Kering Sa · EURONEXT:KER
Kering Sa — Investor Day (June 2022)
31 slides from Kering Sa's investor day presentation, Jun 9, 2022
Slide 1: 2022 Kering Capital Markets Day
2022 KERING CAPITAL MARKETS DAY JUNE 9 | 2022
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 presentation may include projections and forecasts or other forward-looking statements. They are not historical facts and
Slide 3: Agenda
AGENDA 1 2 3 WHERE WE WHAT DROVE WHERE WE ARE STAND OUR GROWTH GOING 3
Slide 4: Where we stand
WHERE WE STAND We have come a long way… and we keep on going! WWD, August 2015 Corriere della Sera, February 2022 The Moodie Davitt Report, April 2022 4
Slide 5: From Zero to Hero: exceeded €3B in cumulative Total Revenue
WHERE WE STAND From Zero to Hero: exceeded €3B in cumulative Total Revenue since inception Total Revenue, €M 7M units CAGR +93% 134k units Partnership Balenciaga Main Chloé and Maui Jim Official Gucci with Richemont and Logistic LINDBERG Dunhill Acquisition Launch Launch and Cartier Montblanc Hub Go
Slide 6: What we have done since we last saw you
WHERE WE STAND What we have done since we last saw you Tighter control over the value chain Consolidated worldwide presence Distribution in new channels ▪ Growing number of e- 5 new direct subsidiaries from commerce partners, especially ▪ Set-up of a Main Logistics Hub fashion e-tailers 2018: ▪ Acqu
Slide 7: What drove our growth
WHAT DROVE OUR GROWTH The one and only Luxury Eyewear company in the industry… …exploiting …enhancing …reinforcing …leveraging …investing in a growth product selective impactful loyal client opportunities collections… distribution… visibility… base… worldwide… …all thanks to our People and our “Neve
Slide 8: The one and only luxury eyewear company
THE ONE AND ONLY LUXURY EYEWEAR COMPANY… Complete and Well-balanced High-end Luxury Mindset Brand Portfolio From 2018 From 2021 Product From 2020 From 2020 Quality From 2018 Distribution 8
Slide 9: Enhancing product collections
…ENHANCING PRODUCT COLLECTIONS… Efficient and Well-designed High-quality Innovative Products Manufacturing Processes >40 external manufacturing partners mainly in Balenciaga Bio-injected Blue & Beyond Europe Frames ~80% Gucci Chain Our owned manufacturing plant for Cartier Eyewear in France: Manufac
Slide 10: Reinforcing selective distribution
…REINFORCING SELECTIVE DISTRIBUTION… Salesforce Focus on Cross-selling Enhancement +50% Benchmarking, territory size, number of doors, brands and revenues per headcount // FY 2018 FY 2021 Average Number of Brands per Door Balanced Mix of Increased Client Carryovers and Productivity Total Revenue per
Slide 11: Leveraging impactful visibility
…LEVERAGING IMPACTFUL VISIBILITY… Eyewear Integration into PR & Communication Trade Marketing Master Brand Visibility 11
Slide 12: Investing in a loyal client base
…INVESTING IN A LOYAL CLIENT BASE… Events Customer Service Logistics Virtual Showroom, marketing Digital and phygital sales events, From 3PL to our owned fully automation tool and B2B local roadshows, buying days and automated logistics hub portal renewal with all styles in training initiatives mana
Slide 13: Exploiting growth opportunities worldwide
…EXPLOITING GROWTH OPPORTUNITIES WORLDWIDE… Successful Everywhere 2021 Revenue by Area and Channel 2018-2021 CAGR % APAC CENTRALIZED ~15% CHANNELS ~30% +24% ~25% +27% NORTH EUROPE +15% AMERICA EUROPE AMERICAN 3Os Core ~30% Eyewear Champions CHINA High Potential DISTRIBUTORS ~15% 3Os1 IKA, DOS, ~25%
Slide 14: Our people and our Never Give Up culture
…OUR PEOPLE AND OUR “NEVER GIVE UP” CULTURE Year End Headcount TEAM SPIRIT COMMITMENT AUDACITY PASSION * * Girl Power! Work Lovers Engagement 91% Level 85% >68 89% Nationalities 83% 60% 40% Pride Inclusion Index 14 Notes: *Including LINDBERG
Slide 15: The Cartier business case
THE CARTIER BUSINESS CASE The one and only Luxury Eyewear company in the industry… …exploiting …enhancing …reinforcing …leveraging …investing in a growth product selective impactful loyal client opportunities collections… distribution… visibility… base… worldwide… Increase in custom Increase product
