Samsonite Group S.a. · HKEX:1910
Samsonite — Samsonite International — H1 2012 Earnings Presentation
44 slides from Samsonite's earnings presentation, August 2012
Slide 1: 2012 Interim Results
Samsonite International S.A. 2012 Interim Results June 30, 2012
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 First Half 2012 Highlights Financial Overview Recent Acquisitions Outlook and Strategy for Second Half 2012 Q&A Page 3
Slide 4: 1H 2012 Business Highlights
1H 2012 Business Highlights Record 1st half sales of US$846.7 million, an increase of 13% from prior year or 18.2% on a constant currency basis, despite uneven trading conditions across regions The gap between reported and constant currency growth reflects the impact of the strengthening dollar, esp
Slide 5: Key Financial Highlights
Key Financial Highlights Adjusted Net Income Growth of 32% and Adjusted EBITDA growth of 16% Cash position of US$202 million as of June 30, 2012, almost doubled from US$102 million as of June 30, 2011. Company’s first distribution to shareholders of US$30 million was paid on July 6, 2012. Earnings p
Slide 6: Agenda
Agenda First Half 2012 Highlights Financial Overview Recent Acquisitions Outlook and Strategy for Second Half 2012 Q&A Page 6
Slide 7: Key Financial Highlights
Key Financial Highlights Sales growth of US$103 million to record 1st half net sales of US$847 million Net Sales Gross Margin Constant currency net sales growth of US$m $102.9 13.8% US$m $45.6 11.1% 18.2% 900 $847 500 $456 Gross margin increased US$46 million. 800 $744 450 $410 Gross margin as a per
Slide 8: Key Financial Highlights
Key Financial Highlights Adjusted EBITDA growth of 16% Adj. EBITDA Adj. Net Income with continued increase in EBITDA margin. US$m $18.7 15.8% US$m $21.4 32.1% Adjusted net income up 32% 160 100 $88 with adjusted net income as a $137 90 140 percentage of sales up from $118 80 9.0% to 10.4%. 120 $67 7
Slide 9: Financial Trends - Strong growth continues
Financial Trends - Strong growth continues with improved EBITDA and net income margins Net Sales Gross Margin Adj. EBITDA Adj. Net Income Y-O-Y Growth Rates US$m US$m US$m US$m 34.5% 24.0% 13.8% 900 $847 500 160 100 $821 $447 $456 $88 450 $137 90 800 $744 $410 140 $130 400 $118 80 700 120 $70 $67 35
Slide 10: Strong sales growth led by Asia and North America
Strong sales growth led by Asia and North America Net Sales Growth by Region US$m 21.3% 27.7% -2.0% -2.2% 25% constant currency growth in $350 Asia was driven by continued $324.6 penetration of the American $300 Tourister brand and POS expansion $267.6 H1 2011 in India and China. $250 $238.5 $225.7$
Slide 11: Asia – Our largest region continues to show strong growth and profitability
Asia – Our largest region continues to show strong growth and profitability Asia sales are up US$57 million, or 21%. Net Sales Adjusted EBITDA On a constant currency basis, Asia net sales are up 25%, US$ $57.0 21.3% US$ $8.7 17.9% fuelled by: 350 $324.6 70 Samsonite and American Tourister sales up a
Slide 12: China – Continued POS expansion with strong profitability
China(1) – Continued POS expansion with strong profitability Strong growth in net sales of 35%, or 30% on a Net Sales Adjusted EBITDA constant currency basis, driven by POS US$ $21.8 34.7% US$ $4.1 25.6% expansion and continued brand penetration 90 $84.7 25 24% POS increase in Tier 3 & 4 cities, whi
Slide 13: North America – Tremendous growth significantly outpacing the competition
North America – Tremendous growth significantly outpacing the competition Net sales growth of 28% despite a highly Net Sales Adjusted EBITDA competitive market – taking market share US$ $51.7 27.7% US$ $13.8 44.4% Sales growth driven by 32% increase in wholesale 300 50 $44.8 sales due to new door op
Slide 14: Europe – Growth of 6% on a constant currency basis
Europe – Growth of 6% on a constant currency basis Net Sales Adjusted EBITDA On a constant currency basis, sales growth was 6% despite macroeconomic challenges in the region. US$ $(4.5) -2.0% US$ $(0.3) -1.0% Significant devaluation of the Euro exchange rate to 250 40 the USD is negatively impacting
Slide 15: Latin America – Sales growth of 5% on constant currency basis
Latin America – Sales growth of 5% on constant currency basis, with strong results in Mexico and Brazil Net Sales Adjusted EBITDA US$ $(1.3) -2.2% US$ $(0.1) -1.0% Sales growth of 5% on a constant currency basis 70 12 Strong sales growth in Mexico of 18%(1) $10.4 $10.3 $58.2 $56.9 60 Sales in Chile
