Kering Sa · EURONEXT:KER
Kering Sa — PPR — H1 2012 Earnings Presentation
34 slides from Kering Sa's earnings presentation, Jul 26, 2012
Slide 1: 2012 First Half Results
2012 FIRST HALF RESULTS July 26, 2012
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer of securities for sale in the United States of America or any other jurisdiction. Certain information contained in this document may include notably projections and forecasts. They express objectives based on current assessments and estimates
Slide 3: A solid first half
H1 2012 results A solid first half Jean-François Palus Group Managing Director H1 2012 results 3
Slide 4: A solid first half
A solid first half Group sales up 16.7% reported, up 8.2% comparable Sharp growth in recurring operating income, up 20% Recurring net income, Group share, from continuing operations, up 25% H1 2012 results 4
Slide 5: H1 12: Outstanding luxury performance fuelling growth
H1 12: Outstanding luxury performance fuelling growth Recurring Recurring H1 12, in €m % change operating % change operating Revenue Reported Comp. income margin Luxury 2,925 +30.7% +17.6% 727 +30.4% 24.9% Sport & Lifestyle 1,694 +17.1% +4.0% 151 -9.2% 8.9% Corporate & Others (5) (56) -3.3% - Sub To
Slide 6: Analysis of H1 results
H1 2012 results Analysis of H1 12 results Jean-Marc Duplaix Chief Financial Officer H1 2012 results 6
Slide 7: Luxury Division: H1 revenue +17.6% comparable, EBIT up 30%
Luxury H1 12 revenue: +17.6% comparable Division EBIT up 30% In €m H1 2012 Change Quarterly sales Revenue 2,925 +30.7% + 17.8% + 17.4% Recurring operating income 727 +30.4% Recurring operating income margin 24.9% EBITDA 823 +28.5% EBITDA margin 28.2% Gross capex 113 +152.5% X%: comparable change S
Slide 8: Gucci: H1 revenue +10.8% comparable, record EBIT margin
H1 12 revenue: +10.8% comparable Record EBIT margin In €m H1 2012 Change Quarterly sales Revenue 1,728 +17.7% + 11.6% + 10.0% Recurring operating income 521 +18.7% Recurring operating income margin 30.2% EBITDA 586 +17.2% EBITDA margin 33.9% Gross capex 70 +172.8% X%: comparable change Upscale str
Slide 9: Bottega Veneta: H1 revenue +35.1% comparable
H1 12 revenue: +35.1% comparable Another outstanding performance In €m H1 2012 Change Quarterly sales Revenue 430 +44.3% + 33.0% + 37.4% Recurring operating income 130 +58.4% Recurring operating income margin 30.2% EBITDA 140 +56.9% EBITDA margin 32.5% Gross capex 11 +58.6% X%: comparable change A
Slide 10: Yves Saint Laurent: H1 revenue +41.1% comparable
H1 12 revenue: +41.1% comparable Sustained growth In €m H1 2012 Change Quarterly sales Revenue 224 +46.4% + 40.1% + 42.1% Recurring operating income 25 3.7x Recurring operating income margin 11.1% EBITDA 31 2.8x EBITDA margin 13.7% Gross capex 5 +134.8% X%: comparable change Strong double-digit sa
Slide 11: Other Luxury brands: H1 revenue +20.7% comparable
Other Luxury H1 12 revenue: +20.7% comparable brands Higher EBIT at all brands In €m H1 2012 Change Quarterly sales Revenue 544 +70.9% + 20.0% + 21.3% Recurring operating income 52 +70.0% Recurring operating income margin 9.5% EBITDA 67 +63.0% EBITDA margin 12.3% Gross capex 26 +170.8% X%: comparabl
Slide 12: Sport & Lifestyle Division: below expectations
