Kering Sa · EURONEXT:KER
Kering Sa — Investor Presentation (November 2015)
46 slides from Kering Sa's investor presentation, November 2015
Slide 1: Investor Presentation November 2015
2015I n v e s t o r P r e s e n t a t i o n November 2015
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 projections and forecasts. They express objectives based on current assessments and estimates of the
Slide 3: 3
3
Slide 4: Kering: Empowering Premium Brands
Investor Presentation Kering Empowering Premium Brands 4
Slide 5: Empowering premium brands
Investor Presentation Empowering premium brands A world leader in apparel and accessories, developing an ensemble of powerful brands Kering Luxury Kering Sport & Lifestyle 5
Slide 6: FY 2014 overview
Investor Presentation FY 2014 overview CONSOLIDATED RECURRING OPERATING RECURRING OPERATING REVENUE INCOME MARGIN €10bn €1.6bn 16.6% BREAKDOWN OF REVENUE BREAKDOWN OF REVENUE AND NUMBER OF DOS BY REGION by region OPERATING INCOME by division (Luxury) 32% 68% 8% 92% 6
Slide 7: Three action areas
Investor Presentation Integrated, pragmatic, responsive operational model Creation and products ∞ Increasingly relevant value proposition for our customers ∞ Ongoing adaptation of the structure and effectiveness of our collections ∞ Constant search for product categories whose potential remains unde
Slide 8: Three action areas
Investor Presentation Integrated, pragmatic, responsive operational model Creation and products ∞ Increasingly relevant value proposition for our customers ∞ Ongoing adaptation of the structure and effectiveness of our collections ∞ Constant search for product categories whose potential remains unde
Slide 9: Reinforce the Group's digital leadership
Investor Presentation Reinforce the Group’s digital leadership Our clients are increasingly asking for … and seamless … global connected customization 1 Build online presence for the Group’s brands ∞ All Group brands (apart from Boucheron, Sowind and Ulysse Nardin) run an e-commerce site ∞ Broad pro
Slide 10: Three action areas
Investor Presentation Integrated, pragmatic, responsive operational model Creation and products ∞ Increasingly relevant value proposition for our customers ∞ Ongoing adaptation of the structure and effectiveness of our collections ∞ Constant search for product categories whose potential remains unde
Slide 11: H1 results summary
Investor Presentation H1 results summary 11
Slide 12: Operating performances
2015 first-half results Operating performances Group H1 Revenue: +17% reported, + 3.5% comparable Group H1 Revenue by quarter (% in comparable growth) In €m Change (%) +8.0% +7.7% +7.1% +5.3% +3.5% +3.7% Revenue Reported Comparable (*) +2.8% Luxury 3,762 +17.8% +2.8% -0.6% Sport & Lifestyle 1,731 +1
Slide 13: Luxury activities H1 15 revenue
Luxury activities H1 15 revenue: +2.8% comparable Resilient H1 on sharp Q2 rebound X%: comparable growth +7% -7% Reported -1% 3,762 +2% In €m H1 15 change (*) +12% Revenue 3,762 +17.8% 3,194 Retail (72% of H1 15 revenue) Recurring operating income 806 +0.0% Comp growth (%) Q2 15 H1 15 Recurring oper
Slide 14: Sport & Lifestyle activities H1 15 revenue
Sport & Lifestyle activities H1 15 revenue: +5.3% comparable Sustained growth trajectory X%: comparable growth Reported In €m H1 15 change +13% +11% 1,731 +4% +1% 1,499 +0% Revenue 1,731 +15.5% Recurring operating income 38 -45.8% Recurring operating income margin 2.2% -2.5pt o/w Puma 41 o/w Other B
Slide 15: H1 15 revenue
H1 15 revenue Change In €m, continuing operations H1 15 H1 14 (*) €m % Gucci 1,874.2 1,676.3 197.9 +11.8% Bottega Veneta 629.2 525.5 103.7 +19.7% Saint Laurent 443.1 320.6 122.5 +38.2% Other brands 815.5 671.2 144.3 +21.5% Luxury 3,762.0 3,193.6 568.4 +17.8% Puma 1,601.2 1,386.1 215.1 +15.5% Other b
Slide 16: H1 recurring operating income