Slide 16: Sales in Key Markets
Sales in Key Markets Strong growth in all key markets, except Italy US$m $250 1H 2011 1H 2012 $225.7 $200 $173.5 $150 $100 $84.7 $62.9 $55.5 $54.6 $55.4 $48.0 $50 $28.8 $31.0 $30.3 $29.9$28.5 $28.9 $28.0 $32.1 $26.0 $25.0 $21.7 $20.4 $0 US China South Korea India Germany Japan France Chile Italy Hon
Slide 17: Sales in Emerging Markets
Sales in Emerging Markets Continued brand penetration driving growth in emerging markets US$m $18 1H 2011 1H 2012 $16 $15.3 $14 $12.4 $12 $10 $8.6 $8.3 $7.7 $8 $6.8 $6.3 $5.6 $6 $5.2 $5.2 $5.1 $3.8 $3.9 $4 $3.6 $2.9 $3.0 $2.2 $2 $1.6 $0 Russia Thailand Indonesia Taiwan Turkey Brazil Malaysia South A
Slide 18: Strong Sales Growth in Both Brands
Strong Sales Growth in Both Brands Samsonite sales growth of 10% or US$60 million Net Sales Growth by Brand On a constant currency basis, sales US$m 10.4% 45.4% -100.0% -7.8% growth was 15% driven by North $700 America +30%(1), Asia +12%(1), $635.7 Europe +5%(1) and Latin America +16%(1). $600 $576.
Slide 19: Strong Sales Growth in Travel and Casual Categories
Strong Sales Growth in Travel and Casual Categories – Business awaiting new lines Net Sales Growth by Product Category Travel remains our largest product category and traditional strength with growth of 22% on a (1) constant currency basis US$m 17.1% -4.5% 25.0% 32.6% -14.9% $700 $655.8 Growth drive
Slide 20: Significant Expansion in Points of Sale
Significant Expansion in Points of Sale Total Points of Sale POS in North America up by about 640 Mainly new doors at Best Buy and Target 42,000 41,644 Total POS over 24,000 Retail Wholesale 41,500 POS in Asia increased by about 325 1,620 932 +162 in India (136 wholesale, 26 retail) 41,000 40,024 +8
Slide 21: Marketing spend continues to drive sales growth ahead of overall market
Marketing spend continues to drive sales growth ahead of overall market Advertising Spend Total advertising and promotions spend US$m increased by 4.3% to US$63 million $64 63 As a percentage of sales, advertising and promotions spend has decreased slightly $62 60 More efficient advertising spend on
Slide 22: Targeted Brand Advertising Asia - Samsonite
Targeted Brand Advertising Asia - Samsonite Samsonite Asia Brand Campaign 2012 – “Step Out 2” Message - Samsonite is an international brand that is emotionally engaging and relevant to Asian travelers On outdoor billboards In airports In train stations Page 22
Slide 23: Targeted Brand Advertising Asia - Samsonite
Targeted Brand Advertising Asia - Samsonite In POS window displays On TV In print publications On in-flight TV Page 23
Slide 24: Asia – American Tourister
Targeted Brand Advertising... Asia – American Tourister American Tourister Asia Brand Campaign 2012 – “Take On The World” Message - Consistent communication of American Tourister as an international, fashionable brand targeted towards young consumers, which offer products with great price value In t
Slide 25: Asia – American Tourister
Targeted Brand Advertising... Asia – American Tourister On buses and trucks In print publications In POS window displays On-line Page 25
Slide 26: Targeted Product Advertising... North America - Samsonite
Targeted Product Advertising... North America - Samsonite Travel Casual Currently in airports and in-flight magazines. National “Tough Tour” - Armored vehicle, obstacle course, games and pop-up store travel across the print ads scheduled for Q4 2012. country to college campuses and other youthful an
Slide 27: North America – American Tourister
Targeted Brand Advertising... North America – American Tourister American Tourister advertising features “light and bright” trendy characteristics of the products Page 27
Slide 28: Targeted Product Advertising... Europe - Samsonite
Targeted Product Advertising... Europe - Samsonite Samsonite Europe Campaign 2012 – “Arrivals” Focuses on product heros Cubelite and B-Lite and is run in TV, print, on-line, billboardsInand PrintPOS media On TV At POS locations Page 28 On-line
Slide 29: Targeted Product Advertising... Latin America
Targeted Product Advertising... Latin America Casual – Targeting 13-18 year old girls, using TV celebrity as a brand ambassador to communicate Xtrem bags as a fashion brand. The campaign plays on “extreme” feelings of teenagers. Laptop Bags – Targeting 25-35 year old tech savvy scholars and professi
