABINA

OPPORTUNITY DAY PRESENTATION

27. 02. 2020

Q4 2019

http://www.pptmon.com/



SABINA

PERFORMANCE UPDATE

AGENDA

FINANCIAL HIGHLIGHT

BUSINESS UPDATE

APPENDIX

1



PERFORMANCE

UPDATE Q4 2019

SABINA PUBLIC COMPANY LIMITED

2


ผ

2,308 2,397 2,679

3,103 3,295

775 804

-

1,000

2,000

3,000

4,000

5,000

6,000

2015 2016 2017 2018 2019 Q4 18 Q4 19

• Bottom line growth of 28.1% YoY (NPM at

12.0%) primarily driven by our higher

Gross Profit.

• NPM significantly expanded as a result of :

1) more sales contribution from NSR on

the TV Shopping and Online Platform.

2) an effective cost management.

3) adaptive marketing campaign.

• Gross profit increased 9.2% YoY (GPM at

56.7%) due to:

1. The competitive cost advantage of

higher proportion sourced products from

trusted sub-contractors.

2. Lower sewing process from Sabina

R&D new product development such as

Seamless bra and Strapless bra.

3. An effective cost control on the MOH

through Kaizen and Lean manufacturing.

• Q4 revenue significantly increased of 3.8%

YoY due to the successful launched “Body

Bra” Campaign since Q3.

• More sales contribution from NSR revenue

on 11:11 with Lazada and 12:12 with

Shopee.

• Recovery of OEM sales from UK brands

have eventually brought the higher revenue.

THB mm

Revenue Gross Profit Net Profit

1,198 1,258 1,356 1,595

1,786

417 455

52.1% 52.8% 50.9% 51.6% 54.4% 54.0% 56.7%

2015 2016 2017 2018 2019 Q4 18 Q4 19

166 176 243

362 413

75 97

7.2% 7.3%

9.1%

11.7% 12.5%

9.7%

12.0%

2015 2016 2017 2018 2019 Q4 18 Q4 19

Performance Update Q4 19

6.2

%

15.8

%

12%

17.7

%

14.3

%

48.7

%

3




Performance Update Q4 19 Sabina Revenue

Net Profit

THB mm

THB mm

2018 2019 % YoY

Net Profit 362 413 14.3%

2,397

2,679

3,103

3,295

2016 2017 2018 2019

G15.8%

G4%

G12%

G6.2%

51

63

78

51

79

96

110

75

95 105

117

97

Q1 Q2 Q3 Q4

2017 2018 2019

G 5

.7%

G 8

.6%

G 2

0%

G 2

8.1

%

4




256 212 220

287 287

69 81

2015 2016 2017 2018 2019 Q4 18 Q4 19

0.1

%

64 59 52 60 76

14.6 5.3 -

50

100

150

200

250

300

350

400

2015 2016 2017 2018 2019 Q4 18 Q4 19

1,977 2,112 2,291 2,489 2,581

634 644

-

1,000

2,000

3,000

4,000

5,000

6,000

2015 2016 2017 2018 2019 Q4 18 Q4 19

96

254 336

54 73

2015 2016 2017 2018 2019 Q4 18 Q4 19

Performance Update Q4 19

Sabina Brand Revenue 79% NSR Revenue 10%

THB mm

Sabina Export Revenue 2% OEM Revenue 9%

• More orders have been bought in CLMV since late of Q3 instead of Q4 in order to prepare

for the holidays season sales of Nov-Dec.

• 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

promotion plan.

• Launched exclusive products for each country regarding to the fitting and styles.

• Recovery of OEM sales from UK brands have eventually brought the higher

revenue.

• Our orders comprised of only high margin products such as fashion lingerie, big

cup bra and swimwear.

• Continued to maintain high quality and on-time delivery.

• Best performance in Big Campaign 11.11 and 12.12 in all marketplace by using

customer centric to design campaign promotion

• Continuing to use Data-driven insights to create campaign for each group of customer.

THB mm

THB mm THB mm

• Successfully launched „Body Bra The Series‟ campaign through our integrated marketing

activities.

• Launched new collections i.e. Ano Collection , Modern V , Mad Moiselle.

