Professional Documents
Culture Documents
As a note, it is suggested to use this material only as a reference, as it contains information and data that are subject to changes without prior notice due to uncertainties, changes in the organizational structure, redefinition of accounting policies, etc., and may cause the actual results to differ from those stated or implied in this material.
AMOREPACIFIC Corp. is a newly created company after the corporate restructuring in June 2006, and as AMOREPACIFIC Corp. continues the core business of the pre-demerger company, the information in this material is based on such operations, assuming no demerger for ease of comparison with the past data.
[1]
Table of Contents
Company Overview
Vision History Sustaining Growth Enhancing Profitability Sale Breakdown Leading the Domestic Market Overseas Business
Business Overview
Appendices
[2]
Company Overview
Vision by 2015
Health
Inner Beauty 5 Mega-brands KRW 1 tn
[3]
Company Overview
Vision by 2015
The companies under PACIFIC group share the same vision of becoming the Asian Beauty Creator, a global player that creates new standards for Asian beauty, both inner and outer, and promotes Asian beauty to the global audience. To achieve this vision, AMOREPACIFIC is putting efforts into nurturing a strong portfolio of mega-brands in the area of beauty and health, simultaneously strengthening its presence in the overseas market.
AMOREPACIFIC, Etude, AMOS Professional, etc. 30% sales contribution from overseas
Expand Beauty & Health related businesses Develop strategic joint ventures
Overseas
Customers Health
KRW 1tn 20% of total sales Inner Beauty Lifetime Health 5 mega-brands AMOREPACIFIC, Pacific Pharmaceuticals, etc. Develop niche markets through customer segmentation Launch new products through intensified R&D and marketing activities
[4]
Company Overview
History
For more than 60 years, AMOREPACIFIC has been devoted to the business of Beauty and Health, consistently striving to be the best with focus on technology, quality and customers. AMOREPACIFIC has maintained its position as Koreas leader in the field of cosmetics and is now looking beyond into becoming the Asian Beauty Creator, a major global player that redefines and promotes the Asian beauty to customers all over the globe.
1945 Founded
1971 Initiated
1991 Refocus on
1992 Declared
2004 Announced
Global Vision 2015 company restructuring
[5]
2006 Holding
Business Overview
Sustaining Growth
Since 2000, AMOREPACIFIC has generated sustainable sales in both the domestic and overseas markets. In the upcoming years, the company is expected achieve 10% sales growth in the domestic market while expanding into the overseas market with more than 20% sales growth annually.
262
250
256 1,270 911
109 9 47 53
9
63
1,023
1,108
174 85 89 129
2005
2006
2007 MC&S
2008
2009 Growth Rate (%) 2005 Asia 2006 France 2007 USA 2008 2009 Growth Rate (%) [6]
Cosmetics
* MC&S (Mass Cosmetics and Sulloc): Personal Care and Green Tea Business
Business Overview
Enhancing Profitability
Gradual margin enhancement is expected for the domestic business through better product mix and distribution efficiencies, added with TCR efforts throughout all divisions. As for the overseas, profitability is still in the red due to the Companys expansion efforts, but is gradually enhancing as the Company expects to break even after 2010.
69.4%
69.0%
69.6%
-5
-9
-4 -4 -3
18.7%
18.1%
18.3%
16.7%
17.0%
-18
-4 -26 2005 2006 OP Margin 2007 2008 GP Margin 2009 Asia France US
[7]
Business Overview
Sales Breakdown
17% 6%
4%
17% 5%
5%
9% 14% 17%
9% 15% 17%
37%
38%
37%
35% 2008
32% 2009
Personal Care & Green Tea Others* Internet & Home shopping Discount store Specialty store Department store Door-to-door
2005
2006
2007
* Other sales include direct sales, export sales and other minor sales
[8]
Business Overview
AMOREPACIFIC has been outperforming the cosmetics market, strengthening its competency in the field of Beauty and Health. The Company is adding efforts to build stronger brands by appropriately responding to market changes and needs, and is also taking the initiatives to adopt a more balanced channel portfolio.
Premium* Total
32.7%
17.2%
35.2% 19.6%
34.3% 20.2%
34.3%
21.7%
Mass**
* Premium Channels include Department stores and Door to Door ** Mass Channels include Specialty stores and Discount stores
7.4 5.2
5.4
5.9
6.6
2005
2006
2007
2008
2009
[9]
Business Overview
Overseas Business
As the world is consolidating into a one-big-market, AMOREPACIFIC is accelerating its globalization efforts to construct a strong foothold in the world market. AMOREPACIFICs overseas operations are employing local professionals with vast experience and knowledge on each regions market and customers for successful launches and expansion.
Sales by Region
'09
MARKETING
France
First introduction in 1997, nurtured lolita Lempicka to become one of the top 5 fragrances in France Lolita Lempicka expanding globally introducing its second line in 2006 and third line in 2009
97
96
'09 '08
174
129
GROWTH
Asia
The main focus of AMOREPACIFICs overseas expansion
[10]
APPENDIX
Financial Summary
Income Statement
(KRW bn) 2008 % 2009 %
100.0
Balance Sheet
(KRW bn) Asset
Current Asset
2008.12 1,455.2 445.1 1,010.0 339.9 199.4 140.4 1,115.3 34.5 712.7 -1.4 30.9 338.6
2009. 12 1,664.0 550.3 1,113.8 364.3 217.2 147.1 1,299.7 34.5 712.7 -1.8 24.4 529.9
Sales
1,531.3
100.0 1,769.0
Gross Profit
SG&A Expense
1,066.3
811.1
71.3 54.3
Non-current Asset
Liability
Current Liability
Operating Profit
Non-operating Profit Non-operating Expense
255.2
35.2 46.1
300.6
33.3 34.6
17.0
Non-current Liability
Shareholders Equity
Capital Capital Reserve 16.9 Capital Adjustment Accumulated Other
244.3
16.0
299.3
Net Profit
170.2
11.1
225.9
12.8
[11]
www.amorepacific.co.kr Headquarters: Amorepacific Bldg., 181, Hangangro 2 Ga, Yongsan Gu, Seoul, Korea 140-777 TEL: 82-2-709-5103 / FAX: 82-2-709-5339 / Email: IR@amorepacific.com