Haier Smart Home Co., Ltd. Class A · SSE:600690
Haier Smart Home Co., Ltd. Class A — Non-Deal Roadshow (September 2019)
26 slides from Haier Smart Home Co., Ltd. Class A's roadshow presentation, September 2019
Slide 1: Haier Smart Home Co., Ltd Roadshow Presentation
Haier Smart Home Co., Ltd Roadshow Presentation September 2019
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 Other A-share Haier Group Clearing Company shareholders shareholders 40.5% 10.2% 3.2% 4.3% 41.8% Haier Smart Home 600690 CH 45.64% Haier Electronics 1169 HK Kitchen and Equipment Air Home Channel Refrigeration small components Water heater Logistic
Slide 4: Table of Contents
Table of Contents 1 1H19 Performance Review 1 2 Investment Highlights 13 3 Appendix 17 Haier Smart Home 1H19
Slide 5: 1H19 Performance Review
Click to edit Master title style 1H19 Performance Review
Slide 6: 1H19 Earnings Review
1H19 Earnings Review Sales revenue Gross margin RMB bn 98.9 29.3% 94.4 29.2% 90.5 29.1% 1H18 1H19 1H19 Ex Candy 1H18 1H19 1H19 Ex Candy Operating margin Net profit & margin RMB bn Net profit Net margin 5.15 5.27 6.9% 4.78 6.8% 6.6% 5.58% 5.28% 5.20% 1H18 1H19 1H19 Ex Candy 1H18 1H19 1H19 Ex Candy Ha
Slide 7: Global Revenue by Category
Global Revenue by Category Revenue by category GP margin Change pct 14% Refrigerator 31.9% 0.85 4% 29% Washing machine 31.2% -0.75 AC 30.8% -2.65 14% Kitchen appliances 31.7% 0.39 Water heater 42.6% -2.38 21% 18% Equipment 10.4% 0.84 Revenue growth by category RMB bn Haier revenue growth Revenue YoY
Slide 8: Global Revenue by Brand
Global Revenue by Brand Revenue by brand 4% 1% 4% 4% 4% 4% 1% 6% 4% 1H19 FY18 45% Haier GEA Candy Casarte Leader Aqua 54% 33% FPA 36% Revenue growth by brand RMB bn 15.0% 15.0% 12.6% 9.4% 4.3% 90.5 2.6% 98.9 0.8% -2.7% 1H18 Haier GEA Candy Casarte Leader Aqua FPA 1H19 Haier Smart Home 1H19 4
Slide 9: Global Revenue by Region
Global Revenue by Region Revenue by region Africa Japan Others Asean 2% 3% 2% 4% 1H19 Europe 16% FY18 Overseas South 47% Asia Overseas China 9% America China 42% 53% 59% 58% ANZ 5% Revenue growth by region RMB bn 23.9% 22.0%* 12.6% 15.9% 11.2% 9.5% 6.1% 37.6 2.6% 46.7 1H18 America North ANZ Asia Sou
Slide 10: China Revenue by Category
China Revenue by Category Market share online/offline 2.3 32.5 Refrigerator 36.2 1.3 Online 0.6 34.4 Washing machine 35.6 3.7 Online increase 0.5 8.8 Air conditioner 11.4 0.5 offline 1.64.4 Kitchen appliance 5.3 1.1 Offline increase 2.4 24.1 Water heater 19.2 1.2 Revenue growth by quarter 1H Revenue
Slide 11: China Revenue by Brand
China Revenue by Brand China revenue by brand Revenue growth RMB bn Haier 83.3% Casarte 15% 8.7% 52.8 -0.8% Leader 0.8% -2.7% 52.4 8.0% 1H18 Haier Casarte Leader 1H19 Casarte revenue by category % of Casarte revenue Casarte revenue by category 10.3% 2% 6% Refrigerator 12.3% 11.2% 9% 51% Washing mach
Slide 12: Income statement
Income statement 1H19 Change Reason RMB bn Revenue 98,979 9.4% China appliances GM up 0.9 pct Gross profit Margin 29.1% -0.11pct overseas GM up 0.6 pct Selling expense ratio 14.7% -0.2pct GEA & FPA selling expense down Chinese market impacted by weak AC & TV sales General & admin expense ratio 4.5%
Slide 13: Cash Flow
Cash Flow Cash flow Working capital management RMB mm days 5,598 3,633 DSO 14.3 Operating cashflow 1H18 1H19 DIO 60.3 Significant increase in cash flow of Candy is expected in 2H19 DPO 74.4 1H18 1H19 CCC 0.2 -2,990 Investing cashflow -7,750 Investment in acquiring Candy caused outflow of cash Cash c
Slide 14: Optimizing Leverage
