Samsonite Group S.a. · HKEX:1910
Samsonite — Samsonite International — H1 2018 Earnings Presentation
25 slides from Samsonite's earnings presentation, Aug 29, 2018
Slide 1: Interim Results 2018
Sams@nite WE CARRY THE WORLD INTERIM RESULTS 2018 AUGUST 29, 2018 Samsonite International S.A. Stock Code 1910
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 Strategy Q&A Page 3
Slide 4: 1st Half 2018 Results Highlights
1st Half 2018 Results Highlights Record 1st Half Net Sales of US$1.85 billion +12.9% +15.0% +11.0% 15.6% Constant Constant Constant Constant Currency Currency Currency Currency Growth Growth Growth Growth Sales growth of US$262.6 Gross margin was up 120bp Adjusted EBITDA margin Adjusted Net Income w
Slide 5: Strong organic net sales growth
Strong organic net sales growth 1H 2018 12.9% 9.9% 17.1% 5-year CAGR on total net sales 9.4% 5-year CAGR on organic net sales Notes: - Organic excludes impact of High Sierra, Hartmann, Gregory, Lipault, Speck, Tumi and eBags. Does include Rolling Luggage, Chic Accent and other small channel acquisit
Slide 6: 1st Half 2018 Business Overview
1st Half 2018 Business Overview Strong Strong constant currency net sales growth in all Advertising and promotion spend growth in all regions: of US$114.3 million (6.2% of sales) regions North America: +12.4% (+5.1% excluding eBags(1)) is 14.9%, or US$14.8 million, higher Asia: +14.4% than 1H 2017 s
Slide 7: Strong net sales growth
Strong net sales growth Net Sales Bridge – 1H 2017 to 1H 2018 Excluding Tumi brand and four additional months of eBags in 2018, net sales growth was US$108.9 million(1), or 8.4%(1), coming +16.6%(1) +8.4%(1) from: Asia: +10.5%(1) North America: +4.1%(1)(2) Europe: +11.7%(1) Latin America: +15.9%(1)
Slide 8: North America – Net sales increased by 12.4%
North America – Net sales increased by 12.4%(1) (5.1%(1)(2) excluding eBags) with higher Adjusted EBITDA margin. Net Sales by Channel: Net sales growth in the Wholesale channel of 2.3% (1)(2). Direct-to-consumer net sales growth of 31.0%(1) (10.2%(1) excluding eBags) was driven by: E-commerce net sa
Slide 9: Asia – Net sales increased by 14.4%, led by Hong Kong
Asia – Net sales increased by 14.4%(1), led by Hong Kong(4), China, Japan and India. Net Sales by Channel: Net sales growth of 10.3%(1) in the Wholesale channel. Net sales growth of 32.8%(1) in the Direct-to-consumer channel is partly due to the full half impact of taking direct control of Tumi dist
Slide 10: Europe – Net sales increased by US$67.5 million, or 11.4%
Europe – Net sales increased by US$67.5 million, or 11.4%(1), including 49.5%(1) growth in the American Tourister brand. Net Sales by Channel: Net sales growth of 11.0%(1) in the Wholesale channel. 12.1%(1) net sales growth in the Direct-to-consumer channel is driven by: Retail net sales growth of 1
Slide 11: Latin America – Net sales increased by US$14.7 million, or 7.0%
Latin America – Net sales increased by US$14.7 million, or 17.0%(1), led by Mexico, Brazil and Argentina. Net Sales by Channel: Wholesale channel net sales growth of 18.1%(1). Net sales growth of 15.4%(1) in the Direct-to-consumer channel driven by: Retail net sales growth of 13.4%(1) with same stor
Slide 12: Constant currency net sales growth in most key markets
Constant currency net sales growth in most key markets(4) 4.8%(5) excluding eBags (1) (2) (2) (2) (2) (2) (3) (1) Hong Kong includes net sales made in Macau and net sales to Tumi distributors in certain other Asian markets. (2) In integrating the Tumi business into the pre-existing European business
Slide 13: Continued brand penetration drove growth in all emerging markets
Continued brand penetration drove constant currency net sales growth in all emerging markets with combined constant currency growth of 27.8%(2) (1) (1) (1) (1) In integrating the Tumi business into the pre-existing European business, there have been changes made to the legal entity in which sales ar
Slide 14: Direct-to-consumer channel sales are a growing proportion of total sales
