Gome Retail Holdings Limited · HKEX:493
Gome Retail — 9M 2013 Earnings Presentation
24 slides from Gome Retail's earnings presentation, Nov 18, 2013
Slide 1: 2013 First Nine Months Results Announcement
2013 First Nine Months Results Announcement 18th November 2013
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: Content
Content 1. 2013 First Nine Months Results 1. Performance Review 2. Financial Results 2. Omni - Channel Transition: Future Outlook 1. Sustainability 2. Supply Chain 3. Logistics 4. Store Network 5. E-commerce 9M 2013 Results Announcement | Page 2
Slide 4: Performance Review
2013 First Nine Months Results Performance Review
Slide 5: Strategic Implementations
Strategic Implementations 2013 Strategies Results Store Network • Store renovation • Overall consolidated gross margin 1.8 p.p. YoY • Close down underperforming stores • Overall operating expenses/sales 1.6 p.p. YoY • Enter new cities, new business areas • Same-store sales growth: 12.4% E-Commerce •
Slide 6: Financial Results
2013 First Nine Months Results Financial Results
Slide 7: Income Statement Summary
Income Statement Summary Increase RMB Million 9M 2012 9M 2013 (Decrease) Revenue 38,565 41,660 8.0% Consolidated gross profit 6,259 7,501 19.8% Operating profit/(loss) (760) 573 175.4% Profit/(Loss) before tax (756) 708 193.7% Profit/(Loss) attributable to owners (829) 582 170.2% of the parent compa
Slide 8: Balance Sheet Summary
Balance Sheet Summary Efficient inventory management, high cash balance Positive cash flow from operating activities RMB Million As at 31st Dec As at 30th Sep. Change 2012 2013 Cash and cash equivalents 7,067 7,866 11.3% Pledged deposits 6,240 7,026 12.6% Inventories 7,779 9,719 24.9% Trade payables
Slide 9: Net Profit Analysis
Net Profit Analysis Quarterly improvement in net profit and net profit margin, long-term profitability strengthened Net profit/net profit margin analysis Net profit Net profit margin RMB million 400.0 3.0% 300.0 246.0 260.1 2.0% 1.7% 1.8% 200.0 100.3 1.0% 100.0 76.3 0.6% (13.1) 0.8% 0.0% 0.0 12Q1
Slide 10: Consolidated Gross Profit Margin Analysis
Consolidated Gross Profit Margin Analysis YoY improvement in consolidated gross profit and margin, consolidated gross profit margin returned to historic high RMB Million Consolidated gross 16.2% 18.0% 9M12 9M13 profit margin Consolidated gross Revenue 38,565 41,660 profit 6,259 7,501 RMB Million C
Slide 11: Expenses Breakdown
Expenses Breakdown Continuous improvement in cost control measures Labour/sales and rent/sales down due to network and labour optimization 9M12 9M13 Change RMB Million Operating expenses/sales Selling & Distribution 14.6% 12.9% (1.7) p.p. Expenses 19.8% Rent 6.2% 5.2% (1.0) p.p. 18.4% 18.4% 16.8
Slide 12: Store Indicators
Store Indicators Period-End Sale Area Average Sales Per Store RMB Million 1,000 sq.m 4,087 4,026 3,977 3,865 3,758 12.9 3,684 3,614 11.2 11.5 12.3 10.4 10.7 8.7 12Q1 12Q2 12Q3 12Q4 13Q1 13Q2 13Q3 12Q1 12Q2 12Q3 12Q4 13Q1 13Q2 13Q3 Sales per Sq.m Same-Store Sales Growth RMB Yuan 3,204 3,269 2,994 3,0
Slide 13: Omni-Channel Transition: Future Outlook
Omni-Channel Transition Future Outlook
Slide 14: Sustainability
Sustainability Labour Restructure ✔ Completed Logistics Implemented in phases Store Optimization✔ Completed Supply Chain Implemented in phases Cost O2O Supply Chain Enhance with Low Cost & High Efficiency Control Competitiveness IT System ✔Completed • Low price • Low-end products • Positive consumer
Slide 15: Supply Chain
Supply Chain Long-term competitiveness based on continuous consolidation Phase 1 Phase 2 Phase 3 （0-6 months） （6-12 months） （12-24 months） Headquarter 10 Procurement Brands Key Branches & Other Brands Other Branches Establish ▪ Change store layout ▪ Procurement planning ▪ Branch procurement forecast
Slide 16: Logistics
Logistics City Based Logistics Regional Distribution Centres Distribution centre Distribution centre Store Stores Coverage Key Focus Goal Results ▪ Greater transparency in logistics expenses ▪ Economies of scale 3rd party logistics platform ▪ Lower redundancy ▪ Higher fill rate ▪ Centralize logistic
Slide 17: Store Network
Store Network Identify Consumer Demand based on Market Knowledge Product Experience Competitive Price Expertise • Latest products • RMB 100 billion Title • Latest technology Add your text • In-depth product procurement volume knowledge • Pleasant shopping • Capacity in product environment • Applianc
Slide 18: E-commerce
E-commerce Profitability oriented development Expansion follows integration B2C + platform +physical stores + mobile commerce+… B2C 3 GOME.COM.CN Market place Procurement Membership platform database National National after-sales Sharing logistics coverage coverage 2 Store network procurement/logist
Slide 19: Appendix
{MSITS—iOIPK - iB Appendix
Slide 20: Revenue by Regions
Revenue by Regions 45% 9M13: RMB 41.66 billion 37% 30% 18% 15% 10% 9% 9% 6% 6% 5% 0% Beijing Guangzhou Shanghai Shenzhen Chengdu Xi'an Tianjin Others 45% 9M12: RMB 38.565 billion 36% 30% 18% 15% 10% 10% 9% 6% 6% 5% 0% Beijing Shanghai Guangzhou Shenzhen Chengdu Xi'an Tianjin Others 9M 2013 Results A
Slide 21: Revenue & Gross Profit Margin by Categories
Revenue & Gross Profit Margin by Categories Revenue by categories Gross profit margin by categories 20% 18.7% 30% 16.2% 16.6% 24% 16.0% 25% 15.5% 16% 23% 14.1% 13.3% 13.6% 20% 20% 18% 11.7% 17% 12% 16% 10.8% 10.6% 15% 10.0% 14% 9.3% 15% 8.7% 13% 11% 8% 10% 10% 8% 7% 4% 4% 5% 0% 0% AV Air-Con Fridge
Slide 22: Store Network Expansion
Store Network Expansion As of 30th September 2013 Group GOME ChinaParadise Dazhong Cellstar Flagship stores 212 149 36 27 0 Standard stores 329 273 39 17 0 Specialized stores 522 387 80 13 42 Total: 1063 809 155 57 42 T1 Market 679 476 112 53 38 T2 Market 384 333 43 4 4 Net store increase/(decrease)
Slide 23: Stable Supplier Relationships
Stable Supplier Relationships Top 5 Suppliers in 9M13 39.4% 12.3% 11.8% 6.2% 4.8% 4.3% Haier Samsung Midea Gree Hisense Top Five Top 5 Suppliers in 9M12 35.8% 12.3% 10.2% 5.3% 4.2% 3.8% Haier Samsung Midea Apple Gree Top Five 9M 2013 Results Announcement | Page 22
Slide 24: Thank you!
{MSITS—iOIPK - iB Thank you!