Piquadro S.p.a · MIL:PQ
Piquadro — Investor Presentation (January 2019)
42 slides from Piquadro's investor presentation, January 2019
Slide 1: Piquadro Group
PIQUADRO GROUP @ January 2019
Slide 2: Group Facts
GROUP FACTS Ca. €107,3m Net Sales in 9 months 2018-19 (December 2018) Retail channel: 189 mono brand stores (79 in Italy and 110 abroad): 105 Piquadro, 14 The Bridge, 70 Lancel 127 DOS: DOS 56 Piquadro, 9 The Bridge, 62 Lancel 62 franchisee 1.122 employees and workers worldwide: 695 Piquadro, 331 La
Slide 3: Group Net Sales
GROUP NET SALES Net Sales* (FY 2017/18) €73.9m €23.7m €52.7m DOS WHS DOS 30% 14% DOS 41% 86% Channel WHS 59% WHS 70% RoW RoW RoW Europ 2% 3% Europ 1% Europ e e e 16% 8% 20% Geography Italy Italy 81% 78% France 91% * Piquadro Group sales based on FY 2017/2018 plus Lancel sales relevant to 2017/2018 f
Slide 4: Brand Positioning
BRAND luxury = POSITIONING PR —— A MONT = fate Foragnne BLANC BLABERRY RIMOWA Sao ! __ (coacn so 8 oe . : travel i lifestyle Sams@nite KENNETH COLE maya wane @ vetsev mid-end
Slide 5: Three Brands
THREE BRANDS =) LANCEL &) Ia ASReS
Slide 6: Piquadro Brand
PIQUADRO BRAND Piquadro is an Italian leather brand of tech- design accessories for business travelers The “Tech inside concept” combined with the values of innovative design and precious materials makes Piquadro unique 6
Slide 7: Piquadro at a Glance
PIQUADRO AT A GLANCE Net Sales €73.9m (2017/18) Iconic products account for 51% of Net Sales 695 employees: 224 in DOS and 331 in the Chinese factory EBITDA margin 12.5% Retail channel: 41 Full Price Stores (25 in Italy, 10 in Europe, 6 in RoW) 15 Outlet Stores (12 in Italy, 3 in Europe) 7
Slide 8: Piquadro Top Locations Worldwide
PIQUADRO TOP LOCATIONS London WORLDWIDE Prague Venice Milan Florence Barcelona Moscow Taipei Hong Kong 8 Direct presence Franchisees
Slide 9: Innovation through Bagmotic
INNOVATION THROUGH BAGMOTIC Piquadro embraces the “Internet Internet of Things” philosophy Introduction of BAGMOTIC concept: bag automation that makes it possible to be connected to the bag thanks to the Connequ App by Piquadro evolution of Piquadro heritage concept of TECH INSIDE 9
Slide 10: Innovation through Bagmotic
INNOVATION THROUGH BAGMOTIC Piquadro products, products equipped with BAGMOTIC technology, technology can communicate with you thanks to their connection via Bluetooth to your smartphone and smartwatch through the Connequ app available on the App Store and Play Store Bagmotic allows to: to : trace a
Slide 11: Piquadro - The Key Drivers
PIQUADRO -The Key Drivers Before After Briefcase/ Briefcase/backpack offer Luggage expansion offer Mainly an Italian brand International distribution and awarness 40’s-50’s target Younger target Evergreen products Glamour products ‘’General General purpose’’ marketing activity creativity and action
Slide 12: The Bridge Brand
THE BRIDGE BRAND The Bridge is a Florentine leather brand with a 50 year long history of skilled craftsmanship and superior quality materials for a worldly- wise elegance and a bohemian style 12
Slide 13: The Bridge: The Big Opportunity
THE BRIDGE: THE BIG OPPORTUNITY The Bridge is an Italian brand with a strong identity, deeply rooted in Tuscany and tied for the past 50 years to the finest artisan craftmanship and vegetable- vegetable-tanned leather The challenge today is introducing a modern reinterpretation of those products wit
Slide 14: The Bridge Key Strengths
THE BRIDGE KEY STRENGTHS 50 years heritage brand from Tuscany Precious leather and highly recognizable style Iconic eco- eco-sustainable luxury artisan craftmanship Different from ‘’industrial‘’ competitors such as Michael Kors, Coach , Furla Access to large premium woman bags market through diversi
Slide 15: The Bridge at a Glance
THE BRIDGE AT A GLANCE Net Sales € 23.7m Net Sales breakdown by product Small 96 employees: 32 in DOS leather Bags - goods Woman The Bridge is now a profitable 30% 45% company Break-even after just 3 months of Bags - Man operation 25% EBITDA margin 6.5% 15
