Anta Sports Products Ltd. · HKEX:2020
Anta Sports Products — FY2016 Earnings Presentation
24 slides from Anta Sports Products's earnings presentation, 2017
Slide 1: 2016 Annual Results Presentation
Slide 2: Disclaimer
Disclaimer The presentation is prepared by ANTA Sports Products Limited (the “Company”) and its subsidiaries (the “Group”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to fo
Slide 3: Financial Overview
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Slide 4: Financial Highlights
Financial Highlights 2016 2015 Changes Revenue (RMB million) 13,345.8 11,125.9 20.0% Gross profit (RMB million) 6,459.0 5,185.4 24.6% Profit from operations (RMB million) 3,203.4 2,696.7 18.8% Profit attributable to equity shareholders (RMB million) 2,385.5 2,040.6 16.9% Basic earnings per share (RM
Slide 5: Revenue
Revenue Revenue 20.0% to RMB13.35 billion 2015 2016 in revenue > in order value of 2016 trade fairs for ANTA products as announced before due to: Stronger pace of revenue growth for non-ANTA brands 2016 2015 Changes Revenue by product (RMB million) (% of revenue) (RMB million) (% of revenue) (%) Foo
Slide 6: Gross Profit Margin
Gross Profit Margin GP margin 1.8p.p. to 48.4% 0.1 p.p. in footwear GP margin due to: Higher contribution from the FILA business, partly offsetting by the effect of launching more value- for-money high-performance footwear products 3.2 p.p. in apparel GP margin due to: Higher contribution from the F
Slide 7: Operating Expenses and Operating Profit Margin
Operating Expenses and Operating Profit Margin The key operating expenses ratios for 2016 were relatively stable compared with 2015 A&P expenses ratio* 0.1p.p. to 11.4% Staff costs ratio* 0.1p.p. to 11.3% R&D costs ratio# 0.1p.p. to 5.1% * In terms of revenue # In terms of cost of sales OP margin 0.
Slide 8: Effective Tax Rate and Margin of Profit Attributable to Equity Shareholders
Effective Tax Rate and Margin of Profit Attributable to Equity Shareholders Effective tax rate remains unchanged at 26.2% Margin of profit attributable to equity shareholders 0.4p.p. to 17.9% due to: Operating profit margin Net finance income 8
Slide 9: Working Capital Management
Working Capital Management Average inventory turnover days 3 days to 61 days, due to: in overall inventories as a result of FILA retail operation expansion Average trade receivables turnover days 6 days to 39 days Average trade payables turnover days 3 days to 44 days 9
Slide 10: Liquidity and Financial Resources
Liquidity and Financial Resources Operating cash inflow was similar to profit for 2016, demonstrating strong cash generation capability 2016 2015 (RMB million) (RMB million) Operating cash inflow 2,467.6 1,902.9 Year ended Capital expenditures (627.6) (460.9) 31 Dec Others 57.0 (25.0) Free cash infl
Slide 11: Business Overview
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Slide 12: Market Review
Market Review It is generally believed that China’s sportswear industry has a bright outlook thanks to the growing number of exercisers and demand for sportswear According to the National Bureau of Statistics of China China’s economy in GDP +6.7% 2016 Total retail sales of consumer goods +10.4% (clo
Slide 13: Unique Business Model and Key Strategy
Unique Business Model and Key Strategy Unique business model + “Single-focus, Multi-brand, Omni-channel” strategy = Full coverage of consumers and retail channels Full Coverage Omni-channel Catering to consumers’ demands for sportswear from Leveraging online and offline retail channels to boost diff
Slide 14: ANTA Embodies the Essence and Spirit of Chinese Sports
ANTA Embodies the Essence and Spirit of Chinese Sports ANTA’s brand equity and recognition experienced uplift from its “Go Surprise Yourself” marketing campaign riding on the 2016 Rio Olympics As an official sponsor of the Chinese Olympic Committee, we produced 31,000 sets of footwear, apparel and a
Slide 15: ANTA is a Value-for-Money Functional Sportswear Brand
ANTA is a Value- Value-for for--Money Functional Sportswear Brand ANTA provides consumers with value-for-money and professional sportswear and has a strong advantage in running, cross-training, basketball and soccer categories 2016 was a groundbreaking year for NBA star Klay Thompson, one of ANTA en
Slide 16: ANTA KIDS
ANTA KIDS ANTA KIDS is well-placed to capture the growing demand for kids sportswear with its comfortable and dependable products Following the implementation of the 2-child policy by the Chinese government, it is widely expected that growth in the kids market segment will accelerate We are committe
Slide 17: NBA Brand
NBA Brand We are an official marketing partner of NBA China & licensee of the NBA We are the 1st domestic sportswear brand to launch NBA-branded products in China We can use the NBA logo and logos of NBA teams, legendary teams and events on our adults and kids basketball shoes and accessories NBA br
Slide 18: FILA and FILA KIDS
FILA and FILA KIDS We have enhanced the appeal of FILA’s brand, product range and store layouts to tap the potential of the high-end sports fashion market Renowned female celebrity Gao Yuanyuan started featuring in FILA advertising campaign Launched Jason Wu X FILA collection to provide consumers wi
Slide 19: DESCENTE
DESCENTE We officially introduced the DESCENTE business into the high-end sportswear market in China with the opening of the 1st DESCENTE store in August JV’s Ownership Structure Founded in 1935 in Osaka, Japan, DESCENTE has over 80 years of experience producing products 60% 30% 10% which incorporat
Slide 20: Distribution Network Management
Distribution Network Management Our retail-oriented strategy has further optimized our store efficiency and retail management capabilities ANTA+ANTA KIDS FILA+FILA KIDS DESCENTE in China in China, Hong Kong, Macao in China Key market tiers 2nd, 3rd and lower tier cities 1st and 2nd tier cities 1st a
Slide 21: E-commerce Business
E-commerce Business Our e-commerce business will benefit our long-term revenue and profitability by tapping the fast growing online market opportunities Self-operated online shops on anta.cn, Tmall, JD, etc. + authorized third parties-operated online shops During the Singles’ Day online shopping fes
Slide 22: Product Innovation and Supply Chain Management
Product Innovation and Supply Chain Management Technological innovation and effective supply chain management are essential for sustainable growth The sales volume of ANTA’s travel and sports shoes ranked 1st in terms of market share in China for 15 consecutive years Introduced over 1,700, 3,600 and
Slide 23: Prospects
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Slide 24: Strategies for Reaching New Heights
Strategies for Reaching New Heights With our “single-focus + multi-brand + omni-channel” strategy, we will continue to utilize our brand portfolio to maximize market reach through different retail channels Tapping potential markets by Focusing on consumer experience; Optimizing retail network; Targe