Piquadro S.p.a · MIL:PQ
Piquadro — Investor Presentation (September 2018)
33 slides from Piquadro's investor presentation, September 2018
Slide 1: Introducing Piquadro Group
INTRODUCING PIQUADRO GROUP September 2018
Slide 2: Group Facts
GROUP FACTS € 97.6 million turnover in FY 2017-18 (March 2018)* € 4.8 million Net Profit (March 2018)* 185 mono brand stores : 100 Piquadro, 15 The Bridge, 70 Lancel. 76 in Italy, 109 abroad ; 127 DOS (56 under Piquadro brand, 9 under The Bridge and 62 under Lancel) and 58 franchisee; 1.194 employee
Slide 3: FY 2018 Sales
FY 2018 SALES € 97.6 mln : +28.6% vs previous year* • Piquadro: € 73.9 mln + 4.3% DOS Piquadro € 30.3 mln +6.7% (lfl +3.3%; e-commerce € 3.0 mln +19.7%) WHS Piquadro € 43.6 mln +2.7% • Italy +3.8% • Europe +13.3% (driven by Russia +21.9%; Germany +23.4%; Spain +16.3%) • The Bridge: € 23. 14. 2% vs.
Slide 4: FY 2018 Profitability
FY 2018 PROFITABILITY* EBITDA € 10.8 mln, mln, +22.6% vs previous year - EBITDA DOS Piquadro € 2.2 mln +30.9% recurring (driven by +6.7% sales; lfl +3.3%; e-commerce sales +19.7%) - EBITDA WHS Piquadro € 7.0 mln +30.9% - EBITDA The Bridge € 1.6 mln EBIT € 7.9 mln: mln: +38.4% vs previous year - EBIT
Slide 5: Three Brands
THREE BRANDS THE BRIDGE LANCEL =) PIAA ERS FIRENZE 1969
Slide 6: Brand Positioning
BRAND POSITIONING RIMOWA travel Sams@nite @ vetsev luxury ~~? HERMES PRADA MONT Labathna Femagaune BLANC BURBERRY COA lifestyle TED BAKER KENNETH COLE mid-end
Slide 7: Piquadro Brand
PIQUADRO BRAND Piquadro is an Italian leather brand of tech- design accessories for business travelers. The ‘Tech inside concept’ - combined with the values of innovative design and precious materials – is what makes Piquadro unique. 7
Slide 8: Piquadro in the World
PIQUADRO IN THE WORLD Rome, Milan, Venice, Florence, London, New York, Barcelona, Moscow, Prague, Taipei, Hong Kong 8
Slide 9: Piquadro Retail Channel
PIQUADRO RETAIL CHANNEL Italy – Full Price Stores World – Full Price Stores Milan, Via Della Spiga Bologna, P.zza Maggiore New York, USA, Madison Av. Milan, Via Dante 9 Bologna, Marconi Airport NEW York, USA PoP Up Store Milan, C.so Buenos Aires Florence, Via Calimala London, London UK, Regent Stree
Slide 10: Innovation Through Bagmotic
INNOVATION THROUGH BAGMOTIC Piquadro embraces the philosophy of the Internet of Things. BAGMOTIC is a sort of bag automation that makes it possible to be connected to your bag thanks to the Connequ App by Piquadro. BAGMOTIC is the evolution of the Piquadro heritage concept of 10 TECH INSIDE .
