Fosun International Limited · HKEX:656
Fosun International — FY2023 Earnings Presentation
61 slides from Fosun International's earnings presentation, Mar 28, 2024
Slide 1: Steady Progress: Focusing on core business
Steady Progress Focusing on core business 2023 Fosun International Annual Results 2024-03-28 | Shanghai
Slide 2: Disclaimer
Disclaimer This document is not intended to provide a full explanation of any relevant matters of Fosun International Limited (“Fosun” or the “Company”). You must refrain from relying on any information set out in this document. No statement, guarantee or undertaking is or will be made or given at p
Slide 3: Table of Contents
Table of Contents 01. Financials 02. Business 03. Strategic Development 3
Slide 4: 2023 Financials: Steady Revenue Growth Continued
2023 Financials: Steady Revenue Growth Continued 1. Financials 2. Business 3. Strategic Development Total Revenue Industrial Operation Profit1 Profit Attributable to Owners of the Parent 198.20 4.90 1.38 Billion/RMB Billion/RMB Billion/RMB Up by 8.6% yoy Up by 20% yoy (excluding impacts of disco
Slide 5: 2023 Financials: Resilient Business Portfolio Composed of Four Segments
2023 Financials: Resilient Business Portfolio Composed of Four Segments 1. Financials 2. Business 3. Strategic Development Revenue (Billion/RMB) Revenue (Billion/RMB) -3.5% -5.4% 48 16% 26% 46.31 54.75 51.78 12% Health 2022 2023 Wealth Wealth 2022 2023 9% -5.7% +3.6% 26.34 65% 25.44 23.84 22.48 72%
Slide 6: 2023 Financials: Core Subsidiaries Being Solid Bedrock
2023 Financials: 4 Core Subsidiaries Being Solid Bedrock 1. Financials 2. Business 3. Strategic Development 4 Core Subsidiaries Yuyuan Fosun Pharma Billion/RMB Billion/RMB +15.8%YOY -5.8% YOY 50.20 58.15 43.81 41.25 Yuyuan Fosun Pharma 28% 29% Fosun Insurance Portugal 2022 2023 2022 2023 Fosun Touri
Slide 7: 2023 Financials: Balance Sheet Optimization Continued
2023 Financials: Balance Sheet Optimization Continued 1. Financials 2. Business 3. Strategic Development Cash, Bank Balances Public Markets Financing 1 Average Cost of Borrowings Adjusted NAV2 and Term Deposits 19.86 Billion/RMB 92.46 Billion/RMB 5.6% 19.0 HKD/Share (excl. consolidated subsidiaries)
Slide 8: 2023 Financials: Positive Credit Rating Action from S&P
2023 Financials: Positive Credit Rating Action from S&P 1. Financials 2. Business 3. Strategic Development Improved Credit Matrix of the Group S&P Global Ratings Report In May 2023, S&P Global lifted Fosun International’s Credit Outlook to “Stable” from “Negative” This positive rating action primari
Slide 9: Stable Dividend Payout to Generate Constant Cash Return to Shareholders
2023 Financials: Stable Dividend Payout to Generate Constant Cash Return to Shareholders 1. Financials 2. Business 3. Strategic Development After being listed for 17 years, Fosun has generated constant cash return Adjusted NAV far exceeded its share price to shareholders, with a cumulative cash divi
Slide 10: Finance Strategy Evolvement Navigates the Group through Economic Cycle
Finance Strategy Evolvement Navigates the Group through Economic Cycle 1. Financials 2. Business 3. Strategic Development Constantly implemented business upgrade and 2023: Remarkable transformation • Constructed a diversified global business portfolio Achievements in Strategic • Substantially scaled
Slide 11: High Quality Globalized Business Portfolio Weathers Economic Down-cycle
1 High Quality Globalized Business Portfolio Weathers Economic Down-cycle 1. Financials 2. Business 3. Strategic Development Overseas business progressed into vital Highlights in global operations growth driver Fosun Overseas Revenue Ten-Year CAGR 55% • Fosun Insurance Portugal: 2023 saw robust Lati
Slide 12: Diversified Financing Tools, Robust Financing Channels and Manageable Costs
2 Diversified Financing Tools, Robust Financing Channels and Manageable Costs 1. Financials 2. Business 3. Strategic Development Smooth completion in onshore and Successfully issued bonds in the offshore syndicates domestic open market Onshore Syndicate Commercial Papers • Fosun’s achievements in no
