Haier Smart Home Co., Ltd. Class A · SSE:600690
Haier Smart Home Co., Ltd. Class A — Non-Deal Roadshow (2020)
28 slides from Haier Smart Home Co., Ltd. Class A's roadshow presentation, 2020
Slide 1: Haier Smart Home Co., Ltd
Haier Smart Home Co., Ltd
Slide 2: Disclaimer
Disclaimer This presentation comprises certain written materials/slides prepared by Haier Smart Home Co., Ltd. (the "Company"). This presentation does not constitute or form part of any advertisement or marketing material, any offer or invitation to sell or issue, any offer or inducement or invitati
Slide 3: Shareholding Structure
Shareholding Structure Hong Kong Securities D-share Haier Group Others Clearing Company shareholders 40.05% 13.04% 4.26% 42.65% Haier Smart Home 600690 CH 45.87% Haier Electronics 1169 HK Air Kitchen Equipment Home Water Channel Refrigeration Water heater conditioner appliances components laundry pu
Slide 4: Table of Contents
Table of Contents FY19 Performance Review 1 1Q20 Performance Review 9 Investment Highlights 14 Appendix 19 Haier Smart Home FY19&1Q20
Slide 5: FY19 Earnings Review
FY19 Earnings Review RMB bn FY18 FY19 FY19 ex Candy FY18 FY19 FY9 ex Candy 200.8 12.2% 190.3 9.0% 184.1 3.3% FY18 Revenue FY19 FY19 ex Candy Revenue growth FY18 FY19 FY19 ex Candy FY18 FY19 FY19 ex Candy 29.8% 30.0% 5.6% 4.5% 5.1% 29.1% Gross margin Operating margin RMB bn FY18 FY19 FY19 ex Candy FY
Slide 6: Global Revenue by Category & by Quarter
Global Revenue by Category & by Quarter Global revenue by segment Revenue YoY Washing RMB bn machine 23.3% 22% AC 18.3% 14% 7.5% 6.2% 6.0% Refrigerator Kitchen -8.4% 29% appliances 58.4 15% 44.7 29.1 29.5 9.7 29.4 Water heater Equipment & purifier Refrigerator Washing machine AC Kitchen Water Equipm
Slide 7: Global Revenue by Region
Global Revenue by Region Asean Japan Africa Revenue by region 4.0% 3.5% 1.2% FY18 FY19 Europe South 16.4% Overseas Asia Overseas China 47% 6.8% China 41% 53% 59% ANZ 5.8% America 62.4% Revenue growth by region RMB bn 200.8 184.1 15.9% 15.4% *12.0% 9.7% 9.8% 5.8% 6.2% FY18 North America ANZ South Asi
Slide 8: China Revenue by Category
China Revenue by Category Market share Online Offline Change in pct pt 2.3 34.5 Refrigerator 36.7 1.4 Change in pct pt 2 36.3 Washing machine 36.3 2.8 0.1 8.8 Air conditioner 12.2 0.8 0.3 6.2 Kitchen appliance 5.5 0.7 1.8 23.6 Water heater 20.5 2.4 Source: CMM 2.1 13 Water purifier 9.4 3.9 Revenue g
Slide 9: China Revenue by Brand
China Revenue by Brand China revenue by brand Revenue & Revenue growth RMB bn 106.9 30% 106.6 Haier 86% Casarte 8% 3.0% Leader 6% -4.0% FY18 Haier Casarte Leader FY19 Casarte revenue by category % of Volume % of Revenue Casarte revenue by category 3.6% 10.8% 4.3% 13.3% 2.1% 5.9% Refrigerator FY18 2.
