Samsonite Group S.a. · HKEX:1910
Samsonite — Samsonite International — FY2013 Earnings Presentation
51 slides from Samsonite's earnings presentation, Mar 19, 2014
Slide 1: 2013 Annual Results
Sams@nite 2013 Annual Results March 19, 2014 Samsonite International S.A.
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 Outlook and Strategy for 2014 Q&A Page 3
Slide 4: 2013 Results Highlights
2013 Results Highlights Constant currency net sales growth of 16.1% Net Sales Adj. EBITDA Adj. Net Income US$m $266.1 15.0% US$m $51.2 17.9% US$m $22.0 13.2% 16.6% growth 2,500 400 200 $189 excluding 1st year stock compensation $2,038 350 $338 180 $167 costs of US$5.8m million, net of tax. 2,000 160
Slide 5: Key Financial Highlights
Key Financial Highlights Net Sales: Net Sales Gross Margin Net sales increased by 16.1% on a constant currency basis US$m $266.1 15.0% US$m $137.3 14.4% to a record US$2,038 million. 2,500 1,200 Currency fluctuation had a negative impact of approximately $1,088 US$18 million on year-over-year sales,
Slide 6: Key Financial Highlights
Key Financial Highlights Adjusted EBITDA: Adj. EBITDA Adj. Net Income Adjusted EBITDA is up 17.9% driven by sales growth and 40bp improvement in adjusted EBITDA as a percentage of US$m $51.2 17.9% US$m $22.0 13.2% sales. Adjusted EBITDA margin improvement despite slightly lower gross margin is due m
Slide 7: Agenda
Agenda Results Highlights Business Overview Financial Overview Outlook and Strategy for 2014 Q&A Page 7
Slide 8: Business Highlights
Business Highlights Record net sales performance with all regions contributing strong year-over-year growth on a constant currency basis. Strong sales growth in travel, casual and accessories categories underpinned by robust growth in world travel and supported by product innovation and marketing. “
Slide 9: Strong Sales Growth in All Regions
Strong Sales Growth in All Regions Net Sales Growth by Region Continued strong constant currency growth in Asia led by South Korea +27.9%, India +18.3%, Japan +18.6% and 12.3% 24.4% 10.7% 9.8% China +5.3%, driven by American Tourister and Samsonite US$m Red. $900 North America achieved tremendous sa
Slide 10: Asia – Continued strong growth and profitability
Asia – Continued strong growth and profitability led by South Korea, India and Japan(1) Net Sales Adjusted EBITDA On a constant currency basis, Asia net sales are up 15.6% with all markets posting growth from prior year: US$ $84.2 12.3% US$ $20.9 15.7% 900 American Tourister and Samsonite sales up 1
Slide 11: Key Asia Markets - Continued strong growth
Key Asia Markets - Continued strong growth in all key markets except for China(1) China growth has moderated to 5.3% on a constant currency basis, coinciding with US$m $250 the slowdown in China’s GDP growth rate 2012 2013 and Chinese consumer sentiment. $200 $192.2 South Korea constant currency gro
Slide 12: China Sales - 9.4% of Total Company Sales
China Sales - 9.4% of Total Company Sales China Sales Trend US$ China sales growth of 7.9% to US$192.2 million from Y-O-Y Growth: 38.4% 57.4% 23.1% 7.9% 250 US$178.0 million. $192.2 Growth in China on a constant currency basis has 200 $178.0 moderated to 5.3% driven mainly by: $144.6 Overall economi
Slide 13: North America – Continued strong growth in a mature market
North America – Continued strong growth in a mature and competitive market Net sales growth of 24.4%. Excluding acquisitions of High Sierra and Hartmann, sales increased 14.0%. Net Sales Adjusted EBITDA Sales growth, excluding acquisitions, were driven by 16.3% increase in U.S. wholesale sales due t
Slide 14: Europe – Growth of 9.2% on a constant currency basis
Europe – Growth of 9.2% on a constant currency basis, despite lingering macroeconomic challenges On a constant currency basis, sales growth was 9.2%. Net Sales Adjusted EBITDA $49.8 10.7% Excluding Italy (+0.2%)(1) and Spain (-0.3%)(1), where US$ US$ $10.3 12.9% there are still lingering macroeconom
Slide 15: Latin America – Constant currency growth of 11.7%
Latin America – Constant currency growth of 11.7% Sales increased 11.7% on a constant currency basis on strong growth in Chile (+15.7%)(1) and Mexico Net Sales Adjusted EBITDA (+10.2%)(1)(2) and a successful transition from a distributor model to a direct import and sales model in US$ $11.0 9.8% US$
Slide 16: Sales in Key Markets
Sales in Key Markets Strong constant currency growth in all key markets, except Italy and Spain US$m $700 2012 $589.6 2013 $600 $500 $469.8 Currency rate volatility is having a significant negative impact on the USD results $400 for Japan and India. $300 $192.2 $200 $178.0 $161.2 $122.9 $102.3 $110.
