Kering Sa · EURONEXT:KER
Kering Sa — PPR — FY2012 Earnings Presentation
40 slides from Kering Sa's earnings presentation, Feb 15, 2013
Slide 1: 2012 Full Year Results
2012 FULL YEAR RESULTS February 15. 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
Slide 3: An excellent year for the PPR Group
2012 annual results An excellent year for the PPR Group Growth, profitability and accelerated transformation Jean-François Palus Group Managing Director 2012 annual results 3
Slide 4: In 2012 PPR sped up the pace of its transformation
In 2012 PPR sped up the pace of its transformation into a high-growth, high-margin Group Excellent operating and financial performances Group consolidated revenue up 21% in reported terms Recurring net income, Group share: +28% Net debt / EBITDA ratio down to 1.2x Strategic transformation
Slide 5: Outstanding performance of the Luxury division drives strong results
Outstanding performance of the Luxury division drives strong results Another year of strong growth in revenue and results for the Luxury brands in €m Revenue Change Recurring Change Recurring Reported Comp. Operating operating Income margin Luxury 6,212 +26.3% +15.1% 1,612 +27.6% 25.9% Sport & Lif
Slide 6: Analysis of FY 2012 results
2012 annual results Analysis of FY 2012 results Jean-Marc Duplaix Chief Financial Officer 2012 annual results 6
Slide 7: Operating performance
Operating performance In €m CONTINUING OPERATIONS 2012 2011 Change Revenue 9,736 8,062 +20.8% Gross profit 5,960 4,976 +19.8% Gross profit margin 61.2% 61.7% Recurring operating income 1,792 1,501 +19.3% Recurring operating income margin 18.4% 18.6% EBITDA 2,067 1,739 +18.8% EBITDA margin 21.2% 21.6
Slide 8: Luxury division: revenue +15.1% comparable
2012 revenue: +15.1% comparable EBIT margin: +20bps Luxury division In €m 2012 Change Quarterly revenue performance Revenue 6,212 +26.3% +17.8% +17.4% +11.9% +13.9% Recurring operating income 1,612 +27.6% 1,695 1,593 Recurring operating income margin 25.9% +20bps 1,458 1,467 EBITDA 1,815 +26.6% EBIT
Slide 9: Gucci: revenue +9.1% comparable
2012 revenue: +9.1% comparable EBIT margin: +80bps In €m 2012 Change Quarterly revenue performance Revenue 3,639 +15.8% +11.6% +10.0% +7.0% +8.2% Recurring operating income 1,126 +18.9% 996 31.0% +80bps 880 915 Recurring operating income margin 848 EBITDA 1,260 +17.7% EBITDA margin 34.6% +50bps Gros
Slide 10: Bottega Veneta: revenue +30.4% comparable
2012 revenue: +30.4% comparable EBIT margin: +180bps In €m 2012 Change Quarterly revenue performance Revenue 945 +38.5% +33.0% +37.4% +20.6% +32.7% Recurring operating income 300 +46.7% 274 Recurring operating income margin 31.8% +180bps 242 218 212 EBITDA 321 +45.6% EBITDA margin 33.9% +160bps Gros
Slide 11: Yves Saint Laurent: revenue +28.8% comparable
2012 revenue: +28.8% comparable EBIT margin: +210bps In €m 2012 Change Quarterly revenue performance Revenue 473 +33.7% +40.1% +42.1% +26.7% +12.5% Recurring operating income 65 +58.9% 130 Recurring operating income margin 13.7% +210bps 115 119 109 EBITDA 76 +51.0% EBITDA margin 16.0% +180bps Gross
Slide 12: Other Luxury brands: revenue +19.0% comparable
2012 revenue: +19.0% comparable Other Luxury EBIT margin: +100bps brands In €m 2012 Change Quarterly revenue performance Revenue 1,156 +56.7% +20.0% +21.3% +15.5% +19.9% Recurring operating income 120 +73.1% 307 305 Recurring operating income margin 10.4% +100bps 283 261 EBITDA 159 +71.3% EBITDA mar
Slide 13: Sport & Lifestyle division: revenue +3.3% comparable
2012 revenue: +3.3% comparable Sport & Lifestyle EBIT margin: -240bps division In €m 2012 Change Quarterly revenue performance Revenue 3,532 +11.9% +2.8% +5.3% -1.2% +7.6% Recurring operating income 305 -12.1% 970 887 868 Recurring operating income margin 8.6% -240bps 807 EBITDA 371 -9.0% EBITDA mar