Slide 10: Income statement
Income statement FY19 Change RMB bn Revenue 200.8 9.0% driven by strong premium brand & Gross profit Margin 29.8% 0.7 pct deconsolidation of logistics business Increase in marketing & promotions GEA new ERP system Selling expense ratio 16.7% 1.0 pct Increase marketing in West Europe & Southeast Asia
Slide 11: Cash Flow
Cash Flow Cash flow Working capital management RMB mm days 19,142 CCC 15,083 Operating 10.4 cashflow FY18 FY19 5.34 0.6 FY18 FY19 FY18 9M19 9M19 ex Candy FY19 -2 -7,651 Investing -10,965 cashflow Increase in inventory and payables caused by early Chinese New Year in January FY18 FY19 Financing -6,01
Slide 12: Optimizing Leverage
Optimizing Leverage Borrowing trend Debt/Asset RMB bn 36.7 36.2 35.7 71.3% 69.5% 66.8% 33.1 65.3% 2016 2017 2018 2019 2016 2017 2018 2019 Debt/EBITDA ROE 22.9 24.0 20.4 18.6 3.2 2.2 2.2 1.7 2016 2017 2018 2019 2016 2017 2018 2019 Haier Smart Home FY19 &1Q20 8
Slide 13: 1Q20 Performance Review
FY19 Performance Review 1 1Q20 Performance Review 9 Investment Highlights 14 Appendix 19 Haier Smart Home FY19&1Q20
Slide 14: 1Q20 Earnings Review
1Q20 Earnings Review RMB bn 1Q19 1Q20 1Q19 1Q20 48.0 43.1 10.2% 1Q19 Revenue 1Q20 Revenue growth -11.1% 1Q19 1Q20 1Q19 1Q20 29.1% 6.6% 27.4% 4.0% Gross margin Operating margin RMB bn 1Q19 1Q20 1Q19 1Q20 4.4% 2.1 2.5% 1.1 Net profit Net margin Haier Smart Home FY19 &1Q20 10
Slide 15: 1Q20 China Revenue by Category
1Q20 China Revenue by Category Market share Online Offline Change in pct pt 5.9 37.2 Refrigerator 38.7 2.6 Change in pct pt 5.6 39.5 Washing machine 39.6 4.4 4.1 13 Air conditioner 16 3.3 0.4 5.9 Kitchen appliance 6.5 1.3 2.1 26.1 Water heater 25.4 6 Source: CMM Revenue growth by category Volume Vs
Slide 16: Income statement
Income statement 1Q20 Change RMB bn Revenue 43.1 -11.1% Gross profit Margin 27.4% -1.7 pct Selling expense ratio 15.0% 0.1 pct General & admin expense ratio 4.5% 0.6 pct R&D expense ratio 3.7% 0.5 pct Operating profit 1.7 -46.7 % Operating profit margin 4.0% -2.6 pct Haier Smart Home FY19 &1Q20 12
Slide 17: Containing Covid-19
Containing Covid-19 Haier Russia • 3,000 mask & washing machines GEA • USD 103,000，>1,000 units of appliances Haier China • 120,000 masks，100,000 pairs of gloves， 欧洲 • RMB 13 million >500 respirators Haier Europe • RMB 2.5 million of appliances 暂时停产：4/11 • USD 500,000 donated by Haier • 2,600 piec
Slide 18: Investment Highlights
FY19 Performance Review 1 1Q20 Performance Review 9 Investment Highlights 14 Appendix 19 Haier Smart Home FY19&1Q20
Slide 19: Vision and Ecosystem
Vision To be the leading smart home solutions provider in the era of Internet of Things Ecosystem resources No.1 Major Appliances User-oriented Company Ecosystem Ecosystem resources resources Lifetime User World-class Brand Disruptive Portfolio Innovation Ecosystem resources Strong Electric applianc
Slide 20: Investment Highlights
Investment Highlights 1 Integrated household appliances leader with strong market positions globally and growth across all categories 2 Strong portfolio of brands targeting each consumer segment U+ Smart home: a leading interactive smart home solution provider built on a proprietary platform with 3
Slide 21: Growth Strategy in the Era of IoT
Growth Strategy in the Era of IoT 1 To continue expanding globally, in Europe in particular 2 To enhance Haier brand value through technology innovation and business model evolution 3 To develop Shunguang retail and social network to further penetrate the market 4 To develop U+ smart-home solutions
Slide 22: Implementation of Smart Home Strategy
Implementation of Smart Home Strategy Eco revenue 4.8 bn Eco revenue 68% Activation rate 63% MAU 350% % of package purchase 27.5% Haier Smart Home FY19 &1Q20 18
Slide 23: Appendix
FY19 Performance Review 1 1Q20 Performance Review 9 Investment Highlights 14 Appendix 19 Haier Smart Home FY19&1Q20
Slide 24: Consolidated Income Statement
Consolidated Income Statement RMB mm 9M19 9M18 2019 2018 Revenue 148,896 138,227 200,762 184,108 Cost of sales (105,584) (97,969) (140,868) (130,455) Gross profit 43,312 40,258 59,894 53,653 Business tax and surcharges (683) (654) (802) (868) Selling and distribution expenses (22,783) (21,533) (33,6
Slide 25: Balance Sheet
Balance Sheet RMB mm 2019 2018 RMB mm 2019 2018 Current assets Current liabilities Cash and cash equivalents 36,179 38,371 Accounts payables 53,059 47,938 Inventories 28,229 22,411 Short term debt 8,585 6,299 Trade and bills receivables 24,967 24,834 Other Current Liabilities 33,966 28,192 Total cur
Slide 26: Cash Flow Statement
Cash Flow Statement For the year ended 31 Dec (RMB mm) 2019 2018 For the year ended 31 Dec (RMB mm) 2019 2018 Cash flows from operating activities Cash flows from financing activities Net profit 8,206 7,483 Proceeds from borrowings 18,469 15,684 Minority interest 4,128 2,415 Repayment of borrowings
Slide 27: 2020 Industry Outlook in China
2020 Industry Outlook in China Overall Refrigerator Washing machine Air conditioner Kitchen appliance Water heater -10.0% -7.0% -7.0% -6.0% -5.0% -6.0% -15.0% -7.0% -8.0% -4.0% -11.0% -20.0% -9.0% -11.0% -12.0% -12.0% -16.0% -21.0% Volume ASP Revenue Source: AVC Haier Smart Home FY19 &1Q20 23
Slide 28: Thank You
Thank You