361 Degrees International Ltd. · HKEX:1361

361 Degrees International — FY2014 Earnings Presentation

23 slides from 361 Degrees International's earnings presentation, Mar 10, 2015

  1. Slide 1: 361 Degrees International Limited FY2014 Full Year Results

    361 Degrees International Limited FY2014 Full Year Results 361度国际控股有限公司 2014年度全年业绩 March 2015 2015年3月 1

  2. Slide 2: 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 results for the year ended 30 June 2013 and may not be reproduced or redistributed. In particular, these presentation slides

  3. Slide 3: Agenda

    AGENDA 内容概要 Operational Highlights 营运亮点 Financial Highlights 财务摘要 Outlook and Strategies for 2015 2015年展望及策略 Q&A 问答环节 3

  4. Slide 4: Operational Highlights

    Operational Highlights 营运亮点 4

  5. Slide 5: Market has turned around and shows positive signs of revival

    MARKET HAS TURNED AROUND AND SHOWS POSITIVE SIGNS OF REVIVAL 行业已复苏 正面回复迹象浮现 2013 2014 2015 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 SSSG(1) 1.5% 1.8% 2.8% 4.7% 5.5% TBA TBA TBA 同店销售增长(1) Channel Inventories(2) 4.2x 4.2x 4.1x 4.3x 4.2x TBA TBA TBA 渠道存货比(2) Wholesale Orders y-o-y -17% -8% -8% -7% +8% +11% +11% +16% 订单

  6. Slide 6: Retailers now on profitable footing

    RETAILERS NOW ON PROFITABLE FOOTING 零售商回复盈利能力  Current wholesale pricing structure offer retailers better pricing. No. of Franchised Outlets 现时的批发价格结构为零售商提供更好的价格。 特许零售店数目  Rack Subsidy program continued in 2014 for qualified stores (2014: RMB214 mil); Total of RMB757 mil since 2011. 2014年继续为合格的门店提

  7. Slide 7: 2014 a key year for the 361° brand with YOG and Asian Games

    2014 A KEY YEAR FOR THE 361° BRAND WITH YOG AND ASIAN GAMES 赞助青年运动会及亚运会令2014年成为361度品牌关键一年 Major Event Sponsorships Celebrity Athlete Endorsements 大型赛事赞助 明星签约 Kevin Love Stephon Marbury  We generally aim to spend between 10%-12% of revenue on 凯文·乐福 斯蒂芬·马布里 brand promotion but this often depends on t

  8. Slide 8: Maximum flexibility between in-house production and OEM

    MAXIUMUM FLEXIBILITY BETWEEN IN-HOUSE PRODUCTION AND OEM 内部生产及外包达到最高的灵活性 Jiangtou 江头 Wuli 五里 Production Capacity 产能 Footwear 12 mil pieces / No Apparel Footwear 9 mil pieces / 2 Apparel Workshops Production workers 生产员工 1,900 3,400  361 Degrees enjoys operational advantages with both  361度于福建晋江的两家

  9. Slide 9: 361° Kids continues to perform satisfactorily

    361°KIDS CONTINUES TO PERFORM SATISFACTORILY 361°童装持续表现理想 Store Format 门店类型  This is an independently-run unit leveraging only on the 361° brand and its distributorship network. Its target customer group is between the ages of 5 and 12. Street stores 街铺 727 这是借助361 ° 品牌及其分销网络的独立运作单位。目标客户群年 龄介于5-12岁

  10. Slide 10: One Way

    ONE WAY  In November 2013, 361° Group entered into a  于2013年11月，361度集团与芬兰品牌 partnership with One Way Oy of Finland to form a One Way Oy 订 立 有 关 大 中 华 地 区 70/30 joint-venture for Greater China (including （包括香港及澳门）的70/30合营协议。 Hong Kong and Macau).  One Way是一个芬兰运动品牌，专注滑  One Way is a Nordic sports

  11. Slide 11: Overseas Expansion

    OVERSEAS EXPANSION 海外拓展  In late 2014, the 361 Degrees Group established an  在2014年末，361度集团成立海外业务分部， 由多名 Overseas Business Unit, comprising several industry 富有经验的业内专业人才带领拓展海外市场。 veterans to spearhead our overseas expansion.  海外业务分部已在巴西、美国及德国市场试水，推出  The Overseas Business Unit has soft-launched a

