corporate presentation - corpasia.net corporate... · five year plan require ... brand innovative...
Post on 09-Mar-2018
215 Views
Preview:
TRANSCRIPT
Agenda
Introduction
Financial Summary
Retailing Overview
Marketing Strategy
Operations Review
Open Forum
2
Become the No.1 national beauty spa chain in China, in store growth, brand image and
attractiveness for franchisees
Recognized as
“Total Skincare Solutions Expert”
Strategic Objectives
3
Five Year Plan
Require Business model Organization Infrastructure
We will execute our strategy in phases 2010 Preparation and set up 2011 & 2012 Rapid roll out in China 2013 & 2014 International expansion
4
Professional Spa service
Products with US patent
Distribution network
License training
Research & Development
Manufacture of beauty and skin care products
Distribution of products
Government certified beauty training schools
Training of 7 professional beautician licenses
Department Store Counters
SPAs
Franchised SPA
Self-owned SPA
ISO accredited Factories in
Shanghai & Taipei
4 Logistics centers in China
Core Business
5
• Build a world-class leadership team with proven track record
– CEO: John Tseng
• Corporate VP, Eastman Kodak
• MD of Goodyear Greater China
– CFO/COO: Jacky Chan
• GM of Kodak China
• GM of Evergreen Packaging China
– VP Retail Operation: Antonio Lee
• Kodak Senior VP Retail Operation, Greater Asia Region
• Developed and managed over 10,000 stores
– CMO: Shirley Tai
• GM of Estee Lauder HK
• GM of Clinique China
Organization & Team
6
Summarized Results in 1H2011
Turnover increased by 25.6% to HK$288.5 million
Net profit surged by 280.9% to HK$60.4 million
Gross margin maintain at a high level of 78%
Net cash increased slightly to HK$577.1 million with no borrowing despite dividend paid out of HK$90 million during the first six months
Interim dividend of HK$0.035 per share (Div. payout at 115.9%), same as 1H2010
8
Financial Summary
HK$ Million Chg %
2010 2011
Turnover 229.6 288.5 25.6%
Gross profit 159.4 224.4 40.8%
Profit before tax 36.6 80.1 119.0%
Net profit 15.8 60.4 280.9%
Dividend per share (HK cents)
- Interim (HK cents) 3.50 3.50 0.0%
Dividend payout (%) 440.7 115.9 -324.8
Basic EPS (HK cents) 0.79 3.02 280.2%
For six months ended
30 June,
9
Waterfall Chart – Change in net profit
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
HK
$000
1H2010 NET PROFIT to 1H2011 NET PROFIT
10
-120%
-80%
-40%
0%
40%
80%
120%
160%
200%
240%
280%
-120,000
-80,000
-40,000
-
40,000
80,000
120,000
160,000
Net profit (HK$'000) Net profit yoy growth rate
Net Profit Changes
Net profit growth momentum restored.
House
Clean Up
11
Key Ratios For year ended For six months Good /
31 December, ended 30 June, Chg Improv't
2010 2011
A/R days * 14 days 14 days -
A/P days * 37 days 52 days 15 days
Inventory turnover days * 131 days 111 days -20 days
ROE * (%) 4.0 15.5 11.5 pts
ROA * (%) 3.3 12.8 9.5 pts
Cash (HK$ million) 575.5 577.1 0.3%
Gearing Ratio Net cash Net cash N/A
Dividend payout (%) 511.7 115.9 -395.8 pts
Basic EPS (HK cents) 1.56 3.02 93.0%
* Annualised for comparison purpose.
Cash represents 61.0% of total assets as of 30 June 2011.