Slide 16: The Bridge Top Locations Worldwide
THE BRIDGE TOP LOCATIONS WORLDWIDE Berlin Dublin Munich Wien Zurich Salzburg Turin Venice Milan Florence Seoul Hangzou Taipei Hong Kong 16 Direct presence Franchisees
Slide 17: The Bridge - The Key Drivers
THE BRIDGE -The Key Drivers Before After Man Woman Higher Price Reducing Price Formal target Younger target (etical Millennials) Conservative Brand value Focus on Ethic/Nature/Durability/Tuscany tradition Stand alone purchasing platform Sharing Piquadros’ platform No digital strategy New on on--line
Slide 18: Maison Lancel
MAISON LANCEL Lancel is a Parisian Maison of Haute Maroquinerie with 140 years of legacy and savoir-faire Colorful and joyful, the creations are a mix of contemporary timelessness and daring imagination. An authentic Parisian brand to delight every moment of life 18
Slide 19: The Acquisition
THE ACQUISITION On June, 2nd 2018 Piquadro acquired Maison Lancel from Richemont International Price of acquisition: an earn- earn - out on Net Profit (20%) for 10 years from Closing and limited to €35m cumulated At Closing Lancel had: a cash positive net financial position of c. €41m a significantl
Slide 20: Maison Lancel: A Great Challenge
MAISON LANCEL A GREAT CHALLENGE Lancel is a French brand with a 140 years’ history of authentically Parisienne chic Its collections have marked the evolution of women’s bags through iconic and timeless products The challenge is to bring back Maison Lancel’s allure through trendier and younger collec
Slide 21: Maison Lancel at a Glance
MAISON LANCEL AT A GLANCE Net Sales approx. €53m 53m, of which 85% 85% trough DOS mainly located in France (58 stores out of 62) EBITDA negative in FY ended March-18 equal to approx. €23m Lancel operates a network of 62 DOS and 8 franchisees Retail channel: 54 Full Price Stores (France) 8 Outlet Sto
Slide 22: Lancel Top Locations Worldwide
LANCEL TOP LOCATIONS WORLDWIDE Paris Serravalle Marseille Leccio Cannes Barcelona Nice Moscow Tianjin Kuala Lumpur 22 Direct Presence Franchisees
Slide 23: Maison Lancel - The Key Drivers
MAISON LANCEL -The Key Drivers Before After Price positioning : too high for Premium – too low for Luxury Repositioning to Premium Price Conservative and old Style Young strategy Style 50/60 years old target Younger (30/40 years old) target No novelties (one new bag per season) 4 new collections per
Slide 24: Our Mission
OUR MISSION 24
Slide 25: Mission
MISSION Building up a leading international multibrand group in the premium accessories travel & lifestyle segments leveraging on a portfolio of iconic, iconic, recognizable and complementary brands 25
Slide 26: The Ideal Targets
THE IDEAL TARGETS BRAND CHARACTERISTICS: Accessories,Travel & lifestyle as main target segments Premium positioning Premium segment is expected to grow at a higher rate than luxury Local brands characterized by Strong presence in the relevant domestic market and/or in a specific target Distinctive i
Slide 27: The Target Positioning
THE TARGET POSITIONING Premium & entry- entry-to- to-luxury segments are expected to grow by 7.5 % CAGR 2017/21, while luxury market will decrease its historical fast pace Luxury / Premium & entry-to-luxury mkt growth % Premium & entry--to- entry to-luxury 5.8% 5.0% 7.5% 2010/13 2013/17 2017/21 CAGR
Slide 28: Growth of Premium Segment Boosted by 5 Macro Trends
GROWTH OF PREMIUM SEGMENT BOOSTED BY 5 MACRO TRENDS 1 Urban middle class population expected to increase at 5.5% CAGR and reach 3.6bn people by 2030 Rising urban middle class Developing countries are leading the growth in the urban middle class population, with China (8.6% CAGR) and India (7.7% CAGR
Slide 29: A Project with Strong Synergies
