DISCLAIMER The information contained in our presentation is intended - - PowerPoint PPT Presentation
Very Good score in 2017 MC Group Public Company Limited from National CG Committee Q2 FY2018-2019 Results Summary A leading multi-brand apparel & lifestyle products retailer 18 February 2019 Financial performance in the years prior to
“Very Good” score in 2017 from National CG Committee
Financial performance in the years prior to the change of fiscal year from January-December to July-June, have been reclassified to the July-June period for management discussion and analysis purposes in this presentation.
1
2
3
Opened mcmc
gas stations Opened the first Free Standing Shop
Launched
Topwear
2008
1st Mc Shop
2012
Expanded to Myanmar & Laos
2005
Launched “Mc ” brand
2013
Expanded Brand Portfolio
Women's’ Jeans & Street wear
Extended Brand Portfolio
Acquired 51% in
1975
Expanded to Lifestyle Business
Kidswear Premium Jeanswear
2015
Listed on the SET Expanded Brand Portfolio
2016
Expanded Brand Portfolio Active wear “U-P” Skin care “M&C”
2017
Expanded to Middle East
Revamped e-commerce platform Started CRM &
membership
program
2018 Started as manufacturing and selling through traditional trade Onto managing brands and distribution channels Emerged as a leader in denim market in Thailand Moving forward to become a leading apparel and lifestyle products retailer
4
FY2019
Integrated warehouse management solution for E- commerce
Expanded Brand Portfolio
5
MC Group PLC (“MC”) 99.9%
P.K. Garment (Import- Export) Co., Ltd. (“PKG”)
99.9%
Mc Jeanious Co., Ltd.
99.9%
Look Balance Co., Ltd.
99.9%
Winnerman Co., Ltd. (“WNM”)
99.9%
MC Inter Limited (“MCI”)
99.9%
Mc Jeans
Manufacturing
Co., Ltd. (“MJM”)
99.9%
WoWme Limited (“WOWME”)
45.0%
Mcmillion (Thailand) Co., Ltd.
55.0%
Aromatique Active Co., Ltd.
51.0%
Time Deco Corporation Co., Ltd.
51.0%
Top T 2015 Co., Ltd
Retail platform Operation
innovative top wear technology under the brand “McT”
retailer and distributor of famous int’l watch brands
skincare products
force and warehouse workforce for MC
management
Production
3
2 4
5
1
7
Officer
6
6
7
Mc Store
Integrated warehouse solution for e-commerce
8
Financial performance in the years prior to the change of fiscal year from January-December to July-June, have been reclassified to the July-June period for management discussion and analysis purposes in this presentation.
9
Total Jeans Market Size in Thailand THB 21,000 MB in 2018
Premium and standard jeans brands
Others (Super Premium, Economy and non-brand)
Source : Euromonitor
CAGR Growth up to 2022
10
11
12
Source : Euromonitor
CAGR Growth up to 2022
13
14
Monochrome & Pastel Lover…
15
Note :Other lifestyle products (accessories, skin care, watches)
16
Activities for smart watch introduction
Brand concept Stores Terminal 21, Pattaya
17
Located mainly in commercial centers or in the plaza sections
department stores as well as hypermarket and PTT gas station New sales channel that helps expand the reach to customers as well as build brand recognition Points of sales or sales counters in department stores (both chain and local non-chain) as well as hypermarket Currently, expanded through distributors with presence in Myanmar, Laos and Middle-east.
18
(Songkla, Pattani) (Lampang)
Geographical Analysis of Outlets Geographical Analysis of Sales
Brand Free- Standing Modern Trade Mobile unit Inter- national Total 279 511 6 14 810 23 23 19 75 94 Total 321 586 6 14 927
19
79 94 104 109 93 94 2 8 20 20 18 23 554 658 737 733 746 783 810
FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19(6M)
Time Deco mcmc Outlet Mc
Variety of products and brands, suitable with all ages and genders
NORTH TH NORTHE THEAST AST EAST CENTRAL AL WEST SOUTH TH
(end of Feb 19)
20
End of season 50% - 70% discount of MC’s products and others lifestyle products at affordable price
Located close to communities with parking space
building in local communities
21
shipments in FY18-19 (Jul-Dec)
*started on late-June 18
product mix from MC Group and selected lifestyle product partners
22
Drive higher traffic to offline stores by more featured in-store services
Dominant position in Thailand for more than 40 years under Mc Jeans
23
YE2019: 1,000,000
by 1Q)
24
Varieties of lifestyle products with ‘New arrival’ to draw traffic
25
Different sales campaigns from other retailers with fun and customer engagement year-round
26
Financial performance in the years prior to the change of fiscal year from January-December to July-June, have been reclassified to the July-June period for management discussion and analysis purposes in this presentation.
(THB millions)
27
NOTE: MC Group Public Company Limited and its subsidiaries (“MC” or “the Company”) changed in accounting period starting from 1st January to 31st December to the period from 1st July to 30th June, starting from the period ended 30th June, 2018 onward. During the period, the Federation of Accounting Professions announced a new standard on international financial reporting 15: Revenue from contracts with customers (IFRS 15) which is effective for annual reporting periods beginning on or after 1 January 2019, with earlier application permitted. The Company and its subsidiaries agreed to adopt the new IFRS 15 Revenue prior to the effective date, resulting in the adjustment of financial statement in earlier period for comparison and impact toward result in adoption of such new standard financial reporting.
(THB millions)
2Q FY17-18 (Oct-Dec) 2Q FY18-19 (Oct-Dec)
Others = E-Commerce, International, Mobile, Outside promotion, Factory sales 28
(7.9%)YoY
NOTE: Due to changing fiscal year end from December to June and starting from period ended 30th June 2018 onward. Adjusted annual sales revenue according to TFRS for indication. NOTE: Adjusted quarterly sale revenue according to TFRS for indication
(8.2%)YoY
’000 THB
THB
Remark: (1) Figures are calculated based on modern trade sales revenue, before GP. Excluded sales from international markets and
29
NOTE: Adjusted sale revenue for comparison for new accounting period
Remark: Hypermarkets are not included in the calculation in SSSG.
30
Note: Adjusted sale revenue for comparison for new accounting period
(THB millions)
31
(4.3%) YoY
NOTE: Adjusted gross profit according to TFRS for indication
(1.3%) YoY
32
YoY NOTE: Adjusted SG&A expense to sales according to TFRS for indication
YoY
NOTE: Adjusted EBITDA according to TFRS for indication (THB millions)
33
(3.6%)YoY
(7.6%)YoY
NOTE: Adjusted NPAT according to TFRS for indication (THB millions)
34 (4.2%)YoY
0.1%YoY
35
(THB millions)
FY17-18 Q2 FY18-19 Cash & Short term investmen 1,011 1,212 Accounts Receivable 414 483 Inventory 2,179 1,929 Other Assets 1,266 1,221 Total Assets 4,870 4,844 Accounts Payable 210 256 Interest-bearing Liabilities 16 Other Liabilities 446 465 Total Liabilities 671 721 Shareholders' Equity 4,199 4,124
(THB millions) (THB millions) (Months) (Months)
36
*Annualized *Annualized
NOTE: Adjusted sale revenue for comparison for new accounting period
Dividend policy is not less than 50% of net profit
37
: 800 m Par value : THB 0.50 Market capitalization : THB 8,080 m
: THB 11.0 m Free float : 38.3% Foreign ownership/ Limit : 19.0% /49.0% Major shareholder :
Line ID: @mc_jeans www.mcshop.com
38