Pou Chen Corporation · TWSE:9904
Pou Chen — Investor Presentation (August 2024)
23 slides from Pou Chen's investor presentation, August 2024
Slide 1: August 2024
August 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$103,138 mn (@NT$35.00 as of 2024/06/28) • Revenue: NT$128,616 mn (1H2024 Consolidate
Slide 5: Group Structure
Group Structure 寶成工業 Pou Chen Corp. (9904.tw) Footwear Retail Others 51.11% (31.97%)(1) Real Estate Yue Yuen Pou Sheng Development (00551.hk) (03813.hk) Shoes Retail Sales network Hotel Operation Upstream Business Brand Licensee Retail via Pou Sheng(2) (1) Pou Chen through its 51.11% owned subsidiar
Slide 6: Business Overview
Business Overview Segment Revenue Pou Chen FY2021 FY2022 FY2023 1H2023 1H2024 YoY (Consolidated) (NT$mn; %) (NT$mn; %) (NT$mn; %) (NT$mn; %) (NT$mn; %) (%) Footwear 137,660 57.4% 184,653 69.0% 157,726 63.9% 78,699 61.7% 84,166 65.4% +6.9% Retail 101,485 42.3% 81,993 30.7% 87,973 35.7% 48,283 37.9% 4
Slide 7: Business Overview
Business Overview Pou Chen’s 7M2024 unaudited consolidated sales increased Y-o-Y by 2.9% to NT$150.9 bn. Revenue – Footwear Revenue - Retail (NT$mn) (NT$mn) 184,653 137,660 157,726 101,485 87,973 78,699 84,166 81,993 48,283 44,002 2021 2022 2023 1H2023 1H2024 2021 2022 2023 1H2023 1H2024 Revenue – O
Slide 8: Footwear Business – Yue Yuen
Footwear Business – Yue Yuen A global leader in the manufacture of athletic/outdoor and casual footwear Diversified portfolio of world-renowned brand customers and production sites Responsiveness, flexibility, innovation, design and development capabilities, and superior quality Pairage Countr
Slide 9: Yue Yuen – Financial Highlights
Yue Yuen – Financial Highlights Product Category FY2021 FY2022 FY2023 1H2023 1H2024 YoY (US$mn; %) (US$mn; %) (US$mn; %) (US$mn; %) (US$mn; %) (%) Shoes(1) 4,451 52.2% 5,707 63.6% 4,657 59.0% 2,379 57.3% 2,411 60.1% +1.3% Soles, Components, Others 463 5.4% 496 5.5% 402 5.1% 195 4.7% 223 5.5% +14.6%
Slide 10: Yue Yuen – Financial Highlights
Yue Yuen – Financial Highlights Yue Yuen’s 7M2024 unaudited sales decreased Y-o-Y by 1.5% to US$4.7 bn. Revenue Gross Margin (US$mn) (US$mn) 24.0% 23.8% 24.4% 24.3% 23.5% 8,533 8,970 7,890 4,155 4,015 2,048 2,137 1,925 978 975 2021 2022 2023 1H2023 1H2024 2021 2022 2023 1H2023 1H2024 Net Income(1) N
Slide 11: Footwear Business – Gross Margin Trend
Footwear Business – Gross Margin Trend 22.8 19.7 19.2 20.3 19.3 18.2 17.9 18.5 19.2 18.2 18.2 18.3 17.9 17.1 17.8 16.0 18.0 16.8 15.7 12.7 11.7 6.0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 FY2019 FY2020 FY2021 FY2022 FY2023 1H2024
Slide 12: Retail Business – Pou Sheng
Retail Business – Pou Sheng One of the largest integrated retailers and distributors for sportswear brands in the Greater China region Brand Partner: Nike, adidas, Skechers, Puma, Under Armour and Converse Channel Mix: Brick & Mortar Retail 74%; Omni-Channel 26% (1H2024 Pou Sheng Revenue) Br
Slide 13: Pou Sheng – Financial Highlights
Pou Sheng – Financial Highlights Financial Highlights FY2021 FY2022 FY2023 1H2023 1H2024 YoY (RMB mn; %) (RMB mn; %) (RMB mn; %) (RMB mn; %) (RMB mn; %) (%) Revenue 23,350 18,638 20,064 10,960 9,983 -8.9% Gross Profit 8,299 6,688 6,756 3,671 3,416 -6.9% Gross Margin 35.5% 35.9% 33.7% 33.5% 34.2% +0.