Slide 11: Innovation Through Bagmotic
INNOVATION THROUGH BAGMOTIC Piquadro products, equipped with BAGMOTIC technology, can communicate with you because they are connected via Bluetooth to your smartphone and/or smartwatch through the Connequ app available at the App Store and Play Store. 11
Slide 12: Innovation Through Bagmotic
INNOVATION THROUGH BAGMOTIC Bagmotic allows you to: trace and find your Piquadro accessories from luggage to key holder recharge your smartphone inside your Piquadro bag or trolley weigh your Piquadro trolley lock and unlock your Piquadro trolley through your smartphone know the level of air polluti
Slide 13: Piquadro at a Glance
PIQUADRO AT A GLANCE Sales: €73.9 mln + 4.3% vs. comparable period (2017/18 vs. 2016/17). DOS like for like +3.3%. DOS represents now 41.0% sales. 704 employees; 226 in DOS and 337 in Chinese factory Iconic products : 51% of turnover (60% in DOS) EBITDA 12.5% on Net Sales 42 Full Price Stores (Italy
Slide 14: The Bridge Brand
THE BRIDGE BRAND The Bridge is a Florentine leather brand with a 50 year long history of skilled craftsmanship and superior quality materials for a worldly- worldly-wise elegance and a bohemian style 14
Slide 15: The Bridge: The Big Opportunity
THE BRIDGE: THE BIG OPPORTUNITY The Bridge is an Italian brand with a strong identity, deeply rooted in Tuscany and tied for the past 50 years to the finest artisan workmanship and vegetable- vegetable-tanned leather. The challenge today is introducing a modern reinterpretation of those products wit
Slide 16: The Bridge Strong Points
THE BRIDGE STRONG POINTS 50 years heritage brand from Tuscany Precious leather and highly recognizable style Iconic eco- eco -sustainable luxury artisan workmanship Different from industrial competitors such as Michael Kors, Coach , Furla Access to large premium woman bags market through diversity 1
Slide 17: The Bridge in the World
THE BRIDGE IN THE WORLD Florence – Milan – Turin – Venice Berlin (Kadewe) – Munich (Benno Marstaller) Wien (World of Mozart)– – Salzburg (Kiechtag) Zurich (Jelmoli) –Dublin (Wier & Sons) Seoul (Shinsegae Starfield Hanam Mall; Galleria Dept Store) – Hong Kong (Canton Road) Tainan City (Mitsukoshi) –
Slide 18: The Bridge Retail Channel
THE BRIDGE RETAIL CHANNEL Italy – Full Price Stores Milan, Via Landolfo Turin, Turin Via Lagrange Bari, Bari Via Argiro Italy – Outlet Stores Fidenza (Pr), outlet Marcianise (Ce), outlet Serravalle (Al), (Al) outlet Agira (En), outlet Castel Romano (Rome), outlet DOS Sales March 2018 @ 7.2 mln € ; S
Slide 19: The Bridge at a Glance
THE BRIDGE AT A GLANCE Sales: €23,7 mln + 14,2% vs. comparable period (2017/18 vs. 2016/17). DOS like for like +34,7%. DOS represents now 30,3% sales. 101 employees; 33 in DOS 45% woman bags; 25% man bags; 30% SLG The Bridge is now a profitable company (break-even after just 3 months operation) EBIT
Slide 20: Maison Lancel
MAISON LANCEL Lancel is a Parisian Maison of Haute Maroquinerie with 140 years of legacy and savoir- savoir-faire. Colorful and joyful, the creations are a mix of contemporary timelessness and daring imagination. An authentic Parisian brand to delight every moment of life. 20
Slide 21: The Acquisition
THE ACQUISITION On June, 2 2018 Piquadro purchased Maison Lancel from Richemont International. Price of acquisition: an earn-out on Net Profit (20%) for 10 years from Closing and limited to €35 mln. At Closing Lancel has a cash positive net financial position of c. € 41 mln; a significantly reduced
