Samsonite Group S.a. · HKEX:1910
Samsonite — Samsonite International — FY2023 Earnings Presentation
45 slides from Samsonite's earnings presentation, Mar 13, 2024
Slide 1: Samsonite International S.A. March 13, 2024
MARCH 13, 2024 Samsonite International S.A. Stock Code: 1910
Slide 2: Disclosure Statement
o) 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
Slide 3: Agenda
S AGENDA O1 O2 OS O4 Business Update Financial Highlights Outlook Q&A
Slide 4: Business Update
BUSINESS UPDATE
Slide 5: Packing up Profits: An Amazing FY 2023 for Samsonite International
« Packing up Profits: An Amazing FY 2023 for Samsonite International * Our 2023 sales improved to US$3,682 million, an increase of 30.4% from 2022, driven by growth in all our brands with accelerated growth in our higher margin Samsonite and Tumi brands. * Achieved full year Adjusted EBITDA of US$70
Slide 6: FY 2023 Financial Highlights
°FY 2023 Financial Highlights Adjusted . Net Sales EBITDA No UES aoe INC Sams@nite Income US$3,682 mil US$709 million _ TOMORROW US$392 million IS HERE 19.3% margin +30.4% M2) vs. FY ‘2: +32.5% vs. FY ‘22 | YMDWD vs. FY 19 +290 bps vs. FY ’22 +81.8% vs. FY 19 +580 bps vs. FY 19 a eee Gross Margin A&
Slide 7: Q4 2023 Financial Highlights
°Q4 2023 Financial Highlights Net Sales US$948 million +15.8% vs. Q4 ‘22 HIB ABVQEVA Vs. Q4 19 Gross Margin US$568 million 59.9% margin +340 bps vs. Q4 ’22 +580 bps vs. Q4 19 nt currency ba purposes, prior yi Adjusted EBITDA US$181 million 19.1% margin +170 bps vs. Q4 ’22 +400 bps vs. Q4 19 A&P Spen
Slide 8: +580 bps improvement, even with advertising up
$3,389.4 (adjusted for Speck, Russia, & 19.3% 3rd party ebags) +US$293 mil $2,869.9 growth in (adjusted for +580 bps 2023, or Russia) improvement, even +19.7% +US$237 mil constant +US$813 mil growth in with advertising up growth in +140 bps or US$52 mil currency 2023 2023 growth 16.4% 13.5% Net sale
Slide 9: Strong net sales growth across portfolio; accelerated growth in Tumi and Samsonite
6 Strong net sales growth across portfolio; accelerated growth in higher-margin Tumi and Samsonite brands $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $o Sams@nite 2022 GREGORY. $1,849.0 eS “ ; 2022 (1) Stated on a constant currency basis. (2) For comparative purposes, prior year sa
Slide 10: Samsonite sales by region
North America – Samsonite sales Asia – Samsonite sales Consolidated – Samsonite sales +US$404.7 mil 30.7%(1)(2) Europe – Samsonite sales Latin America – Samsonite sales
Slide 11: Amplifying Our Reach: Leveraging key partnerships for brand growth
« Amplifying Our Reach: Leveraging key partnerships for brand growth USA » Sams@nite Gymnastics * Samsonite and USA Gymnastics announced a one-year partnership in February 2024, with Samsonite becoming the official luggage partner for the U.S. National Team members. * Samsonite will support the USA
Slide 12: Tumi sales by region
North America – Tumi sales Asia – Tumi sales Consolidated – Tumi sales +US$224.3 mil 36.0%(1)(2) Europe – Tumi sales Latin America – Tumi sales
Slide 13: Expanding our presence and product lines in the non-travel category
6 Expanding our presence and product lines in the non-travel category to engage our core consumers and reach a new customer base TOM | fy § TMi | LPGA. OFFICIAL LUGGAGE OF THE PGA TOUR OFFICIAL LUGGAGE OF THE LPGA * Tumi announced multiyear partnerships in January 2024 with the PGA Tour and the LPGA
Slide 14: American Tourister sales by region
North America – American Tourister sales Asia – American Tourister sales Consolidated – American Tourister sales +US$135.2 mil 29.1%(1)(2) Europe – American Tourister sales Latin America – American Tourister sales 0.5%(1)(2)
Slide 15: 44 of the 67 net store openings came from Asia