Direct-to-consumer channel sales are a growing proportion of total sales (2) Net Sales growth by channel Direct-to-consumer net sales increased from 30.2% of total net sales in 1H 2017 to 33.6% of total net sales in 1H 2018. Direct-to-consumer net sales growth was 25.7%(1), with: Retail net sales gr
Slide 15: Strong net sales growth in all key brands
Strong net sales growth in all key brands 5.0%(1) net sales growth in Samsonite with Europe +5.5%(1), Net Sales growth by brand North America +4.0%(1), Asia +3.9%(1), and Latin America +18.9%(1). Tumi net sales growth of 16.6%(1) with North America +8.2%(1), Asia +39.4%(1) and Europe +9.2%(1). Ameri
Slide 16: All regions contributing to strong Tumi brand growth of 16.6%
All regions contributing to strong Tumi brand net sales growth of 16.6%(1) Net sales growth of 8.2%(1) driven mainly by the Direct-to- Strong net sales growth of 39.4%(1) coming from all Net sales growth of 9.2%(1) driven mainly by direct-to- consumer channel with E-commerce +18.4%(1) and Retail cha
Slide 17: Exciting New Products
Exciting New Products Samsonite Tumi Samsonite Latitude ECOGlide Kevlar Lipault Plume Avenue American Tourister Curio/Soundbox Page 17
Slide 18: Advertising spend as a percentage of net sales was consistent with prior year
Advertising spend as a percentage of net sales was consistent with prior year. Indicates % of net sales Total advertising spend increased by US$14.8 million, or 14.9%, focused mainly on boosting consumer awareness of the Tumi and American Tourister brands and non-travel categories for the Samsonite
Slide 19: Targeted Brand Advertising: American Tourister Global Campaign
Targeted Brand Advertising American Tourister Global Campaign Global American Tourister “Bring Back More” advertising campaign, featuring Cristiano Ronaldo, has been popular and effective, helping to generate the brand’s constant currency net sales growth of 24.2%. Page 19
Slide 20: Financial Highlights
Financial Highlights Net sales increased to a record 1st half level of US$1.85 billion, with net sales growth of 12.9%(1), or 9.9%(1) excluding eBags that was acquired in May 2017. Tumi brand growth of 16.6%(1) and growth excluding Tumi of 12.1%(1) Adjusted Net Income increased by US$19.6 million, o
Slide 21: Excluding the non-cash write-off, profit attributable to equity holders increased
Excluding the non-cash write-off of deferred financing costs, profit attributable to equity holders increased by US$24.0 million, or 28.8% from strong operating income. +28.8% +17.2% 1H 2017 included acquisition costs associated with the eBags acquisition and Tumi distributor buybacks in Asia. US$53
Slide 22: Balance sheet
Balance sheet US$m June 30, December 31, June 30, $ C hg J un- 18 % C hg J un- 18 Net debt decreased by US$20.7 million in 2017 2017 2018 v s . J un- 17 v s . J un- 17 the first half of 2018. Cash flows from Cash and cash equivalents 377.8 344.5 395.4 17.5 4.6% operations were US$56.2 million offset
Slide 23: Working Capital
Working Capital US$m June 30, June 30,(1) $ Chg Jun-18 % Chg Jun-18 Working capital efficiency of 14.0% at June 30, 2017 2018 vs. Jun-17 vs. Jun-17 2018, continues to be within the targeted range. Working Capital Items Inventory turnover of 140 days as of June 30, Inventories $ 485.2 $ 624.2 $ 139.0
Slide 24: Capital Expenditures
Capital Expenditures Capital Expenditure by project type 1H 2018 retail capex consisted of new stores and remodels in Europe of US$7.8 million, Asia US$m 1H 2017 1H 2018 of US$7.4 million, North America of US$5.5 million and Latin America of US$1.7 million. Retail 16.5 22.6 Capex on Product Developm
Slide 25: Outlook and Company Strategy
Outlook and Company Strategy “International tourist arrivals grew 6% in the first four months of 2018, compared to the same period last year, not only continuing the strong 2017 trend, but exceeding UNWTO’s forecast for 2018. Growth was led by Asia and the Pacific (+8%) and Europe (+7%). Africa (+6%
Samsonite International — H1 2018 Earnings Presentation on 6ix