Samsonite Group S.a. · HKEX:1910
Samsonite — Samsonite International — FY2011 Earnings Presentation
48 slides from Samsonite's earnings presentation, Mar 28, 2012
Slide 1: 28 March 2012
28 MARCH 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 Results Highlights Business Overview Financial Highlights Outlook and Strategy for 2012 Q&A Page 3
Slide 4: Results Highlights
Results Highlights Record Net Sales, Adjusted EBITDA and Adjusted Net Income driven by growth across all regions US$m US$m US$m Indicates % of sales * Excludes Lacoste and Timberland due to termination of licensing agreements as of December 31, 2010. Page 4
Slide 5: Business Highlights
Business Highlights Strong performance across all regions led by Asia and buoyed by growth in global travel Record net sales, with double digit growth in sales of both Samsonite and American Tourister Strong sales growth across travel, business and casual categories, supported by product innovation
Slide 6: Key Financial Highlights
Key Financial Highlights Net sales increased by 34.4%(1) US$m US$m year-on-year to a record US$1,565.1 million Gross margin increased 29.7%(1) despite inflationary pressure on costs in 2011 +24.3% growth Constant (1) Excludes Lacoste and Timberland. Currency Net sales of Lacoste and Timberland accou
Slide 7: Key Financial Highlights
Key Financial Highlights Adjusted EBITDA up 47.2 %(1) Adjusted Net Income up 56.6%(1) US$m US$m Reported profit attributable to equity holders of $87 million exceeded profit forecast of $64 million in the Global Offering Prospectus Necessary to adjust reported EBITDA and Net Income for certain non-r
Slide 8: Key Financial Highlights
Key Financial Highlights Company used IPO proceeds to repay in full our loan notes, former amended senior credit facility and former term loan facility Net cash position of $126.2 million as of December 31, 2011 Earnings per share on an adjusted basis rose from US$0.08 in 2010 to US$0.10 in 2011 Del
Slide 9: Agenda
Agenda Results Highlights Business Overview Financial Highlights Outlook and Strategy for 2012 Q&A Page 9
Slide 10: Excellent Results Achieved
Excellent Results Achieved Excellent results achieved in 2011 due to: Continued growth in global travel: International tourist arrivals grew over 4% in 2011 to 980 million(1) Product lines developed in each region to ensure they reflect local consumer tastes in each market Continued focus on innovat
Slide 11: Strong Sales Growth in Both Brands
Strong Sales Growth in Both Brands Net Sales Growth by Brand Strong growth in Samsonite US$m across all regions – net sales up 33.3% 55.1% -91.4% 5.8% 33.3% to US$1,223.4 million $1,400 $1,223.4 Asia +42.1%, North $1,200 2010 America +35.8%, Europe 2011 +26.8%, Latin America $1,000 $917.8 +18.9% $80
Slide 12: Samsonite Remains Our Largest Brand
Samsonite Remains Our Largest Brand 2010 2011 Samsonite 0% Lacoste & Timberland 4% 7% 6% American Tourister Other 16% 13% 76% 78% Sales of Samsonite up US$305.6 million or 33.3% American Tourister sales up US$88.8 million or 55.1%, driven by Asia where sales increased 77.1% Page 12
Slide 13: Products Tailored to Customer Needs Across Regions is a Key to our Success
Products Tailored to Customer Needs Across Regions is a Key to our Success Samsonite American Tourister Asia and Europe North America Asia North America Cosmolite Winfield Cube Alfa iLite DLX B-Lite X-Space Smart Meridien Lite Page 13
Slide 14: Strong Sales Growth in All Regions
Strong Sales Growth in All Regions Net Sales Growth by Region(1) Growth in Asia driven by US$m $700 48.1% 27.6% 29.7% 23.5% increased sales, especially of American Tourister, through $600 $577.3 existing and new POS Europe’s growth led by France, $500 $476.5 Germany, Italy and Spain. $400 $389.9 $37
Slide 15: Net Sales and EBITDA - Regional Breakdown
Net Sales and EBITDA - Regional Breakdown Asia our fastest growing and most profitable region 2010 2011 7% 7% 34% 37% 25% 25% Revenue 34% 31% 6% 6% 19% 22% 39% 40% Adj. EBITDA 36% 32% Asia Europe North America Latin America Region total excludes Corporate external licensing revenues, which constitut
