361 Degrees International Ltd. · HKEX:1361
361 Degrees International — H1 2019 Earnings Presentation
35 slides from 361 Degrees International's earnings presentation, Aug 20, 2019
Slide 1: 2019 Interim Results Presentation
多一度热爱 2019 Interim Results Presentation 361 Degrees International Limited （Stock code: 1361.HK） 20 August 2019
Slide 2: Contents
Contents 多一度热爱 01 Development Strategies P.4 02 Financial Highlights P.6 03 Operational Highlights P.13 04 Outlook P.27 05 Q&A P.30 06 Appendix P.31 2
Slide 3: Disclaimer
Disclaimer 多一度热爱 These presentation slides have been prepared by 361 Degrees International Limited (the “Company”) solely for us during its presentation held in connection with its interim results for the six months ended 30 June 2019 and may not be reproduced or redistributed. In particular, these
Slide 4: Development Strategies
Development Strategies 4
Slide 5: Development Strategies
Development Strategies 多一度热爱 Connecting the International Line Expanding into Youth Football Launching Rebranding Program in Technology Platform to the Domestic Ecosystem to Strengthen the Brand Good Order Supply Chain Advantage of the Kids Business Becoming a value-added brand, giving Complete
Slide 6: Financial Highlights
Financial Highlights 6
Slide 7: Key Financial Highlights
Key Financial Highlights 多一度热爱 For the six months ended 30 June RMB mn 2019 2018 Change Revenue 3,236.8 3,016.9 +7.3% Gross profit 1,322.7 1,255.7 +5.3% Operating profit 641.5 630.6 +1.7% Profit attributable to equity shareholders 367.4 335.0 +9.7% Basic EPS (RMB cents) 17.8 16.2 +9.9% Profitability
Slide 8: Revenue and Gross Margin
Revenue and Gross Margin 多一度热爱 RMB mn Gross margin (%) 3,300 45% 3,250 41.9% 41.6% 40.9% 40% 3,200 3,150 35% 3,100 40.1% 45.2% Footwear 3,236.8 30% 3,050 43.7% Apparel 3,000 1.3% 25% 1.3% 12.1% Accessories 2,950 3,016.9 2,900 20% 12.0% 361° Kids 2018 1H 2019 1H 1.2% Others 1.2% Footwear Apparel Kids
Slide 9: Major Operating Expenses
Major Operating Expenses 多一度热爱 Selling and Distribution Costs Administrative Expenses For the six months ended 30 June For the six months ended 30 June RMB mn 2019 2018 Change RMB mn 2019 2018 Change A&P 274.9 263.3 +4.4% R&D 108.5 100.5 -7.4% E-commerce - Commission & other 42.5 43.4 -2.1% Others 1
Slide 10: Working Capital Cycle
Working Capital Cycle 多一度热爱 Working Capital Turnover Days （days） 100 90 85 80 75 Trade Debtors and Ageing Analysis 70 60 As at 30 Jun As at 31 Dec RMB’000 50 2019 2018 40 Trade debtors 2,957,382 2,362,054 30 Less：Allowance for doubtful debts (57,855) (57,855) 20 10 2,899,527 2,304,199 0 Bills Receiv
Slide 11: Liquidity and Capital Strength
Liquidity and Capital Strength 多一度热爱 Cash Flow Financial Resources For the six months ended 30 June As at 30 Jun As at 31 Dec RMB mn 2019 2018 RMB’000 2019 2018 Operating profit 641.5 630.6 Pledged bank deposits 267,574 327,405 Change in inventories 115.6 (27.5) Deposits with bank with maturities >
Slide 12: Balance Sheet Highlights
Balance Sheet Highlights 多一度热爱 RMB mn As at 30 Jun 2019 As at 31 Dec 2018 Change Current assets 11,030.3 10,650.0 +3.6% Current liabilities 3,405.6 3,354.2 +1.5% Net current assets 7,624.7 7,295.8 +4.5% Equity attributable to owners of the 6,138.5 5,767.7 +6.4% company Net asset value per share (RMB
Slide 13: Operational Highlights
Operational Highlights
Slide 14: Investment in R&D and Innovation
Investment in R&D and Innovation 多一度热爱 361° R&D Centre The Group's independent R&D center in the Wuli Industrial Park, Jinjiang possesses various titles, such as provincial technology center, national sports industry demonstration unit, national industrial design center and provincial academician
Slide 15: 361° Product Technologies
361° Product Technologies 多一度热爱 As at 30 June 2019, the Group has obtained 334 patents QU！KFOAM and other top-notch footwear product technologies leverage on the 4 major apparel technology platforms to provide assurance of product functionality Footwear Technology Apparel Technology Free Cool Ea
Slide 16: 361° Product Series—Running
361° Product Series—Running 多一度热爱 Impressive brand promotion of Running series – 361° Run for your own answer Recommended by US Recommended by US Recommended by US Women's Health Runner’s World in Runner’s World in April Magazine in March 2019 2019 Strata 3 Meraki 2 May 2019 Yushan Hot selling all
Slide 17: 361° Product Series—Running (cont'd)
361° Product Series—Running (cont’d) 多一度热爱 Sponsoring premium running competitions such as Chengdu Panda Marathon, Taiwan Tianshuji Super Marathon, Japan’s World Heritage Himeji Castle Marathon, Haspa Marathon Hamburg, She Run 2019 Island Series Women Run Gulangyu Many famous runners won champio
Slide 18: 361° Product Series—Comprehensive Training
361° Product Series—Comprehensive Training 多一度热爱 Comprehensive training series products showcased their functional attributes and mix-and-match fashion Spokespersons Ashton Eaton and his spouse endorsed the products with their Decathlon records, a legend backed by strength and hard work 18
