Investor Relations 2015. 4Q
Transcript of Investor Relations 2015. 4Q
Investor Relations 2015. 4Q
1. Company Overview
2. Company History
3. Assets and Liabilities
4. Organization Chart
5. Stock Ownership
6. Product Portfolio
7. Brand Power
8. Intellectual Property
9. Overseas Plants
10. Overseas Sales
11. Logistics Networks
12. Growth Strategy
13. Business Model
14. Sales and Profit(Consolidated)
15. Geographical Sales Mix
16. Appendix
Certain information contained in these materials represents or is based on forward-looking statements or information. Forward-looking statements are inherently
uncertain and changing factors, general or specific, may cause events or results to differ from those discussed in the materials. Therefore, undue reliance should not
be placed on such statements or the conclusions drawn from them.
Contents
3
Company Overview
Name Lock&Lock Co. Ltd.
CEO Joon-il Kim, Sung-Tae Kim
Establish 1978. 10. 1.
IPO 2010. 1. 28. (KOSPI)
Share Outstanding 55,000,000 (Face value 500 KRW)
Capital 27,500,000,000 (KRW)
Number of Employees 4,563 (Including overseas employees)
Logistics Center in Korea Asan(Automated logistics center), Ansung
Overseas Plants China(Suzhou, Weihai2), Vietnam(DongNai, VungTau)
Overseas Branches
China(Shanghai, Shenzhen, Beijing, Shandong, Guangzhou)
Vietnam (HoChiMinh, Hanoi)
Indonesia, Thailand, Germany
Homepage www.locknlock.com
Lock & Lock Investor Relations 2015
[ Update on 2015. 12. ]
Lock & Lock Investor Relations 2015 4
Company History
1978. 10 Kukjin Distribution founded.
1998. 10 Lock & Lock food storage products introduced.
2004. 06 Factory completed in Asan, Korea.
2004. 10 Chinese factory completed in Weihai.
2006. 05 Beijing office opened.
2006. 09 Signed an MOU with Zen Hankuk Co in chinaware
development & sales.
2006. 11 2nd Chinese factory completed in Weihai.
2007. 10 3rd Chinese factory completed in Suzhou.
2008. 01 1st directly-managed domestic flagship Shop
opened in Seohyun, Korea.
2008. 04 1st directly-managed Vietnamese flagship Shop
in HoChiMinh City, Vietnam.
2009. 02 Sales entities established in Vietnam.
2009. 04 Factory completed in DongNai, Vietnam.
2009. 07 Sales entities established in Indonesia.
2009. 12 Sales entities established in Cambodia.
2010. 01 Listed on KOSPI.
2010. 03 Established a locally incorporated sales unit
in HoChiMinh, Vietnam.
2010. 11 Established a locally incorporated sales unit
in Frankfurt, Germany.
2011. 02 1st franchise opened in Korea.
2011. 11 1st franchise opened in China.
2012. 04 Lock & Lock Living constructed in Vietnam.
2012. 08 Cookware factory completed in VungTau, Vietnam.
2013. 04 Baby products launched in China.
2014. 09 Sung Tae Kim, take up co - CEO in Sept.
