1、7 Days Group Holdings Limited(NYSE: SVN)Third Quarter 2010 ResultsNovember 9, 20101Safe Harbor StatementStatements in this presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 19
2、34, as amended, and as defined in the Private Securities Litigation Reform Act of 1995, including, among others, those relating to 7 Days Groups beliefs as to the overall industry outlook and the factors driving expected growth, its expected results and guidance for fourth quarter of 2010; the conti
3、nued growth and expansion of its business, the expansion of its customers base, the increase of its customer loyalty, the benefits of continuing focus on its strategies, the effectiveness of its cost-control initiatives, the hotel industry outlook, the stabilization of global economic climate, the g
4、rowth of the Chinese economy and the hotel industry, and the continuation of government stimulus. These forward-looking statements are not historical facts but instead represent only the Companys belief regarding future events, many of which, by their nature, are inherently uncertain and outside of
5、the Companys control. The Companys actual results and financial condition and other circumstances may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. In particular, the Companys operating results for any period are impa
6、cted significantly by the mix of lease-and-operated hotels and managed hotels in its chain, causing the Companys operating results to fluctuate and making them difficult to predict. In addition, the financial information for third quarter of 2010 is unaudited, preliminary and subject to adjustments.
7、 Adjustments to the third quarter of 2010 financial statements may be identified when audit work is performed for the year end audit, which could result in significant differences from this preliminary unaudited financial information.Other factors that could cause forward-looking statements to diffe
8、r materially from actual future events or results include risks and uncertainties related to: risks associated with the Companys limited operating history and historical operating losses; uncertainties regarding the Companys ability to continue its growth and achieve profitability; uncertainties reg
9、arding the Companys ability to fund its working capital needs; uncertainties regarding the Companys ability to expand its operations while maintaining consistent and high-quality accommodations and services; uncertainties regarding the Companys ability to respond to competitive pressures; and uncert
10、ainties associated with factors typically affecting the lodging industry, including changes in economic conditions, adverse weather conditions, natural disasters or outbreaks of serious contagious diseases in markets where the Company has a presence. The financial information contained in this prese
11、ntation should be read in conjunction with the consolidated financial statements and notes thereto included in the Companys Registration Statement on Form F-1 filed with the Securities and Exchange Commission dated November 19, 2009. For a discussion of other important factors that could adversely a
12、ffect the Companys business, financial condition, results of operations and prospects, see “Risk Factors” beginning on page 16 of the Companys prospectus included in such Registration Statement. The Companys actual results of operations for the third quarter of 2010 are not necessarily indicative of