Slide 14: Puma: revenue +3.9% comparable
2012 revenue: +3.9% comparable EBIT margin: -220bps In €m 2012 Change Quarterly revenue performance Revenue 3,271 +8.7% +3.1% +4.8% +0.0% +8.7% 290 -13.0% 892 Recurring operating income 821 805 8.9% -220bps 753 Recurring operating income margin EBITDA 350 -10.5% EBITDA margin 10.7% -230bps Gross cap
Slide 15: Financial performance
Financial performance In €m 2012 2011 Change Recurring operating income 1,792 1,501 +19.3% Other non-recurring operating income and expenses (25) (24) Financial charges (148) (202) Corporate income tax (298) (295) Income from equity affiliates 37 47 Net income from discontinued operations (276) 19 C
Slide 16: Free cash flow from operations
Free cash flow from operations In €m 2012 2011 Cash flow before taxes, dividends and interest 2,001 1,696 Change in working capital requirement (before taxes) (273) (181) Coprorate income tax paid (362) (336) Net cash flow from operating activities 1,366 1,179 Acquisition of fixed operating assets (
Slide 17: Net financial indebtedness
Net financial indebtedness In €m Net indebtedness at December 31, 2011 3,396 Free cash flow from operations (930) Net interest paid and dividend received 162 Dividends paid 473 Purchases of PPR shares 15 Purchases of Puma shares 120 Other disposals & acquisitions (653) Other (91) Net indebtedness at
Slide 18: Dividend
Dividend Dividend* per share (cash dividend, excl. Fnac shares to be distributed*) 3.75 + 7.1% In € + 6.1% 3.50 3.50 3.30 3.30 2008 2009 2010 2011 2012* Dividend payout 63.2% 61.6% 58.6% 59.8% 52.9% 47.7% 48.3% 47.6% 41.8% 37.3% 2008** 2009** 2010** 2011** 2012* % of recurring net income, Group shar
Slide 19: Fnac in 2012
Fnac in 2012 Alexandre Bompard Chief Executive Officer
Slide 20: 2012 performance underscores pertinence of Fnac's 2015 transformation plan
2012 performance underscores pertinence of Fnac’s 2015 transformation plan Kids Home & Design In €m 2012 Change Revenue 4,061 -2.5% Recurring operating income 79 -22.7% Recurring operating income margin 2.0% -50bps Melun EBITDA 144 -17.1% EBITDA margin 3.5% -70bps Gross capex 87 +18.6% Resilient s
Slide 21: Strategy and outlook
2012 annual results Strategy and outlook François-Henri Pinault Chairman & CEO 2012 annual results 21
Slide 22: Luxury division: Strategy overview
Luxury division: Strategy overview Pertinent multibrand model Well-rounded ensemble of complementary brands Highly differentiated positioning Substantial organic growth potential Targeted bolt-on acquisitions 2012 annual results 22
Slide 23: Sport & Lifestyle division: Strategy overview
Sport & Lifestyle division: Strategy overview Targeted positioning and organic growth potential Early synergies taking shape Volcom sneakers Development of Tretorn and Electric brands Energetic action plan at Puma Building a new leadership team Renovated product assortment Revamped o
Slide 24: PPR Effect: a better integrated Group
PPR Effect: a better integrated Group, nurturing the growth of all our brands 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 201
Slide 25: Conclusion & Outlook
Conclusion & Outlook Solid fundamentals Aligned with consumer aspirations driving today’s buying decisions Powerful brands and flexible business models Confidence for 2013 Another year of solid progression in revenue and profits 2012 annual results 25
Slide 26: Appendix
2012 annual results Appendix 2012 annual results 26
Slide 27: 2012 Revenue
2012 Revenue Change In €m 2012 2011 €m % Gucci 3,638.8 3,143.2 495.6 + 15.8% Bottega Veneta 945.1 682.6 262.5 + 38.5% Yves Saint Laurent 472.8 353.7 119.1 + 33.7% Other brands 1,155.6 737.5 418.1 + 56.7% Luxury 6,212.3 4,917.0 1 295.3 + 26.3% Puma 3,270.7 3,009.0 261.7 + 8.7% Other brands 261.2 146.
