Moncler Spa · MIL:MONC
Moncler Spa — Investor Day (2018)
94 slides from Moncler Spa's investor day presentation, 2018
Slide 1: #Moncler2018CMD
#Moncler2018CMD
Slide 2: Agenda of the day
#Moncler2018CMD: THE FUTURE STARTS NOW AGENDA OF THE DAY Fuelling past into future Remo RUFFINI Taking advantage of a fast-changing world Roberto EGGS Consistency and delivery Roberto EGGS Lean and efficient corporate organisation Luciano SANTEL Supply chain excellence Francesca BACCI Financial over
Slide 3: Fuelling past into future
Fuelling past into future Remo RUFFINI (Chairman and Chief Executive Officer)
Slide 4: Moncler walks into the future with energy and uniqueness
MONCLER Moncler walks into the future with energy and uniqueness We want to talk to everyone, everywhere and of all ages New languages and new tools CAPITAL MARKETS DAY 2018
Slide 5: One House Different Voices
ONE HOUSE DIFFERENT VOICES
Slide 6: Moncler
fH GG ZG MONCLER
Slide 7: 1 Flexibility
1/ FLEXIBILITY
Slide 8: 2 Evolution
2/EVOLUTION
Slide 9: 3 Multiplicity
3 / MULTIPLICITY
Slide 10: 4 Uniqueness
4/ UNIQUENESS
Slide 11: 5 Creativity
5 / CREATIVITY
Slide 12: 6 New Codes
6/NEW CODES
Slide 13: 7 A New Kind of Community
7/A NEW KIND OF COMMUNITY
Slide 14: 8 Energy
8 / ENERGY
Slide 15: Moncler's future starts now
MONCLER’S FUTURE STARTS NOW
Slide 16: Know-how, creativity and simplicity
MONCLER Know-how to make it work Creativity and multiplicity to make it magic Simplicity to make it happen CAPITAL MARKETS DAY 2018
Slide 17: Stay tuned!
Stay tuned!
Slide 18: Taking advantage of a fast-changing world
Taking advantage of a fast–changing world Roberto EGGS (Chief Marketing and Operating Officer)
Slide 19: We are ready to take advantage of a fast-changing world
We are ready to take advantage of a fast–changing world
Slide 20: Positive market trends, but uncertainty is the new normal
POSITIVE MARKET TRENDS, BUT UNCERTAINTY AND UNPREDICTABILITY ARE THE NEW NORMAL* POSITIVE GROWTH MOMENTUM …IN UNCERTAIN AND VOLATILE CONTINUES… SCENARIOS Global personal luxury goods market • Macro-political unpredictability is expected to grow at c.+4/5% CAGR, reaching ~300bn Eur in 2020 • Global u
Slide 21: New luxury customers are rising with a new identity
NEW LUXURY CUSTOMERS ARE RISING, WITH A NEW IDENTITY* YOUNGER GENERATIONS WILL DRIVE …WITH NEW DESIRES SECTOR GROWTH… AND NEEDS Future growth will be fuelled From products to experience by generations Y and Z (Next-Gen) From fashion trends to self-expression From regular buying to impulsive behaviou
Slide 22: Climbing new heights
Climbing new heights
Slide 23: Leveraging online to play a key role
ONLINE TO PLAY A KEY ROLE* ONLINE NOT ONLY TO DRIVE SALES… …BUT ALSO COMMUNICATING AND ENGAGING Online sales of personal luxury goods Communication throughout expected to make up 20-25% of the all touchpoints simultaneously market by 2025 Engagement through digital channels Brands’ websites and luxu
Slide 24: Global focus with local touch
GLOBAL FOCUS WITH LOCAL TOUCH* CUSTOMERS BUY LOCALLY… …BUT ALSO WHILE TRAVELLING Local customers are growing Tourist flows remain important in all main markets, in particular in the Western world Travel experience is highly valued in particular among Next-Gen customers European and Americans spend m
Slide 25: Consistency and delivery
Consistency and delivery Roberto EGGS (Chief Marketing and Operating Officer)
Slide 26: We delivered on our promises
We delivered on our promises
Slide 27: Targets achieved: product
TARGETS ACHIEVED: PRODUCT In 2015 we said: «We want to remain at the top edge of outerwear, while developing complementary categories» Solid outerwear growth delivered Knitwear the best performing category Shoes and Leather Goods strong (outerwear < 80% of Moncler revenues in 2017) Revenues (2015 =
