麗豐股份有限公司 (4137.TT) Chlitina Holding Limited Chlitina Holding Limited Group Introduction
Table of Contents 2015Q1~Q3 Performance Planning and Development 2
Table of Contents 2015Q1~Q3 Performance Planning and Development 3
2015 Performance The consolidated revenue in 2015Q3 was NTD 1,137,258K, a 58.0% increase from NTD 719,995K in 2014Q3. The consolidated operating profit in 2015Q3 was 356,572 K a 67.2% increase from NTD 213,269 K in 2014Q3. The consolidated net income in 2015Q3 was NTD 326,584K, the net margin was 28.7%. The consolidated net income in 2014Q3 was NTD 175,551 K, the net margin was 24.4%. The basic EPS in 2015Q3 was NTD 4.11. 4
2015Q1-Q3 Financial Performance GP margin % Net profit margin % 78.4% 80.7% 75.0% 25.7% 24.6% 25.0% 880 918 1,137 185 222 327 622 604 720 712 992 199 160 176 176 237 595 721 824 149 183 175 2013 2014 2015 Q3 Q1 Q2 Q3 Q4 2013 2014 2015 Q3 Q1 Q2 Q3 Q4 Revenue m NTD PAT m NTD 5
2015Q3 Financial Performance 10.00 5.00 0.00 7.43 EPS(NT$) 8.72 EPS Trend 9.51 6.00 4.00 2.00 0.00 EPS(NT$) 2.21 4.11 Y2012 Y2013 Y2014 2014 Q3 2015 Q3 Note: EPS based on shares issued on September 30, 2015 (79,492K) Item Y2012 Y2013 Y2014 2014 Q3 2015 Q3 Net profit (K NT$) 2015Q3 shares balance Basic EPS (NT$) EPS of shares issued(nt$) 590,385 693,228 755,837 79,492 79,492 79,492 8.84 9.70 9.51 7.43 8.72 9.51 175,551 326,584 79,492 79,492 2.21 4.11 2.21 4.11 6
2015Q3 GPM Analysis GPM by Channels Units: NTD million Channel Franchise Salons 2013 2014 2015Q1 2015Q2 2015Q3 Revenue GPM Revenue GPM Revenue GPM Revenue GPM Revenue GPM 2,693 78.6% 2,991 81.6% 729 76.9% 825 81.5% 695 82.8% Semi-FG Sales 8 13.7% 48 14.9% 49 17.3% 100 18.2% 221 20.0% Trademark Licensing 32 100.0% 46 100.0% 67 100.0% 221 100.0% Total 2,701 78.4% 3,071 80.7% 824 74.7% 992 76.4% 1,137 73.9% 7
2015Q1-Q3 Revenue Analysis m NTD Chlitina Revenue Analysis 3,500 3,000 2,500 2,000 1,500 1,000 500 9.1% 4.7% 47.0% 39.3% 14.1% 1.4% 1.0% 3.8% 38.2% 7.8% 12.5% 11.3% 1.9% 35.4% 41.4% 31.1% Others Manufacturing Trademark Licensing Body Products Salon Poducts At-Home Skincare 0 2013 2014 2015 Q1-Q3 8
9 Financial Analysis NTD million Income Statement Summary 2014 Q1-Q3 2015 Q1-Q3 2014Q3 2015Q3 Sales Revenue 2,153,050 2,953,274 719,995 1,137,258 Gross Profit 1,752,461 2,213,969 593,653 840,600 OP Expense 1,119,100 1,371,285 380,384 484,028 OP Profit 633,361 842,684 213,269 356,572 Net Income 534,306 738,608 175,551 326,584 Basic EPS (NTD) 6.72 9.29 2.21 4.11 2015 Q1-Q3 YOY (%) 2015Q3 37.2% 58.0% 26.3% 41.6% 22.5% 27.2% 33.0% 67.2% 38.2% 86.0% 38.2% 86.0% Gross Margin 81.4% 75.0% 82.5% 73.9% OP Margin 29.4% 28.5% 29.6% 31.4% Net Margin 24.8% 25.0% 24.4% 28.7%
Financial Analysis NTD million 2013 2014 2015Q3 Total Assets 4,338 4,399 4,636 Cash 2,646 2,410 2,370 AR & Other Receivables Balance Sheet Summary 35 82 426 Inventory 235 239 442 Fixed Asset 1,109 1,149 1,121 Total Liabilities 1,372 1,070 1,063 Bank Loans 423 - - AP & Other Payables 618 782 789 Total Equity 2,966 3,330 3,573 YOY (%) 2014 2015Q3 1.4 5.4 (8.9) (1.7) 132.9 419.5 2.0 84.9 3.5 (2.4) (22.0) (0.7) (100.0) 26.6 0.9 12.3 7.3 ROA 22.0% 17.6% 21.80% ROE 35.0% 24.0% 28.50% Net cash* 2,397 2,627 2,370 *Net cash = cash & cash equivalents + other current financial assets (time deposits, money market fund and government bond related) bank loans Note: The increase of AR and OR mainly due from the increase of trademark licensing revenue and semi-fg sales to Kelti China. 10
Table of Contents 2015Q1~Q3 Performance Planning and Development 11
Market Landscape Cosmetics Market Scale in China China: a blossoming market Units: RMB 100 mn 4500 4000 3500 3000 2937 3116 3332 3589 3887 4230 2500 2000 1500 1000 500 0 2014 2015e 2016e 2017e 2018e 2019e Source:Euromonitor(May 2015) 12
