Csp International Fashion Group Spa · MIL:CSP
Csp International Fashion Group Spa — FY2002 Earnings Presentation
20 slides from Csp International Fashion Group Spa's earnings presentation, Feb 27, 2003
Slide 1: STAR Company results 2002
STAR Company results 2002 Milano, 27th February 2003
Slide 2: Agenda
Agenda l In short l CSP Markets l 2002 Results l Strategies and outlook 2003 l Financials
Slide 3: In short: Mission
In short Mission “To produce and distribute worldwide the best products in the medium/high quality segment, innovating in the traditional business of hosiery and diversifying in underwear ”
Slide 4: Structure of the CSP Group - 2003
In short Structure of the CSP Group - 2003 CSP INTERNATIONAL INDUSTRIA CALZE SPA DIVISION DIVISION SANPELLEGRINO LEPEL OROBLU’ 100% 50% LE BOURGET S.A. SANPELLEGRINO POLSKA
Slide 5: CSP Markets: Brands
CSP Markets Brands - Hosiery - Hosiery - Hosiery - Corsetry - Seamless - Seamless - Seamless - Seamless - Corsetry - Corsetry
Slide 6: Current positioning of CSP brands
CSP Markets Current positioning of CSP brands Social class Age • Sanpellegrino and Lepel are positioned in the same segment in terms of age and social class • Le Bourget and Oroblù are positioned in the same social class
Slide 7: Brands positioning
CSP Markets Brands positioning Channels Boutiques Department Mass Wholesalers stores distribution Positioning channel High price-quality Medium price- quality Basic price-quality Private Labels
Slide 8: CSP Markets: hosiery and underwear market trends
CSP Markets HOSIERY 8 Concentrated market 8 Decreasing consumption 8 Increasing competition 8 Fierce competitiveness UNDERWEAR 8 Fragmented market 8 Increasing consumption 8 Increasing competition 8 Increasing competitiveness
Slide 9: 2002 Results: Positive areas
2002 Results Positive areas 8 Increased market shares q Hosiery q Underwear 8 Underwear increased its share in the product mix: seamless +43%, corsetry +14% 8 Rationalisation of the product ranges 8 Reorganisation of Le Bourget 9
Slide 10: 2002 Results: Problem areas
2002 Results Problem areas Concentration of adverse factors in 4 Q 8 Sharp slowdown in consumption of tights 8 Price competition 8 Weakeness of the dollar 8 High incidence of hosiery in the product mix 8 One-off costs for brand rationalisation 8 Revenues lost on the 2 eliminated lines not offset by
Slide 11: Strategies and outlook 2003: Strategies
Strategies and outlook 2003 Strategies Continue the implementation of the strategy: 4 diversifying and innovating in the underwear market 4 defending volumes in the hosiery market l Increase market share l Innovate in all markets l Improve margins
Slide 12: Strategies and outlook 2003: Outlook
Strategies and outlook 2003 Outlook Top line drivers: ð Diversification in the underwear market ð Increase distribution on potential channels ð Focus on strong brands Profitability drivers: ð Change in the product mix ð Cost reduction: lower complexity in production, logistics and organisation
Slide 13: Consolidated statement of income
Financials Consolidated statement of income GROUP 2002 2001 2002 2001 FY FY 4Q 4Q Net revenues 159,552 163,331 43,043 49,839 EBITDA 17,604 20,325 914 6,958 11.0% 12.4% 2.1% 14.0% EBIT 5,481 8,272 (2,097) 3,925 3.4% 5.1% -4.9% 7.9% EBT (787) 2,031 (4,412) 2,498 -0.5% 1.2% -10.3% 5.0% ‘000 €
Slide 14: Advertising investments
Financials Advertising investments Advertising expenditure (Group) Absolute value mln € 2001 2002 20 11.5% 10.8% 15 18.29 17.58 10 17..5% 15.1% 10.7% 9.3% 5 12.6% 7.54 5..8% 11.5% 7,6% 6.5 4.63 2.68 3.22 3.68 3.23 4.39 0 Q1 Q2 Q3 Q4 FY Period Mio €
Slide 15: Consolidated net sales: breakdown by geographic area
Financials Consolidated net sales: breakdown by GEOGRAPHIC AREA FY 2002 FY 2001 Eastern Eastern Europe Europe 13.6% 14.4% Western Western Europe Europe 10.4% 10.4% Italy Italy 46.1% 44.4% Others 1.6% Other 1.5% France France 26.2% Poland 26.9% Poland 2.1% 2.4%
Slide 16: Consolidated net sales: breakdown by brand
Financials Consolidates net sales: breakdown by BRAND FY 2002 FY 2001 Oroblù Lepel Lepel Oroblù 15.4% 14.0% 13.3% 17.7% Star Way Star Way Private Labels 1.5% Private Labels 0.3% 8.7% 8.4% Le Bourget 21.4% Le Bourget Sanpellegrino 37,6% Sanpellegrino 21.8% Others 37.9% 1.0% Others 1.0%
Slide 17: Consolidated net sales: breakdown by product type
Financials Consolidated net sales: breakdown by PRODUCT TYPE FY 2002 FY 2001 Corsetry Corsetry 16.3% 14,0% Seamless 8,8% Seamless 12,9% Hosiery 70.8% Hosiery 77,2%
Slide 18: Consolidated balance sheet
Financials Consolidated balance sheet 31/12/02 31/12/01 Current assets 130.09 125.01 Current liabilities (42.94) (47.26) Net working capital 87.15 77.75 Equity investments (including own shares) 4.12 6.10 Tangible and intangible fixed assets 62.63 69.31 Capital employed 153.90 153.16 Other medium/lo
Slide 19: Net working capital
Financials Net working capital 2002 2001 FY FY Trade receivables 64,241 66,092 Other receivables 7,749 4,651 Inventories 58,096 54,266 Trade payables due to third parties 35,415 38,941 Other payables 7,525 8,319 Net working capital 87,146 77,749 Net revenues 159,552 163,331 ‘000 €
Slide 20: Thank you
Thank you Contacts: Massimiliano Retta, CEO Arturo Tedoldi, CFO Simone Ruffoni , IRO +39 0376 8101 info.investors@cspinternational.it www.cspinternational.it
CSP International Fashion Group — FY2002 Earnings Presentation on 6ix