H1 15 recurring operating income Change In €m, continuing operations H1 15 H1 14 (*) €m % Gucci 501.6 527.6 (26.0) -4.9% Bottega Veneta 180.1 163.1 17.0 +10.4% Saint Laurent 60.5 40.9 19.6 +47.9% Other brands 63.8 74.3 (10.5) -14.1% Luxury 806.0 805.9 0.1 +0.0% Puma 40.7 70.8 (30.1) -42.5% Other bra
Slide 17: Financial performance
Financial performance In €m H1 15 H1 14 (*) Recurring operating income 773 817 Other non-recurring operating income and expenses (42) 1 Net financial charges (**) (136) (104) Corporate income tax (141) (146) Share in earnings of associates (3) (2) Net loss from discontinued operations (11) (363) Con
Slide 18: Free cash flow from operations
Free cash flow from operations H1 15 Free cash flow bridge (change in €m) 635 -326 160 -80 -90 309 299 -211 -30 58 Free cash flow H1 14 non- FCF H1 14 excl. Luxury FCF SLS FCF change Other operations FCF H1 15 before H1 15 hedge Safilo early Free cash flow from operations recurring cash real estate
Slide 19: Change in net financial debt
Change in net financial debt H1 15 net financial debt bridge (in €m) 209 5,337 85 81 5,043 537 4,391 -58 92 Net debt at Free cash flow Net interest paid Dividends paid Purchases of Financing related Other movements Net debt at December from operations and dividend Kering shares to discontinued (tran
Slide 20: Update on Q3 revenue
Investor Presentation Update on Q3 revenue 20
Slide 21: Q3 revenue: 2,895M€
Q3 15 revenue: 2,895M€ +12.0% reported; +3.1% comparable Revenue in €m Change (%) Change (%) Q3 15 9M 15 Revenue Reported Comparable (*) Revenue Reported Comparable (*) Luxury 1,889 +14.0% +3.1% 5,650 +16.5% +2.9% Sport & Lifestyle 1,000 +8.4% +3.4% 2,731 +12.8% +4.6% Corporate & others 7 n.s n.s 27
Slide 22: Luxury activities Q3 2015 revenue
Luxury activities Q3 2015 revenue: 1,889 M€ +14.0% reported; +3.1% comparable Revenue by region and channel Regional revenue breakdown (Comparable growth in %) (On total Q3 revenue, in %) +6% -3% +7% 1,889 +2% +8% RoW 7% Western Europe 1,656 36% Asia Pacific 27% North America Japan 19% Q3 14 FX impa
Slide 23: Gucci Q3 2015 revenue
Q3 2015 revenue: 924 M€ +8.6% reported; -0.4% comparable Revenue by region and channel Regional revenue breakdown (Comparable growth in %) (On total Q3 revenue, in %) Retail (80% of revenue): +1% RoW Western +24% -17% +22% -6% -7% 924 6% -8% Europe +27% 32% 851 Asia Pacific 31% North America 20% Jap
Slide 24: In store & online experience
IN STORE & ONLINE EXPERIENCE UPDATING ALL TOUCH POINTS CRUISE 2016 PROGRESSIVELY IN NEW MILANO MONTENAPOLEONE DOS AND IN NEW DOORS STORE FASHION SHOW S/S 2016
Slide 25: Bottega Veneta Q3 2015 revenue
Q3 2015 revenue: 324 M€ +13.2% reported; +4.3% comparable Revenue by region and channel Regional revenue breakdown (Comparable growth in %) (On total Q3 revenue, in %) Retail (81% of revenue): +4% RoW +6% +14% 324 4% +15% -13% +78% Western +33% -13% Europe 286 35% Asia Pacific 35% North America Japa
Slide 26: Saint Laurent Q3 2015 revenue
Q3 2015 revenue: 243 M€ +36.9% reported; +26.6% comparable Revenue by region and channel Regional revenue breakdown (Comparable growth in %) (On total Q3 revenue, in %) Retail (63% of revenue): +32% +17% +25% 243 RoW 6% +27% +10% +77% Western +16% +40% Europe 43% 178 Asia Pacific 21% Japan 8% North
Slide 27: Other luxury brands Q3 2015 revenue
Other luxury brands Q3 2015 revenue: 397 M€ +16.5% reported; -1.0% comparable Revenue by region and channel Regional revenue breakdown (Comparable growth in %) (On total Q3 revenue, in %) +11% -9% +10% +18% 397 RoW +7% 11% 341 Western Europe Asia Pacific 43% 18% Japan 9% North America Q3 14 FX impac
Slide 28: Sport & Lifestyle Q3 2015 revenue
