Trinity Limitedit Stck Cde: 891 9 August
Brand Activities Intrductin Cutting Our Clth T Suit Cnditins Highly efficient e stre netwrk Fcus n cre Chinese cnsumers Re-engineering cmpany and supply chain Refcused and leaner management team Build n British and Eurpean brand heritage 2
Brand Activities Agenda Market Cmpany Results Pririties Brands Outlk 3
Driving revenue Market Subdued spending envirnment in Greater China cntinues Decline in visitrs it t Hng Kng and Macau, as well as reduced d luxury spending in these markets Turism arrivals frm the Chinese Mainland t Hng Kng, saw a significant drp f 11% Widespread discunting acrss the industry Current market cnditins expected t cntinue 4
Driving revenue Cmpany Clsure f nn-perfrming stres Restructuring f supply chain netwrk Clsure f casual wear prductin line in Hng Kng (Rerganisatin csts f HK$22.8 millin) Appintment f new CEO 5
Results fr 1H
Results Financials HK$ millin 1H 1H 2015 16 vs 15 Variance Revenue 890.8 1,006.4 (115.6) (11.5%) Grss Prfit 606.8 711.4 (104.6) (14.7%) Grss margin 68.1% 70.7% 7% (2.6 pp) Cre Operating Prfit/(Lss) (169.9) (118.0) (51.9) (44.0%) Operating margin -19.1% 1% -11.7% (7.4 pp) Revenue was mainly impacted by the dampened cnsumer sentiment in Greater China Grss margin fr the retail business remained stable at 70.1%, but verall margins fr the Grup were impacted by a change in the whlesale/ retail mix Cre perating prfit reprted fr the first time befre nn-peratinal items, etc. 7
Results Net Prfit Analysis HK$ millin 1H 1H 2015 Cre Operating Prfit/(Lss) (169.9) (118.0) Gain n Remeasurement f Cntingent Purchase Cnsideratin Payable fr Acquisitin - 50.0 Rerganisatin Csts (22.8) - Net Finance Csts and Others (8.5) (2.8) Incme Tax 0.8 23.4 Lss Attributable t Sharehlders (200.4) (47.4) HK$50.0 millin gain in 2015 frm the Remeasurement f Cntingent Purchase Cnsideratin Payable fr Acquisitin f Gieves & Hawkes, did nt recur this year Rerganisatin csts f HK$22.8 millin due t clsure f casual wear prductin line Reductin f incme tax credit f HK$22.6 millin 8
Results Sales Analysis HK$ millin Ttal Sales Change in Ttal Sales 1H 1H 2015 HK$ Lcal Currency Retail Chinese Mainland 377.9 491.5 (23.1%) (19.5%) Hng Kng & Macau 258.1 296.6 (13.0%) (13.0%) Taiwan 64.8 78.8 (17.8%) (14.2%) Rest f the Wrld 71.2 81.0 (12.1%) 1%) (7.5%) Retail Subttal 772.0 947.9 (18.7%) (16.0%) Whlesale and Licensing 118.8 58.5 102.9% 109.3% Grup Ttal 890.8 1,006.4 (11.5%) (8.7%) Change in Same Stre Sales HK$ Lcal Currency (16.3%) (12.4%) (11.9%) (11.9%) (18.1%) (14.5%) (8.3%) (3.1%) (14.2%) (11.6%) 9
Results Stre Netwrk 30 Jun 2015 31 Dec 2015 30 Jun 2014 31 Dec Chinese Mainland 242 261 298 311 Hng Kng & Macau 36 36 37 38 Taiwan 39 41 41 41 Others 16 11 10 9 Ttal 333 349 386 399 Clsure f nn-perfrming stres t drive netwrk efficiency Fur Hardy Amies UK stres added 10
Results Inventry 30 Jun 31 Dec 2015 30 Jun 2015 Inventry Turnver Days (days) 357 416 344 Inventry Amunt (HK$ millin) 523.8 591.9 510.1 Inventry turnver days and ttal dllar value are dwn since the end f last year, but up marginally since the last year Inventry level will be a cre fcus fr the Grup ging frward 11
Results Headcunt 30 Jun 2015 31 Dec 2015 30 Jun 2014 31 Dec Ttal 2,665 2,738 2,951 3,330 Significant headcunt reductin (665 persnnel) ver past 18 mnths Clsure f casual wear prductin line (134 persnnel) at Hng Kng factry Reductin in senir management psitins 12
Results Gearing Rati 30 Jun 31 Dec 2015 30 Jun 2015 Net Debt (HK$ millin) 678.5 491.0 327.8 Gearing Rati 18.5% 13.3% 9.1% Gearing rati increased due t first half lss, but remains mderate Definitin f gearing g rati: net debt divided by ttal capital (ttal equity plus net debt) 13
Pririties
Pririties Re-engineering g Imprve rganisatinal efficiency Reduce the cst base Optimise supply chain 15
Pririties Imprve Organisatinal Efficiency Challenge: Ensure clear management respnsibilities Actin: Streamline senir management team Clear brand leadership, centered arund the DNA f ur brands in Eurpe Experienced leadership managing the supply chain 16
Pririties Imprve Organisatinal Efficiency Brands Supply Chain Asia Retail Laurent Ray Clacher Grsggeat Danny Lau Michelle Ng Agnes Shen Chinese Mainland, Singapre Hng Kng, Macau, Taiwan 17
Pririties Reduce Cst Base Challenge: High cst base Actin: Onging restructuring recent reductin in senir management and cnsultant headcunt Tight cst cntrl Cntinued review f stres with negative cntributin 18
Pririties Optimise Supply ppy Chain Challenge: Fcus n timely delivery Actin: Chief Operating Officer has been refcused t versee all supply chain activities Supply Chain Taskfrce created t identify imprvement areas and truble sht issues Rapid Respnse Team t shrten the prduct develpment and delivery cycle Inventry clearance via discunting, utlet activity and nline channels 19
Driving Revenue Thrugh Brands
Driving revenue Kent & Curwen x David Beckham SS17 Cllectin 21
Driving revenue Jasn Basmajian and Tng Dawei at 2017 Fashin Week, Paris 22
Driving revenue Hu Bing at flagship stre, N 1 Savile Rw 23
Brand Activities Outlk Lng term utlk fr ur cre Chinese cnsumers is psitive Extensive stre netwrk acrss Greater China New management team with strng industry experience Explre pprtunities including licensing and e-cmmerce fcus Well psitined when the market recvers 24
Thank yu