Samsonite Group S.a. · HKEX:1910
Samsonite — Samsonite International — H1 2015 Earnings Presentation
27 slides from Samsonite's earnings presentation, Aug 20, 2015
Slide 1: Samsonite International S.A.
Sams@nite Samsonite International S.A. Stock Code : 1910
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: Agenda
Agenda Results Highlights Business Overview Financial Overview Engines of Future Growth Q&A Page 3
Slide 4: 1st Half 2015 Results Highlights
1st Half 2015 Results Highlights Record 1st half net sales with constant currency sales growth of 16.6% +8.1% on a constant currency basis, excluding FX gain/loss(1) and stock option expenses. +16.6% +14.4% +8.4% Constant Constant Constant Currency Currency Currency Growth Growth Growth Constant cur
Slide 5: 1st Half 2015 Business Overview
1st Half 2015 Business Overview All regions achieved strong constant currency Strong growth in all sales growth: 1H 2015 marketing spend of Asia: +17.2% regions US$70.8 million (5.9% of net North America: +17.3% sales) is up 2.0%, or 12.5% on Europe: +17.4% a constant currency basis, Latin America:
Slide 6: Strong Sales Growth Offset by Currency Translation Pressure
Strong Sales Growth Offset by Currency Translation Pressure Sales Bridge - 1st Half 2014 to 1st Half 2015 Organic sales growth of 11.0%(1)(2) coming from: Asia +14.7%(1)(2) Europe +15.5%(1)(2) North America +3.7%(1) Latin America +7.3%(1) Incremental sales of US$62.9 million from 2014 acquired brand
Slide 7: Currency Translation Had a Negative Impact on Sales and Adjusted EBITDA
Currency Translation Had a Negative Impact of US$92.2 Million on Sales and US$12.3 Million on Adjusted EBITDA 1st Half 2015 Currency Impact vs. Prior Year Currency Deval. vs. 1H PY Sales EBITDA Canada -11.9% $ (2.8) $ (0.4) North America (2.8) (0.4) All regions are being negatively impacted by curre
Slide 8: Asia – Continued strong net sales and profit growth
Asia – Continued strong net sales and profit growth led by China, Japan, India and Australia(1) Constant currency growth of 17.2%(2) was driven by: Strong sales growth of 15.4%(1)(2) in direct-to-consumer channels with: Retail store sales growth of 12.7%(1)(2) coming from the full 1st half effect of
Slide 9: North America – Solid sales growth in a challenging retail environment
North America – Solid sales growth in a challenging retail environment Net sales increased 17.3%(1) driven by: 1st half impact from Speck and Gregory, delivering incremental sales of US$39.7 million and US$7.7 million, respectively; Sales growth in the wholesale channel of 4.6%(1), excluding acquisi
Slide 10: Europe – Strong sales growth of 17.4%
Europe – Strong sales growth of 17.4% on a constant currency basis Constant currency sales growth of 17.4%, led by UK +52.7%(1)(2), Germany +17.3%(1)(2), Turkey +44.6%(1) and Italy +6.5%(1). Russia sales growth of 2.4%(1), despite macroeconomic and geopolitical challenges. Strong growth of 46.9%(1)
Slide 11: Latin America – Constant currency sales growth of 7.3%
Latin America – Constant currency sales growth of 7.3% with a temporary decrease in profitability Sales increased 7.3%(1) on strong growth in Mexico +19.7%(1)(2), Chile +10.9%(1), Colombia +56.0%(1) and Peru +26.8%(1). Sales in Brazil are down 41.1%(1) due to challenging economic market conditions.
