Kering Sa · EURONEXT:KER
Kering Sa — Investor Presentation (September 2013)
29 slides from Kering Sa's investor presentation, September 2013
Slide 1: Investor Presentation, London, September 2013
2013I n v e s t o r P r e s e n t a t i o n London September 2013
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer of securities for sale in the United States of America or any other jurisdiction. Certain information contained in this document may include notably projections and forecasts. They express objectives based on current assessments and estimates
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Slide 4: Kering: Empowering Imagination
Kering Empowering Imagination 4 28
Slide 5: Investment Thesis (1/2)
Investment Thesis (1/2) Unique Unique combination of global luxury and premium sports & lifestyle brands, combination enjoying: – Leading positions in their respective segments – Broad consumer appeal as self-fulfillment and indulgence increasingly drive buying decisions – Considerable organic growt
Slide 6: Investment Thesis (2/2)
Investment Thesis (2/2) Strong human values at the core of our success and transformation Human values Value chain Mastering the entire value chain of our brands – Flexible production and distribution infrastructure – Total control over design, development and brand characteristics Financial Financi
Slide 7: Who We are
Who We are Young company celebrating its 50th birthday this year – Longstanding heritage in specialized distribution • Unique expertise in assessing consumer tastes, expanding retail concepts, developing new formats, channels and brands – Entered the Luxury goods universe in 1999 with an initial sta
Slide 8: Our Mission & management principles
Our Mission & management principles Our mission – To empower our brands to reach their full global potential in a sustainable and responsible way • Two coherent product areas: apparel and accessories • Two fast-growing market segments: Luxury Goods and Sport & Lifestyle Our management principles – F
Slide 9: Kering Effect: A better integrated Group
Kering Effect A better integrated Group Strategic joint venture with Yoox in Luxury – Development of monobrand e-commerce sites Sustainable development guidelines Group strategies: human resources, real estate, brand marketing… Shared service centers 9 28
Slide 10: Luxury division: Drivers of future growth and profitability
Luxury division Drivers of future growth and profitability Pertinent multibrand business model: – … Well-rounded ensemble of complementary brands • Designs, manufactures and markets leather goods, shoes, ready-to-wear, jewellery & watches • Highly differentiated positioning between brands, substanti
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Slide 12: Sport & Lifestyle division: Drivers of future growth and profitability
Sport & Lifestyle division Drivers of future growth and profitability Puma – One of the world’s leading Sportlifestyle companies • Designs and develops footwear, apparel and accessories • Sport Performance and Lifestyle labels include categories such as Football, Running, Motorsports and Golf • Prod
Slide 13: The Nature of the Escape Artist
THE NATURE OF THE ESCAPE ARTIST HER FEEESET HER MIND FREE
Slide 14: H1 2013: Solid operating performances in the first half
H1 2013 Solid operating performances in the first half 14 28
Slide 15: Key H1 highlights
Solid operating performances in the first half Key H1 13 highlights Luxury division drives solid Group operating performance – Consolidated revenue up 4% in constant currency terms, accelerating in Q2 (up 5%) – Further improvement in Group’s EBIT margin, reaching 18.0% – Recurring net income, Group
Slide 16: H1 Operating performance overview
Solid operating performances in the first half H1 13 Operating performance overview In €m Revenue Change % Recurring Change % Recurring Operating operating Reported Comp. Income margin % Luxury 3,078 +5.3% +7.9% 790 +8.6% 25.6% Sport & Lifestyle 1,587 -6.3% -3.2% 110 -27.5% 6.9% Corporate & Others 1
Slide 17: Conclusion & Outlook
First-half results Conclusion & Outlook Luxury – Solid demand levels, notably in mature markets – Healthy momentum in operating profitability Sport & Lifestyle – New management focus on brand relaunch – Limited short-term impact H1 underlying trends continuing in H2 17 28
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Slide 19: Appendix: H1 2013 key figures
Appendix H1 2013 key figures 19 28
Slide 20: H1 revenue
H1 13 revenue Reported Change In €m H1 13 H1 12 €m % Gucci 1,754.8 1,727.8 27.0 1.6% Bottega Veneta 465.6 429.5 36.1 8.4% Saint Laurent 255.3 223.5 31.8 14.2% Other brands 602.7 543.7 59.0 10.9% Luxury division 3,078.4 2,924.5 153.9 5.3% Puma 1,473.9 1,573.8 (99.9) -6.3% Other brands 113.0 120.2 (7.
