Samsonite Group S.a. · HKEX:1910
Samsonite — Samsonite International — Q3 2018 Earnings Presentation
18 slides from Samsonite's earnings presentation, Nov 13, 2018
Slide 1: 2018 Third Quarter Results
Sams@nite WE CARRY THE WORLD 2018 THIRD QUARTER RESULTS NOVEMBER 13, 2018 cet oT _ aan ke — Samsonite International S.A. Stock Code 1910 Samsonite LITE-BOX
Slide 2: Disclosure Statement
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 or b
Slide 3: 3rd Quarter 2018 Results
3rd Quarter 2018 Results Page 3
Slide 4: 3rd Quarter 2018 Results Highlights
3rd Quarter 2018 Results Highlights Net sales growth of 5.2%(1) with Gross margin was up 30bp from Adjusted EBITDA margin Adjusted Net Income net sales growth in Tumi brand of 3Q 2017 largely due to a higher decreased by 110bp due increased by US$15.7 million, 10.3%(1) and net sales growth proportio
Slide 5: 3rd Quarter Net Sales by Region
3rd Quarter Net Sales by Region Constant Currency 0.4% 7.2% 10.0% 13.4% Growth Page 5
Slide 6: 3rd Quarter Net Sales by Key Market
3rd Quarter Net Sales by Key Market(3) US$m $400 2017 $349.0 $348.6 $350 2018 $300 $250 $200 $150 +12.4% on a constant currency basis $100 $78.7 $75.0 $57.8 $56.3 $48.4 $54.0 $50 $41.4 $33.6 $37.7 $30.2 $31.8 $30.8 $34.6 $30.2 $23.8 $21.7 $23.3 $19.6 $19.8 $21.2 $13.5 $12.0 $0 (1) (2) (2) (2) (2) US
Slide 7: Net sales growth of 5.2% in Q3 2018 despite a few challenged markets
Net sales growth of 5.2%(1) in Q3 2018 despite a few challenged markets 3Q 2018 vs. 1H 2018 Net Sales Growth Rates(1) Total Asia: 1H +14.4%, 3Q +7.2% Excluding China and South Korea: 1H +19.8%, 3Q +15.7% (2) Excluding these three markets, net sales growth was 12.2%(1) for 3Q 2018. US excluding eBags
Slide 8: 3rd Quarter Net Sales by Brand
3rd Quarter Net Sales by Brand Net Sales Growth by Brand Samsonite net sales up 1.8%(1), which is down from 5.0%(1) in the 1st half of 2018 due largely to the slowdown in China, South Korea and the US. Tumi net sales growth of 10.3%(1) with strong growth in Asia +27.7%(1) and Europe +14.2%(1), while
Slide 9: YTD September 2018 Results
YTD September 2018 Results Page 9
Slide 10: YTD September 2018 Results Highlights
YTD September 2018 Results Highlights Constant currency net sales Gross margin was up 80bp from Adjusted EBITDA increased by Adjusted Net Income increased growth of 10.1% was driven prior year reflecting an increase US$29.5 million. Adjusted by US$35.3 million due to higher partly by four additional
Slide 11: YTD September Net Sales by Region
YTD September Net Sales by Region Constant Currency 7.9% 11.8% 10.8% 15.8% Growth 3.6% excluding contribution from eBags Page 11
Slide 12: YTD September Net Sales by Key Market
YTD September Net Sales by Key Market(3) 3.2%(4) excluding eBags (1) (2) (2) (2) (2) (2) (1) Hong Kong includes net sales made in Macau and net sales to Tumi distributors in certain other Asian markets. (2) In integrating the Tumi business into the pre-existing European business, there have been cha
Slide 13: YTD September Net Sales by Brand
YTD September Net Sales by Brand Net Sales Growth by Brand Samsonite net sales growth of 3.8%(1) with Europe +4.8%(1), Asia +3.1%(1), North America +2.3%(1) and Latin America +16.1%(1). Tumi net sales growth of 14.3%(1) was driven by expansion in Asia +35.1%(1) and Europe +11.2%(1) as well as 5.5%(1
Slide 14: Continued progress in driving direct-to-consumer (DTC) sales growth
Continued progress in driving direct-to- consumer (“DTC”) sales growth DTC Net Sales Strong DTC net sales growth of 19.3%(1) (14.9%(1) excluding eBags). 34.7% of total Company net sales came from DTC channels in YTD September 2018 compared to 32.1% in YTD September 2017. Retail net sales growth of 1
Slide 15: Continued progress in driving sales growth in non-travel categories
Continued progress in driving sales growth in non-travel categories Net Sales by Category Non-travel category net sales growth of 13.2%(1) outpaced travel category net sales growth of 8.1%(1). Non-travel net sales represented 39.9% of total YTD September 2018 net sales, up 110bp from 38.8% of total
Slide 16: YTD September Advertising by Region
YTD September Advertising by Region In addition to the regional advertising expenses, Corporate also had advertising expense of US$4.1 million related to the global American Tourister advertising campaign. Indicates % of net sales Page 16
Slide 17: Balance Sheet
Balance Sheet Cash flows from operations for the first nine months of 2018 were US$147.0 US$m September 30, December 31, September 30, $ C hg S e p- 18 % C hg S e p- 18 million, largely offset by outflows for capital 2017 2017 2018 v s . S e p- 17 v s . S e p- 17 expenditures of US$64.5 million and
Slide 18: Working Capital
Working Capital Net working capital as of September 30, 2018 was 14.7% of net sales, which was US$m September 30, September 30, $ Chg Sep-18 % Chg Sep-18 slightly above targeted 14% level. 2017 2018 vs. Sep-17 vs. Sep-17 (1) Inventory turnover of 148 days was up 8 Working Capital Items Inventories $
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