13、 its operating results for any future periods. Any projections in this release are based on limited information currently available to the Company, which is subject to change. Although such projections and the factors influencing them will likely change, the Company will not necessarily update the i
14、nformation. Such information speaks only as of the date hereof.2OverviewTickerSVNExchangeNYSEIPO DateNovember 20, 2009Share price$19.70 (as of November 8, 2010)Market capitalization$979 million (as of November 8, 2010)Websitehttp:/ OverviewResults OverviewOperational & Financial HighlightsOperationa
15、l & Financial HighlightsOutlookOutlookQ&AQ&A4AgendaResults OverviewResults OverviewOperational & Financial HighlightsOperational & Financial HighlightsOutlookOutlookQ&AQ&A5Gross Revenue from L&O Hotels (RMB mm)Net Revenue (RMB mm)14Revenue Growth Exceeds Guidance 54.9252.8721.41,141.3239.0302.2282.1
16、352.2309.7405.5200620072008200909Q110Q109Q210Q209Q310Q358.4267.2763.71,202.0325.9397.3200620072008200909Q310Q3Total net revenue grew 30.9% Y-o-Y to RMB405.5 millionManaged hotels revenue grew over 1200% Y-o-Y to RMB31.2 millionEBITDA increased 63.6% Y-o-Y to RMB111.1 millionGross Revenue from Manage
17、d Hotels (RMB mm)0.00.11.48.12.431.2200620072008200909Q310Q36Continued Growth in Hotel Portfolio 2010Q3 Operation Highlights: Added 62 net hotels as of September 30, 201024 net leased-and-operated hotels38 net managed hotels461 hotels in operation as of September 30, 2010281 leased-and-operated hote
18、ls180 managed hotels201 hotels under conversion as of September 30, 201051 leased-and-operated hotels under conversion150 managed hotels contracted but not yet openedNumber of Hotels in OperationNumber of Hotels in Pipeline28123610320620072008200910Q3Leased-and-operatedManaged33746110622348516699150
19、352010 Q12010 Q22010 Q3Leased-and-operatedManagedNumber of New Hotels Opened18243353862010 Q12010 Q22010 Q3Leased-and-operatedManaged953*62*Highest in industry7Largest Membership Base and Powerful eCommerce Platform7 Days Clubs MembershipOver 14 million members as of September 30, 2010Room nights fr
20、om members in 10Q3: 97.3%Room night from repeat customers in 10Q3: 82%The leading contributor to 7Days rapid expansion and strong operating performance since inception, key driver of future growthAffords 7Days with scalability for further expansion into more second and third-tier cities within China
21、 by: Supporting high occupancy rates Providing cost savings opportunities382321,6086,0489,75214,0532005200620072008200910Q3Number of 7 Days Club Members (000s)8AgendaResults OverviewResults OverviewOperational & Financial HighlightsOperational & Financial HighlightsOutlookOutlookQ&AQ&A9Robust Operat
22、ing PerformanceOccupancy Rate10Q3 occupancy rate:10Q3 Leased-and-operated: 93.7% 10Q3 Managed: 89.3%Some impact on 10Q3 occupancy rate as 115 hotels have been in operation for less than 6 monthsIndustry leading overnight occupancy rate of 90.3% for leased-and-operated hotels Overnight spending custo
23、mers are more loyal and possess more attractive spending profiles 7 Days is strategically targeting this segment 83.9%89.3%92.9%90.0%89.6%95.5%93.7%Q1Q2Q3Q420092010Leased-and-operated Hotels Occupancy Rate* Overnight occupancy rate78.2%84.7%88.1%80.0%88.8%89.3%77.7%Q1Q2Q3Q420092010Managed Hotels Occ
24、upancy Rate* Overnight occupancy rate20091577120103182420094101753201063538Number of new L&O hotels opened Q1-Q4: Number of new Managed hotels opened Q1-Q4: *81.1%*85.9%*86.0%*91.8%90.3%*81.1%85.3%86.1%*74.9%74.7%*88.2%83.8%10Robust Operating PerformanceRevenue Per Available Room10Q3 RevPAR :10Q3 Le
