361 Degrees International Ltd. · HKEX:1361
361 Degrees International — FY2019 Earnings Presentation
28 slides from 361 Degrees International's earnings presentation, Mar 17, 2020
Slide 1: Annual Results
Annual Aaron Gordon 361° new brand endorser Results 361 Degrees International Limited （Stock code: 1361.HK） March 2020
Slide 2: Contents
1 Financial Review Operational Review 2 Contents Brand Building 3 Outlook 4 Q&A 5 2
Slide 3: Disclaimer
Disclaimer These presentation slides have been prepared by 361 Degrees International Limited (the “Company”) solely for us during its presentation held in connection with its annual results for the year ended 31 December 2019 and may not be reproduced or redistributed. In particular, these presentat
Slide 4: Outshine the Market with Focused Strategy & Cross-industry Collaborations
Outshine the Market with Focused Strategy & Cross-industry Collaborations Strong Year for Sports; Expanding Presence in Overseas Stable Profitability Market • Sports industry is a blue ocean with trillion-scale • Expand presence in Belt and Road regions and some consumption, characterized as a long-
Slide 5: Financial Review
Financial Review
Slide 6: Key Financial Highlights
Key Financial Highlights For the year ended 31 Dec RMB mn 2019 2018 Change Revenue 5,631.9 5,187.4 +8.6% Gross profit 2,269.6 2,105.9 +7.8% Operating profit 887.3 782.3 +13.4% Profit attributable to equity shareholders 432.4 303.7 +42.4% Basic EPS (RMB cents) 20.9 14.7 +42.2% Profitability Ratios (%
Slide 7: Revenue and Gross Margin
Revenue and Gross Margin (RMB mn) Gross margin 6,000 36.6% 45% 5,800 40.6% 40.3% 5,600 40% 5,400 38.5% 35% Footwear 42.7% 5,200 Apparel 5,631.9 30% 5,000 42.4% 15.7% Accessories 5,187.4 25% 1.6% 1.5% 4,800 Kids’ 17.7% Sportswear 4,600 20% 2018 2019 1.5% 1.8% Others Footwear Apparel Kids’ Sportswear
Slide 8: Major Operating Expenses
Major Operating Expenses ◼ Selling and Distribution Costs ◼ Administrative Expenses For the year ended 31 Dec For the year ended 31 Dec RMB mn 2019 2018 Change RMB mn 2019 2018 Change A&P 507.8 557.3 -8.9% R&D 214.3 214.6 -0.1% E-commerce 196.8 174.1 +13.1% expenses Salaries 84.2 64.6 +30.3% Packing
Slide 9: Working Capital Cycle
Working Capital Cycle ◼ Working Capital Turnover Days ◼ Trade Debtors and Ageing Analysis （days） 100 90 As at 31 Dec As at 31 Dec 90 RMB’000 2019 2018 80 75 Trade debtors 2,125,643 2,362,054 70 60 Less：Allowance for (50,847) (57,855) doubtful debts 50 40 2,074,796 2,304,199 30 Bills Receivable 124,5
Slide 10: Liquidity and Capital Strength
Liquidity and Capital Strength ◼ Cash Flow For the year ended 31 Dec RMB mn 2019 2018 Operating profit 887.3 782.3 Change in inventories (116.9) (249.4) Change in trade and bills receivables 206.9 (250.7) Change in trade and other payables (112.5) 190.5 Change in deposits, prepayments and 101.3 6.5
Slide 11: Liquidity and Capital Strength
Liquidity and Capital Strength ◼ Financial Resources As at 31 Dec As at 31 Dec RMB’000 2019 2018 Pledged bank deposits 230,675 327,405 Deposits with bank with maturities > 3mths 3,000,000 4,500,000 Cash and cash equivalents 3,422,295 1,651,281 Total cash 6,652,970 6,478,686 Bank loans 111,186 112,17
Slide 12: Balance Sheet Highlights
Balance Sheet Highlights RMB mn As at 31 Dec 2019 As at 31 Dec 2018 Change Current assets 10,659.9 10,650.0 +0.1% Current liabilities 2,809.0 3,354.3 -16.3% Net current assets 7,850.8 7,295.8 +7.6% Equity attributable to owners of the 6,322.5 5,767.7 +9.6% company Net asset value per share (RMB) 3.2
Slide 13: Operational Review
WH SHAR AE SWAAmR RASS
Slide 14: 361° Sales Overview
361°Sales Overview ◼ Global Sales Performance The Group has 8,456 point-of sales across the world, in which 5,519 point-of-sales are in mainland China. Europe 827 America Taiwan, 225 China China 5,519 75 Belt and Road Brazil regions 1,549 261 No. of point-of-sales ◼ China Sales Performance The avera