• Launched co-promotion campaign with prominent brands of Bank and Skin Care.

8.6

%

3.7

%

163.5

%

32.3

%

17.4

%

25.7

%

30.3

%

5




Sabina Brand

THB mm

79%

2,581

Shop Department stores

and others Modern Trade

Mobile Pop

Up Stores

Distributors

2019

Strengths

Key channel for high

value products

Advertising

channels

Channels to gather

customer behavior

data for R&D

Key channel for

mid-end products

Key channel for

low price

products

Key channel

to manage

obsolete

inventory

• Domestic

106 Shops 2-3 Events per quarter 83 Department stores

88 Traditional Trade 308 Modern trade

Traditional Store Retailing Channels

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

Mobile Pop Up Stores

6

G3.7%

32.3

%

25.7

%




Sabina Brand

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.

Special campaigns Q4 2019 : Body Bra The Series

7

Partnership Sabina partnered with Mizumi,

skincare brand, sharing the same

presenter Bai Fern Pimchanok,

the famous actress.




Sabina Brand COLLABORATION : SABINA X ANO COLLECTION

Mad Moiselle is classified as luxury and elegance, comes in

new collection “Holliday”. The collection is also available on

Pomelo website.

MAD MOISELLE INTIMATES

To collaborate with Nae Anothai, Thai street artist, for

product designs to focus on teen-age.

This is the first time for lingerie designed in street arts by

first launching in Samyan Mitrtown Shop.

ANO COLLECTION

To continue the success for Modern V with more

comfortable and better support in seamless technology.

MODERN V

8




SLIDE TITLE

HERE

Special Campaign exclusively for specific channel – e.g. Super

Brand Day at Shopee

Data-driven social marketing to personalize promotion and produ

ct for customers.

No.1 in marketing place platform on both 11.11 and 12.12 Shoppi

ng Festival

Non Stores Retailing Channels (NSR)

TV Shopping Online

Direct Catalogue

Special Campaign exclusively

for specific channel – e.g. Super

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

THB mm

10%

335.5

9

G32.3%




SLIDE TITLE

HERE


Brand Day at Shopee


ct for customers.


ng Festival

1.12

1

1

12.12

Non Stores Retailing Channels (NSR)

10

Shopping Festival

Shopee Super Brand Day

regional campaign include

Thailand, Vietnam and

Philippines.

Shopee Super Brand Day Regional Campaign




Sabina Brand Export

SLIDE TITLE

HERE


Brand Day at Shopee


ct for customers.


ng Festival

New Store/POS Expansion (Q4 2019)

Vietnam 36 +2

Philippines 31 +2

Myanmar 8 -1

Laos 7 +1

Cambodia 5 +1

Bangladesh 10 0

Pakistan 9 0

TOTAL Dif Open 2 new counters in

Northern Vietnam :

MM Than Xuan and

Aeon Ha Dong.

Purely distributed by local partners with no direct

investment on the stores

Launched new collection

Join big campaign

with online channel in

Vietnam & Philippines

during 11.11 / 12.12

Big Campaign

for Black Friday in

CLMV during

November.

THB mm

2%

76

11

G25.7%




OEM

SLIDE TITLE

HERE


Brand Day at Shopee


ct for customers.


ng Festival

New Store/POS expansion (Q3 2019)

Manufacture

only high

margin OEM

products for

selected

brands

THB mm

9%

287

12

G0.1%

Order

Confirmation

G+%

Order confirmation

OEM Customers

Order Confirmation

High margin products The impacts to Thailand from the impending

US-China trade war

9M-2019

G-5.7%




FINANCIAL

HIGHLIGHT SABINA PUBLIC COMPANY LIMITED

13




Financial Highlights

Strong GPM and steadily expanding EBIT margins

Solid top line growth with strong margin improvement

Rapidly trending down SG&A to sales

% THB mm

THB mm THB mm

Consistently growing top line

Significantly expanding net profit and NPM

2,308 2,397 2,679

3,103 3,295

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2015 2016 2017 2018 2019 % YoY Growth

