Lanvin Group Holdings Limited · NYSE:LANV
Lanvin — FY2022 Earnings Presentation
54 slides from Lanvin's earnings presentation, April 2023
Slide 1: 2022 Full-Year Results
022 FULL-YEAR'RESULTS if \ ) ee vs ca . - pepe LANVIN GROUP
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation, including the sections “Overview of 2022 Achievements”, “2023 Guidance”, “Solid Brand-Level Performance” and “Appendix”, contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform A
Slide 3: Building the New Luxury
BUILDING THE NEW LUXURY LANVIN GROUP
Slide 4: Table of Contents
TABLE OF CONTENTS PAGE 5 GROUP CONSOLIDATED FINANCIAL RESULTS PAGE 15 A UNIQUE GLOBAL | J LUXURY PLATFORM LANVIN GROUP PAGE 25 SOLID BRAND-LEVEL PERFORMANCE wl
Slide 5: Record Sales with 37% YoY Growth
Record Sales with 37% YoY Growth Enhanced Channel Capabilities Balanced Regional Development Improved Operational Efficiency Focused Brand Strategies Solidified Category Expansion
Slide 6: Global Revenue, DTC Revenue Growth, EMEA Revenue Growth
2022 2022 2022 2022 vs. 2021 Global Revenue DTC Revenue Growth EMEA Revenue Growth Gross Margin Change 2022 Global 2022 Wholesale 2022 North America 2022 vs. 2021 Revenue Growth Revenue Growth Revenue Growth Contribution Profit%(1) Change 2020-2022 2022 e-Commerce 2022 Greater China 2022 vs. 2021 Gl
Slide 7: Flagship Brand Lanvin Powering Momentum with 64% YoY Growth
FLAGSHIP BRAND LANVIN POWERING MOMENTUM WITH 64% YOY GROWTH €13 €6 €422 €33 -€2 €16 €47 €309 €223 2020 2021 Eliminations 2022 7
Slide 8: Greater China Grew by 15% Despite Negative COVID Impact
GREATER CHINA GREW BY 15% DESPITE NEGATIVE COVID IMPACT, DEMONSTRATING BRAND RESILIENCE €11 €422 €6 Other(1) €39 Greater +95% China €58 +15% 5% 12% €309 2022 49% EMEA +39% North 34% America +36% (1) (1) Other includes: Japan, South Korea, Thailand, Malaysia, Vietnam, Indonesia, Philippines, Australi
Slide 9: Driven by the Group's Successful Global Omni-Channel Strategies
DRIVEN BY THE GROUP’S SUCCESSFUL GLOBAL OMNI-CHANNEL STRATEGIES €48 €5 €422 Other(1) +88% €61 2% Wholesale €309 +41% 39% 2022 DTC 59% +32% (1) (1) Other includes: fees for royalties, licenses received from third party, and clearance. 9
Slide 10: Year-over-Year Improvement in the Group's Margins
YEAR-OVER-YEAR IMPROVEMENT IN THE GROUP’S GROSS PROFIT, CONTRIBUTION PROFIT AND ADJUSTED EBITDA MARGINS GP% 53% 55% 56% CP% -15% 1% 3% Adj. EBITDA% -40% -19% -17% FY2020 FY2021 FY2022 € 238 € 13 €4 € 170 FY2020 FY2021 FY2022 € 117 -€ 59 -€ 72 -€ 88 -€ 34 FY2020 FY2021 FY2022 (1) These are Non-IFRS F
Slide 11: HQ and Eliminations
€1 €13 €2 €3 €9 €4 €9 - €15 HQ and 2021 2022 Eliminations (1) Non-IFRS Financial Measure. Please see Page 54 for Non-IFRS Financial Measures and definition. Note: HQ and eliminations are not allocated by brand and result mainly from intragroup transactions. Brand-level results are presented exclusiv
Slide 12: Ongoing Upgrade of Store Network
ONGOING UPGRADE OF STORE NETWORK, WITH DISCIPLINED NEW OPENINGS AND CLOSURES OF UNDERPERFORMING LOCATIONS Lanvin Group DOS Evolution by Brand Selected 2022 Newly Opened Boutiques 13 7 15 12 293 291 -49 Lanvin – Tokyo Ginza Sergio Rossi - Milan Spiga 26 Lanvin Group DOS Evolution by Region 23 2 15 29
Slide 13: Cash Conversion Cycle
€85 €74 €51 €109 €92 €76 €40 €49 €22 Trade payables Inventories -€47 -€58 Trade receivables -€73 2020Y202 0 2021 Y202 1 2022Y202 2 Cash Conversion Cycle(1) 134 123 113 % of Revenues 23% 22% 20% DSO(1) 36 43 42 DIO(1) 263 216 216 DPO(1) 165 136 145 (1) Non-IFRS Financial Measure. Please see Page 54 f
Slide 14: Another Year of Topline Growth and Margin Improvement
ANOTHER YEAR OF TOPLINE GROWTH AND MARGIN IMPROVEMENT Momentum to continue in 2023 with China growth driving positive results; but global macro issues will persist Topline growth driven by continued retail network optimization and expansion, digitalization, targeted branding and customer engagement,