Slide 16: Sales in Key Markets
Sales in Key Markets(1) Strong double-digit growth in key markets in all regions US$m $400 2010 2011 $359.2 $350 $300 $277.3 $250 Creditable sales growth despite economic uncertainty $200 $144.3 $150 $109.7 $100 $88.4 $93.8 $74.9 $66.5 $60.8 $60.9 $60.2 $56.4 $51.9 $46.8 $50.2 $50 $44.1 $43.5 $40.1
Slide 17: Sales in Emerging Markets
Sales in Emerging Markets(1) Continued brand penetration driving growth in emerging markets US$m $30 $27.9 2010 2011 $25 $20.5 $20 $16.8 $14.2 $15 $12.8 $11.7 $11.0 $9.7 $9.7 $10 $8.5 $7.5 $6.8 $5.9 $5.6 $5.1 $5 $3.7 $3.6 $2.2 $0 Russia Thailand Taiwan Indonesia Turkey Brazil Malaysia South Africa P
Slide 18: Strong Sales Growth in all Product Categories
Strong Sales Growth in all Product Categories Net Sales Growth by Product Category Travel remains our largest product category and traditional strength US$m Accounts for 75.8% of net sales at $1,400 33.9% 71.8% 32.4% 41.0% -36.0% US$1,186.7 million, up US$300.8 $1,186.7 million or 33.9% $1,200 Incre
Slide 19: Casual, Business & Accessory Categories Gaining Traction
Casual, Business & Accessory Categories Gaining Traction Page 19
Slide 20: Significant Expansion in Points of Sale
Significant Expansion in Points of Sale POS in North America up by 2,350 Total Points of Sale New JC Penney and Target openings in 2H 2011 41,000 Retail Wholesale 40,024 Opened 4 new company-owned retail 40,000 stores 849 2,906 POS in Asia up by 413 POS 39,000 +378 in India (332 wholesale, 46 38,000
Slide 21: Selection of New Stores Opened in 2011
Selection of New Stores Opened in 2011 Samsonite – Singapore Samsonite – NYC Soho Page 21
Slide 22: Selection of New Stores Opened in 2011
Selection of New Stores Opened in 2011 American Tourister – Beijing Samsonite Red – Korea Page 22
Slide 23: Marketing spend increased in line with revenue growth
Marketing spend increased in line with revenue growth Advertising Spend Increased advertising and promotions spend helping to % of Net Sales 8.4% 7.8% US$m drive sales growth ahead of $130 the overall market $123 $120 $110 Total marketing spend $102 $100 increased by 19.9% to US$122.8 million, and $
Slide 24: Targeted Advertising Across Regions...
Targeted Advertising Across Regions... “Penn Station Domination” – Samsonite North America “Hybrid Campaign” – Samsonite Europe Page 24
Slide 25: Targeted Advertising Across Regions...
Targeted Advertising Across Regions... “Curv Campaign” – Samsonite Europe Page 25
Slide 26: ...And Across Product Categories
...And Across Product Categories Page 26
Slide 27: ...And Across Product Categories
...And Across Product Categories Page 27
Slide 28: Agenda
Agenda Results Highlights Business Overview Financial Highlights Outlook and Strategy for 2012 Q&A Page 28
Slide 29: Financial Highlights
Financial Highlights US$m US$m US$m US$m * Excludes Lacoste and Timberland due to termination of licensing agreements as of December 31, 2010. Indicates % of sales Page 29
Slide 30: Financial Trends
Financial Trends Strong Growth Continues into 2nd Half 2011 US$m US$m * Excludes Lacoste and Timberland due to termination of licensing agreements as of December 31, 2010. Indicates % of sales Page 30
Slide 31: Asia – our largest, fastest growing and most profitable region
Asia – our largest, fastest growing and most profitable region Asia net sales up 48.1% (1), fuelled by: US$m US$m Samsonite and American Tourister sales up 42.1% and 77.1%, respectively Wholesale channel up 44.3%, Retail channel up 37.4% Highest percentage growth in Business category: doubled from U
Slide 32: North America – capitalizing on steady economic recovery
North America – capitalizing on steady economic recovery Net sales grew 29.7% (1) despite a highly competitive market US$m US$m Sales growth driven by retail same store sales growth of 25.4%, selective retail expansion and a 28.1% increase in wholesale shipments Samsonite – sales up 35.8% American T
