Pou Chen Corporation · TWSE:9904
Pou Chen — Investor Presentation (September 2019)
18 slides from Pou Chen's investor presentation, September 2019
Slide 1: September 2019
September 2019 http: //www.pouchen.com E-mail: [email protected] PROFESSIONALISM DEDICATION INNOVATION SERVICE
Slide 2: Table of Contents
Table of Contents Page 1. Pou Chen’s Profile 2 2. Business Overview 4 3. Footwear Business – Yue Yuen 6 4. Retail Business – Pou Sheng 9 5. Financial Highlights 12 1
Slide 3: Pou Chen's Profile
Pou Chen’s Profile Pou Chen Group ― To be the best sports gear producer and distributor. • Founded in 1969; listed on the TWSE in 1990 • Paid in Capital: NT$29,468 mn • Market Cap.: NT$113.4 bn (@NT$38.50 as of 2019/06/28) (approx. US$3.6 bn) • Revenue:1H2019 Consolidated Sales NT$157,502 mn (approx
Slide 4: Group Structure
Group Structure 寶成工業 Pou Chen Corp. (9904.tw) Footwear Retail Others 51.11% (31.79%)(1) Real Estate Development Yue Yuen Pou Sheng (0551.hk) (3813.hk) Footwear OEM/ODM Retail Sales network Hotel Operation Upstream Business Brand Licensee / Sports Services Retail via Pou Sheng (2) Apparel Wholesale (
Slide 5: Business Overview
Business Overview Business Segment Mix Pou Chen FY2016 FY2017 FY2018 1H2018 1H2019 YoY (Consolidated) (NT$mn; %) (NT$mn; %) (NT$mn; %) (NT$mn; %) (NT$mn; %) (%) Footwear 194,830 70.9% 185,597 66.6% 177,557 60.5% 83,559 59.1% 90,803 57.6% +8.7% Retail 78,880 28.7% 92,102 33.1% 114,951 39.2% 57,434 40
Slide 6: Business Overview
Business Overview Pou Chen’s 8M2019 unaudited consolidated sales increased Y-o-Y by 10.3% to NT$208.8 bn. Revenue – Footwear Revenue - Retail (NT$mn) (NT$mn) 194,830 185,597 177,557 114,951 83,559 90,803 78,880 92,102 57,434 66,296 2016 2017 2018 1H2018 1H2019 2016 2017 2018 1H2018 1H2019 Revenue –
Slide 7: Footwear Business – Yue Yuen
Footwear Business – Yue Yuen The world’s largest branded footwear manufacturer with a diversified portfolio of brand customers and production sites. Core Competences: responsiveness, flexibility, innovation, design and development capabilities, and superior quality. 324.6 326.0 322.0 317.5 307.1
Slide 8: Financial Highlights – Yue Yuen
Financial Highlights – Yue Yuen Product Mix FY2016 FY2017 FY2018 1H2018 1H2019 YoY Category (US$mn; %) (US$mn; %) (US$mn; %) (US$mn; %) (US$mn; %) (%) Athletic Shoes 4,110 48.5% 4,204 46.1% 4,268 44.0% 1,997 41.9% 2,102 41.4% +5.2% Casual/Outdoor Shoes 1,231 14.5% 1,192 13.1% 1,031 10.6% 522 11.0% 5
Slide 9: Financial Highlights – Yue Yuen
Financial Highlights – Yue Yuen Yue Yuen’s 8M2019 unaudited sales increased Y-o-Y by 6.0% to US$6.7 bn. Revenue Gross Margin (US$mn) (US$mn) Yue Yuen Footwear 25.8% 25.2% 25.1% 25.0% 25.1% 9,695 20.9% 21.0% 8,481 9,121 19.5% 18.8% 18.1% 4,769 5,071 2,133 2,351 2,446 1,191 1,273 2016 2017 2018 1H2018
Slide 10: Retail Business – Pou Sheng
