OPPORTUNITY DAY - Sabina Public Company Limited
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OPPORTUNITY DAY
PRESENTATION
Q2 / 2020
27. 02. 2020
COVID-19 VERSION
Sabina Fareast Co., Ltd. Telephone : IR Contact :
Address : 02-422-9400 Telephone :
12 Arun Amarin Road, Arun Amarin 02-009-9999
Sub-District , Bangkok Noi District, Fax : E-mail :
Bangkok 10700 02-434-5911 ir@sabina.co.th
Performance Update Q2 2020
Revenue Q2 20 Highlights
THB mm
• Due to two months of the Covid Lock down, all the off line revenue has decreased on both
areas of Domestic and CLMV.
3,103 3,295
2,397 2,679 • However, Covid has offered the high sales growth of NSR (Online+TV Shopping) and
2,308
1,643 1,340 OEM revenue.
869 658
• OEM has gained the Fabric mask order to replace the Lingerie order of the UK and EU
brands.
2015 2016 2017 2018 2019 1H19 1H20 Q2 19 Q2 20
• Off line revenue has quickly recovered up to 90% after locking down since late May.
Gross Profit
52.1% 52.8% 50.9% 51.6% 54.4% 53.5% 52.6% • During the Covid pandemic, Sabina has donated Fabric masks to many communities,
45.9% 38.8% hospitals, schools and some government sectors as a major CSR campaign of the year.
1,786
1,258 1,356 1,595 • On the business part of making Corporate Fabric mask, pricing is not high since this is the
1,198
873 hygiene product during the difficult time.
612 453 256
• Without producing bra&brief for two months, the efficiency of production has also come
2015 2016 2017 2018 2019 1H19 1H20 Q2 19 Q2 20 down.
Gross Profit GPM • After the lock down, Sabina has also launched a big CSR campaign offering more low
Net Profit price products and heavy sale promotion to cope with the poor economic situation.
12.5% 12.2% 12.1%
11.7%
• Although expenses have decreased relatively to revenue during the lock down, NPM is still
9.0%
9.1%
7.7% decreased due to the loss of Gross Profit.
413
7.2% 7.3% 362 • 2020 Budgeting has been revised to bring the best performance under the tough time.
243
176 200 • Sabina still made 50 million baht profit on the lock down period.
166
121 105
50
2015 2016 2017 2018 2019 1H19 1H20 Q2 19 Q2 20
1
Performance Update Q2 2020
Sabina Revenue Net Profit
THB mm THB mm
2019 2020
6,000
5,000
117
105
4,000 95 97
3,103 3,295
3,000 2,679 70
50
G 8.6%
G 20%
2,000
G -26%
G -51.9%
1,000
-
2017 2018 2019 Q1 Q2 Q3 Q4
1H 2019 1H 2020 % YoY
Net Profit 200 121 -39.6%
2
Performance Update Q2 20 (Cont’d)
Financial overview by segment
Sabina Brand Revenue 66% (79% in 2019) NSR Revenue 21% (10% in 2019)
6,000
THB mm THB mm
5,000
4,000
2,291 2,489 2,581
3,000
1,977 2,112 336 284
1,286 254
2,000
885 180 184
1,000
701 402 96 88
-
2015 2016 2017 2018 2019 1H19 1H20 Q2 19 Q2 20 2015 2016 2017 2018 2019 1H19 1H20 Q2 19 Q2 20
• During the two months lock down, all product counselors have developed to make sale on their face book
live. • The COVID-19 pandemic is still having a significant impact growth in Q2.
• Newness for summer has launched successfully with Thai fruit collection offering the fashion fabric mask • Good sign of changing shopping behavior from traditional platform to online platform
coordinated with bra&brief. (increase in number of new customer in online platform).
• More outdoor sale activities like mobile pop up store has aimed to gain more sales after the lock down.