Slide 28: Targets achieved: distribution
TARGETS ACHIEVED: DISTRIBUTION In 2015 we said: «We want to have a global, high-quality network of stores. We want to capture travel flows while strongly supporting local demand and to maintain our best-in-class productivity» 28 new DOS in the last 2 years Best-in-class productivity reinforced… 23 r
Slide 29: Targets achieved: client
TARGETS ACHIEVED: CLIENT In 2015 we said: «We want to know our clients, understand their need, increase our data collections and have a personalised way to approach them» We know a higher number of clients We dialogue more frequently with A superior client experience is what than in the past and we
Slide 30: Targets achieved: Moncler client
TARGETS ACHIEVED: MONCLER CLIENT WE KNOW BETTER OUR CLIENT Balanced presence among genders Top spending clients contribute to c.40% Repurchase rate improved… #clients breakdown by gender of business and have been growing Repurchase rate* % clients * % revenues Male Female 25.4% 22.6% 2015 2017 2017
Slide 31: The future starts now
The future starts now
Slide 32: A stronger Moncler ready to face new challenges
A STRONGER MONCLER… PRODUCT DISTRIBUTION CLIENT CLIENT Today we have Today we have Today we stronger collections a higher quality retail network know our clients better and a finer wholesale distribution WE ARE READY TO FACE THE NEW CHALLENGES 32
Slide 33: Challenges the Moncler way
…READY TO CLIMB NEW HEIGHTS CHALLENGES THE MONCLER WAY Clients are changing, Our uniqueness is our strength. they are looking for Our capacity to innovate along new values a stated path is our credo. • Experience 1 Product evolution/Genius • Impulse shopping 2 Communication revolution • Digital 3 Di
Slide 34: A new phase starts in 2018
A NEW PHASE STARTS IN 2018 Revenues 1,200 (Eur M) 900 600 300 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 … 2003–2007 2008–2017 2018 and beyond: 5 years of re-engineering 10 years of expansion The era of digitalisation PRODUCT Icon products, outerwear
Slide 35: Moncler Genius uses new codes
Moncler Genius uses new codes, talks to new clients, goes beyond stated rules, starts new paths
Slide 36: One house, different voices
PRODUCT EVOLUTION: MONCLER GENIUS BUILDING ONE HOUSE, DIFFERENT VOICES Eight different projects defining the unity of Moncler Genius 1 Moncler Pierpaolo Piccioli 2 Moncler 1952 3 Moncler Grenoble 4 Moncler Simone Rocha 5 Moncler Craig Green 6 Moncler Noir Kei Ninomiya 7 Moncler Fragment Hiroshi Fuji
Slide 37: 1 is for pure essence: Pierpaolo Piccioli
1 MONCLER PIERPAOLO PICCIOLI 1 IS FOR PURE ESSENCE Pierpaolo stripped the classic duvet to the clearest shape, following the idea that purity is reached when form reflects essence. His take on functionality has a couture élan. 37
Slide 38: 2 is for pop trademark: Moncler 1952
2 MONCLER 1952 2 IS FOR POP TRADEMARK Moncler’s trademark classics reinterpreted with pop colors and contrasting enlarged logo. Moncler 1952 is an homage to the brand’s year of birth and defines the natural evolution of over 65 years of history, based on technical research and creativity. 38
Slide 39: 3 is for playful flair: Moncler Grenoble
3 MONCLER GRENOBLE 3 IS FOR PLAYFUL FLAIR A peculiar flair for mix and match at work distinguishes Moncler Grenoble. Prints and fabrics, considered wide of the mark for mountain gear, assume a technical quality while keeping the playful sophistication intact.
Slide 40: 4 is for pragmatic femininity: Simone Rocha
4 MONCLER SIMONE ROCHA 4 IS FOR PRAGMATIC FEMININITY Simone had images of daring Victorian climbers in petticoats in mind. She worked on voluminous silhouettes and deconstructed proportions merging a taste for embellishment with the performance quality of Moncler.