25、ased-and-operated: RMB157.310Q3 Managed: RMB146.2129.7148.7142.5157.6157.3143.2147.8Q1Q2Q3Q420092010Leased-and-operated Hotels RevPAR (RMB)119.4129.4140.5125.3115.7137.9146.2Q1Q2Q3Q420092010Managed Hotels RevPAR (RMB)Note: 53 new managed hotels opened in 4Q2009 Growth Drivers:powerful loyalty progra
26、mincreased brand name recognitionimproved macro environment Shanghai Expo 11SG&A expenses as % of RevenuesHotel operating expenses as % of Revenues14Increasing Scalability Driving Cost Savings 107.5%108.1%101.2%85.1%80.6%74.7%200620072008200909Q310Q3Hotel operating costs as a percentage of revenue d
27、ropped to 74.7% from 80.6% in 09Q3Improved performance attributable to 7Days growing revenue base, improved operational performance and successful efforts to maximize efficiency across businessNote: Sequential rise in G&A expense since 10Q1 due to increased costs associated with being a public compa
28、ny7.6%5.4%5.1%22.1%22.2%5.8%6.9%2.7%2.7%2.3%13.0%5.7%200620072008200909Q310Q3S&M as % ofrevenuesG&A as % ofrevenues121220.1%-24.1%-18.4%-3.1%23.9%27.8%-30%-20%-10%0%10%20%30%200620072008200909Q310Q3-250-150-5050150250Adjusted EBITDAAdjusted EBITDA Margin-13.2-46.5-22.3229.774.0112.9Improving EBITDA
29、and Operational EfficiencyNon-GAAP Net Income (RMB mm)Adjusted EBITDA (RMB mm)EBITDA (RMB mm)Profit from Operation (RMB mm)Note: Adjusted EBITDA and Non-GAAP Net Income excludes share-based compensation expense10.1%27.4%21.9%-5.4%-25.4%-27.3%-30%-20%-10%0%10%20%30%200620072008200909Q310Q3-150-100-50
30、050100150EBITDAEBITDA Margin-15.0-64.3-39.0115.567.9111.16.5%-37.2%-35.7%-19.3%11.0%16.1%-40%-20%0%20%40%200620072008200909Q310Q3-200-1000100200Profit from OperationsOperating Profit Margin-20.4-90.3-139.373.934.065.4-36.0%-41.5%-26.9%0.9%3.1%15.2%-50%-40%-30%-20%-10%0%10%20%200620072008200909Q310Q3
31、-200-1000100Non-GAAP Net IncomeNon-GAAP Net Margin-19.7-104.9-193.810.39.661.713Income Statement (Unaudited) 2010Q3Quarter ended Sep 30Jun 30Sep 302009 2010 2010 RMB000RMB000RMB000US$000Total Revenues 328,289 373,323 428,515 64,048Leased-and-operated hotels 325,890 360,330 397,29159,381Managed hotel
32、s 2,399 12,993 31,2244,667Less: Business tax and surcharges (18,624)(21,137)(23,030)(3,442)Net revenues 309,665 352,186 405,485 60,606Operating costs and expenses Hotel operating costs (249,536)(275,837)(302,800)(45,258)Sales and marketing expenses (8,217)(7,954)(9,286)(1,388)General and administrat
33、ive expenses (17,863)(24,644)(28,024)(4,189)Total operating costs and expenses (275,616)(308,435)(340,110)(50,835)Income from operations 34,04943,751 65,3759,771Other income (expense) Interest income 88343 1,013 151 Interest expense (22,607)(546)(24)(4)Change in fair value of ordinary share purchase
34、 warrants (2,939)-Equity income (loss) of an affiliate (15)78 (2)-Income before income tax 8,57643,626 66,3629,918Income tax expense (4,542)(12,871)(6,123)(914)Net income 4,03430,755 60,2399,004Net income attributable to noncontrolling interests (589)(593)(408)(61)Net income attributable to 7 Days G
35、roup Holdings Limited shareholders 3,44530,162 59,8318,943Basic earnings per ordinary share 0.060.20 0.400.06Diluted earnings per ordinary share 0.030.20 0.400.0614Selected Balance Sheet Items (Unaudited) 2010Q3Mar 31, 2010Jun 30, 2010Sep 30, 2010RMB 000RMB 000RMB 000US$000ASSETS Current assets: Cas
