361 Degrees International Ltd. · HKEX:1361
361 Degrees International — FY2022 Earnings Presentation
36 slides from 361 Degrees International's earnings presentation, Mar 16, 2023
Slide 1: 2022 Annual Results
361 Degrees International Limited Stock Code 1361.HK March 2023 2022 Annual Results
Slide 2: Content
Content 1 Financial Review 2 Business Review 3 Brand Building 4 Appendix 5 Q&A Session
Slide 3: Disclaimer
Disclaimer These presentation is prepared by 361 Degrees International Limited (the “Company”) solely for the use during its presentation held in connection with its annual results for the year ended 31 December 2022 and may not be reproduced or redistributed. In particular, these presentation slide
Slide 4: Strategic Determination to Win the Future
Strategic Determination to Win the Future 4
Slide 5: Financial Review
Financial Review “Flying Flame II” Professional Marathon Running Shoes
Slide 6: Kid's and E-commerce Businesses Show Huge Potentials
Both Revenue and Net Profit Maintain Growth amidst Adversity Kid’s and E-commerce Businesses Show Huge Potentials Revenue from Net Profit Revenue from Revenue E-commerce Attributable to Equity Kids’ Business Business Shareholders 17.3% 30.3% 37.3% 24.2% RMB 6.96 bn RMB 1.44 bn RMB 1.69 bn RMB 747 mn
Slide 7: Financial Overview
Financial Overview For the Year ended 31 December RMB mn 2022 2021 Change Revenue 6,960.8 5,933.5 +17.3% Gross Profit 2,820.6 2,472.4 +14.1% Operating profit 1,074.1 1,083.1 -0.8% Profit attributable to equity shareholders 747.1 601.7 +24.2% Basic EPS (RMB cents) 36.1 29.1 +24.1% Profitability Ratio
Slide 8: Revenue Analysis
Revenue Analysis Revenue Revenue by Products RMB mn % 6,960.8 1.1% 1.3% 1.7% 121.8 18.2% 18.7% 20.7% 5,933.5 1,442.2 78.7 1.0% 1.1% 5,127.0 1,106.8 95.7 1.4% 58.7 932.3 68.8 39.0% 36.2% 52.8 2,447.5 35.2% 2,147.0 2,001.8 2,853.6 40.7% 42.7% 41.0% 2,532.1 2,081.3 2020 2021 2022 2020 2021 2022 Footwea
Slide 9: Gross Profit and Gross Profit Margin Analysis
Gross Profit and Gross Profit Margin Analysis GPM of Footwear Product Gross Profit and Gross Profit Margin 43.1% 47.0% RMB mn / % 41.2% 45.0% 43.0% 41.7% 45.0% 41.0% 38.6% 40.5% 3,500.0 39.0% 37.9% 37.0% 40.0% 35.0% 33.0% 2,820.6 3,000.0 3.1 35.0% 2020 2021 2022 2,472.4 10.0 590.2 GPM of Apparel Pro
Slide 10: Major Operating Expenses Analysis
Major Operating Expenses Analysis RMB mn 11.1% 11.4% 9.6% 9.8% 10.2% 9.8% 4.0% 4.2% 3.8% 2020 2021 2022 Advertising & promotion expenses Staff Cost R&D Selling and Distribution Expenses Administrative Expenses For the Year ended 31 December For the Year ended 31 December RMB mn 2022 2021 Change RMB
Slide 11: Operating Profit and Net Profit Analysis
Operating Profit and Net Profit Analysis Operating Profit & Income Tax Expenses & Profit Attributable to Equity Operating Profit Margin Effective Tax Rate Shareholders & Margin of Profit Attributable to Equity Shareholders RMB mn / % RMB mn / % RMB mn / % 18.3% 10.7% 15.4% 500.0 35.0% 16.0% 1,400.0
Slide 12: Balance Sheet Highlights
Balance Sheet Highlights RMB mn As at 31 December 2022 As at 31 December 2021 Change Current assets 11,283.8 10,083.3 +11.9% Current liabilities 2,905.5 2,668.0 +8.9% Net current assets 8,378.3 7,415.3 +13.0% Equity attributable to owners of the Company 7,943.5 7,116.8 +11.6% +0.5 RMB Net asset valu
Slide 13: Working Capital Cycle Analysis
Working Capital Cycle Analysis Working Capital Turnover Days 149 147 Inventories 122 121 Trade & bills receivables 114 117 Trade and bills payables 87 91 Overall 2021 2022 Trade and Bills Receivables Ageing Analysis As at 31 December As at 31 December RMB ‘000 2022 2021 2022 % 2021 % Trade Receivabl
Slide 14: Liquidity Analysis
Liquidity Analysis Cash Flow For the Year ended 31 December RMB mn 2022 2021 Profit before income tax 1,064.7 1,045.1 Adjustment of non-cash profit and loss and items from non-operating activities 221.3 96.6 Change in inventories (286.6) (119.5) Change in trade and bills receivables (589.8) (384.9)
Slide 15: Capital Strength
Capital Strength Financial Resources As at 31 December RMB ‘000 2022 2021 Pledged bank deposits 24,138 52,170 Deposits with bank with maturities > 3 months 2,000,000 2,000,000 Cash and cash equivalents 3,860,442 3,339,010 Total cash 5,884,580 5,391,180 Bank loans 292,282 207,837 Total borrowings 292
Slide 16: Business Review
Business Review Aaron Gordon International basketball superstar
Slide 17: 361 Positioning
361 Positioning Professional—— Technological innovation accelerates product upgrades Youthful—— Excellent design attracts young consumers Internationalised—— Marketing in global markets to boost brand power Focus on product professional performance and the integration of fashionable trend concepts A
Slide 18: Sports Goods for Running
Sports Goods for Running Product matrix that tailored to the specific needs of runners at all levels • Fully utilizing the Group's core technology, creating frequently upgraded product matrix that differentiated with a wide-variety of choices that tailors to the needs of runners at all levels • Prof
Slide 19: Sports Goods for Basketball