Slide 22: Maison Lancel: A Great Challenge
MAISON LANCEL: A GREAT CHALLENGE Lancel is a French brand with a 140 years’ history of authentically Parisienne chic. Its collections have marked the evolution of women’s bags through iconic and timeless products. The challenge is to bring back Maison Lancel’s allure through trendier and younger col
Slide 23: Lancel at a Glance
LANCEL AT A GLANCE Sales approx. € 51 mln out of which 85% trough DOS mainly located in France (58 out of 62); EMPLOYEE EBITDA negative on FY18 equal approx. to € 23 mln Lancel operates a network of 62 DOS and 8 franchisees. DOS : 55 Full Price Stores (France) 7 Outlet Stores (France 3, Europe 3, Ro
Slide 24: Financial Highlights
FINANCIAL HIGH- LIGHTS *FY March ‘18 doesn’t include Lancel figures ( acquisition June 2nd 2018) 24
Slide 25: Income Statement
INCOME STATEMENT (€mln) Net Sales % growth Other revenues Material costs Service costs Personnel costs Other operating expenses EBITDA Margin (% of net sales) Depreciation EBIT Margin (% of net sales) Net interest income(exp.) EBT Margin (% of net sales) Taxes Net Income(loss) before minorities Marg
Slide 26: Income Statement 12 Months
INCOME STATEMENT 12 MONTHS (ENDING MARCH 31st) *EBITDA, EBIT and Net Income at March,31 2017 was affected by the positive effect relating to the disposal of the point of 26 sale located at Paris
Slide 27: Summary Balance Sheet
FY Ending March 31 (€mlIn) 2016A 2017A 2018A Net Working Capital 263 2611 25.4 Net Tangible Assets 12.6 127 11 Net Intangible Assets 4] 8.4 85 Net Financial Assets 19 3.0 3.0 Several Staff, Provisions & Others (1.4) (3.7) (4.0) Net Capital Employed 435 465 44.0 Group Shareholders’ Equity 36.9 38.4 4
Slide 28: Lean Capital Structure
LEAN CAPITAL STRUCTURE NET FINANCIAL DEBT (€mln) As of March 31 2016A 2017A 2018A Short-term Net Debt 8.5 6.4 14.3 Long-term Net Debt 8.4 17.1 13.0 Cash & Cash Equivalents (10.2) (15.3) (23.6) Net Debt 6.7 8.2 3.7 RATIO - NET FINANCIAL DEBT (€m) As of March 31 2016A 2017A 2018A Net Debt/EBITDA 0.81
Slide 29: FY 2018 Net Debt
FY 2018 NET DEBT NET DEBT as March 2017: €8,2 mln - Operating Cash Flow €9.9 mln - NWC and releted effects -€1.6 mln - Net Capex - € 1.7 mln - Dividends -€ 2,0 mln NET DEBT as March 2018 : €3.7 mln 29
Slide 30: Investment Values
INVESTMENT VALUES Net Profit generated in the last 3 years* € 12.1 mln Net Profit generated in the last 3 years* € 12.1 mln Dividends paid in the last 3 years equal to * * €7.0 Dividends paid in the last 3 years equal to * * €7.0 mln ml Investments of the last 3 years*€10.5 mln Investments effected
Slide 31: Q1 2018/19 Flash on Sales
Q1 2018/19 FLASH ON SALES €24.3 mln: mln: +26.9% vs comparable period Piquadro: €15.0 mln, mln, +3,0% Wholesale + 6,0% driven by Italy + 1,9% and Europe + 27,7% The Bridge: €5,3 mln, mln, +14.9% Wholesale +15.5% driven by Europe +63.2% - DOS +13.1% driven by Retail +11.9% (lfl +7%) and e- commerce +
Slide 32: Q1 2018/19 Net Debt
Q1 2018/19 NET DEBT (€mln) June 17 March 18 June 18 Short-term Net Debt 9.3 14.3 13.2 Long-term Net Debt 17.5 13.0 46.8 Cash & Cash Equivalents (15.4) (23.6) (58.8) Net Debt 11.4 3.7 1.2 NFP June 2018 : improvement of €10.1 mln vs June 2017 - €4.5 mln operating performance of Piquadro and The Bridge
Slide 33: Thank You!
i guild! & peer t Tr [it —_ i mle By] —) artes’ THANK YOU !