Piquadro S.p.a · MIL:PQ
Piquadro — Branded Goods Conference 2016
37 slides from Piquadro's conference presentation, Sep 15, 2016
Slide 1: Branded Goods Conference
BRANDED GOODS CONFERENCE September, 15 2016 PiIQuaorReae
Slide 2: The Brand
Slide 3: Facts
FACTS € 69.3 million turnover in FY 2015-16, up 3.1% € 3.88 million net profit in FY 2015-16 37% generated by DOS, 63% by whole- sale 100 free-standing stores (60 IT, 40 abroad) 656 employees and workers 68% family management; other shareholders: Mediobanca 5% Fidelity 2,2% Allianz 1,4% Lazard1,9%
Slide 4: The Start
THE §& START © ® The Piquadro brand was launched on the Italian market in1998 by Marco Palmieri, today's President and CEO of the company. es Thebrand name PIQUADRO means Psquared (P72). ® Itcomes from Marco Palmieri's great love for Mathematics and stands for Palmieri-‘Pelletterie’ (the Italian wor
Slide 5: The Original Idea
THE ORIGINAL IDEA When Piquadro was launched 17 years ago it truly generated a new market niche encountering an emerging consu- mer's need: a briefcase which was at the same time elegant and functional. a The Piquadro briefcases were the first ones conceived to carry a laptop safely but also elegant
Slide 6: The Brand Values
THE BRAND VALUES ® The ‘Tech inside concept’ - combined with the values of innovative design and precious mate- rials — is what makes Piquadro unique.
Slide 7: Vibrant Colors and the Finest Italian Leather
VIBRANT COLORS | AND THE § FINEST ITALIAN LEATHER ® Another distinguishing feature of the Piquadro brand is colour. The palette of hides - exclusively Ita- lian and deriving mainly fromthe world | famous Tuscan tanning district - has always spanned from classic colours to unprecedented shades.
Slide 8: Core Consumers
CORE CONSU- MERS e Young professionals | a Men: 60% and women 40% =Medium-upper social classes ® Design forward mindset ® ‘Citizens of the world’ ® Always’onthe a0: commuters, requent flyers ® Techsavvy ® Rational: value for money
Slide 9: Brand Positioning
travel Sams@nite @ vetsev BRAND POSITIONING luxu ry TIM eicaudaces n+ +) VICTORINOX miceerd ae HERMES PARIS PRADA VW, MONT? Gchrasine Foragawie- BLANC BURBERRY MARC JACOBS TED BAKER KENNETH COLE TAGE Mam
Slide 10: Product personalization
Product personalization Iconic Products Business short travel praeuets Bagmotic Connequ Made in Italy
Slide 11: Our Personalization Program
OUR PERSONALIZATION PROGRAM ® SARTORIA ® UNICA ® Personalization accounts 19% sold onlineYTD Aug 16
Slide 12: Iconic Products
ICONIC PRODUCTS ® Pillars of global awareness of the Brand. ® 44% of consolidated turnover witha CAGR in the last four years of 22%. ® 47% in DOS channel with a CAGR in the last four years of 28%.
Slide 13: Bagmotic
BAGMOTIC” Piquadro embraces the philosophy of the Internet of Things BAGMOTIC allows you: ® to trace and find your Piquadro accessories from luggage to key holder through smart phone/ tablet/smartwatch ® to open and close your Piquadro trolley through smart phone/tablet/smartwatch ® torecharge your
Slide 14: Connequ
CONNEQU ® At the center of Piquadro’s BAGMOTIC concept is the Connequ app, which can be downloaded from App Store and Google Play ® CONNEQU is a touch-point which allows to enlarge the customer base and comunicate through push notification ® Now more than 5,000 customers connected through CONNEQU.
Slide 15: Made in Italy
MADE IN PTALY ® Reshoring Strategy: increasing the share of Made in Italy productions. 1A ae T ‘ i AIAN ® Target: promote the brand abroad through © hier UN ma i tt i Pea i Made in Italy products with the same price Ml Run point as the other Piquadro collections. ate tit uN TH mi
Slide 16: Market
MARKET. Premium market growing more than Luxury market. Small competitors under consolidation. Isit time to aggregate?
