361 Degrees International Ltd. · HKEX:1361

361 Degrees International — H1 2014 Earnings Presentation

21 slides from 361 Degrees International's earnings presentation, Aug 19, 2014

  1. Slide 1: 361 Degrees International Limited FY2014 Interim Results

    361 Degrees International Limited FY2014 Interim Results August 2014 361度国际有限公司 2014年度中期业绩 2014年8月

  2. Slide 2: Disclaimer

    DISCLAIMER 免责声明 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 sl

  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 2014 and beyond 2014年及往后的展望及策略 Q&A 问答环节 3

  4. Slide 4: Operational Highlights

    Operational Highlights 营运亮点

  5. Slide 5: Sportswear Industry Recovers in 2014

    SPORTSWEAR INDUSTRY RECOVERS IN 2014 体育用品行业于2014年复苏 2013 2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 SSSG(1) -1.5% -0.8% Flat / 持平 1.5% 1.8% 2.8% TBA TBA 同店销售增长(1) Channel Inventories(2) 4.3x 4.4x 4.4x 4.2x 4.2x 4.1x TBA TBA 渠道存货比(2) Trade Fair Orders y-o-y -23% -23% -19% -17% -8% -8% -7% +8% 订货会订单 Distributors’ D

  6. Slide 6: New Store Strategy Ensures Retail Profitability

    NEW STORE STRATEGY ENSURES RETAIL PROFITABILITY 零售店铺策略确保盈利能力  Most retailers can now operate  大部分的零售商能有利润地经营， No. of Franchised Outlets profitably because: 因为： 特许零售店数目 Better pricing structure 较好的定价架构 折扣减低 Northern Region Less discounting at retail level 北部 Rack subsidy program 上架津贴计划 2,798 Higher

  7. Slide 7: The 361° Brand Prominent with Nanjing Youth Olympics and Incheon Asian Games

    THE 361°BRAND PROMINENT WITH NANJING YOUTH OLYMPICS AND INCHEON 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 Sun Yang Kevin Love 孙杨 凯文·乐福 Jike Junyi 吉克隽逸 Stephon Marbury 斯蒂芬·马布里 Jam Hsiao 萧敬腾  361°will gain major exposure in 2014 as 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 2,254 3,611 Cost of Investment 投资成本 RMB 55 mil RMB 800 mil  Both the factories

  9. Slide 9: 361° Kids Continues to Grow in Strength in a Fragmented Market

    361°KIDS CONTINUES TO GROW IN STRENGTH IN A FRAGMENTED MARKET 361度童装业务于分散的市场为强劲的增长动力  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. 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。  At 30 Jun

  10. Slide 10: Recent New Initiatives: One Way JV and Overseas Business

    RECENT NEW INITIATIVES: ONE WAY JV and OVERSEAS BUSINESS 最近的新措施：One Way及海外业务 Overseas Business One Way 海外业务  A joint-venture between 361 Degrees (70%) and One Way  This is an independent business unit comprising seasoned Sport Oy (30%) with licensed rights for Greater China professionals heading u

  11. Slide 11: Financial Highlights

    761 Financial Highlights A He

  12. Slide 12: FY2014 Interim Results: Key Highlights

    FY2014 INTERIM RESULTS: KEY HIGHLIGHTS 2014年中期业绩：财务摘要 For the six months ended 30 June / 截至6月30日止六个月 (RMB mn unless indicated otherwise) (人民币百万元） 2014 2013 Change /变动 (%) Turnover 营业额 2,090.1 1,998.2 +4.6% Operating profit 经营溢利 361.1 306.1 +18.0% Profit attributable to equity shareholders 本公司权益持有人应占

  13. Slide 13: Despite a Weaker Order Book, Revenue Grew Almost 5%

    DESPITE A WEAKER ORDER BOOK, REVENUE GREW ALMOST 5% Revenue by product Gross margins by product For the six months ended 30 June For the six months ended 30 June (RMB ’000) 2014 2013 Change (%) 2014 2013 Change Footwear 834,864 835,192 -0.04% Footwear 35.9% 40.1% -4.2 p.p. Apparel 1,004,334 922,902

  14. Slide 14: Operating Costs Were Tightly Controlled, Down 3%

    OPERATING COSTS WERE TIGHTLY CONTROLLED, DOWN 3% Selling and Distribution Costs Administrative Costs For the six months ended 30 June For the six months ended 30 June RMB mn 2014 2013 Change RMB mn R&D 51.8 48.8 +6.1% 2014 2013 Change Impairment A&P 172.7 196.2 -12.0% losses on -- 18.3 -- trade rece

  15. Slide 15: Consolidated Balance Sheet

    CONSOLIDATED BALANCE SHEET (RMB ‘000) (人民币千元) As at 30 Jun 2014 As at 31 Dec 2013 Non-current assets 非流动资产 Fixed assets 固定资产 1,073,777 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 105,581 121,148 Deferred tax assets 递延税项资产 122,248 92,256 1,319,156 1,303,183 C

  16. Slide 16: Quality of Trade Debtors Has Improved But More Work Still Necessary

    QUALITY OF TRADE DEBTORS HAS IMPROVED BUT MORE WORK STILL NECESSARY RMB ‘000 At 30 Jun 2014 At 31 Dec 2013  Overall credit control improved during Trade debtors 2,094,874 2,022,705 the first half of 2014 with cash Less: Allowance for doubtful debts (191,521) (191,521) collections for the period alm

  17. Slide 17: Group's Net Cash Further Improves Due to Strong Cash Flows

    GROUP’S NET CASH FURTHER IMPROVES DUE TO STRONG CASH FLOWS RMB ‘000 At 30 Jun 2014 At 31 Dec 2013 Pledged bank deposits 73,597 37,900 Term deposits with banks, cash and cash equivalents 3,347,628 2,816,027 3,421,225 2,853,927 Bank loans 15,807 15,898 Convertible bonds 711,319 878,503 Net cash positi

  18. Slide 18: CB Holders Likely to Exercise Redemption Put in April 2015

    CB HOLDERS LIKELY TO EXERCISE REDEMPTION PUT IN APRIL 2015 Liability component Redemption Redemption Conversion Total convertible call option put option option RMB ‘000 bonds At 1 January 2014 767,539 (355) 38,147 73,172 878,503 Finance charges amortized during the period 34,794 -- -- -- 34,794 Inte

  19. Slide 19: Outlook and Strategies for 2014

    Outlook and Strategies for 2014 2014年展望及策略

  20. Slide 20: Worst Is Over and Fundamentals Are Intact

    WORST IS OVER AND FUNDAMENTALS ARE INTACT 最坏时期已过 基本因素维持穩健  There should be improving signs of recovery for the rest of 2014 and beyond  Long-term fundamentals of the industry remain strong with urbanization and rising income levels continuing to drive demand Industry Outlook  Relaxation of One-Ch

  21. Slide 21: Q&A

    Q&A la SAS

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