Turnover

Modern Beauty Salon Holdings Limited (HKSE: 919)
Corporate Introduction
1
Disclaimer
This presentation contains forward-looking statements that involve risks and
uncertainties. These statements are generally indicated by the use of forwardlooking terminology such as believe, expected, anticipate, estimate, aim, intend,
plan, will, may, should or other similar words are considered as forward-looking
statements. Such forward-looking statements merely reflects the views of the
management of the Company on the day of announcement. You should not place
any reliance on any of these forward-looking statements. The Company also does
not guarantee that the future results or happenings will be consistent with such
forward-looking statements. Modern Beauty Salon Holdings Limited does not
make any guarantee, representation or warranty as to the adequacy, accuracy,
completeness, reliability or fairness of any such information and opinion
contained in this material.
2
Content
Introduction & Business Review
4
Financial Review
13
Future Plan
26
Appendix
31
3
Introduction &
Business Review
4
Milestone
6
Expansion to SE Asia Market
•
Seize the opportunity in the beauty care market
in Southeast Asia and established footholds in
Singapore and Malaysia
•
Acquisition of the beauty care service business
of Zegna Management Limited and its
subsidiaries, in Singapore and Malaysia, at a
consideration of HK$ 250 million
•
Acquisition completed on 10 Jan 2012
•
12 centres in total: 9 in Singapore; 3 in Malaysia
•
Turnover contributed in Year 2011/12 amounted
to HK$109 million
Enhance the Group’s market share in Asia
and boost brand popularity
7
Service Centres &
Retail Network
No. of
shops
Total GFA
(sq. feet)
Avg. GFA
(sq. feet)
Hong Kong
29
257,000
8,900
Mainland China
10
48,799
5,100
SE Asia
13
31,782
2,800
Service centres
54
333,900
6,700
Retail outlets (Hong Kong)
16
Total
68
As at 31 March 2012
New Territories
Tsim Sha Tsui, Hung Hom,
Kwun Tong, Mong Kok,
Mei Fu, Lai Chi Kwok,
Sun Po Kong, To Gwa Wan etc
Hong Kong
Tuen Mun, Yuen Long, Tai Po,
Ma On Shan, Fo Tan, Tsuen Wan,
Kwai Fong, Tseung Kwan O,
Sheung Shui, Kwai Chung, Fan Ling etc
29 Service Centres
10 be Beauty Shops
6 p.e.n Shops
Kowloon
Hong Kong
Seung Wan, Central,
Admiralty, Causeway Bay,
Happy Valley, Aberdeen,
North Point, Tai Koo Shing etc
4 shops in Beijing
3 shops in Shanghai
3 shops in Guangzhou
Malaysia
Singapore
8
Product Sales
•
Turnover amounted over HK$46.8 million, soared by 14.4%
•
Continued to strengthen sales network
•
Operating 16 points of sales currently
9
Our Brands
“p.e.n”、”be”、”Ferrecare”，
Overseas Production in Switzerland and Australia respectively
10
Brands other Distribution Rights
“Advanced Natural”、“BeYu”and“Jean Klebert”
Upcoming New Brand under Distribution Right - Bioline
11
Service Upgrade
 Real-time appointment system with electronic signature
confirmation is developed for customers’ convenience
 Customers can also make the appointments through
mobile phones with SMS confirmation by automatic
system
 The system is tested and updated regularly to ensure
the confidentiality of the customers’ information
 Strengthened market promotions to increase market
popularity during the year
12
Financial Review
Results Highlights
 Annual turnover increased by 5.3% to approximately HK$757 million
 Turnover of beauty and wellness services increased by approximately 5% to about HK$710
million
 Net profit attributable to shareholders for the year was approximately HK$82 million,
reduced by approximately 8% comparing to year 2011
 The Board of Directors recommended the distribution of final dividend of HK4.25cents,
making a full year dividend of HK7.63cents
 Acquisition of the beauty care service business of Zegna Management Limited and its
subsidiaries, in Singapore and Malaysia, at a consideration of HK$250 million during the
year
14
Results Highlights (Cont’d)
During the year 2011/12, the Group acquired the beauty service business in Singapore &
Malaysia; such geographical expansion led to an increase of the Fgroup’s turnover and net
profit to HK$757m and HK$82.14m respectively, from 2010/11’s HK$587m and HK$43.98m
as announced in the 2010/11 results.