Slide 28: Luxury division Q4 2012 revenue
Q4 2012 revenue: EUR 1,695 M Luxury +13.9% comparable; +21.2% reported division X%: Comparable growth +15% +28% €1,695m +14% +4% +15% €1,398m Q4 2011 Western Europe North America Japan Asia Pacific Other Countries Q4 2012 % of Q4 12 sales 29% 20% 13% 31% 7% 315 Number of directly operated stores 245
Slide 29: Gucci Q4 2012 revenue
Q4 2012 revenue: EUR 996 M +8.2% comparable; +12.4% reported X%: Comparable growth +13% €996m +5% +14% +0% +11% €887m Q4 2011 Western Europe North America Japan Asia Pacific Other Countries Q4 2012 % of Q4 12 sales 25% 22% 12% 35% 6% Number of directly operated stores 166 141 97 100 91 Year end 2011
Slide 30: Bottega Veneta Q4 2012 revenue
Q4 2012 revenue: EUR 274 M +32.7% comparable; +37.1% reported +46% +66% €274m X%: Comparable growth +19% +9% +37% €200m Q4 2011 Western Europe North America Japan Asia Pacific Other Countries Q4 2012 % of Q4 12 sales 26% 14% 16% 39% 5% Number of directly operated stores 76 59 54 55 39 Year end 2011:
Slide 31: Yves Saint Laurent Q4 2012 revenue
Q4 2012 revenue: EUR 119 M +12.5% comparable; +15.5% reported X%: Comparable growth +70% +8% €119m €103m -4% -3% +34% Q4 2011 Western Europe North America Japan Asia Pacific Other Countries Q4 2012 % of Q4 12 sales 35% 23% 9% 25% 8% Number of directly operated stores 31 26 26 27 22 20 Year end 2011:
Slide 32: Other Luxury brands Q4 2012 revenue
Q4 2012 revenue: EUR 305 M Other Luxury +19.9% comparable; +46.2% reported brands X%: Comparable growth +58% €305m +7% +12% +18% +19% €209m Q4 2011 Western Europe North America Japan Asia Pacific Other Countries Q4 2012 % of Q4 12 sales 41% 19% 12% 16% 12% Number of directly operated stores 94 83 78
Slide 33: Sport & Lifestyle division Q4 2012 revenue
Sport & Q4 2012 revenue: EUR 868 M Lifestyle +7.6% comparable; +10.6% reported division +5% €868m X%: Comparable growth +10% +14% +8% €785m +4% Q4 2011 Western Europe North America Japan Asia Pacific Other Countries Q4 2012 % of Q4 12 sales 23% 24% 15% 15% 23% Of which Other brands: €64m. -4.8% co
Slide 34: Puma Q4 2012 revenue
Q4 2012 revenue: EUR 805 M +8.7% comparable; +11.7% reported X%: Comparable growth +5% €805m +10% +15% +12% €721m +5% Q4 2011 Western Europe North America Japan Asia Pacific Other Countries Q4 2012 % of Q4 12 sales 24% 22% 15% 15% 24% 2012 annual results 34
Slide 35: 2012 Recurring operating income
2012 Recurring operating income Change In €m 2012 2011 €m % Gucci 1,126.4 947.7 178.7 + 18.9% Bottega Veneta 300.1 204.6 95.5 + 46.7% Yves Saint Laurent 65.0 40.9 24.1 + 58.9% Other brands 120.1 69.4 50.7 + 73.1% Luxury 1,611.6 1,262.6 349.0 + 27.6% Puma 290.0 333.2 (43.2) - 13.0% Other brands 14.8
Slide 36: 2012 EBITDA
2012 EBITDA Change In €m 2012 2011 €m % Gucci 1,260.3 1,071.2 189.1 + 17.7% Bottega Veneta 320.6 220.2 100.4 + 45.6% Yves Saint Laurent 75.8 50.2 25.6 + 51.0% Other brands 158.6 92.6 66.0 + 71.3% Luxury 1,815.3 1,434.2 381.1 + 26.6% Puma 350.3 391.4 (41.1) - 10.5% Other brands 20.5 16.0 4.5 + 28.1%
Slide 37: Financial charges and Income tax
Financial charges Income tax In €m 2012 2011 Cost of net indebtedness (212) (210) Other financial charges (net) 64 8 Financial charges (net) (148) (202) In €m 2012 2011 Current tax (expense) / Income (360) (297) Tax on on-current items 62 2 Total tax (298) (295) Effective tax rate 18.4% 23.1% Curren
Slide 38: Condensed consolidated balance sheet
Condensed consolidated balance sheet In €m 2012 2011 Goodwill, brands & other intangible assets - Net 14,361 14,546 Other net non-current assets (467) 115 Net current assets 757 278 Provisions (365) (364) CAPITAL EMPLOYED 14,286 14,575 Net asset held for sale 325 570 SHAREHOLDERS’ EQUITY 12,119 11,7
Slide 39: Solvency
Solvency 4 3,95 In €m 6 700 3,9 3,85 3,8 3,75 3,7 3,65 3,6 3,55 3,5 3,45 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 4,367 2,8 2,75 4 700 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 1,75 1,7 1,65 2 700 1.78 2
Slide 40: Liquidity
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 * Gross debt minus cash & cash equivalents and financing of customer loans ** Gross debt 2012 annual results 40