Slide 41: 5 is for dress as habitat: Craig Green
5 MONCLER CRAIG GREEN 5 IS FOR DRESS AS HABITAT Craig conceives items that rewrite the dialogue between clothing and body, dress and habitat. «I have always explored ideas of protection and functionality within my work… I thought it would be interesting for these ideas to be pushed further, interpre
Slide 42: 6 is for wearable geometry: Noir Kei Ninomiya
6 MONCLER NOIR KEI NINOMIYA 6 IS FOR WEARABLE GEOMETRY Kei Ninomiya builds impactful silhouettes with Noir by multiplying modules into wearable geometries. For the first time, he applied his own painstaking craft to duvet, even turning it into knit. 42
Slide 43: 7 is for subcultural subtleness: Fragment Hiroshi Fujiwara
7 MONCLER FRAGMENT HIROSHI FUJIWARA 7 IS FOR SUBCULTURAL SUBTLENESS Hiroshi Fujiwara is a cultural fomenter and a pop infiltrator. He has a personal way to subtly tweak items giving them a cult-status spin. He shifted the Moncler duvet to his own parameters. 43
Slide 44: 8 is for going viral: Palm Angels
8 MONCLER PALM ANGELS 8 IS FOR GOING VIRAL Moncler duvet reduced to the essence, with an exercise in merchandising translated into a gift shop, play with slogans and logos to spread the message virally. Moncler Palm Angels is a living museum of contemporary creativity. 44
Slide 45: Moncler Genius
MONCLER GENIUS IUDOUNE Moncler se diversifie ZOUDOUNE en ciblant sa clientéle GRAND HUIT VOGUE 45
Slide 46: Genius creativity hub: a virtuous circle
1 PRODUCT EVOLUTION: MONCLER GENIUS, A VIRTUOUS CIRCLE 1 COMMUNICATION Collections developed to be communicated mainly on digital channels targeting Next-Gen 5 2 DEDICATED DISTRIBUTION SUPPLY CHAIN Created the“Moncler More flexible, experience” in the efficient most energetic and timely GENIUS chann
Slide 47: Moncler Genius launch plan
1 PRODUCT EVOLUTION: MONCLER GENIUS LAUNCH PLAN DROPS JUN JUL AUG SEP OCT NOV DEC FRAGMENT PIERPAOLO NOIR CRAIG GREEN 1952 SIMONE ROCHA PALM ANGELS GRENOBLE FRAGMENT 1ST DROP PICCIOLI 2ND DROP KEY: Online Genius Store Retail Pop-Up Wholesale event/SiS Windows Pop-Up 47
Slide 48: Product evolution: outerwear
1 PRODUCT EVOLUTION: OUTERWEAR OUTERWEAR MAIN COLLECTION • Main collection our milestone Expected to grow at high single-digit • “Icons Lab” a new project in order between 2018–2020 to continue to reinvent our DNA including customisation GRENOBLE • One collection, all year long Expected to grow at d
Slide 49: Product evolution: adjacent apparel categories
1 PRODUCT EVOLUTION: ADJACENT APPAREL CATEGORIES KNITWEAR • Further enhance design & merchandise • Continue to increase visibility in store Expected to grow at double-digit between 2018–2020 SOFT ACCESSORIES • Work on creativity and merchandise • Improve in-store visibility Expected to grow at doubl
Slide 50: Product evolution: complementary product categories
1 PRODUCT EVOLUTION: COMPLEMENTARY PRODUCT CATEGORIES FOOTWEAR & LEATHER GOODS • Reinforce design team and organisation • Complete DOS penetration Expected to grow at double-digit between 2018–2020 EYEWEAR • First collections very well received • Selectively expand distribution in both Expected to g
Slide 51: Uniqueness and human creativity define messages
Uniqueness and human creativity define messages, digital drives them forward
Slide 52: Communication: beyond fashion and seasons
2 COMMUNICATION: FROM THE GLOBAL DOWN-JACKET TO BE BEYOND FASHION AND SEASONS Moncler is facing a new “era” of development for its Brand We think digital, talk digital, communicate digital Communication rythm is changing 2018-2020 MAIN PROJECTS: • Moncler Genius • Leverage on experience at 360 degre
Slide 53: Our stores are our home
Our stores are our home. Wherever you are, whenever you enter, in any channel or market, they drive Moncler’s experience
