Safilo Group S.p.a. · MIL:SFL
Safilo — Q3 2022 Earnings Presentation
28 slides from Safilo's earnings presentation, Nov 3, 2022
Slide 1: Q3 and First 9 Months 2022 Trading Update
Q3 and First 9 Months 2022 Trading Update November 3, 2022
Slide 2: Disclaimer
DISCLAIMER This presentation may contain forward looking statements based on current expectations and projects of the Group in relation to future events. Due to their specific nature, these statements are subject to Q3 and First 9 Months 2022 inherent risks and uncertainties, as they depend on certa
Slide 3: CEO quote on Q3 growth of sales and profits
“Q3 marked another quarter of growth of our sales and profits, driven by the strength of our new collections, the investments behind our brands and a continued effort to increase the breadth of the services we offer to our clients. … Our results are keeping us on track with our goals.” Angelo Trocch
Slide 4: Q3 2022 Highlights: Positive sales momentum
Q3 2022 HIGHLIGHTS Q3 CONFIRMED SOLID KPIs: Positive sales momentum +14.9% +5.6% organic1 Another double-digit improvement of gross profit and adj.2 EBITDA Gross margin 53.8% adj.2 EBITDA 8.7% 1 ORGANIC SALES PERFORMANCE IS AT CONSTANT EXCHANGE RATES AND INCLUDES ONLY THE SALES OF BRANDS PRESENT IN
Slide 5: Q3 confirmed our key business drivers
Q3 2022 HIGHLIGHTS Q3 CONFIRMED OUR KEY BUSINESS DRIVERS… by Region • Positive sales momentum continuing in Europe, Latin America and IMEA markets • US business holding up vs another tough comp and delayed deliveries of sport products • Significant rebound of Asia by Product • Sunglasses remaining t
Slide 6: The strength of our brand portfolio
Q3 2022 HIGHLIGHTS …and THE STRENGTH OF OUR BRAND PORTFOLIO • Carrera and Polaroid continued to post remarkable double-digit growth • Smith grew more moderately due to the delayed phasing of deliveries • Tommy, HUGO BOSS, David Beckham, Under Armour and Isabel Marant were the other key drivers of ou
Slide 7: Products and marketing activities remain key enablers
Q3 2022 HIGHLIGHTS OUR PRODUCTS AND MARKETING ACTIVITIES REMAIN OUR KEY ENABLERS https://www.youtube.com/watch?v=2-wvqe91m2c 6
Slide 8: Back to school campaign
Q3 2022 HIGHLIGHTS OUR PRODUCTS AND MARKETING ACTIVITIES REMAIN OUR KEY ENABLERS BACK TO SCHOOL CAMPAIGN KIDS'S OPTICALS 7
Slide 9: Smith Optics kids' opticals campaign
Q3 2022 HIGHLIGHTS OUR PRODUCTS AND MARKETING ACTIVITIES REMAIN OUR KEY ENABLERS Life is what you focus on | Smith Optics KIDS'S OPTICALS 8
Slide 10: Partnership with Oracle Red Bull Racing Team
Q3 2022 HIGHLIGHTS OUR PRODUCTS AND MARKETING ACTIVITIES REMAIN OUR KEY ENABLERS revs up partnership with Oracle Red Bull Racing Team 9
Slide 11: Q3/9M 2022 Sales Performance
Q3/9M 2022 SALES PERFORMANCE
Slide 12: Sales Performance: Total Net Sales
SALES PERFORMANCE TOTAL NET SALES Q3 positive sales momentum allowed us to confirm solid progress in the first 9 months Q3 2022 vs Q3 2021 9M 2022 vs 9M 2021 260.4 €m +14.9% 831.3 €m +12.7% +4.6% @cFX +5.7% @cFX +5.6%1 +9.9%1 1 ORGANIC SALES PERFORMANCE IS AT CONSTANT EXCHANGE RATES AND INCLUDES ONL
Slide 13: Sales Performance: Europe and North America
SALES PERFORMANCE (% change vs corresponding period of 2021) Q3 2022 9M 2022 Q3 2022 9M 2022 Europe North America +15.5% 40.0% +14.3% +8.4% +8.0% 46.1% +14.1% @cFX +14.1% @cFX -7.4% @cFX -3.8% @cFX +8.1%1 +18.2%1 -1.2%1 +1.2%1 • Solid prescription frames business and strong growth of sunglass • Sale
Slide 14: Sales Performance: Rest of World and Asia Pacific
SALES PERFORMANCE (% change vs corresponding period of 2021) Q3 2022 9M 2022 Q3 2022 9M 2022 Rest of Asia & World Pacific +36.9% +36.8% +43.3% +11.1% +21.8% @cFX 8.9% +24.7% @cFX +31.6% @cFX 5.0% +3.4% @cFX +13.3%1 +23.0%1 +46.1%1 +17.2%1 • Carrera, Polaroid, and some of our key licenses continued t