7% 4% 12% 16% 6%

52.1% 52.8% 50.9% 51.6% 54.4%

9.2% 9.2% 11.4% 14.6% 15.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

2015 2016 2017 2018 2019

GPM EBIT Margin

166 176 243

362 413

7.2% 7.3%

9.1%

11.7% 12.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

-

100

200

300

400

500

600

700

800

900

1,000

2015 2016 2017 2018 2019

Net Profit NPM% YoY Growth

12.7% 6.1% 38.4% 48.7% 14.3% 14

997 1,051 1,067 1,156 1,276

43.4% 44.1% 40.1%

37.4% 38.7%

2015 2016 2017 2018 2019

SG&A SG&A/Sales




50 49 45 44 46

7.3 7.5 8.1 8.3 8.0

2015 2016 2017 2018 2019

DSO (Days) A/R Turnover (Times)

Financial Highlights Steadily improving working capital management

Days inventory outstanding and inventory turnover Days sales outstanding and account receivable turnover

Improving cash conversion cycle Account payable turnover days and account payable turnover

Days

42 41 46 41 43

8.7 8.9 8.0

8.9 8.4

0

10

20

30

40

50

60

70

80

90

100

2015 2016 2017 2018 2019

A/P Turnover Days (Days) A/P Turnover (Times)

402 382

296 258

331

2015 2016 2017 2018 2019

394 374

297 255

328

0.9 1.0

1.2 1.4

1.1

2015 2016 2017 2018 2019

DIO (Days) Inventory Turnover (Times)

15




Financial Highlights

D/E

ROA ROE

EPS

Percent Percent

THB/Share

7.3 7.9

10.5

14.5 14.7

2015 2016 2017 2018 2019

10.3 10.3

13.3

19.4

22.4

2015 2016 2017 2018 2019

1,664 1,754 1,895 1,835 1,861

552 484 492 767 1,157

0.33 0.28 0.26

0.42

0.62

2015 2016 2017 2018 2019

Total Equity Total Liabilities D/E

0.48 0.51

0.70

1.04 1.19

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

2015 2016 2017 2018 2019

16

Healthy balance sheet with ample debt room to raise fund whenever it is needed




Stock Information and Dividends

THB

0.48 0.51

0.70

1.04

1.19

0.08 0.10 0.14

0.50 0.57

0.11 0.14

0.68

0.54

0.62

-

0.20

0.40

0.60

0.80

1.00

1.20

1.40

-

0.20

0.40

0.60

0.80

1.00

1.20

1.40

2015 2016 2017 2018 2019

EPS (Bt./share) 1st Half 2nd Half

2015 2016 2017 2018 2019

40% 47% 117% 100% 100%

17

Dividend policy is not less than 40% of normal net profit




BUSINESS UPDATE

2020


18




Sabina Brand

From the previous achievement of WS collection, the collection that

Sabina collaborate with the well-known Thai actress; Woonsen, is

launched for the second time.

19

New Collection : Woonsen Collection




Sabina Brand

Maggi Mae Full Cup Full Fashion

For teenagers who have a larger breast volume

20

New Collection : Maggie Mae Collection




Doomm Seires

Small Cup

2006-2015

Perfect Bra

Big Cup

2016

Wireless Bra

Perfect Bra

Doomm Series

2017

SABINA BRAND MARKETING AND R&D

Sabina Brand

21




Wireless Bra

All Cup

Doomm Series

Small Cup

2018

Seamless Fit

Body Bra The Series

All Cup

2019

Invisible Wire

All Cup

2020

NEW CAMPAIGN

SABINA INVISIBLE WIRE

TO REGISTER SABINA WIRELESS BRA AS “INVISIBLE WIRE” TO BE SUPERIOR TO THE CATEGORY PERCEPTION

Sabina Brand

22




NEW CAMPAIGN

TO REGISTER SABINA

WIRELESS BRA AS

“INVISIBLE WIRE” TO BE SUPERIOR TO THE

CATEGORY PERCEPTION

SABINA INVISIBLE WIRE

Sabina Brand Teaser Phase : Online Film

23




394 374 297

255 328

0.9 1.0

1.2 1.4

1.1

2015 2016 2017 2018 2019 DIO (Days) Inventory Turnover (Times)

Sabina Core Strategy For 2020

2,400 1,400 1,550 1,845 1,758

1,900

1,400 1,450 1,617 1,618

800

1,100 1,200

1,148 1,153

2011 2013 2017 2018 2019

Output 2019 2020 %G

Ys 4.3 4.0 -7% Cn 2.4 1.8 -25% Bn 1.7 1.4 -18% Tp 1.8 1.6 -11% S5 1.5 1.2 -20%

Capacity 11.7 10.0 -15%

2017 2018

Sourcing

GPM 58.9% Produce

GPM 50.4%

GPM 51.6%

Output (million pcs.)

