Bauhaus International (Holdings) Ltd. · HKEX:483
Bauhaus International (Holdings) — FY2010/11 Earnings Presentation
37 slides from Bauhaus International (Holdings)'s earnings presentation, November 2010
Slide 1: FY2010/11 Annual Results
Bauhaus International (Holdings) Limited (stock code: 483) FY2010/11 Annual Results
Slide 2: Agenda
Agenda • Financial Highlights • Business Review • Growth Strategies 2
Slide 3: Financial Highlights
Financial Highlights
Slide 4: Results Highlights
Results Highlights For the year ended For the year ended Change 31/3/2011 31/3/2010 Turnover (HK$ million) 1,011.7 793.8 27.5% Gross profit (HK$ million) 708.2 556.4 27.3% EBITDA (HK$ million) 176.7 127.6 38.5% Operating profit (HK$ million) 148.8 102.3 45.5% Net profit (HK$ million) 115.5 83.0 39.2
Slide 5: Turnover
Turnover HK$ million 1100 1011.7 1000 18 .7% GR: 900 C A 793.8 745.6 800 700 617.6 600 509.3 500 400 300 200 100 0 2006/07 2007/08 2008/09 2009/10 2010/11 Year ended 31 March 5
Slide 6: Turnover by Regions
Turnover by Regions Elsewhere Hong Kong & 3.8% Macau Taiwan Elsewhere Taiwan 64.1% 14.3% 3.0% 16.0% Hong Kong & Macau 15.6% Mainland China 66.3% Mainland China 16.9% FY2010 FY2011 Year ended 31 March 6
Slide 7: Segmental Information
Segmental Information Turnover (HK$ million) No. of outlets Year ended 31 March As at 31 March Market 2011 2010 Change 2011 2010 Change Hong Kong 587.5 474.0 23.9% 71 57 14 Macau 61.1 52.6 16.2% 4 3 1 Mainland China Self-managed Retail Business 113.4 75.4 50.4% 41 24 17 Franchise Business 57.7 48.0
Slide 8: Financial Indicators
Financial Indicators For the year For the year Change ended 31/3/11 ended 31/3/10 Gross margin (%) 70.0 70.1 0.1% pt Rent to sales (%) 24.6 25.7 1.1% pt Staff cost to sales (%) 17.1 17.6 0.5% pt Net profit margin (%) 11.4 10.5 0.9% pt ROE (%) 25.1 20.6 4.5% pt Capital expenditure (HK$ million) 88.0
Slide 9: Net Profit
Net Profit HK$ million 115.5 120 : 19.2% R 100 CAG 83.0 80 67.0 57.2 60.8 60 40 20 0 2006/07 2007/08 2008/09 2009/10 2010/11 Year ended 31 March 9
Slide 10: Dividend Payout
Dividend Payout HK$ million 70 63.6 60 55.7 48.5 50 39.3 40 37.7 30 20 10 0 2006/07 2007/08 2008/09 2009/10 2010/11 Year ended 31 March 10
Slide 11: Business Review
Business Review
Slide 12: Overview – All Regions
Overview – All Regions Strong economic recovery and improving consumer sentiment • Fast growth in sales and improved net profit margin Aggressively expanded self–managed retail network • Added 41 shops during the period, number of shops increased from 193 (as at 31 Mar 2010) to 234 (as at 31 Mar 201
Slide 13: Overview – All Regions: Cost Control
Overview – All Regions Stringent cost control took effect 12 months ended 31 Mar 2011 2010 Change Total Operating Expenses to Sales 55.7% 57.7% ↓2.0% pt Rent to Sales 24.6% 25.7% ↓1.1% pt Staff Cost to Sales 17.1% 17.6% ↓0.5% pt 13
Slide 14: Overview – All Regions
Overview – All Regions 14
Slide 15: Hong Kong & Macau – Retail Operation
Hong Kong & Macau – Retail Operation • Hong Kong market achieved satisfactory turnover of HK$587.5 million with double–digit growth in sales of about 23.9% • Turnover of Macau also grew 16.2% to HK$61.1 million • Expanded 15 self-managed retail stores in the two markets Turnover (HK$ Million) 12 mon
Slide 16: Hong Kong & Macau – Retail Operation
Hong Kong & Macau – Retail Operation As at 31 March 2011 • 75 outlets and about 98,588 sq. feet under well-received brand names such as: • “BAUHAUS”; • “TOUGH Jeansmith”; • “SALAD”; • “80/20”; and • a licensed brand “SUPERDRY” 16
Slide 17: Hong Kong & Macau – Retail Operation
Hong Kong & Macau – Retail Operation 17
Slide 18: The PRC
The PRC Penetrates Mainland China Market through “Dual-channel” • Self-managed retail operation (“Retail”) – Bolster its status in well established cities in China – Now cover 1st tier cities includes Beijing, Shanghai, Guangzhou and Nanjing • Franchise business (“Franchise”) – To cover other prime
Slide 19: The PRC – Retail Operation