Slide 17: Sales in Emerging Markets
Sales in Emerging Markets Continued brand penetration driving growth in emerging markets US$m $50 2012 $44.7 $45 2013 $40 $35.9 $35 $30 $25 $22.9 $20.2 $19.4 $19.6 $20 $17.8 $18.2 $13.4 $15 $11.7 $9.6 $9.8 $9.2 $10 $8.4 $6.5 $7.0 $4.9 $5.4 $5 $0 Russia Thailand Indonesia Taiwan Turkey Brazil Malaysi
Slide 18: Strong Sales Growth in Key Brands
Strong Sales Growth in Key Brands Net Sales Growth by Brand Continued growth in Samsonite across all US$m 9.1% 21.1% 195.3% 16.9% $1,600 regions – net sales up 9.7% on a constant currency basis $1,413.7 $1,400 $1,295.7 North America +12.9%(1), Europe 2012 +8.6%(1), Asia +8.0%(1), and Latin $1,200 20
Slide 19: High Sierra and Hartmann – Poised for launch in new markets worldwide
High Sierra and Hartmann – Poised for launch in new markets worldwide Hartmann product lines have been revitalized throughout 2013 for a highly anticipated 2014 “re-launch” in North America. Asia to launch Hartmann as a luxury brand in Q2 2014, largely concentrated initially in Japan and South Korea
Slide 20: Samsonite Red Label - A growing casual brand in Asia
Samsonite Red Label - A growing casual brand in Asia Samsonite Red is a casual brand that has had tremendous success in South Korea since its launch in 2010. Building on the success of the brand in South Korea, Samsonite Red has been recently introduced in other Asia markets with promising results,
Slide 21: Samsonite – Asia
Samsonite – Asia High quality and sophisticated products for the professional and seasoned business traveler and road warrior Firelite Torus Inova Pro-DLX3 Black Label - Lider Synnconn Samsonite Red Page 21 Optimum Newyorker
Slide 22: Samsonite - Americas
Samsonite - Americas High quality and sophisticated products for the professional and seasoned business traveler and road warrior Tektonic – Medium Backbacks Xenon 2 – Slim Brief Tektonic PFT Sharp Carbonate 360 LIFT Silhouette Sphere Collection Winfield 2 Tektonic – Glide Large Backbacks Business L
Slide 23: Samsonite – Europe
Samsonite – Europe High quality and sophisticated products for the professional and seasoned business traveler and road warrior Pro-DLX3 S’Cure Spectrolite B-Lite Cosmolite Ergo-Biz Motio Paradiver Sammies Wander-FULL Page 23
Slide 24: American Tourister
American Tourister Entry level product range for the value-conscious consumer ASIA EUROPE NORTH AMERICA Atmosphera HS MV+ Pasadena Prismo ILITE Supreme MV+ Page 24
Slide 25: High Sierra
High Sierra High quality and cool casual and outdoor adventure products for the road warrior / adventure traveler and outdoor enthusiast Classic 2 Hydration Collection Classic 2 Hiking Collection Trapezoid Boot Bag XBT Collection Sportour Collection Page 25 BTS Backpacks AT7 Collection
Slide 26: Hartmann
Hartmann Heritage luxury products for the sophisticated leisure traveler Tweed Collection Wings Collection Hudson Belting Collection InnovAire Collection Page 26
Slide 27: Other Brands
Other Brands Xtrem, Saxoline, Secret Xtrem Secret Saxoline Page 27
Slide 28: Strong Sales Growth in Travel and Casual Product Categories
Strong Sales Growth in Travel and Casual Product Categories Travel remains our largest product category Net Sales Growth by Product Category and traditional strength with all regions US$m 11.7% 87.6% 2.1% 7.6% 3.3% contributing to 12.8% constant currency $1,600 $1,515.9 growth. $1,400 $1,357.1 Casua
Slide 29: Continued Expansion in Points of Sale
Continued Expansion in Points of Sale Net new wholesale points of sale coming largely from: Total Points of Sale Asia added approximately 400 wholesale POS, mainly in Australia, China and India. Europe added approximately 175 wholesale POS, mainly in Russia, Turkey and Germany. Retail Wholesale 47,0
Slide 30: Selection of Recently Opened Stores
Selection of Recently Opened Stores Pangyo, Korea Shenyang Wanda Shopping Mall, Shenyang, China Ningbo Century Oriental Plaza, Ningbo, China Inorbit Vashi, India Page 30 Shenzhen Airport SBL, Shenzhen, China
Slide 31: Selection of Recently Opened Stores
Selection of Recently Opened Stores Europeisky Shopping Mall, Moscow, Russia Warsaw, Poland Page 31 Tel Aviv, Israel Plaza Norte Secret Store, Santiago, Chile
Slide 32: 10% Increase in Advertising Spend
10% Increase in Advertising Spend Advertising Spend US$m 2012 Total = US$117 million Advertising spend increased 10.2%(1) from $60 $53.5 $54.2 2013 Total = US$129 million US$117.2 million in 2012 to US$129.2 $50 million in 2013. $40 $37.3 $32.6 Advertising spend as a percentage of sales $31.8 $30 $2
Slide 33: Targeted Brand Advertising Asia - Samsonite
Targeted Brand Advertising Asia - Samsonite Page 33
