Gome Retail Holdings Limited · HKEX:493

Gome Retail — GOME Electrical Appliances Holding — Q3 2009 Earnings Presentation

21 slides from Gome Retail's earnings presentation, Nov 18, 2009

  1. Slide 1: 3Q 2009 Results Announcement

    3Q 2009 Results Announcement November 18 2009

  2. Slide 2: Disclaimer

    Disclaimer ƒ This presentation and the accompanying slides (the “Presentation”) which have been prepared by GOME Electrical Appliances Holding Limited (“GOME” or the “Company”) do not constitute any offer or invitation to purchase or subscribe for any securities, and shall not form the basis for or

  3. Slide 3: Table of Contents

    Table of Contents „ 3Q09 Business Overview „ 3Q09 Business Analysis 3Q represents the first nine months of the year; Q3 represents the third quarter of the year 3Q 2009 Results Announcement | Page 3

  4. Slide 4: Business Overview 3Q 2009

    Business Overview 3Q 2009 3Q 2009 Results Announcement | Page 4

  5. Slide 5: Income Statement Summary

    Income Statement Summary RMB Million 09Q3 vs. 09Q2 3Q 2008 3Q 2009 YOY Change % Change % Revenue 36,396 31,430 -13.64% 2.85% Consolidated gross profit 6,097 5,289 -13.25% 5.17% Operating profit 1,870 1,158 -38.07% 38.87% Profit before tax 1,948 1,239 -36.40% 37.50% Net profit attributable to equity

  6. Slide 6: Income Statement Summary-Continued

    Income Statement Summary-Continued RMB Million 2008 Q4 2009 Q1 2009 Q2 2009 Q3 Revenue 9,493 9,801 10,662 10,967 Consolidated gross profit 1,677 1,549 1,823 1,917 Operating expenses 1,603 1,228 1,473 1,431 Operating profit 74 321 350 487 Operating profit margin 0.78% 3.28% 3.28% 4.44% „ Since the be

  7. Slide 7: Rapid Rebound of Business

    Rapid Rebound of Business Sales revenue in Q3 2009 is close to that in Consolidated gross profit margin maintained stable and Q3 2008 operating margin recovered gradually RMB Billion Sales revenue 15 0% 30.0% YOY comparison Consolidated gross profit margin Operating profit margin 12 11.5 -5% 25.0% 1

  8. Slide 8: Remarkable Improvement in Operating Efficiency

    Remarkable Improvement in Operating Efficiency Same Store Sales (YOY) Sales per sqm. RMB/㎡ 5.00% 3.11% 2.05% 0.00% 6,000 2006 2007 2008Q4 2009Q1 2009Q2 2009Q3 4,496 3,893 3,799 - 5.00% -2.50% 4,000 3,183 - 10 . 0 0 % 4,364 -8.28% 3,658 2,000 - 15 . 0 0 % 3,100 - 20.00% 0 -20.75% 08Q1 08Q2 08Q3 08Q4

  9. Slide 9: Business Analysis 3Q 2009

    Business Analysis 3Q 2009 3Q 2009 Results Announcement | Page 9

  10. Slide 10: Business Performance Review

    Business Performance Review Industry trend „ The weak macro economic environment continued in the beginning of 2009, hence sluggish consumer sentiment affected the overall performance of the company in the first quarter „ Following the recovery of the macro economy and the consumer sentiment in the

  11. Slide 11: Network Rationalization Saw Initial Positive Results

    Network Rationalization Saw Initial Positive Results Network rationalization vs aggressive „ In the first nine months of 2009, Gome closed down 158 underperforming expansion stores, opened 41 new stores, hence the total number of stores reduced by 117, compared with that at the end of 2008 Enhanceme

  12. Slide 12: Operating Scale

    Operating Scale Number of Stores Sales Area 10,000 ㎡ 847 859 312 828 816 305 779 296 300 746 742 282 272 272 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3 Average Sales of Individual Stores Sales Per Square Meter RMB 10K RMB 1,582 1,567 4,496 4,364 1,362 1,338 1,435 3,893 3,7