The PRC – Retail Operation • Added 26 new self-managed shops and expanded the footprint to Nanjing • But also closed 9 non-performing shops • Take higher priority on profitability and efficiency rather solely network scale As at 31 March 2011 41 outlets and about 54,326 sq. feet under the brand name
Slide 20: The PRC – Retail Operation
The PRC – Retail Operation 20
Slide 21: The PRC – Franchise Operation
The PRC – Franchise Operation • Actively seeking qualified partners to join the franchise business • Also streamlined operation by eliminating non-performing franchise shops • Total number of shops was 65 as at 31 March 2011 • Provided more training and technical support to franchisees to face volat
Slide 22: Taiwan
Taiwan • Strong brand awareness and successful penetration in Taiwan enhanced market share • Enriched shop portfolio by introducing well-received licensed brand “SUPERDRY” and fostered new in-house labels to sustain future growth • Strategically expanded self-managed retail network by adding 14 new
Slide 23: Taiwan
Taiwan As at 31 March 2011 • 53 outlets and about 37,800 sq. feet under brand names such as “BAUHAUS”, “TOUGH Jeansmith”, “SALAD”, “80/20”, and a licensed brand “SUPERDRY” 23
Slide 24: Elsewhere – Wholesale Operation
Elsewhere – Wholesale Operation • Wholesale business covered various countries mainly in Asia • Strategically shifted focus to the rapidly growing Asian market and just maintained limited exposure in European market • The Japanese market, the Group’s largest overseas wholesales market, recorded stab
Slide 25: Growth Strategies
Growth Strategies
Slide 26: Mission & Goals
Mission & Goals Mission • To dress up one’s life with style and bring quality fashion to different parts of the world Financial Goals • To maintain sustainable growth in both turnover and net profit • To strengthen financial position with a healthier cost structure • To provide an attractive dividen
Slide 27: Growth Strategies: Brands Development
Growth Strategies Brands Development • Migrating successful experiences of nurturing “TOUGH Jeansmith” and “SALAD”, the Group will strategically select well- received labels with huge growth potentials to open specialty stores 27
Slide 28: Growth Strategies: Brands Development
Growth Strategies Brands Development • “SUPERDRY”, a licensed brand shop, has launched in Hong Kong and Taiwan with a total of 13 shops as at 31 March 2011 28
Slide 29: Growth Strategies: Brands Development
Growth Strategies Brands Development • A “SUPERDRY” flagship store will be launched in the third quarter of 2011 29
Slide 30: Growth Strategies: Cost Control and Operation Management
Growth Strategies Cost Control and Operation Management • Acquire certain properties in Hong Kong to alleviate rental pressure and to enhance asset base • Open optimal size retail shops and streamline operational structure to further improve efficiency • Diversify production and/or sourcing base to
Slide 31: Growth Strategies: Effective Marketing Campaigns
Growth Strategies Effective Marketing Campaigns • Launch pinpointed marketing campaigns to enhance brand awareness and to further enlarge customer base 31
Slide 32: Growth Strategies
Growth Strategies 32
Slide 33: Fashion Trade Show
Fashion Trade Show TOUGH Jeansmith showcase in NOVO Exhibition 33
Slide 34: Fashion Trade Show
Fashion Trade Show re a d & B u tter - Berlin B Salad Show in Sh angh ai 34
Slide 35: Corporate Social Responsibility
Corporate Social Responsibility Dress for Genes – Bauhaus supports “Jeans for Genes Day” • From 20 to 26 May 2011, with every pair of jeans a customer buying from Bauhaus, part of the proceeds will be donated to the "Children's Thalassaemia Foundation" in support of "Jeans For Genes day”. • In addit
Slide 36: Q&A
Q&A
Slide 37: FY2010/11 Annual Results
Bauhaus International (Holdings) Limited (stock code: 483) FY2010/11 Annual Results
Bauhaus International (Holdings) — FY2010/11 Earnings Presentation on 6ix