(1) 44 of the 67 net store openings came from (1) the Asia region (10 Tumi stores, 34 Samsonite stores). ($ in millions) 2019 2022 2023 Retail Store Sales $939 $778 $1,035 (2)(3) % growth vs. 2022 35.1% (2)(3) % growth vs. 2019 24.4% Avg Sales per Store $0.752 $0.790 $0.984 (2)(3) % growth vs. 2022
Slide 16: Tumi Omotesando Flagship Opening
* Tumi Omotesando Flagship Opening * On December 20th, TUMI opened its first Asia-Pacific global flagship with a one-of-a- kind store expression, inspired by TUMI’s iconic and loved 19D aluminum collection, located in the heart of Omotesando, Tokyo, Japan. The store boasts 2,000 square feet with alu
Slide 17: Tumi Omotesando Flagship Opening
* Tumi Omotesando Flagship Opening + Perceptual Artist Michael Murphy designed a custom art installation for this special retail flagship, inspired by TUMI’s signature 19 Degree Aluminum collection and constructed from aluminum materials. * Murphy created an illusion of a 19D Aluminum piece morphing
Slide 18: New Samsonite stores in Anseong, Korea and Shanghai, China
New Samsonite store in Anseong, Korea Opened October 31, 2023 New Samsonite store in Shanghai, China Opened December 28, 2023
Slide 19: New Samsonite store on Avenue George V in Paris
New Samsonite store on Avenue George V in Paris, France Opened January 10, 2024
Slide 20: Refurbishment of Samsonite Store in Vienna
O L D N E W Refurbishment of our Samsonite Store in Vienna, Austria – November 2023
Slide 21: DTC and Wholesale E-commerce Net Sales Growth
• DTC and Wholesale E-commerce Net Sales Growth Speck ebags ebags brand brand ebags (3rd party) ebags brand • 16.4% 18.0% 18.2% Total E-comm % of Net Sales • Wholesale E-commerce Partnerships with leading online marketplaces
Slide 22: DTC Ecomm Net Sales by region
North America – DTC Ecomm Net sales Asia – DTC Ecomm Net sales Consolidated – DTC Ecomm Net sales • Speck ebags brand +US$97.1 ebags mil brand Speck 34.8%(1)(2) ebags ebags brand brand ebags ebags (3rd party) brand ebags ebags brand (3rd party) Europe – DTC Ecomm Net sales Latin America – DTC Ecomm
Slide 23: Our Responsible Journey: Product, Planet and People pillars
®° We continue to make significant progress on Our Responsible Journey across our Product, Planet and People pillars Sustainability Management Product Pillar Progress = Onboarded new sustainability team. = Raised the share of net sales that came from products made at least in part from recycled mate
Slide 24: Our Responsible Journey: Planet and People progress
® We continue to make significant progress on Our Responsible Journey across our Product, Planet and People pillars Planet Pillar Progress = 100% renewable electricity used in own operations, two years ahead of our 2025 target date. = 85% decrease in GHG emissions normalized by revenue compared to o
Slide 25: Our Responsible Journey - Looking Ahead
* Our Responsible Journey - Looking Ahead Our Focus for 2024 = Based on our materiality assessment results, finalize new targets and develop roadmaps for the coming Sams6nite years with a focus on product sustainability, climate, and human rights. " Further advance our ESG metrics and prepare for th
Slide 26: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 27: FY 2023 Results Highlights
*FY 2023 Results Highlights us$m Adj. Net Income US$803 million, or 30.4%), compared to the prior year driven by strong performance in all regions with Asia delivering 61.7%” growth. (1) Stated on a constant currency basis. 350bp from 2022 and was up 390bp from 2019, with all regions showing improve
Slide 28: Financial Highlights
* Financial Highlights + Fixed SG&A expenses for 2023 were 22.7% of net sales, which is a 460bp improvement from 2019 as we have maintained a more efficient operating structure achieved through the comprehensive cost reduction program in 2020 - 2021 even as net sales have significantly increased. +