Thus, for investors’ reference, the Group announced a “Positive Profit Alert” after the end
of the financial year. During audit, due to the acquisition of the business in Singapore and
Malaysia, as suggested by the auditor, the Group restated the 2010/11 annual results
according Accounting Guideline 5 “ Merger Accounting For Common Control Combinations”,
which to include pre-acquisition performance of the Singapore & Malaysia business in the
restated result.
After audit, the turnover of net profit of 2010/11 are restated to HK$718m and HK$89.26m
respectively. Hence, the annual increment in the net profit is affected and changed to
decrement on the accounting book.
15
Financial Summary
HK$ ’000
For the Year ended 31 March
2012
2011
(announced 2012)
Change
Turnover
756,605
718,230
+5.3%
Profit before tax
101,357
107,491
-5.7%
Profit for the year
82,137
89,263
-8.0%
Earnings per share
11.19
12.33 cents
-9.2%
Interim dividend per share
3.38 cents
1.40 cents
+141.4%
Final dividend per share
4.25 cents
2.88 cents
+47.6%
Full year dividend per share
7.63 cents
4.28 cents
+78.3%
2012
2011
Change
648,623
567,627
+14.3%
HK$ ’000
Deferred Revenue
16
Financial Summary
HK$ ’000
For the Year ended 31 March
2012
2011
(announced 2011)
Change
Turnover
756,605
586,527
+29.0%
Profit before tax
101,357
51,810
+95.6%
Profit for the year
82,137
43,975
+86.8%
Earnings per share
11.19
6.07
-84.3%
Interim dividend per share
3.38 cents
1.40 cents
+141.4%
Final dividend per share
4.25 cents
2.88 cents
+47.6%
Full year dividend per share
7.63 cents
4.28 cents
+78.3%
2012
2011
Change
648,623
587,834
+10.3%
HK$ ’000
Deferred Revenue
17
Turnover
Turnover
By Business Segments
HK$ million
900
10%
786
800
718
5%
5%
757
662
700
15%
16%
614
69%
600
500
2012
6%
2011
74%
498
431
Beauty & Skin Care
400
300
Slimming
Spa
Product Sales
600
200
500
100
2011
400
0
2006
2007
2008
2009
2010
2011
2012
2012
300
502
Major sources of growth
• Remarkable growth in beauty & skin care and product sales
• Optimistic growth in the turnover of Hong Kong business
• Growth of 9.3% in sales of prepaid beauty package
to HK$7.9 million
557
200
100
114 113
0
Beauty & Skin Care
Slimming
54 35
41 47
Spa
Product Sales
18
Turnover Analysis
Geographical Segments
2011
2%
2%
5%
17%
5%
2011
6%
2012
2012
-
94%
82%
Mainland China
6%
12%
77%
Hong Kong
Business Segments
Singapore
94%
Services
Malaysia
Product Sales
HK$ million
700
HK$ million
11.4%
4.9%
600
800
500
2011
400
300
2012
616
553
600
400
200
9.1%
100
33
0
HK
36
China
2011
677
14.6%
200
120 92
Singapore
13 12
Malaysia
2012
710
41
0
Services
47
Product Sales
19
Cost Analysis
Employee Expenses
% of Turnover
HK$ million
59%
400
60%
50%
48%
48%
50%
350
35%
40%
300
250
200
343
333
274
30%
367
20%
254
10%
150
0%
2008
2009
2010
2011
2012
% of Turnover
Occupancy Costs
HK$ million
140
130
120
110
100
90
80
70
60
50
Advertising Costs
% of Turnover
25%
25%
HK$ million
30
% of Turnover
4.3%
4.0%
17%
16%
20%
25
15%
20
10%
15
5%
10
3.0%
15%
3.0%
2.1%
10%
112
109
115
115
80
0%
2008
2009
2010
2011
% of Turnover
2012
28.2
1.5%
23.8
1.5%
2.0%
1.0%
8.8
11
11
2010
2011
2012
5
0.0%
2008
2009
% of Turnover
20
Profits and Profit Ratios
Gross Profit (GP)
Net Profit (NP)
HK$ million
GP Ratio
600
60%
59%
70%
62%
60%
500
49%
48%
49%
400
37%
50%
250
298
364
355
329