Slide 15: Section I
Source: Bain-Altagamma Luxury Goods Worldwide Market Study (Fall 2021-20th). Euromonitor. Section I 15
Slide 16: Lanvin Group's Brands Work Together
… LANVIN GROUP’S BRANDS WORK TOGETHER TO BUILD A WARDROBE OF MODERN, GENERATIONAL LUXURY FOR ITS CONSUMERS BY SYNERGIZING EACH BRANDS’ IDEAS AND CORE SKILLS IN DESIGN AND PRODUCTION SINCE SINCE 2022 Revenues – €86 million 2022 Revenues – €120 million % of Group Revenues – 20% % of Group Revenues – 2
Slide 17: Key Strategies and Initiatives in Brand, Product, Channel and Region
… KEY STRATEGIES AND INITIATIVES IN BRAND, PRODUCT, CHANNEL AND REGION DROVE RECORD GROWTH IN 2022 • Back to brand DNA and ethos • Continued investment in branding • Increased accessory contribution • All regions experienced growth • Strong growth in e-Commerce • Focus on core iconic offerings • Tar
Slide 18: First and Only Global Luxury Group Headquartered in China
… LANVIN GROUP IS THE FIRST AND ONLY GLOBAL LUXURY GROUP HEADQUARTERED IN CHINA WITH UNPARALLELED ACCESS TO THE LARGEST AND FASTEST GROWING LUXURY MARKET IN THE WORLD MARKET CAP Source: Market Cap as of April 12 2023, Capital IQ. 18
Slide 19: Small Size and Underpenetrated Store Footprint Provide Room for Growth
… … SMALL SIZE AND UNDERPENETRATED STORE FOOTPRINT PROVIDE SIGNIFICANT ROOM FOR GROWTH Luxury Peer Group DOS Luxury Peer Group DOS Luxury Peer Group DOS Lanvin Group DOS Lanvin Group DOS Lanvin Group DOS Lanvin Group DOS Note: DOS as of 31st December 2022. Includes shop-in-shop, retail, outlet & pop
Slide 20: Highly Attractive and Resilient Personal Luxury Goods Market
… HIGHLY ATTRACTIVE AND RESILIENT PERSONAL LUXURY GOODS MARKET, WITH CHINA BEING THE MAIN GROWTH DRIVER Global Personal Luxury Goods Market Size (€bn) Luxury Goods Spending Breakdown by Nationalities of Customers (€bn) €700 Performance of Luxury Personal Goods vs Other Luxury Segments (Market Size R
Slide 21: Small Size and Start-up Mode
SMALL SIZE AND START-UP MODE... NIMBLE DIGITAL START-UP UNICORN APPROACH MIND-SET VALUE TRACKRECORD
Slide 22: Unicorn Track Record of Growth Achieved in the Past Three Years
… UNICORN TRACKRECORD OF GROWTH ACHIEVED IN THE PAST THREE YEARS Lanvin 2020 – 2022 Lanvin 2020 – 2022 Wolford 2020 – 2022 Global Revenue Global Digital Revenue The % of W Collection in Seasonal Sales Lanvin Group 2020 – 2022 Lanvin Group 2020 – 2022 Lanvin Group 2020 – 2022 Global Revenue Global Di
Slide 23: Identified Growth Drivers Across All Brands to Increase Scale
IDENTIFIED GROWTH DRIVERS ACROSS ALL BRANDS TO INCREASE SCALE Enhance On-brand Increase Post-COVID through innovative to seize opportunities and in underpenetrated from return of global travel marketing initiatives and create new regions and expand and increased consumer targeted story-telling volum
Slide 24: Margin Drivers to Target EBITDA Breakeven in 2024
IDENTIFIED MARGIN DRIVERS ALONG WITH INCREASED SCALE TO TARGET EBITDA BREAKEVEN IN 2024 EBITDA Breakeven in 2024 EBITDA Better controlled G&A BREAKEVEN with established middle/back office and Absorption of selling and IT infrastructure Increased revenue scale marketing expenses with increased sales
Slide 25: Solid Brand-Level Performance
SOLID BRAND-LEVEL PERFORMANCE LANVIN GROUP
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Slide 27: Lanvin Key Highlights
€3,836 €119,847 €30,737 €12,402 KEY HIGHLIGHTS €72,872 • Revenue grew 64% from €73mm in 2021 to €120mm in 2022 €34,989 • Strong wholesale demand among global luxury retailers and specialty stores, notably for accessories • DTC growth from improved product offerings, client engagement and digital act
Slide 28: Lanvin returns to elegance and sophistication
