FY13

Ports Design Limited
(Stock code: 0589)
2013 Annual Results
This document is for information only. This document may contain time-sensitive information which is
only current as of the date of publication. In addition, this document may also contain “forward
looking statements” which are subject to risks and uncertainties. No reliance may be placed on the
information contained in this document or on its completeness, accuracy or fairness, nor is any
responsibility accepted by any person, including Ports Design Limited (the “Company”), its affiliates, its
and their directors, officers, employees, agents and advisers for any errors, misstatements, or
omissions or any direct, indirect or consequential loss incurred or suffered howsoever arising from any
use of, or reliance on, this document or otherwise in connection with it. Please refer to the Company’s
latest issued annual or interim report for detailed financials.
Results Highlights
Business Review
Latest Updates
Future Development
Q&A
1
Results Highlights
Group’s turnover increased by 1.8% to RMB 2,137 million for FY 2013
Same store sales growth at approx. 3.0%
Stable Retail Gross Margin at 85.9%
Net Profit was RMB 293 million, declined by 16.3%
Retail network comprising of 352 stores
Strong cash inflow from operating activities
– FY13 – 20.9% increase as compared with FY 2012
Improved gearing ratio – FY13 - 35.4% (FY12: 45.6%)
Total liabilities decreased by 13.8% in FY13
Stabilized inventory level showing encouraging turnaround signal
Refurbishment of overseas stores and flagship stores under pipeline renovation
Development of diffusion line -Ports Pink and others (TABI)
Launching of signature products –standalone accessories line “No.10 Bag”
2
Results Highlights - Financial Review
RMB mil
FY12
FY13
Change
Turnover
2,098
2,137
1.8%
Gross Profit
1,720
1,735
0.9%
Operating Profit
481
411
-14.5%
Profit for the year
354
298
-16.0%
Profit Attributable to
Equity Shareholders of the Company
351
293
-16.3%
Basic Earnings per Share (RMB cent)
0.62
0.53
-14.5%
EBIT
494
444
-10.1%
Gross Margin
81.9%
81.2%
-0.7pp
Operating Margin
22.9%
19.2%
-3.7pp
Net Margin
16.9%
14.0%
-2.9pp
3
Results Highlights - Financial Review
RMB mil
FY12
FY13
Change
345
417
20.9%
Cash and cash equivalents*
1,292
1,293
0.1%
Interest bearing borrowings
845.4
717.2
-15.2%
Total liabilities
1,168
1,006
-13.8%
Net assets value
1,853
2,023
9.2%
Net assets per share (RMB)
3.3
3.6
9.1%
Current assets ratio (times)
2.13
2.44
14.6%
Gearing ratio
45.6%
35.4%
-10.2pp
Return on equity
19.3%
14.8%
-4.5pp
Net cash from operating activities
Cash flow from operating activities increased 20.9% to 417 million
The Group’s gearing ratio dropped to 35.4% (FY12: 45.6%)
The Group’s total liabilities decreased by 13.8% to 1,006 million
Note: *”Cash and cash equivalents” includes Pledged bank deposits, fixed deposit with banks and cash and cash equivalents.
4
Business Review – Turnover
Group’s Turnover
(RMB Mil)
2,500
94.2%
93.0%
92.2%
100%
90%
2,000
80%
70%
1,500
1,952
1,970
60%
50%
1,869
1,000
40%
30%
500
20%
7.0%
7.8%
116
147
167
2011
2012
2013
5.8%
0
10%
Group’s turnover rose to RMB
2,137 million, representing a
1.8% increase as compared with
FY2012
Same store sales growth at
approx. 3.0%
Retail division accounts for
92.2% of total revenue, which
includes revenue of Ports core
brand and other licensed brands
business
0%
Retail
Others
Retail as % of Turnover
Others as % of Turnover
5
Business Review – Others Segment Turnover
Other Segment Turnover
(RMB Mil)
200
167
147
150
116
Others division comprises of OEM,
eyewear business and other
wholesale business, which accounts
for 7.8% of total revenue. Gross
profit margin for Others segment
was 25.8% (FY12: 28.7%)
100
50
0
2011
2012
2013
Note: *OEM business included in Others Segment
6
Business Review – Operating Performance
(RMB Mil)
2,000
1,500
Retail Turnover
1,869
1,952
1,970
Cash Flow from operating activities
530
1,568
1,424
(RMB Mil)
420
1,000
417
+20.9%
345
500
310
0
2009
2010
2011
2012
2013
200
2012
83.7%
85.9% 85.9%
85.9% 85.3%
1,600
86.2%
82.1%
80%
Total Liabilities
(RMB Mil)
90%
76.5%
2013
78.5% 80.9%
1,319
-11.4%
1,168
1,200
76.8%
-13.8%
1,006
800
70%
Retail Gross Profit Margin
400
60%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
2011
2012
2013
7
Business Review – Operating Performance
(RMB Mil)