Sport & Lifestyle activities Q3 2015 revenue: 1,000M€ +8.4% reported; +3.4% comparable Revenue by region Regional revenue breakdown (Comparable growth in %) (On total Q3 revenue, in %) +8% 1,000 +8% +9% -0% RoW Western 20% Europe 922 -5% 30% % change In €m % comparable % reported Puma €1,474m Asia P
Slide 29: Conclusion and Outlook
Investor Presentation Conclusion and Outlook 29
Slide 30: Conclusion
Q3 15 revenue Conclusion ∞ Focus on organic growth, leveraging the strong appeal and huge potential of each of our brands – Gucci rejuvenation on track and on schedule, yielding an enthusiastic early response from influencers and clients – Kering Eyewear building value in underexploited segment ∞ In
Slide 31: Principles for Sustainable Investing and Corporate Governance overview
Investor Presentation Principles for Sustainable Investing and Corporate Governance overview 31
Slide 32: Foreword
François-Henri Pinault Foreword 32
Slide 33: Operation of the Board of Directors
Governance Operation of the Board of Directors 11 4 4 5 Directors Independent Women Committees Audit committee Strategy and – Jean-Pierre DENIS (Chairman)* development committee – Patricia BARBIZET (Chairwoman) – Patricia BARBIZET – Yseulys COSTES* – Yseulys COSTES* Board of – – Philippe LAGAYETTE*
Slide 34: Sustainability: Vision and targets
Sustainability Vision and targets 34
Slide 35: Vision and targets: EP&L
Sustainability Vision and targets ep&l PUBLISHING A GROUP WIDE EP&L FOR ALL LUXURY AND SPORT & LIFSTYLE BRANDS BY 2016 BY 2016. 35
Slide 36: Targets: progress to date
Sustainability Targets: progress to date 36
Slide 37: Environmental Profit & Loss account
Sustainability Environmental Profit & Loss account €
Slide 38: Group EP&L results
KERING ENVIRONMENTAL PROFIT & LOSS Group EP&L results DISCOVER MORE www.kering.com/en/sustai nability/epl 38
Slide 39: Appendices
Investor Presentation Appendices 39
Slide 40: Update on action plans and first achievements
Update on action plans and first achievements H1 2015 H2 2015 Timing of January / February June From end of June End of Q3/ Early Q4 collections Men & Women Fashion Show Cruise 2016 M&W Fashion Show Cruise collection F/W 15-16 collection F/W 15-16 first progressively in stores presentation products
Slide 41: H1 15 EBITDA
H1 15 EBITDA Change In €m, continuing operations H1 15 H1 14 (*) €m % Gucci 587.1 596.4 (9.3) -1.6% Bottega Veneta 198.6 177.7 20.9 +11.8% Saint Laurent 79.6 52.3 27.3 +52.2% Other brands 95.4 99.0 (3.6) -3.6% Luxury 960.7 925.4 35.3 +3.8% Puma 68.4 95.0 (26.6) -28.0% Other brands 1.7 1.8 (0.1) -5.6
Slide 42: H1 net financial costs and income tax
H1 15 net financial costs and income tax In €m H1 15 H1 14 (*) Cost of net debt (64.2) (86.0) Other financial income and expenses (72.0) (18.3) Financial costs (net) (136.2) (104.3) In €m H1 15 H1 14 (*) Tax on recurring income (126.3) (129.9) Tax on non-recurring items (15.1) (16.1) Total tax charg
Slide 43: H1 Free cash flow from operations
H1 15 Free cash flow from operations In €m H1 15 H1 14 (*) Cash flow before taxes, dividends and interest 895 944 Change in working capital requirement (excluding taxes) (428) (261) Corporate income tax paid (148) (175) Net cash flow from operating activities 319 508 Acquisition of fixed operating a
Slide 44: H1 condensed consolidated balance sheet
H1 15 condensed consolidated balance sheet In €m H1 15 H1 14 (*) Goodwill, brands & other intangible assets – Net 15 100 14 361 Other net non-current assets 503 4 Net current assets 1 555 1 039 Provisions (365) (391) CAPITAL EMPLOYED 16 793 15 013 Net assets held for sale 28 (66) SHAREHOLDERS’ EQUIT
Slide 45: Appendices – 9M 2015 details
Appendices – 9M 2015 details # DOS as of September 9M 2015 sales Reported growth - % Comparable growth - % 30th, 2015 2,798 +10.7% -1.2% 520 953 +17.4% +5.6% 243 686 +37.7% +25.1% 137 Other brands 1,213 +19.8% +0.3% 332 Luxury activities 5,650 +16.5% +2.9% 1,232 45
Slide 46: Empowering Imagination