Sabina Export Revenue 3% (2% in 2019) OEM Revenue 10% (9% in 2019)
300
250
THB mm THB mm
200
150
256 287 287
100
64 76 212 220
59 52 60 130
36.0 127
50
35.1 58 65
15.5 8.1
-
2015 2016 2017 2018 2019 1H19 1H20 Q2 19 Q2 20 2015 2016 2017 2018 2019 1H19 1H20 Q2 19 Q2 20
• All UK&EU orders have been postponed to late Sept shipment because of the Covid pandemic.
• Covid19 has a negative impact to sell in CLMV and the rest of Asian countries while the South Asia and
Middle East countries are completely lockdown. • Corporate fabric masks have taken place the bra&brief order causing the revenue even higher up
to 12.1% in Q2.
Not include other revenue and service revenue 3
Sabina at a Glance
Highly penetrated and robust distribution network
Facebook Live : Whole Sale
Domestic
Traditional Store Retailing Channels
66% Shop
Department
stores and others
Modern Trade
Mobile pop up
store
Distributors
(1H2018)
885 104 Shops 84 Department stores 308 Modern trade
THB mm 88 other channels
Key channel for high Key channel for Key channel for Key channel to
value products mid-end low price manage
G-31.2% Advertising channels
products products obsolete
Strengths inventory
Channels to gather
customer behavior
data for R&D
Store 2018 2019 1H 2020 Tourism
Department Store 80 83 84
Discount Store 307 308 308 3%
Shop 100 106 104
Sabina offline revenue has not much relied on the tourism,
Traditional Trade 93 88 88 that is why more than 90% of the offline revenue has been
Total 580 585 584 picking up after the lock down.
4
Non Store Retailing (NSR)
Online VENDING MACHINE
284
21% THB mm
G +58.1% Trend of Online
DTC*
60% MarketPlace
ONLINE, 55%
1H 2020
600
50%
500
Live
400
40%
TV, 33% 300
200
30%
100
0
20% CATALOGUE
Jan Feb Mar Apr May June
, 10%
NEW *DTC(Direct to customer) :
10% CHANNEL,
Line@,Facebook,
2%
Sabina Website
0%
ONLINE TV CATALOGUE NEW CHANNEL *Market Place : Lazada,
Shopee.JD. Etc..
New High for Online Channel during COVID pandemic in May.
Continuing growth on Online Channel both DTC and Marketplace.
Shopee Consumer Choice Award to ensure that we are on our
target to achieve Customer Seamless Experience.
5
Non Store Retailing (NSR)
Shopee Consumer Choice Award 2020 Lazada Most Valuable Brand 5.5
Super Brand Day in Shopee Create Special Campaign with related brand in Lazada
6
Sabina Brand Export
3%
35.1
THB mm Join Mid Year Campaign with
Lazada to increase the sales during
G-2.6%
•As of August 12, Vietnam’s Ministry the covid pandemic lockdown.
of Health confirmed a total of
New Store/POS Expansion (Q2 2020) 866 cases of COVID-19. However,
399 of the affected patients have
TOTAL
recovered and been discharged from
Vietnam 36 hospitals. Vietnam has also recorded
Philippines 31
17 deaths due to the pandemic.
Myanmar 8 •Vietnam reported a 1.81 percent
GDP growth in the first half of 2020 –
Laos 7
its lowest since 2011, due to the Big Campaign with Shopee
Cambodia 5 pandemic as per the General
Statistics Office (GSO).
Bangladesh 10
Pakistan 9
Purely distributed by local partners with no direct
investment on the stores
7
*Data published by European Centre for Disease Prevention and Control (ECDC)
OEM
OEM Customers [Mask] OEM Customers [Lingerie]
10%
127
THB mm Manufacture only high margin OEM products
for selected brands
G-2.4%
Order confirmation
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1H2020 Forecast 2020
Fabric Mask : Bra&Brief Fabric Mask : Bra&Brief
• Donated Kids Mask to welcoming the
44% : 56% 35% : 65%
school reopening through The Thai
Red Cross Society.
8
Sabina Brand
NEW COLLECTION
PLUS SIZE
Introduced more plus
size and high-quality
products for ladies
During covid pandamic
through social media.
THAI FRUIT
Collection
Exclusive print made
in collaboration with
Julibaker and Summer.
