IR Material 1Q17Y Earnings release
Contents Ⅰ. Domestic earnings ---------------- 3 Ⅱ. Overseas earnings ---------------- 5 Ⅲ. Appendix ---------------- 6 2
Ⅰ. Domestic earnings TV products increased as a result of change in products portfolio that meet the consumption trend and successful launching of T-commerce ; Start selling the car lease and selling more rental products, increasing the program related to cosmetics & food ; T-Com sales reached 39bKRW(YoY +130%) due to expansion of the region coverage and increasing sales efficiency mall grew after good selling of affiliated products and good performance in low season Table1. Details on earnings (bkrw) Graph1. Products Portfolio(Tangible product ) 1Q17Y 1Q16Y 4Q16Y YoY QoQ GMS 904 737 891 22.6% 1.4% TV Products 671 536 644 25.2% 4.2% Non-TV Products 233 202 247 15.6% -5.8% - TV (Phone order) 499 392 468 27.4% 6.8% - e-commerce 374 314 390 19.4% -3.9% 4% 8% 11% 18% 11% 25% 3% 9% 13% 16% 12% 24% 3% 10% 10% 14% 12% 19% Others Interior Fashion/Jewelry Hair/Cosmetics Electronic Home/Supplement (Mobile) 233 199 250 17.3% -6.7% - Catalogue 11 13 15-14.8% -28.1% 23% 23% 32% Apparel - Others 19 19 18 1.6% 5.4% 1Q17Y 1Q16Y 4Q16Y 3
Ⅰ. Domestic earnings Achieving healthy sales through improvement of product competitiveness ; Decreasing high margin advertising program but increasing exclusive selling products and core products in cosmetic & food categories Operating profit increased due to operation leverage effect Table2. Details on earnings (KRWb) Graph2. Operating profit margin 1Q17Y 1Q16Y 4Q16Y YoY QoQ Sales Revenue 275 264 303 4.1% -9.2% Gross Profit 242 235 266 3.0% -9.0% 4.9% 4.3% 5.5% 4.5% SG&A Cost 204 199 217 2.4% -6.1% Operating Profit 39 36 49 6.6% -21.6% Non-Operating Profit and Loss 3 3-79 -23.4% - Pre-tax Profit 41 40-30 4.0% - Net Profit 31 30-41 3.0% - 3.5% 1Q16Y 2Q16Y 3Q16Y 4Q16Y 1Q17Y 4
Ⅱ. Overseas earnings Despite fast growth in China and South-East Asia, total equity method gain decreased due to continuing investment into the new sites in Malaysia ; China YoY+22%, South-East Asia(Thai, Vietnam, Philippines) YoY+12% Weak sites(namfang, Mediasa) were decided to liquidate and Shop will be done restructuring until 1H, so that overseas will be improved in 2H Table3. Overseas subsidiaries earnings Subsidiaries Region Stake (bkrw) (%) 1Q17Y 1Q16Y 1Q17Y 1Q16Y Dong Fang China(Shanghai) 15.84 19 21 3 3 Tian Tian China(Tianjin) 44.0 0 0 0 0 Nam Fang China(Guangzhou) 23.0 0 (0) 0 (0) SHOP India 50.0 (7) (6) (3) (4) Prime Shopping Japan 99.78 (0) (0) S TV Vietnam 50.0 0 0 0 0 Mediasa Turkey 50.0 (0) (1) 0 (0) GMM Thailand 49.0 (0) (0) (0) (0) A Philippines 50.0 0 0 0 0 Televisa Grand Mexico 50.0 (2) (2) (1) (1) MP Malaysia 49.0 (1) - (1) 0 IMC(SUM)/CMI China, Thailand, Mexico, etc. 100.0 / 99.0 (2) (1) B China 49.0 Net Profit Oshishang China 44.4 (0) (0) Equity Method Gain Consolidation Consolidation Consolidation Consolidation SUM 7 10 (2) (1) 5
Ⅲ. Appendix1_Exclusive selling products Hit Brands in 1Q 1. 2. 3. 4. 5. 6. Vera Wang - The Vera Wang brand possesses simple, yet elegant qualities that bring out elaborate aesthetics to its products - Hit products: Vera classic one-piece, 17SS Espadrille wedge bootie A+G - The fashion brand that introduce modish items and style with Korean popular stylist - Hit products: 2017SS Modal Trapez Pull-over 5 set Yakson house - Lifting chin area and skin care at once - Hit products : Lifting program band Green apple diet - A dietary supplement that uses polyphenol and other natural ingredients - Hit products: 12-Week Green Apple Diet Program Kim Na Woon s the kitchen - Always be a trustworthy food brand with being selected best ingredients - Hit products : Trimmed cockle, Shorp rib soup CNP - Funtional cosmetics for healthy skin - Hit products : Dr.R2 Real Madecassoside, Green propolis 6
Ⅲ. Appendix2_ Stock Stock and shareholders Division Detail Shareholders Outstanding Shares(common) 6,215,518 corp. 40.0% Market cap(krwb) 1,013 NPS 13.0% Dividend(KRW) 2,500 Allianz 9.5% Dividend rate 1.5% Korea value asset 3.8% Dividend payout ratio 93.8% Treasury Stock 3.0% Credit Rating AA- Foreigner 24.5% Source: OS Earnings report(2016) Reference date: 1Q17Y 7
Ⅲ. Appendix3_Financial statement Cashable assets Reference date: 1Q17Y * Fair value or net asset value Number of Shares Price Value (KRW) (KRW) (KRWb) Treasury stock 186,320 209,400 30.0 Samsung Life Insurance 1,000,000 108,500 105.5 Skylife 120,000 16,500 1.9 HYUNDAI HCN 82,500 3,890 0.3 Others* - - 7.6 Total(KRWb) 145.3 8
Ⅲ. Appendix4_Ownership status(main subsidiaries) 40.0% 53.9% 100% 100% 15.8% 50% 50% 100% 49% 50% 50% 50% 49% Hello Vision Telenix CMI Holdings O (Dong Fang ) SHOP S TV Prime Shopping GMM Mediasa A Televisa Grand MP 44% 23% 100% 100% 100% 100% 99% Tian Tian SMC- (Nam Fang ) IMC Shanghai IMC Vietnam IMC Thailand IMC Turkey IMC Mexico Reference date: 1Q17Y 9