Lock & Lock. 1Q12 Earnings Release_Eng

8/2/2019 Lock & Lock. 1Q12 Earnings Release_Eng

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LOCK & LOCK

1Q12 Earnings Release

May 8, 2012


2/16

.

2. Sales Breakdown by Region

3. Sales Breakdown by Channel

4. Sales Breakdown by Product Category

5. Summary Financials

This document has been prepared by Lock & Lock, Co., Ltd. This document contains forward-looking

statements, which are subject to risks, uncertainties, and assumptions. This document is being presented solely

for your information and is subject to change without notice. No representation or warranty, expressed or

implied, is made and no reliance should be placed on the accuracy, actuality, fairness, or completeness of the

information presented.

ContentsContents


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1. 1Q12 Preliminary Earnings

In 1Q12, sales rose 14% YoY to W124.1bn and operating profit surged 48% YoY to W21.3bn.

Korea domestic sales came in at W37.3bn (+10% YoY), while China registered W64.6bn (+24% YoY or +17%

YoY based on RMB) in revenue.

2011 2011 2012

1Q 4Q 1Q

Sales 108,451 119,657 124,127

% 1 0 0 % 1 0 0 % 1 0 0 %

[ U n i t : W m m ] QoQ YoY

4 % 1 4 %

Based on K-IFRS3

COGS 55,053 58,949 63,100

% 5 1 % 4 9 % 5 1 %

Gross Profit 53,398 60,708 61,027

% 4 9 % 5 1 % 4 9 %

Operating Profit 14,428 18,517 21,310

% 1 3 % 1 5 % 1 7 %

Pretax income 15,920 18,778 22,434

% 1 5 % 1 6 % 1 8 %

Net Profit 11,987 13,935 17,758

% 1 1 % 1 2 % 1 4 %

1 9 % 4 1 %

2 7 % 4 8 %

7 % 1 5 %

1 % 1 4 %

1 5 % 4 8 %


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1. 1Q12 Preliminary Earnings Sales & OP Highlights

Total sales grew 14% YoY to W124.1bn

- Korea domestic sales increased by 10% YoY to W37.3bn. Despite weak seasonality, Bisfree, outdoor and inplus

(household goods containers made of plastic) enjoyed brisk sales.

- China showed 24% YoY growth in sales to W64.6bn (17% YoY growth in RMB). Internet saw rising sales thanks to

the upbeat sales of glass food containers (Internet-only models), while TV shopping remained strong across the nation.

Hot&Cool(thermos) sales swelled on seasonality and growing penetration into hypermarkets. Glass food containersales rose across all distribution channels as the Company had eased the supply shortage.

Operating profit jumped 48% YoY to W21.3bn

- Trans ortation ex ense rew 43% YoY due to risin TV sho in and Internet sales in China.

Based on K-IFRS

Based on K-IFRS

4

2 0 1 1 2 0 1 2

1 Q 1 Q

P a y r o l l 1 0 , 5 4 0 1 1 , 4 2 8

8 %

A d v e r t i s i n g 1 , 2 4 4 1 , 0 2 2

- 1 8 %

T r a n s p o r t a t i o n 2 , 9 2 9 4 , 1 8 1

4 3 %

R e n t 3 , 2 9 1 4 , 0 5 8

2 3 %

S a l e s C o m m i s s i o n 7 , 7 0 3 6 , 1 3 0

- 2 0 %

O t h e r s 1 0 , 3 2 8 1 2 , 6 2 0

2 2 %

O p e r a t i n g E x p e n s e s 3 6 , 0 3 4 3 9 , 4 3 9

9 %

[ U n i t : W m m ]

Y o Y

2 0 1 1 2 0 1 2

1 Q 1 Q

N o n - O p e r a t i n g p r o f i t 2 , 3 0 2 2 , 3 3 7 2 %

G a i n o n F o r e i g n c u r r e n c y t r a n s l a t i o n s 4 9 8 9 9 8 1 0 0 %

G a i n F o r e i g n c u r r e n c y t r a n s a c t i o n s 1 , 5 7 6 1 , 0 5 2