Sports Goods for Basketball Combining professionalism and trendiness to attract young consumers • Sign international basketball superstars Aaron GORDON and Spencer DINWIDDIE, as well as domestic basketball superstar Kyranbek MAKAN as brand advocators to enrich the basketball lineup • Leveraging R&D
Slide 20: Sports Goods for Comprehensive Training and Lifestyle
Sports Goods for Comprehensive Training and Lifestyle Cater to differentiated consumer needs and explore the potential market for women’s fitness • Present the product functionality and trendy design to meet consumers' composite needs for professional sports functionality and fashion • World karate
Slide 21: 361 Sales Overview
361 Sales Overview Global Sales Network • The Group has 6,672 points-of-sale worldwide, of which 5,480 are located in mainland China, increased by 210 compared to the end of 2021 Retail Performance • The Group performed well in retail sales throughout the year, with high double-digit growth in Q1, l
Slide 22: Global Sales Network
361 Global Sales Network City Distribution • 1st and 2nd tier cities accounted for 23.7%, and 3rd tier and below cities accounted 23.7 for 76.3% City 1st and 2nd-tier cities 1,301 Channel Structure Distribution 3rd –tier and lower cities: 4,179 • Mall and department stores accounted for 31.4%, while
Slide 23: 361 Kids
361 Kids Positioned as a “Youth’s Sports Expert” Rooted on “One Degree Beyond” Aligned with the brand statement “Chasing Your Love!” Dedicated to providing excellent sports apparels for “Children and Adolescents” 23
Slide 24: Competitive Edges of Kids
Competitive Edges of 361 Kids Adopt diversified growth strategy to further consolidate its leading position in the kids’ sportswear market Reliable partners with high-quality sportswear • Appointed as the official partner of China National Rope Skipping Team, Guoan, and Shandong Luneng Taishan Footb
Slide 25: Kids Sales Overview
361 Kids Sales Overview In 2022, revenue of 361 Kids reached RMB 1,442.2 million, accounted for 20.7% of the Group's total revenue, representing a YoY increase of 30.3% Sales Network Sales Performance • The Group has 2,288 points-of-sale for 361º Kids business, representing a • The annual retail sal
Slide 26: E-commerce
361 E-commerce Optimize the online strategy to promote rapid business growth Business Positioning • E-commerce has multiple functions, not only as an important channel for product sales and distribution, but also as a pioneer in online brand promotion and a medium for interaction with consumers Oper
Slide 27: E-commerce Overview
361 E-commerce Overview In 2022, the revenue from sales of web-exclusive products from the e-commerce platform amounted to RMB1,685.4 million, accounting for 24.2% of the Group's total revenue, representing a YoY growth of 37.3% Product and Sales Channel • The Group mainly adopts a direct sales mode
Slide 28: Brand Building
Brand Building Spencer DINWIDDIE International Basketball Superstar
Slide 29: Brand Resources
Brand Resources In 2022, A&P expenses accounted for 11.4% of the Group’s total revenue Large-scale Sports Events • Large-scale comprehensive games: the 19th Asian Games in Hangzhou 2022 • Triathlon events: THE ROC Triathlon • Road race events: Paris Star 10km Race, Doncaster 10k Race, Palma Marathon
Slide 30: Hangzhou Asian Games — One Degree Beyond Chinese Passion
Hangzhou Asian Games — “One Degree Beyond Chinese Passion” Adhering to the sports spirit, 361 has contributed as the sponsor to the Asian Games for four consecutive times • After sponsoring the Guangzhou Asian Games in 2010, the Incheon Asian Games in 2014, and the Jakarta Asian Games in 2018, 361 i
Slide 31: Brand Owned Running Event — 3#Track
Brand Owned Running Event — 3#Track Igniting the passion of runners with proprietary events and supporting athletic performance breakthroughs with professional products • “3#Track” was founded in April 2021, which expands its online communities through offline events and focuses on core cities throu
Slide 32: Brand Titled Basketball Event — Light Up
Brand Titled Basketball Event — “Light Up” Organized brand titled basketball events to ignite the passion among basketball enthusiasts • Since its establishment in August 2020, “Light Up” has sparked waves of passion among basketball enthusiasts • The event continues to evolve, expanding its series
Slide 33: Appendix
GONG Li Karate World Champion Appendix
Slide 34: R&D Innovation
R&D Innovation In 2022, R&D expenditure accounted for 3.8% of the Group’s total revenue • As of December 31, 2022, the Group has obtained 295 patents, has 776 R&D technicians, and has been awarded the titles of national advanced technology enterprise, national green factory, exemplary unit of the na
Slide 35: Industry Outlook
Industry Outlook With supportive national policies and the “China-Chic” trend , the domestic sports product industry in China is expected to maintain a promising prospect Market size of China’s sportswear market in 2017-2027 The State Council issued the “Outline of the Strategic Plan for Expanding D
Slide 36: Q&A
Q&A
361 Degrees International — FY2022 Earnings Presentation on 6ix