Slide 54: Distribution: a fully connected and integrated network
3 DISTRIBUTION: FROM DIFFERENT CHANNELS TO A FULLY CONNECTED AND INTEGRATED NETWORK Our focus is to leverage on Moncler’s global network to create experience We want Moncler stores to convey values and uniqueness in a personalised way Our mission is to create a global, connected and integrated commu
Slide 55: Distribution: enhance in-store experience
3 DISTRIBUTION: ENHANCE IN-STORE EXPERIENCE TO DELIVER UNIQUENESS • Comp largely outperformed regular stores in FY 2017 Flagships are Moncler’s main ambassadors • UPT at 106 versus Group’s average* for in-store experience • Loyalty rate at 119 versus Group’s average* Our goal is to reach some 15 fla
Slide 56: Distribution: mountain DNA is our asset
3 DISTRIBUTION: MOUNTAIN DNA IS OUR ASSET SKI RESORTS Main ambassadors to foster Brand’s heritage and DNA: Our projects: • Store experience linked to Moncler’s DNA • Selectively enlarged the network and complete • Different store design relocations / enlargements • Dedicated merchandising, windows,
Slide 57: Distribution: airports contribute to revenue growth
3 DISTRIBUTION: AIRPORTS SHOULD INCREASINGLY CONTRIBUTE TO OUR REVENUES’ GROWTH AIRPORT LOCATIONS Travel retail channel increasingly important also VANCOUVER MUNICH to attract Next-Gen (+185% 2003-16 growth versus PARIS CHARLES DE GAULLE MILAN MALPENSA* +95% of Luxury Goods sector – source: DFS) BEI
Slide 58: Distribution: digital is our outperforming channel
3 DISTRIBUTION: DIGITAL IS OUR OUTPERFORMING CHANNEL ONLINE • www.moncler.com our first flagship store • Online grew around 30% CAGR over the past 2 years • Selected e-tailers able to enhance also Brand image • Omnichannel pilot test started in three stores • EMEA omnichannel roll-out in 2018, other
Slide 59: Control, selectivity and scarcity drive decisions
Control, selectivity and scarcity will continue to drive decisions The brand still has important levers to drive growth in all channels, both through new stores and organic
Slide 60: Retail: unexploited potential from organic and expansion
3 DISTRIBUTION – RETAIL: STILL UNEXPLOITED POTENTIAL FROM ORGANIC AND EXPANSION Selected new openings and relocations’ effort to continue to drive revenues Strong focus on new clients while continuing to increase loyalty value, repurchase rate and UPT Reinforced focus on organic growth Our goals: •
Slide 61: Wholesale: outstanding results achieved
3 DISTRIBUTION – WHOLESALE: WE HAVE ACHIEVED OUTSTANDING RESULTS Wholesale results ahead of management expectations, driven by SiS expansion and e-tailers contribution SiS top performing channel: +39% 2Y CAGR (2015-2017) Top high-end e-tailers’ revenues strong ~1,500 doors at the end of 2017 versus
Slide 62: Strong focus on SiS development and digital
3 DISTRIBUTION: STRONG FOCUS ON SIS DEVELOPMENT AND DIGITAL CONTINUES SiS development and e-tailers to continue to drive results Some 15 new SiS p.a. expected, including stores in important high-traffic airports All regions to contribute to the SiS network development LAHORE MANILA Expected to incre
Slide 63: Retail Excellence 2.0
4 RETAIL EXCELLENCE 2.0: OUR CLIENT IS OUR MAIN FOCUS EVERYWHERE TO DRIVE ORGANIC GROWTH 2008-2014 2015-2017 2018-2020 INITIAL RETAIL DEVELOPMENT: RETAIL EXCELLENCE 1.0: RETAIL EXCELLENCE 2.0: FOCUS ON NEW STORES FOCUS ON EXISTING CLIENTS. FOCUS ON OMNICHANNEL AND NEW CUSTOMERS INITIAL INTEGRATION A
Slide 64: Lean and efficient corporate organisation
Lean and efficient corporate organisation Luciano SANTEL (Chief Corporate and Supply Officer)
Slide 65: Fast, flexible and reliable
Fast, flexible and reliable
Slide 66: Corporate divisions to support Moncler (r)evolution