- 3 3 %

O t h e r s 2 2 8 2 8 7

2 6 %

N o n - O p e r a t i n g l o s s 5 , 2 3 8 2 , 6 1 4

- 5 0 %

L o s s o n F o r e i g n c u r r e n c y t r a n s l a t i o n s 2 , 4 6 1 3 9 5

- 8 4 %

L o s s F o r e i g n c u r r e n c y t r a n s a c t i o n s 2 , 1 6 4 1 , 0 7 2

- 5 0 %

O t h e r s 6 1 3 1 , 1 4 7

8 7 %

N o n - O p e r a t i n g p r o f i t & l o s s - 2 , 9 3 6 - 2 7 7

- 9 1 %

[ U n i t : W m m ]

Y o Y


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2. Sales Breakdown by Region

R e g i o n

2 0 0 8 2 0 0 9 2 0 1 0 1 Q 1 1 2 0 1 1 1 Q 1 2

C h i n a 4 0 % 4 2 % 3 8 % 4 8 % 4 5 % 5 2 %

K o r e a 2 9 % 3 0 % 3 9 % 3 2 % 3 6 % 3 0 %

A s i a 6 % 6 % 9 % 1 0 % 1 1 % 1 1 %

A m e r i c a 1 4 % 1 4 % 9 % 6 % 6 % 6 %

E U 9 % 6 % 5 % 4 % 3 % 1 %

J a p a n 1 % 1 % 1 % 0 % 0 % 0 %

M i d a s i a & A f r i c a 1 % 1 % 1 % 0 % 0 % 0 %

9%6% 6%

6%100%

5

40% 42% 38%48% 45%

52%

29%30% 39%

32% 36%30%

6%6%

9%

10% 11%

14%

14%

0%

20%

40%

60%

80%

2008 2009 2010 1Q 11 2011 1Q 12

China Korea Asia America EU Japan Mid asia & Afric a


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3. Sales Breakdown by Channel Korea

2008 2009 2010 1Q 11 2011 1Q 12

TV shopping 11% 18% 44% 40% 37% 28%

Hyper markets 31% 30% 21% 24% 22% 23%

Special(B2B) 15% 14% 10% 10% 13% 16%

Wholesale 31% 26% 15% 15% 15% 14%

Internet 8% 7% 4% 4% 5% 6%

Owend stores 2% 2% 3% 3% 4% 5%

Franchisee stores 0% 0% 0% 1% 2% 3%

Agriculture Coop 3% 3% 3% 3% 3% 3%

Department Stores 8% 7% 2% 0% 0% 2%

6

11%18%

44% 40% 37%28%

31%30%

21% 24%22%

23%

15%14%

10% 10%13%

16%

31% 26%15% 15%

15%14%

8% 7% 4% 4% 5%6%

0%

20%

40%

60%

80%

100%

2008 2009 2010 1Q 11 2011 1Q 12

TV shopping Hyper markets Special(B2B) Wholesale Internet

Owend stores Franchisee stores Agriculture Coop Department Stores


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3. Sales Breakdown by Channel China