YOU ARE YOU
Collection
Daddy and the muscle academy
The collection was Collection
designed to continue
raising awareness From Daddy and the muscle
for LGBT community. academy brand, a teenager
90’s fashion label, to a unique
limited edition of Sabina
Underwear and Mask. 9Sabina Brand
NEW COLLECTION
Sabina launches premium face masks for adults and children.
As schools consider reopening plans, Sabina launch kids' mask lines. Using the Magic Silver Innovation from SEK Mark ensuring
The face masks come in a range of colours and prints, including to prevent the growth of bacteria on fibers adjustable ear
Sabinie Character prints and animal print. loops and nose clip create a custom fit around your face.
10Sabina Brand
Thailand trust Mark (T Mark) ESG100
By the Department of International Trade Promotion, Sabina received the ESG100 award (Environmental,
Ministry of Commerce from July 2020 to July 2023. Social and Governance) for induction into the top 100
performing publicly listed company Environmental,
Social and Governance: ESG from Thaipat Institute
which has assessed 621 the Thai publicly listed
companies.
11Financial Performance
Q2 2020
12Financial Highlights
Solid top line growth with strong margin improvement
Consistently growing top line Rapidly trending down SG&A to sales
5,000
THB mm 4,500
THB mm
43.4% 44.1%
4,000
40.1% 38.9% 38.7%
3,295 37.4%
3,500
3,103 34.6%
3,000 2,679 1,276
2,308 2,397 1,156
2,500
997 1,051 1,067
2,000 1,643
1,500
1,340 632
463
1,000
500
-
2015 2016 2017 2018 2019 1H 2019 1H 2020 2015 2016 2017 2018 2019 1H 2019 1H 2020
% YoY Growth SG&A SG&A/Sales
6.6% 3.9% 11.8% 15.8% 6.2% 11.4% -18.5%
Strong GPM and steadily expanding EBIT margins Significantly expanding net profit and NPM
% THB mm
60.0%
52.8% 54.4% 53.6%
52.1% 50.9% 51.6%
12.5% 12.2%
50.0%
45.9% 11.7%
40.0%
9.1% 9.0%
7.2% 7.3%
30.0%
20.0% 14.6% 15.9% 15.4%
11.4% 11.7%
9.2% 9.2% 413
10.0%
362
176 243 200
166 121
0.0%
2015 2016 2017 2018 2019 1H 2019 1H 2020 2015 2016 2017 2018 2019 1H 2019 1H 2020
EBIT Margin GPM % YoY Growth Net Profit NPM
12.7% 6.1% 38.4% 48.7% 14.3% 13.7% -39.6%
13Financial Highlights (Cont’d)
Working capital management
Days sales outstanding and account receivable turnover Days inventory outstanding and inventory turnover
100
8.1 8.3 8.0 1.4
90 7.3 7.5 7.5 1.2
1.1
80
1.0 1.0
70
0.9
60
50 49 48
50 45 44 46 394 374 368
328
40 297
255
30
20
10
0
2015 2016 2017 2018 2019 1H 2020
2015 2016 2017 2018 2019 1H 2020
DSO (Days) A/R Turnover (Times) DIO (Days) Inventory Turnover (Times)
Account payable turnover days and account payable turnover Improving cash conversion cycle
Days
100
8.7 8.9 8.9
8.4 8.3
90 8.0 402
80
382 372
331
70
296
60
258
42 46 43 44
50
41 41
40
30
20
10
0
2015 2016 2017 2018 2019 1H 2020 2015 2016 2017 2018 2019 1H 2020
A/P Turnover Days (Days) A/P Turnover (Times)
14Key Financial Ratio
Healthy balance sheet with ample debt room to raise fund whenever it is needed
ROA ROE
Percent Percent
20.0 22.4
18.0
19.4
18.5
16.0
14.5 14.7
14.0
11.6 13.3
12.0
10.5
10.0 10.3 10.3
7.3 7.9
8.0
6.0
4.0
2.0
0.0
2015 2016 2017 2018 2019 1H 2020 2015 2016 2017 2018 2019 1H 2020
D/E EPS
Times
0.67
0.62
0.42
0.33 1.19
0.28 0.26
1.04
1,157 1,181
492 767
552 484 0.70
0.48 0.51
0.35
1,664 1,754 1,895 1,835 1,861 1,751
2015 2016 2017 2018 2019 1H 2020 2015 2016 2017 2018 2019 1H 2020
Total Equity Total Liabilities D/E
15Dividend Payment
With ability to consistently distribute cash to investors
Dividend
1.19
1.04
0.62
0.70 0.54
0.51
0.68
0.35
0.57
0.50
0.14 0.35
0.10 0.14
2016 2017 2018 2019 2020
EPS (Bt./share) 1st Half 2nd Half
2014 2015 2016 2017 2018 2019 2020
Dividend THB /
0.17 0.19 0.24 0.82 1.04 1.19 0.35
Share
Payout Ratio 40% 40% 47% 117% 100% 100% 100%
16Business Update
17SABINA BRAND
Sabina launches premium face masks on Mother’s day.