Retail Business – Pou Sheng One of the leading distributors for a number of well-known international brands in the Greater China Region. The Group started Brand Licensee Business in 1992 and Retail Business in 2001. Retail Business – Business Model: Distribution of world-renowned sportswear br
Slide 11: Financial Highlights – Pou Sheng
Financial Highlights – Pou Sheng Financial Highlights (RMB mn) FY2016 FY2017 FY2018 1H2018 1H2019 YoY (%) Revenue 16,236 18,833 22,677 11,202 13,372 +19.4% Gross Profit 5,768 6,594 7,599 3,756 4,616 +22.9% Gross Margin 35.5% 35.0% 33.5% 33.5% 34.5% Operating Profit 924 770 967 530 774 +46.0% Operati
Slide 12: Financial Highlights – Pou Sheng
Financial Highlights – Pou Sheng Pou Sheng’s 8M2019 unaudited sales increased Y-o-Y by 20.9% to RMB 17.6 bn (US$2.6 bn). Revenue Operating Margin (RMB mn) (RMB mn) 5.7% 5.8% 4.7% 4.1% 4.3% 22,677 18,833 16,236 924 967 13,372 770 774 11,202 530 2016 2017 2018 1H2018 1H2019 2016 2017 2018 1H2018 1H201
Slide 13: Financial Highlights – Pou Chen (Consolidated)
Financial Highlights – Pou Chen (Consolidated) (NT$mn) FY2016 FY2017 FY2018 Revenue 274,895 278,632 293,316 Gross Profit 70,383 73,068 75,471 Gross Margin 25.6% 26.2% 25.7% Operating Income 17,785 17,068 13,809 Operating Margin 6.4% 6.1% 4.7% Non-operating Income, net 8,495 7,750 6,451 Profit before
Slide 14: Financial Highlights – Pou Chen (Consolidated)
Financial Highlights – Pou Chen (Consolidated) 1H2018 1H2019 YoY (NT$mn) (%) Revenue 141,417 157,502 +11.4% Gross Profit 36,017 40,303 +11.9% Gross Margin 25.5% 25.6% Operating Income 6,317 7,182 +13.7% Operating Margin 4.5% 4.6% Non-operating Income, net 3,366 4,497 +33.6% Profit before taxation 9,
Slide 15: Financial Highlights – Pou Chen (Consolidated)
Financial Highlights – Pou Chen (Consolidated) Revenue Gross Margin (NT$mn) (NT$mn) 25.6% 26.2% 25.7% 25.6% 25.5% 274,895 278,632 293,316 70,383 73,068 75,471 141,417 157,502 36,017 40,303 2016 2017 2018 1H2018 1H2019 2016 2017 2018 1H2018 1H2019 Net Income(1) Net Margin / EPS (NT$mn) (NT$) 4.8% 4.6
Slide 16: Financial Highlights – Pou Chen (Consolidated)
Financial Highlights – Pou Chen (Consolidated) Segment Revenue Segment Income(1) Footwear Retail Other Footwear Retail Other 0.4% 0.3% 0.3% 0.3% 0.3% 1.6% 1.6% 1.6% 1.8% 1.6% 100% 100% 19.2% 19.7% 28.7% 26.1% 28.8% 33.1% 34.9% 80% 39.2% 40.6% 42.1% 80% 60% 60% 40% 40% 79.2% 78.7% 70.9% 72.3% 69.4% 6
Slide 17: Dividend Policy
Dividend Policy FY2016 FY2017 FY2018 Dividend / Per Share - Pou Chen (NT$) 1.50 2.00 1.50 (Cash 1.50) (Cash 2.00) (Cash 1.50) (3) - Yue Yuen (HK$) 1.40 1.50 + 3.50 1.50 (Interim 0.40 / Final 1.00) (Interim 0.40 / Final 1.10) (Interim 0.40 / Final 1.10) - Pou Sheng (HK$) 0.04 0.02 0.025 (Interim 0.02
Slide 18: Corporate Social Responsibility
Corporate Social Responsibility “As the leader in the footwear manufacturing industry, Pou Chen Group is dedicated to CSR practice, and was highly recognized by FLA‘s accreditation of its Social Compliance Program, which make Pou Chen Group the only FLA-accredited footwear supplier globally. We will