D i v i s i o n 2 0 0 8 2 0 0 9 2 0 1 0 1 Q 1 1 2 0 1 1 1 Q 1 2

T V s h o p p i n g 9 % 9 % 1 5 % 1 7 % 2 0 % 2 3 %

S p e c i a l ( B 2 B ) 4 6 % 4 1 % 3 0 % 3 3 % 2 6 % 2 2 %

H y p e r m a r k e t s 1 2 % 1 7 % 1 8 % 1 4 % 1 6 % 1 6 %

I n t e r n e t 7 % 7 % 1 3 % 8 % 1 2 % 1 5 %

W h o l e s a l e 1 9 % 1 9 % 1 6 % 1 7 % 1 6 % 1 4 %

O w e n d s t o r e s 7 % 7 % 9 % 1 1 % 1 0 % 9 %

100%

7

9% 9%15% 17%

20% 23%

46% 41% 30%33% 26% 22%

12% 17%18%

14%16% 16%

7% 7% 13% 8% 12% 15%

19% 19% 16%17% 16%

14%

7% 7% 9% 11% 10% 9%

0%

20%

40%

60%

80%

2008 2009 2010 1Q 11 2011 1Q 12

TV shopping Special(B2B) Hyper markets Internet Wholesale Owend stores


8/16

3. Sales Breakdown by Channel Southeast Asia

D i v i s i o n 2 0 1 0 1 Q 1 1 2 Q 1 1 3 Q 1 1 4 Q 1 1 2 0 1 1 1 Q 1 2

S p e c i a l ( B 2 B ) 3 0 % 2 7 % 4 1 % 4 0 % 4 7 % 4 0 % 3 3 %

O w e n d s t o r e s 1 7 % 2 5 % 2 2 % 1 4 % 1 4 % 1 8 % 1 8 %

H y p e r m a r k e t s 2 5 % 2 2 % 1 7 % 1 8 % 1 8 % 1 8 % 1 8 %

W h o l e s a l e 2 0 % 1 5 % 1 5 % 1 4 % 7 % 1 2 % 1 7 %

D e p a r t m e n t s t o r e s 4 % 2 % 3 % 9 % 9 % 6 % 1 0 %

T V s h o p p i n g 2 % 6 % 1 % 3 % 4 % 3 % 4 %

E l e c t r o n i c s s t o r e s 1 % 3 % 3 % 2 % 1 % 2 % 0 %

I n t e r n e t 0 % 0 % 0 % 0 % 0 % 0 % 0 %

8

30% 27%41% 40%

47%40%

33%

17% 25%

22%14%

14%18%

18%

25%22%

17%

18%18%

18%18%

20% 15%15%

14%7% 12%

17%

4%2%

3%9% 9% 6% 10%

2% 6% 1% 3% 4% 3% 4%

0%

20%

40%

60%

80%

100%

2010 1Q 11 2Q 11 3Q 11 4Q 11 2011 1Q 12

Special(B2B) Owend stores Hyper markets Wholesale Department stores TV shopping Electronics stores Internet


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4. Sales Breakdown by Product Category Korea

[Unit: Wmn]

Others

7,527

40,691

37,290

Food storage containers

Bisfree sales grew 9x YoY to W9.5bn on expanding distribution

channels across hypermarkets, corporates, owned stores, Internet

and wholesalers.

Food storage container and outdoor sales came in at W18.7bn (+25% YoY) and W8.6bn (+29% YoY), respectively,while the sales of kitchen/living/cookware fell 19% YoY to W10bn.

Excluding exports9

1Q11 1Q124Q11

Food

storage

14,978

Outdoor

6,644

Others

12,377

Food

storage

18,732

Outdoor

8,585

9,973

Food

storage

21,103

Outdoor

12,061

,

Sales increased across the board includingAqua (water bottles) and

Lunch Box(lunch boxes). Bisfree Aqua registered W2bn (+72% YoY).

Others (kitchen/living/cookware, etc.)

Living Box (household goods containers made of fabric) sales slid

40% YoY to W5.8bn due to seasonally slow TV shopping sales

(renewed in mid-March; sales likely to pick up in 2Q12).

inplus (household goods containers made of plastic) sales soared

160% YoY to W1.9bn.


10/16

LIVING BOX

15%

COOKWARE

3%INPLUS 5%

ETC 7%

4. Sales Breakdown by Product Category Korea

[2011] [1Q12]

LIVING BOX

22%

COOKWARE

2% INPLUS 3%

ETC 4%

PLASTIC

CONTAINER

38%

GLASS 5%

CERAMIC 4%

OUT DOOR

22%

10

Based on 1Q12 Korea domestic sales

PLASTIC

CONTAINER

31%

GLASS 5%

CERAMIC 7%

OUT DOOR

24%


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4. Sales Breakdown by Product Category China

Others

Others

14,729

Others

52,17551,400

64,570 Food storage containers

Glass container sales climbed 72% YoY to W16.3bn on brisk sales

across all distribution channels and easing supply constraints.

The Company has added one more glass OEM in China in January

and its in-house glass factory in Vietnam has started commercial

production in March, easing the supply shortage.