Slide 21: H1 recurring operating income
H1 13 recurring operating income Reported Change In €m H1 13 H1 12 €m % Gucci 556.0 521.0 35.0 +6.7% Bottega Veneta 146.5 129.9 16.6 +12.8% Saint Laurent 27.2 24.7 2.5 +10.1% Other brands 59.8 51.5 8.3 +16.1% Luxury division 789.5 727.1 62.4 +8.6% Puma 109.8 148.8 (39.0) -26.2% Other brands 0.0 2.6
Slide 22: H1 operating performance
H1 13 operating performance In €m CONTINUING OPERATIONS H1 13 H1 12 Revenue 4,678 4,614 Gross profit 2,925 2,849 Gross profit margin 62.5% 61.8% Recurring operating income 843 824 Recurring operating income margin 18.0% 17.9% EBITDA 983 956 EBITDA margin 21.0% 20.7% 22 28
Slide 23: H1 financial performance
H1 13 financial performance In €m H1 13 H1 12 Recurring operating income 843 824 +2.3% Other non-recurring operating income and expenses (25) (24) Financial charges (97) (101) Corporate income tax (138) (168) Income from equity affiliates (1) 35 Net income from discontinued operations (388) (61) Con
Slide 24: H1 free cash flow from operations
H1 13 free cash flow from operations In €m H1 13 H1 12 Cash flow before taxes, dividends and interest 913 941 Change in working capital requirement (before taxes) (149) (265) Corporate income tax paid (165) (180) Net cash flow from operating activities 599 496 Net acquisition of fixed operating asse
Slide 25: FY 2012 Solvency
FY 2012 Solvency 4 3.95 6,700 3.9 3.85 3.8 3.75 3.7 3.65 In €m 3.6 3.55 3.5 3.45 NFD NFD/EBITDA 3.4 3.35 5,700 5,510 3.3 3.25 3.2 3.15 3.1 3.05 3 2.95 2.9 2.85 2.8 2.75 4,700 4,367 2.7 2.65 2.6 2.55 2.5 2.45 2.57 2.4 2.35 2.44 3,781 2.3 2.25 3,700 2.2 2.15 3,396 2.1 2.05 2 1.95 2.03 1.9 1.85 1.8 1.7
Slide 26: FY 2012 Liquidity
FY 2012 Liquidity In €m 4,024 NFD 2,492 M€ 993 822 777 360 26 (486) Confirmed 2013* 2014** 2015** 2016** 2017** beyond** undrawn credit lines 26 * Gross debt minus cash & cash equivalents and financing of customer loans 28 ** Gross debt
Slide 27: Kering Heritage
Kering Heritage 1999 42% stake in Gucci Group 2000 Acquisition of Boucheron 2001 Acquisition of Bottega Veneta, Balenciaga, Stella McCartney and Alexander McQueen 2002 Disposal of Guilbert ‘mail order activity’, Finaref and Facet (credit subs) 2003 Disposal of Pinault Bois & Matériaux and Guilbert ‘
Slide 28: Kering Financial Communications Team
Contacts Kering Financial Communications Team Edouard CROWLEY +33 (0) 1 45 64 63 28 edouard.crowley@kering.com 28 28
Slide 29: Kering brand portfolio
GUCCI · BOTTEGA VENETA · YVES SAINT LAURENT · ALEXANDER McQUEEN BALENCIAGA · BRIONI · CHRISTOPHER KANE · McQ · STELLA McCARTNEY · SERGIO ROSSI · BOUCHERON · DODO · GIRARD-PERREGAUX · JEANRICHARD · POMELLATO · QEELIN PUMA · VOLCOM · COBRA · ELECTRIC · TRETORN