100
371
10%
162
2006
2007
2008
2009
2010
GP Ratio
20%
2011
2012
0%
30%
25%
200
20%
150
50
10.9%
177
123
89
2.6%
17
0
15%
12.4%
227
30%
490
NP Ratio
29%
25%
100
200
29%
40%
300
0
HK$ million
82
2006
2007
2008
2009
5%
N/A
0%
(41)
-50
10%
2010
NP Ratio
2011
2012
-5%
Capital Expenses
HK$ million
180
Capital Expenses are mainly for:
160
• Renovation for the leased properties
140
• Vehicle expenses
120
• Machines and equipment
100
80
157
• The increase of the capital expenses for the
year is mainly due to the expansion of service
network in Hong Kong and SE Asia
153
60
40
20
0
59
44
47
23
2007
2008
2009
2010
2011
2012
The capital expenses excludes the acquisition of
properties; Acquisition of properties in 2010 was
HK$135 million, HK$18 million in actual; Acquisition of
property in 2008 was HK$93 million, HK$64 million in
actual
22
Cash Position
HK$ ’000
2012
2011
Change
Cash & bank balances
484,426
449,495
+7.8%
Pledged bank deposits
7,141
7,160
-0.3%
Receivables, deposits,
prepayments etc
217,466
177,219
+22.7%
•
The Group keeps the cash for routine operating expenses, e.g. procurement of skin care and
wellness products, materials and consumables for beauty and wellness service and others
(including Employees’salaries, rent etc.)
•
The remaining amount is mainly kept in saving account or as time deposit
23
Net Assets
For the Year Ended 31 March
Net Assets (HK$ 000’)
2012
2011
2010
272,143
281,529
196,007
723,520
723,520
723,520
10,690
-
-
734,210
723,520
723,520
0.37
0.39
0.27
Number of Shares, with HK$0.1 face value each (000’)
Issued ordinary shares at 1 April
Effect of conversion of convertible note
Weighted average no. of ordinary shares for the
purpose of calculating basic earnings per share
Net Asset per Share (HK$)
24
Financials– Peer Comparison
Modern Beauty（919）
P/E
Dividend Yield
Proportion of profits from
Beauty Services business to
overall profits
Water Oasis（1161） Perfect Shape（1830）
8.4¹
10.1²
5.6¹
0.08¹
0.10²
0.05³
80.9%⁴
68.3%⁵
N/A
1On
4 July 2012；on the basis of annual result 2011/12
2On
4 July 2012；on the basis of annual result 2011
3On
4 July 2012；calculated on the basis of final dividend of 2011/12
(listed on 13 December 2011)
4F/Y
2011/12；net profit of beauty & wellness service business to the entire net profit of company
5F/Y
2011；net profit of beauty service business to the entire net profit of company
25
Future Plans
26
Staff Training & Welfare
 In order to maintain leadership in delivering services, quality
training programs are updated from time to time to focus on
latest and most popular services.
 Ms. Joyce Tsang, with dedication and passion in her profession,
has contributed greatly in the betterment of the beauty service
industry in Hong Kong and the Asia Region.
 “Beauty Expert International College” was established in 2003. It
is a beauty training college offering training to both internal and
external beauty consultants recognized by the industry.
 The college had trained numerous professional beauty
consultants over 10 years. These qualified specialists have
pursued a successful career either in Modern Beauty or in the
beauty service industry and some have been promoted to
management level.
 Service programs and training are updated from time to time
with the industry’s latest product knowledge.