18SABINA BRAND
Highly penetrated and robust distribution network Shelf display stand
Hanger
Box acrylic
19Stock Information and Dividends
Dividend policy is not less than 40% of normal net profit
Output (million pcs.) Working capital and inventory management
Output 2019 2020 %G 1.2 1.4
1.1
0.9 1.0 1.0
Ys 4.3 3.6 -15%
Cn 2.4 1.7 -31%
394 374
297 255
328 368
Bn 1.7 1.3 -24%
Tp 1.8 1.4 -21%
2015 2016 2017 2018 2019 1H 2020
S5 1.5 1.2 -22% DIO (Days) Inventory Turnover (Times)
Capacity 11.7 9.2 -21% • Inventory days still maintain at the same level of ending 1Q, 2020 despite the two
months lock down without sales on the off line channels.
• Capacity has planned to reduce to 21% for the year 2020. 100% of • Factories keep running during the off line lock down making Fabric mask on April
capacity made Fabric mask on Apr-May and 20% on Jun-Aug. and May.
Manpower Production : Sourcing
5,100 82% : 18% 63% : 37% 55% : 45%
4,610 4,529
800 4,200 4,160
3,900
1,148 1,153
1,200 1,083
1,900 1,100 2019
2018 1H 2020
1,617 1,618
1,400 1,450 1,511
2,400
1,400 1,550 1,845 1,758 1,566
Produce Sourcing Produce Sourcing Sourcing
GPM 50.4% GPM 58.9% GPM 58.6% Produce GPM 55.3%
2011 2013 2017 2018 2019 1H 2020 GPM 53.3%
GPM 42.0%
Sewing Non ( sewing+PC ) PC (Product Counselor)
GPM 51.6% GPM 54.4% GPM 45.9%
- The total number of employees have decreased 369 positions with almost
200 sewing staffs have decreased since beginning of Jan, 2020. - GPM decreased for the 1H because more capacity have given away to make fabric
- Moulding operation has done a lean process by applying two machines per mask for donation, obviously see 42.0% self production dropped from 53.3%.
