innocean worldwide 2016 1q earnings result · 1q 2016 earnings 1q 2016 earnings analysis analysis...
TRANSCRIPT
Innocean Worldwide
2016 1Q Earnings Result
Disclaimer
The Financial statements on this presentation is prepared in accordance with Korean International Financial Reporting
Standards(“K-IFRS”). And for the purpose of comparison, the accompanying consolidated financial statements as of 1Q 2016
are prepared and presented by reflecting the K-IFRS transition adjustments.
This document is prepared with unaudited financials for investors’ information. Therefore, some numbers may be revised
upon the review of independent auditors of INNOCEAN Worldwide.
Table of Contents
1.1.1.1. 1Q 2016 Earnings Summary1Q 2016 Earnings Summary1Q 2016 Earnings Summary1Q 2016 Earnings Summary
2.2.2.2. 1Q 2016 Earnings Analysis1Q 2016 Earnings Analysis1Q 2016 Earnings Analysis1Q 2016 Earnings Analysis
3.3.3.3. 1Q 2016 Business Update1Q 2016 Business Update1Q 2016 Business Update1Q 2016 Business Update
4. 4. 4. 4. 2016 2016 2016 2016 Outlook and Business StrategyOutlook and Business StrategyOutlook and Business StrategyOutlook and Business Strategy
Appendix. Appendix. Appendix. Appendix. Summary FinancialSummary FinancialSummary FinancialSummary Financial
4444INNOCEANINNOCEANINNOCEANINNOCEAN Investor Relations 2016201620162016
1. 1Q 2016 Earnings Summary1Q 2016 Earnings Summary1Q 2016 Earnings Summary1Q 2016 Earnings Summary
“Strong 1Q Earnings based on “Strong 1Q Earnings based on “Strong 1Q Earnings based on “Strong 1Q Earnings based on bbbboth Korea HQ & oth Korea HQ & oth Korea HQ & oth Korea HQ & OOOOverseas Business verseas Business verseas Business verseas Business GGGGrowth”rowth”rowth”rowth”
227,080 275,067 21.2%
69,676 88,849 27.5%
9,638 -
17,933 20,108 12.1%
21,415 24,846 16.0%
15,536 17,311 11.4%
5555INNOCEANINNOCEANINNOCEANINNOCEAN Investor Relations 2016201620162016
69,676 69,676 69,676 69,676
88,849 88,849 88,849 88,849
2. 1Q 2016 Earnings 1Q 2016 Earnings 1Q 2016 Earnings 1Q 2016 Earnings Analysis Analysis Analysis Analysis – Consolidated Earnings
(Unit: KRW mn)
� Strengthened marketing execution volume from HMG’s new car launchesand overseas non-captive client expansion
� GP contribution from Canvas Worldwide (U.S. media b uying subsidiary)
Gross ProfitGross ProfitGross ProfitGross Profit
’15.1Q’15.1Q’15.1Q’15.1Q ’16.1Q’16.1Q’16.1Q’16.1Q
9,638 9,638 9,638 9,638 (+13.8%)(+13.8%)(+13.8%)(+13.8%)
9,5359,5359,5359,535(+13.7%)(+13.7%)(+13.7%)(+13.7%)
LegacyLegacyLegacyLegacyBusinessBusinessBusinessBusiness
CanvasCanvasCanvasCanvas
+27.5%+27.5%+27.5%+27.5%
6666INNOCEANINNOCEANINNOCEANINNOCEAN Investor Relations 2016201620162016
EuropeEuropeEuropeEurope : : : : KRW13.6bnKRW13.6bnKRW13.6bnKRW13.6bn(+11.9%)(+11.9%)(+11.9%)(+11.9%)