2,500
100%
2,137
2,098
2,000
81.9%
81.2%
80%
1,500
60%
1,000
40%
22.9%
500
16.9%
481 354
19.2%
14.0%
411 298
-
20%
Gross profit margin remained
stable at 81.2%
Operating profit margin
declined from 22.9% in FY12
to 19.2% in FY13, due to
increase in staff cost and
heavy investment on store
related expenses
Net profit margin dropped to
FY13: 14.0% (FY12: 16.9%)
0%
2012
Turnover
Profit for the year
Operating Margin
2013
Operation Profit
Gross Margin
Net Margin
8
Business Review – Profit from Operations
RMB Mil
Retail
Others
The Group
FY13
FY12
FY13
FY12
FY13
FY12
Turnover
1,970
1,952
167
147
2,137
2,098
% of Turnover
92.2%
93.0%
7.8%
7.0%
100%
100%
Gross Profit Margin
85.9%
85.9%
25.8%
28.7%
81.2%
81.9%
(RMB Mil)
600
500
481
Profit from Operations was RMB411
million(FY12: RMB481 million),
representing a 14.5% decrease
-14.5%
411
400
351
-16.3%
293
300
200
100
Profit Attributable to Shareholders
was RMB293 million (FY12: RMB351
million), representing a 16.3%
decrease
-
FY12
FY13
Profit from Operations
Profit Attributable to Shareholders
9
Business Review – Operating Expenses
(RMB Mil)
1800
(% of Total Turnover)
62.3%
59.4%
60.0%
1500
6.8%
1,331
1,247
1200
188 (9.0%)
85 (4.1 %)
6.0%
21.9%
176 (8.2%)
104 (4.9%)
900
600
50.0%
40.0%
30.0%
973 (46.4%)
8.3%
1,051(49.2%)
300
10.0%
0
0.0%
2012
Distribution Costs
20.0%
Administration Costs
2013
Other Opex
% of Revenue
10
Business Review –
Operating Expenses - Distribution Costs
1500
(% of Retail Turnover)
(RMB Mil)
60.0%
53.3%
1200
49.9%
50.0%
8.0%
973
900
600
1,051
3.8%
8.1%
23.3%
6.7%
82 (4.2%)
79 (4.0%)
113 (5.7%)
95 (4.8%)
197(10.1%)
8.0%
213 (10.8%)
431 (22.1%)
8.8%
469 (23.8%)
79 (4.0%)
86 (4.4%)
91 (4.7%)
89 (4.6%)
300
0
40.0%
30.0%
20.0%
10.0%
0.0%
2012
Rental Charges
Depreciation
% of Retail Revenue
2013
Salaries&Benefit
Advertising&Promotion
Store&Mall Expenses
Other*
Note: *Others include transportation, office sundries and miscellaneous
11
Latest Updates – the No. 10 Bag
Ports 1961 launched a handbag collection branded “No. 10” Bag, which is inspired by an iconic “No.10 blouse. A
limited edition in on-trend dusty pink was created to celebrate the launch of this collection at the glamorous
multi-brand store Banner in Milan Feb 2014
12
Latest Updates – Ports Pink
13
Latest Updates – Media recognition
PORTS brand remains to be among the 10 most
desirable brands in ladies wear in the PRC market
according to the 2013 survey conducted by Hurun
Report.
14
Latest Updates – Milan Fashion Week 2014
15
Latest Updates – Overseas Media coverage
16
Latest Updates – Overseas Media coverage
17
Latest Updates – Overseas Media coverage
18
Latest Updates – Overseas Celebrities in Ports 1961
Miss Universe
Gabriela Isler
British Actress
Emilia Fox
Top Model Lisa Cant
Archie Panjabi
19
Latest Updates – Overseas Celebrities in Ports 1961
Aviva Drescher
Sandra Lee dons
Brooklyn Decker
Alyssa_Milano
Jess weixler
Diana Kruger
Carey Mulligan
Gaia Bermani Amaral
20
Latest Updates – Overseas Celebrities in Ports 1961
Omar Epps
Paul Rudd
Jonny Lee Miller
JoshuaDallas
Heather Graham
21
Latest Updates – Chinese Celebrities in Ports 1961
Lin Zhiling
Zhao Wei
Gao Yuanyuan
Song Jia
Liu Yifei
Song Jia
Yao Chen
Wang Luodan
22
Latest Updates – Chinese Celebrities in Ports 1961
Zhang Liang
Guo Tao
Deng Chao
Tian Liang
23
Latest Updates – Ladieswear Fall Winter 2014
24
Latest Updates – Menswear Fall Winter 2014
25
Latest Updates – Our Accessories
26
Latest Updates – Our Accessories
27
Latest Updates – Our Accessories
28
Latest Updates – Our Flagship stores
Ports 1961 Flagship store on Rue St Honoré at the Mandain Oriental, Paris
29
Latest Updates – Our Flagship stores
Galaxy International Shopping Center, Tianjin
The Bund, Shanghai Flagship store
Latest Updates – In-store design
31
Future Development
Expand our global exposure and enhance our
reputation as one of the globally recognized
designer’s labels in the luxury fashion market
Offer high quality services and shopping experience in
line with the best in the global fashion arena
Develop and explore different means of distribution
channels globally
Execute a prudent and efficient capital management
to maintain a solid financial condition for long term
development
32
Contact Us
For further information, please contact:
Ms. Clara Chan
Investor Relations Manager
+852 2506 0138
[email protected]