Baozun, Inc. · NASDAQ:BZUN
Baozun — FY2021 Earnings Presentation
27 slides from Baozun's earnings presentation, March 2022
Slide 1: 4Q21 & FY2021 Earnings Presentation
4Q21 & FY2021 Earnings Presentation March 2022
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer to sell or issue or solicitation of an offer to buy or acquire securities of Baozun Inc. (the “Company”) in any jurisdiction or an inducement to enter into investment activity, nor may it or any part of it form the basis of or be relied on in
Slide 3: 4Q 2021 Financial Highlights
4Q 2021 Financial Highlights Non-GAAP Cash GMV(1) Revenue Operating Income(2) Balance(4) RMB 26 bn RMB 3.2 bn RMB 71 mm RMB 4.7 bn One-off adjusted(3) RMB 115 mn (1) Gross merchandise volume, includes value added tax and excludes (i) shipping charges, (ii) surcharges and other taxes, (iii) value of
Slide 4: 2021 4Q Highlights
2021 4Q Highlights +14% Brand Official Website Total GMV 7%+ Interactive Private 100%+ Domain & Integration GMV YoY Growth with Omni-channels GMV YoY Growth YoY Growth • Strong volume in electronics, FMCG, luxury apparel categories • Breakthrough in beauty and cosmetics category … • Growing omni-cha
Slide 5: Medium Term Plan (MTP) Strategy 2021 Progress Update
Medium Term Plan (MTP) Strategy 2021 Progress Update Objective: Sustainable & Profitable Growth Strategic Drivers Customer-Centric to New Business Cost Structure drive growth Expansion Optimization • Luxury continue momentum and • Non-Tmall channel expansion • S-ANY and process re- start to break in
Slide 6: Integrated Mid-office and Regional Service Centers
Integrated Mid-office and Regional Service Centers S-ANY Improving Resource Allocation Tianjin • Focus on high quality growth & superior unit economics Langfang • Active business model transition from distribution to Wuxi Nantong Zhenjiang non-distribution Xi’an Shanghai Suzhou Chengdu Ezhou Hefei 1
Slide 7: Pioneered NPS Program to Drive Customer-Centric Service Strategy
Pioneered NPS Program to Drive Customer-Centric Service Strategy 8.5 / 10 Baozun Net Promoter Score Details 10 9.0 120% 8.6 8.4 8.6 8.6 8.4 9 8 100% 91% 89% 87% 86% 85% 85% 7 80% 6 32% Very S 42% 38% 39% 33% 42% 5 Satisfied 60% 4 Very Satisfied 40% 3 Satisfication Score 59% 53% 2 47% 47% 48% 43% 20%
Slide 8: 2021 Recognition & Awards
2021 Recognition & Awards Marketplace Recognition Digital Marketing Awards Corporate Awards • 2021 Tmall Six-Star Service Provider • Alimama M Awards - New Product Marketing-Bronze Award • 2021 Top 50 Online New Economy (Shanghai) • 2021 JD Top 10 Service Partner • 2021 IAI Awards • 2021 Annual Most
Slide 9: Streamlined Business Structure
Streamlined Business Structure E-Commerce Group Logistics and Supply Chain Technology and Innovation Digital Marketing Group (ECG) Group (LSG) Center (TIC) (DMG) Core E-Commerce Online Store Warehouse & Fulfillment Service IT Solutions Digital Marketing Service & Mini-Program Operation • Warehouse m
Slide 10: Financial Update
Financial Update
Slide 11: Resilient GMV Growth
Resilient GMV Growth Total GMV (1) GMV by Category (4Q2021) RMB mn Sports 71,054 Luxury 35%+ 35%+ Apparel & Accessories Electronics 55,688 Double-digit Men’s Double-digit YoY decline Clothing YoY growth 44,410 Women’s Clothing 66,718 29,426 51,353 26,008 15%+ 22,873 40,561 19,112 26,524 24,626 16,49
Slide 12: Solid Revenue and Improved Gross Margin
Solid Revenue and Improved Gross Margin Total net revenues Gross profit (1) RMB mn RMB mn 9,396 65% 62% 67% 62% 62% 62% 8,852 54% 6,120 50.0% 7,278 5,525 5,523 4,945 4,504 30.0% 5,393 3,856 3,358 10.0% 4,149 2,876 3,347 3,173 1,891 2,231 2,129 -10.0% 2,060 1,873 1,943 3,907 3,874 3,422 -30.0% 2,258
Slide 13: Optimizing Cost Structure and Driving Operational Efficiency
Optimizing Cost Structure and Driving Operational Efficiency Operating expenses breakdown (as % of total GMV) Operating Expense Organic Inorganic Total Breakdown (1) RMB MM Business Business Fulfillment Expenses 736 223 959 10.4% 10.3% 0.6% 0.5% 9.3% YoY (13.5%) n.a 12.7% 0.7% 0.9% 9.0% 0.5% 8.7% 0.
