Samsonite Group S.a. · HKEX:1910
Samsonite — Samsonite International — FY2017 Earnings Presentation
37 slides from Samsonite's earnings presentation, Mar 15, 2018
Slide 1: Annual Results 2017
Sams@nite WE CARRY THE WORLD ANNUAL RESULTS 2017 March 15, 2018
Slide 2: Disclosure Statement
Disclosure Statement This presentation and the accompanying slides (the “Presentation”) which have been prepared by Samsonite International S.A. (“Samsonite” or the “Company”) do not constitute any offer or invitation to purchase or subscribe for any securities, and shall not form the basis for or b
Slide 3: Agenda
Agenda Results Highlights Business Overview Financial Highlights Outlook and Company Strategy Q&A Page 3
Slide 4: 2017 Results Highlights
2017 Results Highlights Record Net Sales of US$3.5 billion +23.3% +27.9% +18.2% +0.7% Constant Constant Constant Constant Currency Currency Currency Currency Growth Growth Growth Constant currency net sales growth of Gross margin increased by 200bp Adjusted EBITDA increased by Adjusted Net Income in
Slide 5: 2017 Business Overview
2017 Business Overview Strong Strong constant currency net sales growth in all Advertising and promotion spend growth in all regions: of US$206.0 million (5.9% of net regions North America: +35.4% (+16.2% excluding Tumi sales) is 43.3%, or US$62.2 million, and +3.3% further excluding eBags) higher t
Slide 6: Strong net sales growth plus full year impact of Tumi
Strong net sales growth plus full year impact of Tumi Net sales growth excluding Tumi operations Net Sales Bridge – 2016 to 2017 of US$268.8 million (at constant currency rates), or 10.6%(1)(2) coming from: North America: +16.2%(1)(2) (+3.3%(1) further excluding eBags) Asia: +4.8%(1) Europe: +10.5%(
Slide 7: Growth in Adjusted Net Income (ANI)
Growth in Adjusted Net Income (ANI) +0.7% Constant Currency Growth Note: The main items that are adjusted out of net income when calculating Adjusted Net Income are amortization, acquisition costs, joint venture put option expense and the estimated tax impact on these items. In 2016, income tax bene
Slide 8: 2017 Results Highlights Excluding Tumi Operations
2017 Results Highlights Excluding Tumi Operations +10.6% Constant Currency Growth Constant currency net sales Gross margin increased by Advertising spend as a Adjusted EBITDA margin growth of 10.6% with North 70bp due mainly to a higher percentage of net sales is decreased by 100bp from 2016 America
Slide 9: 2017 Results Highlights Tumi Operations (Pro-forma 2016)
2017 Results Highlights Tumi Operations (Pro-forma 2016)* +12.6% Constant Currency Growth Constant currency net sales Gross margin increased by 400bp Advertising spend Adjusted EBITDA margin increased growth of 12.6% includes the due to less promotional activity in increased by 36.3% from by 80bp ma
Slide 10: Tumi Net Sales by Region (Pro-forma 2016)
Tumi Net Sales by Region (Pro-forma 2016)* +6.6% +33.0% +8.0% Constant Constant Constant Currency Currency Currency Growth Growth Growth Net sales growth of 6.7% was mainly Constant currency net sales growth of Constant currency net sales growth of driven by direct-to-consumer e- 33.0% includes the
Slide 11: North America – Tumi driving significant increase in net sales and profitability
North America – Tumi driving significant increase in net sales and profitability. Net sales increased by 35.4%(1) including US$214.7 million of incremental Tumi net sales from January to July 2017 and 6.9%(1) growth in Tumi net sales from August to December 2017. Excluding Tumi, net sales growth was
Slide 12: Asia – Strong net sales and profit growth led by the full year impact of Tumi
Asia – Strong net sales and profit growth led by the full year impact of Tumi and supported by improving growth in the organic business. Constant currency net sales growth of 16.0%(1) includes US$91.3 million of incremental Tumi net sales from January through July of 2017 and US$84.5 million of Tumi
Slide 13: Europe – Strong net sales growth of 16.8% driven by solid organic increase and Tumi
Europe – Strong net sales growth of 16.8%(1) driven by solid increase in organic net sales and full year impact of Tumi. Constant currency net sales growth of 16.8% including US$40.0 million incremental Tumi net sales from January to July 2017 and 4.1% (1) growth in Tumi net sales from August to Dec
Slide 14: Latin America – Strong growth in constant currency net sales and profitability
Latin America – Strong growth in constant currency net sales and profitability Net sales increased by 18.6%(1) on strong growth in Brazil +52.0%(1), Chile +9.7%(1) and Mexico +11.4%(1)(3). Strong growth of 28.1%(1) in direct-to-consumer channels with retail up 27.2%(1) on same store comp growth of 1
Slide 15: Constant currency net sales growth in all key markets
Constant currency net sales growth in all key markets 3.0% excluding Due to fewer visitors from Tumi and eBags mainland China (1) (2) (3) (1) Hong Kong includes Macau and sales to Tumi distributors in certain Asian countries. (2) Net sales in Germany included all wholesale and ecommerce net sales of
Slide 16: Continued brand penetration drove net sales growth in most emerging markets
Continued brand penetration drove constant currency net sales growth in most emerging markets with combined constant currency growth of 17.8% excluding Tumi (1) (1) Mexico, excluding export sales Page 16
Slide 17: Direct-To-Consumer: Retail outlets expansion in 2017