Slide 34: Targeted Brand Advertising Asia – American Tourister
Targeted Brand Advertising Asia – American Tourister Page 34
Slide 35: Targeted Product Advertising North America - Samsonite
Targeted Product Advertising North America - Samsonite Page 35
Slide 36: Targeted Brand Advertising North America – American Tourister
Targeted Brand Advertising North America – American Tourister Page 36
Slide 37: Targeted Product Advertising Europe - Samsonite
Targeted Product Advertising Europe - Samsonite Page 37
Slide 38: Targeted Product Advertising Latin America
Targeted Product Advertising Latin America Travel Luggage – Targeting 25-35 year "Secret Moments“ - The Secret woman is cosmopolitan, natural and very old men and women, with intention of feminine. Our target is females aged 25-40 years old. rejuvenating the brand and featuring mobility, lightness o
Slide 39: Agenda
Agenda Results Highlights Business Overview Financial Overview Outlook and Strategy for 2014 Q&A Page 39
Slide 40: Key Financial Highlights
Key Financial Highlights EBITDA margin continues to improve, up 40bps to 16.6% Net cash position of US$210 million as of December 31, 2013. Net working capital efficiency of 12.9% continues to run better than target level of 14%. Capital expenditure of US$57.2 million in 2013 is up from US$37.9 mill
Slide 41: Strong Balance Sheet
Strong Balance Sheet US$m December 31, December 31, $ C hg D e c - % C hg D e c - 2013 2012 13 v s . D e c - 12 13 v s . D e c - 12 Net cash increased by US$93.8 Cash and cash equivalents 225.3 151.4 73.9 48.8% Trade and other receivables, net 246.4 222.2 24.2 10.9% million from US$116.0 million at
Slide 42: Efficiently Managing Working Capital
Efficiently Managing Working Capital Working capital continues to be managed US$m December 31, December 31, $ Chg Dec-13 % Chg Dec-13 efficiently at 12.9% of sales at December 2013 2012 (1) vs. Dec-12 vs. Dec-12 31, 2013. Working Capital Items Inventories $ 298.4 $ 277.5 $ 20.9 7.5% Inventory turnov
Slide 43: Capital Expenditure
Capital Expenditure Capital Expenditure by Project Type 2013 Retail Capex consists mainly of new US$m 2013 2012 stores and remodels in Asia of US$8.8 million, Europe of US$4.5 million and North America of US$4.0 million. Retail 20.5 16.9 Capex on product development / R&D / Supply includes US$9.4 mi
Slide 44: Shareholder Information and Distribution to Shareholders
Shareholder Information and Distribution to Shareholders Shareholder Information as of February 3, 2013 Shares outstanding 1,407,137,004 Stock Price (HK$) 21.50 Amounts below stated in US$ 2013 EPS (US$) $0.125 2013 Adjusted EPS (US$) $0.134 Recommended distribution to shareholders (US$) $80,000,000
Slide 45: Distribution to Shareholders
Distribution to Shareholders Increased distribution to shareholder payout ratio and yield 2012 2013 Distribution to Shareholders (US$M) $37.5 $80.0 Payout Ratio 25.3% 45.4% Distribution Yield 1.20% 2.05% Samsonite Board has recommended to increase distribution to shareholders to bring yield broadly
Slide 46: Samsonite Share Price Performance from IPO
Samsonite Share Price Performance from IPO thru Dec 31, 2013 180.0 Samsonite Hang Seng Index* 160.0 140.0 120.0 100.0 80.0 60.0 * Samsonite share price and Hang Seng Index rebased to 100.0 on date of IPO Page 46
Slide 47: Agenda
Agenda Results Highlights Business Overview Financial Overview Outlook and Strategy for 2014 Q&A Page 47
Slide 48: Robust Growth in Global Travel Underpins Demand for Luggage
Robust Growth in Global Travel Underpins Demand for Luggage The positive results of 2013, and the expected global economic improvement in 2014, set the scene for another positive year for international tourism.(1) For 2014, UNWTO forecast 4% - 4.5% growth, again, above the long- term projections.(1)
Slide 49: Five-Year Trend
Five-Year Trend 2009 to 2013 Sales CAGR of 18.6% and EBITDA CAGR of 56.6% Sales Adj. EBITDA US$m -17.6% 18.1% 28.8% 13.2% 15.0% US$m -53.9% 241.6% 29.3% 15.4% 17.9% 2,250 2,038 400 338 2,000 1,772 350 1,750 287 1,565 300 248 1,500 250 1,215 1,250 1,029 192 200 1,000 150 750 500 100 56 250 50 - - 200
Slide 50: Engines Of Future Growth
Engines Of Future Growth Global expansion of travel & tourism China & India Full exposure to emerging markets Investment behind core brands : exciting products, new materials and increased marketing spend Launches of High Sierra and Hartmann in Europe & Asia Development of new segments : Samsonite R
Slide 51: Agenda
Agenda Results Highlights Business Overview Financial Overview Outlook and Strategy for 2014 Q&A Page 51
Samsonite International — FY2013 Earnings Presentation on 6ix