Lanvin returns to elegance and Sneaker and leather goods businesses have Through striking a balance between Net increase of 4 new stores, including the sophistication, bridging the heritage and driven volume through hit styles, now making sophisticated and casual offerings and brand’s first flagship
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Slide 30: Wolford Global Revenue Bridge
Wolford Global Revenue Bridge (€ in Thousands) €15,786 €680 €125,514 -€284 €109,332 KEY HIGHLIGHTS €95,384 • Revenue grew 15% from €109mm in 2021 to €126mm in 2022 • 44% growth in North America, driven by DTC channel as per brand strategy • Impactful collaborations including GCDS, ALBERTA FERRETTI,
Slide 31: Wolford refocused on core iconic classics
Refocused on core iconic classics for a W Lab: targeted collaborations GCDS, The W: Leveraging Wolford’s unique Flagship stores opened in Paris, New York clearer brand statement, more defined ALBERTA FERRETTI, MUGLER and know-how in creating the best skinwear, and Shanghai; continued to optimize pro
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Slide 33: Sergio Rossi Key Highlights
€2,999 €61,929 €59.206 NM -€276 KEY HIGHLIGHTS €28,737 • Acquired and integrated by the Group in July 2021; revenue grew 5% from €59mm (Pro Forma) in 2021 to €62mm in 2022 • DTC growth driven by strong performance of retail stores in Japan and digital sales in China • Strong results in EMEA, offset
Slide 34: Sergio Rossi solidified core offerings of classic women's shoes
Solidified the brand’s expertise and core Fashion capsules with the brand’s new Targeted collaborations with Sergio Rossi Fostered presence mostly in China and offerings of classic women’s shoes, Artistic Director generated hype and and others created constant brand buzz EMEA, cemented leading posit
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Slide 36: St. John Key Highlights
€14,381 €395 €85,884 -€2,436 €73,094 €66,512 KEY HIGHLIGHTS • Revenue grew 17% from €73mm in 2021 to €86mm in 2022 • 29% growth in DTC channel benefiting from refocusing on core North American market, and targeted client and store network optimization • Successful implementation of full price strate
Slide 37: St. John refocused products, clients and market
At its 60th anniversary, St. John refocused Launched the Foundation Collection that’s Active store upgrade/relocation and retail Successful full price strategy both online and its products, clients and market, as an iconic comprised of building blocks of thoughtful and digital activations resulted i
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Slide 39: Caruso Key Highlights
€6,124 €30,819 NM €26,351 €24,695 NM KEY HIGHLIGHTS • Revenue grew 25% from €25mm in 2021 to €31mm in 2022 • Strong growth from proprietary brand business with attractive price and style positioning • B2B Maisons manufacturing business growth driven by new account acquisitions and made- to-measure p
Slide 40: The 'back-to-elegance' trend has benefited Caruso
The ‘back-to-elegance’ trend has benefited Clear style positioning (luxurious Playful B2B Maisons business increased solidly with Improved production efficiency and better both the B2B Maisons manufacturing Elegance), defined collections and new e- new account acquisitions; diversifying economies of
Slide 41: Appendix
APPENDIX LANVIN GROUP
Slide 42: Lanvin Group Consolidated P&L
(€ in Thousands, unless otherwise noted) 2020A 2021A 2022A Lanvin Group Consolidated P&L FY % FY % FY % Revenue 222,612 100% 308,822 100% 422,312 100% Cost of sales -105,218 -47% -138,920 -45% -184,368 -44% Gross profit 117,394 53% 169,902 55% 237,944 56% Marketing and selling expenses -151,631 -68%
Slide 43: Lanvin Group Consolidated Balance Sheet
(€ in Thousands, unless otherwise noted) (€ in Thousands, unless otherwise noted) 2020A 2021A 2022A 2020A 2021A 2022A Lanvin Group Consolidated Balance Sheet Lanvin Group Consolidated Balance Sheet FY FY FY FY FY FY Assets Liabilities Non-current assets Non-current liabilities Intangible assets 175,