Optimizing Leverage Borrowing trend Credit metrics RMB bn 71.3% 69.5% 66.9% 67.9% 39.6 Total liability / 36.7 34 33.1 total assets 2016 2017 2018 1H19 Total financial debt 2016 2017 2018 1H19 3.76 3.83 3.20 2.20 Total financial Acquisition of Candy increased borrowing debt/ EBITDA 2016 2017 2018 1H1
Slide 15: Investment Highlights
Click to edit Master title style Investment Highlights
Slide 16: Vision and Ecosystem
Vision To be the leading smart home solutions provider in the era of Internet of Things Ecosystem resources No.1 Major Appliances User-oriented Company Ecosystem Ecosystem resources resources Lifetime User World-class Brand Disruptive Portfolio Innovation Ecosystem resources Strong Electric applianc
Slide 17: Investment Highlights
Investment Highlights 1 Integrated household appliances leader with strong market positions globally and growth across all categories 2 Strong portfolio of brands targeting each consumer segment U+ Smart home: a leading interactive smart home solution provider built on a proprietary platform with 3
Slide 18: Growth Strategy in the Era of IoT
Growth Strategy in the Era of IoT 1 To continue expanding globally, in Europe in particular 2 To enhance Haier brand value through technology innovation and business model evolution 3 To develop Shunguang retail and social network to further penetrate the market 4 To develop U+ smart-home solutions
Slide 19: Implementation of Smart Home Strategy
Implementation of Smart Home Strategy 1.94bn Eco revenue 53% Eco revenue up by 10,271 Average set price 9% Average set price up by No. of appliances connected 54% up by 30% Activation rate of connected appliances up by Haier Smart Home 1H19
Slide 20: Appendix
Click to edit Master title style Appendix
Slide 21: Consolidated Income Statement
Consolidated Income Statement RMB mm 1H19 1H18 1Q19 1Q18 Revenue 98,979 90,488 48,043 43,610 Cost of sales (70,174) (64,057) 34,051 (30,999) Gross profit 28,805 26,430 13,992 12,610 Business tax and surcharges (400) (407) (232) (224) Selling and distribution expenses (14,596) (13,522) (7,180) (6,423
Slide 22: Balance Sheet
Balance Sheet RMB mm 1H19 1H18 RMB mm 1H19 1H18 Current assets Current liabilities Cash and cash equivalents 33,735 37,456 Accounts payables 48,174 47,385 Inventories 23,867 22,377 Short term debt 8,108 6,298 Trade and bills receivables 28,941 24,652 Other Current Liabilities 35,201 26,398 Total cur
Slide 23: Cash Flow Statement
Cash Flow Statement For the year ended 30 June (RMB mm) 2019 2018 For the year ended 31 Dec (RMB mm) 2019 2018 Cash flows from operating activities Cash flows from financing activities Net profit 5,150 4,787 Proceeds from borrowings 9,175 4,509 Minority interest 1,080 1,079 Repayment of borrowings (
Slide 24: 1H & July Appliances Industry Revenue Growth in China
1H & July Appliances Industry Revenue Growth in China RMB bn RMB bn 1H Revenue YoY July Revenue YoY -4.9% -2.3% -3.9% -1.0% -8.0% -2.9% -8.6% -7.7% -9.4% -7.6% -15.9% -8.2% -22.2% 465.6 45.5 34.4 120.5 45.6 32.7 116.7 7.2 4.0 18.3 4.3 2.7 1.8 Overall Refrigerator Washing AC Kitchen Water Overall Ref
Slide 25: 2H & FY19 Appliances Industry Revenue Growth in China
2H & FY19 Appliances Industry Revenue Growth in China -4.90% -2.30% -3.90% -8.20% -3.38% -2.71% -1.40% -4.70% -5.10% -6.20% -3.50% -3.05% -5.40% -8.30% -7.89%-4.70% -5.83% -8.24% CMM 1H19 2H19 FY19 Overall Refrigerator Washing machine Air conditioner Kitchen appliance Water heater 3.80% 2.00% 1.40%
Slide 26: Thank You
Thank You
Haier Smart Home — Non-Deal Roadshow (September 2019) on 6ix