Innocean Worldwide FY 2015 Earnings Releaseinnocean.com/upload/2016020211352832.pdf · 2016-02-02 · China : Increased due to introduction of “KX3”(SUV model) despite Chinese

Innocean Worldwide

FY 2015 Earnings Release

2 INNOCEAN Investor Relations 2016

The Financial statements on this presentation is prepared in accordance with Korean International Financial Reporting

Standards(“K-IFRS”). And for the purpose of comparison, the accompanying consolidated financial statements as of 4Q 2016

are prepared and presented by reflecting the K-IFRS transition adjustments.

This document is prepared with unaudited financials for investors’ information. Therefore, some numbers may be revised

upon the review of independent auditors of INNOCEAN Worldwide.

This document contains “forward-looking statements” - that is, statements related to future, not past events.

In this context, forward-looking statements often address our expected future business and financial performance, and

often contain words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, or “will”. Forward-looking

statements by their nature address matters that are, to different degrees, uncertain.

For us, particular uncertainties which could adversely or positively affect our future results include: the behavior of

financial markets, including fluctuations in exchange rates, interest rates and commodity prices; strategic actions including

dispositions and acquisitions. These uncertainties may cause our actual results to be materially different from those

expressed in this document.

Disclaimer

Table of Contents

1. 4Q 2015/ FY 2015 Earnings Overview

2. 4Q 2015/ FY 2015 Earnings

3. FY2015 Non – Captive Clients

4. 2016 Outlook and Business Strategy

5. FY2015 Dividend

Appendix. Summary Financial


Full-year 2015 Performance Overview

251,678 312,667 24.2%

744,734 987,924 32.7%

87,697 96,962 10.6%

257,745 317,664 23.2%

32,485 35,563 9.5%

83,492 92,928 11.3%

44,970 38,905 -13.5%

34,413 38,905 13.1%

109,220 107,454 -1.6%

98,663 107,454 8.9%

38,755 28,870 -25.5%

28,200 28,870 2.4%

83,835 78,037 -6.9%

73,300 78,037 6.5%

*Excluding KRW10.5bn which resulted from one-off profit for reevaluation of IWA stake prior to additional share acquisition (40% 60%)


2. 4Q 2015 / FY 2015 – Consolidated Earnings Summary

46,014 47,012

41,682 49,950

2014 4Q 2015 4Q

HQ Overseas

+ 10.6%

(KRW Million)

4Q 2015 FY 2015

135,848 132,530

121,897 185,134

2014 2015

HQ Overseas

+ 23.2%

(KRW Million)

■ 4Q 2015 - HQ: Continuous volume model line effect from 3Q(Avante, Sportage), Genesis EQ900, and initiating Goyang Motor Studio project (+2.2%YoY)

- Overseas Subsidiaries : New car launch effect and expand service coverage in Europe (+19.8 % YoY)

■ FY2015 - HQ: Achieved last year’s gross profit level thanks to new car launch effect in 2H, despite of MERS in 1H and World Cup base effect (△2.4% YoY) - Overseas Subsidiaries : Increased due to IWA consolidation and New car launch effect, despite depreciation of Russian currency and rising competition in Chinese car market (+51.9% YoY)

Gross Profit

87,697

257,744

317,664

96,962


2. FY 2015 Earnings– by Region

37,232 38,804

17,266 28,595

102,550

42,673

17,524 23,194

America Europe China Other region

2014 2015

+175.4%

+10.0%

+ 1.5% △ 18.9%

■ America : Increased due to consolidation of U.S. entity and new car launch effect(“Tucson”, etc.)

■ Europe : Increased thanks to new volume model launch in 2H (“Tucson”, “CEED”, etc.), despite weak Euro currency.

■ China : Increased due to introduction of “KX3”(SUV model) despite Chinese economic turmoil and

fierce competition in auto market

■ Other Regions : Decreased due to depreciation of currency in emerging markets, despite positive launch effect of

“Creta” in India

America USA / Canada / Brazil / Mexico (4)

Europe UK / Germany / Italy / Spain / France (5)

China Beijing/ Shanghai (2), Innocean CBAC in Beijing (equity method)

Other Regions Russia /Turkey / India / Australia / Dubai (5)

※ Entity by Region

Gross Profit

(KRW Million)


73,300 78,037

10,535

2014 2015

2. Consolidated 2015 Earnings – Operating Profit and Net Income

■ SG&A

- HQ: Talent acquisition in digital production and Creative department - Overseas Subsidiary : Consolidation of U.S. and recruitment of talents in Europe, Middle East, and Mexico

■ OP : Increased by 11% YoY to KRW 92.9bil.

