Samsonite Group S.a. · HKEX:1910
Samsonite — Samsonite International — Q3 2023 Earnings Presentation
40 slides from Samsonite's earnings presentation, Nov 13, 2023
Slide 1: Samsonite International S.A.
Samsonite International S.A. Stock Code: 1910
Slide 2: Disclosure Statement
o) DISCLOSURE STATEMENT This presentation and the accompanying slides (the “Presentation”), which have been prepared by Samsonite International S.A. (“Samsonite” or the “Company”), do not constitute any offer or invitation to purchase or subscribe for any securities, and shall not form the basis for
Slide 3: Agenda
S AGENDA O1 O2 OS O4 O5 Executive Summary Business Update Financial Highlights Outlook Q&A
Slide 4: Executive Summary
EXECUTIVE SUMMARY
Slide 5: An outstanding Q3 for Samsonite International
* An outstanding Q3 for Samsonite International * Our first half momentum continued through Q3 2023, driving significantly improved financial performance: * We achieved record Q3 results in net sales, gross margin, Adjusted EBITDA, and Adjusted Net Income. * Strong net sales growth across our portfo
Slide 6: Business Update
BUSINESS UPDATE
Slide 7: Net Sales
Net Sales US$958 million 21.2% vs. QB ‘22 22. A%W0122) vs. QB 19 Gross Margin US$571 million 59.6% margin +460 bps vs. Q3 ’22 +390 bps vs. Q3 19 (1) Stated on a constant currency basis. (2) Adjusted EBITDA US$194 million 20.3% margin +330 bps vs. Q3 ’22 A&P Spend US$59 million 6.2% of Net Sales +50
Slide 8: Strong underlying industry trends and continued execution drove an outstanding Q3
6 Strong underlying industry trends and continued execution of our initiatives drove an outstanding Q3 [ vs. 2022 | sisc.e_| us$m O53 us$m $1,000 $600 $800 vee $500 $600 DD $400 _ $300 $400 $200 $200 _ $100 so + r so 7 Q3 2022 Q3 2023 Q3 2022 32023 Pssoo | 43.7% | $385 sisa S18 $120 $150 $134 $100 Z
Slide 9: More efficient cost structure enabled increased advertising investment
6 Our more efficient cost structure has enabled us to increase investments in advertising and drive our growth initiatives * Our fixed SG&A expenses as a percentage of net sales improved 200 basis points YTD Sep 2023 vs. YTD Sep 2022, and 510 basis points vs. YTD Sep 2019 due to disciplined expense
Slide 10: +630 bps improvement, even with advertising up
$2,486.6 (adjusted for 19.3% Speck, Russia, & 3rd party ebags) +US$247 mil $2,051.3 +630 bps (adjusted for growth in YTD Sep ‘23 Russia) improvement, even +US$199 mil +US$683 mil growth in with advertising up growth in +90 bps or US$25 mil YTD Sep ‘23 YTD Sep ‘23 16.0% LTM Adj. EBITDA 13.0% US$670.9
Slide 11: Net sales growth across portfolio; accelerated growth in Tumi and Samsonite
6 Net sales growth across portfolio; accelerated growth in higher-margin Tumi and Samsonite brands AMERICAN Sams@nite TOURISTER $1,600 $700 $600 $1,378.5 $1,400 - a $600 $500 $1,200 ~ $1,034. xf $500 $400 $1,000 > _ E sco g $800 = $200 = $300 = $600 a & $200 $400 $200 $200 $100 $100 so so so YTD Sep
Slide 12: Tumi sales by region
North America – Tumi sales Asia – Tumi sales Consolidated – Tumi sales +US$186.0 mil 44.0%(1)(2) Europe – Tumi sales Latin America – Tumi sales
Slide 13: Samsonite sales by region
North America – Samsonite sales Asia – Samsonite sales Consolidated – Samsonite sales +US$343.7 mil 37.1%(1)(2) Europe – Samsonite sales Latin America – Samsonite sales
Slide 14: Store counts by region
• North America – 91 North America – 91 Asia – 267 Asia – 285 Europe – 154 Europe – 158 Latin America - 165 Latin America - 167 • • North America – 177 North America – 179 Asia – 94 Asia – 100 Europe – 33 Europe – 35 Latin America - 4 Latin America - 6 •
Slide 15: New Tumi stores in Kuala Lumpur and Shenzhen
New Tumi store in Kuala Lumpur, Malaysia Opened September 1, 2023 New Tumi store in Shenzhen, China Opened August 17, 2023
Slide 16: New Samsonite store in Nice and Tumi store in Brussels
New Samsonite store in Nice, France Opened June 10, 2023 New Tumi store in Brussels, Belgium Opened March 2, 2023
Slide 17: New Samsonite store in Harbour City, Hong Kong
New Samsonite store in Harbour City in Hong Kong Opened July 5, 2023
Slide 18: Relocated Madison Avenue store in NYC
Relocated our 610 Madison Avenue store in NYC to 575 Madison Avenue, a significantly higher traffic area with better visibility.