12
Stable Dividends and High Dividend Payout History
Historic dividend payout ratio >70%
0%
100%
200%
300%
400%
500%
600%
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
FY2008 FY2009 FY2010 1H2011
Div
ide
nd
pay
ou
t ra
tio
(%
)
HK
$'0
00
Stable Dividends
Interim dividend Final dividend Dividend payout ratio
13
Turnover Analysis for 1H2011 By Region By Products / Service
-27.4% yoy
1.2%
37.3% yoy
-4.2% yoy
19.0%
79.8%
The PRC Taiwan Others (incl. Hong Kong, Macau & Malaysia)
1.3%
98.7%
- 18.8% yoy
26.6% yoy
Product Sales Service Income
14
Geographical Revenue Breakdown
Expressed in HK$'000 1H2011 % 1H2010 % Variance Var (%)
PRC 230,278 80% 167,730 73% 62,548 37.3%
Taiwan 54,828 19% 57,229 25% (2,402) -4.2%
Others 3,370 1% 4,646 2% (1,275) -27.4%
Total 288,476 100% 229,605 100% 58,871 25.6%
Revenue By Type Breakdown
Expressed in HK$'000 1H2011 % 1H2010 % Variance Var (%)
Product sales 284,681 99% 224,889 98% 59,792 26.6%
Services 3,795 1% 4,674 2% (878) -18.8%
Entrustment 0 0% 42 0% (43) -102.4%
Total 288,476 100% 229,605 100% 58,871 25.6%
Distribution Network in Greater China
As at 30 June 2011 Franchisee
owned Entrusted
Self-
owned
Self-
owned
Total Spas Counters Spas Counters
The PRC 1,132 1,079 18 2 33
Taiwan 352 347 - 5 -
HK 1 - - -
Macau - - 1 -
Malaysia 32 - - -
Total 1,518 1,459 18 8 33
Others 34
15
Group Profitability
Group gross margin stood at 78% despite high inflation & higher labor costs
Improving operating margin mainly due to:
Strong sales in PRC as a result of increase in New Concept Store (NCS)
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
FY05 FY06 FY07 FY08 FY09 FY10 1H11
Gross margin
Gross margin (excl. non-cash inventory provision, Fonperi and Loss-Making Self-Owned Spas)
Operating margin
Operating margin (excl. one-off expenses & non-cash stock option expense)
16
1st May , 2010
• NCS Pilot Test in Xian
Aug , 2010
• Rolled out NCS in China
30th June , 2011
• 137 NCS opened in China
– 85 Upgrade
– 52 New
29
New Concept Store (NCS) Development
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
new 0 0 0 0 4 5 7 16 29 29 30 38 45 52
upgrading 1 1 2 7 18 23 27 42 56 57 57 73 82 85
0
10
20
30
40
50
60
70
80
90
(May 2010 ~ June 2011 ,Cumulative )
30
New Concept Store (NCS) Development
RMB’000
Store No
50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
$377 $377 $380 $375$387
$359 $356$344
$363 $371 $379 $390 $388 $391$412
$433$454
$526
0
50
100
150
200
$250
$300
$350
$400
$450
$500
$550
Jan/10 Feb/10 Mar/10 Apr/10 May/10Jun/10 Jul/10 Aug/10 Sep/10 Oct/10 Nov/10 Dec/10 Jan/11 Feb/11 Mar/11 Apr/11 May/11Jun/11
NCS Stores No. & SPS-12 Month Rolling
Store No. SPS
638 638 638 638 638 638 638 638 638 638 638 638 638 638 638 638 638 638
$218 $213 $217 $216 $220$208 $209 $208 $216 $223 $222 $218
$228 $232$243 $245 $242
$264
0
500
1,000
1,500
2,000
$100
$150
$200
$250
$300
Jan/10 Feb/10 Mar/10 Apr/10 May/10 Jun/10 Jul/10 Aug/10 Sep/10 Oct/10 Nov/10 Dec/10 Jan/11 Feb/11 Mar/11 Apr/11 May/11 Jun/11
Non-NCS Stores No. & SPS-12 Month Rolling
Store No. SPS
+47%
+27%
31
Channel Sales Performance (12-month Rolling Sales per Store (PRC))
70 Beijing
47 jilin
Chengdu 60
21 Fuzhou 65
Guangzhou
8 Harbin
8 Hainan
59 Hangzhou
27 Henan
26 Jiangxi
Chongqing
4
5 Xinjiang
5 Xiamen
59 xian
49 hubei
18 Wenzhou
14 Tianjin
64 Suzhou
36 Liaoning
68 Shenzhen
11 Shanxi
42 shandong
23 Ningbo
160 2 Shanghai
42 Nanjing
12 Heilongjiang
5 gansu
28
2 6
2
Zhejiang
Franchisee-owned (1111)
Self-owned Spa (2)
First-tier cities (344)