Slide 44: Lanvin Group Consolidated Cash Flow
(€ in Thousands, unless otherwise noted) 2020A 2021A 2022A Lanvin Group Consolidated Cash Flow FY FY FY Net cash used in operating activities -87,297 -73,088 -80,851 Net cash flows from/(used in) investing activities 67,038 6,346 -21,799 Net cash flows generated from financing activities -41,447 110
Slide 45: Lanvin Brand Key Financials
(€ in Thousands, unless otherwise noted) 2020A 2021A 2022A 2021A v 2022A v 20-22 Lanvin Brand Key Financials FY % FY % FY % 2020A 2021A CAGR Key Financials on P&L Revenues 34,989 100% 72,872 100% 119,847 100% 108% 64% 85% Gross profit 13,573 39% 34,028 47% 60,513 50% Selling and distribution expense
Slide 46: Wolford Brand Key Financials
(€ in Thousands, unless otherwise noted) 2020A 2021A 2022A 2021A v 2022A v 20-22 Wolford Brand Key Financials FY % FY % FY % 2020A 2021A CAGR Key Financials on P&L Revenues 95,384 100% 109,332 100% 125,514 100% 15% 15% 15% Gross profit 65,865 69% 79,070 72% 86,228 69% Selling and distribution expens
Slide 47: Sergio Rossi Brand Key Financials
(€ in Thousands, unless otherwise noted) 2021PF 2021A 2022A 2022A v 2022A v Sergio Rossi Brand Key Financials FY % FY % FY % 2021PF 2021A Key Financials on P&L Revenues 59,206 100% 28,737 100% 61,929 100% 5% 116% Gross profit 13,319 46% 31,048 50% Selling and distribution expenses -9,489 -33% -24,50
Slide 48: St.John Brand Key Financials
(€ in Thousands, unless otherwise noted) 2020A 2021A 2022A 2021A v 2022A v 20-22 St.John Brand Key Financials FY % FY % FY % 2020A 2021A CAGR Key Financials on P&L Revenues 66,512 100% 73,094 100% 85,884 100% 10% 17% 14% Gross profit 32,987 50% 38,987 53% 52,642 61% Selling and distribution expenses
Slide 49: Caruso Brand Key Financials
(€ in Thousands, unless otherwise noted) 2020A 2021A 2022A 2021A v 2022A v 20-22 Caruso Brand Key Financials FY % FY % FY % 2020A 2021A CAGR Key Financials on P&L Revenues 26,351 100% 24,695 100% 30,819 100% -6% 25% 8% Gross profit 4,881 19% 4,449 18% 7,147 23% Selling and distribution expenses -1,7
Slide 50: Footprint by Brand
2021 2022 Footprint by Brand (1) (2) (1) (2) DOS POS DOS POS Lanvin 27 287 31 339 Wolford 167 227 163 225 St. John 48 133 46 106 Sergio Rossi 50 328 50 346 Caruso 1 144 1 189 Total 293 1,119 291 1,205 (1) DOS refers to Directly Operated Stores which include boutiques, outlets, concession shop-in-sho
Slide 51: Reconciliation of Contribution Margin
(€ in Thousands, unless otherwise noted) 2020A 2021A 2022A Reconciliation of Contribution Margin FY FY FY Revenue 222,612 308,822 422,312 Cost of sales -105,218 -138,920 -184,368 Gross profit 117,394 169,902 237,944 Marketing and selling expenses -151,631 -165,502 -224,733 Contribution profit (1) -3
Slide 52: Reconciliation of Adjusted EBIT
(€ in Thousands, unless otherwise noted) 2020A 2021A 2022A Reconciliation of Adjusted EBIT FY FY FY Loss for the year -135,657 -76,452 -239,751 Add / (Deduct) the impact of: Income tax benefits / (expenses) -1,603 4,331 -129 Finance cost—net 12,989 9,313 14,556 (1) Non-underlying items -43,546 -45,2
Slide 53: Reconciliation of Adjusted EBITDA
(€ in Thousands, unless otherwise noted) 2020A 2021A 2022A Reconciliation of Adjusted EBITDA FY FY FY Loss for the year -135,657 -76,452 -239,751 Add / (Deduct) the impact of: Income tax benefits / (expenses) -1 ,603 4,331 -1 29 Finance cost—net 1 2,989 9,31 3 1 4,556 (1) Non-underlying items -43,54
Slide 54: Non-IFRS Financial Measures and Definitions
Our management monitors and evaluates operating and financial performance using several non-IFRS financial measures including: contribution profit, contribution margin, Adjusted EBIT and Adjusted EBITDA. Our management believes that these non-IFRS financial measures provide useful and relevant infor