OtherOtherOtherOtherRegionsRegionsRegionsRegions : KRW 5.8bn: KRW 5.8bn: KRW 5.8bn: KRW 5.8bn
(+(+(+(+11.9%)11.9%)11.9%)11.9%)
ChinaChinaChinaChina : : : : KRW4.1bnKRW4.1bnKRW4.1bnKRW4.1bn((((△△△△1.0%)1.0%)1.0%)1.0%)
Americas: KRW39.1bnAmericas: KRW39.1bnAmericas: KRW39.1bnAmericas: KRW39.1bn(+(+(+(+60.960.960.960.9%)%)%)%)
※ Without CANVAS Worldwide: KRW29.4bn(+21.2%)
HQHQHQHQ : : : : KRW 26.7bn KRW 26.7bn KRW 26.7bn KRW 26.7bn (+(+(+(+11.2%)11.2%)11.2%)11.2%)
2. 1Q 2016 Earnings Analysis 1Q 2016 Earnings Analysis 1Q 2016 Earnings Analysis 1Q 2016 Earnings Analysis – Regional Summary
Overseas Entity by RegionOverseas Entity by RegionOverseas Entity by RegionOverseas Entity by Region
� Korea HQ:KRW26.7bn(+11.2%)
Overseas : KRW62.2bn(+36.1%)
Regional GP contributionRegional GP contributionRegional GP contributionRegional GP contribution
28%28%28%28%
42%42%42%42%
15%15%15%15%
9%9%9%9% 6%6%6%6%
HQ US Europe China EM
****
*China JV (equity method) included
Americas USA / Canada / Brazil / Mexico (4)
Europe UK / Germany / Italy / Spain / France (5)
China Beijing/ Shanghai (2), Innocean CBAC in Beijing (equity method)
Other Regions
Russia /Turkey / India / Australia / Dubai (5)
7777INNOCEANINNOCEANINNOCEANINNOCEAN Investor Relations 2016201620162016
15,53615,53615,53615,53617,31117,31117,31117,311
'15.1Q '16.1Q
2. 1Q 2016 Earnings Analysis 1Q 2016 Earnings Analysis 1Q 2016 Earnings Analysis 1Q 2016 Earnings Analysis – OP & NP
'15.1Q '16.1Q
+ 12.1%+ 12.1%+ 12.1%+ 12.1%+ 11.4%+ 11.4%+ 11.4%+ 11.4%
38,23138,23138,23138,23149,23949,23949,23949,239
13,51213,51213,51213,512
19,50119,50119,50119,501
'15.1Q '16.1Q
Labor Overhead
51,743
68,740+ 32.8%+ 32.8%+ 32.8%+ 32.8%
SG&ASG&ASG&ASG&A OPOPOPOP NPNPNPNP
(KRW mn)
△1,881
20,10920,10920,10920,109
Loss from Canvas WW
SG&A Cost : KRW68.7bn (+SG&A Cost : KRW68.7bn (+SG&A Cost : KRW68.7bn (+SG&A Cost : KRW68.7bn (+32.8%)32.8%)32.8%)32.8%)
- Labor : KRW49.2bn (+28.8%)
- Overhead : KRW195bn (+44.3%)※ Canvas Cost : KRW11.5bn
(Labor- KRW6.4bn, Overhead- KRW 5.1bn)
17,93317,93317,93317,933
· · · · OPOPOPOP : : : : KRW20.1bnKRW20.1bnKRW20.1bnKRW20.1bn (+12.1%)(+12.1%)(+12.1%)(+12.1%)※ Loss from Canvas : △KRW1.9bn
( Start up cost KRW 3bn)
(KRW mn) (KRW mn)
※ Labor cost includes salary, bonus, severance pay, and welfare
· N· N· N· NPPPP : : : : KRW17.3bnKRW17.3bnKRW17.3bnKRW17.3bn (+11.4%)(+11.4%)(+11.4%)(+11.4%)※ Net Income to Parent KRW 15bn (+9.8%)
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3. 1Q 2016 Business Update – Client Portfolio
New Client Acquisition■■■■ Korea HQ : Non- Captive account 33% (basd on GP)
Emerging MarketsAmericas Region Europe Region China
■■■■ Overseas : Non- Captive account 7.7% (based on GP)
F&B/Pharmaceutical
Steel/Construction
Financials
Airlines/Education/Services
Telecom/Internet/Sports
