Capri Holdings Limited · NYSE:CPRI
Capri — Investor Day (June 2021)
163 slides from Capri's investor day presentation, Jun 29, 2021
Slide 1: Capri Holdings Investor Day
CAPRI HOLDINGS LIMITED VERSACE June 29, 2021 INVESTOR DAY John Idol, Chairman & Chief Executive Officer Tom Edwards, Chief Financial & Chief Operating Officer Jonathan Akeroyd, CEO Versace Hannah Colman, CEO Jimmy Choo
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains statements which are, or may be deemed to be, “forward-looking statements.” Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of Capri Holdi
Slide 3: Investor Day Program
INVESTOR DAY PROGRAM CAPRI OVERVIEW VERSACE JIMMY CHOO MICHAEL KORS Q&A
Slide 4: Capri's Strategic Pillars
CAPRI’S STRATEGIC PILLARS Maximize the full potential of our three distinct fashion luxury brands Design innovative and exciting fashion luxury product Create compelling communication to deepen consumer desire and engagement Leverage seamless omni-retailing capabilities to accelerate revenue growth
Slide 5: Capri Revenue and Earnings Growth
CAPRI REVENUE AND EARNINGS GROWTH OPPORTUNITY ~75% ~$7.0B $5.6B ~$5.9B ~$5.15B $4.1B OPERATING 156% MARGIN 10.7% F2020 F2021 F2022E F2023E FUTURE EPS $3.89 $1.90 $3.80-$3.90 ~$5.00 *US GAAP results adjusted for special items
Slide 6: Capri Revenue by Brand
CAPRI REVENUE BY BRAND mu Versace = $4.1B = Jimmy Choo Michael Kors 75% EE 68% 63% 72% F2020 F2021 F2022E F2023E FUTURE
Slide 7: Capri Revenue by Region
CAPRI REVENUE BY REGION ~$7.0B ~$5.9B $5.6B ~$5.15B Asia sae a = EMEA Americas 57% 47% 54% 50% 54% F2020 F2021 F2022E F2023E FUTURE
Slide 8: Capri Revenue by Channel
CAPRI REVENUE BY CHANNEL Licensing $5.68 ~$5.15B = = Wholesale $4.1B a“ Retail 74% 63% 71% 73% 71% F2020 F2021 F2022E F2023E FUTURE Retail includes stores and E-commerce
Slide 9: Capri Retail Store Base
CAPRI RETAIL STORE BASE 1,260 1,257 1,270 1,230 m™ Versace = 7 a = Jimmy Choo Michael Kors 839 820 810 780 700 F2020 F2021 F2022E F2023E FUTURE
Slide 10: Capri Operating Margin Expansion
CAPRI OPERATING MARGIN EXPANSION OPERATING MARGIN MARGIN DRIVERS F2021 to FUTURE (Basis Points) 13.6% ~14.0% GROSS MARGIN ~300 10.7% : EXPENSE LEVERAGE MIX F2020 F2021 F2022E F2023E FUTURE ~20.0% *US GAAP results adjusted for special items
Slide 11: Capital Investments
CAPITAL INVESTMENTS APPROXIMATELY $200M PER YEAR Expand luxury store fleet DIGITAL TECHOLOGY Renovate stores Invest in digital technology CORPORATE Create common corporate PLATFORMS platforms 60% STORES
Slide 12: Capital Allocation
CAPITAL ALLOCATION ALLOCATION PRIORITIES DEBT REDUCTION Near-term: Net Debt * Invest in business $2.4B * Repay debt $1.6B $1.1B Longer-term: $0.8B * Return cash to shareholders [| $0.38 ¢ Luxury acquisitions F2019 F2020 F2021 F2022E F2023E * Targeting <2.0x leverage ratio
Slide 13: Capri Revenue and Earnings Growth
CAPRI REVENUE AND EARNINGS GROWTH OPPORTUNITY ~75% ~$7.0B $5.6B ~$5.9B ~$5.15B $4.1B OPERATING 156% MARGIN 10.7% F2020 F2021 F2022E F2023E FUTURE EPS $3.89 $1.90 $3.80-$3.90 ~$5.00 *US GAAP results adjusted for special items
Slide 14: Investor Day Program
INVESTOR DAY PROGRAM CAPRI OVERVIEW VERSACE JIMMY CHOO MICHAEL KORS Q&A
Slide 15: Versace
VERSACE VERSACE BRAND GROWTH INITIATIVES FINANCIAL OUTLOOK
Slide 16: Celebrating Iconic Italian Heritage and Unapologetic Glamour
CELEBRATING ICONIC ITALIAN = HERITAGE AND UNAPOLOGETIC |)’ GLAMOUR
Slide 17: Donatella Versace's Brand Vision
DONATELLA VERSACE’S BRAND VISION “FASHION IS ABOUT PEOPLE. IT 1S ABOUT HOW WE HOW WE EXPRESS OURSELVES AND SHOW OUR STRENGTH AND POWER.”