Slide 13: Accelerated Asset Divestment, with Orderly and Synchronized Debt Deduction
3 Accelerated Asset Divestment, with Orderly and Synchronized Debt Deduction for the Group and Its Subsidiaries 1. Financials 2. Business 3. Strategic Development Accelerated Divestments in non-strategic Continuous Debt Deduction Achieved and non-core assets • In 2022, the non-strategic and non-core
Slide 14: Asset-light operations model yielded result, business expansion funded by industry funds
4 Asset-light operations model yielded result, business expansion funded by industry funds 1. Financials 2. Business 3. Strategic Development Commitment in asset-light operations Strengthen Industry Fund Financing BFC: Real estate securitization Fosun Pharma: Biomedical Industry Fund • BFC Securitiz
Slide 15: Table of Contents
Table of Contents 01. Financials 02. Business 03. Strategic Development 15
Slide 16: Health
Health
Slide 17: Health Segment Landscape
Health Segment Landscape 1. Financials 2. Business 2.1 Health 3. Strategic Development Strategic Continue Global Industry Innovation: Positioning Creating a Comprehensive Medical-Grade, One-Stop and All-in-One Health Ecosystem Devices & Health Services & Pharmaceuticals Diagnostics Consumption Aesth
Slide 18: Health Segment Business Highlights
Health Segment Business Highlights 1. Financials 2. Business 2.1 Health 3. Strategic Development 2023 Total Revenue Fosun Pharma Revenue Fosun Pharma Revenue Excluding COVID-19 Related Products 26% Health v ◼ 46.31 Billion/RMB Although affected by the decline in COVID-19 ◼ 41.25 (-5.85%) Billion/RMB
Slide 19: Highlights - Sustainable and Innovative Product Pipelines
Highlights - Sustainable and Innovative Product Pipelines 1. Financials 2. Business 2.1 Health 3. Strategic Development • Fosun Pharma has developed a revenue structure driven driven by several innovative products. Specifically, revenue of Serplulimab Injection (PD-1), RMB 1,120 million(230.20%YoY)
Slide 20: Business Highlights - Deepening Global Presence
Business Highlights - Deepening Global Presence 1. Financials 2. Business 2.1 Health 3. Strategic Development Under the industry background of VBP and health insurance negotiation, both generic drugs and innovative drugs are facing price challenges. Fosun Pharma has been practicing its international
Slide 21: Medical Devices & Diagnostics Brands
Medical Devices & Diagnostics Brands 1. Financials 2. Business 2.1 Health 3. Strategic Development Aesthetic Medical Professional Medical Device and Respiratory Care Fosun Diagnostics Sisram is the world’s leading energy-based medical Intuitive Surgical is a global Form a JV with Insightec ✓ Fosun D
Slide 22: Innovation and Evolution of Medical Service & Healthcare Management Model
Innovation and Evolution of Medical Service & Healthcare Management Model 1. Financials 2. Business 2.1 Health 3. Strategic Development Focus on Health Service Advantages and Create Differentiated Innovative Models Expansion and Optimization of Health Service Eco-model Providing active health manage
Slide 23: Happiness
Happiness
Slide 24: Happiness Segment Landscape
Happiness Segment Landscape 1. Financials 2. Business 2.2 Happiness 3. Strategic Development Strategic Positioning Serve Family Customers, Elevate Happy Experiences, And Create A Global, Industry-Wide Ecosystem Consumer Brands C-end Platform Cultural Catering Food & Pets, Fashion Jewelry Beauty & We
Slide 25: Happiness Segment Business Highlights
Happiness Segment Business Highlights 1. Financials 2. Business 2.2 Happiness 3. Strategic Development 9.4% 2023 Total Revenue Yuyuan Revenue Fosun Tourism Group Revenue 58.15 17.15 3.7% 19.3% 2.1% Happiness 88.95 ◼ Billion/RMB Revenue increased by 25.7% yoy, mainly driven by the ◼ Billion/RMB The g
Slide 26: Yuyuan – Solid Operations & Continuous Growth in Revenue
Yuyuan – Solid Operations & Continuous Growth in Revenue 1. Financials 2. Business 2.2 Happiness 3. Strategic Development Revenue by Business Profit Attributable to Owners of the Parent Operating Revenue Unit: 100 Million/RMB Unit: 100 Million/RMB • In 2023, Yuyuan recorded RMB 58.15 billion in reve
