Samsonite Group S.a. · HKEX:1910
Samsonite — Samsonite International — H1 2013 Earnings Presentation
43 slides from Samsonite's earnings presentation, August 2013
Slide 1: 2013 Interim Results
miniconite | ernati 2013 Interittt Results Sams@nite
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 2nd Half 2013 Q&A Page 3
Slide 4: First Half 2013 Results Highlights
First Half 2013 Results Highlights Record first half net sales with constant currency growth of 16.5% Net Sales Adj. EBITDA Adj. Net Income Adjusted Net US$m $137.0 16.2% US$m $27.2 19.9% US$m $4.8 5.4% Income growth of 17.6%, after 1,200 180 100 excluding $164 $93 160 90 $88 certain tax $984 1,000
Slide 5: Key Financial Highlights
Key Financial Highlights Net Sales Gross Margin Net sales increased by 16.5% on a constant currency basis to a record first half US$983.6 million. US$m $137.0 16.2% US$m $67.4 14.8% Currency fluctuation had a negative impact of 1,200 600 US$3.0 million on year-over-year sales, driven mostly by the d
Slide 6: Key Financial Highlights
Key Financial Highlights Adj. EBITDA Adj. Net Income US$m $27.2 19.9% Adjusted EBITDA up 19.9% driven by sales US$m $4.8 5.4% growth and 50bp improvement in Adjusted 180 EBITDA as a percentage of sales. Margin 100 $164 $93 improvement despite lower gross margin is $88 due mainly to: 160 90 $137 Slig
Slide 7: Agenda
Agenda Results Highlights Business Overview Financial Overview Outlook and Strategy for 2013 Q&A Page 7
Slide 8: Business Highlights
Business Highlights Record net sales performance with all regions contributing constant currency growth, led by North America +30.2%(1) and Asia +15.5%. Health of the business is underpinned by a strong world travel market, with growth of 12 million international tourist arrivals in the first four m
Slide 9: Strong Sales Growth in All Regions
Strong Sales Growth in All Regions Net Sales Growth by Region Continued strong constant currency growth in Asia driven by American Tourister and led by South Korea, China and US$m 14.0% 30.2% 7.0% 8.1% Japan. The devaluation of the INR and JPY to the USD has $400 had a negative impact of US$8.8 mill
Slide 10: Asia – Continued strong growth and profitability
Asia – Continued strong growth and profitability even as key market economies of China and India begin to moderate On a constant currency basis, Asia net sales are up 15.5%, with all countries posting growth from prior year. Growth Net Sales Adjusted EBITDA leaders include South Korea +33.7%, China
Slide 11: China – Continued Growth Despite Macro-economic Headwinds
China – Continued Growth Despite Macro- economic Headwinds Net Sales Sales Mix Sales growth of 8.1% on a constant currency basis US$ $8.7 10.3% 1H 2012 is coming mainly from: 100 $93.4 American Tourister, up from 29% of total 90 $84.7 sales to 38%, while Samsonite is down from 29% 71% to 62% of tota
Slide 12: North America – Tremendous growth in a mature and competitive market
North America – Tremendous growth in a mature and competitive market Net sales growth of 30.2%. Excluding acquisitions of High Sierra and Hartmann, sales increased 10.0% despite relatively flat industry performance. Sales growth driven by: Net Sales Adjusted EBITDA 34.0% increase in Wholesale sales,
Slide 13: Europe – Growth of 6.9% on a constant currency basis
Europe – Growth of 6.9% on a constant currency basis, despite lingering macroeconomic challenges On a constant currency basis, sales growth was 6.9%, led by Russia (+32.0%)(1), Germany (+13.0%)(1), UK (+18.1%)(1) and Norway (+43.7%)(1). Net Sales Adjusted EBITDA US$ $15.5 7.0% US$ The Eurozone crisi
Slide 14: Latin America – Sales growth of 5.2% on constant currency basis
Latin America – Sales growth of 5.2% on constant currency basis, with strong results in Chile Sales increased 5.2% on a constant currency basis. Excluding Argentina, sales growth of 8.2% on a constant currency basis. Net Sales Adjusted EBITDA Strong sales growth in Chile, up 15.9%(1). US$ $4.6 8.1%
