Pou Chen Corporation · TWSE:9904
Pou Chen — Investor Presentation (November 2023)
23 slides from Pou Chen's investor presentation, November 2023
Slide 1: November 2023
November 2023 https: //www.pouchen.com E-mail: ir@pouchen.com PROFESSIONALISM DEDICATION INNOVATION SERVICE
Slide 2: Disclaimer
Disclaimer Pou Chen has taken every reasonable care in preparing this presentation. However, please be reminded that the information, materials, opinions and statements contained or referred to in this presentation are all provided on an "as is" basis. None of the aforesaid information, materials, o
Slide 3: Table of Contents
Table of Contents 01 Pou Chen’s Profile P. 3 02 Business Overview P. 5 03 Footwear Business – Yue Yuen P. 7 04 Retail Business – Pou Sheng P. 11 05 Financial Highlights P. 15 2
Slide 4: Pou Chen's Profile
Pou Chen’s Profile To benefit healthy lives by providing the most valuable solutions in the sports industry and beyond. • Founded in 1969; listed on the TWSE in 1990 • Paid in Capital: NT$29,468 mn • Market Cap.: NT$84,425 mn (@NT$28.65 as of 2023/09/28) • Revenue: NT$185,758 mn (9M2023 Consolidated
Slide 5: Group Structure
Group Structure 寶成工業 Pou Chen Corp. (9904.tw) Footwear Retail Others 51.11% (31.97%)(1) Real Estate Yue Yuen Pou Sheng Development (00551.hk) (03813.hk) Shoes Retail Sales network Hotel Operation Upstream Business Brand Licensee Retail via Pou Sheng(2) (1) Pou Chen through its 51.11% owned subsidiar
Slide 6: Business Overview
Business Overview Segment Revenue Pou Chen FY2020 FY2021 FY2022 9M2022 9M2023 YoY (Consolidated) (NT$mn; %) (NT$mn; %) (NT$mn; %) (NT$mn; %) (NT$mn; %) (%) Footwear 139,875 56.0% 137,660 57.4% 184,653 69.0% 140,446 68.6% 117,368 63.2% -16.4% Retail 109,361 43.7% 101,485 42.3% 81,993 30.7% 63,529 31.
Slide 7: Business Overview
Business Overview Pou Chen’s 10M2023 unaudited consolidated sales decreased Y-o-Y by 9.5% to NT$206.4 bn. Revenue – Footwear Revenue - Retail (NT$mn) (NT$mn) 184,653 139,875 137,660 140,446 109,361 117,368 101,485 81,993 63,529 67,695 2020 2021 2022 9M2022 9M2023 2020 2021 2022 9M2022 9M2023 Revenue
Slide 8: Footwear Business – Yue Yuen
Footwear Business – Yue Yuen A global leader in the manufacture of athletic, athleisure, casual and outdoor footwear Diversified portfolio of brand customers and production sites Responsiveness, flexibility, innovation, design and development capabilities, and superior quality Pairage Country
Slide 9: Yue Yuen – Financial Highlights
Yue Yuen – Financial Highlights Product Category FY2020 FY2021 FY2022 9M2022 9M2023 YoY (US$mn; %) (US$mn; %) (US$mn; %) (US$mn; %) (US$mn; %) (%) Shoes(1) 4,373 51.8% 4,451 52.2% 5,707 63.6% 4,389 63.0% 3,495 58.4% -20.4% Soles, Components, Others 363 4.3% 463 5.4% 496 5.5% 404 5.8% 298 5.0% -26.2%
Slide 10: Yue Yuen – Financial Highlights
Yue Yuen – Financial Highlights Yue Yuen’s 10M2023 unaudited sales decreased Y-o-Y by 14.1% to US$6.6 bn. Revenue Gross Margin (US$mn) (US$mn) 24.0% 23.8% 23.8% 23.6% 21.7% 8,445 8,533 8,970 6,972 5,987 1,831 2,048 2,137 1,658 1,410 2020 2021 2022 9M2022 9M2023 2020 2021 2022 9M2022 9M2023 Net Incom
Slide 11: Footwear Business – Gross Margin Trend
Footwear Business – Gross Margin Trend 20.2 20.3 19.7 19.2 18.7 18.9 19.2 19.3 18.2 17.9 18.5 18.2 18.2 18.3 17.1 17.8 17.9 15.7 16.0 16.8 12.7 11.7 6.0 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 FY2018 FY2019 FY2020 FY2021 FY20
Slide 12: Retail Business – Pou Sheng