Food storage container and outdoor sales stood at W30.1bn (+23% YoY) and W19.7bn (+44% YoY), respectively, while

the sales of kitchen/living/cookware edged up YoY to W14.7bn.

[Unit: Wmn]

11

1Q11 1Q124Q11

Foodstorage

24,395

Outdoor

13,673

14,107

Food

storage30,102

Outdoor

19,739

Food

storage

24,848

Outdoor

13,843

12,709 Outdoor

Hot&Cool(thermos) sales soared 194% YoY to W8.1bn on seasonal

demand, new item launches and further penetration into

hypermarkets. Sales were strong across all distribution channels.

Aqua (water bottle) sales were up 11% YoY to W11.3bn backed by

rising shipments to corporate and wholesale customers.

Others (kitchen/living/cookware, etc.)

Living Box (household goods containers made of fabric) sales went

up 17% YoY to W8.6bn on upbeat TV shopping sales and growing

sales volume at hypermarkets and owned stores.

Cookplus (cookware) sales rose 23% YoY to W2.1bn on strong

demand from corporate customers.


12/16

4. Sales Breakdown by Product Category China

[2011] [1Q12]

PLASTIC CONTAINER

26%

LIVINGBOX 16%

COOKWARE 3%

ETC 4%

PLASTIC CONTAINER

19%

LIVINGBOX 14%

COOKWARE 3%

ETC 5%

12

GLASS 22%

CERAMIC 1%

OUT DOOR 30%GLASS 26%

CERAMIC 3%

OUT DOOR 31%


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4. Sales Breakdown by Product Category Southeast Asia

8,474

Others

Outdoor

Aqua (water bottle) sales surged 86% YoY to W2bn on risingshipments to corporate customers in Indonesia, Thailand and

Vietnam (Ho Chi Minh).

Thailand

Since 4Q11, sales have been quickly recovering to early-2011 levels.

Food storage container sales slipped YoY to W2.7bn, while outdoor sales jumped 52% YoY to W2.8bn. The sales of

kitchen/living/cookware dropped 32% YoY to W0.8bn.

[Unit: Wmn]

13

1Q11 1Q124Q11

Food

storage

2,770

Outdoor

1,867

Others

1,227

Food

storage

2,712

Outdoor

2,840

Others

829

Foodstorage

4,102

Outdoor

2,307

,

5,864

,

Robust TV shopping sales expected in 2H12

~ 2011: Room for effective distribution channel mix remained limited

due to differing retail market conditions (eg. regulations) among

Southeast Asian countries.

2012 ~: Newly-added TV shopping companies should improve the

efficiency of the Companys distribution channel setup.

Thailand: True GS Shopping, CJO ShoppingVietnam: CJO Shopping, Lotte Home Shopping, ViVi Home

Shopping (GS)


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4. Sales Breakdown by Product Category Southeast Asia

[2011] [1Q12]

OUT DOOR 31%

LIVING BOX 1%

COOKWARE 4%

ETC 16%

LIVING BOX 1%

COOKWARE 4%

ETC 17%

14

PLASTIC

CONTAINER 36%

GLASS 10%CERAMIC 2%

CONTAINER 35%

GLASS 3%

CERAMIC 0%


15/16

[ U n i t : W m n ]