Slide 15: Sales in Key Markets
Sales in Key Markets Strong constant currency growth in all key markets, except Italy and Spain US$m $350 1H 2012 1H 2013 $296.5 $300 $250 $225.7 $200 Currency rate volatility is having a Markets impacted by significant negative impact on the macroeconomic USD results for Japan and India. challenges
Slide 16: Sales in Emerging Markets
Sales in Emerging Markets Continued brand penetration driving growth in emerging markets US$m $25 1H 2012 1H 2013 $19.8 $20 $15.3 $15 Decrease due to transition from a distributor model to a $11.5 direct model. $9.8 $10 $9.1 $8.6 $8.3 $6.8 $6.3 $5.6 $5.1 $5 $3.9 $4.2 $3.4 $3.0 $2.9 $2.7 $2.2 $0 Russ
Slide 17: Strong Sales Growth in All Brands
Strong Sales Growth in All Brands Net Sales Growth by Brand US$m 5.1% 25.0% n/m 32.8% $800 Continued growth in Samsonite with net sales up 5.5% on a constant currency $700 $668.2 basis $635.7 1H 2012 North America +8.2%(1), Europe $600 1H2013 +5.5%(1), Asia +4.6%(1), Latin America -7.6%(1) $500 Stro
Slide 18: Portfolio of Brands Expanded With the High Sierra and Hartmann Acquisitions
Portfolio of Brands Expanded With the High Sierra and Hartmann Acquisitions 2012 2013 0% 5% 6% 5% 20% 21% 68% 75% Samsonite American Tourister Hartmann & High Sierra Other Sales of Samsonite up US$32.5 million or 5.1% American Tourister sales up US$41.2 million or 25.0%, driven largely by Asia where
Slide 19: Asia
Asia High quality and sophisticated products for the professional and seasoned business traveler and road warrior Cosmolite B-Lite Black Label – Lider Red – Pro-Dlx3 Newyorker Cubelite Red – Packer Red – Topline 4 Page 19 Torus
Slide 20: North America
North America High quality and sophisticated products for the professional and seasoned business traveler and road warrior Silhouette Hyperspace Sphere - SS Duffel FullTilt LIFT 3Gusset Silhouette PFT Sphere - HS Backpack Page 20
Slide 21: Europe
Europe High quality and sophisticated products for the professional and seasoned business traveler and road warrior Wander-Full Ergo-Biz Spectrolite S’Cure Motio Firelite X-Blade Business Univ-Lite Page 21
Slide 22: Latin America
Latin America High quality and sophisticated products for the professional and seasoned business traveler and road warrior Bristol Spark Argon iLite Blast Glide Sharp Motio Locus Estambul Page 22
Slide 23: Asia
Asia Entry level product range for the value- conscious consumer MV+ Vivolite AT Smart HS MV+ Speedair Page 23
Slide 24: Americas & Europe
Americas & Europe Entry level product range for the value- conscious consumer Atmosphera Colora II Toulouse iLite Supreme DeLite Prismo Page 24
Slide 25: High quality and cool casual and outdoor adventure products
High quality and cool casual and outdoor adventure products for the road warrior / adventure traveler and outdoor enthusiast Hydration Packs Back-to-School Backpacks Frame Packs Back-to-School Daypacks Endeavor Luggage Page 25
Slide 26: Heritage luxury products for the sophisticated leisure traveler
Heritage luxury products for the sophisticated leisure traveler J Hartmann Intensity Tweed Collection Reserve Collection Hudson Wings Collection Collection Packcloth Page 26
Slide 27: Strong Sales Growth Across All Major Product Categories
Strong Sales Growth Across All Major Product Categories Net Sales Growth by Product Category Travel remains our largest product category and traditional strength with 11.0% constant currency US$m 10.5% 120.8% 10.9% -1.3% 0.1% growth. $800 $724.6 Casual category net sales rose 118.6%(1). $700 $655.8
Slide 28: Continued Expansion in Points of Sale
Continued Expansion in Points of Sale Total Points of Sale Over 350 POS added in Asia Retail Wholesale +265 in India (201 wholesale, 64 retail) 47,000 45,679 45,025 654 +72 in China (52 wholesale, 20 retail) 45,000 1,141 Over 6,700 total POS in region at June 30, 2013 1,014 127 43,000 POS in Latin A