CORPORATE DIVISIONS TO EFFECTIVELY SUPPORT MONCLER (R)EVOLUTION OUR MISSION To provide a reliable, lean, efficient and fast organisation, in line with our business model FIVE KEY AREAS 1 SUPPLY CHAIN 2 INFORMATION TECHNOLOGY 3 PEOPLE 4 LOGISTICS 5 SUSTAINABILITY 66
Slide 67: Supply Chain Excellence
Supply Chain Excellence Francesca BACCI (Operations & Supply Chain Director)
Slide 68: Obsessed with quality, focused on time to market
Obsessed with quality, focused on time to market
Slide 69: Supply chain: quality is our mission
1 SUPPLY CHAIN: QUALITY IS OUR MISSION, TIME TO MARKET OUR FOCUS OUR MISSION Moncler wants to continue to deliver the best–in–class products with the highest quality standards and the most innovative design at the planned time KEY FOCUS AREAS 1 MONCLER GENIUS 2 PROCESSES OPTIMISATION 3 KNITWEAR, SHO
Slide 70: An evolving supply chain
AN EVOLVING SUPPLY CHAIN 1 2 MONCLER GENIUS PROCESSES OPTIMISATION Moving from “season-oriented collections” Continuous improvement of all processes to “monthly drops” requires deep changes to boost efficiency and reduce down-time in the supply chain Reinforcing integration along “From Brief–To-Stor
Slide 71: Focus on culture, know-how and innovation
FOCUS ON CULTURE, KNOW-HOW AND INNOVATION 3 4 KNITWEAR, SHOES AND LEATHER GOODS MONCLER CLINIQUE Fully operational knitwear production The best production facility for outerwear and product development department providing up to 20% of outerwear production Developing shoes culture and know-how. Hub
Slide 72: Moncler Clinique: best-in-class outerwear facility
MONCLER CLINIQUE: A BEST–IN–CLASS FACILITY FOR OUTERWEAR PRODUCTION 72
Slide 73: IT: secure, reliable and integrated technology solutions
IT Secure, reliable and integrated technology solutions to provide timely business information
Slide 74: IT: secure, reliable and integrated technology solutions
2 IT: SECURE, RELIABLE AND INTEGRATED TECHNOLOGY SOLUTIONS ENTERPRISE BUSINESS INTELLIGENCE CLIENTELING Business information on hand: easy, fast and accurate All business information in one device • One data dictionary in place • Integrated clients’ data base • ~70% coverage of business processes •
Slide 75: HR: people make things happen
HR People make things happen. Foster talent, motivation, passion and energy is our goal
Slide 76: People make things happen
3 PEOPLE MAKE THINGS HAPPEN TALENT ENGAGEMENT • MonCampus • People activation for improvement and innovation • Develop future leadership at all levels • Responsible and inclusive culture • Foster employer branding • Ever closer to people with welfare and wellbeing PERFORMANCE MANAGEMENT & REWARD ORG
Slide 77: Logistics: the future is now
LOGISTICS The future is now
Slide 78: Lean organization and integrated logistics
4 LEAN ORGANIZATION, WITH SHARED VISION AND INTEGRATED LOGISTICS Continuous enhancement of physical & logical process automation Worldwide Integrated System Expansion of the existing logistics center in Piacenza Flexibility Quality control Speed After sales services Traceability E-commerce & omnicha
Slide 79: Quote from Remo Ruffini
“We believe that it is important not only to achieve our goals but also how we reach them” Remo Ruffini
Slide 80: Sustainability
5 SUSTAINABILITY • Down traceability: continue to enhance our DIST protocol as point of reference RESPONSIBLE SOURCING • Stringent ethical requirements for all suppliers • Pursuing a philosophy of continuous improvements, sharing and support • Employee engagement activities • Best talents program #P
Slide 81: Financial overview
Financial overview Roberto EGGS (Chief Marketing and Operating Officer) Luciano SANTEL (Chief Corporate and Supply Officer)
Slide 82: Revenue breakdown by region