36、h 558,710507,483 451,042 67,415 Pledged bank deposits 3,8173,397 1,846 276 Accounts receivable 4,3994,926 5,984 894 Prepaid rent 78,579107,803 123,53618,464Other prepaid expenses and current assets 49,10350,880 66,1819,893Deferred tax assets 8,71311,150 17,137 2,561 Total current assets 703,321685,6
37、39 665,72699,503Property and equipment, net 1,012,7281,111,9001,237,231 184,924 Rental deposits 41,26647,096 50,0887,486Investment in and advances to an affiliate 1,8111,810 1,688 252 Prepayments in respect of hotel acquisition -7,7691,161Other non-current assets -15,7962,362Deferred tax assets 15,8
38、7615,700 14,432 2,157 Total assets 1,775,0021,862,1451,992,730 297,845LIABILITIES AND EQUITY Current liabilities Accounts payable 128,707177,080203,346 30,393Bills payable 12,28610,9022,822 422 Accrued expenses and other payables 158,476204,009257,37038,468Amounts due to related parties 5,2322,2501,
39、593 238 Income taxes payable 8,18313,90710,8861,627Total current liabilities 312,884408,148476,01771,148Long-term bank borrowings 50,000-Accrued lease payments 123,859140,646148,862 22,250Refundable deposits 22,14818,77418,3742,746Deferred revenue 4,8744,7034,531 677Borrowings from related parties 3
40、,7522,5271,789268Total liabilities 517,517574,798649,57397,089Equity: Ordinary shares 140,377140,401 140,525 21,004Additional paid-in capital 1,562,2231,564,3031,567,660234,311Accumulated other comprehensive income 30,55127,865 20,913 3,126Accumulated deficit (479,210)(449,048)(389,217)(58,175)Total
41、 7 Days Group Holdings Limited shareholders equity 1,253,9411,283,521 1,339,881200,266Noncontrolling interests 3,5443,826 3,276490Total equity 1,257,4851,287,347 1,343,157200,756Total liabilities and equity 1,775,0021,862,145 1,992,730 297,84515Reconciliation of GAAP and Non-GAAP ResultsQuarter Ende
42、d 30-Sep-0930-Jun-1030-Sep-1030-Sep-10RMB 000RMB 000RMB 000USD 000Hotel operating costs GAAP Result(249,536)(275,837)(302,800)(45,258)% of Total net Revenue80.58%78.32%74.68%74.68%Share-based Compensation570477 38357% of Total net Revenue0.18%0.14%0.09%0.09%Non-GAAP Result(248,966)(275,360)(302,417)
43、(45,201)% of Total net Revenue80.40%78.19%74.58%74.58%Sales and marketing expensesGAAP Result(8,217)(7,954)(9,286)(1,388)% of Total net Revenue2.65%2.26%2.29%2.29%Share-based Compensation20071 162% of Total net Revenue0.06%0.02%0.00%0.00%Non-GAAP Result(8,017)(7,883)(9,270)(1,386)% of Total net Reve
44、nue2.59%2.24%2.29%2.29%General and administrative expensesGAAP Result(17,863)(24,644)(28,024)(4,189)% of Total net Revenue5.77%7.00%6.91%6.91%Share-based Compensation2,4271,387 1,426213% of Total net Revenue0.78%0.39%0.35%0.35%Non-GAAP Result(15,436)(23,257)(26,598)(3,976)% of Total net Revenue4.98%
45、6.60%6.56%6.56%Total operating costs and expensesGAAP Result(275,616)(308,435)(340,110)(50,835)% of Total net Revenue89.00%87.58%83.88%83.88%Share-based Compensation3,1971,935 1,825 273% of Total net Revenue1.03%0.55%0.45%0.45%Non-GAAP Result(272,419)(306,500)(338,285)(50,562)% of Total net Revenue8
46、7.97%87.03%83.43%83.43%Income from operationsGAAP Result34,04943,75165,3759,771% of Total net Revenue11.00%12.42%16.12%16.12%Share-based Compensation3,1971,935 1,825273% of Total net Revenue1.03%0.55%0.45%0.45%Non-GAAP Result37,24645,68667,20010,044% of Total net Revenue12.03%12.97%16.57%16.57%16AgendaResults OverviewResults OverviewOperational & Financial HighlightsOperational & Financial HighlightsOutlookOutlookQ&AQ&A17Financial Outlook for 2010Q4Total net revenues expected in the range of RMB430 million to RMB440 millionFourth Quarter Fiscal Year 2010 Forecast18Q & A
