Piquadro S.p.a · MIL:PQ
Piquadro — Investor Presentation (June 2010)
28 slides from Piquadro's investor presentation, Jun 24, 2010
Slide 1: Presentation FY March 2010
/\ tate SOS gh et | ter PRESENTATION FY MARCH 2010
Slide 2: Important Information
IMPORTANT INFORMATION • The information provided in this presentation is being furnished to you solely for your information on a confidential basis. Neither this document nor any copy thereof may be reproduced, redistributed or passed on, in whole or in part, to any other person. Neither this presen
Slide 3: A Rapid Path to Success
A RAPID PATH TO SUCCESS 1998-2003 CAGR: +26.1% (1) 2004/05-2009/10 CAGR: +22.4% (2) €52m €52m Launch of €46m Piquadro €36m brand €25m €16m €19m €13m 30,00% 29,50% 27,8% 26,4% €10m 25,10% €8m €5m €6m 1998 1999 2000 2001 2002 2003 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 SALES EBITDA Margin • S
Slide 4: Unique and Distinctive Brand Identity
UNIQUE AND DISTINTIVE BRAND IDENTITY Distinctive brand for “moving” people in leather goods industry Aspirational brand: high quality, technological mood, innovation, design and ergonomic performance Premium/performance positioning 4/28 Presentation – FISCAL YEAR MARCH 2010
Slide 5: Premium/Performance Positioning
PREMIUM /PERFORMANCE POSITIONING VALUE PROPOSITION Clear distinction from competitors at comparable price level through commitment to innovation, design, high Performance Fashion Lifestyle quality and ergonomic performance. Luxury A different approach: Value for me. Premium Customer “community” reco
Slide 6: Brand Awareness: Bag Brands Known, Owned, Desired
BRAND AWARENESS BAG’S BRANDS KNOWN, OWNED, DESIRED – Elite research Italian market 2009 - Eurisko (GFK Group) Basis: total sample =1000 (%) KNOWN OWNED DESIRED LOUIS VUITTON 64 SAMSONITE 24 LOUIS VUITTON 30 SAMSONITE 53 LOUIS VUITTON 23 GUCCI 16 GUCCI 48 GUCCI 13 SAMSONITE 15 PRADA 45 PRADA 13 PRADA
Slide 7: Brand Awareness: Bags' Brands Trend
BRAND AWARENESS BAGS’ BRANDS TREND - Elite research Italian market 2009 - Eurisko (GFK Group) LOUIS VUITTON PRADA GUCCI 60 60 60 40 40 40 28 30 DESIDERATA 21 22 17 16 16 16 17 17 18 15 17 16 20 27 23 POSSEDUTA 20 14 20 13 10 10 15 12 14 16 13 16 13 11 12 12 13 11 9 10 9 8 0 0 0 1999 2001 2003 2005 2
Slide 8: Brand Awareness: Bags' Brands Top 15
BRAND AWARENESS BAGS’ BRANDS TOP 15 - Elite research Italian market 2009 - Eurisko (GFK Group) Basis: total sample =1000 (%) OTHERS REFERENCES 65 CHANEL COCCINELLE DOLCE E GABBANA LOUIS VUITTON FENDI ARMANI FURLA TOD'S HOGAN 55 MANDARINA GUCCI PRADA DUCK RATIONALITY HERMES HEDONISM SAMSONITE 45 PIQU
Slide 9: Wide, Complementary Mono-Brand Product Mix
WIDE, COMPLEMENTARY MONO-BRAND PRODUCT MIX Complementary and extensive product offering, including professional bags, travel items, women’s bags, small leather goods and other accessories Product strategy: Basic Collections and Seasonal Collections • Basic Collections (80%/75% of turnover): long lif
Slide 10: Flexible and Efficient Business Model
FLEXIBLE AND EFFICIENT BUSINESS MODEL Internal product development and centralized procurement system. Efficient Partly-outsourced production (70%) guaranteed by Procurement select, controlled third-party manufacturers (China, Low Capex Flexible Taiwan, Hong Kong). Requirement Production From 30% to
Slide 11: Manufacturing: The Factory
MANUFACTURING: THE FACTORY Partly-outsourced production (from 60% to 70%) guaranteed by select, controlled third- party manufacturers (Far East). 11/28 Presentation – FISCAL YEAR MARCH 2010
Slide 12: Testing and Quality Control
TESTING AND QUALITY CONTROL Adhesion of Coating Tensile Seam Tumble Test Breaking Veslik Test on Leather Handle Jerk Mileage Test A unique Quality and Testing department in Europe Leather Industry. More than twenty control both on raw material (leather and metal accessories) and finished product. 12
Slide 13: International Multi-Channel Distribution Network
INTERNATIONAL MULTI-CHANNEL DISTRIBUTION NETWORK International Presence Presence in approx. 50 countries with strategic mix of DOS and Wholesale channel. Growing mono-brand network of 82 Stores (35 DOS, 47 franchised stores) in the most important cities worldwide. Design aspects conceptualized by Pi
Slide 14: International Multi-Channel Distribution Network: DOS
INTERNATIONAL MULTI-CHANNEL DISTRIBUTION NETWORK DOS Opening Year DOS Opening Year 1 )Milano Via Della Spiga 33 2000 18 )Valdichiana (Arezzo), Outlet Store 2008 2 )Milano Linate Airport 2002 19 ) Noventa di Piave (Venezia), Outlet Store 2008 3 )Roma Galleria Colonna 38 2003 20 ) Dubai Burjuman Shopp