Manpower Production : Sourcing

96% : 4%

Working capital and inventory management

- Total 2019 GPM is 2.8% higher than total 2018 GPM.

- Sourcing gains 5.3% higher margin than production.

- The ratio of outsourcing will be increased by 3-5% each year.

4,610 4,200

3,900

5,100

63% : 37% 82% : 18%

4,529

Sourcing

GPM 58.6%

Produce

GPM 53.3%

GPM 54.4%

- The number of sewing line staff decreases with no replacement to

decrease the production capacity allowing more outsourcing product.

2019

GPM 50.9%

- 81

24




Sabina Revenue Segmentation

2023

79% 9% 10% 2%

60%

SABINA

BRAND

6%

SABINA

EXPORT

26%

NSR

8%

OEM

SABINA

BRAND

SABINA

EXPORT NSR OEM

2019

76 287 336 2,581 THB mm THB mm THB mm THB mm

25

Avg.

Growth / Year 3-5% 25-30% 30-35% 0% 7-10%

Total Revenue




ESG

- Encourage the customer to donate the used bra for

Ban Kueng Veethi Foundation.

Where have all the used bras gone, we care…

26




CSR : ESG ESG Principles

27

Zero Waste policy (GRI.301)

5S policy (GRI.403)

EVAP system (GRI.302)

Non Plastic Use (GRI.403)

Disabled employees working program

(GRI0.405 GRI.406)

Mother Jintana Foundation (GRI.413)

Sewing Cup, Sewing Heart (GRI.416)

Factory Model : Lean , 5S , Kaizen (GRI.404)

AunJai Fund (Micro Finance) (GRI.405)

Code of conduct (GRI.419)

CAC (Collective Action Coalition Against Corruption) (GRI.205)

WRAP (Worldwide Responsible Accredited Production) (GRI.410)

SEDEX (Supplier Ethical Data Exchange) (GRI.414)




ESG Sewing Cup Sewing Heart

2

9

- Encourage the customer

to make an artificial

cup through Sabina kit

and donate to post

breast surgery woman.

28




Award

29




30




APPENDIX


31




From OEM manufacturer to brand developer

0%

BRAND EXPORT

2%

BRAND EXPORT

10%

NSR

9%

OEM

10%

BRAND

90%

OEM

79%

BRAND

2005: No pricing ability with nominated supplier 2019: Ability to command retail price with variety supplier

Sale Report Brand and OEM (2006 - 2019)

60% 55%

50%

35% 30%

25%

10% 9% 11% 11% 9% 8% 9% 9%

40% 45%

50%

65% 70% 75%

90% 91% 89% 89% 97% 92% 91% 91%

1,346 1,163

959

551 556

441

185 200 242 250 216 220 287 287

848 903

994

1,099 1,310

1,459

1,824 1,978 1,911 2,044

2,108

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

OEM Sabina

% Gross Profit

27% 26% 37% 37% 35% 44% 50% 51% 53% 52% 53% 51% 52% 54%

% Net Profit Margin

8% 6% 9% 4% 3% 3% 6% 5% 7% 7% 7% 9% 12% 12%

2011: Thailand Great flood / Euro-zone crisis

2012: Minimum Wages hike to THB 300 2007-2008:Subprime 2010:UK Financial Crisis

2,439 2,803

32




Sabina at a Glance

Medium (<THB700) Medium-High(THB700-1,000) High(>THB1,000)

Children

(6-15 years)

Teens

(15-25 years)

Young women

(25-45 years)

Women

( > 45 years)

Wide product offering with ability to capture broad group of customers

33



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