■ NP : Excluding One off gain from IWA stake revaluation in 2014.4Q, 2015 NP increased by 6.5% YoY to KRW 78bil (consolidated 2015 NP decreased by 6.9 YoY)

83,492 92,928

2014 2015

+ 11.3%

(KRW million)

+ 6.5%

117,307

162,769

56,946

61,967

2014 2015Labor Cost

174,253

224,736 + 29.0%

※ Labor cost includes salary, bonus, severance pay, and welfare

SG&A OP NP

(KRW million) (KRW million)

※ ‘15 Profit attributable to Parent Company : KRW 70bil

One off gain from IWA stake revaluation in 2014 4Q


HQ vs. Overseas

Captive vs. Non-Captive

Billing

Employees 612

861

30%

70%

65 94

35%

% %

Captive

Non-Captive

6%

40%

31%

13%

10% 7%

HQ Americas Europe China EM

Regional Breakdown by GP 2015 Overview

2. FY2015 Earnings - Business Snapshot

*

*China JV (equity method) included


Diversified – FY 2015 Non-Captive increased to 18.6% (Based on GP)

F&B/Pharmaceutical

Steel/Construction

Financials

Airlines/Education/Services

Telecom/Internet/Sports

Fashion/Cosmetic/Life Style

Auto/Auto Parts

New Client

Existing Client Volume Expansion

■ HQ : +5.8%pt YoY ( FY2014 29.5%FY 2015 35.3% )

■ Overseas : +0.8%pt YoY (FY2014 5.4% FY 2015 6.2%)

Emerging Markets Americas Regional HQ Europe Regional China

3. 2015 Non-Captive Clients


▶ Global Ad markets : Forecast to be US$610bn (YoY +4.8%)

· US will still be the largest ad-market (YoY +4.3%),

2nd largest ad-market (China, YoY +7.7%) will show the constant growth

· Latin America & Asia Pacific expected to be a main growth area,

but the volatility in exchange rate and oil price will be a key variables

· Despite Grexit issue, Euro zone will represent the similar growth rate (YoY +3.8%)

▶ Rapid growth of digital media & shrinking share of TV

· Digital share in US & Asia Pacific region is keep rising,

Digital media has surpassed the TV share in Europe, and forecast the gap will be widened

4. Outlook and Business strategy

■ Ad market forecast

※ Source : Zenith Optimedia Adspending Expenditure forecast 2015

Global USA W.Europe Asia Pacific

Global Ad Market (unit : U$ mil.)


1 2

3 4

4. 2016 Outlook and Business Strategy

Digital Command

Center VR Exp. Ad

RTB Ad Expansion


5. FY2015 Dividend

Dividend Policy

INNOCEAN Dividend Payout Ratio

10%

15%

26% 30%

2013 2014 2015 Mid - Long-term Goal2015


Appendix. Summary Financials

1,174 1,429

1,081 1,320

217 197

199 390

625 701

40 32

93 110

22 22

71 88

747 806

725 789

653 700

72 89

21 17

13 14

8 3

427 623

Balance Sheet (Consolidated K-IFRS)


Appendix. Summary Financials

745 988 252 313

487 670 164 216

258 318 88 97

as % of revenue 34.6% 32.2% 34.9% 31.0%

174 225 55 62

83 93 32 35

as % of revenue 11.2% 9.4% 12.7% 11.2%

26 15 12 3

109 107 45 39

25 29 6 10

84 78 39 29

as % of revenue 11.3% 7.9% 15.5% 9.3%

82 70 37 27

Income Statement (Consolidated K-IFRS)

Thank you

Documents

Innocean Worldwide FY 2015 Earnings Releaseinnocean.com/upload/2016020211352832.pdf · 2016-02-02 · China : Increased due to introduction of “KX3”(SUV model) despite Chinese