Sport & H1 12 revenue: +4.0% comparable Lifestyle Below expectations Division In €m H1 2012 Change Quarterly sales Revenue 1,694 +17.1% + 2.8% + 5.3% Recurring operating income 151 -9.2% Recurring operating income margin 8.9% EBITDA 185 -4.7% EBITDA margin 10.9% Gross capex 39 +32.3% X%: comparable
Slide 13: Fnac: solid operating performances
H1 12 revenue: -1.0% comparable Solid operating performances In €m H1 2012 Change Quarterly sales Revenue 1,773 -1.1% -0.8% -1.2% Recurring operating income (7) Recurring operating income margin (0,4%) EBITDA 24 -37.6% EBITDA margin 1.3% Gross capex 54 +43.3% X%: comparable change Market share gai
Slide 14: Operating performance
Operating performance In €m CONTINUING OPERATIONS H1 2012 H1 2011 % Change Revenue 6,387 5,472 +16.7% Gross profit 3,379 2,837 +19.1% Gross profit margin 52.9% 51.8% +110bps Recurring operating income 815 677 +20.4% Recurring operating income margin 12.8% 12.4% +40bps EBITDA 979 822 +19.1% EBITDA ma
Slide 15: Financial performance
Financial performance In €m H1 2012 H1 2011 Change Recurring operating income 815 677 +20.4% Other non-recurring operating income and expenses (57) (23) Financial charges (105) (96) Corporate income tax (174) (148) Income from equity affiliates 35 33 Net income from discontinued operations (10) 39 C
Slide 16: Free cash flow from operations
Free cash flow from operations In €m H1 2012 H1 2011 Cash flow before taxes, dividends and interest 959 804 Change in working capital requirement (before taxes) (516) (353) Corporate income tax paid (175) (178) Net cash flow from operating activities 268 273 Net operating investments (204) (110) Fre
Slide 17: Net financial indebtedness
Net financial indebtedness In €m Net indebtedness at December 31, 2011 3,396 Free cash flow from operations (64) Net interest paid and dividend received 100 Dividends paid 465 Purchases of PPR shares 13 Purchases of Puma shares 101 Other disposals & acquisitions 455 Other 18 Net indebtedness at June
Slide 18: Conclusion & Outlook
Conclusion & Outlook Jean-François Palus, Group Managing Director A solid first half All Luxury brands posting spectacular performances Puma profitability short of expectations Fnac outperforming in tough segments Robust financial performance Sustained H2 sales growth and further improve
Slide 19: Q&A
H1 2012 results Q&A H1 2012 results 19
Slide 20: Appendix
H1 2012 results Appendix H1 2012 results 20
Slide 21: Revenue H1 2012
Revenue H1 2012 Change In €m H1 2012 H1 2011 €m % Gucci 1,727.8 1,468.5 259.3 + 17.7% Bottega Veneta 429.5 297.7 131.8 + 44.3% Yves Saint Laurent 223.5 152.7 70.8 + 46.4% Other brands 543.7 318.1 225.6 + 70.9% Luxury 2,924.5 2,237.0 687.5 + 30.7% Puma 1,573.8 1,446.9 126.9 + 8.8% Volcom 120.2 120.2
Slide 22: Luxury Division Q2 2012 revenue
Luxury Q2 2012 revenue: 1,467 M€ Division +17.4% comparable; +32.4% reported X%: Comparable growth +49% 1,467 M€ +17% +11% +22% +12% 1,108 M€ % of Q2 12 sales 30% 19% 11% 34% 6% Number of directly operated stores H1 2012 results 22
Slide 23: Gucci Q2 2012 revenue
Q2 2012 revenue: 880 M€ +10.0% comparable; +19.3% reported X%: Comparable growth +71% 880 M€ +7% +19% +8% 738 M€ +2% % of Q2 12 sales 25% 19% 11% 39% 6% Number of directly operated stores H1 2012 results 23