Retail Business – Pou Sheng One of the largest retailers and sports services providers for world renowned sportswear brands in the Greater China Region Channel Mix: Brick & Mortar Retail 74%; Omni-Channel 26% (9M2023 Pou Sheng Revenue) Brick & Mortar Retail – A critical & irreplaceable sales t
Slide 13: Pou Sheng – Financial Highlights
Pou Sheng – Financial Highlights Financial Highlights FY2020 FY2021 FY2022 9M2022 9M2023 YoY (RMB mn; %) (RMB mn; %) (RMB mn; %) (RMB mn; %) (RMB mn; %) (%) Revenue 25,611 23,350 18,638 14,394 15,444 +7.3% Gross Profit 7,826 8,299 6,688 5,187 5,108 -1.5% Gross Margin 30.6% 35.5% 35.9% 36.0% 33.1% -2
Slide 14: Pou Sheng – Financial Highlights
Pou Sheng – Financial Highlights Pou Sheng’s 10M2023 unaudited sales increased Y-o-Y by 6.1% to RMB17.1 bn (US$2.4 bn). Revenue Operating Margin (RMB mn) (RMB mn) 25,611 4.0% 23,350 3.3% 18,638 2.6% 2.4% 14,394 15,444 2.2% 661 928 415 343 516 2020 2021 2022 9M2022 9M2023 2020 2021 2022 9M2022 9M2023
Slide 15: Pou Sheng – Operating Margin Trend
Pou Sheng – Operating Margin Trend 7.1 7.2 6.2 5.7 4.9 5.4 5.2 4.5 3.6 3.5 3.0 2.7 4.6 4.9 3.0 3.5 3.1 1.3 1.7 1.0 0.3 -0.9 -1.3 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 FY2018 FY2019 FY2020 FY2021 FY2022 9M2023 4.3% 5.4% 2.6%
Slide 16: Financial Highlights – Pou Chen (Consolidated)
Financial Highlights – Pou Chen (Consolidated) Segment Revenue Segment Income(1) Footwear Retail Other Footwear Retail Other 0.3% 0.3% 0.3% 0.3% 0.4% 2.7% 2.6% 2.0% 1.9% 2.3% 100% 100% 13.4% 14.0% 19.3% 30.7% 31.1% 27.1% 29.8% 80% 36.4% 80% 43.7% 42.3% 60% 60% 40% 40% 84.6% 84.1% 78.4% 69.0% 68.6% 7
Slide 17: Financial Highlights – Pou Chen (Consolidated)
Financial Highlights – Pou Chen (Consolidated) (NT$mn) FY2020 FY2021 FY2022 Revenue 249,954 239,884 267,497 Gross Profit 54,751 58,223 64,606 Gross Margin 21.9% 24.3% 24.2% Operating Expenses 56,862 55,747 54,010 Operating Income (Loss) (2,111) 2,476 10,596 Operating Margin (0.8%) 1.0% 4.0% Non-oper
Slide 18: Financial Highlights – Pou Chen (Consolidated)
Financial Highlights – Pou Chen (Consolidated) (NT$mn) 9M2022 9M2023 YoY Revenue 204,577 185,758 -9.2% Gross Profit 49,306 44,399 -10.0% Gross Margin 24.1% 23.9% -0.2 pp Operating Expenses 40,747 39,055 -4.2% Operating Income 8,559 5,344 -37.6% Operating Margin 4.2% 2.9% -1.3 pp Non-operating Income
Slide 19: Financial Highlights – Pou Chen (Consolidated)
Financial Highlights – Pou Chen (Consolidated) Revenue Gross Margin (NT$mn) (NT$mn) 24.3% 24.2% 24.1% 23.9% 249,954 267,497 21.9% 239,884 204,577 185,758 54,751 58,223 64,606 49,306 44,399 2020 2021 2022 9M2022 9M2023 2020 2021 2022 9M2022 9M2023 Net Income(1) Net Margin / EPS (NT$mn) (NT$) 7.5% 6.0
Slide 20: Dividend Policy
Dividend Policy FY2019 FY2020 FY2021 FY2022 Dividend / Per Share - Pou Chen (NT$) 1.25 0.50 1.50 1.30 (Cash 1.25) (Cash 0.50) (Cash 1.50) (Cash 1.30) - Yue Yuen (HK$) 1.10 n/a 0.20 1.10 (Interim 0.40 / Final 0.70) (Final 0.20) (Interim 0.40 / Final 0.70) - Pou Sheng (HK$) n/a n/a 0.016 n/a (Final 0.
Slide 21: Sustainability
Sustainability The World’s Only FLA-Accredited Footwear Manufacturer. Upholding the obligations of FLA’s participating suppliers by actively participating in various projects, supporting relevant industry initiatives, including singing “Responsible Recruitment” jointly promulgated by FLA and America
Slide 22: Growth Strategy
Growth Strategy Irreplaceable Partnership 5 Values 4 Directions Speed 3 Segments Design 2 E2E Platform Flexibility Footwear Equipment OEM/ODM The Most 1 Valuable Innovation Apparel Platform Material Retail Quality Accessories Process Sustainability Unique Strategic Value 21
Slide 23: THANK YOU Q&A
THANK YOU Q&A 22