Slide 29: Constant Currency Growth by region
Constant Currency Growth 61.7% 13.7% 16.8%(1) 25.7%
Slide 30: Asia: Adjusted EBITDA margin expansion and sales recovery
6 Significant Adjusted EBITDA margin expansion and sales recovery in Asia benefited the consolidated Company * Asia’s 2023 net sales were up +61.7% from the prior year, and +20.1%” vs. 2019 driven by strong growth across our portfolio of brands in the region. * The sales recovery, coupled with stron
Slide 31: North America results
• ebags (3rd party) Speck • • Indicates % of net sales
Slide 32: Europe results
• • Russia • • Indicates % of net sales
Slide 33: Latin America sales growth across all countries
* Latin America sales growth across all countries * 2023 net sales were up +25.7%” compared to prior year, | Net Sales Adjusted EBITDA and +71.6%" vs. 2019 driven by strong growth across all $29.1 our brands within the region. Mexico, Chile, and Brazil, $225 our three largest markets within the regi
Slide 34: Comparison of net sales by channel
Comparison of net sales by channel 2022 - Retail growth of +35.1%(1)(2). With 67 net new stores and comp store growth of +28.9%(1) 2023 compared to prior year. US$2,879.6 million US$3,682.4 million - DTC E-Commerce growth of +34.8%(1)(2) - Wholesale and Other(3) growth of +27.6%(1)(2) DTC total = 37
Slide 35: Store counts by region
• North America – 91 North America – 92 Asia – 267 Asia – 301 Europe – 154 Europe – 157 Latin America - 165 Latin America - 171 • • North America – 177 North America – 182 Asia – 94 Asia – 104 Europe – 33 Europe – 38 Latin America - 4 Latin America - 7 •
Slide 36: Comparison of travel vs. non-travel net sales
Comparison of travel vs. non-travel net sales 2022 2023 US$2,879.6 million US$3,682.4 million - Travel growth of +31.2%(1)(2) - Non-Travel growth of +28.9%(1)(2) Travel Non-Travel
Slide 37: Continued to benefit from operating leverage
*« Continued to benefit from operating leverage as we delivered strong net sales growth SG&A within Adjusted EBITDA $1,600 $1,524.6 $1,473.5 ° Fixed SG&A expenses as a percentage of net sales for 2023 improved by 140bp from 2022 as we 1,400 ° generated strong net sales growth with a very $1,200 effi
Slide 38: Balance sheet summary
• US$m December 31, December 31, $ Chg Dec-23 % Chg Dec-23 2022 2023 vs. Dec-22 vs. Dec-22 Cash and cash equivalents 635.9 716.6 80.7 12.7% Trade and other receivables, net 290.9 319.6 28.7 9.9% Inventories, net 687.6 695.9 8.2 1.2% • Other current assets 80.1 103.5 23.4 29.3% Non-current assets 3,0
Slide 39: Adjusted EBITDA vs. Free Cash Flow
Adjusted EBITDA vs. Free Cash Flow(1) (1)
Slide 40: Working Capital Items
US$m December 31, December 31, $ Chg Dec-23 % Chg Dec-23 2022 2023 vs. Dec-22 vs. Dec-22 • Working Capital Items Inventories $ 687.6 $ 695.9 $ 8.2 1.2% Trade and Other Receivables $ 290.9 $ 319.6 $ 28.7 9.9% Accounts Payable $ 583.3 $ 500.4 $ (82.9) -14.2% Net Working Capital $ 395.3 $ 515.1 $ 119.8
Slide 41: Capital Expenditures
• US$m 2022 2023 Retail 21.7 56.5 Product Development / R&D / Supply 21.4 29.4 • Information Services and Facilities 7.2 11.6 • Software 11.1 10.8 Other 1.3 1.8 Total Capital Expenditures 62.8 110.1 •
Slide 42: Outlook
OUTLOOK
Slide 43: Outlook
°* Outlook + Looking to 2024, global travel and tourism growth is expected to remain healthy. Asia is expected to continue to see robust travel growth in 2024, as outbound travel from China continues to improve. In markets that reopened earlier, including North America and Europe, travel is expected
Slide 44: Q&A
QSA
Slide 45: Thank You
THANK YOU.
Samsonite International — FY2023 Earnings Presentation on 6ix