Samsonite Group S.a. · HKEX:1910
Samsonite — Samsonite International — H1 2023 Earnings Presentation
40 slides from Samsonite's earnings presentation, Aug 16, 2023
Slide 1: Samsonite International S.A. Stock Code: 1910
Samsonite International S.A. Stock Code: 1910
Slide 2: Disclosure Statement
o) 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
Slide 3: Agenda
S AGENDA O1 O2 OS O04 Business Update Financial Highlights Outlook Q&A
Slide 4: Business Update
BUSINESS UPDATE
Slide 5: Q2 2023 delivered strong sales growth and profitability on record trajectory
6 Q2 2023 delivered strong sales growth and profitability on record trajectory Net Sales US$924 million +36.1%M2) vs. Q2 ‘22 +14.6% 0123) vs. Q2 19 Gross Margin US$549 million 59.4% margin +290 bps vs. Q2 ’22 +400 bps vs. Q2 19 Adjusted EBITDA US$178 million 19.3% margin +170 bps vs. Q2 ’22 +540 bps
Slide 6: Net sales, gross margin, Adjusted EBITDA margin and advertising trends
Net sales trend Gross margin trend Adjusted EBITDA margin trend Advertising spend as % of Net Sales trend
Slide 7: Amazing Half Year Profits and Continued Optimism About Future Business
« Amazing Half Year Profits and Continued Optimism About Future Business * 1H 2023 net sales were US$1,776 million, up 45.7%® from 1H 2022 and up 16.2%(2)3) from 1H 2019, as international travel continued to recover across our global footprint, particularly in Asia. * Gross margin improved by 310 bp
Slide 8: Adjusted EBITDA margin +660 bps improvement
+US$21 million 18.8% 15.4% +660 bps 12.2% improvement Adj. EBITDA Margin
Slide 9: Asia — continued travel and sales recovery enabled Adjusted EBITDA margin expansion
6 Asia — continued travel and sales recovery enabled us to achieve significant Adjusted EBITDA margin expansion ¢ Asia’s 1H 2023 net sales were up +86.7%"” from Adjusted EBITDA prior year, and +18.0%" vs. 1H 2019 driven by . ware : $700 LEER) $200 the continued travel recovery within the region, $64
Slide 10: North America
• ebags (3rd party) Speck • • Indicates % of net sales
Slide 11: Europe
• Russia • • • Indicates % of net sales
Slide 12: Latin America — continued to outperform with 1H 2023 sales growth
6 Latin America — continued to outperform with 1H 2023 sales growth of 69.0%” vs. 1H 2019 * 1H 2023 net sales were up +26.5% compared to prior year, and +69.0%" vs. 1H 2019 driven by strong growth across all our brands within the region. * Adjusted EBITDA margin was 13.7% in 1H 2023, despite signifi
Slide 13: Our core brands each delivering strong growth
* Our core brands each delivering strong growth ‘Sams@nite EVERYWHERE 1H 2023 Net Sales US$880 million +48.7%M2) vs. 1H ‘22 +25.1%) vs. 1H 19 1H 2023 Net Sales US$421 million +52.3%M2) vs. 1H ‘22 +22.4%(02) vs. 1H 19 1H 2023 Net Sales US$321 million +43.7%M}2) vs. 1H ‘22 +15.0%) vs. 1H 19 (1) Stated
Slide 14: We are leaning into marketing spend to drive growth
6 We are leaning into marketing spend to drive growth and capitalize on the continued recovery in travel * Our more efficient operating structure combined with our discipline on promotional activity, has helped enable our business to increase S advertising investments to support future sales i growt
Slide 15: Stunning visuals supporting our Adventure Awaits campaign
g Stunning visuals supporting our “Adventure Awaits” campaign with our Ecodiver products ADVENTURE AWAITS Sams@nite =) Ss E. P : . : z = i “—Sams@nite Sams@nite Sams@nite Samsonite
Slide 16: Samsonite U.S. — Travel Like an Icon with Chloe Fineman
6 Samsonite U.S. — “Travel Like an Icon” with Chloe Fineman
Slide 17: Samsonite India ambassadors
Bollywood Actor Amitabh Bachchan Cricketer Yuvraj Singh Cricketer Mithali Raj
Slide 18: TUMI's international cast of multi-talented ambassadors
6 TUMIPs international cast of multi-talented ambassadors f This past spring, \TUMI’s international cast of multi- talented ambassadors helped us tell the story of “those who never stop unpacking tomorrow—and the bags that come with them-_every step of the way. * From left to right: Formula 1 Driver
Slide 19: TUMI's Essentially Beautiful Degree Campaign
6 TUMIPs “Essentially Beautiful” 19 Degree Campaign ft. Son Heung- min & Lando Norris 19
Slide 20: American Tourister with Find Fun Everywhere campaign
s American Tourister with “Find Fun Everywhere” campaign
Slide 21: Launching American Tourister's red dot award winner Rollio
6 Launching American Tourister’s red dot award winner Rollio AMERICAN TOURISTER YE ROLL ROLL ROLL ge OWN TY) OWNTI Baap OWN uf |
Slide 22: We continue our commitment to sustainability with ESSENS
* We continue our commitment to sustainability with ESSENS Sams@nite Sams@nite 2 Ay ] Designed to matter. Designed to matter. Designed to matter. Made to last. Made to last. Made to last. Introducing : ESSENS TECYCLEX ae rECYCLEX” 22
