Hermes International Sca · EURONEXT:RMS
Hermes International Sca — Hermès International — H1 2017 Earnings Presentation
27 slides from Hermes International Sca's earnings presentation, 2017
Slide 1: Hermès Results First Half 2017
HERMES RESULTS I° semester 2017
Slide 2: Highlights
HIGHLIGHTS £2 2 Q6 Oe
Slide 3: Activity
ACTIVITY • Sales are up +11 % at current exchange rates and +10 % at constant rates • Activity was sustained in the group’s stores (+11 % at constant rates) • Growth is primarily organic with few price or perimeter effects HERMES FIRST HALF 2017 RESULTS /3
Slide 4: Revenue by Geographical Area
REVENUE BY GEOGRAPHICAL AREA HERMES FIRST HALF 2017 RESULTS /4
Slide 5: Revenue by Geographical Area
REVENUE BY GEOGRAPHICAL AREA Change at in €M June 2017 constant rates France 361 2.4% Europe (excl. France) 476 10.7% EUROPE 836 7.0% Japan 349 3.4% Asia-Pacific (excl. Japan) 998 14.3% ASIA 1,347 11.2% Americas 482 8.8% Others 47 28.6% TOTAL 2,713 9.7% Revenue rose in all geographical areas HERMES
Slide 6: Revenue by Geographical Area
REVENUE BY GEOGRAPHICAL AREA Others Fra nce Ameri cas 1% 13% 18% Europe (excl. Fra nce) 18% As i a-Pacific (excl. Ja pa n Ja pa n) 13% 37% HERMES FIRST HALF 2017 RESULTS /6
Slide 7: Revenue by Sector
REVENUE BY SECTOR HERMES FIRST HALF 2017 RESULTS /7
Slide 8: Revenue by Sector
REVENUE BY SECTOR Change at in €M June 2017 constant rates Leather Goods and Saddlery 1,404 12.2% Ready-to-wear and accessories 579 10.4% Silk and textiles 246 5.8% Other Hermès sectors 172 13.0% Perfumes 134 7.7% Watches 75 (1.2)% Other products 102 (8.7)% TOTAL 2,713 9.7% The Ready-to-wear and Acc
Slide 9: Revenue by Sector
REVENUE BY SECTOR Wa tches Other products 3% 4% Perfumes 5% Other Hermès sectors 6% Si l k a nd textiles 9% Lea ther Goods a nd Sa ddlery 52% Rea dy-to-wear a nd a ccessories 21% HERMES FIRST HALF 2017 RESULTS /9
Slide 10: Results
RESULTS • Operating income rose +13 % and reached € 931M in the first half 2017 • Net income amounted to € 605M representing 22.3 % of sales, up +11 % • Net cash position amounted to € 2,434M as of 30 June 2017 compared to € 2,320M as of 31 December 2016 HERMES FIRST HALF 2017 RESULTS / 10
Slide 11: Investments
INVESTMENTS Investments amounted to € 105M and were mainly related to: • the development of the distribution network • the continuing ramp-ups of new leather goods workshops • the launch of new production sites HERMES FIRST HALF 2017 RESULTS / 11
Slide 12: Distribution Network
DISTRIBUTION NETWORK • Opening of the Sao Paulo store • Re-opening of the London and Munich stores • Extension and renovation of the Athens, Seoul and Biarritz stores HERMES FIRST HALF 2017 RESULTS / 12
Slide 13: Production
PRODUCTION • Inauguration of the Maroquinerie de Normandie and the Ganterie-Maroquinerie de Saint Junien in June • Investments for a third site in Franche-Comté continued HERMES FIRST HALF 2017 RESULTS / 13
Slide 14: Communication
COMMUNICATION • 8th edition of the Saut Hermès at the Grand Palais in Paris • Margiela the Hermès years exhibition in Anvers • Men’s Universe in Los Angeles, Women’s Universe in Shanghai • Wanderland in Shanghai • Hermès at Work in Tokyo and Milan • Crazy Carré in Madrid HERMES FIRST HALF 2017 RESUL
Slide 15: Results
RESULTS
Slide 16: Income Statement
INCOME STATEMENT HERMES FIRST HALF 2016 RESULTS / 16
Slide 17: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT % % in €M June 2017 revenue June 2016 revenue Revenue 2,713 2,440 Cost of sales (810) (770) Gross margin 1,903 70.1% 1,670 68.4% Communication (120) (4.4)% (100) (4.1)% Selling, marketing and administrative expenses (688) (25.3)% (625) (25.6)% Other income and expenses
Slide 18: Half Year Recurring Operating Income
HALF YEAR RECURRING OPERATING INCOME 36 In % of Revenue 34.3 33.9 34 33.1 32.6 32.5 32.0 32.1 32 30 28.3 28 26 25.1 24 22.8 22 20 June-08 June-09 June-10 June-11 June-12 June-13 June-14 June-15 June-16 June-17 HERMES FIRST HALF 2017 RESULTS / 18
Slide 19: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT % % in €M June 2017 revenue June 2016 revenue OPERATING INCOME 931 34.3% 827 33.9% Net financial income (10) (20) Income tax (323) (268) In % of income before tax 35.0% 33.2% Net income from associates 8 8 Net income attributable to non-controlling (1) (2) interests NET
Slide 20: Half Year Net Result
HALF YEAR NET RESULT 25 In % of Revenue 23 22,3 22,3 22,3 21,6 21,6 21,1 21,0 21 19 18,1 17 16,6 15 14,3 13 11 9 7 5 June-08 June-09 June-10 June-11 June-12 June-13 June-14 June-15 June-16 June-17 HERMES FIRST HALF 2017 RESULTS / 20
Slide 21: Investments
INVESTMENTS in €M June 2017 Stores and distribution 49 Production and divisions 25 Real estate and Group projects 31 Investments 105 HERMES FIRST HALF 2017 RESULTS / 21
Slide 22: Restated Cash Flow Statement
RESTATED CASH FLOW STATEMENT in €M June 2017 June 2016 Operating cash fow 794 699 Change in working capital (27) (143) Investments (105) (108) Dividends paid (402) (360) Other changes (75) (77) Change in net cash position 185 11 Closing restated Net cash position 2,530 1,625 Opening restated Net cas
Slide 23: IFRS Cash Flow Statement
IFRS CASH FLOW STATEMENT in €M June 2017 June 2016 Operating cash fow 794 699 Change in working capital (27) (143) Investments (190) (195) Dividends paid (402) (360) Other changes (61) (59) Change in net cash position 114 (58) Closing IFRS Net cash position 2,434 1,513 Opening IFRS Net cash position
Slide 24: Outlook
OUTLOOK
Slide 25: Outlook
OUTLOOK • The performance of the results at the end of June, benefiting from the non-recurring impact of foreign exchange hedging from the year 2016, can not be extrapolated over the full year 2017. • In the medium term, despite growing economic, geopolitical and monetary uncertainties around the wo
Slide 26: Outlook
OUTLOOK • In 2017, Hermès is celebrating the "Meaning of objects". By the wealth of its creations and its fundamental style, Hermès accompanies men and women in their everyday lives. And this ambition is what gives our objects meaning. • Thanks to its unique business model, Hermès is pursuing its lo
Slide 27: Hermès Results First Half 2017
HERMES RESULTS I° semester 2017