Bauhaus International (Holdings) Limited (stock code: 483) FY2007/08 Annual Results

Transcription

1 Bauhaus International (Holdings) Limited (stock code: 483) FY2007/08 Annual Results

2 Agenda Financial Highlights Business Review Future Development 2

3 Financial Highlights

4 Results Highlights For the year ended 31/3/08 For the year ended 31/3/07 Change Turnover (HK$ million) % Gross profit (HK$ million) % EBITDA (HK$ million) % Operating profit (HK$ million) % Net profit (HK$ million) % EPS (HK cents) % DPS (HK cents) Interim No change Proposed final % Proposed special Total for the year* % 22.7 % Revenue growth: - Sales network expanded from 99 to 138 outlets - Increased selling price of in-house label products - Launched over 10 new designs in FY2007/08 * Dividend payout ratio of not less than 30% 4

5 Turnover HK$ million CAGR: 19.1% Year ended 31 March CAGR growth in turnover of about 19.1% in the past 5 years Retail operation and franchise business continue to grow satisfactorily Sales network expanded to 84 retail and 54 franchise outlets 5

6 Net Profit HK$ million CAGR: 12.9% Net profit increased from HK$41.3 million in 2004 to HK$67 million this year Increased retail price of some inhouse brand products Net profit margin, however, dropped slightly from 11.2% to 10.9% Operating costs increased Year ended 31 March 6

7 Financial Indicators For the year ended 31/3/08 For the year ended 31/3/07 Change Gross margin (%) % pt Net margin (%) % pt Inventory turnover (days) days Capital expenditure (HK$ million) % Net cash inflow from operating activities (HK$ million) ROE (Annualised %) Debtors turnover (days) Cash and cash equivalents (HK$ million) Gearing ratio (%) Quick ratio Current ratio As at 31/3/08 As at 31/3/ Net Cash Profit margin squeezed due to: - Higher rental cost To add outlets strategically in prime shopping areas and optimise utilisation of sales areas - RMB appreciation PRC sales to mitigate the impact 155 Net Cash

8 Business Review

9 Mission Mission To dress up one s life with style To become a leading trendy fashion house and bring quality fashion to different parts of the world Financial Goals To maintain long term sustainable growth in both turnover and net profit To achieve stable dividend growth and payout ratio of not less than 30% of net profit 9

10 Corporate Strategies Three-Dimensional Growth Strategies Market Diversification Captured larger market share in massive general-trendy segment in addition to existing unique-stylish segment (in term of fashion style) Stepped in high-end fashion market (in term of pricing) Product Diversification Enhanced brand variety to launch about 10 more in-house labels Increased product variety extensive range of fashionable items and accessories Geographical Diversification Established retail network in Shanghai and Macau Increased coverage of franchise network in Mainland China Focused resource to developing wholesale distribution channels in the East Asia region 10

11 Segmental Information Turnover (HK$ million) Year ended 31 March No. of outlets Market Change (%) Market Mar 08 Mar 07 Change Self-managed retail outlets Self-managed retail outlets HK % HK Macau 23.6 N/A N/A Macau 3-3 Taiwan % Taiwan Shanghai % Shanghai Franchise outlets Franchise outlets Mainland Mainland China & % China & Macau Macau Wholesales Total Elsewhere % Total % 11

12 Turnover by Region Hong Kong continued to be the Group s core market Fast expansion of both the self-managed retail network and franchise business in Mainland China Impressive growth in Taiwan and Asian markets Taiwan 10.0% Elsewhere 11.5% Hong Kong 70.0% Taiwan 8.4% Elsewhere 9.9% Mainland China Mainland China 8.5% 6.4% FY2008 Year ended 31 March FY2007 Hong Kong 75.3% 12

13 Retail Operation - PRC Established 4 more selfmanaged retail shops in Shanghai Built strong foundation in the China s high-end fashion retail market As at 31 March outlets and about 5,778 sq. feet under the brand names of TOUGH and SALAD 13

14 Retail Outlets in PRC 14

15 Retail Operation - Hong Kong Diversified horizontally to a massive general-trendy market segment Relocated certain outlets to prime shopping areas for brand building purposes Opened fashion accessory specialty store ATTACHMENT in LCX, Tsim Sha Tsui in June 2007 Launched a new premium shop, ELITE in November 2007 As at 31 March outlets and about 73,875 sq. feet under the brand names of: BAUHAUS TOUGH SALAD 80/20 ELITE ATTACHMENT 15

16 Retail Outlets in Hong Kong ELITE specialty outlets SALAD specialty outlets 16

17 Retail Operation - Macau Commenced self-managed retail business in 2007 Established 3 flagship shops in prime shopping areas to capture huge market potential As at 31 March outlets and about 11,890 sq. feet under the brand names of BAUHAUS, TOUGH, SALAD and ELITE 17

18 Retail Outlets in Macau 18

19 Retail Operation - Taiwan Enhanced management effort and sales staff training Sustained as the leading trendy fashion retailer with sales performance surpassing industry average As at 31 March outlets and about 13,015 sq. feet under the brand names of TOUGH, SALAD and 80/20 19

20 Retail Outlets in Taiwan 20

21 Franchise Business Continuously strong domestic demand in Mainland China Increased the number of franchise outlets from 35 to 54 Efforts in establishing a well-coordinated franchised network made TOUGH a highly acclaimed brand in Mainland China The SALAD brand beginning to gain recognition in local fashion communities of the country 21

22 Wholesale Operation Recorded a drop of 9.7% in overseas market sales mainly resulted from volatile demand in Japan market To maintain a relatively stable customer portfolio through geographical diversification TOUGH outlets established in Singapore and the Philippines in 2007 Continued to streamline certain overseas distribution channels to ensure long-term sales efficiency Attended certain reputable international fashion show to maintain brand equity 22

23 Future Development

24 Outlook Retail Operation The PRC To add at least 10 more TOUGH and SALAD self-managed outlets in the 1st-tier and 2nd-tier cities in FY2008/09 To further capture the opportunities in the lucrative PRC market 24

25 Outlook Retail Operation - Hong Kong and Macau To acquire larger market share through diversification To expand retail network progressively to maintain growth momentum and brand awareness To implement cost control measures continuously 25

26 Retail Operation Taiwan Established the Group s first BAUHAUS flagship store in Taiwan after year end Outlook On top of that, to add at least 10 more new outlets in FY2008/09 26

27 Outlook Franchise Mainland China Plan to add at least 20 more franchised outlets in FY2008/09 Continue to boost popularity of TOUGH and SALAD in Mainland China 27

28 Outlook Wholesale Distribution Network Asia Pacific To continue the Group s market diversification strategy To maintain a balanced portfolio among different regions To participate in international fashion shows 28

29 Fashion Shows December 2007: BAUHAUS fashion show in Shanghai July 2008: International fashion show in Singapore 29

30 Fashion Trade Shows Regular participation in renowned international trade shows such as Bread & Butter in Barcelona 30

31 Q&A