Direct-To-Consumer Retail outlets expansion in 2017 Samsonite TUMI American Tourister Winnipeg, Canada. May 2017 Elements, Hong Kong. Oct 2017 E-Mart Gayang, Seoul, Korea. Aug 2017 TUMI South Coast Plaza, California, US. Sep 2017 Samsonite RED + Lipault MIXC, Shanghai, China. Sep 2017 TUMI Milan Lin
Slide 18: Direct-To-Consumer: E-Commerce Boost
Direct-To-Consumer E-Commerce Boost Total direct-to-consumer e-commerce +138% in 2017 on a constant currency basis Page 18
Slide 19: Direct-to-consumer channel net sales accelerated with the acquisitions of Tumi and eBags
Direct-to-consumer channel net sales accelerated with the acquisitions of Tumi and eBags(2) 26% Direct- 33% Direct- to-consumer to-consumer Wholesale Retail D-T-C e-Commerce Excluding Tumi, direct-to-consumer net sales growth was 32.1%(1), with: Strong retail net sales growth of 10.1%(1), driven by
Slide 20: Diversified brand portfolio continues to generate strong net sales growth
Diversified brand portfolio continues to generate strong net sales growth Strong growth in Samsonite with net sales up 6.1% on a constant Net Sales growth by brand currency basis: Europe +9.0%(1), North America +5.1%(1), Asia +3.0%(1), and Latin America +21.0%(1). Tumi net sales increased by 12.6%(1
Slide 21: eBags acquisition will accelerate growth in the E-commerce channel
eBags acquisition will accelerate growth in the E-commerce channel and strengthen digital capabilities eBags is a leading online retailer of bags and related accessories for travel, providing consumers with a diverse offering of travel bags and accessories including luggage, backpacks, handbags, bus
Slide 22: Key Product Assortment
Key Product Assortment North American Europe Asia Latin American Page 22
Slide 23: Key Product Assortment
Key Product Assortment North American Europe Asia Latin American Page 23
Slide 24: Key Product Assortment
Key Product Assortment Page 24
Slide 25: Key Product Assortment
Key Product Assortment Page 25
Slide 26: Products designed to appeal to women
Products designed to appeal to women Page 26
Slide 27: All key categories contributed to Net Sales growth
All key categories contributed to Net Sales growth Net Sales growth by product category Travel remained our largest product category and traditional strength with all regions contributing to its growth of 8.4%(1), excluding Tumi. Non-travel net sales increased from 35.3% of total net sales in 2016 t
Slide 28: 43.3% increase in global advertising spend to drive sales growth across brands
43.3% increase in global advertising spend to drive sales growth across brands Indicates % of net sales Total advertising spend increased by US$62.2 million, or 43.3%, including the full year impact of Tumi (7 additional months compared to prior year) and the additional advertising from the acquisit
Slide 29: Targeted Brand Advertising
Targeted Brand Advertising Page 29
Slide 30: Targeted Brand Advertising
Targeted Brand Advertising Page 30
Slide 31: Financial Highlights
Financial Highlights Net sales increased to a record level of US$3,490.9 million, with net sales growth of 23.3%(1). Excluding Tumi operations, strong net sales growth of 10.6%(1). Net sales growth for Tumi operations from August through December was 14.5%(1) compared to the same period in the previ
Slide 32: High Level Bridge of Underlying Growth in Profit Attributable to Equity Holders
High Level Bridge of Underlying Growth in Profit Attributable to Equity Holders +US$24.1 million (1) Change in one-time tax items consists of US$118.8 million U.S. tax reform impact on deferred taxes, US$(7.6) million tax impact of Tumi legal entity reorganization and US$(56.8) million from the non-
Slide 33: One-time tax benefits resulting in a -7.3% effective tax rate
One-time tax benefits resulting in a -7.3% effective tax rate. Operational Effective Tax Rate (ETR) reduced by 150bp. (1) 2016 Operational Effective Tax Rate 27.8% Change in organic profit mix -0.5% Change in reserves, non-deductibles and tax credits -2.0% Change in tax incentives 1.0% 2017 Operatio
Slide 34: Strong Balance Sheet
Strong Balance Sheet Cash flows from operations were US$m December 31, December 31, US$341.3 million, offset by outflows for $ C hg D e c - 17 % C hg D e c - 17 2016 2017 v s . D e c - 16 v s . D e c - 16 capital expenditures of US$94.6 million, the purchase of eBags for US$105.0 Cash and cash equiv
Slide 35: Efficiently managing working capital
Efficiently managing working capital US$m December 31, December 31, $ Chg Dec-17 % Chg Dec-17 2016 (1) 2017 (2) vs. Dec-16 vs. Dec-16 Working capital continued to be managed Working Capital Items efficiently at 12.4% of net sales at December Inventories $ 421.3 $ 583.0 $ 161.7 38.4% Trade and Other
Slide 36: Capital Expenditures
Capital Expenditures 2017 capex includes US$20.4 million for Tumi- related capex, mainly on retail projects, compared to US$7.9 million for the 5 month Capital Expenditure by project type period of Tumi ownership in 2016. US$m 2016 2017 2017 retail capex consisted of new stores and remodels in North
Slide 37: Outlook and Company Strategy
Outlook and Company Strategy According to the United Nations World Tourism Organization (“UNWTO”) World Tourism Barometer, international tourist arrivals grew by 7% in 2017. This growth is expected to continue in 2018 at a rate of 4% to 5%. The Company aims to increase shareholder value through sust
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