Haier Smart Home Co., Ltd. Class A · SSE:600690
Haier Smart Home Co., Ltd. Class A — Non-Deal Roadshow (November 2019)
24 slides from Haier Smart Home Co., Ltd. Class A's roadshow presentation, Nov 7, 2019
Slide 1: Haier Smart Home Co., Ltd Roadshow Presentation
Haier Smart Home Co., Ltd Roadshow Presentation
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 Haier Group GIC Others Clearing Company shareholders 40.5% 12.0% 2.7% 4.3% 40.5% Haier Smart Home 600690 CH 45.64% Haier Electronics 1169 HK Air Kitchen Equipment Home Channel Water Refrigeration Water heater conditioner appliances components laund
Slide 4: Table of Contents
Table of Contents 9M19 Performance Review 1 Investment Highlights 13 Appendix 17 Haier Smart Home 9M19
Slide 5: 9M19 Earnings Review
9M19 Earnings Review 9M18 9M19 9M19 ExCandy RMB bn 3Q19 3Q19 ex logistics ex Candy & logistics 148.9 9.1% 141.7 138.2 4.6% 3.5% 9M18 Revenue 9M19 9M19 ExCandy Revenue 9M18 9M19 9M19 ex Candy 3Q18 3Q19 3Q19 ex Candy 29.12% 29.09% 30.60% 29.80% 28.97% 30.60% 5.85% 5.71% 5.80% 5.71% 3.94% 4.26% Gross m
Slide 6: Global Revenue by Category
Global Revenue by Category Global revenue by segment 3% 5% Washing machine Existing business 20% AC GEA 22% FPA 28% Refrigerator 64% 31% Kitchen Candy Equipment appliance 19% 2% Water heater 6% China revenue & growth by category RMB bn Haier revenue growth Revenue YoY Appliances industry growth in C
Slide 7: Global Revenue by Brand
Global Revenue by Brand Revenue by brand 3% 3% 4% 4% 9M19 4% 3% 9M18 Haier Casarte Leader 52% 32% 58% 32% FPA GEA Candy 6% Revenue growth by brand RMB bn 25.0% 11.6% 3.2% 2.0% 119.3 131.2 -1.5% -2.4% 9M18 Haier Casarte Leader FPA GEA Candy 9M19 Haier Smart Home 9M19 4
Slide 8: Global Revenue by Region
Global Revenue by Region Japan Africa Others Revenue by region 3.6% 1.2% 5.2% Asean 9M18 9M19 3.7% Europe 14.2% Overseas Overseas South China China 47% Asia 41% 53% 59% 7.0% America 58.6% ANZ 6.5% Revenue growth by region RMB bn 25.0% 22.4% 70.0 56.0 14.1% 11.6% 9.7% 9.2% 3.2% 9M18 North America ANZ
Slide 9: China Revenue by Category
China Revenue by Category Market share Online Offline change 1.9 32.8 Refrigerator 36.6 1.4 change 1.3 34.8 Washing machine 36.1 2.7 0.1 8.7 Air conditioner 12.3 0.7 1.1 5.8 Kitchen appliance 5.5 0.8 1.5 23.6 Water heater 20.1 1.9 Revenue growth by quarter Revenue growth driver 1Q19 1H19 9M19 Volume
Slide 10: China Revenue by Brand
China Revenue by Brand China revenue by brand Revenue growth RMB bn 63.3 61.2 25% Haier 84% Casarte 9% -5.9% -2.4% Leader 7% 9M18 Haier Casarte Leader 9M19 Casarte revenue by category % of Volume % of Revenue Casarte revenue by category 2.1% 5.3% 3.1% 9M18 10.0% Refrigerator 3.7% 9M19 12.0% 46.5% 3.
Slide 11: Income statement
Income statement 9M19 Change Reason RMB bn Revenue 148.9 7.7% Ex Candy GM up 0.6 pct Gross profit Margin 29.1% -0.03pct 3Q GM up 0.8 pct Selling expense ratio 15.3% -0.2pct General & admin expense ratio 4.6% +0.38pct R&D expense ratio 3.0% +0.3pct Consolidation of Candy with higher admin expense rat
Slide 12: Cash Flow
Cash Flow Cash flow Working capital management RMB mm days 10,902 9,006 CCC 0.6 Operating cashflow 9M18 9M19 Significant increase in cash flow of Candy is expected in 2H19 9M18 9M19 9M19 ex Candy 9M18 9M19 -1.5 -2 Investing -9,562 cashflow -11,284 Investment in acquiring Candy caused outflow of cash
Slide 13: Optimizing Leverage
Optimizing Leverage Borrowing trend Total liability ratio RMB bn 71.3% 36.7 40.6 69.5% 33.1 34.0 66.9% 66.9% 2016 2017 2018 9M19 2016 2017 2018 9M19 Leverage ratio ROE 24.0 3.76 22.9 3.20 2.20 2.50 21.0 20.4 2016 2017 2018 9M19 2016 2017 2018 9M19 Haier Smart Home 9M19 9
Slide 14: Table of Contents
Table of Contents 9M19 Performance Review 1 Investment Highlights 13 Appendix 17 Haier Smart Home 9M19
Slide 15: Ecosystem resources 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 16: 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 17: 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 18: Implementation of Smart Home Strategy
Implementation of Smart Home Strategy Eco revenue 3.37bn Eco revenue 55% Activation rate 195% 27.7% Set purchase as % of total revenue No. active users 92% Haier Smart Home 9M19 14
Slide 19: Table of Contents
Table of Contents 9M19 Performance Review 1 Investment Highlights 13 Appendix 17 Haier Smart Home 9M19
Slide 20: Consolidated Income Statement
Consolidated Income Statement RMB mm 9M19 9M18 1H19 1H18 Revenue 148,896 138,227 98,979 90,488 Cost of sales (105,584) (97,969) (70,174) (64,057) Gross profit 43,312 40,258 28,805 26,430 Business tax and surcharges (683) (654) (400) (407) Selling and distribution expenses (22,783) (21,533) (14,596)
Slide 21: Balance Sheet
Balance Sheet As of As of As of As of RMB mm RMB mm 30th Sep 31stDec 30th Sep 31st Dec Current assets Current liabilities Cash and cash equivalents 35,856 38,158 Accounts payables 48,167 47,385 Inventories 25,080 22,404 Short term debt 9,055 6,298 Trade and bills receivables 27,854 24,716 Other Curr
Slide 22: Cash Flow Statement
Cash Flow Statement For the year ended 30 Sep (RMB mm) 2019 2018 For the year ended 30 Sep (RMB mm) 2019 2018 Cash flows from operating activities Cash flows from financing activities Net profit 7,772 4,787 Proceeds from borrowings 12,084 12,010 Minority interest 3,494 1,079 Repayment of borrowings
Slide 23: 2H & FY19 Appliances Industry Revenue Growth in China
2H & FY19 Appliances Industry Revenue Growth in China -2.71% -3.05% -3.50% -4.70% -5.10% -4.70% -5.83% -5.40% -6.20% -8.30% -8.24% -7.89% CMM 2H19 FY19 Overall Refrigerator Washing machine Air conditioner Kitchen appliance Water heater -1.14% 0.40% -0.40% 1.40% 1.70% 0.20% -2.20% 3.80% -4.02% -5.86%
Slide 24: Thank You
Thank You