Slide 29: Selection of Recently Opened Stores
Selection of Recently Opened Stores Black Label, Grand Front, Osaka, Japan Samsonite Leather, Gingko Department Store, Kunming, Yunnan, China American Tourister, Ban Ciao Mega City, Taipei, Taiwan Red Label, Hyundai Coex, Korea Page 29
Slide 30: Selection of Recently Opened Stores
Selection of Recently Opened Stores SAMSONITE Warsaw, Poland SAMSONITE SAMSONITE Moscow, Russia Vienna, Austria Page 30
Slide 31: Advertising campaigns continue to drive sales growth in all regions
Advertising campaigns continue to drive sales growth in all regions Advertising Spend Advertising spend is up US$1.0 million, from US$63.1 million to US$64.1 million. US$m 2012 Advertising spend of 6.5% of sales in 1H $35 $32.5 2013 2013 compared to 7.4% in 1H 2012: $30 $28.1 Strong sales growth, pa
Slide 32: Targeted Brand & Product Advertising: Asia
Targeted Brand & Product Advertising Asia Samsonite Red Campaign American Tourister Firelite Campaign Take on the World Campaign Print - Germany Page 32
Slide 33: Targeted Brand & Product Advertising: North America
Targeted Brand & Product Advertising North America Print - Germany Boston Logan International Airport Page 33
Slide 34: Targeted Brand & Product Advertising: Europe
Targeted Brand & Product Advertising Europe Shop windows Airports TV Advertising Print - Germany Print Online Page 34 Tram Advertising - Austria In Store
Slide 35: Agenda
Agenda Results Highlights Business Overview Financial Overview Outlook and Strategy for 2013 Q&A Page 35
Slide 36: Key Financial Highlights
Key Financial Highlights Adjusted EBITDA margin continues to improve, up 50bps from 1H 2012 to 16.6%. Adjusted net income up 17.6%, after excluding certain tax benefits recognized during the first half of 2012. Net cash position increased US$40.2 million from December 31, 2012 to US$156.2 million as
Slide 37: Steady Improvements Made in Adjusted EBITDA
Steady Improvements Made in Adjusted EBITDA US$m 180 $164 160 $150 $137 140 $130 $118 120 100 80 60 15.8% 15.9% 16.1% 16.2% 16.6% 40 20 0 Page 37
Slide 38: Strong Balance Sheet
Strong Balance Sheet Net cash position of US$156.2 US$m June 30, December 31, June 30, $ C hg J un- 13 % C hg J un- 13 million as of June 30, 2013, up 2013 2012 2012 v s . J un- 12 v s . J un- 12 $40.2 million from December 31, Cash and cash equivalents 164.4 151.4 202.1 (37.7) -18.7% 2012 driven by
Slide 39: Efficiently Managing Working Capital
Efficiently Managing Working Capital US$m June 30, December 31, June 30, $ Chg Jun-13 % Chg Jun-13 Net working capital efficiency of 13.5% is slightly 2013 2012 2012 vs. Jun-12 vs. Jun-12 better than target level of 14.0%. Working Capital Items Inventories $ 267.9 $ 277.5 $ 251.3 $ 16.6 6.2% Invento
Slide 40: Capital Expenditure
Capital Expenditure Capital Expenditure by Project Type 2013 retail capex consists mainly of new (US$ MM) H1 2012 H1 2013 stores and remodels in Asia of US$3.5 million, North America of US$3.1 million and Europe of US$2.3 million. Product Development / R&D/ Supply 3.8 4.9 Capex on Product developmen
Slide 41: Agenda
Agenda Results Highlights Business Overview Financial Overview Outlook and Strategy for 2013 Q&A Page 41
Slide 42: Outlook & Strategy for 2013
Outlook & Strategy for 2013 Continue to gain market share and drive organic growth by leveraging the strength of our brands; Samsonite, American Tourister, High Sierra and Hartmann. Introduce new and innovative product designs, adapted to the needs of consumers in different markets, while maintainin
Slide 43: Agenda
Agenda Results Highlights Business Overview Financial Overview Outlook and Strategy for 2013 Q&A Page 43
Samsonite International — H1 2013 Earnings Presentation on 6ix