Slide 15: Q3/9M 2022 Economic & Financial Performance
Q3/9M 2022 ECONOMIC & FINANCIAL PERFORMANCE
Slide 16: Economic Performance: Gross Profit and Margin
ECONOMIC PERFORMANCE GROSS PROFIT AND MARGIN EXPANDING YOY Positive sales dynamics in terms of price/mix and structural COGS savings continued to offset inflation pressure and forex impact on margins Q3 2022 vs Q3 2021 9M 2022 vs 9M 2021 140.0 €m +18.0% 458.4 €m +20.3% +16.2%2 +17.2%2 MARGIN MARGIN
Slide 17: Economic Performance: Adjusted EBITDA and Margin
ECONOMIC PERFORMANCE ADJ.2 EBITDA AND MARGIN EXPANDING YOY Higher SG&A costs reflecting marketing investments on our brands and IFRIC SaaS costs, still capitalized in Q3 ’21 Q3 2022 vs Q3 2021 9M 2022 vs 9M 2021 22.6 €m +18.6% 85.3 €m +24.0% MARGIN MARGIN 8.7% +30 bps 10.3% +100 bps 9.4% pre-IFRIC S
Slide 18: Group Net Debt and New Financing Agreement
GROUP NET DEBT AND NEW FINANCING AGREEMENT September 30, 2022 Dec. 31, 2021 GROUP NET DEBT 115.4 94.0 GROUP NET DEBT pre IFRS-16 67.2 52.8 NEW FINANCING AGREEMENT FOR EURO 300 MILLION SIGNED 15
Slide 19: Further Business Actions
FURTHER BUSINESS ACTIONS
Slide 20: Progress on Digital and Sustainability
PROGRESS ON DIGITAL AND SUSTAINABILITY Creation of “ Digital Force”, Safilo’s Salesforce Academy that aims to seek and train new talents in the digital transformation and Salesforce field. In partnership with DOT “Digital On Things. Introduction of Eastman Tritan™ Renew in its polarized lenses, beco
Slide 21: Q&A
Q&A Q3 and First 9 Months 2022 Trading Update November 3, 2022
Slide 22: Appendices
Appendices Q3 and First 9 Months 2022 Trading Update November 3, 2022
Slide 23: Notes to the Presentation
NOTES TO THE PRESENTATION 1 Organic sales performance is provided at constant exchange rates and includes only the proprietary brands and not terminated licenses, present in both of the compared periods, excluding the business attributable to the production supply contract with Kering Eyewear. 2 In
Slide 24: Net Sales by Geographical Area
NET SALES BY GEOGRAPHICAL AREA Change at Change at Change at Change at current forex constant forex current forex constant forex 1 1 (Euro million) Q3 2022 % Q3 2021 % Reported Reported Organic (Euro million) 9M 2022 % 9M 2021 % Reported Reported Organic North America 124.7 47.9 115.1 50.8 +8.4% -7.
Slide 25: Net Sales Performance by Product
NET SALES PERFORMANCE BY PRODUCT Sunglasses Prescription frames Q3 2022 9M 2022 Q3 2022 9M 2022 +15.0% 49.6% +9.4% +14.1% 39.5% +12.6% +4.3% @cFX +2.7% @cFX +5.2% @cFX +6.0% @cFX +7.1%1 +11.9%1 +4.6%1 +4.9%1 Other +17.1% +31.9% +4.2% @cFX 10.9% +20.6% @cFX +3.6%1 +20.3%1 1 ORGANIC SALES PERFORMANCE
Slide 26: Economic Trading Update
Q2 2022 ECONOMIC TRADING UPDATE % on % on % Change % on % on % Change (Euro million) Q3 2022 net sales Q3 2021 net sales (Euro million) 9M 2022 net sales 9M 2021 net sales 2022 vs 2021 2022 vs 2021 Net sales 260.4 226.6 +14.9% Net sales 831.3 737.4 +12.7% Gross Profit 140.0 53.8% 118.7 52.4% +18.0%
Slide 27: Exchange Rates
EXCHANGE RATES (Appreciation)/ (Appreciation)/ As of Average for Depreciation Depreciation September 30, December 31, Currency Code % 9M 2022 9M 2022 % 2022 2021 US Dollar USD 0.9748 1.1326 -13.9% 1.0638 1.1962 -11.1% Hong-Kong Dollar HKD 7.6521 8.8333 -13.4% 8.3326 9.2912 -10.3% Swiss Franc CHF 0.9
Slide 28: Brands Portfolio
By BRAN DS PORTFOLIO Safilo ‘SEE THE WORLD AT ITS BEST BOSS SMITH MOSCHINO Polaroid B EYEWEAR by DAVID BECKHAM @D MISSONI PRIVE REVAUX Juicy Couture JIMMY CHOO ISABEL MARANT TOMMY SBHILFIGER DSQUARED2 CHIARA FERRAGNI kate spade New Yore TOMMY JEANS: HUGO pierre cardin an CAROLINA HERRERA MARC JACOBS