Kering Sa · EURONEXT:KER
Kering Sa — PPR — Non-Deal Roadshow (March 2010)
32 slides from Kering Sa's roadshow presentation, Mar 24, 2010
Slide 1: Investor Presentation – An adventure of enterprise
An adventure of enterprise INVESTOR PRESENTATION New York & Boston March 24-26, 2010 /1
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: PPR Heritage
PPR HERITAGE 1999 42% stake in Gucci Group 2000 Acquisition of Surcouf, Boucheron and BEDAT & Co 2001 Acquisition of Bottega Veneta, Balenciaga, Stella McCartney and Alexander McQueen 2002 Disposal of Guilbert ‘mail order activity’, Finaref and Facet (credit subs) 2003 Disposal of Pinault Bois & Mat
Slide 4: PPR Today
PPR TODAY Satisfactory 2009 performances: €16.5 billion revenues €1.4 billion recurring operating income Active in 60 countries 73,000 employees /4
Slide 5: PPR Today
PPR TODAY Group of well-established companies refocusing to target the fastest-growing segments of the consumer markets Disciplined, yet dynamic, brand management Right mix of entrepreneurial autonomy & managerial support Significant reservoirs of growth, notably through global expansion Financial r
Slide 6: 2009 Revenues by Region
2009 REVENUES by REGION 43% 28% FRANCE EUROPE (excluding France) 16% AMERICAS 12% ASIA & OCEANIA 1% AFRICA /6
Slide 7: 2009 Results
2009 RESULTS Solid operating & financial performances Revenues of €16.5 billion EBITDA margin at 10.8% EBIT margin at 8.4% Sharp improvement in free cash flow from operations, up 32% at €1.1 billion /7
Slide 8: Strategic Direction
STRATEGIC DIRECTION Boost the Group’s growth & profitability profile: Realign the scope of the Group’s activities towards the fastest- growing and most profitable businesses … ... based on powerful global consumer goods brands (RTW, leather goods, lifestyle, shoes, accessories, ...) on either the ma
Slide 9: PPR Retailing
PPR RETAILING Leading positions in Europe But today PPR’s retail operations are at different stages of development Requiring different actions plans – restructuring & cost-cutting Heavy dependence on domestic markets, most notably France Retailing activities no longer part of PPR’s long-term strateg
Slide 10: PPR Branded Lifestyle & Luxury
PPR BRANDED LIFESTYLE & LUXURY PPR committed to growing core Lifestyle & Luxury activities Focus on apparel and accessories Brands with global appeal or potential Considerable growth profile & profitability Strong platform for worldwide growth - beyond Europe into China / Asia Pacific Speed up inter
Slide 11: Future Drivers of PPR Growth & Profitability
FUTURE DRIVERS OF PPR GROWTH & PROFITABILITY Gucci Group A portfolio of world-leading brands: designs, manufactures & markets leather goods, shoes, ready-to-wear, jewellery & watches 2009 revenue: €3.4billion A highly controlled distribution network: 609+ directly-operated stores Puma The ultimate S
Slide 12: Gucci Group
GUCCI GROUP A strategy based on three main objectives: Assign specific roles and positioning to each brand within the Group Strengthen international market positions Ensure competitiveness & optimal financial performance A Group characterized by: The exceptional quality of its products A unique tale
Slide 13: Gucci Group
GUCCI GROUP Loyalty to the brand core values – creativity, product, quality, made in Italy, people and stores Further enhance the unique luxury heritage and the undisputable fashion authority of the Florentine house How to face consumer patterns: Refocusing and rebalancing the offer Rightsizing the
Slide 14: Gucci Group
GUCCI GROUP Translate essence of YSL into most desirable products by building on: Repositioned luxury brands Premier French luxury fashion brand Depth of fashion icons Continue to improve cost management & reengineer store network Pursue successful brand “DNA” & clear market position by building on:
Slide 15: Gucci Group
GUCCI GROUP Enhance bespoke strategy for each brand & ensure correct brand positioning to truly target core consumers Showcase creativity, talent and innovation Enhancing capabilities in supply chain & consumer knowledge Build recurring profitability / 15
Slide 16: Puma
PUMA A strategy based on three main objectives: Broaden international market positions outside of European stronghold Strengthen positioning as the world’s most desirable Sportlifestyle company Bolster positions as a multi-category brand … to ensure continued revenue growth & higher profitability A