Slide 14: Pou Sheng – Financial Highlights
Pou Sheng – Financial Highlights Pou Sheng’s 7M2024 unaudited sales decreased Y-o-Y by 9.1% to RMB11.2 bn (US$1.6 bn). Revenue Operating Margin (RMB mn) (RMB mn) 4.8% 4.0% 4.3% 23,350 3.7% 18,638 20,064 2.2% 10,960 9,983 928 736 415 473 483 2021 2022 2023 1H2023 1H2024 2021 2022 2023 1H2023 1H2024 N
Slide 15: Pou Sheng – Operating Margin Trend
Pou Sheng – Operating Margin Trend 7.1 7.2 6.2 5.7 5.4 4.9 5.2 5.1 4.8 4.5 3.6 3.5 3.1 3.5 3.0 2.7 1.3 1.7 0.3 0.8 -0.9 -1.3 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 FY2019 FY2020 FY2021 FY2022 FY2023 1H2024 5.4% 2.6% 4.0% 2.2% 3.7
Slide 16: Financial Highlights – Pou Chen (Consolidated)
Financial Highlights – Pou Chen (Consolidated) Segment Revenue Segment Income(1) Footwear Retail Other Footwear Retail Other 0.3% 0.3% 0.4% 0.4% 0.4% 2.6% 2.0% 2.1% 2.3% 1.9% 100% 100% 13.4% 18.3% 24.7% 20.6% 30.7% 35.7% 34.2% 29.8% 80% 42.3% 37.9% 80% 60% 60% 40% 40% 84.6% 79.6% 73.0% 77.5% 69.0% 6
Slide 17: Financial Highlights – Pou Chen (Consolidated)
Financial Highlights – Pou Chen (Consolidated) (NT$mn) FY2021 FY2022 FY2023 Revenue 239,884 267,497 246,634 Gross Profit 58,223 64,606 61,111 Gross Margin 24.3% 24.2% 24.8% Operating Expenses 55,747 54,010 50,895 Operating Income 2,476 10,596 10,216 Operating Margin 1.0% 4.0% 4.1% Non-operating Inco
Slide 18: Financial Highlights – Pou Chen (Consolidated)
Financial Highlights – Pou Chen (Consolidated) (NT$mn) 1H2023 1H2024 YoY Revenue 127,462 128,616 +0.9% Gross Profit 30,437 31,680 +4.1% Gross Margin 23.9% 24.6% +0.7 pp Operating Expenses 26,615 24,590 -7.6% Operating Income 3,822 7,090 +85.5% Operating Margin 3.0% 5.5% +2.5 pp Non-operating Income,
Slide 19: Financial Highlights – Pou Chen (Consolidated)
Financial Highlights – Pou Chen (Consolidated) Revenue Gross Margin (NT$mn) (NT$mn) 24.3% 24.8% 24.6% 24.2% 23.9% 239,884 267,497 246,634 127,462 128,616 58,223 64,606 61,111 30,437 31,680 2021 2022 2023 1H2023 1H2024 2021 2022 2023 1H2023 1H2024 Net Income(1) Net Margin / EPS (NT$mn) (NT$) 6.0% 6.3
Slide 20: Dividend Policy
Dividend Policy FY2019 FY2020 FY2021 FY2022 FY2023 Dividend / Per Share - Pou Chen (NT$) 1.25 0.50 1.50 1.30 1.10 (Cash 1.25) (Cash 0.50) (Cash 1.50) (Cash 1.30) (Cash 1.10) - 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 /
Slide 21: 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 22: 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 21
Slide 23: THANK YOU
THANK YOU