Slide 18: Glamorous
GLAMOROUS
Slide 19: Bold
BOLD
Slide 20: Rock & Roll
ROCK & ROLL
Slide 21: Versace
VERSACE VERSACE BRAND GROWTH INITIATIVES FINANCIAL OUTLOOK
Slide 22: Versace Growth Initiatives
VERSACE GROWTH INITIATIVES COMMUNICATION STRATEGY * Capitalize on high brand engagement and awareness * Reinforce three house pillars + Accelerate database growth PRODUCT STRATEGY + Expand accessories to $1 billion More than double footwear revenue Further capitalize on iconic brand codes Drive Sign
Slide 23: Storytelling Through Content
STORYTELLING THROUGH CONTENT
Slide 24: Spring-Summer Campaign
SPRING-SUMMER 21 CAMPAIGN
Slide 25: La Vacanza Summer Campaign
LA VACANZA SUMMER 21 CAMPAIGN
Slide 26: Fall-Winter Campaign
FALL-WINTER 21 CAMPAIGN
Slide 27: Accessories at the Forefront
ACCESSORIES AT THE FOREFRONT DUA LIPA HAILEY BIEBER PRECIOUS LEE EMRATA IRINA SHAYK KRISTEN CRAWLEY 4 DEVON CARLSON GILDA AMBROSIO =EVANGELIE DENNI ELIAS art DAUR LEONIE HANNE ALEALI MAY
Slide 28: Accessories at the Forefront
ACCESSORIES AT THE FOREFRONT
Slide 29: Global Influencers
GLOBAL INFLUENCERS THE MUSES THE AUTHENTICATORS THE MEGAPHONES THE AMPLIFIERS
Slide 30: China Brand Ambassador Betty Wu
CHINA BRAND AMBASSADOR BETTY WU
Slide 31: Global Social Following
GLOBAL SOCIAL FOLLOWING A GLOBAL AUDIENCE OF 40 MILLION ENGAGED FANS CHINESE CHINESE FASHION ENGAGED VIDEO LIVING SOCIAL MESSAGING BRAND BRAND CONTENT DESIGNER fp DISCOVERY Bf DISCOVERY Bf oy atronm ‘APP BEAUTIFUL 1 PRODUCT CONTENT % 355K
Slide 32: Accelerate Database Growth
ACCELERATE DATABASE GROWTH 10M 3M F2021 GOAL
Slide 33: Product Strategy
PRODUCT STRATEGY CAPITALIZE ON EXPAND MORE THAN DOUBLE ICONIC BRANDCODES ACCESSORIES TO $1B FOOTWEAR DRIVE SIGNATURE
Slide 34: Capitalize on Iconic House Pillars Across Categories
CAPITALIZE ON ICONIC HOUSE PILLARS ACROSS CATEGORIES ai \ da LA GRECA LA MEDUSA VIRTUS
Slide 35: Accessories Growth Strategy
ACCESSORIES GROWTH STRATEGY CAPITALIZE ON LA GRECA DEVELOP LA MEDUSA TO BUILD ON CONTINUED SIGNATURE PATTERN FULL POTENTIAL STRENGTH OF VIRTUS
Slide 36: Capitalize on New La Greca Signature Pattern
CAPITALIZE ON NEW LA GRECA SIGNATURE PATTERN
Slide 37: Develop La Medusa to Full Potential
DEVELOP LA MEDUSA TO FULL POTENTIAL
Slide 38: Build on the Continued Strength of Virtus
BUILD ON THE CONTINUED STRENGTH OF VIRTUS
Slide 39: Grow Accessories to 50% of Revenue
GROW ACCESSORIES TO 50% OF REVENUE $1B Establish authority as a luxury leather house Continue to focus on existing pillars - Virtus & La Medusa Launch Greca Signature Pattern for $200M Fall-Winter 21 F2021 GOAL
Slide 40: Grow Footwear
GROW FOOTWEAR LEVERAGE ICONIC BRAND EXPAND SNEAKER CAPITALIZE ON WOMEN’S CODES OFFERING FOOTWEAR OPPORTUNTY
Slide 41: Sneakers
SNEAKERS Expand Sneakers offer leveraging recognizable house codes
Slide 42: Footwear
FOOTWEAR Capitalize on women’s footwear opportunity
Slide 43: Drive Signature Across Categories
DRIVE SIGNATURE ACROSS CATEGORIES
Slide 44: Versace Product Mix Progression
VERSACE PRODUCT MIX PROGRESSION ACCESSORIES 25% GOAL ACCESSORIES 50% =
Slide 45: Omni-Channel Strategy