A PROJECT WITH STRONG SYNERGIES PIQUADRO GROUP AS A SYNERGIC PLATFORM Piquadro group benefits from a solid industrial platform thanks to a long tradition and excellence in the leather goods industry: industry: In--house R&D and innovation capabilities In Competent and loyal management The industrial
Slide 30: What We Have Already Done
WHAT WE HAVE ALREADY DONE 1 st Step: Step : THE BRIDGE acquisition December 2016 Historical florentine brand, brand 50 year history of skilled craftsmanship EV €13m EV: € 13m Acquisition of Il Ponte Pelletteria S.p.A. 2nd Step: Step : MAISON LANCEL acquisition June 2018 French historic brand with st
Slide 31: The Bridge Acquisition
THE BRIDGE ACQUISITION THE BIG OPPORTUNITY Transaction structure Key financials In December 2016 Piquadro announced the Dec--16: The Bridge Dec Double- Double-digit sales acquisition of an 80% stake in “Il Ponte acquired by growth vs Pelletteria SpA” SpA ”, a company based in Florence Piquadro compa
Slide 32: Lancel Acquisition
LANCEL ACQUISITION A STRATEGIC MOVE TOWARDS A PREMIUM / LIFESTYLE POSITIONING Transaction structure Lancel stores location Lancel has been acquired by Piquadro with: 61 stores in Europe: 2 stores in RoW (China and Russia) 58 in France (55 full price), 2 in Italy, Italy 1 in Net cash position of c. €
Slide 33: Financial Highlights
FINANCIAL HIGH- LIGHTS *FY March ‘18 doesn’t include Lancel figures ( acquisition June 2nd 2018) 33
Slide 34: Income Statement
INCOME STATEMENT FY Ending March 31 (€mln) 2016A 2017A 2018A Net Sales 69.3 75.9 97.6 % growth 43.1% 135% +285% Other revenues .2 23 12 Material costs (13.0) (19.3) (23.7) Service costs (33.4} (323) (42.4) Personnel costs (15.3) (16.8) (20.6 Other operating expenses (0.5) {L2) (1.3) EBITDA 83 88 10.
Slide 35: Summary Balance Sheet
SUMMARY BALANCE SHEET FY Ending March 31 (€mln) 2016A 2017A 2018A Net Working Capital 26,3 26.1 25.4 Net Tangible Assets 12.6 127 111 Net Intangible Assets 4 84 85 Net Financial Assets 1.9 3.0 3.0 Several Staff, Provisions & Others (1.4) (3.7) (4.0) Net Capital Employed 435 46.5 44.0 Group Sharehold
Slide 36: Income Statement Six Months (Ending Sept. 30)
INCOME STATEMENT SIX MONTHS (ENDING SEPT. 30) 36
Slide 37: P&L by Brand
P&L by Brand (Six Months 2018/19 vs. 2017/18) (€mln) 2017A 2018A Var % THE Total Lancel Total PIQUADRO PIQUADRO THE BRIDGE LANCEL PIQUADRO THE BRIDGE BRIDGE Group acquisition Group Net Sales 35,7 11.1 46.8 37.2 12.9 16.5 66.6 4.0% 17.2% EBITDA 4.9 0.9 5.8 5.5 1.1 (5.5) (1.4) (0.3) 11.3% 29.6% Margin
Slide 38: Summary Balance Sheet (Ending Sept. 30)
SUMMARY BALANCE SHEET (ENDING SEPT. 30) (€mln) Sept 2017 Sept 2018 Net Working Capital 32.9 34.0 Net Tangible Assets 11.9 12.1 Net Intangible Assets 8.2 8.0 Net Financial Assets 2.9 4.6 Several Staff, Provisions & Others (3.8) (7.0) Net Capital Employed 52.2 51.7 Group Shareholders' Equity 38.7 76.8
Slide 39: Net Debt
NET DEBT LANCEL NET CASH Mln€ AT ACQUISITION DATE 35 30 +43.9 +24.8 25 -0.7 20 -2.7 15 PIQUADRO +8.8 THE BRIDGE +1.6 10 5 0 +10.4 -5 -10 -3.6 0.1 -1.8 -15 -3.0 - 13.6 -3.8 -20 Operating Net Capex NFP OCF Others Cash Flow Lancel Lancel Net Debt as Earn-out 31/05 Net Capex Net Debt as NWC Dividends Se
Slide 40: 9 Months Net Sales
9 MONTHS NET SALES Piquadro Group Net sales : € 107,3 million; growth + 50,5% Net sales by brand: PIQUADRO : € 54,6 million; growth brand +2,5%; Dos : € 23,4 million; growth channel + 3,0% ( included the Piquadro e-commerce); Wholesale: € 31,2 million; growth channel + 2,1%; THE BRIDGE: € 20,5 milli
Slide 41: Investment Values
INVESTMENT VALUES Over the last 3 years: €14.7m Net Profit generated1 €7.0m Dividends paid2 €11.3m Investments carried out1 €2.2m decrease in Net Debt (including The Bridge acquisition which brought €13m Net Debt) 1) Based on 12 months rolling September 2018,2017,2016 not including LANCEL GROUP resu
Slide 42: Thank You!
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Piquadro Group — Investor Presentation (January 2019) on 6ix