REVENUE BREAKDOWN BY REGION Moncler revenues increased by 17%* in Q4 REVENUE ANALYSIS (Eur M) and in FY 2017, with international markets YoY Growth YoY Growth reporting a strong double-digit growth 1,193.7 Reported Const. FX Italy recorded a good performance, driven 1,040.3 +15% +17% by organic grow
Slide 83: Revenue breakdown by distribution channel
REVENUE BREAKDOWN BY DISTRIBUTION CHANNEL Retail revenues rose 19%* in FY 2017 (+17% REVENUE ANALYSIS (Eur M) in Q4 2017) mainly driven by organic growth YoY Growth YoY Growth 1,193.7 Reported Const. FX • 14% Comp Store Sales Growth • E-Commerce continued to outperform 1,040.3 1,193.7 +15% +17% • Go
Slide 84: Monobrand stores network
MONOBRAND STORES NETWORK Moncler’s retail network reached 201 monobrand stores at 31 December 2017 6 new retail stores opened in Q4 2017, including Firenze, Stockholm, and the second store in Toronto Key relocations and expansions finalized in Q4, including the expansion of Milano Montenapoleone (Oc
Slide 85: Income statement
INCOME STATEMENT (*) Non-cash costs related to stock options and performance shares plans (**) Net financial result includes FX Gain/(Losses): Eur (3.8)m in FY 2017, Eur (1.9)m in FY 2016 85
Slide 86: Net capex
NET CAPEX Consolidated capex rose to Eur 72.5m in FY NET CAPEX ANALYSIS (Eur M) 2017 equal to 6% of revenues (%) on 6% 6% Retail investments accounted for c.80% of revenues consolidated capex 72.5 62.3 Corporate investments included capex to reinforce Moncler’s IT platform 10.8 5.2 10.7 4.1 56.5 47.
Slide 87: Net working capital
NET WORKING CAPITAL Strong control on working capital continued NET WORKING CAPITAL ANALYSIS (Eur M) Net working capital reached Eur 89.7m at 31 (%) on LTM December 2017, equal to 8% of LTM revenues revenues (10% in FY 2016) 8% 10% Accounts payable’s increase mainly associated 89.7 108.1 with retail
Slide 88: Net financial position
NET FINANCIAL POSITION Net financial position was positive at Eur 304.9m NET FINANCIAL POSITION ANALYSIS (Eur M) at 31 December 2017, compared to Eur 105.8m at 31 December 2016 304.9 105.8 Moncler generated Eur 244.3m of free cash flow in FY 2017, versus Eur 210.6m in FY 2016 The Group paid Eur 45.6
Slide 89: Balance sheet statement
BALANCE SHEET STATEMENT 31/12/2017 31/12/2016 Eur m Eur m Intangible Assets 426.3 422.5 Tangible Assets 138.1 123.9 Other Non-current Assets/(Liabilities) 22.1 16.4 Total Non-current Assets 586.5 562.8 Net Working Capital 89.7 108.1 Other Current Assets/(Liabilities) (47.0) (56.0) Total Current Asse
Slide 90: Cash flow statement
CASH FLOW STATEMENT FY 2017 FY 2016 Eurm Eurm EBITDA Adjusted 411.6 355.1 Change in Net Working Capital 18.5 2.7 Change in other curr./non-curr. assets/(liabilities) (22.2) 16.5 Capex, net (72.5) (62.3) Operating Cash Flow 335.4 312.0 Net financial result (5.2) (4.6) Taxes (85.9) (96.8) Free Cash Fl
Slide 91: Press quote from The Telegraph
“Who would have thought a skiwear brand would end up shaping the way we dress a thousand miles from the slopes? Moncler’s owner, Remo Ruffini should write a motivational business guide on how to achieve the impossible…” Lisa Armstrong – The Telegraph
Slide 92: Appendix
Appendix
Slide 93: Upcoming events, IR contacts, shareholding structure
UPCOMING EVENTS, IR CONTACTS, SHAREHOLDING STRUCTURE SHAREHOLDING 2018 Upcoming Events • 16 April 2018 Annual Shareholders’ Meeting • 4 May 2018 Q1 2018 Interim Management Statement Investor Relations Team investor.relations@moncler.com • Paola Durante Investor Relations and Strategic Planning Direc
Slide 94: Disclaimer
DISCLAIMER This presentation is being furnished to you solely for your information and may not be reproduced or redistributed to any other person. This presentation might contain certain forward-looking statements that reflect the Company’s management’s current views with respect to future events an