Haier Smart Home Co., Ltd. Class A · SSE:600690
Haier Smart Home Co., Ltd. Class A — 9M 2020 Earnings Presentation
26 slides from Haier Smart Home Co., Ltd. Class A's earnings presentation, 2020
Slide 1: Haier Smart Home Co., Ltd
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Slide 2: Disclaimer
Disclaimer This presentation comprises certain written materials/slides prepared by Haier Smart Home Co., Ltd. (the "Company"). This presentation does not constitute or form part of any advertisement or marketing material, any offer or invitation to sell or issue, any offer or inducement or invitati
Slide 3: Shareholding Structure
Shareholding Structure Hong Kong Securities D-share Haier Group Others Clearing Company shareholders 40.03% 10.73% 4.12% 45.12% Haier Smart Home 600690 CH 45.87% Haier Electronics 1169 HK Air Kitchen Equipment Home Water Channel Refrigeration Water heater conditioner appliances components laundry pu
Slide 4: Table of Contents
Table of Contents 9M20 Performance Review 1 Investment Highlights 9 Haier Smart Home 9M20
Slide 5: 9M20 Earnings Review
9M20 Earnings Review RMB mn 1Q20 1H20 9M20 1Q20 1H20 9M20 3.0% 154,412 95,728 43,141 -11.1% -4.0% Revenue Revenue growth GP GPM OP OPM 28.0% 28.0% 5.2% 5.0% 27.4% 4.0% 11,840 14,954 16,487 1,712 2,732 2,918 1Q20 1H20 9M20 1Q20 1H20 9M20 4.1% 6,301 2.9% 2.5% 2,781 1,070 Net profit Net margin Haier Sm
Slide 6: Quarterly Earnings Review
Quarterly Earnings Review RMB mn 1Q20 2Q20 3Q20 1Q20 2Q20 3Q20 17.0% 52,587 58,684 2.0% 43,141 -11.1% Revenue Revenue growth GP GPM OP OPM 28.4% 28.1% 4.8% 4.6% 27.4% 4.0% 11,840 26,794 43,281 1,712 4,443 7,361 1Q20 2Q20 3Q20 1Q20 1H20 9M20 3,520 6.0% 1,710 2.5% 3.3% 1,070 Net profit Net margin Haie
Slide 7: Global Revenue by Region
Global Revenue by Region Revenue by region Africa 0.6% Japan FY19 9M20 3.5% FY18 Others Asean 11.7% 4.6% Overseas Europe Overseas China 47% 13.1% China 41% 53% 59% America 56.1% South Asia 4.9% ANZ 5.5% Revenue growth by region RMB bn 20.0% 5.0% -10.0% -25.0% 9M19 North ANZ South Asia Europe Asean J
Slide 8: China Revenue by Category
China Revenue by Category Market share Online Offline Change in pct pt 2.3 35.1 Refrigerator 39.3 2.2 Change in pct pt 4.1 38.6 Washing machine 39.3 3 2.5 11.2 Air conditioner 14.8 2.2 -0.3 5.7 Kitchen appliance 6.1 0.9 Source: CMM 2.8 26.4 Water heater 23.7 3.5 Revenue growth 9M20 Revenue growth 3Q
Slide 9: China Revenue by Brand
China Revenue by Brand China revenue by brand Revenue growth 30.0% Haier 15.0% Casarte Leader 0.0% Haier Casarte Leader -15.0% Casarte revenue by category 12.4% Refrigerator 9.0% 3.0% 13.7% 42.0% 12.2% Washing machine 9M19 13.3% 14.0% 5.6% AC 7.1% 9M20 6.5% Kitchen appliance 32.0% 11.2% 5.2% Water h
Slide 10: Income statement
Income statement 9M20 Change 3Q20 Change RMB mn Revenue 154,412 3.0% 58,684 17% Gross profit Margin 28.0% -0.8 ppt 28.1% -0.3 ppt Selling expense ratio 15.1% -0.1ppt 15.1% -1 ppt General & admin expense ratio 7.8% 0.2 ppt 7.8% -0.3 ppt R&D expense ratio 3.2% 0.3 ppt 3.5 0.2 ppt Operating profit 7,36
Slide 11: Cash Flow
Cash Flow Cash flow Working capital management RMB mm days 8,476 5,711 CCC 8.3 Operating cashflow 9M19 9M20 7.8 9M19 9M20 -2,695 Investing 9M19 9M20 -8,977 cashflow 9M19 9M20 5,750 Financing cashflow -1,249 Haier Smart Home 9M20 7
Slide 12: Optimizing Leverage
Optimizing Leverage Borrowing Debt/Asset RMB bn 43.9 71.3% 36.7 35.7 36.2 69.5% 33.1 66.8% 65.3% 65.8% 2016 2017 2018 2019 9M20 2016 2017 2018 2019 9M20 Debt/EBITDA ROE 22.9 20.4 18.6 3.2 13.4 15.0 2.8 2.2 2.2 1.7 2016 2017 2018 2019 9M20 2016 2017 2018 2019 9M20 Haier Smart Home 9M20 8
Slide 13: Investment Highlights
9M20 Performance Review 1 Investment Highlights 9 Appendix 19 Haier Smart Home 9M20
Slide 14: Well-positioned Globally to Sustain Leadership in the Future
Well-positioned Globally to Sustain Leadership in the Future Existing Advantages Existing Strategic Advantages Global Expansion 1 China 2 Overseas Appliance Leader Market and Dominance in Market Achieving Further High-end Segment Growth via Localized Operation in Both Developed and Strategic Emergin
Slide 15: Steady Market Share Expansion and Performance
China Market Steady Market Share Expansion and Performance Increasing Market Share1 Washing Water Kitchen Domestic Air- Refrigerators Heaters Machines Appliances2 conditioners 28.4% 36.7% 36.3% 20.5% 12.2% 15.3% 5.2% 10.5% 27.6% 2.7% Online 2016 2019 2016 2019 2016 2019 2016 2019 2016 2019 34.5% 36.
