Gome Retail Holdings Limited · HKEX:493

Gome Retail — GOME Electrical Appliances Holding — 9M 2011 Earnings Presentation

18 slides from Gome Retail's earnings presentation, Nov 29, 2011

  1. Slide 1: 2011 First Nine-Month Results Announcement

    2011 First Nine-Month Results Announcement November 29, 2011

  2. Slide 2: Disclaimer

    Disclaimer  This presentation and the accompanying slides (the “Presentation”) which have been prepared by GOME Electrical Appliances Holding Limited (“GOME” or the “Company”) do not constitute any offer or invitation to purchase or subscribe for any securities, and shall not form the basis for or

  3. Slide 3: Today's Presentation

    Today’s Presentation  2011 First-Nine Months Business Review  2011 First-Nine Months Financial Review  Appendix 9M 2011 Results Announcement | Page 2

  4. Slide 4: First Nine Months Business Performance Review

    First Nine Months Business Performance Review Industry  With improving macro-economy trend and rising consumer confidence, the retail industry Trends gained better performance in 2011 Q1. With continue improving macro-economy trend and acceleration of the replacement cycle, some product categories

  5. Slide 5: Income Statement Summary

    Income Statement Summary RMB Million 9M2010 9M2011 Change % Revenue 37,270 43,983 18.0% Consolidated Gross Profit 6,556 8,292 26.5% Profit from Operating Activities 1,868 2,277 21.9% Profit before Tax 1,862 2,369 27.2% Net Profit Attributable to Owners of the Parent Company 1,440 1,791 24.4% Consoli

  6. Slide 6: Improving Consolidated Gross Profit Margin

    Improving Consolidated Gross Profit Margin Steady Growth of Consolidated Gross Profit Margin with Stable Income Structure RMB Million At % of Revenue 17.6% 18.9% RMB Million 6,556 8,292 9M2010 9M2011 Revenue 37,270 43,983 Total Other Income 2,487 2,658 Including: Other Income from 1,714 1,714 Suppli

  7. Slide 7: Operating Cost Effectively Controlled

    Operating Cost Effectively Controlled As % of Revenue 9M2010 9M2011 Change% Selling & Distribution 10.0% 11.1% 1.1 pct pt Rent 3.9% 4.1% 0.2 pct pt Salaries for Sales People 2.2% 2.9% 0.7 pct pt Advertising Expenses 1.2% 1.3% 0.1 pct pt Distribution Costs 0.5% 0.7% 0.2 pct pt Utilities 0.7% 0.7% ---

  8. Slide 8: Steady Profit Margins Growth

    Steady Profit Margins Growth Consolidated Gross Profit Margin Operating Margin Net Profit Margin 6% 5.1% 5.0% 5.2% 5% 4.2% 3.7% 4.1% 4% 3.6% 4.4% 3.9% 3% 3.1% 3.1% 2% 2.5% 1% 0% 9M06 9M07 9M08 9M09 9M10 9M11 9M 2011 Results Announcement | Page 7

  9. Slide 9: Financial Statement Summary and Analysis

    Financial Statement Summary and Analysis RMB Million 9M2010 9M2011 Change % Cash and Cash Equivalents 4,954 5,760 16.3% Pledged Deposits 6,492 6,271 (3.4)% Inventories 10,433 13,603 30.4% Trade Payables 7,422 7,845 5.7% Bill Payables 11,464 12,703 10.8% Inventory Turnover Days 70 days 77 days 7 days

  10. Slide 10: Store Operating Efficiency Continued to Excel

    Store Operating Efficiency Continued to Excel Same Store Sales Growth Comparable Stores: 662 651 647 638 680 669 662 Comparable stores for 2011Q3 is 662. 9M 2011 Results Announcement | Page 9

  11. Slide 11: Appendix

    Appendix 9M 2011 Results Announcement | Page 10

  12. Slide 12: Improving Operating Efficiency

    Improving Operating Efficiency Number of Stores Period-end Sales Area Thousand Sq.m. 3323 3636 2933 3076 3112 2677 2740 10Q1 10Q2 10Q3 10Q4 11Q1 11Q2 11Q3 Average Sales Per Store Average Sales Per Sq.m. RMB Ten Thousand Yuan RMB Yuan 5,184 4,809 4,582 4,989 4,418 4,469 4,446 1,852 1,877 1,627 1,780

  13. Slide 13: Revenue Analysis by Region

    Revenue Analysis by Region Shanghai Shanghai Guangzhou Guangzhou Beijing Beijing Shenzhen Shenzhen Tianjin Tianjin Fuzhou Fuzhou Chengdu Chengdu Others Others 9M2010 9M2011 TOTAL: RMB 37.3 Billion TOTAL: RMB 44.0 Billion 9M 2011 Results Announcement | Page 12

  14. Slide 14: Revenue Mix Analysis by Product

    Revenue Mix Analysis by Product 9M2010 9M2011 Total: RMB 37.3 Billion Total: RMB 44.0 Billion 9M 2011 Results Announcement | Page 13

  15. Slide 15: Improving Gross Profit Margin by Product Categories

    Improving Gross Profit Margin by Product Categories 9M2010 9M2011 20% 15.2% 15% 13.8% 13.6% 13.4% 13.7% 11.8% 12.5% 11.3% 10.8% 10.8% 10.0% 10% 9.3% 8.9% 6.5% 5% 0% AV Air- Refrigerator Tele- Small white Computer Digital conditioner washing communication appliances machine 9M 2011 Results Announceme

  16. Slide 16: Stable Supplier Relationship

    Stable Supplier Relationship Top 5 Suppliers for 9M2010 33.0% 10.2% 7.9% 6.1% 4.5% 4.3% Haier Samsung Midea Nokia Sharp Total Top 5 Top 5 Suppliers for 9M2011 33.5% 9.2% 8.9% 7.0% 4.2% 4.2% Haier Samsung Midea Nokia Sharp Total Top 5 9M 2011 Results Announcement | Page 15

  17. Slide 17: Store Network

    Store Network As of 30 September, 2011 Group GOME Paradise CellStar Flagship Stores 107 89 18 0 Standard Stores (Incl. Supermarket Stores) 883 737 146 0 Specialized Stores 51 4 1 46 Total: 1041 830 165 46 T1 Market 625 466 119 40 T2 Market 416 364 46 6 Net Store Increase in 9M2011: 215 152 37 26 Sto

  18. Slide 18: Thank you

    Thank you 9M 2011 Results Announcement | Page 17

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