Pou Chen Corporation · TWSE:9904
Pou Chen — Investor Presentation (March 2024)
22 slides from Pou Chen's investor presentation, March 2024
Slide 1: March 2024
March 2024 https: //www.pouchen.com E-mail: ir@pouchen.com PROFESSIONALISM DEDICATION INNOVATION SERVICE
Slide 2: Disclaimer
Disclaimer Pou Chen has taken every reasonable care in preparing this presentation. However, please be reminded that the information, materials, opinions and statements contained or referred to in this presentation are all provided on an "as is" basis. None of the aforesaid information, materials, o
Slide 3: Table of Contents
Table of Contents 01 Pou Chen’s Profile P. 3 02 Business Overview P. 5 03 Footwear Business – Yue Yuen P. 7 04 Retail Business – Pou Sheng P. 11 05 Financial Highlights P. 15 2
Slide 4: Pou Chen’s Profile
Pou Chen’s Profile To benefit healthy lives by providing the most valuable solutions in the sports industry and beyond. • Founded in 1969; listed on the TWSE in 1990 • Paid in Capital: NT$29,468 mn • Market Cap.: NT$91,056 mn (@NT$30.90 as of 2023/12/29) • Revenue: NT$246,634 mn (FY2023 Consolidated
Slide 5: Group Structure
Group Structure 寶成工業 Pou Chen Corp. (9904.tw) Footwear Retail Others 51.11% (31.97%)(1) Real Estate Yue Yuen Pou Sheng Development (00551.hk) (03813.hk) Shoes Retail Sales network Hotel Operation Upstream Business Brand Licensee Retail via Pou Sheng(2) (1) Pou Chen through its 51.11% owned subsidiar
Slide 6: Business Overview
Business Overview Segment Revenue Pou Chen FY2020 FY2021 FY2022 FY2023 YoY (Consolidated) (NT$mn; %) (NT$mn; %) (NT$mn; %) (NT$mn; %) (%) Footwear 139,875 56.0% 137,660 57.4% 184,653 69.0% 157,726 63.9% -14.6% Retail 109,361 43.7% 101,485 42.3% 81,993 30.7% 87,973 35.7% +7.3% Others 718 0.3% 739 0.3
Slide 7: Business Overview
Business Overview Pou Chen’s 2M2024 unaudited consolidated sales decreased Y-o-Y by 1.9% to NT$42.2 bn. Revenue – Footwear Revenue - Retail (NT$mn) (NT$mn) 184,653 139,875 157,726 137,660 109,361 101,485 81,993 87,973 2020 2021 2022 2023 2020 2021 2022 2023 Revenue – Others Revenue - Total (NT$mn) (
Slide 8: Footwear Business – Yue Yuen
Footwear Business – Yue Yuen A global leader in the manufacture of athletic, athleisure, casual and outdoor footwear Diversified portfolio of brand customers and production sites Responsiveness, flexibility, innovation, design and development capabilities, and superior quality Country % of Vol
Slide 9: Yue Yuen – Financial Highlights
Yue Yuen – Financial Highlights Product Category FY2020 FY2021 FY2022 FY2023 YoY (US$mn; %) (US$mn; %) (US$mn; %) (US$mn; %) (%) Shoes(1) 4,373 51.8% 4,451 52.2% 5,707 63.6% 4,657 59.0% -18.4% Soles, Components, Others 363 4.3% 463 5.4% 496 5.5% 402 5.1% -19.0% Pou Sheng 3,709 43.9% 3,619 42.4% 2,76
Slide 10: Yue Yuen – Financial Highlights
Yue Yuen – Financial Highlights Yue Yuen’s 2M2024 unaudited sales decreased Y-o-Y by 5.0% to US$1.3 bn. Revenue Gross Margin (US$mn) (US$mn) 24.0% 23.8% 24.4% 21.7% 8,445 8,533 8,970 7,890 1,831 2,048 2,137 1,925 2020 2021 2022 2023 2020 2021 2022 2023 Net Income (Loss)(1) Net Margin (US$mm) 296 275
Slide 11: Footwear Business – Gross Margin Trend
Footwear Business – Gross Margin Trend 22.8 20.2 20.3 19.7 19.2 19.3 18.7 18.9 19.2 18.2 17.9 18.5 18.2 18.2 18.3 17.1 17.8 17.9 15.7 16.0 16.8 12.7 11.7 6.0 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 FY2018 FY2019 FY2020 F