27
Staff Management
28
New Service Centres
For expansion purpose of Beauty Service business, the Group will open more service centres in the coming year:
Rooms
Opening in
7 Rooms
July 2012
11/F World-Wide House, Central
23 VIP Rooms; 34 Rooms
Aug 2012
1 & 2/F, Paradise Square, 3 Kwong Wa St., Mong Kok
14 VIP Rooms; 15 Rooms
2nd Half of 2012
Arcadia Court, Chengdu, China
15 Rooms
2nd Half of 2012
Bedok, Singapore
9 Rooms
Opened
Hong Kong
Shop 30, G/F , Ma On Shan Plaza 5, Ma On Shan
29
Future Plans
Product Sales
Year 2012/13：
Expected to develop 50 retail outlets under the brand “p.e.n”:
•
Hong Kong：
To develop 15 retail outlets under the brand “p.e.n”;
To reconstruct 10 retail outlets under “be” into “p.e.n” retail outlets
•
Singapore/ Malaysia：To develop 15 “p.e.n” retail outlets
•
Mainland China: To develop 10 “p.e.n” retail outlets
Beauty service
Year 2012/13：Strengthen the Market Coverage
•
Re-positioning in the PRC’s market; Focus on expansion with
acquisitions in Mainland China
•
Maintain steady development in Hong Kong
Target to develop in the second/ third-tiered cities in Mainland China, both service
centres and retail shops of beauty products
30
附錄
Appendix
31
Three Years Financial Summary
Up to 31st March of the Year
Consolidated Results (HK$ ‘000)
2012
2011
2010
Turnover
756,605
718,230
430,750
Profit/(loss)before tax
101,357
107,491
(54,392)
Income tax（expenses）/credit
(19,220)
(18,228)
13,147
82,137
89,263
(41,245)
Total non-current assets
288,824
276,813
265,507
Total current assets
729,920
653,128
512,922
1,018,744
929,941
778,429
(4,556)
(37)
(53)
Total current liabilities
(742,041)
(648,375)
(582,369)
Total liabilities
(746,597)
(648,412)
(582,422)
272,147
281,529
196,007
Profit/(loss)for the year
Consolidated assets and
liabilities (HK$’000)
Total assets
Total non-current liabilities
Net assets
32
Brands
Beauty and Facial care Services
Most Consumed Facial Programs
Light For Cyclone Radio Frequency
Cyclotron frequency compact bipolar treatment uses clinically proven RF technology, with good shaping,
firming and lifting effect. More effective in stimulating the secretion of collagen, atrophy of bone collagen
to fill the gap, so that cells increase the amount of exercise and excess body toxins drain away. With the
continued proliferation of bone collagen and rearranging, an increase of dermal thickness and density, can
immediately feel the upward skin firming effect.
Treatment For Micro Tightening Facial
Reshape the contours of fiber surface instrument has Roboderm patented technology, the use of different
slots of the roller nest covered with the treatment head of the treatment site have MMAS (Multi-Micro
Alveolar Stimulation) micro-cavity physical stimulation. At the same time head of Xichuo through roller
treatment, the skin being one of 1,180 per square decimeter micro-cavity physical stimulation, without a
point in the pumping force pull, also on the thickness of tissue irritation, and thus not to hurt the skin.
Treatment For Arizona Stone Facial
Minerals using a special stone from Arizona coupled with the natural extract of aromatherapy massage oil,
heating the mineral stone massage can stimulate blood circulation, accelerate metabolism and help rid the
body of toxins. Through long-term ion exchange, softening water, health beauty, meditation diastolic
pressure effect.
Treatment For Royal Jelly
Honey White tightening treatment to help skin deep clean, efficient burning of fat and lean muscle; to help
tighten pores and remove wrinkles, promote skin absorption of nutrients and water, moisture repair skin,
the skin becomes smooth and delicate.
Light For Thermastar
ThermaStar is a highly sophisticated TriPolar Radio Frequency (RF) device that minimizes the pain and
maximizes the results. By targeting specific tissue layers direct, it uses less energy than any other RF
technology and does not need to be cooled down after use. This unique function also means treatments
are virtually pain-free with no skin cooling required. It is the ultimate non-invasive weapon in combating
skin ageing, cellulite and subcutaneous fat deposits.
Slimming Services
Most Consumed Slimming Programs
Slimming For Lymph body by hand
The lymphatic system is a critical part of the circulatory system. Massaging of the lymphatic vessels
can stimulate circulation. This treatment covers over 700 lymph nodes in the body and is effective
for detoxification and improve the immune system.