1,729 1,817 1,654
1,165
29.6% 29.5%
26.2%
18.2%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2012 2013 2014 2015
Liability Liability to Equity Ratio
Lock & Lock Investor Relations 2015 5
Assets and Liabilities (Consolidated)
(unit : 100mm, KRW) (unit : 100mm ,KRW, %)
7,579 7,970 7,957
7,565
2012 2013 2014 2015
Assets
Lock & Lock Investor Relations 2015 6
Organization Chart
Inspection Division
product development
domestic operations Ⅰ
Overseas sales
communication
administration
production
financial administration
sales
production
sales
production
Overseas offices Korea China Vietnam
[ Update on 2015. 12. ]
sales
domestic operations Ⅱ
administration
Lock & Lock Investor Relations 2015 7
Stockholder stocks
holdings
The largest stockholder (include affiliated person)
63.73%
Small stockholder 32.25%
Others 4.02%
Stock Ownership
[Update on 2015. 12]
The largest stockholder (include affiliated person)
63.7%
Others
(Corporation)
2.7%
Institutional
investors
9.4%
Individual stockholder
21.9%
Foreigner
2.3%
8
Food storage containers (L&L classic, L&L ovenglass, etc)
Outdoor (L&L aqua, L&L hot and cool, etc)
Household items (L&L living box, Inplus, etc)
Cookware (L&L Cookplus, Hard&Light etc)
Kitchen appliances (L&L taste, L&L cutlery, etc)
Character products (Kitty, Marvel, Disney, Hello bebe)
Lock & Lock Investor Relations 2015
Product Portfolio
Lock & Lock Investor Relations 2015 9
L&L have been ranked no.1 for 4 years in C-BPI - Airtight containers , thermos
K-BPI No. 1(for 12 years)
KWCI(Korea Well-Being Consumer Index) No. 1(for 7 years)
KPEI(Korea Purchase Ease Index) No.1
Brand Power
10 Lock & Lock Investor Relations 2015
Intellectual Property
Property Procedure Korea Overseas
Patents Application 1 1
Registered 4 22
Utility Models Application - 3
Registered 5 3
Designs Application 42 49
Registered 218 341
Trademarks Application 27 163
Registered 263 685
Service Mark
Application 3 0
Registered 22 6
[ Update on 2015. 12 ]
Lock & Lock Investor Relations 2015 11
Overseas Plants
▪ Facilities : Injection Molding Machine 53, ISBM 3
▪ Production capacity : 101,287,500 PCS /year
▪ Product line : Plastic ∙ Beverage Container, Trash can, etc.
▪ Facilities : Injection Molding Machine 92
▪ Production capacity : 124,246,000 PCS/year
▪ Product line : Plastic ∙ Beverage Container, etc.
[Manshan]
[Suzhou]
[DongNai]
China
▪ Facilities : Injection Molding Machine 69, ISBM 9, EBM 1
▪ Production capacity : 138,420,000 PCS/year
▪ Product line : Plastic ∙ Beverage Container, Inplus, etc.
▪ Facilities : Injection Molding Machine 53, ISBM 3
▪ Production capacity : 101,287,500 PCS/year
▪ Product line : Plastic ∙ Beverage Container, Character Product, etc.
Vietnam
[VungTau]
- Cookware
▪ Production capacity : 5,831,000 PCS/year
▪ Product line : Plastic ∙ Hard & light, Salong, etc.
[VungTau]
- Injection
Lock & Lock Investor Relations 2015 12
Overseas Sales
Europe
0.7%
China
47.3% America
9.0%
Domestic
25.8%
Asia
17.3%
China(Shanghai, Beijing, Shenzhen, Shandong,
Guangzhou)
Vietnam(HoChiMinh, Hanoi)
Indonesia(Jakarta)
Cambodia(Phnom Penh)
Thailand(Bangkok), HongKong
Germany(Frankfurt)
[Ge
ogra
ph
ical S
ale
s ]
[ Bra
nch
es ]
[ Updated on 2015.4Q. ]
Lock & Lock Investor Relations 2015 13
Distribution Networks
Lock&Lock
Brand shops Hyper
markets Wholesalers
Corporate customers
TV shopping
On-line Franchise
Lock & Lock Investor Relations 2015 14
Growth Strategy
• Accelerate our market into 2nd and 3rd tier cities in China.
- Expected to grow online sales due to expansion of
local online retail industries and online transaction
promoting policies.
- Expanding retail coverage in franchises and wholesalers.
• Grow revenue in Vietnam.
- Increase of total market volume by entering multinational
corporations.
Lock & Lock Investor Relations 2015 15
Growth Strategy
• Diversifying items for exclusively available at on-line stores.
• Developing effective mobile marketing strategies and creating mobile -friendly contents.
• Interactive communication with customers.
Plan integrated marketing communication by using SNS.
