Gome Retail Holdings Limited · HKEX:493
Gome Retail — GOME Electrical Appliances Holding — Q3 2010 Earnings Presentation
18 slides from Gome Retail's earnings presentation, Nov 15, 2010
Slide 1: 2010 First Nine Months Results Announcement
2010 First Nine Months Results Announcement November 15 2010
Slide 2: Disclaimer
Disclaimer 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
Slide 3: Table of Contents
Table of Contents 2010 First Nine Months Business Overview & Analysis Appendix 3Q 2010 Results Announcement | Page 3
Slide 4: First Nine Months Business Performance Review
First Nine Months Business Performance Review Industry Trends The macro economic environment in 10 Q1 continued the recovering trend of 09 Q4, and good consumer sentiment contributed to the overall retail industry performance. Following further recovery of the macro economy and consumer sentimen
Slide 5: Income Statement Summary
Income Statement Summary RMB Million 3Q 2009 3Q 2010 YOY Change % Revenue 31,430 37,270 18.6% Consolidated gross profit 5,289 6,556 24.0% Operational profit 1,158 1,868 61.3% Profit before tax 1,239 1,862 50.3% Net Profit Attributable to Owners of the Parent 965 1,440 49.2% Consolidated gross profit
Slide 6: Income Statement Summary-Continued
Income Statement Summary-Continued RMB Million 2009 Q4 2010 Q1 2010 Q2 2010 Q3 Revenue 11,238 11,782 13,092 12,397 Consolidated gross profit 2,102 1,967 2,270 2,318 Operating expenses 1,556 1,435 1,553 1,699 Operating profit 546 532 717 619 Operating profit margin 4.9% 4.5% 5.5% 5.0% 3Q 2010 Results
Slide 7: Consolidated Gross Profit Margin and Other Income Analysis
Consolidated Gross Profit Margin and Other Income Analysis As % of Gross Profit RMB million 16.8% 17.6% Other Income Items & Other Income and Gain 5,289 6,556 Management fee from 3.4% non-listed Gome Group 9.8% 11.7% Air con installation fee 1.7% 31.5% 26.2% Gov’t grant 1.3% other income Subleasing
Slide 8: Cost Analysis
Cost Analysis As % of Revenue 3Q 2009 3Q 2010 Change Selling & Distribution 10.4% 10.0% (0.4) pct pt Rent 4.8% 3.9% (0.9) pct pt Sales Salaries 2.5% 2.2% (0.3) pct pt Other S&D 3.1% 3.9% 0.8 pct pt Administrative 1.7% 1.6% (0.1) pct pt Equity-Settled Share Option Expense 0.1% 0.2% 0.1pct pt Other 0.
Slide 9: Continued Double Digit SSS and Strong Sales Per Sqm
Continued Double Digit SSS and Strong Sales Per Sqm Same Store Sales (YOY) Sales Per Square Meter RMB/m2 1 0.99 0.98 26.8% 30.0% 0.97 0.96 0.95 0.94 0.93 25.7% 0.92 0.91 0.9 0.89 0.88 23.9% 25.0% 0.87 0.86 0.85 0.84 0.83 0.82 0.81 0.8 0.79 0.78 0.77 0.76 0.75 20.0% 0.74 0.73 0.72 0.71 0.7 0.69 0.68
Slide 10: Appendix
Appendix 3Q 2010 Results Announcement | Page 10
Slide 11: Operational Scale
Operational Scale Number of Stores Sales Area 10,000 ㎡ Average Sales Per Store Sales Per Square Meter RMB 10,000 RMB 1,780 1,675 1,435 1,441 1,627 1,166 1,338 4,418 4,809 4,582 3,183 3,658 3,799 3,993 09Q1 09Q2 09Q3 09Q4 10Q1 10Q2 10Q3 09Q1 09Q2 09Q3 09Q4 10Q1 10Q2 10Q3 3Q 2010 Results Announcement
Slide 12: Operational Capacity
Operational Capacity Revenue Growth Consolidated Gross Profit Margin and RMB billion Operating Profit Margin revenue YOY 15 25% 13.1 12.4 consolidated gross profit margin 11.8 12 11.0 11.2 20% 30.0% operating profit margin 9 15% 17.5% 18.7% 16.7% 17.3% 18.7% 20.0% 6 10% 10.0% 4.9% 5.5% 4.4% 4.5% 5.0
Slide 13: Revenue Mix by Region Analysis
Revenue Mix by Region Analysis Shanghai 14% Beijing 14% Guangzhou 11% 10% 37% 38% Shenzhen 11% Tianjin 11% Fuzhou 6% 10% 10% Chengdu 6% 4% 7% 5% 6% Others 3Q 2009 3Q 2010 Total: RMB 31.4 billion Total: RMB 37.3 billion 3Q 2010 Results Announcement | Page 13
Slide 14: Revenue Mix by Product Analysis
Revenue Mix by Product Analysis AV Digital Digital 7% Computer 7% Computer Air Con 6% AV 6% AV Small Small 30% 30% Ref&Wash Appliances Appliances 10% 11% Telecom Small Appliances Telecom Telecom 15% 15% Computer Air Con Air Con 15% Ref&Wash 14% Digital Ref&Wash 17% 17% 3Q 2009 3Q 2010 Total: RMB 31.
Slide 15: Gross Profit Margin by Product
Gross Profit Margin by Product 3Q 2009 3Q 2010 15.0% 13.7% 13.7% 11.8% 11.3% 10.8% 10.7% 10.0% 9.3% 10.0% 9.5% 9.7% 10.0% 7.9% 6.5% 6.3% 5.0% 0.0% AV air con ref&washing telecom small computer digital appliances 3Q 2010 Results Announcement | Page 15
Slide 16: Stable Supplier Relationship
Stable Supplier Relationship Top 5 suppliers' contribution to revenue for the first 9 months 2009 32.9% 9.4% 7.8% 5.6% 5.3% 4.8% Haier Samsung Midea Nokia Sharp Total Top 5 Top 5 suppliers' contribution to revenue for the first 9 months 2010 33.0% 10.2% 7.9% 6.1% 4.5% 4.3% Haier Samsung Midea Nokia
Slide 17: Coverage of Store Network
Coverage of Store Network Shaanxi As of 30th Sep 2010 Group Gome China Paradise Fengxing Flagship stores 82 65 17 0 Standard stores (including Supermarket stores) 681 570 111 0 Specialty stores 24 3 1 20 Total: 787 638 129 20 Tier-1 Market 506 387 101 18 Tier-2 Market 281 251 28 2 Total: 787 638 129
Slide 18: Thank You
Thank You 3Q 2010 Results Announcement | Page 18 The Ending Page
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