OMNI-CHANNEL STRATEGY Develop omni-channel capabilities Increase E-commerce to $500M Increase global store fleet to 300 Improve store sales density
Slide 46: Provide Engaging Omni-Channel Experience
PROVIDE ENGAGING OMNI-CHANNEL EXPERIENCE DRIVING THE CONSUMER ONLINE & IN STORES
Slide 47: Increase E-commerce to $500M
INCREASE E-COMMERCE TO $500M ¢ Accelerate database growth and 5X productivity va ¢« Use customer insights and data to increase engagement and amplify storytelling * Expand accessories offering F2021 GOAL
Slide 48: Increase Global Retail Footprint
INCREASE GLOBAL RETAIL FOOTPRINT TO 300 STORES 300 230 206 210 210 BAsia =mEMEA Americas 30 34 39 40 50 F2020 F2021 F2022E F2023E GOAL
Slide 49: Versace Store Sales Density
VERSACE STORE SALES DENSITY $3,000 / SQFT $1,400 / SQFT F2020 GOAL * Store sales per square foot calculated off of gross square footage
Slide 50: Bond Street, London
BOND STREET LONDON
Slide 51: Rue Saint Honore
RUE SAINT HONORE
Slide 52: Caesar's Palace, Las Vegas
CAESAR'S PALACE LAS VEGAS
Slide 53: Shanghai
SHANGHAI Te) Te) < N < = O
Slide 54: Regional Growth Strategy: Asia
REGIONAL GROWTH STRATEGY ASIA $700M Significantly increase investment in localized marketing Focus on E-commerce growth $280M Upgrade and refurbish the entire $240M store fleet Increase travel retail store count F2020 F2021 GOAL
Slide 55: Regional Growth Strategy: Americas
REGIONAL GROWTH STRATEGY AMERICAS $680M * Grow and continue renovating store fleet * Grow sales through rollout of $200M $200M Omni capabilities * Increase department store shop- in-shop presence F2020 F2021 GOAL
Slide 56: Regional Growth Strategy: EMEA
REGIONAL GROWTH STRATEGY EMEA $620M * Capitalize on local clientele to increase store productivity $370M * Grow sales through rollout of $270M omni capabilities * Increase department store shop- in-shop presence F2020 F2021 GOAL
Slide 57: Versace
VERSACE VERSACE BRAND GROWTH INITIATIVES FINANCIAL OUTLOOK
Slide 58: 35% 30% 25% 20% 15% 10% 5% 0%
20 00 35% 30% 15 00 25% 20% 10 00 15% 10% 50 0 5% 0 0% 58
Slide 59: Versace Revenue by Region
VERSACE REVENUE BY REGION $950M-$1B i $840M Asia $720M =mEMEA Americas 23% 28% NE F2020 F2021 F2022E F2023E GOAL
Slide 60: Versace Revenue by Channel
VERSACE REVENUE BY CHANNEL ~$2.0B @ Licensing $950M-$1B “20% $840M 720M 9) = Wholesale 7 “oe a TB . »Y Retail 64% Gar 71% 74% F2020 F2021 F2022E F2023E GOAL *Retail includes stores and E-commerce
Slide 61: Versace
VERSACE Capitalize on iconic brand codes Expand accessories to $1B Accelerate E-commerce and omni-channel development Increase global retail footprint to 300 stores
Slide 62: Investor Day Program
INVESTOR DAY PROGRAM CAPRI OVERVIEW VERSACE JIMMY CHOO MICHAEL KORS Q&A
Slide 63: Jimmy Choo
JIMMY CHOO JIMMY CHOO BRAND GROWTH INITIATIVES FINANCIAL OUTLOOK
Slide 64: Jimmy Choo
JIMMY CHOO CONFIDENT GLAMOUR DARING
Slide 65: Lu ~ < a) O E Lu = E
Lu ~ < a) O E Lu = E
Slide 66: Sandra Choi's Brand Vision
SANDRA CHOIPS BRAND VISION “GLAMOUR IS AN ATTITUDE, A SENSE OF CONFIDENCE THAT’S NOT LIMITED TO A TIME OR A PLACE.”