Fashion/Cosmetic/Life Style
Auto/Auto Parts
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236,481 257,745
317,664
2013 2014 2015 2015.1Q 2016.1Q
3. 1Q 2016 Business Update – GP Growth Trend
CAGR 10.3%CAGR 10.3%CAGR 10.3%CAGR 10.3%(2013~2015)(2013~2015)(2013~2015)(2013~2015)
(KRW mn)
88,84988,84988,84988,849(+(+(+(+27.527.527.527.5% YoY)% YoY)% YoY)% YoY)
69,67669,67669,67669,676
10101010INNOCEANINNOCEANINNOCEANINNOCEAN Investor Relations 2016201620162016
Global Sports Marketing EventsGlobal Sports Marketing EventsGlobal Sports Marketing EventsGlobal Sports Marketing Events
U.S. Media JV(Canvas U.S. Media JV(Canvas U.S. Media JV(Canvas U.S. Media JV(Canvas Worldwide)Worldwide)Worldwide)Worldwide)
3
2
2016 2016 2016 2016 Super Bowl Super Bowl Super Bowl Super Bowl (Feb)(Feb)(Feb)(Feb)
Euro Euro Euro Euro 2016201620162016(Jun~ Jul)(Jun~ Jul)(Jun~ Jul)(Jun~ Jul)
OlympicOlympicOlympicOlympic(Aug)(Aug)(Aug)(Aug)
Additional Additional Additional Additional profit expectedprofit expectedprofit expectedprofit expected
Digital Business ExpansionDigital Business ExpansionDigital Business ExpansionDigital Business Expansion4
4. 2016 Outlook and Business Strategy
Strong New Vehicle PipelineStrong New Vehicle PipelineStrong New Vehicle PipelineStrong New Vehicle Pipeline1
1,4291,4291,4291,429 1,3451,3451,3451,345
1,3201,3201,3201,320 1,2321,2321,2321,232
197 213
390 359
701 615
32 45
110110110110 113113113113
22 16
88 97
806806806806 729729729729
789789789789 709709709709
700 606
89 103
17171717 20202020
14 15
3 5
623623623623 617617617617
Consolidated Statement of Financial PositionConsolidated Statement of Financial PositionConsolidated Statement of Financial PositionConsolidated Statement of Financial Position (K(K(K(K----IFRS)IFRS)IFRS)IFRS)
Appendix. Appendix. Appendix. Appendix. Summary FinancialsSummary FinancialsSummary FinancialsSummary Financials
Appendix. Summary FinancialsAppendix. Summary FinancialsAppendix. Summary FinancialsAppendix. Summary Financials
Consolidated Income StatementConsolidated Income StatementConsolidated Income StatementConsolidated Income Statement (K(K(K(K----IFRS)IFRS)IFRS)IFRS)
988988988988 227227227227 275275275275 +21.1%+21.1%+21.1%+21.1%
670 157 186
318318318318 70707070 89898989 +27.5%+27.5%+27.5%+27.5%
as % of revenue 32.2% 30.8% 32.4%
319319319319 70707070 79797979 +13.7%+13.7%+13.7%+13.7%
as % of revenue 32.2% 30.8% 28.8%
225 52 69
93939393 18181818 20202020 +12.1%+12.1%+12.1%+12.1%
as % of revenue 9.4% 7.9% 7.3%
93939393 18181818 22222222 +22.6%+22.6%+22.6%+22.6%
as % of revenue 9.4% 7.9% 8.0%
15 3 5 +42.1%+42.1%+42.1%+42.1%
107 21 25 +16.0%+16.0%+16.0%+16.0%
29 6 8
78787878 15151515 17171717 + 11.4%+ 11.4%+ 11.4%+ 11.4%
as % of revenue 7.9% 6.6% 6.2%
70 14 15 +9.3%+9.3%+9.3%+9.3%
Thank you