- GPM of out sourcing has dropped to 55.30% due to the import of more low price
one moulding staff. 20
product to cope with the poor economic situation.CSR : ESG
ESG Principles
Disabled employees working program
(GRI0.405 GRI.406)
Zero Waste policy (GRI.301)
Mother Jintana Foundation (GRI.413)
5S policy (GRI.403)
Sewing Cup, Sewing Heart (GRI.416)
EVAP system (GRI.302)
Factory Model : Lean , 5S , Kaizen (GRI.404)
Non Plastic Use (GRI.403)
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)
21Sabina Fareast Co., Ltd. Telephone : IR Contact :
Address : 02-422-9400 Telephone :
12 Arun Amarin Road, Arun Amarin 02-009-9999
Sub-District , Bangkok Noi District, Fax : E-mail :
Bangkok 10700 02-434-5911 ir@sabina.co.th
22APPENDIX
23Sabina at a Glance
Introduction to Sabina
The leading Thai women underwear manufacturer #1 Thai lingerie brand in term of revenue
under the iconic Sabina brand, awarded Thailand’s Top
Corporate Brands in fashion sector for 5 consecutive years
Strong distribution nationwide
with products sold across 585 POS, 106 shops in leading
department stores and discount stores together with sales
channels in TV and online channels
Also has support from local distributors
In key regional markets including the Middle East, Asia
(Pakistan), and AEC (CLMV and Philippines)
Manufacturing capacity of ~12 mm units
with ability to manufacture complex products that required high
skilled labor
Manufacturing footprint (1)
Yasothorn
5 mm/year
Burerum
1.5 mm/year
Chainat
2.4 mm/year
Thapra
1.7 mm/year
Sai 5
1.4 mm/year
24Sabina at a Glance
From OEM manufacturer to brand developer
Sale Report Brand and OEM (2006 - 2019)
2011: Thailand Great flood / Euro-zone crisis
2007-2008:Subprime 2010:UK Financial Crisis 2012: Minimum Wages hike to THB 300
97% 92% 91%
90% 91% 89% 89% 91%
2,108
1,824 1,978 2,439 2,803
75% 1,911 2,044
65% 70%
60% 1,459
55% 1,310
1,099
1,346 50% 50%
1,163 45%
40% 959 994
903 35%
848 30%
551 25%
556
441 11% 11% 9%
10% 9% 9% 8% 9%
185 200 242 250 216 220 287 287
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%
2005: No pricing ability with nominated supplier 2019: Ability to command retail price with variety supplier
10% 90% 0% 79% 10% 9% 2%
BRAND OEM BRAND EXPORT BRAND NSR OEM BRAND EXPORT
25Sabina at a Glance
Wide product offering with ability to capture broad group of customers
Medium (THB1,000)
Children
(6-15 years)
Teens
(15-25 years)
Young women
(25-45 years)
Women
( > 45 years)
The products vary in prices to fit with different
target groups. The lowest price products are
distributed through modern trade, such as BigC
and Tesco Lotus. The middle price products,
which cost about 700-800 Baht, are distributed
throughout the country, including Doomm Series,
Wireless bras, and Modern V. For the top price
products under the brand Madmoiselle, Maggie
mae and Woonsen Collection, which cost over
1,000 Baht, are only distributed in big cities and
in Bangkok area only.
26Sabina at a Glance
Growth Strategy in 2019-2023
Key Drivers
Customer centric product development
Consistently introduce new products / collection that meet customers needs
Backed by state-of-the-art marketing activities (plan to invest 3-4% of sales in marketing
activities)
Store expansion
Sabina Price optimization
Increase B2B Business
Brand
Wider and Exclusive assortment in online and TV channels
Joint business plan with key partners to align sales & marketing plan
Provide customer seamless Experience
NSR
Personalized marketing campaign
Stores expansion
Sabina brand building
Online and TV channels expansion
Strengthen distributors
oversea
Export Channel expansion
Wholesale expansion
Product innovation Focus on high-end brand
OEM Maintain superb quality and on-time delivery Increase higher profit margin
Now
Looking Forward
Sales will be supported by both Sabina manufacturing capacity together with an increase in product sourcing from trusted sub-contractors
27Company Information
Business structure
Divisions operation of the company policy Shareholding pattern
28Company Information
Company mile stones
Originally, the business of manufacturing and
distributing OEM products of the company
was the production and distribution for
subsidiaries which received production orders
from another customer. Since the subsidiary
has been operating for a long time and is
known to foreign customers more than
domestic ones. When the company became
well-known to foreign customers, it began to
sell OEM products directly to customers.
So the production for lingerie distributors
overseas is the main revenue proportion.
However, after the company changed its
policies concerning reducing the proportion
of OEM production and distribution since
2008, resulting in the company's main
revenue proportion coming mainly from the
production and distribution of products to
the subsidiary under the brand "Sabina".