Slide 30: Strong balance sheet with expanded credit facility
Strong balance sheet with expanded credit facility US$m June 30, December 31, June 30, $ C hg J un- 12 % C hg J un- 12 2011 2011 2012 v s . J un- 11 v s . J un- 11 Cash position of US$202 million as of Cash and cash equivalents 101.8 141.3 202.1 100.3 98.5% June 30, 2012 is up over US$100 Trade and
Slide 31: Significant improvement in working capital efficiency
Significant improvement in working capital efficiency US$m June 30, December 31, June 30, $ Chg Jun-12 % Chg Jun-12 Net working capital efficiency of 12.4% 2011 2011 2012 vs. Jun-11 vs. Jun-11 at June 30, 2012 is 360bp better than Working Capital Items 16.0% at June 30, 2011 and in line Inventories
Slide 32: Capital Expenditure
Capital Expenditure Capital Expenditure by Project Type (US$m) 1H 2011 1H 2012 Retail capex in 1H 2012 consists mainly Retail 4.9 5.0 of US$3.1 million retail expansion and remodel in Asia and $1.1 million retail Product Development / R&D / Supply 6.8 3.8 expansion and remodel in Europe Capex on Pro
Slide 33: Shareholder Information
Shareholder Information Shareholder Information as of August 16, 2012 Shares outstanding 1,407,137,004 Stock Price (HK$) 13.24 Amounts below stated in US$ YTD June 2012 EPS (US$) $0.06 YTD June 2012 Adjusted EPS (US$) $0.06 2012 distribution to shareholders (US$) $30,000,000 Distribution per share (
Slide 34: Share Price Performance from IPO Price
Samsonite Share Price Performance from IPO Price 20% 10% 0% -10% -20% -30% -40% Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Samsonite Hang Seng Index Page 34
Slide 35: Agenda
Agenda First Half 2012 Highlights Financial Overview Recent Acquisitions Outlook and Strategy for Second Half 2012 Q&A Page 35
Slide 36: High Sierra Acquisition
High Sierra Acquisition Transaction completed in July 2012 for $110m in cash funded from internal resources and recently expanded Revolving Credit Facility of $300m 2011 net sales of $64m (31% growth), of which approximately 90% is in US Allows for a strategic extension of Samsonite’s brand portfoli
Slide 37: High Sierra Products
High Sierra Products Daypacks Access Backpack - Retails US$120 U.S. Ski Team Official Team Backpack– Retails US$220 Titan 55 Tech Series Internal Frame Pack-Retails US$130 Evolution Computer Daypacks Swerve Backpack– Fat Boy Backpack-Retails Page 37 Backpack-Retails US$120 Retails US$90 US$120
Slide 38: High Sierra Products
High Sierra Products Next Level Deluxe Tote– Retails US$140 Elevate 28in. Expandable Wheeled Upright– Retails AT3 Sierra-Lite 26in. US$320 Expandable Wheeled Drop-Bottom Duffrite– Retails US$280 AT6 Carry-On Wheeled Business Evolution 25in. Wheeled Page 38 Upright – Retails US$300 Upright– Retails U
Slide 39: Hartmann Acquisition
Hartmann Acquisition Transaction completed in August 2012 for $35m in cash 2011 net sales of $23m (26% growth), of which approximately 98% is in US The acquisition ideally positions Samsonite, as the world’s largest travel luggage company, to expand its presence in the lucrative high end market, and
Slide 40: Hartmann Products – Travel
Hartmann Products – Travel PC4 Collection 27in. Mobile The Tweed Classic Collection Packcloth 21” expandable mobile Traveler Spinner – Retails US$380 27in. Expandable Mobile traveler® – Retails US$270 Traveler – Retails US$895 Hartmann Lite 20” wide mobile traveler® spinner – Retails US$550 Wings 24
Slide 41: Hartmann Products – Business and Casual
Hartmann Products – Business and Casual Intensity Collection Laptop Backpack– Retails US$295 Belting Leather Duffel– Retails US$595 J Hartmann Reserve Attache – Retails US$1,750 Aviator Collection Zipper Tweed Cosmetic Tote – J Hartmann Reserve Zip File Laptop Brief – Retails US$425 Retails US$375 B
Slide 42: Agenda
Agenda First Half 2012 Highlights Financial Overview Recent Acquisitions Outlook and Strategy for Second Half 2012 Q&A Page 42
Slide 43: Outlook & Strategy for 2H 2012
Outlook & Strategy for 2H 2012 Continue to invest in advertising and promotions and R&D to drive future sales ahead of the market Develop our stable of international brands, whilst tailoring products to meet local requirements across regions Execute on creating value from recent acquisitions Stabili
Slide 44: Agenda
Agenda First Half 2012 Highlights Financial Overview Recent Acquisitions Outlook and Strategy for Second Half 2012 Q&A Page 44
Samsonite International — H1 2012 Earnings Presentation on 6ix