Slide 12: Retail Business – Pou Sheng
Retail Business – Pou Sheng One of the largest retailers and sports services providers for sportswear brands in Greater China Brand Partners: Nike, adidas, Skechers, Puma, Under Armour and Converse Channel Mix: Brick & Mortar Retail 73%; Omni-Channel 27% (FY2023 Pou Sheng Revenue) Brick & Mo
Slide 13: Pou Sheng – Financial Highlights
Pou Sheng – Financial Highlights Financial Highlights FY2020 FY2021 FY2022 FY2023 YoY (RMB mn; %) (RMB mn; %) (RMB mn; %) (RMB mn; %) (%) Revenue 25,611 23,350 18,638 20,064 +7.7% Gross Profit 7,826 8,299 6,688 6,756 +1.0% Gross Margin 30.6% 35.5% 35.9% 33.7% -2.2 pp Operating Income 661 928 415 736
Slide 14: Pou Sheng – Financial Highlights
Pou Sheng – Financial Highlights Pou Sheng’s 2M2024 unaudited sales decreased Y-o-Y by 6.7% to RMB3.8 bn (US$0.5 bn). Revenue Operating Margin (RMB mn) (RMB mn) 25,611 4.0% 3.7% 23,350 18,638 20,064 2.6% 2.2% 661 928 736 415 2020 2021 2022 2023 2020 2021 2022 2023 Net Income(1) Net Margin (RMB mn) 2
Slide 15: Pou Sheng – Operating Margin Trend
Pou Sheng – Operating Margin Trend 7.1 7.2 6.2 5.7 4.9 5.4 5.2 4.8 4.5 3.6 3.5 3.0 2.7 4.6 4.9 3.0 3.5 3.1 1.3 1.7 0.8 0.3 -0.9 -1.3 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 4.3%
Slide 16: Financial Highlights – Pou Chen (Consolidated)
Financial Highlights – Pou Chen (Consolidated) Segment Revenue Segment Income(1) Footwear Retail Others Footwear Retail Others 0.3% 0.3% 0.3% 0.4% 2.7% 2.6% 2.0% 2.1% 100% 100% 13.4% 18.3% 30.7% 35.7% 27.1% 29.8% 80% 43.7% 42.3% 80% 60% 60% 40% 40% 84.6% 79.6% 69.0% 70.2% 67.6% 63.9% 56.0% 57.4% 20%
Slide 17: Financial Highlights – Pou Chen (Consolidated)
Financial Highlights – Pou Chen (Consolidated) (NT$mn) FY2020 FY2021 FY2022 FY2023 YoY Revenue 249,954 239,884 267,497 246,634 -7.8% Gross Profit 54,751 58,223 64,606 61,111 -5.4% Gross Margin 21.9% 24.3% 24.2% 24.8% +0.6 pp Operating Expenses 56,862 55,747 54,010 50,895 -5.8% Operating Income (Loss
Slide 18: Financial Highlights – Pou Chen (Consolidated)
Financial Highlights – Pou Chen (Consolidated) Revenue Gross Margin (NT$mn) (NT$mn) 24.3% 24.2% 24.8% 249,954 267,497 246,634 21.9% 239,884 54,751 58,223 64,606 61,111 2020 2021 2022 2023 2020 2021 2022 2023 Net Income(1) Net Margin / EPS (NT$mn) (NT$) 6.0% 4.7% 4.3% 1.9% 14,439 4.90 4.29 12,645 10,
Slide 19: Dividend Policy
Dividend Policy FY2019 FY2020 FY2021 FY2022 FY2023 Dividend / Per Share - Pou Chen (NT$) 1.25 0.50 1.50 1.30 TBA (Cash 1.25) (Cash 0.50) (Cash 1.50) (Cash 1.30) - Yue Yuen (HK$) 1.10 n/a 0.20 1.10 0.90 (Interim 0.40 / Final 0.70) (Final 0.20) (Interim 0.40 / Final 0.70) (Interim 0.20 / Final 0.70) -
Slide 20: Sustainability
Sustainability The World’s Only FLA-Accredited Footwear Manufacturer. Upholding the obligations of FLA’s participating suppliers by actively participating in various projects, supporting relevant industry initiatives, including singing “Responsible Recruitment” jointly promulgated by FLA and America
Slide 21: Growth Strategy
Growth Strategy Irreplaceable Partnership 5 Values 4 Directions Speed 3 Segments Design 2 E2E Platform Flexibility Footwear Equipment OEM/ODM The Most 1 Valuable Innovation Apparel Platform Material Retail Quality Accessories Process Sustainability Unique Strategic Value 20
Slide 22: THANK YOU Q&A
THANK YOU Q&A