29Company Information
Message from Chairman The Thai economy in 2019 did not look good, resulting from the decelerating trend in 2018. The GDP at the beginning of
the year was expected to be approximately 3.8 % but ended up at 2.4%. The first half of 2019 saw a rather promising
growth of the Thai economy; however, second half of the year saw a decline in agricultural prices, drought, and heavy
rain at the end of the year, causing floods in the north and northeast regions.
Despite the recession, due to the expansion of distribution channels customized for the current buying habits of consumer
s, Sabina Public Company Limited was able to perform well in 2019, in which its sales revenue had increased by 6.2
percent, resulting in total sales revenue of 3,295 million baht, which was higher than the previous year's sales revenue of
3,103 million baht, resulting in a 14.3% higher profit than the previous year and net profit of 413 million baht, which was
higher than the previous year's net profit of 51 million baht. For this reason, the Board of Directors has resolved to pay
dividends of 1.19 baht per share. However, since the Board of Directors has passed a resolution to pay interim dividends
in the amount of 0.57 baht per share, it is appropriate to propose to the general meeting of shareholders on April 23,
2020 for further dividend payment at the rate of 0.62 baht per share, which will be paid on 22 May 2020
In 2020, the company is planning to increase its sales revenue and expand its customer base by offering new distribution
channels that are easily accessible, faster delivery by adjusting the inventory and shipping system to be more efficient,
new innovative products to meet the needs of consumers, clear marketing communication, and the marketing budget
for maximum efficiency. Exports produced under the CLMV companies' brand are likely to increase due to the reliability
of the quality and the Sabina brand of the company.
In 2019, the company operated its business by abiding by the principles of good corporate governance and continuously
recognizing the importance and responsibility of shareholders and interested parties of the company. In 2019, the
company was evaluated by the Thai Institute of Directors (IOD) and placed at the level of "excellent".
In 2019, the company put a great emphasis on the importance of projects and activities based ESG (Environmental,
Social, Governance) and the philosophy of "Society Lives. People Survive. Employees and Companies live a sustainable
Life", by implementing former projects and maximizing their benefits such as Breast Implant Project that is focused on
breast donation to those undergoing mastectomy because of breast cancer, Zero Waste Project emphasized on usage
of traditional wisdom to make products out of waste materials, and Micro Finance aimed at helping employees with
large debts.
On behalf of the Board of Directors, executives, employees, the company will be dedicated to conducting its business
under the principles of good governance in order to create sustainability for the organization. Thank you to all shareholder
s, customers, business partners, as well as all interested parties, for the trust and confidence that you have given to the
company all along. Finally, we are so proud to have received the Set Award in the Out Standing Performance category for
2019 as well. 30Company Information
Vision and Mission
Vision
The company operates under the
concept of “Create Value with
Innovation” aim to build Sabina lingerie
brand integrity with new innovations as well as
modern fashion, accepted quality, consist and
fits with the needs of all women in all countries
and along with social responsibility.
Partners: Productivity: Planet:
People: Product:
Mission Trust and Reliable Innovation through productivity Return Benefit to Society
Trust and Worthiness in Delivered products beyond
Enterprise by advance mechanism and Environment
human as precious resources expectation
The company has a mission to People: The company believes Product: The company will Partners: The company Productivity: The company will Planet: The company is
operate in accordance with the will manage and operate manage production by using still committed to
that employees are valuable produce product’s quality to
vision structured in order to gain trust and production management business conducting by
human resources because they meet with expectations of
confidence from partners methods, production technology, returning profits to
under the concept of operations are an important factor enables customers. By using research,
or those related to the production innovation Including society and the
which are separated into the company to achieve its develop new innovations for
modern machinery used in environment.
goals and objectives. Therefore, products that will meet the company in every aspect
various parts as follows. giving importance to taking care needs of women of all ages. such as shareholders, production. In order to get
of all employees, every position employees, customers, standardize quality products
is like a valuable resource of the creditors, and competitors. and approve by every customer
company. in every country.
31Company Information
Awards
32Company Information
Awards
33Company Information
Awards
34Company Information
Organization Chart
35Company Information
Board of directors
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