Slide 15: International Multi-Channel Distribution Network: Franchising
INTERNATIONAL MULTI-CHANNEL DISTRIBUTION NETWORK Opening Opening FRANCHISING FRANCHISING Year Year 1 ) Roma Via Frattina 125 2002 25 ) Mosca, Russia TC Metropolis 2009 2 ) Mosca, Russia MEGA Shopping Mall 2004 26 ) Mosca, Sokolniki 2009 3 ) Padova Via Dante 19 2006 27 ) Belgrado USCE Center Boulevar
Slide 16: Summary Income Statement IAS-IFRS
SUMMARY INCOME STATEMENT IAS-IFRS (€m) FY Ending March 31, 2008 A 2009 A 2010 A Net sales 45.9 51.7 52,2 % growth +28.6% +12,4% +1,0% Other revenues 0,7 0,9 0,8 Material costs (7.9) (9.8) (8,4) Service costs (19.2) (20.6) (22.5) Personnel costs (5.5) (7.0) (8.0) Other operating expenses (0.4) (0.9)
Slide 17: Strong Top Line Growth
STRONG TOP LINE GROWTH FY Net Sales: up 22,4% p.a. * 51,7 52,2 In 12m DOS + 38.6% (SSSG +5,3% 46.0 at current exchange rate /+5.1% at (€m) 35.7 constant exchange rate); Wholesale down 6.1% mainly 25.0 impacted by Europe negative 19.2 trend . • Increase of average prices (up 2004/05A 2005/06A 2006/07
Slide 18: Sustainable High Profitability
SUSTAINABLE HIGH PROFITABILITY EBITDA: up 0.9% pa * FY 09/10 EBITDA down 138 bps €13.6 m €14.4 m €14.0 m impacted by new start-up shop openings and slight negative operative leverage due to 2007/08 2008/09 2009/10 wholesale sales’ decrease. Margin: 29.5% 27.8% 26.5% • DOS performance down 58 bps EBI
Slide 19: Group Net Income and Income Taxes
GROUP NET INCOME AND INCOME TAXES Net Income: up 5,3% pa * (€m) € 7.5m € 7.1m 9M 09/10 Net Profit in slight € 6.4m decrease down 5,2%. 2007/08 2008/09 2009/10 Low impact of interest expenses % of sales: 14.0% 14.5% 13.6% notwithstanding negative delta exchange rate (3K euro positive vs. 190K euro po
Slide 20: Summary Balance Sheet IAS-IFRS
SUMMARY BALANCE SHEET IAS-IFRS As of March 31 (€m) 2008A 2009A 2010A Net Working Capital 12.8 14.5 13.9 Net Tangible Assets 10.2 11.5 11.5 Net Intangible Assets 1.2 1.2 0.6 Net Financial Assets 0.9 1.3 1.6 Severance Staff, Provisions & Others (1.0) (1.1) (1.4) Net Capital Employed 24.1 27.4 26.3 Gro
Slide 21: Lean Capital Structure
LEAN CAPITAL STRUCTURE Total Capitalization (€m) IAS-IFRS Net Debt/ 0.9 0.6 0.2 Equity As of March 31 2008A 2009A 2010A 24.0 27.3 26.3 Short-term Net Debt 1.6 2.8 3.3 29 (€m) 28 27 0.2 Long-term Net Debt 12.4 14.5 11.3 26 0.1 25 24 0.2 Cash & Cash Equivalents (2.3) (6.8) (9.3) 23 22 21 Net Debt 11.7
Slide 22: Cash Generative Business Model
CASH GENERATIVE BUSINESS MODEL Cash Conversion(1) The Company has high conversion of EBITDA into operating cash flow : 11,3% 13,7% 24.2% • Limited Capex requirement 37.1% 22,1% 15.1% • Efficient working capital 10.2% management Total 93,1% EBITDA High performance in March 10 due 64,2% 60.8% 52.7% al
Slide 23: Cash Generative Business Model
CASH GENERATIVE BUSINESS MODEL 10.393 -2.999 -3.980 -2.519 581 967 5.334 5.334 11.000 10.000 9.000 8.000 7.000 6.000 +4.367 5.000 4.000 3.000 2.000 +386 +3.100 1.000 0 -1.000 -2.000 +1.461 -3.000 -13.392 -4.000 -981 Net Debt as Operating NWC Net Dividends Other Taxes Net Debt as March 2009 Cash Flow
Slide 24: The Path Ahead
THE PATH AHEAD Focus on aspirational content and brand awareness: profitability and cash generation International Focus on Logistic/Manufacturing internationalization /Financial platform in Asia Development of Exploiting target Brand Extension: positioning inTravel new licensing Items and ‘explorati
Slide 25: Focus on Internationalization
FOCUS ON INTERNATIONALIZATION New franchised stores in Italy and Europe as a way to reinforce and rationalise distribution Expansion of presence in international markets adapting collection to local customers CHINA - BEIJING JIMBAO PLACE Focus on “high potential markets” (mainly Far East’s one) in r
Slide 26: Apparel Project
APPAREL PROJECT Introducing some “contamination” of Piquadro values with Exploration in more marketable new business apparel values areas which could drive new growth to core business Marketing campaign driving Piquadro Brand Awareness as Lifestyle New agreement Brand with Studio Osti to create a ne
Slide 27: Aiming to Translate and Create Sustainable Cash Generation
A I M I NG TO T RA N S LAT E A N D C R EAT E , SU STA I NA B L E CA S H G E N E RAT IO N Top line growth/stability in relation to the Maintaining high profitability more than market conditions average Industry Efficient working capital management Low capital intensive business model HIGH CASH FLOW G
Slide 28: Localita Sassuriano, - 40041
Localita Sassuriano, 246 - 40041 Silla di Gaggio Montano - Bologna - Italy www. piquadro.com - T +39 0534 409001