Slide 16: Where we are going: three stages
WHERE WE ARE GOING 2015 Internalization and organic growth FIRST STAGE 2017 Portfolio expansion through the partnership with Richemont SECOND STAGE 2021 Proprietary brands through M&A THIRD STAGE 16
Slide 17: Our medium term ambition
WHERE WE ARE GOING Our Medium Term Ambition Proprietary Brands Sustainability Online Retailers Profitability Capillarity Product Innovation 17
Slide 18: Proprietary brands: a jump forward
PROPRIETARY BRANDS A jump forward in our development strategy The addition of two complementary proprietary brands 18
Slide 19: The LINDBERG acquisition
PROPRIETARY BRANDS The LINDBERG Acquisition Technical competences in Well-established positioning in Luxury prescription frames and design capabilities ProprietaryBrand to bring additional Relevant size with strong reputation margin internalization and overall and recognition worldwide profitability
Slide 20: The Maui Jim acquisition
PROPRIETARY BRANDS The Maui Jim Acquisition Innovative, proprietary lens High-end performance positioning technology and lab capabilities Proprietarybrand to bring additional World’s largest independently margin internalization and overall owned sunglasses brand profitability improvement Growth pote
Slide 21: Proprietary brands: LINDBERG and Maui Jim features
PROPRIETARY BRANDS Patented technical innovation Proprietary lens technology Individually customized Remarkable aesthetics KEY PRODUCT Hypoallergenic titanium Wide range of colors and materials FEATURES Extremely lightweight Unconventional functionality Exceptional Danish design Hawaiian heritage Mo
Slide 22: Best offering for our customers
PROPRIETARY BRANDS Kering Eyewear + LINDBERG + Maui Jim = The best offering for our customers 2 0 2 1 0 8 7 6 5 2 1 Timeless Fashion Functional Style High-end Eyewear Industry Leader Women-focused Men-focused Gender-balanced 22 Notes: Maui Jim transaction subject to relevant competition authorities
Slide 23: Proprietary brands: synergies
PROPRIETARY BRANDS From ▪ Incremental presence in their own markets ▪ Further credibility, reputation and size ▪ Salesforce expansion, ensuring higher capillarity in the market What Kering Eyewear gets ▪ Optical expertise to be extended to Kering Eyewear brands ▪ Sun lens technology and Rx competenc
Slide 24: Well above €1B revenues pro forma
PROPRIETARY BRANDS Kering Eyewear + LINDBERG + Maui Jim = Well above €1B Revenues Revenue Growth Revenue Split PROPRIETARY BRANDS ~40% ~60% HOUSES NORTH CENTRALIZED EUROPE APAC BRANDS AMERICA CHANNELS 24 Notes: Pro forma figures including LINDBERG and Maui Jim on a FY basis; Maui Jim transaction sub
Slide 25: Online retailers
ONLINE RETAILERS Fashion E-tailers & China Eyewear E-commerce A S I S +37% +53% 3-year CAGR 3-year CAGR 2018-2021 2018-2021 T O Leverage on a new dedicated and centralized team to serve exclusively online players globally with a tailor- Strengthen control over e-commerce platforms in China B E made
Slide 26: Capillarity
CAPILLARITY Exploiting synergies within LINDBERG’s and Maui Jim’s distribution networks Extending Kering Eyewear’s direct presence by opening new subsidiaries in high-potential markets around the globe Continuing cultivation of existing relations with trusted, strategic clients 26
Slide 27: Product innovation
PRODUCT INNOVATION LEVERAGING NEW MATERIALS CUSTOMIZATION TREND SETTER TECHNOLOGY 27
Slide 28: Profitability
PROFITABILITY Proprietary brands Organic growth Increase size to fuel profitability Slim and efficient Targeted marketing organization investments 28
Slide 29: Sustainability
SUSTAINABILITY Processes COLLABORATE CREATE Materials Products CARE 29
Slide 30: Where we are going: ~€2B revenues, >15% EBIT margin
WHERE WE ARE GOING Our Medium Term Ambition Proprietary Brands Sustainability Online Retailers ~€2B >15% EBIT Revenues Margin Profitability Capillarity Product Innovation 30
Slide 31: Empowering Imagination