Slide 27: Fashion Jewelry and Liquor Business Showed Steady Growth
Fashion Jewelry and Liquor Business Showed Steady Growth 1. Financials 2. Business 2.2 Happiness 3. Strategic Development Fashion Jewelry Showed Stable Growth Fashion Jewelry Stores Expanded Fast Fashion Jewelry • The Fashion Jewelry business in 2023 generated a Unit: 100 Million/RMB Number of Store
Slide 28: Grand Yuyuan Construction Started, Yuyuan Lantern Festival Concluded Successfully
Grand Yuyuan Construction Started, Yuyuan Lantern Festival Concluded Successfully 1. Financials 2. Business 2.2 Happiness 3. Strategic Development Yuyuan Phase I continuously improves its Yuyuan Lantern Festival successfully ended operations in two cities Shanghai Yuyuan Garden Lantern Festival for
Slide 29: FTG: Boost in Revenue, Profit turned around
FTG: Boost in Revenue, Profit turned around 1. Financials 2. Business 2.2 Happiness 3. Strategic Development Revenue Adjusted EBITDA Unit: Million/RMB Unit: Million/RMB 17,152 3,730 In 2023, FTG operating revenue1 increased by 19% yoy and grew 28% 13,778 24% compared with the same period of 2019. 59
Slide 30: Core Business Performing Strongly, and Profitability Continuing to Improve
Core Business Performing Strongly, and Profitability Continuing to Improve 1. Financials 2. Business 2.2 Happiness 3. Strategic Development Club Med’s revenue showed robust performance, and adjusted Atlantis Sanya's revenue hitting new high, with growth in adjusted EBITDA increased significantly EBI
Slide 31: Fashion Business Keeping Steady Growth
Fashion Business Keeping Steady Growth 1. Financials 2. Business 2.2 Happiness 3. Strategic Development Lanvin Group continues with business strengthening in 2023, maintaining revenue growth1 Steady growth in a challenging macroeconomic environment Lanvin Group’s total revenue (Million/EUR) • Lanvin
Slide 32: Fosun Sports Keeping High Growth, and Baihe Jiayuan Developing Wedding Serving Business
Fosun Sports Keeping High Growth, and Baihe Jiayuan Developing Wedding Serving Business 1. Financials 2. Business 2.2 Happiness 3. Strategic Development Business Highlights Financial Performance • The Wolves currently ranks 9th in the Premier League, an improvement from RMB 1.108 billion in revenue
Slide 33: Wealth
Wealth
Slide 34: Wealth Segment Landscape
Wealth Segment Landscape 1. Financials 2. Business 2.3 Wealth 3. Strategic Development Strategic Insurance + Asset Management improve capital efficiency and returns, Positioning and build Fosun wealth ecosystem Insurance Asset Management Overseas Insurers Investment Platforms2 Hive Platforms Fosun I
Slide 35: Wealth Segment Business Highlights
Wealth Segment Business Highlights 1. Financials 2. Business 2.3 Wealth 3. Strategic Development 2023 Total Revenue Fosun Insurance Portugal German Private Bank HAL 16% Total Premium Revenue: 5.21 438 ◼ 51.78 Billion/RMB Revenue declined by 5.4% yoy, mainly due to the sale of 12% Wealth 72% Maintain
Slide 36: Insurance Business Highlights
Insurance Business Highlights 1. Financials 2. Business 2.3 Wealth 3. Strategic Development Global Footprints Overseas Insurers: efficient operations become cornerstone of profits 2023 Insurance Premium: 60.6 Billion/RMB Steadily expanding the scale of business, and Prudently manage risk exposure, a
Slide 37: Asset Management (Investment) Business Highlights
Asset Management (Investment) Business Highlights 1. Financials 2. Business 2.3 Wealth 3. Strategic Development Global Footprints for Asset Management Platforms Strategy & Direction Major Investments 2023 Overall Goals Return to the core of “Insurance AUM1 2,288.5 Billion/RMB + Industry + Investment
Slide 38: Asset Management (Property) Business Highlights
Asset Management (Property) Business Highlights 1. Financials 2. Business 2.3 Wealth 3. Strategic Development Property Synergy Dual-core HQ Industry 投资+资管能力 Investment Capability + Asset Management Capability Segments Domestic assets held for sell: RMB 126.2 Billion Domestic AUM (Property): RMB 323.