Second-tier cities (762)
Counters (53)
2
Inner Mongolia
1
8
5
1
5
1
guizhou
yunnan
xizang
hebei
xining
1
3
ningxia
guangxi
hunan
18 28
7
1
20
11 anhui
6
Nationwide Distribution Network in PRC (as of 30 Nov 2011)
32
• New Concept Store (NCS) – Upgrade from existing: Over 100 NCS
– Cumulatively over 250 NCS by end of 2011
– Continue NCS expansion in Carrefour Shopping Mall
• Net Store increase: 100
• Enhance new franchisee recruiting program
• Further enhance technical and retail management training program on NCS
33
Retail Outlook
• 2011 Most Valuable Franchise Network (最值得加盟美容连锁网络) by China Beauty Expo
• 2011 Excellent Total Solution Beauty Centre (优质全方位美容美体中心) by PC Lady.com (leading female website)
• 2011 Top Ten Best Entrepreneur Investment (十大最具吸引力创业投资项目) by BJ International Franchisee Expo
• 2011 Most Valuable Franchise Network (最值得加盟美容连锁网络) by National Franchisee Expo
• 2011 National Reliable Brand for Consumer & Gold Medal of Chinese Quality Brands (全国消费者信得过单位 & 中国名优品牌金奖) by 中国诚信企业合作促进会
• 2010 Most Healthy Total Solution Beauty Centre (最健康全方位美容美体中心) by Trends Health magazine
• 2007 Honor and 2006 Silver Winner of the World’s Best Annual Report by International ARC Awards, New York
• 2007 Best Asia Brand Innovation award
• 2007 Best Asia Brand Innovative Figure award
• 2006 and 2005 Outstanding Enterprise in Hong Kong
• 2006 Bronze Winner of Asia Marketing and Promotion Award
• 2006 Bronze Winner of Best Asia B2B Events Award
• 2006 Best Asia Interactive Media Application Award
• 2005 Top 10 most influential beauty brands in China
• 2005 Top 10 most influential beauty franchised salons in China
• 2005 Golin Awards in Corporate Branding / Reputation Management
• 2005 Best Franchisee Network in China (with the highest consumer recognition rate of 49.7% by 2005 China Beauty Economy Annual Report)
• 2005 London International Advertising Award
• 2005 New York Global Longshi Advertising Award
• 2005 6 Honors for Corporate Identity Design by Hong Kong Designer Award
• 2005 8 Honors by Asia Times Advertising Creative Award
• 2005 Asia Pacific Interior Design Award for Central SPA
Renowned Brand
35
Anmi Series RMB100~325
Herbal Yabai Series RMB100~440
Counter Channel
NB-1 SCT Series RMB500~5888
NB-1 Yam Series RMB500~1000
Bio-Tech Series RMB200~400
Herbal Series RMB100~300
Essence Oils RMB230~1300
NB-1 Supplements RMB500~1150
Health Supplements RMB150~500
Franchisee Channel
Professional Spa & Beauty Products
36
Aroma Hair-loss Preventive Scalp Treatment RMB190
Aroma Bust Treatment & Firming Wrap RMB400
Digestion Enhancing Treatment RMB190
Aroma PMS Treatment RMB190
Aroma Body Sculpturing & Firming Treatment RMB400~450
Ultra Lympho Slim Up Treatment [Waist/ Stomach/ Pregnant lines / Thigh/ Buttock/ Shoulder] RMB990
Aroma Oriental Massage/ Energetic Lymphomassage RMB550
Yin & Yang Jade Massage Therapy RMB190
Facial Treatment [NB-1/ Natural Hormone/ Bio-tech / Han Herbal Whitening / Professional ] RMB280~590
Aroma Lympho Lift-up Therapy [Whitening/ Balancing/ Refining/ Brightening/ Rejuvenating/ Dark Circle/ Firming] RMB190
Aroma Pores & Dark Spot Back Treatment RMB400
Aroma Firming Neck Treatment RMB190
Aroma Muscle-relieving
Shoulder Massage RMB190
Whitening Ocean Wrap
[Arm/Full Body] RMB390
Body Herbal Scrub RMB390
Unique Professional Products for Head-to-toe Spa Programs
37
High end department store brands:
SKII (0.6%), Lancome (2.3%), Shisedo (1.7%), Estee Lauder (1.9%),
Mass hypermarket brands:
Olay (10.2%), L’Oreal (4.8%), Vichy (2.1%) ;
