361 Degrees International Ltd. · HKEX:1361
361 Degrees International — FY2020 Earnings Presentation
32 slides from 361 Degrees International's earnings presentation, March 2021
Slide 1: 361 Degrees International Limited
361 Degrees International Limited (Stock code: 1361.HK) March 2021
Slide 2: Contents
Financial Review Operational Review Brand Contents Building Industry Outlook Q&A
Slide 3: Disclaimer
Disclaimer These presentation slides have been prepared by 361 Degrees International Limited (the “Company”) solely for us during its presentation held in connection with its annual results for the year ended 31 December 2020 and may not be reproduced or redistributed. In particular, these presentat
Slide 4: Focus on Succeeding and Develop Coordinately
Focus on Succeeding and Develop Coordinately Seek progress while maintaining stability, focus on core brand resources and strive to succeed in a complex environment During the post-epidemic era, core brand, kids’ wear and e-commerce are the major growth drivers of the Group’s business Dividend polic
Slide 5: Financial Review
Financial Review Aaron GORDON International Basketball Super Star Aaron GORDON’s first generation of signature basketball shoes AG1
Slide 6: Financial Highlights
Financial Highlights For the year ended 31 Dec RMB mn 2020 2019 Change Revenue 5,127.0 5,631.9 -9.0% Gross profit 1,941.7 2,269.6 -14.4% Operating profit 822.7 887.3 -7.3% Profit attributable to equity shareholders 415.1 432.4 -4.0% Basic EPS (RMB cents) 20.1 20.9 -3.8% Profitability Ratios (%) Gros
Slide 7: Revenue and Gross Profit
Revenue and Gross Profit Revenue Mix Revenue Gross (RMB mn) margin 8,000 45% 40.3% 39.0% 40% 6,000 37.9% 35% Footwear -9.0 % 42.4% 36.6% 4,000 Apparel 30% 5,631.9 5,127.0 Kids’ Sportwear 40.7% 17.7% 2,000 1.5% 1.8% 25% Accessories 18.2% Others 0 20% 2019 2020 1.1% 1.0% Footwear Apparel Kids’ Sportsw
Slide 8: Major Operating Expenses
Major Operating Expenses Selling and Distribution Costs Administrative Expenses For the year ended 31 Dec For the year ended 31 Dec RMB mn 2020 2019 Change RMB mn 2020 2019 Change A&P 494.7 507.8 -2.6% R&D 204.5 214.3 -4.6% E-commerce - 238.3 226.9 +5.0% expenses Staff costs 109.6 133.5 -17.9% Packa
Slide 9: Working Capital Cycle
Working Capital Cycle Working Capital Turnover Days Trade Debtors and Ageing Analysis （days） As at As at 150 RMB’000 31 Dec 2020 31 Dec 2019 119 Trade debtors 2,274,493 2,125,643 100 90 Less：Allowance for doubtful debts (90,303) (50,847) 2,184,190 2,074,796 50 Bills Receivable 73,254 124,578 2,257,4
Slide 10: Liquidity and Capital Strength
Liquidity and Capital Strength Cash Flow Financial Resources For the year ended 31 Dec As at 31 Dec 2020 2019 2020 2019 RMB mn RMB’000 Profit before income 701.6 722.4 tax Pledged bank deposits 62,628 230,675 Adjustments for non- cash gain/loss and 103.9 163.4 Deposits with bank with maturities > 3
Slide 11: Balance Sheet Highlights
Balance Sheet Highlights RMB mn As at 31 Dec 2020 As at 31 Dec 2019 Change Current assets 10,440.1 10,659.9 -2.1% Current liabilities 4,041.2 2,809.0 +43.9% Net current assets 6,398.9 7,850.8 -18.5% Equity attributable to owners of the 6,608.9 6,322.5 +4.5% company Net asset value per share (RMB) 3.