Slide 15: IP Crossover and Cross-industry Collaboration
IP Crossover and Cross-industry Collaboration Cooperated with numerous classic and high-quality IPs. Crossover products were launched with 6 well-known IPs, including Gundam, Pepsi, Minions, CrossFire, Seagull Watches and Scissor Seven. Cross-industry collaboration received overwhelming market respo
Slide 16: Kids' Sportswear Sales Overview
Kids’ Sportswear Sales Overview ◼ China Sales Performance The Group has 1,922 point-of-sales for kids’ sportswear in China. The average GFA of Kids’ store is 62㎡. Western region Northern region 360 High High High single-digit single-digit single-digit 833 Low single-digit Eastern region 1Q 2Q 3Q 4Q
Slide 17: E-commerce
E-commerce ◼ Sales Performance The revenue of exclusive products of e-commerce in 2019 increased 23.9% to RMB915.8 million, contributing 16.3% of the Group’s total revenue. 915.8 739.2 2018 2019 RMB mn ◼ Channel and Product Structure The Group conducts online sales through 361° official website and
Slide 18: Brand Building
ASA: Sik CBABTIBBABA Brand | Building
Slide 19: Brand Positioning
Brand Positioning High-end Market Casual Professional Fashion Sports Mass Market 19
Slide 20: Top-tier Sports Event Resources
Top-tier Sports Event Resources Sponsored 12 international and domestic top-tier sports events ◼ Official Sports Brand Partner ◼ Supreme, Strategic and ◼ Title Sponsor & Event Top-tier Partner Cooperation • Hangzhou She run 10K of China • Chengdu Panda Marathon of China • 361° She run of China • Tai
Slide 21: National & Professional Sports Team Resources
National & Professional Sports Team Resources Fully supported 19 national & professional sports teams ◼ National and Regional Sports Teams • China National Swimming Team • The Beijing 2022 Winter Olympic Games Preparatory Training by General • China National Synchronized Swimming Team Administration
Slide 22: Outstanding Spokesperson Resources
Outstanding Spokesperson Resources Contracted with 37 top-tier athletes and celebrities as spokespersons • Basketball players represented by Aaron Gordon and • Swimmers represented by Liu Xiang and • The boxer Xu Can Kyranbek Makan Zhang Yufei • The celebrity Tan Weiwei • The football player Yang Xu
Slide 23: R&D and Design
R＆D and Design The Group has obtained 356 patents. The Group’s investment on R&D is not less than 3% of the Group’s annual revenue every year. 361o has successfully founded the Q3 technology platform for shoe sole to support the performance improvement of full range of products ◼ Q Elastic Super – ◼
Slide 24: 361º Kids Brand building
361º Kids Brand building ◼ Strengthened youth football ◼ Cooperated with high- ◼ Joined hands to apply the resources quality IPs anti-microbial technology • Official partner of Evergrande Football • Kung Fu Panda collection products • Cooperated strategically with China School • How to Train Your Dr
Slide 25: Outlook
Outlook
Slide 26: Favourable Government Policies
Favourable Government Policies • Action plan to further promote sports consumption (2019-2020) • Implementation Plan for Further Optimizing Supply to Promote the Stable Consumption Growth and Facilitating the Formation of a Strong Domestic Market (2019) • Opinions on Implementation of Healthy China
Slide 27: Favourable Factors to Drive Industry Development
Favourable Factors to Drive Industry Development ◼ 2013-2023 Market Size of China’s Sportswear Industry (RMB bn) 383.9 334.4 359.0 310.4 264.8 286.7 221.5 218.6 190.4 204.3 166.9 190.1 134.7 148.3 161.9 176.2 148.6 101.6 121.0 61.9 71.6 85.5 124.8 134.2 144.3 154.7 165.3 76.7 81.4 88.8 100.5 116.2 7
Slide 28: BT aR FAR
BT aR FAR mee Ss SAE ht Ao RRS ae ALR RS
361 Degrees International — FY2019 Earnings Presentation on 6ix