Slide 39: Intelligent Manufacturing
Intelligent Manufacturing
Slide 40: Intelligent Manufacturing Landscape
Intelligent Manufacturing Landscape 1. Financials 2. Business 2.4 Intelligent Manufacturing 3. Strategic Development Intelligent Manufacturing Industry Green Resources Industry New Functional Industrial Automation Green Low-carbon Intelligent Cars Materials and Digitization Resources Break through t
Slide 41: Intelligent Manufacturing Segment Business Highlights
Intelligent Manufacturing Segment Business Highlights 1. Financials 2. Business 2.4 Intelligent Manufacturing 3. Strategic Development 2023 Total Revenue Hainan Mining 60% Intelligent Manufacturing 40% 12.76 ◼ Billion/RMB Revenue increased by 23.2% yoy mainly driven Revenue 4.679 Billion/RMB Down by
Slide 42: Hainan Mining: Stable Production and Efficiency Enhancement, New Energy Business Emerging
Hainan Mining: Stable Production and Efficiency Enhancement, New Energy Business Emerging 1. Financials 2. Business 2.4 Intelligent Manufacturing 3. Strategic Development Performance steadily rises against odds Iron ore mining and oil and gas production hit new records Revenue Finished Ore (10,000 t
Slide 43: Wansheng: The world's leading new functional materials enterprise
Wansheng: The world's leading new functional materials enterprise 1. Financials 2. Business 2.4 Intelligent Manufacturing 3. Strategic Development Fully gathering development momentum Vigorously Strengthening base building, fully unleashing growth potential + 1.1% Sales (10,000 tons) Duqiao 10.20 Ac
Slide 44: Table of Contents
Table of Contents 01. Financials 02. Business 03. Strategic Development 44
Slide 45: Leaping Through 2023, Embracing Opportunities in 2024
Leaping Through 2023, Embracing Opportunities in 2024 1. Financials 2. Business 3. Strategic Development 3.1 Macro Environment Fosun embraces globalization, diving 2023, Macro Environment 2024, A New Round of deep into industries to drive new becomes more volatile Development momentum • Global econo
Slide 46: Strategy Review: Fosun Shows Resilience Across Economic Cycles
Strategy Review: Fosun Shows Resilience Across Economic Cycles 1. Financials 2. Business 3. Strategic Development 3.2 Strategic Review Fosun: Three Decades of Strategic Industry Evolution Phase I: Phase II: Phase III: Phase IV: Phase V: Founding and Domestic Global Deepening Focusing on Anchoring De
Slide 47: Strategy Outlook: Focusing, Persistency and Prosperity
Strategy Outlook: Focusing, Persistency and Prosperity 1. Financials 2. Business 3. Strategic Development 3.3 Strategic Outlook • Values: Self-improvement, Teamwork, Performance, Contribution to Society • Strategic Positioning: A Global Innovation-Driven Consumer Group Persist in • Strategic Layout
Slide 48: Four Core Capabilities to Empower Future Development
Four Core Capabilities to Enpower Future Development 1. Financials 2. Business 3. Strategic Development 3.4 Core Capabilities Profound Global Operations Innovation-driven Global resources + global momentum Driven by product innovation "Global + China" twin-driver Driven by digital and intelligent in
Slide 49: Internationalization Highlights
Domestic & Overseas: Deepening Global Operations 1. Financials 2. Business 3. Strategic Development 3.4 Core Capabilities Rooted in China Global Reach Global R&D and Business Development: Global Operations: Henlius: HANSIZHUANG® receiving approval in Indonesia Fosun Insurance Portugal: International
Slide 50: Tech Innovation: Enhancing Competitiveness, Igniting Growth
Tech Innovation: Enhancing Competitiveness, Igniting Growth 1. Financials 2. Business 3. Strategic Development 3.4 Core Capabilities Highlights of Technology Innovations in 2023 • The overseas marketing authorization application for the self-developed • Yu Gadern Cultural Catering Science and Techno
Slide 51: Advancing the Creation of Eco-system Value
Advancing the Creation of Eco-system Value 1. Financials 2. Business 3. Strategic Development 3.4 Core Capabilities 2023 Key Results +43% 14.58 million consumer members at the Group level, marking a 43% increase year-on-year from 2022 User Operation 1.4 Billion/RMB The supply chain achieved a RMB 1.