Slide 19: 361° Product Series—Comprehensive Training (cont'd)
361° Product Series—Comprehensive Training (cont’d) 多一度热爱 Fulfill the needs of fashionable sporty person with outstanding function and fashionable design Gorgeous female comprehensive training series with famous star –Tan Wei Wei presenting in a stylish way Signed contracts with WCBA world cha
Slide 20: 361° Product line—Basketball
361° Product line—Basketball 多一度热爱 Deeply integrate the reputation of basketball spokesperson with products — basketball shoes featuring Courtney Fortson and Jimmer Fredette 361° launched the BIG 3 “Jian Zhan” basketball shoe series in collaboration with a famous craftsman of tea ware of Jian Zhan
Slide 21: 361° Product line—Crossover
361° Product line—Crossover X 多一度热爱 361° created a brand new Gundam crossover series which received overwhelming response from the market This series was reserved by more than 60,000 people before its launch and Gundam limited edition shoe box sets were even sold out in a second on the launch da
Slide 22: 361° Product line—Crossover (Cont'd)
361° Product line—Crossover (Cont’d) X 多一度热爱 CF developed two custom hero-class weapons for the brand for the first time - players voted for TOP2 shoes featuring selected guns AK47 M4A1 First Joint Sports X E-sports Themed Flagship Store in Kunming POP-UP STORE, generating offline business C
Slide 23: 361° Sales Network
361° Sales Network 多一度热爱 361° Core Brand and Kids Sales Network in Domestic Market 361° Core Brand Type of Stores 361° Kids Type of Stores Northern region Core Brand: 2,482 26% 28% Kids: 743 1,434 515 stores 1,322 stores 4,010 stores Western region stores 72% Core Brand: 1,172 74% Kids: 347 Eastern
Slide 24: 361° Sales management—Retail Store Image Optimization
361° Sales management—Retail Store Image Optimization 多一度热爱 Leveraging the optimization of retail store image to enhance the professional and fashion attributes of the store, accomplish brand and product differentiation, and highlight product characteristics, thereby drawing foot traffic and attra
Slide 25: 361° E-commerce
361° E-commerce 多一度热爱 Revenue of e-commerce Online product composition Distribution channels 500 25% 422.5 25.6% 31% 400 20% 328.9 130.6 300 15% 13.1% 56% 200 10.9% 10% 74.4% 236.1 8% 100 5% 5% 34.6 0 0% 21.3 20181H 20191H Sales of online exclusive products Taobao JD VIPS Other clients RMB (Million)
Slide 26: 361° Kids—Expanding the Strategic Presence in Youth Football Training
361° Kids—Expanding the Strategic Presence in Youth Football Training 多一度热爱 After the Shanghai Greenland Shenhua Football Youth Training, 361° Kids successfully signed the Evergrande Football School and Sinobo Guoan Football team. Evergrande and Sinobo Guoan are the top football youth training tea
Slide 27: Business Outlook
Business Outlook 27
Slide 28: Favorable Government Policies
Favorable Government Policies 2019 Implementation Plan for Further Optimizing Supply to Promote the Stable Consumption Growth and Facilitating the Formation of a Strong Domestic Market (2019) ‘Action plan to further promote sports consumption’ (2019- 2018 2020) ‘Marathon Sports Industry Develo
Slide 29: 2013-2023 Market Size of China's Sportswear Industry
Numerous Positive Factors to drive Industry Development 多一度热爱 2013-2023 Market Size of China’s Sportswear Industry （RMB bn） 359.0 383.9 310.4 334.4 221.5 264.8 286.7 166.9 190.4 204.3 218.6 134.7 148.3 161.9 176.2 190.1 121 148.6 61.9 71.6 85.5 101.6 88.8 100.5 116.2 124.8 134.2 144.3 154.7 165.3 72
Slide 30: Q&A
Q&A 30
Slide 31: Appendix
Appendix 31
Slide 32: Brand resources—Event resources
Brand resources—Event resources 多一度热爱 Official Joint marketing Supreme partner Title sponsor sportswear cooperation partner 2018-2019 2018-2019 2018-2022 2018-2019 • Chengdu Panda Marathon • 361° She Run • The Beijing 2022 Winter • “Cross Fire” and Olympic Games the CFPL E-sports Preparatory Trainin
Slide 33: Brand Resources—Sports team resources
Brand Resources—Sports team resources 多一度热爱 China National Swimming China National Softball Hong Kong Women Team Women's Team Volleyball Team M23战队 Chinese synchronized swimming team Chinese National Hockey Team China National Freestyle Ski U-Type Venue Team China National Freestyle Sk
Slide 34: Brand Resources—International athlete resources
Brand Resources—International athlete resources 多一度热爱 Niclas Bock won the first in Oberammergau Triathlon,German Morgan Pearson won the triathlon and Rachel Klamer won the third place in Champion in the Camtri Sprint Carlsfield Triathlon, fifth place in Katie Zaferes won the first place Hamburg Wass
Slide 35: Brand Resources—Local athletes and spokesperson resources
Brand Resources—Local athletes and spokesperson resources 多一度热爱 Yang Xu Liu Xiang Zhang Yufei Sun Yang Jimmer Fredette Courtney Fortson Li Bingjie Wang Jianjiahe Domestic spokesperson Guan Siyang Li Zicheng Tie Liang Tan weiwei Ren Jialun Ashton Eaton Mu Luen & Benny Ma Liangwu Fu Wenguo Tyson Xu Ca
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