Brand Benefiting from Brand Positioning & Investment Channel Product The Chlitina brand is positioned at the affordable luxury level, targeting rising middle-class consumers in China. Chlitina focuses on fast-growing market segments: high-end skincare & high-end beauty products. 1,200 1,000 800 Million 1,042 Surging Middle-Incomers in China -4% 725 +28% 2007-2017 CAGR 2007 2017E 600 433 400 +16% 200 36-2 9 < $7,500 $7,501-80,000 > $80,000 Source: Euromonitor (May 2012). Annual Income (US$) 13
Brand Chlitina Brand TV program sponsorship Channel Product Zhejiang Satellite TV- Love Village Hubei Satellite TV- If you love Product Display Flagship Store Scene 14
Channel Brand Product Chlitina Brand Magazines and Billboards Newspaper and Magazines Billboards in Shanghai Taipei Taoyuan International Airport Lightboxes 15
Brand A Clear Strategy to Realize Franchise Value Channel Product Asset-light, franchise-based model to capture growth opportunity in the China beauty industry 25 well-established branch offices to ensure business strategy is effectively carried out to each region and store cover up to 70% of China s population Pleasing our customers is our top priority, but we place equal emphasis on our franchisees. We strive to develop a franchise model that inspires entrepreneurship among franchisees increases franchisee and customer stickiness Resilient Store Portfolio 50% 30% Source: company data > 3 yrs > 5 yrs Store age 16
CHLITINA The Most Scalable Skincare Franchise in China with over 3,500 Exclusive Stores, and Still Growing Channel Brand Product Xinjiang Uyghur Autonomous Region 10 locations Tibet Autonomous Region 4 locations Northeast China North China East China Southeast China Northwest China Southwest China Taiwan Qinghai 1 location Chengdu Flagship store Inner Mongolia Autonomous Region 113 locations Ningxia Hui Autonomous Region 7 locations Gansu 4 locations Hebei Shanxi 108 locations 83 locations Shaanxi 51 locations Sichuan 100 locations Chongqing City 52 locations Yunnan 13 locations Guizhou 39 locations Liaoning 80 locations Beijing City 224 locations Tianjin City 175 locations Henan 58 locations Hubei 202 locations Hunan 201 locations Guangxi Zhuang Autonomous Region 23 locations Hainan 8 locations Anhui 132locations Jiangxi 115 locations Guangdong 367 locations Shandong 123 locations Heilongjiang 39 locations Jilin 31 locations Jiangsu 365 locations Shanghai City 335 locations Zhejiang 447 locations Fujian 66 locations Shanghai Flagship store Taiwan 225 locations Taipei Flagship store 17
Channel Brand Product 4000 3500 3000 There is Still Substantial Untapped Potential in Lower Tier Cities 3586 3413 3004 3086 2500 2000 2012 2013 2014 2015 Q3 No of Cities Penetrated 2012 2013 2014 2015Q3 Total 329 334 346 351 2015Q3 # of Stores % of Total Sales (NT$ K) % of Total Tier 1 Cities 968 27.0% 583,046 29.1% Tier 2 Cities 724 20.2% 396,656 19.8% Tier 3 Cities 548 15.3% 305,902 15.3% Tier 4 & 5 Cities 1346 37.5% 718,667 35.9% Franchisee sales 3586 100.0% 2,004,270 100.0% Others* 968,376 Total 2,972,646 *Others include HK/Taiwan sales, sales from related party, and franchise fees 18
Brand Selling 3DR and Peekaboo through Kelti China s Direct Sales Channel Channel Product Manufacturing of Licensed Semi-Finished Products R&D+ Raw Materials+ Formula+ Labor Manufacturing of Finished Products Filling and Packaging Selling of Products Direct Sales Channel Licensing of Products Trademark License agreement with Kelti China in 2012: if Kelti s monthly sales from licensed products exceed RMB10mn, Chlitina recognizes 6% of sales as trademark licensing income. GPM: 17-20% Net M: 13-15% GPM: 100% Net M: 83-84% 19
Channel Brand Product Mid-high end e-commerce brand: to enhance the stickiness of the existing franchise salon channel Products focused on beauty and health A wider consumer group Products in Each Channel Chlitina E-commerce Franchise Salon Brand Licensing Lifestyle Beauty High personalization Products+ Service+ Equipment+ Extensions 3DR : facial skincare products Peekaboo : color cosmetics, at-home skincare, body products 20
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