Slide 52: FES: Strengthening Fosun's Industrial Edge
FES: Strengthening Fosun’s Industrial Edge 1. Financials 2. Business 3. Strategic Development 3.4 Core Capabilities Enhance enterprise operation capability to build core competitiveness Industry Exploration Enhance: Enterprise operation and management Ecosystem 01 | Synergy Management System capabil
Slide 53: Organizational Development to Excel Core Capabilities
Organizational Development to Excel Core Capabilities 1. Financials 2. Business 3. Strategic Development 3.5 Organizational Support Precision Management Upgrade: Improved workforce productivity, management innovation and cost reduction to keep the sound development of the organization in line with s
Slide 54: Partnership Mechanism Drives Organizational Momentum
Partnership Mechanism Drives Organizational Momentum 1. Financials 2. Business 3. Strategic Development 3.5 Organizational Support Reinforce the multi-layer partnership mechanism, form partner teams with numerous elites, and lead the key talent management system Fosun’s Pyramid Partner System Featur
Slide 55: Committed to Global Services, Advancing Sustainable Development
Committed to Global Services, Advancing Sustainable Development 1. Financials 2. Business 3. Strategic Development 3.6 ESG E S G Carbon Neutrality Rural Doctors Program Corporate Governance A total of 371 volunteers have been sent to • Continuous optimization/evolution of ERM Target by 2050 support
Slide 56: ESG Capabilities with Excellent Performance
ESG Capabilities with Excellent Performance 1. Financials 2. Business 3. Strategic Development 3.6 ESG ESG Rating Related Associations1 ➢ The only conglomerate in Greater China with an MSCI ESG rating of AA，maintaining its rating for three consecutive years ➢ Selected as a constituent of the MSCI CH
Slide 57: Appendix
FOSUN 22 Appendix FOSUN
Slide 58: Corporate Structure (as of December 31, 2023)
Corporate Structure1（as of December 31,2023) Health2 Happiness3 Wealth Intelligent Manufacturing4 Devices & Healthcare Services & Asset Management Asset Management Technology & Intelligent Pharmaceutical Brand Consumer Tourism & Leisure Insurance Resources & Environment Diagnosis Consumption (Invest
Slide 59: Corporate Structure of Main Business
Corporate Structure of Main Business 1(as of December 31, 2023) Note 1. This simplified corporate structure only illustrates the key investments of the Group. The equity percentage reflects the total direct shareholdings held by the Group, associates, joint ventures and limited partnerships managed
Slide 60: Top Secondary Holdings
Top 20 Secondary Holdings1 As of December 31, 2023 No. Stock Name % Held2 Market Value (Billion/RMB) Market Value (Billion/USD) 1 Fosun Pharma (A+H)3 36.07% 23.38 3.30 2 Yuyuan3 61.85% 14.96 2.11 3 BCP 25.99% 8.47 1.20 4 Hainan Mining3 45.80% 6.15 0.87 5 Ageas 9.08% 5.27 0.74 6 Fosun Tourism Group3
Slide 61: 2023 Fosun International Annual Results
2023 Fosun International Annual Results https://www.fosun.com https://ir.fosun.com Fosun WeChat Fosun IR WeChat Fosun Weibo Fosun Video Fosun Douyin Official Account Official Account Channel