Slide 23: Taking the Next Step on Our Responsible Journey
* Taking the Next Step on Our Responsible Journey Onboarded new VP, Head of Sustainability Our focus for Q3 and beyond * Conduct a comprehensive sustainability materiality assessment, including customers, investors, employees, suppliers, civil society, and others.’ * Based on the results, identify n
Slide 24: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 25: 1H 2023 Results Highlights
°4H 2023 Results Highlights $87.5 104.9% ussm ussm ussm ussm $2,000 $1,200 $400 $180 («7 ) $L776 $1,800 $1,044 $350 $334 $160 $1,000 $1,600 $300 $140 $1,400 $1,270 $800 $707 $120 $1,200 eB $250 Z $196 $100 $1,000 Z $600 $200 7 $83 (2.0%) an me Cm) = $600 Z Ze $400 =~) $60 Z $100 z $40 $400 g Ze $200
Slide 26: Financial Highlights
* Financial Highlights Net sales in 1H 2023 of US$1,776 million increased by 45.7%) from 1H 2022. * Strong growth from all regions, particularly Asia, where part of the region was still in lockdowns in 1H 2022 and restrictions have now been lifted. * Adjusted EBITDA of US$334 million increased by US
Slide 27: Financial Highlights (cont'd)
°* Financial Highlights (cont’d) * Advertising spend of US$114 million in 1H 2023 (6.4% of net sales) was almost double the US$58 million (4.5% of net sales) in 1H 2022, enabling our brands to capitalize on the strong recovery in travel demand. * As the strong profitability trend continues, we plan
Slide 28: Constant Currency Growth by region
Constant Currency Growth 86.7% 25.3% 30.3%(1) 26.5%
Slide 29: Net sales by channel and travel vs. non-travel
Comparison of net sales by channel Comparison of Travel vs. Non-travel net sales +55.6% (1)(2) +37.6% (1)(2) +52.2% (1)(2) US$m US$m +50.2% (1)(2) +41.6% (1)(2) (3)
Slide 30: Strong sales growth for core brands with faster growth in Tumi and Samsonite
6 Strong sales growth for 3 core brands with faster growth in higher margin Tumi and Samsonite brands Sams@nite << $1,000 sso s2s0 08 ss00 g e400 $300 $800 $350 ° $00 aso sa34s 200 ss00 a 3 5 sa00 & 510 $300 $150 $100 $200 S100 ss0 $100 5x0 “0 so so azo 2002 swam sii2002 12023 . All Other Lipault Br
Slide 31: Significantly lower fixed cost structure driving higher profitability
6 Significantly lower fixed cost structure as a % of sales is driving higher profitability even with increased advertising spend SG&A within Adjusted EBITDA $800 $769.5 + Fixed SG&A expenses as a percentage of sales in $700 $709.3 1H 2023 improved by 320bp from 1H 2022 as we generated strong net sal
Slide 32: Balance sheet summary and net debt
US$m June 30, June 30, $ Chg Jun-23 % Chg Jun-23 • 2022 2023 vs. Jun-22 vs. Jun-22 Cash and cash equivalents 1,064.6 599.0 (465.7) -43.7% Trade and other receivables, net 253.4 314.4 61.1 24.1% Inventories, net 468.8 740.4 271.6 57.9% Other current assets 70.1 96.2 26.2 37.3% • Non-current assets 2,
Slide 33: Refinanced our senior credit facilities
* Refinanced our senior credit facilities . On June 21, 2023 we completed the refinancing of our senior credit facilities. . The transaction amended and restated our prior credit agreement, and provided for new senior secured credit facilities comprising: + US$800.0 million senior secured term loan
Slide 34: Working Capital Items
US$m June 30, December 31, June 30, $ Chg Jun-23 % Chg Jun-23 • 2022 2022 2023 vs. Jun-22 vs. Jun-22 Working Capital Items Inventories $ 468.8 $ 687.6 $ 740.4 $ 271.6 57.9% Trade and Other Receivables $ 253.4 $ 290.9 $ 314.4 $ 61.1 24.1% Accounts Payable $ 416.4 $ 583.3 $ 537.5 $ 121.2 29.1% Net Wor
Slide 35: Capital Expenditures
US$m 1H 2022 1H 2023 • Retail 5.5 10.2 Product Development / R&D / Supply 5.4 5.7 • Information Services and Facilities 1.5 4.6 • Other 0.3 0.4 Total Capital Expenditures 12.6 20.9 Software 3.1 4.7 • Total Capital Expenditures and Software 15.8 25.6
Slide 36: Outlook
OUTLOOK
Slide 37: Outlook
” Outlook + With such strong performance in the first half, we are excited about our growth prospects for the rest of the year. As travel continues to rebound, we are well positioned to further grow our net sales at a fundamentally higher operating margin. « We are seeing a quick recovery in our bus
Slide 38: Outlook (cont'd)
° Outlook (cont’d) * With significant liquidity of US$1.3 billion at June 30, 2023, and total net leverage ratio below pre-pandemic levels, we are Sams@nite confident that we have the capacity to support the growth of the business in the years to come. AMERICAN * The Company’s intent is to resume an
Slide 39: Q&A
QSA
Slide 40: Thank You
THANK YOU.
Samsonite International — H1 2023 Earnings Presentation on 6ix