Slide 16: Casarte — Leader in High-end Market
China Market Casarte — Leader in High-end Market Leader in High-end Market Rapid Growth Market Share of Market Share of Market Share of 2019 2017-2019 Growth of 2017-2019 Refrigerators Washing Machines Air-conditioners Casarte’s Revenue Casarte’s Revenue as Casarte’s Revenue Priced over Priced over
Slide 17: Continuous Upgrade of Smart Home Solutions
China Market Continuous Upgrade of Smart Home Solutions Leveraging on our competitive advantage in innovative and diversified products, HSH designs, implements and provides solutions of full- suite smart home products With integrated packages of appliances and interior design, HSH’s business expands
Slide 18: Revitalizing Air-conditioner Business
China Market Revitalizing Air-conditioner Business Expand Presence Enhance Efficiency 1) Increase distribution competitiveness through further 1) Streamline SKUs and identify best sellers penetration in villages 2) Reduce cost by commodities hedging and 2) Break through e-commerce and lower tier mar
Slide 19: Market Share Expansion and Growth in Profitability Overseas
Overseas Market Market Share Expansion and Growth in Profitability Overseas Market Share1 1 2 2 3 5 market share and +0.5% +2.1% ranking in global +0.6% N Ranking by Retail Volume 2019 1 +0.7% major home appliance +4.8% industry 2019 1 22.0% Market Share by Retail Volume 18.6% 13.4% 2017 8.4% 7.2% I
Slide 20: Well-recognized Brand Portfolio Serving Diversified Users
Overseas Market Well-recognized Brand Portfolio Serving Diversified Users Overseas strategy of proprietary brands Global brand portfolio with comprehensive coverage Self-grown Brands Integrated Brands (Outdoor kitchen appliances) • Ranked first in Australia & New Zealand’s major household appliance
Slide 21: Successful M&A and Integration
Overseas Market Successful M&A and Integration A Series of Success Acquired Sanyo’s white goods business in 2011, GEA in 2016, FPA in 2018, and Candy in 2019 Promote Integration 1 Rendanheyi model injects vitality 2 Global platform supports growth Thriving GEA Initiatives Performance1 R&D Product 10
Slide 22: Resource and Experience Sharing on a Unified Platform
Global Collaboration Resource and Experience Sharing on a Unified Platform R&D Product Development • Co-develop high-end products • Leveraging on each other’s competitive strength • R&D Collaboration in universal modules and • Regional collaboration among products technology • Share of Patents Appli
Slide 23: GEA's Case — Capture Market Share with Successful Launch of New Front-loader
Global Collaboration GEA’s Case —Capture Market Share with Successful Launch of New Front-loader Qingdao, China Primary Hydraulic Units and Packaging Manufacturing Location Nuremberg, Germany Target Market Algorithm Louisville, United States Controls system Kyoto, Japan lndustrial design Auckland, N
Slide 24: User-oriented Global Distribution Network
Efficiency Enhancement User-oriented Global Distribution Network Direct interaction with Users China market: continuous efficiency reform Digital distribution network with extensive Constantly promoting channel integration and efficiency enhancement town level coverage “Integrated warehouse and dist
Slide 25: Embark upon the digital transformation
Efficiency Enhancement Embark upon the digital transformation Building A Digitalised Enterprise of technologies From operation control to full value chain vitalization From process automation to business intelligence Smart Home HOPE Cloud Brain” System Global collaboration of AI+IoT system that faci
Slide 26: Thank You
Thank You