Slide 67: Jimmy Choo
JIMMY CHOO JIMMY CHOO BRAND GROWTH INITIATIVES FINANCIAL OUTLOOK
Slide 68: Jimmy Choo Growth Initiatives
JIMMY CHOO GROWTH INITIATIVES COMMUNICATION STRATEGY * Own glamour through emotional brand storytelling * Combine storytelling with data analytics + Double database size PRODUCT STRATEGY * Capitalize on iconic brand codes + Grow accessories to 30% of revenue * Maximize casual opportunity + Introduce
Slide 69: Storytelling Through Content
STORYTELLING THROUGH CONTENT
Slide 70: Jimmy Choo Spring 2021 Campaign
JIMMY CHOO SPRING 2021 CAMPAIGN
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Slide 72: Jimmy Choo Beach Capsule 2021 Campaign
JIMMY CHOO BEACH CAPSULE 2021 CAMPAIGN
Slide 73: Asia Ambassador Campaigns
ASIA AMBASSADOR CAMPAIGNS ASIA: VICTORIA SONG FRIEND OF THE BRAND: CHOI SOO-YOUNG WEIBO FOLLOWERS: 49.44M INSTAGRAM FOLLOWERS: 3.33M INSTAGRAM FOLLOWERS: 6M
Slide 74: Regional Storytelling
REGIONAL STORYTELLING
Slide 75: Owning Glamour
OWNING GLAMOUR GLAMOUR EVERYDAY - ANYTIME - ANYWHERE
Slide 76: Influencing Glamour
INFLUENCING GLAMOUR HAILEY BIEBER KYLIE JENNER ZIZI DONOHOE LIZZO VICTORIA SONG ANNA VITIELLO y ( =r a KIM KARDASHIAN GERALDINE BOUBLIL CAMILLE CHARRIERE THE TRIPLETSSS SNOH ALLEGRA JOLIN TSAI | ly
Slide 77: Engaging Our Community #IDOINCHOO
ENGAGING OUR COMMUNITY #IDOINCHOO
Slide 78: MK x Leo Wu
Leo Wu MK x Leo Wu Weibo: 42.5 million “Love Letters to Leo” Unisex Capsule (released August 2020) 78
Slide 79: Accelerate Database Growth
ACCELERATE DATABASE GROWTH 7.5M 3.7M F2021 GOAL
Slide 80: Product Strategy
PRODUCT STRATEGY CORE COLL EESION ACCESSORIES CASUAL NEW CATEGORIES
Slide 81: The Core Collection
THE CORE COLLECTION CAPITALIZE ON ICONIC BRAND CODES JC MONOGRAM CRYSTAL
Slide 82: Signature Ownership - JC Monogram
SIGNATURE OWNERSHIP - JC MONOGRAM
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Slide 88: Maximize Casual Opportunity
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Slide 93: Category Expansion
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Slide 97: Elevated Omni-Channel Experience Driving the Client Online & In Store
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Slide 100: Sales Productivity $/sq ft
SALES PRODUCTIVITY $/SQ FT 100
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Slide 106: Mix%:
• • Mix%: 252 • 4% 42% • 42% 12%
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• • Mix%: 252 • 4% 42% • 42% 12%
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• • Mix%: 252 4% • 42% • 42% 12%
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Slide 110: $90 40.0% $80 30.0% $70 $60 20.0% $50 10.0% $40 $30 0 0.0% $20
$90 0 40.0% $80 0 30.0% $70 0 $60 0 20.0% $50 0 10.0% $40 0 $30 0 0.0% $20 0 -10.0% $10 0 $0 -20.0% 110
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Slide 122: New York City
NEW YORK CITY 122
Slide 123: Bahamas
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Slide 139: Omni-Channel Growth Strategy
OMNI-CHANNEL GROWTH STRATEGY 139
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Slide 156: $5,000 40.0% $4,500 35.0% $4,000 30.0% $3,500 25.0% $3,000 $2,500 20.0% % $2,000 %
$5,000 40.0% $4,500 35.0% $4,000 30.0% $3,500 25.0% $3,000 $2,500 20.0% % $2,000 % 15.0% $1,500 10.0% $1,000 5.0% $50 0 $0 0.0% 156
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Slide 162: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Fiscal Year Ended March 27, 2021 As Impairment Restructuring and Charitable COVID-19 Related ERP Capri As Reported Charges (1) Other Charges (2) Donations Charges Implementation Transformation Adjusted Gross profit $ 2,597 $ — $ — $ — $ 10 $ — $
Slide 163: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Fiscal Year Ended March 28, 2020 Restructuring Inventory Impairment and Other Step-up ERP Capri Acquisition Foreign COVID-19 Related As Reported Charges (1) Charges (2) Adjustment Implementation Transformation Currency Effects Charges As Adjusted