Slide 33: Europe – strong growth in key markets
Europe – strong growth in key markets Strong sales growth of 27.6% (1), underscoring resilience of our brands US$m US$m Growth led by Germany (+30.9%), France (+26.6%), Italy (+17.8, %)(1) and Spain (+14.8%) Eurozone crisis impacting sales in Portugal and Greece where we have limited sales presence,
Slide 34: Latin America – double-digit growth in key markets
Latin America – double-digit growth in key markets Solid sales growth of 23.5% (1) US$m US$m driven by Chile (+25.0%) and Mexico (+19.3%), with Brazil up 66.7% from a lower base Focus on expanding Business and Casual categories led to growth of 41.9% and 36.3%(1), respectively +18.8% growth Constant
Slide 35: Strong balance sheet provides solid platform for future growth
Strong balance sheet provides solid platform for future growth US$m December 31, December 31, Gross IPO proceeds of 2010 2011 Change US$225.3 million plus existing cash on-hand used Cash and cash equivalents 285.8 141.3 (144.5) to repay loan notes, former Trade and other receivables, net 146.1 171.6
Slide 36: Working Capital
Working Capital US$m December 31, December 31, $ Chg % Chg Net working capital targeted at 2010 2011 2010-2011 2010-2011 efficient level of approximately Working Capital Items 14% of net sales Inventories $ 222.7 $ 237.0 $ 14.3 6.4% Trade and Other Receivables $ 146.1 $ 171.6 $ 25.4 17.4% Accounts r
Slide 37: Capital Expenditure
Capital Expenditure Capital Expenditure by Project Type Increase in capex on Product development / R&D / Supply due (US$m) 2010 2011 to expansion of CURV production facility, doubling capacity of Retail 9.5 16.0 Hungary plant Increase in capex on Retail due to Product Development / R&D/ Supply 9.2 1
Slide 38: Shareholder Information
Shareholder Information Shareholder Information as of February 27, 2012 Shares outstanding 1,407,137,004 Price high/low (HK$) 9.12 / 16.88 Amounts below stated in US$ EPS (US$) $0.06 Adjusted EPS (US$) $0.10 Recommended distribution to shareholders (US$) $30,000,000 Payout ratio 34.6% Distribution p
Slide 39: Samsonite 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 Samsonite Hang Seng Index Page 39
Slide 40: Agenda
Agenda Results Highlights Business Overview Financial Highlights Outlook and Strategy for 2012 Q&A Page 40
Slide 41: Outlook & Strategy for 2012
Outlook & Strategy for 2012 Leverage strength of Samsonite and American Tourister brands to achieve continued growth in all regions Expect to continue strong double-digit sales growth with slightly higher Adjusted EBITDA and Adjusted Net Income margins Growth forecasts supported by positive outlook
Slide 42: New Product Launches in 2012 – Asia
New Product Launches in 2012 – Asia Samsonite Aerial American Tourister MV+ Samsonite Black Label Monttel Leather Business Bag Page 42 American Tourister Astrono - Lite
Slide 43: New Product Launches in 2012 – Asia
New Product Launches in 2012 – Asia American Tourister Prismo Samsonite Herios Samsonite Black Label Baron Luggage Page 43 Samsonite Fomma
Slide 44: New Product Launches in 2012 – Europe
New Product Launches in 2012 – Europe Samsonite Samsonite Firelite B-Lite DLX Samsonite Paradiver Page 44 Samsonite Litesphere
Slide 45: New Product Launches in 2012 – Europe
New Product Launches in 2012 – Europe Samsonite S’Cure Samsonite Essensis Samsonite Inova Page 45 Samsonite Avior
Slide 46: New Product Launches in 2012 – North America
New Product Launches in 2012 – North America Samsonite EZ Carts Samsonite Ripstop Rolling Duffel Samsonite Winfield 2 American Tourister Atmosphera Samsonite Leather Business Page 46
Slide 47: New Product Launches in 2012 – North America
New Product Launches in 2012 – North America Samsonite Samsonite VizAir Hyperspace Samsonite Aspire Sport American Tourister iLite Supreme Page 47
Slide 48: Agenda
Agenda Results Highlights Business Overview Financial Highlights Outlook and Strategy for 2012 Q&A Page 48
Samsonite International — FY2011 Earnings Presentation on 6ix