Milan Station Holdings Limited · HKEX:1150
Milan Station — FY2012 Earnings Presentation
24 slides from Milan Station's earnings presentation, March 2013
Slide 1: Milan Station Holdings Limited 2012 Annual Results Announcement
Milan Station Holdings Limited (Stock code: 1150) 2012 Annual Results Announcement March 2013
Slide 2: Disclaimer
These materials have been prepared by Milan Station Holdings Limited (the “Company” or “Milan Station”) solely for information use during its investor presentation and may not be taken away, reproduced, redistributed, disseminate, divulge or passed on, directly or indirectly, to any other person (wh
Slide 3: Agenda
2012 Annual Results Highlights Financial Review Business Review Outlook and Future Plans Open Forum 3
Slide 4: 2012 Annual Results Highlights
2012 Annual Results Highlights
Slide 5: 2012 results highlights
Retail sector in the PRC and Hong Kong remained very challenging in 1. 2012, particularly high-end and luxury goods market Rationalized product mix and focused on sales of mid-priced and fast- 2. moving products Mitigated overall rental pressure by reviewing store portfolio and 3. relocating r
Slide 6: Financial Review
Financial Review
Slide 7: Financial results summary
(HK$’000) (%) For The Year Ended 31 December 2012 2011 YOY Change Revenue 676,444 879,802 -23.1% Cost of Sales 532,461 666,464 -20.1% Gross Profit 143,983 213,338 -32.5% EBIT (7,920) 64,303 n.a. EBITDA 762 69,048 -98.9% (Loss) / Profit Attributable to Equity (13,918) 47,964 n.a. Holders of the Compa
Slide 8: Operational Data and Key Financial Indicators
Operational Data (HK$’000) 2012 2011 YOY Change For The Year Ended 31 December Inventories 115,386 154,163 -25.2% Inventory Turnover (days) 92.6 66.6 +26.0 days Debtor’s Turnover (days) 4.8 3.9 +0.9 days Creditor’s Turnover (days) - - - Key Financial Indicators (HK$’000) 2012 2011 YOY Change As At 3
Slide 9: Revenue by product types, regions and price ranges
By product types By regions By price ranges HK$ Mn HK$ Mn HK$ Mn (% of revenue) (% of revenue) (% of revenue) 879.8 676.4 879.8 676.4 879.8 676.4 8.6% 11.7% 5.5% 22.1% 26.1% 7.2% 42.9% 44.6% 15.5% 18.3% 4.8% 5.8% 85.9% 81.1% 57.1% 55.4% 57.6% 49.8% 2011 2012 2011 2012 2011 2012 Unused Second-handed
Slide 10: Gross profit by product types, regions and price ranges
By product types By regions By price ranges HK$ Mn HK$ Mn HK$ Mn 15.4 25.6 119.7 14.7 110.3 22.0 56.9 83.7 8.6 180.3 8.2 36.9 114.5 31.9 101.6 67.5 65.5 54.2 2011 2012 2011 2012 2011 2012 Unused products Second-hand products Hong Kong The PRC Macau Within HK$10,000 HK$ 10,001-30,000 HK$30,001-50,000
Slide 11: Operating expenses breakdown
Operating expenses breakdown Rents and rates HK$ mn HK$ ‘000 Administrative and other operating expenses Rent and rate % of revenue Selling expenses 80,000 10.0% 1,000 6.5% 8.9% 8.0% Cost of sales 60,000 6.0% 40,000 57,263 60,056 4.0% 800 53.7 20,000 2.0% 104.2 0 0.0% 52.3 2011 2012 600 109.4 Salary
Slide 12: Business Review
Business Review
Slide 13: Hong Kong
Hong Kong Revenue: HK$548.6 million 27.4% yoy Added more mid-priced and fast-moving Sales proportion of mid-priced products: products to boost sales • HK$10,001-30,000: 3.2pps to 17.6% • HK$30,001-50,000: 0.9pp to 5.8% launched a clearance outlet in Causeway • Improved cash flow management B
Slide 14: The PRC
The PRC Revenue: HK$79.4 million 4.3% yoy Operated four “Milan Station” retail • Slower growth in sales affected by subdued shops in Beijing and Shanghai in 2012 macroeconomic environment • PRC sales contribution to 11.7% of the total revenue (2011: 8.6%) Proactively reviewed and adjusted •
Slide 15: Macau
Macau Revenue: HK$48.4 million 1.0% yoy Benefited from the steady • Delivered stable and satisfactory development of the local gambling sales performance and tourism sectors Operated one “Milan Station” • Contributed 7.2% of total retail shop revenue (2011: 5.5%) 15
Slide 16: Online Shopping Business
Online Shopping Business Revenue: HK$5.0 million Established the first directly managed large • Expand our product distribution channels online shopping platform, milanstation.net, in October 2012 and customer reach • Cost-effective marketing tool and free of Launched milanstation.cc in December
Slide 17: Marketing, customer loyalty and promotional activities
Mass Media Customer Loyalty Programme Title Sponsorship Joined force with local As of 31 December 2012, total Movie premier, magic show banks to offer discount to number of VIP clients increased to to and concerts credit card holders 12,775 (31 Dec 2011: 10,645) In 2012, total sales from VIP
Slide 18: Outlook and Future Plans
Outlook and Future Plans
Slide 19: Prudently optimistic about the outlook of luxury goods markets
Prudently optimistic about the outlook of the luxury goods markets in the PRC and Hong Kong Challenges Ahead Opportunities The uncertain macroeconomic environment • The emergence of the PRC’s middle class and continue to pose challenges for the luxury increasing demand for brand and fashion goods
Slide 20: Strategies
Constantly exploring new business opportunities, displaces high flexibilities and adaptability Strategies Product mix and procurement Continue to adjust and rationalize the product mix to cater market changes and customer preferences Source low-priced and high quality second-hand products from
Slide 21: Refined retail strategies and online expansion
Refined and flexible strategies Expand business opportunity for retail stores through online sales platform • Strengthen leading position in HK • Expand customer reach and boost sales • Identify the right products for in a cost-effective way changing consumer tastes • Further promote online business
Slide 22: PRC store expansion plan
Improve store efficiency Recruit senior Explore different means Prudent and selective and operational management with solid to expand PRC business, approach in store management of existing retail experience to incl. partnership, JV and expansion stores oversee PRC business franchising agreement Form
Slide 23: Leading position in market niche with strong brand recognition
Leading position in market niche Well-established retail network with strong brand recognition in prime locations Broad variety of Capable management international brand team names A recognized market leader in retailing of unused and second-hand luxury branded handbags and apparel products 23
Slide 24: Q&A Session
Q&A Session
Milan Station Holdings — FY2012 Earnings Presentation on 6ix