Slide 14: Persistent Profits Despite Challenging Macro-environment
Persistent Profits Despite Challenging Macro-environment Non-GAAP income from operations (1) Non-GAAP net income (2) RMB mn RMB mn 10.0% 7.6% 8.0% 7.6% 10.0% 8.1% 6.3% 6.5% 6.4% 6.1% 10.0% 4.9% 2.4% 2.2% 2.3% 2.8% 669 0.0% 536 0.0% -10.0% -10.0% 460 433 347 358 -20.0% -20.0% 333 315 268 271 224 -30.
Slide 15: Revenue Walk 4Q20 vs 4Q21
Revenue Walk 4Q20 vs 4Q21 Revenue Bridge (1) RMB Mn E-Commerce Group (ECG) 4Q20 Sportswear & Improved Quality Luxury Other Business Logistics and Digital 3 Technology M&A 4Q21 Revenue Fashion Apparel of Distribution Units Supply Chain Marketing and Innovation Revenue Group (LSG) Group (DMG) Center (
Slide 16: Profits Walk 4Q20 vs 4Q21
Profits Walk 4Q20 vs 4Q21 Non-GAAP Operating Profit Bridge (1) RMB Mn Talents & E-Commerce Group (ECG) Other Strategic HQ Investment Upgrade 21 44 RSC 6 LED 2 4Q20OP Sportswear & Improved Quality Luxury Other Business Logistics and Digital Technology3 M&A Strategic 4Q21OP Fashion Apparel of Distribu
Slide 17: Cash Flow Walk 3Q21 vs 4Q21
Cash Flow Walk 3Q21 vs 4Q21 RMB Mn BZUN FY2021Q4 Cash Flow Bridge Financing Cash Flow 30/09/2021 Operating Investing Financing – Financing – Foreign 31/12/2021 Cash Cash & Cash M&A Share Others (2) Exchange & Cash Equivalent Buyback Equivalent Balance (1) Balance (1) (1) Including cash, cash equival
Slide 18: M&A Targets and Contributions
M&A Targets and Contributions Strategic M&A Targets 4Q21 Financial Contributions RMB MM 866 GMV 3% 283 Capability Vertical Geographic Brand Enhancement Consolidation Expansion Building Revenue 9% • Digital marketing • TP • Replicate Baozun’s • Brand venture • CRM • JDP capability in overseas incubat
Slide 19: Brand Building Showcase
Brand Building Showcase One of Baozun’s subsidiary invested in Nobaday in October 2021 18
Slide 20: Baotong & Cainiao Network Strategic Partnership
Baotong & Cainiao Network Strategic Partnership X - Mid-to-high-end MNC Brands - Small and Medium-size Brands - Non-standardized Categories - Standardized Categories 1 Core Category X Category “1+X” • Omni-channel Sportswear • Clothing & Integrated Supply & More… footwear Chain Services • Luxury App
Slide 21: FY2021 Financial Highlights
FY2021 Financial Highlights Non-Tmall Cash GMV(1) Revenue Contribution Balance(2) RMB 71 bn RMB 9.4 bn 31% RMB 4.7 bn (1) Gross merchandise volume, includes value added tax and excludes (i) shipping charges, (ii) surcharges and other taxes, (iii) value of the goods that are returned and (iv) deposit
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Slide 23: Appendix
Appendix
Slide 24: Consolidated Statements of Income
Consolidated Statements of Income Selected Consolidated Statements of Income For the year ended For the three months ended December 31, December 31, in RMB '000 2019 2020 2021 2020 2021 Product sales 3,422,151 3,906,611 3,873,589 1,474,246 1,230,025 Services 3,856,041 4,944,952 5,522,667 1,872,452 1
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet Selected Consolidated Balance Sheet Data As of December 31, in RMB '000 2019 2020 2021 ASSETS Cash and cash equivalents 1,144,451 3,579,665 4,606,541 Restricted cash 382,359 151,354 93,219 Accounts receivable, net(1) 1,800,896 2,188,977 2,260,918 Inventories, net(1) 896,81
Slide 26: Reconciliations of GAAP and non-GAAP Financial Measures
Reconciliations of GAAP and non-GAAP Financial Measures For the three months For the year ended December 31, ended December 31, In RMB ’000 2017 2018 2019 2020 2021 2020 2021 Income from operations 256,332 355,773 383,653 558,677 7,021 300,628 4,001 Add: Share-based compensation expenses 58,231 75,8
Slide 27: Thank You!
Thank You!