Slide 19: Strong digital advertising supporting core brands
6 Continued to support our core brands with strong digital advertising, driving our YTD Sept 2023 DTC-Ecommerce growth of +44.2% (2) AMERICAN TOURISTER 11:08 5c AMERICANTOURISTER_EU < Posts (© americamouriterou 9av 217 likes americantourister_eu Rainbow colours calling! (# Sin fsa about Pride and be
Slide 20: Brand ambassadors and collaborations
Tennis star Casper Ruud as global Samsonite brand ambassador Top: Samsonite X Boss collaboration on exclusive aluminum capsule collection. Bottom left to right: Tumi X McLaren collaboration, Cricket star Virat Kohli as American Tourister brand ambassador
Slide 21: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 22: Q3 2023 Results Highlights
°Q3 2023 Results Highlights ussm ussm ussm $1,200 $600 $140 (126 ) $1,000 $ese $s00 $120 $791 $100 $800 , $400 $80 $600 $300 ses $60 $400 $200 $40 8.2% $200 $100 $20 ie g so | 2 go $0 Z a3 2022 2 2023 a2 2022 a2 2023 2 2022 a2 2023 a2 2022 a2 2023 + Net sales increased by US$167 million, or 21.2%),
Slide 23: Net sales, margin and advertising trends
Net sales trend Gross margin trend Adjusted EBITDA margin trend Advertising spend as % of net sales trend
Slide 24: Financial Highlights
* Financial Highlights + Fixed SG&A expenses for Q3 2023 were 22.4% of net sales, which is a 490bp improvement from Q3 2019 as we have maintained a more efficient operating structure achieved through the comprehensive cost reduction program in 2020 - 2021 even as net sales have significantly increas
Slide 25: Constant Currency Growth
Constant Currency Growth 69.9% 19.6% 20.9%(1) 23.3%
Slide 26: Asia results
* Driving significant Adjusted EBITDA margin expansion in Asia * Asia’s YTD Sep 2023 net sales were up +69.9%" Adjusted EBITDA from the prior year, and +20.1%) vs. YTD Sep 2019 driven by strong growth across our portfolio of $1,200 brands in the region. $1,066.9 $900 WY margins and our continued foc
Slide 27: Other and divested businesses
• ebags (3rd party) Speck • • Indicates % of net sales
Slide 28: Europe/Russia results
• Russia • • • Indicates % of net sales
Slide 29: Latin America results
6 Strong sales growth across all our countries drove Latin America’s YTD sales growth . of (1) YTD Sep 2023 net sales were up +23.3%' compared to Net Sales Adjusted EBITDA prior year, and +68.0%” vs. YTD Sep 2019 driven by strong growth across all our brands within the region. $160 ; $22 $20.5 Mexic
Slide 30: Net sales by channel
Comparison of net sales by channel YTD Sep 2022 YTD Sep 2023 US$2,061.1 million - DTC E-Commerce growth of +44.2%(1)(2) US$2,733.9 million - Retail growth of +42.5%(1)(2) - Wholesale and Other(3) growth of +32.5%(1)(2) Wholesale and Other(3) Retail DTC E-Commerce
Slide 31: Travel vs. non-travel net sales
Comparison of travel vs. non-travel net sales YTD Sep 2022 YTD Sep 2023 US$2,061.1 million US$2,733.9 million - Travel growth of +38.0%(1)(2) - Non-Travel growth of +32.8%(1)(2) Travel Non-Travel
Slide 32: SG&A within Adjusted EBITDA
¢ Continued to leverage our fixed SG&A as we delivered strong net sales growth SG&A within Adjusted EBITDA $1,200 $1,149.1 10861 Fixed SG&A expenses as a percentage of net sales . in YTD Sep 2023 improved by 200bp from YTD Sep $1,000 2022 as we generated strong net sales growth with a very efficient
Slide 33: Balance sheet and net debt
• US$m September 30, September 30, $ Chg Sep-23 % Chg Sep-23 2022 2023 vs. Sep-22 vs. Sep-22 Cash and cash equivalents 801.0 603.4 (197.6) -24.7% Trade and other receivables, net 285.1 343.7 58.5 20.5% Inventories, net 556.7 734.8 178.2 32.0% • Other current assets 75.2 92.0 16.8 22.3% Non-current a
Slide 34: Quarterly Adjusted EBITDA vs. Free Cash Flow
Quarterly Adjusted EBITDA vs. Free Cash Flow(1) (1)
Slide 35: Working capital items
US$m September 30, December 31, September 30, $ Chg Sep-23 % Chg Sep-23 • 2022 2022 2023 vs. Sep-22 vs. Sep-22 Working Capital Items Inventories $ 556.7 $ 687.6 $ 734.8 $ 178.2 32.0% Trade and Other Receivables $ 285.1 $ 290.9 $ 343.7 $ 58.5 20.5% Accounts Payable $ 507.6 $ 583.3 $ 523.2 $ 15.7 3.1%
Slide 36: Capital expenditures
US$m YTD Sep 2022 YTD Sep 2023 • Retail 8.8 25.4 Product Development / R&D / Supply 15.2 9.6 • Information Services and Facilities 2.7 6.3 • Software 5.5 7.3 Other 1.1 0.6 Total Capital Expenditures 33.3 49.1 •
Slide 37: Outlook
OUTLOOK
Slide 38: Outlook
° Outlook + As we close out this year, and look ahead to 2024, outbound travel from China, which is in the early stages of recovery, is expected to continue to steadily improve in the coming quarters, while travel growth in markets that reopened earlier, including North America and Europe, has begun
Slide 39: Q&A
Q&A
Slide 40: Thank You
THANK YOU.
Samsonite International — Q3 2023 Earnings Presentation on 6ix