Ponds - Unilever (1.8%), Nivea (1.2%) Garnier Mini Nurse (1.1%)
Direct selling:
Mary Kay (6.1%) , Artistry - Amway (5.2%), Avon (2.6%)
Cosmetic drugstores:
Aupres (4.8%), Dabao (1.1%)
Source: Euromonitor Report June 2011
Retail Competition (Market shares 2010):
38
26
10
6
3
6
3
3
2
3
3
0
2
2
1
6
Olay
L’Oreal Paris
Avon
Dabao
Tjoy
Lancome
Ponds
Estee Lauder
Shiseido
Aupres
Nivea
Johnsons Baby
Mary Kay
Artistry
Natural Beauty
Top of Mind
All Respondents (Radom) n (Wtd) = 2423 n = 2421
15
22
16
13
16
18
13
6
8
7
3
21
23
36
58
Unaided Awareness
71
70
68
65
59
57
49
48
47
46
45
35
33
28
89
Total Awareness
Brand Awareness – Top 15 brands in China
39
Note: 以上列出品牌为目前使用前15位的品牌, 并根据总体认知排序
19
19
7
5
3
2
2
3
5
3
1
0
1
0
12
35
22
25
25
33
21
9
9
5
10
1
29
43
48
58
84
84
82
81
70
67
67
65
58
51
44
40
39
35
87
Top of Mind
Unaided Awareness Total Awareness
Lancôme
Estee Lauder
L’Oreal Paris
Olay
Shiseido
Aupres
Guerlain
Avene
Arden
Chlitina
Clinique
Chanel
Christine Dior
Biotherm
Natural beauty
Brand Awareness – Top 15 brands in Premium Users
40
- New brand positioning kicked off in Mar 2011: Qi 细养之美
brand imagery building for new consumer and franchisee recruitment A unique brand positioning to promote spa channel and NB product portfolios in an integrated manner
- New Key Visuals by portfolio and by function to build power brands
- New packaging design to be kicked off in Q4 2011
Winning concept for NB-1, Bio-Tech and Herbal for both NB and non-NB users in Focus Group conducted in July
- New POP and in-store merchandising in Q4 2011
New Communications Programs
41
2011 Strategic Imperatives Building Blocks and 1H Achievements
- New Product Launch
Skin Care: 8 SKUs in Q3 Supplements: 1 SKUs in Q3 Essence Oils: 3 SKUs in Q4
- PR and Promotion
Mega launch of Yam NPD and NB-1 re-promote in Q3 Key account programs target at >1M franchisees in Q3
- Brand Revamp Program
New packaging launch target in Q4 Test market for new TVC and franchisee recruitment ad target in Q4
42
Oracle 甲骨文 (Standard Costing 标准成本)
Cognos (BI) 数据分析系统
e-Banking /e-Payment 电子银行
E-flow 电子签呈
e-Payroll 电子人事系统
Microsoft Exchange Server 电子邮件系统
POS/CRM 零售客户管理
Systems Implementation
44
$0
$20
$40
$60
2H2009 1H2010 2H2010 1H2011
$59
$36
$19 $22
Trade Receivables HK$M
$0
$20
$40
$60
$80
$100
2H2009 1H2010 2H2010 1H2011
$89
$64
$47 $39
Inventory HK$M
$0
$5
$10
$15
$20
2H2009 1H2010 2H2010 1H2011
$12
$10
$13
$18
Trade Payables HK$M
$480
$510
$540
$570
$600
2H2009 1H2010 2H2010 1H2011
$559
$532
$576 $577
Cash HK$M
Group Working Capital
45
0
10
20
30
40
50
2H2009 1H2010 2H2010 1H2011
50
43
25
17
Legal Entities (PRC)
2,760
2,184
1,248
928
0
700
1,400
2,100
2,800
3,500
2H2009 1H2010 2H2010 1H2011
SKUs (PRC)
0
5
10
15
20
2H2009 1H2010 2H2010 1H2011
8 8 6
3
Legal Entities (TW)
1,772
1,294
868 744
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2H2009 1H2010 2H2010 1H2011
SKUs (TW)
PRC &TW Legal Entities and SKUs
46
0
100
200
300
400
500
600
700
800
900
1,000
2009 Dec 1H2010 2010Dec 1H2011
262
264, +1%
250, -5% 198,
-21%
232 228, -2%
230, +1% 237,
+3%
289 246, -15% 205,
-17% 169, -18%
210 220, +5% 263,
+20%
235, -11%
Distribution&Admin Production
Counter & SPA Sales, Retailing and Marketing
0
100
200
300
400
500
600
700
800
900
1,000
2009 Dec 1H2010 2010Dec 1H2011
777 770, -1%
782, +2%
686, -12%
198 169, -15%
157, -7%
143, -9%
18 19,+6% 9,-53%
10,+11%
China TW HK&Macau(includes Malaysia)
993 958, -4%
948,-1% 839,-11%
993
958,-4% 948,-1%
839,-11%
Group Headcount
47
top related