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
4 INNOCEAN Investor Relations 2016
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%)
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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
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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)
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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
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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
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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
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▶ 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.)
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1 2
3 4
4. 2016 Outlook and Business Strategy
Digital Command
Center VR Exp. Ad
RTB Ad Expansion
12 INNOCEAN Investor Relations 2016
5. FY2015 Dividend
Dividend Policy
INNOCEAN Dividend Payout Ratio
10%
15%
26% 30%
2013 2014 2015 Mid - Long-term Goal2015
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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)
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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
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