Gome Retail Holdings Limited · HKEX:493
Gome Retail — Merger or Acquisition (October 2015)
14 slides from Gome Retail's merger presentation, October 2015
Slide 1: Investor Presentation
Investor Presentation October 2015
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 be
Slide 3: Revised Offer Summary
Revised Offer Summary As a result of challenging equity market environment since announcement and after taking investors' valuable feedback into consideration, the Major Shareholder has agreed to decrease the total consideration by 19.3%, from HK$11,268mn to HK$9,095mn, to enhance the attractiveness
Slide 4: Revised Proposal Metrics
Revised Proposal Metrics Original Offer Revised Offer Major Shareholder’s Shareholding 50.5% 49.0% (before exercising warrants) Major Shareholder’s Shareholding 55.3% 54.1% (after exercising warrants) Transaction Consideration:Market 32.4%:67.6% 27.8%:72.2% Capitalization of the Group(1) (2) Target
Slide 5: Pro-forma EPS Accretion Analysis
Pro-forma EPS Accretion Analysis Based on profit attributable to owners of the parent for the 6 months ended 30 June 2015 and 5,500mn Consideration Shares, the Transaction results in EPS accretion of 3.6%(1), representing an increase from 0.5% implied by the original offer Group Target Group Enlarge
Slide 6: Contribution Analysis of Profit Attributable to Owners of the Parent
Contribution Analysis of Profit Attributable to Owners of the Parent (“Profit”) Profit Implied Profit Contribution (RMBmn) Profit After Post-tax Purchasing Service Fee Adjustment Target Group Group 6 months ended 30 Adjusted (1) 328 615 Jun 15 34.8% 65.2% Unadjusted 256 687 Target Last 12 Group Grou
Slide 7: Financial Information of the Target Group
Financial Information of the Target Group (RMBmn) 2013 2014 2014 1H 2015 1H Revenue 19,611 20,992 10,068 10,858 Growth % 12.1% 7.0% n/a 7.8% Gross Profit 3,479 3,438 1,732 1,978 Margin % 17.7% 16.4% 17.2% 18.2% Consolidated Gross Profit(1) 3,889 3,958 1,956 2,202 Margin % 19.8% 18.9% 19.4% 20.3% Pro
Slide 8: Strategic Rationale of the Transaction
Strategic Rationale of the Transaction 1. 1 Transform from a regional to one of the leading national retail, logistics warehouse, and after-sales platforms, which is expected to further drive revenue growth and market share expansion 2 Increase penetration into higher growth and more profitable mark
Slide 9: Transformation from a Regional to One of the Leading National Retail, Logistics, Warehouse and After-sales Platforms
Transformation from a Regional to One of the Leading National Retail, Logistics, Warehouse and After-sales Platforms An integrated platform is expected to accelerate development of “Total Retail” strategy, further drive revenue growth and market share expansion Nationwide Network1 1,791 retail store
Slide 10: Strengthen Penetration into Higher Growth and More Profitable Markets
Strengthen Penetration into Higher Growth and More Profitable Markets through Integrating the Target's Highly Complementary Store Network The Target Group’s distribution network spans across regions that are poised to benefit from favorable government policies, such as “One Belt and One Road Initiat
Slide 11: The Target Group's Superior Profitability
The Target Group’s Superior Profitability The Target Group's presence in second-tier market is higher than the Group's, which has historically led to higher growth and profitability Outlet Breakdown by First-tier And Second-tier Markets ( As of 31 March 2015) Sales Growth YoY Sales Growth Comparable
Slide 12: Establishment of a Fully Integrated Supply Chain After Eliminating Connected Party Transactions
The Establishment of a Fully Integrated Supply Chain After Eliminating Connected Party Transactions is Expected to Drive E-commerce Growth, Improve Supply Chain Efficiency, and Enhance Corporate Governance The need to establish a fully integrated platform through removing connected party transaction
Slide 13: The Transaction is Expected to Drive Revenue Growth and Cost Efficiency Improvement
The Transaction is Expected to Drive Revenue Growth and Cost Efficiency Improvement Revenue Integration of offline resources to accelerate development of Total Retail strategy and E-commerce expansion Flexible transfer of inventory to fulfill customers’ orders and increase sales Gross Profit S
Slide 14: Q&A
Q&A 14
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