Slide 24: Bottega Veneta Q2 2012 revenue
Q2 2012 revenue: 212 M€ +37.4% comparable; +50.2% reported X%: Comparable growth +52% +24% 212 M€ +43% +10% +37% 141 M€ % of Q2 12 sales 25% 14% 17% 41% 3% Number of directly operated stores H1 2012 results 24
Slide 25: Yves Saint Laurent Q2 2012 revenue
Q2 2012 revenue: 115 M€ +42.1% comparable; +49.5% reported X%: Comparable growth +78% +10% 115 M€ +36% +44% +38% 77 M€ % of Q2 12 sales 41% 25% 7% 20% 7% Number of directly operated stores H1 2012 results 25
Slide 26: Other Luxury brands Q2 2012 revenue
Other Luxury Q2 2012 revenue: 261 M€ brands +21.3% comparable; +70.7% reported X%: Comparable growth +38% 261 M€ +31% +18% +16% +18% 153 M€ % of Q2 12 sales 44% 19% 11% 14% 12% Number of directly operated stores H1 2012 results 26
Slide 27: Sport & Lifestyle Division Q2 2012 revenue
Sport & Q2 2012 revenue: 807 M€ Lifestyle +5.3% comparable; +19.9% reported Division X%: Comparable growth +10% 807 M€ +14% +12% +2% 674 M€ (5%) Q2 2011 Western Europe North America Japan Asia Pacific Other Countries Q2 2012 % of Q2 12 sales 27% 26% 11% 13% 23% Of which Volcom: 54 M€, +12.6% compa
Slide 28: Puma Q2 2012 revenue
Q2 2012 revenue: 753 M€ +4.8% comparable; +11.8% reported X%: Comparable growth +9% 753 M€ +15% +11% +3% 674 M€ (6%) % of Q2 12 sales 29% 22% 12% 13% 24% H1 2012 results 28
Slide 29: Fnac Q2 2012 revenue
Q2 2012 revenue: 857 M€ -1.2% comparable; -1.6% reported Breakdown of Q2 2012 revenue Breakdown of Q2 2012 revenue by country by product category Services 7% Switzerland Books & +3.3% Home Belgium 3% Stationery electronics 5% -10.6% 20% 55% Brazil -2.2% 6% -2.1% +1.1% France +6.6% 69% Portugal -1.2%
Slide 30: Recurring operating income H1 2012
Recurring operating income H1 2012 Change In €m H1 2012 H1 2011 €m % Gucci 521.0 438.9 82.1 + 18.7% Bottega Veneta 129.9 82.0 47.9 + 58.4% Yves Saint Laurent 24.7 6.6 18.1 3.7x Other brands 51.5 30.3 21.2 +70.0% Luxury 727.1 557.8 169.3 + 30.4% Puma 148.8 166.7 (17.9) - 10.7% Volcom 2.6 - 2.6 - Spor
Slide 31: EBITDA H1 2012
EBITDA H1 2012 Change In €m H1 2012 H1 2011 €m % Gucci 586.0 499.8 86.2 + 17.2% Bottega Veneta 139.6 89.0 50.6 + 56.9% Yves Saint Laurent 30.7 11.0 19.7 2.8x Other brands 67.0 41.1 25.9 +63.0% Luxury 823.3 640.9 182.4 + 28.5% Puma 179.3 193.5 (14.2) - 7.3% Volcom 5.2 - 5.2 - Sport & Lifestyle 184.5
Slide 32: Financial charges, Income tax H1 2012
Financial charges Income tax H1 2012 In €m H1 2012 H1 2011 Cost of net indebtedness (109) (111) Other financial charges (net) 4 15 Financial charges (net) (105) (96) In €m H1 2012 H1 2011 Current tax (expense) / Income (174) (148) Tax on non-current items 2 1 Total tax (176) (149) Effective tax rate
Slide 33: Condensed consolidated balance sheet H1 2012
Condensed consolidated balance sheet H1 2012 In €m H1 2012 H1 2011 Goodwill, brands & other intangible assets - Net 14,918 14,678 Other net non-current assets 216 545 Net current assets 833 388 Provisions (396) (493) CAPITAL EMPLOYED 15,570 15,117 Net asset held for sale 675 SHAREHOLDERS’ EQUITY 11,
Slide 34: Liquidity
Liquidity In €m NFD 4,484 M€ * Gross debt minus cash & cash equivalents and financing of customer loans ** Gross debt H1 2012 results 34