Milan Station Holdings Limited · HKEX:1150
Milan Station — H1 2013 Earnings Presentation
24 slides from Milan Station's earnings presentation, August 2013
Slide 1: Milan Station Holdings Limited 2013 Interim Results Corporate Presentation
Milan Station Holdings Limited (Stock code: 1150) 2013 Interim Results Corporate Presentation August 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
Highlights Business Review Outlook and Future Plans Financial Review Open Forum 3
Slide 4: Highlights
Highlights
Slide 5: Highlights of the period
Conservative spending attitude particularly on premium priced luxury 1. goods from the PRC & HK consumers Focused on marketing low- to mid-priced & fast-moving products to 2. cater the structural change in consumption pattern Continued to optimize store mix in HK & the PRC & improve store 3. e
Slide 6: Business Review
Business Review
Slide 7: Hong Kong
Hong Kong Revenue: HK$261.6 million 14.1% yoy Focused on marketing low- to mid- Sales proportion of low- to mid-priced priced and fast-moving products products: • HK$10,001-30,000: 6.0pps to 21.7% Innovative low-cost sales channels • HK$30,001-50,000: 0.8pps to 6.3% to boost sales and enhanc
Slide 8: The PRC
The PRC Revenue: HK$32.0 million 25.9% yoy Operated five “Milan Station” • PRC sales contribution 1.7 ppt to retail shops in the PRC, with 4 in 9.8% of the total revenue (1H2012: Beijing and 1 in Shanghai 11.5%) Adhered to its long-term development targets for the PRC • Sales of products over
Slide 9: Macau
Macau Revenue: HK$34.9 million 31.7% yoy Benefited from the steady • Delivered outstanding development of the local sales performance gaming and tourism sectors Operated one “Milan Station” • Contributed 10.6% of total retail shop at Rua de S. revenue (1H2012: 7.1%) Domingos Established new s
Slide 10: Online Shopping Business
Online Shopping Business *Revenue: HK$7.4million 252.4% yoy Established the first directly managed large • Click-rate of HK site increased online shopping platform, milanstation.net, in substantially, while average order price October 2012 is trending up Launched milanstation.cc in December 201
Slide 11: Overseas Expansion and Sales Counters on Vessels
Overseas Expansion Sales Counters on Vessels – Opened the first – Operated 3 sales counters on the Star Cruises under Milan Station store the Milan Station brand in 1H2013* in Singapore in July 2013 (Orchard Road) – A successful attempt in explore cost-effective – Operated under sales channels franc
Slide 12: Promotional Activities and Customer Loyalty Programme
Promotional Activities Customer Loyalty Programme Title Sponsorship Joined force with local banks, credit TV Entertainment shows, TV card companies, and government As of 30 June 2013, total number of drama tourism institutes VIP clients increased to 13,433 (30 ↓Now ←Quality Tourism June 2012:
Slide 13: Outlook and Future Plans
Outlook and Future Plans
Slide 14: Cautiously optimistic about luxury goods markets in the PRC and Hong Kong
Remain cautiously optimistic about the outlook of the luxury goods markets in the PRC & Hong Kong Challenges Ahead Opportunities Macroeconomic environment does not show • Continuous increase in national income of the signs of obvious improvement PRC consumers will incubate tremendous consumption p
Slide 15: Gear up to capture business opportunities upon economic recovery
Gear up to capture business opportunities upon economic recovery for long term development Strategies Maintain leading position in • Strengthen leading position in HK and identify the right products Hong Kong market for changing consumer tastes • Optimize store mix and enhance store efficiency • C
Slide 16: PRC store expansion: Beijing, Shanghai and new cities
Beijing and Shanghai Expand to potential Prudent and selective Improve rental mix and being the strategic cities through local approach in store store efficiency existing market of our PRC partnership - JV or expansion stores business franchising agreement 1 new store in Planning for Chengdu to be f
Slide 17: 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 17
Slide 18: Financial Review
Financial Review
Slide 19: Financial results for six months ended June 2013
(HK$’000) (%) For The Six Months Ended 30 June 2013 2012 YOY Change Revenue 328,502 374,336 -12.2% Cost of Sales 259,653 296,268 -12.4% Gross Profit 68,849 78,068 -11.8% EBIT (9,115) 3,086 n.a. EBITDA (3,694) 6,663 n.a. (Loss) / Profit Attributable to Equity (10,315) 386 n.a. Holders of the Company
Slide 20: Operational Data and Key Financial Indicators
Operational Data 2013 2012 YOY Change For The Six Months Ended 30 June Inventories (HK$’000) 137,297 116,989 +17.4% Inventory Turnover (days) 88.1 83.3 +4.8 days Debtor’s Turnover (days) 3.8 3.7 +0.1 days Key Financial Indicators (HK$’000) 2013.06.30 2012.12.31 Change Cash and Cash Equivalents 82,16
Slide 21: 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) 374.3 328.5 374.3 328.5 374.3 328.5 11.5% 9.8% 24.4% 24.9% 7.1% 10.6% 41.9% 43.4% 16.5% 21.8% 5.6% 5.9% 81.4% 79.6% 58.1% 56.6% 53.5% 47.4% 1H2012 1H2013 1H2012 1H2013 1H2012 1H2013 Unused S
Slide 22: Gross profit by product types, regions and price ranges
By product types By regions By price ranges HK$ Mn HK$ Mn HK$ Mn 8.1 12.5 11.1 35.4 45.8 7.9 26.5 38.0 4.4 3.6 16.2 64.3 16.4 51.1 39.1 32.1 28.9 23.6 1H2012 1H2013 1H2012 1H2013 1H2012 1H2013 Unused products Second-hand products Hong Kong The PRC Macau Within HK$10,000 HK$ 10,001-30,000 HK$30,001-5
Slide 23: Operating expenses breakdown
Operating expenses breakdown Selling expense - Rents and rates HK$ mn HK$ ‘000 Administrative and other operating expenses Rent and rate % of revenue Selling expenses 40,000 8.3% 9.9% 9.0% Cost of sales 30,000 400 7.0% 20,000 25.6 31,179 32,420 10,000 5.0% 54.1 25.8 0 3.0% 300 57.0 1H2012 1H2013 Sel
Slide 24: Q&A Session
Q&A Session
Milan Station Holdings — H1 2013 Earnings Presentation on 6ix