  12. Slide 12: Financial Highlights

    Financial Highlights 财务摘要 12

  13. Slide 13: FY2014 Key Financial Highlights

    FY2014 KEY FINANCIAL HIGHLIGHTS For the year ended 31 December/ 截至12月31日止年度 (RMB mn unless indicated otherwise) (人民币百万元） 2014 2013 Change /变动 (%) Turnover 营业额 3,906.3 3,583.5 +9.0 Operating profit 经营溢利 724.2 352.2 +105.6 Profit attributable to equity shareholders 本公司权益持有人应占溢利 397.6 211.3 +88.2 Basic

  14. Slide 14: Consolidated Statement of Profit

    CONSOLIDATED STATEMENT OF PROFIT For the year ended 31 December/ 截至12月31日止年度 (RMB mn unless indicated otherwise) (人民币百万元） 2014 2013 Change /变动 (%) Turnover 营业额 3,906.3 3,583.5 +9.0 Gross profit 毛利 1,596.8 1,417.1 +12.7 Gross profit margin 毛利率 (%) 40.9 39.5 +1.4 p.p. Other revenue (net of other loss/

  15. Slide 15: Revenue grew 9% due to compensating factors

    DESPITE A GENERALLY WEAKER ORDER BOOK, REVENUE GREW 9% DUE TO COMPENSATING FACTORS Revenue by Product Group Gross margins by Product Group (RMB ’000) 2014 2013 Change (%) 2014 2013 Change Footwear 1,554,280 1,521,032 +2.2 Footwear 38.6% 41.0% -2.4 p.p. Apparel 1,753,929 1,575,784 +11.3 Apparel 43.0%

  16. Slide 16: Operating costs are higher due to higher rack subsidies and new initiatives

    OPERATING COSTS ARE HIGHER DUE TO HIGHER RACK SUBSIDIES AND COSTS OF NEW INITIATIVES Selling and Distribution Costs Administrative Costs RMB mn 2014 2013 Change (%) RMB mn 2014 2013 Change (%) A&P (2) 438.9 405.2 +8.3 R&D (4) 95.7 85.8 +11.6 Rack 214.1 170.4 +25.6 Depreciation 32.5 31.2 +4.1 subsidi

  17. Slide 17: Consolidated Balance Sheet

    CONSOLIDATED BALANCE SHEET (RMB ‘000) (人民币千元) 2014 2013 Non-current assets 非流动资产 Fixed assets 固定资产 1,146,126 1,072,229 Other financial asset 其他金融资产 17,550 17,550 Deposits and prepayments 按金及预付款项 96,691 121,148 Deferred tax assets 递延税项资产 49,971 92,256 1,310,338 1,303,183 Current assets 流动资产 Inventori

  18. Slide 18: Improved credit control justify a write-back of RMB111 mil in impairment provision

    IMPROVED CREDIT CONTROL JUSTIFY A WRITE-BACK OF RMB111 MIL IN IMPAIRMENT PROVISION RMB ‘000 At 31 Dec 2014 At 31 Dec 2013  The Group’s impairment provision policy of providing 50% of all debts over 180 days from invoicing remains unchanged. Trade debtors 1,604,395 2,022,705  62% of trade debtors a

  19. Slide 19: Group remains financially strong but cash is mainly in China

    GROUP REMAINS FINANCIALLY STRONG BUT CASH IS MAINLY IN CHINA RMB ‘000 Effective Interest Rate (%) At 31 Dec 2014 At 31 Dec 2013 2014 2013 Pledged bank deposits 175,895 37,900 0.39 - 6.1 0.50 - 3.30 Deposits with bank with maturities > 3mths 1,800,000 321,747 3.30 - 3.80 1.50 - 2.86 Cash and cash equ

  20. Slide 20: Capital and financial risk management

    CAPITAL AND FINANCIAL RISK MANAGEMENT  The Group actively and regularly reviews and manages its capital structure to maintain a balance between the higher shareholder returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital structur

  21. Slide 21: Outlook and Strategies for 2015

    Outlook and Strategies for 2015 2015年展望及策略

  22. Slide 22: A positive outlook as fundamentals remain strong

    A POSITIVE OUTLOOK AS FUNDAMENTALS REMAIN STRONG 展望正面 基本因素维持穩健  Industry fundamentals have never been stronger with government reforms on sport kicking in as urbanization and income levels continue to rise. 在城市化和收入水平继续改善下，政府对运动行业的改革开始运行， 行业基本面稳 Outlook 健。  Kidswear still shows strong growth potent

  23. Slide 23: Q&A

    Q&A 问答环节 23

361 Degrees International — FY2014 Earnings Presentation on 6ix