• Raise brand awareness with K-Stars.
Lock & Lock Investor Relations 2015 16
Business Model
[ Lock & Lock moved beyond its image as a container company by adopting a “T-shaped” growth
strategy to expand the scope.]
Diversifying material & application.
Expending products category into character products and kitchenware.
- Differentiation by our well-established brand image of “safe” and “fresh”.
- High correlation with current business.
- Sharing distribution channels and customers.
Expanding Product Category Kitchenware Household/Children
Diversifying material & application
Cutlery Cookplus
Living Box
Inplus
Out door
Character products
Kitchen goods
Classic
Special
Bisfree
Glass
Lock & Lock Investor Relations 2015 17
Sales and Profit(Consolidated)
(unit : 100mm, KRW)
Restructuring
to Improve the
profitability
* Operating profit and net profit : Right vertical axis.
3,862
4,761 5,084 5,017
4,216 4,071
796 779
721 709
273 353
660
506
598
450
150 125
-200
100
400
700
1,000
1,300
0
2,000
4,000
6,000
2010 2011 2012 2013 2014 2015
Sales Operating Profit Net Profit
2011 2012 2013 2014 2015년
China 44.6% 51.3% 54.6% 45.4% 46.7%
Korea 35.6% 30.8% 26.2% 32.6% 27.4%
Asia 11.1% 11.8% 11.6% 14.1% 17.8%
etc 8.7% 6.1% 7.7% 7.9% 8.2%
Lock & Lock Investor Relations 2015 18
Geographical Sales Mix
* K- IFRS Consolidated, Region Breakdown
(unit : %)
China, 46.7%
Korea, 27.4%
Asia, 17.8%
etc, 8.2%
Lock & Lock Investor Relations 2015 19
Quarterly Sales and Profit (Consolidated)
Balance sheet(Consolidated)
Appendix
20
[unit : mm, KRW, %]
Lock & Lock Investor Relations 2015
Quarterly Sales and Profit (Consolidated)
(unit : 100mm, KRW)
2014 2015
YoY QoQ 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Sales 110,922 102,842 101,670 106,178 89,122 104,454 103,618 109,892 3.5% 6.1%
COGS 60,615 54,559 60,425 60,805 46,554 56,372 56,362 58,162 -4.3% 3.2%
Gross Profit 50,308 48,283 41,245 45,373 42,567 48,082 47,256 51,730 14.0% 9.5%
Sg&A Expenses 42,260 38,141 39,088 38,400 36,542 38,413 40,787 38,565 0.4% -5.4%
Operating Profit 8,048 10,142 2,157 6,972 6,025 9,668 6,469 13,165 88.8% 103.5%
Pretax income 7,782 8,911 3,592 6,007 5,543 9,212 3,298 6,605 9.9% 100.3%
Net Profit 6,732 8,621 1,026 -1,403 3,424 3,877 1,411 3,836 373.4% 171.8%
1,109 1,028 1,017 1,062
891
1,045 1,036 1,099
80 101
22
70 60
97
65
132
67 86
10
-14
34 39
14 38
-50
0
50
100
150
0
300
600
900
1,200
1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15
Sales
OP
NP
[Sales] [OP, NP]
[unit : mm, KRW]
Lock & Lock Investor Relations 2015 21
Balance Sheet Summery(Consolidated)
2015 2014 Gap
Current assets 367,062 391,930 -24,868
Non-current assets 389,407 403,818 -14,411
Total assets 756,470 795,748 -39,278
Current liabilities 110,896 148,758 -37,862
Non-current liabilities 5,644 16,619 -10,975
Total liabilities 116,540 165,377 -48,837
Issued capital 27,500 27,500 -
capital surplus 314,809 314,809 -
capital adjustment -23,371 -23,371 -
Other Comprehensive income accumulated -8,482 -13,583 5,101
Retained earnings 329,394 324,959 4,435
Non-controlling Interest 80 57 23
Total equity 639,930 630,370 9,560
Total equity and liabilities 756,470 795,748 -39,278