Milan Station Holdings Limited · HKEX:1150
Milan Station — H1 2012 Earnings Presentation
24 slides from Milan Station's earnings presentation, August 2012
Slide 1: Milan Station Holdings Limited 2012 Interim Results Announcement
Nanjing Road, Shanghai Gubei, Shanghai 上海南京路 上海古北 Milan Station Holdings Limited (Stock code: 1150) 2012 Interim Results Announcement August 2012
Slide 2: Disclaimer
These materials have been prepared by Milan Station Holdings Limited (the “Company” or “Milan Station”) solely for information use during its investor presentation and may not be taken away, reproduced, redistributed, disseminate, divulge or passed on, directly or indirectly, to any other person (wh
Slide 3: Agenda
1. Results Highlights 2. Financial Review 3. Business Review 4. Outlook and Future Plans 3
Slide 4: 2012 Interim Results Highlights
2012 Interim Results Highlights
Slide 5: 1H 2012 Results Highlights
1H 2012 Turnover HK$ 374,336,000 Net profit HK$ 386,000 HK operation geared up to face tough environment The PRC market contributed to a higher proportion of turnover Brand equity continued to grow Net profit affected by downturn of consumer sentiment and increase in sales expenses, administrative e
Slide 6: Financial Review
Financial Review
Slide 7: Income statement summary, six months ended 30 June
(HK$’000) (%) 2012 2011 YOY Change For The Six Months Ended 30 June Revenue 374,336 430,182 ▼ 13.0% Cost of Sales 296,268 322,515 ▼ 8.1% Gross Profit 78,068 107,667 ▼ 27.5% EBIT 3,087 43,095 ▼92.8% EBITDA 6,663 45,183 ▼85.3 % Net Profit 386 34,156 ▼98.9% Basic Earnings Per Share HK0.06 cent HK5.99 c
Slide 8: Operational Data and Key Financial Indicators
2012 2011 YOY Changes Operational Data For the six months ended 30 June Inventories (HK$’000) 116,989 114,581 ▲2.1% Inventory Turnover (days) 83.3 57.1 ▲26.2 days Debtor’s Turnover (days) 3.7 3.2 ▲0.5 days Creditor’s Turnover (days) - - - 2012 2011 YOY Changes Key Financial Indicators As at 30 June
Slide 9: Revenue by product types, regions and price ranges
By product types By regions By price ranges HK$ Mn (%of revenue) HK$ Mn (%of revenue) HK$ Mn (%of revenue) 430.2 430.2 430.2 374.3 33.1 7.7% 374.3 374.3 23.9 5.5% 96.5 22.4% 43.2 11.5% 91.4 24.4% 196.4 42.0% 26.5 7.1 % 69.9 16.3% 157.0 18.0 16.5% 45.7% 4.2% 61.8 21.0 5.6% 373.2 86.8% 304.6 81.4% 245
Slide 10: Gross profit and margin by regions, price ranges, product types
Gross profit by regions Gross profit by price ranges Gross profit by product types HK$ Mn HK$ Mn HK$ Mn 109.8 84.9 109.8 84.9 109.8 84.9 7.7 32.5 12.1 8.1 18.7 28.9 59.8 12.5 3.7 16.2 45.8 90.0 4.4 64.3 54.9 50.0 35.4 39.1 1H2011 1H2012 1H2011 1H2012 1H2011 1H2012 Hong Kong The PRC Macau Within HK$1
Slide 11: Operating expenses breakdown
Operating expenses breakdown Rents and rates HK$ mn % of revenue HK$ ‘000 Rents and rate % of revenue Administrative and other operating expenses % of revenue 8.3% 32,000 Selling expenses 30,000 6.3% 7% Cost of sales 28,000 31,179 5% 26,000 27,183 18.5 4.3% 25.6 6.8% 24,000 3% 49.4 11.5% 54.1 14.5%
Slide 12: Use of IPO proceeds
Usage up to Allocated Amount Application 30 June 2012 (HK$ million) (HK$ million) Expansion of retail network in the PRC 113.5 41.6 Relocating and redecorating existing store in 12.0 3.4 HK Marketing and promotion 17.0 2.7 Development of the “MS” brand product 4.0 - Exploration of online sales chann
Slide 13: Business Review
Business Review
Slide 14: Hong Kong 1H2012 Revenue
Hong Kong 1H2012 Revenue: HK$304.6mn ↓18.4% YoY • Switched focus to mid-range and fast-moving products as consumer sentiment weakened • Reallocated “France Station” within Causeway Bay to control rents at normal levels • Persistent effort in brand building to maintain competitive advantage in face o
Slide 15: The PRC 1H2012 Revenue
The PRC 1H2012 Revenue: HK$43.2mn ↑ 30.5 % YoY • Slower but moderate growth in sales contributed by 2 Shanghai stores opened in late 2011 • Identifying new opportunities in target cities with a prudent and selective approach • Prudently and selectively identify new store openings in target cities •
Slide 16: Macau 1H2012 Revenue
1H2012 Revenue: HK$26.5mn Macau ↑ 10.9% YoY • Continue to benefit from the prosperous gaming and tourism industry 16
Slide 17: Revenue by region and district
1H2011 Revenue 1H2012 Revenue Region / District YOY change (HK$ million) (HK$ million) Hong Kong Causeway Bay 165.7 108.6 -34.5% Tsim Sha Tsui 95.8 82.2 -14.2% Central 56.0 53.0 -5.4% Mong Kok 33.4 31.1 -6.9% Others 22.3 29.7 33.2% 373. 2 304.6 -18.4% The PRC Beijing 33.1 27.4 -17.2% Shanghai - 15.8
Slide 18: Credit card promotions, loyalty programme, advertising
Credit Card Promotions Customer Loyalty Programme Title Sponsorship As of 30 June 2012, total number of Movies Joined force with local banks VIP clients increased to 11,824 (31 premier to offer discount to credit and magic Dec 2011: 10,645) card holders shows In 1H2012, total sales from VIP
Slide 19: Outlook and Future Plans
Outlook and Future Plans
Slide 20: Challenges ahead and favorable factors
Challenges ahead Favorable factors • Turmoil in the global economy and • Domestic consumption remains key capital markets will continue policy priority in the PRC • Cyclical effect on the luxury market • Continual urbanization and emerging with weaker consumer sentiment middle class in the PRC • Int
Slide 21: Retail store strategies and online platform
Refined and flexible strategies Explore business opportunity for retail stores through online platform • Enhance leading position in HK • Expand customer reach and boast sales • Optimize store mix in a cost-effective way • Identify the right products for • Develop and operate own online changing con
Slide 22: Store network expansion in the PRC
Continuously improve the Successful operation in 2 major Prudent and selective approach cities strengthened our confidence current mix of retail stores in in store expansion in the PRC in replicating our business model in HK the PRC Proposed JV to be formed in Beijing 2012 2 stores Shanghai 2 stores
Slide 23: Leading position in market niche with strong brand recognition
Leading position in market niche Well-established retail network with strong brand recognition in prime locations Broad variety of Capable management international brand team names A recognized market leader in retailing of unused and second-hand luxury branded handbags and apparel products 23
Slide 24: Q&A Session
Q&A Session
Milan Station Holdings — H1 2012 Earnings Presentation on 6ix