Slide 17: Conclusion
An adventure of enterprise Conclusion . / 17
Slide 18: PPR Tomorrow
PPR TOMORROW Continuing to grow the success and profitability of the business Top-line progress through organic growth & international expansion Margin improvements Optimize capex & working capital Strong cash flow generation and robust financial discipline Business refocused on higher-return Lifest
Slide 19: Appendices
An adventure of enterprise Appendices . / 19
Slide 20: FY'09: Operating Performance
FY’09: operating performance €m CONTINUING OPERATIONS 2009 2008 Change Revenues 16,525 17,207 -4.0% Gross profit 7,775 8,076 -3.7% Gross profit margin 47.1% 46.9% +0.2 bp Recurring operating income 1,383 1,441 -4.0% Recurring operating income margin 8.4% 8.4% 0.0 bp EBITDA 1,791 1,820 -1.6% EBITDA m
Slide 21: Revenues
Revenues (after inter-company eliminations) €m change 2009 2008 in €m as % Fnac 4,375.1 4,457.2 (82.1) -1.8% Redcats 3,382.2 3,694.5 (312.3) -8.5% Conforama 2,926.9 3,166.1 (239.2) -7.6% Puma 2,451.6 2,509.8 (58.2) -2.3% Gucci Group 3,388.8 3,379.4 9.4 +0.3% Gucci Division 2,266.4 2,206.4 60.0 +2.7%
Slide 22: Recurring Operating Income
Recurring operating income 731 €m 2008: €1,441m 692 2009: €1,383m 350 320 180 182 115 115 118 125 (53) (50) Redcats Conforama Fnac Puma Gucci Group Holdings Recurring operating income margin stable at 8.4% / 22
Slide 23: Luxury Goods Recurring Operating Income
Luxury Goods Recurring operating income €m 625 225 218 618 2008: €731M 2009: €692M 101 92 39 25 0 (10) (33) (32) Gucci Bottega Veneta Yves Saint Laurent Other brands Corporate costs Limited drop (-50bp) in operating margin (at comparable exchange rates) / 23
Slide 24: Recurring Operating Income
Recurring operating income €m Change 2009 2008 in €m As % Fnac 182.1 179.8 2.3 +1.3% Redcats 114.7 114.6 0.1 +0.1% Conforama 125.0 118.3 6.7 +5.7% Puma 319.5 349.7 (30.2) -8.6% Gucci Group 692.1 731.0 (38.9) -5.3% Gucci Division 617.7 624.8 (7.1) -1.1% Bottega Veneta 91.8 100.7 (8.9) -8.8% Yves Sain
Slide 25: EBITDA
EBITDA €m change 2009 2008 in €m as % Fnac 258.1 256.5 1.6 +0.6% Redcats 169.3 166.4 2.9 +1.7% Conforama 197.5 183.3 14.2 +7.7% Puma 380.4 406.3 (25.9) -6.4% Gucci Group 833.9 858.9 (25.0) -2.9% Gucci Division 710.0 704.6 5.4 +0.8% Bottega Veneta 103.3 111.9 (8.6) -7.7% Yves Saint Laurent 1.8 11,9 (
Slide 26: Financial Performance
Financial performance €m 2009 2008 change Recurring operating income 1,383 1,441 -4.0% Other non-recurring operating income and expenses (547) (368) Financial charges (381) (353) Corporate income tax (177) (269) Income from equity affiliates 1 (2) Net income from discontinued operations 765 590 Cons
Slide 27: Free Cash Flow from Operations
Free cash flow from operations €m 2009 2008 Cash flow before taxes, dividends and interest 1,702 1,762 Change in working capital requirement (before taxes) (40) (199) Corporate income tax paid (244) (253) Net cash flow from operating activities 1,418 1,310 Acquisition of fixed operating assets (339)
Slide 28: Condensed Consolidated Balance Sheet
Condensed consolidated balance sheet €m 2009 2008 change Goodwill & intangible assets 15,687 16,351 (664) Other net non-current assets 522 420 102 Net current assets (253) (40) (213) Provisions (560) (613) 53 CAPITAL EMPLOYED 15,396 16,118 (722) Net asset held for sale 24 (9) 33 SHAREHOLDERS’ EQUITY
Slide 29: Debt Ratios
Debt ratios €m 3.10 6,121 5,510 ** 4,584 2.73** 4,367 3,461 2.57 2.44 2.12 * * * * 2005* 2006* 2007* 2008* 2009 Net debt Net debt/EBITDA *Published, not restated **Pro forma / 29
Slide 30: Liquidity
Liquidity €m 5,944 5 944 Net debt €4,367m 1,102 1 102 11,116 116 946 643 499 61 Undrawn 2010* 2011** 2012** 2013** 2014** Beyond** confirmed lines of credit * Gross debt minus cash & cash equivalents and financing of customer loans ** Gross debt / 30
Slide 31: Dividend
Dividend Dividend per share In € +15.0% 3.45 - 4.3% 3,45 3.30 0.0% 3.30 3,30 3,30 +10.3% 3,00 3.00 +7.9% +5.0% 2.52 2,72 2.72 2.40 2,40 2,52 2003 2004 2005 2006 2007 2008 2009* Dividend payout 60,7% 60.7% 63.2% 63,2% 55.2% 55,2% 58,6% 58.6% 48.9% 48,9% 47.7% 47,7% 48,3% 48.3% 42,2% 42.2% 43.5% 43,5%
Slide 32: Alexandre de Brettes, Investor Relations
Alexandre de BRETTES Director of Financial Communications & Investor Relations + 33 (0) 1 45 64 61 49 adebrettes@ppr.com www.ppr.com