Slide 12: Operational Review
ISPO Global Design Award Winner in the Running Shoe Category 2020 Q Elastic Pure (Q彈淨界） Operational Review
Slide 13: 361° Sales Overview
361°Sales Overview Global Sales Network The Group has 6,118 point-of sales across the world, in which 5,165 point-of-sales are in mainland China. Point-of sales in mainland China: In terms of city distribution, point-of sales in the 1st and 2nd-tier cities accounted for 24.0%, and point-of sales in
Slide 14: Kids' Sportswear Sales Overview
Kids’ Sportswear Sales Overview China Sales Network The Group has 1,703 point-of-sales for kids’ sportswear in China. In which: In terms of city distribution, point-of-sales in 1st and 2nd-tier cities accounted for 28.9%, and point-of-sales in 3rd-tier or lower cities accounted for 71.1%; in terms o
Slide 15: Consumption Experience Upgrade
Consumption Experience Upgrade Optimized Channel Structure Enhanced Omni-channel Upgraded Store Image Marketing Strategy • The first 4th generation image store under 361º Kids opened in Jan • Capture new trends in consumption habits and promote 2020, upgraded 207 stores to the 4th generation store
Slide 16: Sports Goods for Running
Sports Goods for Running Running Products Gearing up for Advancement, Won Favour of Professional Runners and Amateur Sports Lovers • Continuously launched professional running products, sponsored top runners including Li Zicheng, Guan Siyang and Zhao Na； • Fully supported events with professionalism
Slide 17: Sports Goods for Basketball
Sports Goods for Basketball Basketball Products Deeply Developed Endorsement Resources, Leading the Trend with its Products and Marketing Events • Deeply developed endorsement resources. In which, spokespersons include Aaron GORDON, an international basketball super star, and Kyranbek MAKAN, a Chine
Slide 18: Sports Goods for Comprehensive Training
Sports Goods for Comprehensive Training Comprehensive Training Products Unleash Passion through Integration of Excellent Product Performance and Stylish Design • Collaborated with TEAM M23, a China Professional Boxer Training and Agent Team, to develop professional products and image of comprehensiv
Slide 19: E-commerce
E-commerce In the Post-pandemic Era, E-commerce Ushered in Development Opportunities • In the post-pandemic era, shifting from offline to online retail channels was accelerated, providing more development opportunities for e- commerce business; • In Jul 2020, 361° and Jinfa Equity, a state-owned e
Slide 20: Brand Building
Brand Kyranbek MAKAN Building essional Basketball Player Kyranbek MAKAN’s signature basketball shoes A Self-restraint Generation (克制一代)
Slide 21: Brand Positioning
Brand Positioning High-end Market Casual Professional Fashion Sports Mass Market 21
Slide 22: Top-tier Sports Event Sponsorship
Top-tier Sports Event Sponsorship Upheld the Spirit of Sportsmanship, Sponsoring the Asian Games for the 4th Consecutive Time • On 21 Jun 2020, 361° became the official partner of sports apparel of the 19th Asian Games in Hangzhou in 2022; • Since the 2010 Asian Games in Guangzhou, it has sponsore
Slide 23: National & Professional Sports Team Resources
National & Professional Sports Team Resources Fully Supported 17 National & Professional Sports Teams National and Regional Sports Teams Professional Sports Teams • China National Swimming Team • China National Biathlon Team • LI Zicheng Club, a Professional • China National Nordic Biathlon Team
Slide 24: Outstanding Spokesperson Resources
Outstanding Spokesperson Resources Contracted with 29 Top-tier Athletes and Celebrities as Spokespersons Basketball player Marathon runner Swimmer • International basketball super star, • The top athlete in Asia and China • Famous professional swimmers from Aaron GORDON Marathon Majors, Li Zic
Slide 25: Premium IP Crossover
Premium IP Crossover Mature Crossover Business Model, Widely Recognized by the Industry • Launched series of crossover products such as Gundam, Minions, PepsiCo, Captain Tsubasa, Saint Seiya, Initial D, QQ Speed, The Three-Body Problem and Pokémon, frequency of cooperation once again hit a new high;
Slide 26: R&D and Design
R＆D and Design The Group has obtained 395 patents. In 2020, R&D expenses accounted for 4.0% of the Group’s revenue The three-state (3TECH )technology was successfully launched Key R&D design breakthroughs Q Elastic Pure Running Shoes 3TECH System Awarded the ISPO Award “Global Design Award in th
Slide 27: 361º Kids Brand Building
361º Kids Brand Building Consolidated Market Leadership, Enlarged Product Differentiation through Highlighting the “Technology-driven National Brand” Positioning of Products Professional Functionality • Strongly expanded its strategic presence in the field of youth football training, through becom
Slide 28: Industry Outlook
XU Can WBA featherweight world boxing champion Industry Outlook
Slide 29: Favourable Government Policies
Favourable Government Policies • Action plan to further promote sports consumption • Implementation Plan for Further Optimizing “Outline of the Construction of a Powerful Document 46 Supply to Promote the Stable Consumption Sports Country” suggests that the sports • Several Opinions of the Growth
Slide 30: Consumption Growth Momentum
Consumption Growth Momentum Spending Per Capita on Sports Goods The development of China's economy and the growth of consumption level bring sufficient impetus to the development of the sports industry. (USD） Consumption has been the strongest engine of 450 China’s economic growth. The continuous
Slide 31: Favourable Factors to Drive Industry Development
Favourable Factors to Drive Industry Development 2015-2025 Market Size of The sports industry has been releasing its potential at an accelerated rate, advancing to the stage of China’s Sportswear Industry higher-quality development (RMB bn） Major sports events such as the Winter Olympics 603 and A
Slide 32: Q&A
Air suspension clothing co-branding The Three Body Problem Q&A
361 Degrees International — FY2020 Earnings Presentation on 6ix