Slide 12: Strong Constant Currency Sales Growth in All Key Markets
Strong Constant Currency Sales Growth in All Key Markets Page 12 * Includes Macau
Slide 13: Continued brand penetration is driving sales growth in emerging markets
Continued brand penetration is driving constant currency sales growth in most emerging markets Includes US$3.6 million disposal of inventory from former distributors (1) (1) Mexico, excluding export sales Page 13
Slide 14: Direct-to-Consumer Channel Sales Growth of 20.9%
Direct-to-Consumer Channel Sales Growth of 20.9%(1) Sales growth of 19.7%(1) in retail stores is driven by: Full 1st half impact of 162 net new stores added in 2014 and 2015, including 33 net new stores from the acquisition of Rolling Luggage Same store sales comps are roughly flat compared to prior
Slide 15: Acquisition of Rolling Luggage contributes to growth in the retail channel
Acquisition of Rolling Luggage contributes to growth in the retail channel On February 16, 2015, the assets and certain liabilities of Rolling Luggage were purchased for a total of GBP£15.5m (US$23.9 million). The acquisition provides a significant retail footprint in some of the leading airports in
Slide 16: All Brands Delivering Strong Sales Growth
All Brands Delivering Strong Sales Growth Net Sales Growth by Brand Continued growth in Samsonite with net sales up 7.5% on a constant currency basis: Asia +15.1%(1), North America +6.0%(1), Europe +2.9%(1), and Latin America -1.5%(1). American Tourister net sales up 18.4% on a constant currency bas
Slide 17: Brands Acquired in 2014 - Update
Brands Acquired in 2014 - Update Lipault is a youthful, vibrant and chic French Speck produces a diverse range of sleek, stylish, Gregory Mountain Products (“Gregory”) is an luggage brand known for its functional and and functionally innovative products that provide iconic technical outdoor backpack
Slide 18: Key Product Assortment
Key Product Assortment Tru-Frame S’Cure (Global) HS MV+ Cube Pop (Asia) (Asia) (Asia) Bon Air San Francisco Star Wars (Europe & Asia) (Europe) Cosmolite (Global) (Global) Torus (Global) Columbian Leather Flapover Brief (N. America) Gelato Meridien Red – Newyorker Spherelite Lock ’n’ Roll (Asia) (N.
Slide 19: Key Product Assortment
Key Product Assortment Minimalist North America 7R Master Europe Ducord Duffel Ballistic Briefcase Intensity Tweed Belting Asia Herringbone Hardside Herringbone Weekend Duffel Page 19
Slide 20: Strong Sales Growth in All Product Categories
Strong Sales Growth in All Product Categories Net Sales Growth by Product Category Travel remains our largest product category and traditional strength with all regions contributing to growth of 9.5%(1). Non-travel sales have increased from 27.8%(1) of total sales in the 1st half of 2014 to 32.2%(1)
Slide 21: Advertising Spend Increased 12.5% on a Constant Currency Basis
Advertising Spend Increased 12.5% on a Constant Currency Basis Advertising Spend Total advertising spend increased from prior year by US$8.7 million on a constant currency basis, or 12.5%. As a percentage of sales, total constant currency advertising spend is 6.1%, 20bp lower than prior year. Europe
Slide 22: Targeted Brand Advertising
Targeted Brand Advertising Portugal – American Tourister Germany – Samsonite Portugal – Samsonite China - Samsonite Australia – American Tourister France – Hartmann Korea - Samsonite Latin America – Page 22 UK – American Tourister American Tourister U.S.A. – American Tourister
Slide 23: Key Financial Highlights
Key Financial Highlights Strong constant currency sales growth of 16.6%, partly offset by US$92.2 million reduction of reported sales due to currency translation. Excluding impact of currency translation, 1st half 2015 Adjusted EBITDA would have been US$202.3 million, up 8.4% from US$186.7 million i
Slide 24: Strong Balance Sheet
Strong Balance Sheet Net cash in the 1st half increased by US$m June 30, December 31, June 30, $ C hg J un- 15 % C hg J un- 2015 2014 2014 v s . J un- 14 15 v s . J un- 14 US$12.8 million to US$85.7 million at June 30, 2015 with cash flows from Cash and cash equivalents 203.0 140.4 204.9 (1.8) -0.9%
Slide 25: Efficiently Managing Working Capital
Efficiently Managing Working Capital Working capital continues to be managed efficiently at 13.7% of sales at June 30, 2015. US$m June 30, December 31, June 30, $ Chg Jun-15 % Chg Jun-15 Inventory turnover of 109 days is down 7 2015 2014 (1) 2014(1) vs. Jun-14 vs. Jun-14 days from June 30, 2014 as t
Slide 26: Capital Expenditure
Capital Expenditure Capital Expenditure by Project Type US$m 1H 2015 1H 2014 1H 2015 Retail Capex consists of new stores and remodels in Europe of US$5.2 million, Asia Retail 14.6 9.0 of US$4.8 million, Latin America of US$2.8 million and North America of US$1.8 million. Product Development / R&D/ S
Slide 27: Engines Of Future Growth
Engines Of Future Growth Continuing global expansion of travel & tourism: “UNWTO forecasts international tourist arrivals to grow between 3% and 4% in 2015. By region, growth is expected to be strongest in the Americas and in Asia and the Pacific (both +4% to +5%), and somewhat more moderate in Euro
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