  13. Slide 13: Consolidated Gross Profit Margin Maintaining Upward Trend

    Consolidated Gross Profit Margin Maintaining Upward Trend 20.0% 16.8% 17.3% 17.7% 17.1% 16.4% 15.0% 17.7% 17.5% 15.8% 15.4% 15.8% 10.0% 13.3% 5.0% 0.0% 07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3 Key drivers for continuous enhancement of consolidated gross profit margin „ Enlarged sales o

  14. Slide 14: Consolidated Gross Profit Margin and Other Income Analysis

    Consolidated Gross Profit Margin and Other Income Analysis Consolidated gross profit margin rose steadily and contribution mix remained stable RMB million 16.75% 16.83% 2009 9 Other Income Months 6,097 5,289 Management fee from non- 3.3% 10.6% 9.8% listed GOME parent Co. Air conditioner installation

  15. Slide 15: Revenue Mix by Region Analysis

    Revenue Mix by Region Analysis Shanghai 15% 14% Beijing 38% Guangzhou 11% 37% 11% Shenzhen 10% 11% Tianjin 9% 10% Fuzhou 6% 6% 5% 6% Chengdu 4% 7% Others 2008 9 Months 2009 9 Months Total: RMB 36.4 billion Total: RMB 31.4 billion 3Q 2009 Results Announcement | Page 15

  16. Slide 16: Revenue Mix by Product Analysis

    Revenue Mix by Product Analysis Digital Digital Computer 7% Computer 7% 6% 6% AV AV 31% White Goods 30% White Goods 10% 10% Telecom Telecom 14% 15% Air Conditioner Air Conditioner 14% 15% Refrigerator & Refregerator washing and washing machine machine 18% 17% 2008 9 Months 2009 9 Months Total: RMB 3

  17. Slide 17: Continuous Growth in Gross Profit Margin by Product

    Continuous Growth in Gross Profit Margin by Product 3Q 2008 3Q 2009 15.0% 13.51% 13.68% 12.5% 10.69%10.73% 9.91% 9.98% 9.71% 10.0% 9.49% 9.52% 9.39% 7.91% 7.85% 7.5% 6.31% 5.83% 5.0% 2.5% 0.0% AV Air Con Refr & Wash Telecom White Goods Computer Digital 3Q 2009 Results Announcement | Page 17

  18. Slide 18: Stable Supplier Relationship Maintained

    Stable Supplier Relationship Maintained Top 5 suppliers' contribution to total sales for the first 9 months 2008 32.0% 10.0% 8.1% 5.0% 4.8% 4.1% Haier Samsung Sony Midea Nokia Total top 5 Top 5 suppliers' contribution to total sales for the first 9 months 2009 33.0% 9.4% 7.8% 5.6% 5.3% 4.8% Haier Sa

  19. Slide 19: Operating Expenses Analysis

    Operating Expenses Analysis RMB Million 1,603 Other operating 1,473 202 expense Other operating 1,431 Other operating 202 Other expense 125 212 121 expense 1,228 operating 212 Admin 128 212 100 225 59 expense 109 Admin Admin 95 99 59 60 169 90 218 134 87 Admin 159 164 86 186 76 85 88 55 75 37 46 48

  20. Slide 20: Coverage of Store Network Optimization

    Coverage of Store Network Optimization As at the end of Sept 2009 Group GOME China Paradise CellStar 76 58 18 0 Flagship stores Standard stores (incl. supermarket stores) 639 524 115 0 Specialized stores 27 4 2 21 Total: 742 586 135 21 Tier 1 Market 477 358 98 21 Tier 2 Market 265 228 37 0 Net incre

  21. Slide 21: Thank You

    Thank You 3Q 2009 Results Announcement | Page 21 The Ending Page

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