Slimming For Quantum Effect Slimming Treatment
Vacuum and quantum effect can stimulate lymphatic system, reduce congestion, enhance blood
circulation and cells metabolic rate. This is an effective treatment for detoxification and improve
body shape.
Slimming For Cyclone Radio Frequency Treatment
Cyclone Radio Frequency heats up the water containing tissues under control without letting them
to go deeper tissues. This has the effect of dissolving of the fat tissue, increase of collagens and
renovation of the connective tissue leading to slimming, loosing weight, disappearing of the
cellulites, recovery, overcoming the loosening, disappearing of the wrinkles.
Slimming For Cavition Treatment
CAVITATION – ULTRAPORAZIONER generates pulsating ultrasound waves across the skin surface to
reduce localized fat tissue. Ultrasonic sound waves focus their energy in the subcutaneous fat,
hitting the fat cells under the skin and causing them to vibrate and to break up the cell membranes.
Once the fat cells are broken down, they are transported out of the body through the lymphatic
system. The destroyed fat cells will be released from the body system naturally.
Slimming For Micro Slimming Treatment
An exclusive Roboderm® technique, this treatment employs hand pieces with two rollers, each
equipped with 132 micro alveoli that create the so-called MMAS: Multi Micro Alveolar Stimulation.
The skin receives, in this way and at each passage, a total of 1180 micro stimulations per square
decimeter! The micro alveoli in the rollers use fractal suction to stimulate the micro vacuoles in the
tissue, which is thus treated homogenously and precisely. The benefits of this treatment are
appreciable right from the first minutes of treatment, thanks to the profound feeling of pleasure
and well-being it induces.
Spa Services
Most Consumed Slimming Programs
Hot Stone Massage
The heat of hot stone will transmit to the body with essential oils and unique massage to help balance
the body energy, stimulate blood circulation, stimulate the body lymphatic system, so that more
healthy body, in order to help to reduce fatigue.
Shoulder Ginger Bag Therapy Massage
The health benefits of ginger are primarily due to ginger's exceptional antioxidant content. The primary
job of antioxidants is to protect cells against the oxidative stress caused by free radicals, considered to
be the primary cause of the aging process.
This treatment can also help to relax the muscles strain to accelerate the foot blood circulation,
improve water retention and relieve the periodic discomfort of women.
Deep Sea Shell Spa Facial
This series of products derived from non-polluted pure pearl ingredients, to help replenish the collagen
molecules as fine pearls, easy for the skin absorb, and accelerated skin regeneration, to maintain soft
moisture skin.
Soy Milk Spa Facial
Soybeans scrub can help to remove blackheads and clean pores which make the skin shiny, soft and
elastic, also help to reduce fine lines and wrinkles around the eye area.
Organic Smoothing Spa Facial
Organic rice contains natural water-soluble vitamins, protein, minerals and trace elements, which can
promote detoxification, and increase the metabolism of skin cells, preventing cell aging, and improving
the metabolism of skin cells. This treatment is especially good for oily skin, acne, wrinkles, freckles,
sensitive, dry or dry skin.
36
Exclusive Premium Facial Products
- by Be, P.E.N., Ferrecare, Jean Klebert, Advance Natural, BeYu
Most Consumed Facial Products
Vit A Illuminating Serum by Jean Klebert
Removal of dead skin cells and moistening of skin, leaving skin clear
Rich in anti-oxidant, able to combat free radicals, leaving skin radiant and
clean
Effective for suppressing melanin, making skin fair and healthy
Vit A Eye Cream by Jean Klebert
Drastically reduces the depth of subtle wrinkle lines and instantly moisturizes
the delicate eye-contour area. Also imporoves skin texture and tone, soothes
calms and reduces periocular sweelling
Collagen Regenerating Cleanser by be
Deep Cleansing and moisturizes skin
Amino acid forms little protein molecules to improve secretion
Increases skin elasticity and prevents wrinkle formation
C.B. Formula Rich Moisturizing Serum by Ferrecare
Booster of cells activity
Skin protecting and keep it moisturizing
C.B. Formula Resilience Lifting Serum by Ferrecare
Enriched with active plant ingredients, improve skin elasticity and firmness,
reduce fine lines, skin cells and promote rehabilitation of antioxidant
effectively
37
Thank you！
38