5. Summary Financials Balance Sheet

D e s c r i p t i o n s

1 Q 1 2 2 0 1 1

I n c r e a s e /

D e c r e a s e

C u r r e n t A s s e t s 4 7 6 , 9 4 6 4 3 8 , 6 4 1 3 8 , 3 0 5

Q u i c k A s s e t s 3 2 4 , 6 6 6 2 8 9 , 3 1 7 3 5 , 3 4 9

I n v e n t o r i e s 1 2 4 , 4 6 7 1 2 7 , 2 4 6 - 2 , 7 7 9

O t h e r C u r r e n t A s s e t s 2 7 , 8 1 4 2 2 , 0 7 8 5 , 7 3 6

N o n - C u r r e n t A s s e t s 2 8 9 , 8 9 3 2 8 2 , 7 8 4 7 , 1 0 9

I n v e s t m e n t s 8 , 9 9 4 7 , 8 3 3 1 , 1 6 1

P r o p e r t y & E q u i p m e n t 2 3 6 , 7 2 0 2 3 2 , 9 7 7 3 , 7 4 3

I n t a n g i b l e A s s e t s 1 1 , 9 8 8 1 0 , 8 7 0 1 , 1 1 7

D e f e r r e d T a x A s s e t s 7 , 1 3 8 6 , 7 6 2 3 7 6

O t h e r N o n - C u r r e n t A s s e t s 2 5 , 0 5 3 2 4 , 3 4 2 7 1 2

Based on K-IFRS

15

O t h e r N o n - C u r r e n t A s s e t s 2 5 , 0 5 3 2 4 , 3 4 2 7 1 2

T O T A L A S S E T S 7 6 6 , 8 3 9 7 2 1 , 4 2 5 4 5 , 4 1 4

C u r r e n t L i a b i l i t i e s 1 6 5 , 8 6 2 1 2 3 , 1 7 6 4 2 , 6 8 6

N o n - C u r r e n t L i a b i l i t i e s 3 6 , 6 8 6 3 5 , 5 3 5 1 , 1 5 1

T O T A L L I A B I L I T I E S 2 0 2 , 5 4 8 1 5 8 , 7 1 1 4 3 , 8 3 7

C a p i t a l S t o c k 2 7 , 5 0 0 2 7 , 5 0 0 0

A d d i t i o n a l P a i d - i n a n d O t h e r C a p i t a l 3 1 4 , 8 0 9 3 1 4 , 6 8 3 1 2 6

C a p i t a l A d j u s t m e n t - 1 9 , 1 1 7 - 1 4 , 0 8 7 - 5 , 0 3 0

A c c u m u l a t e d O t h e r C o m p r e h e n s i v e I n c o m e 6 , 8 3 4 9 , 3 5 8 - 2 , 5 2 4

E a r n e d S u r p l u s 2 3 4 , 0 5 6 2 2 5 , 0 5 8 8 , 9 9 8

E x t e r n a l S h a r e h o l d e r ' s E q u i t y 2 0 8 2 0 1 7

T O T A L E Q U I T Y 5 6 4 , 2 9 1 5 6 2 , 7 1 4 1 , 5 7 8

T O T A L L I A B I L I T I E S & E Q U I T Y 7 6 6 , 8 3 9 7 2 1 , 4 2 5 4 5 , 4 1 4


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[ U n i t : W m n ]

5. Summary Financials Income Statement

D e s c r i p t i o n s 1 Q 1 2 2 0 1 1

I n c r e a s e /

D e c r e a s e

S a l e s 1 2 4 , 1 2 7 1 0 8 , 4 5 1 1 5 , 6 7 6

C o s t o f G o o d s S o l d 6 3 , 1 0 0 5 5 , 0 5 2 8 , 0 4 8

G r o s s P r o f i t 6 1 , 0 2 7 5 3 , 3 9 9 7 , 6 2 8

S e l l i n g a n d A d m i n i s t r a t i v e E x p e n s e s 3 9 , 4 3 9 3 6 , 0 3 4 3 , 4 0 5

Based on K-IFRS

16

O t h e r O p e r a t i n g P r o f i t a n d L o s s - 2 7 7 2 , 9 3 6 - 2 , 6 5 9

O p e r a t i n g I n c o m e 2 1 , 3 1 0 1 4 , 4 2 9 6 , 8 8 1

F i n a n c i a l P r o f i t a n d L o s s a n d t h e r e s t 1 , 1 2 4 1 , 4 9 2 - 3 6 8

I n c o m e a n d L o s s B e f o r e I n c o m e T a x e s 2 2 , 4 3 4 1 5 , 9 2 1 6 , 5 1 3

I n c o m e T a x E x p e n s e s 4 , 6 7 6 3 , 9 3 3 7 4 3

N e t I n c o m e 1 7 , 7 5 8 1 1 , 9 8 8 5 , 7 7 0

Lock & Lock. 1Q12 Earnings Release_Eng

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