Slide 17: Digital
DIGITAL. BUSINESS moving to digital. Direct e-commerce a profitable business Ebitda generated more than 30% Now approx 4% of consolidated turnover
Slide 18: Website FY 2015-2016 traffic
een site FY 2015-2016 traffic total users 1.6 mln USERS from 2015 04 01 to 20160331 from 2014 04 01 to 2015 03 31 EE USERS from Facebook CUSTOMER 710% DATABASE : e +44K USERS 445% USERS SESSION feomrreen +38K 423% +23% ne 4299K +452K countries a 7 424% +174K Apri Mag 31 Ago + Ou 4 Dic 6 Feb 7 Mar 4
Slide 19: Website Apr-Aug 2016 traffic
Piquadro Website Apr-Aug 2010 traffic SESSION from BUSTER Neace Fit? be eat, DATABASE SESSION for eng countries 26% +37% +44% Sees USERS +339K +147K +47% USERS USERS from poet from Facebook foreing countries +1026% +04% +50K +133K 60K Fk Lz we: (PU USERS el from 2016 04 01to 20160831 9 H from 2015 0
Slide 20: Website FY2015-16 sales
Piquadro Website FY2015-16 sales ey, F 5 % export +54 ' 6 % from 2015 04 01 to 2015 08 31 Mill seactlalale sili from 2016 04 01to 20160831 Dic 06 Feb 7 jar
Slide 21: Website Apr-Aug 2016 sales
ae Website Apr-Aug 2016 sales AD : 9 % export +O. /0 80K: 60K E 40K 20 tal from 2016 04 01to 20160831 from 2015 04 01to 2015 08 31 El
Slide 22: Business is Moving to Digital
BUSINESS IS MOVING TO DIGITAL ev ® Indirect e-commerce is becoming a successfull business Leveraging on international web platforms such as Amazon, T-mall, Zalando, Vente Privee etc ® Fast growing 2015 vs. 2014 +29,3% 2016 vs. 2015 +86,5% ® 5,4% of consolidated turnover
Slide 23: Direct stores
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Slide 24: Selective openings (and closures)
Selective openings (....and closures). Store profitability key driver. Focus on like for like growth. Price up 2% in the last two years.
Slide 25: Store network and like for like growth
e Italy FP stores n. 24 ® Italy outlet stores n. 1 ® Europe FP stores n. 10 ® Europe Outlet stores n. ® RoW FP stores n. ® Total direct network n. 54 ® 2015-2016 like for like growth +6,7% Oo YTD August like for like growth +1,5%
Slide 26: Wholesale Business
Slide 27: Italian market is concentrating
e Italian market is concentrating s B2Ba fast growing channel e Consolidation of multi-brand operators ® Franchising development (n.24 mono-brand stores)
Slide 28: European market to leverage on brand awareness
® European market to leverage on brand awareness ® Russia, Germany, Spain key market drivers ® Russian economy under stabilization directly managed ® Travel retail performances accelerating
Slide 29: Asia business is stable with some good signals
8 Asia business is stable with some good signal from Japan and Korea ® Opportunities from new countries (Iran, Mexico etc) ® USA: flagship store opening in NYC and online platform driving market penetration l=
Slide 30: The World Is Changing... and We Are Changing
THE WORLD IS GHANGING... AND WE ARE CHANGING Piquadro business has changed a lot since March 2013 (+23% in three years) ’ NEW DIGITAL MARKETS RETAIL B2B EU+IT - — + = +5,5min +3,4min +3,0min +3,2mln = +2,6mlin -4,1 ca | ii 1% 23min -2,3mln RUSSIA Greater CHINA
Slide 31: SWOT Analysis
SWOT ANALYSIS () W STRENGHTS WEAKNESS OPPORTUNITIES THREATS Wide and diversified Exposure to the Italian Increase international Risk of slowdown in product offering market presence italian consumption Premium positioning Small size Further development of Risk of opening DOS within the man branded Di
Slide 32: Income Statement
FY Ending March 31 (€mln) 20144 = 2015A 2016A Net Sales 63.1 67.2 69.3 % growth 412.1% +6.6% 43.1% Other revenues 0.8 0.9 1.2 Material costs (9.2) (12.5) = (18.0) Service costs (81.2) (81.8) (33.4) Personnel costs (13.9) (14.3) (15.3) Other operating expenses (0.7) (0.7) (0.5) EBITDA 8.9 8.8 8.3 Mar
Slide 33: Summary Balance Sheet
FY Ending March 31 (€mln) 20144 Net Working Capital 22.7 Net Tangible Assets 13.1 Net Intangible Assets 5.0 Net Financial Assets 2.4 Several Staff, Provisions & Others (1.3) Net Capital Employed 41.9 Group Shareholders’ Equity lye Minorities 0.0 Sharcholders' Equity & Minorities ead Net Debt 10.2 Ne
Slide 34: Net Debt and Capital Structure
LE AN RUE SSANGUE DEBT orate a CAPITAL, sre arr a Short-term Net Debt S | R | C | | RE Long-term Net Debt 12.9 9.4 8.4 Cash & Cash Equivalents (11.0) (12.7) (10.2) Net Debt 10.2 7.0 6.7 RATIO - NET FINANCIAL DEBT As of March 31 2014A 2015A 2016A Net Debt/EBITDA 1.14 0.79 0.81 Net Debt/Net Capitaliza
Slide 35: Focus on Quarter I 2016/17
FOCUS ON OUARTER I 2016/17 Wholesale [ay DOS = ee 0115/16 Q1 16/17 DOS : + 11.4% Wholesale : + 0.7% Export wholesale growth + 18.4% E-commerce + 30.4% Export E-commerce + 41.9% Q1 Sales: 13,9mln +4.5% vs 2015 (13,4mln) NET FINANCIAL DEBT (€mIn) As of June 30 2015A 2016A Short-term Net Debt 8.7 8.5 L
Slide 36: Investment Values
INVEST- -MENT VALUES ® Net Profit generated in the last 3 years*11.5mln€ ® Dividends paid in the last 3 years equal to5.0 min€ ® Investments effected in the last 3 years* equal to 7.9 min € ® Net Debt decreased in the last 3 years by3.5min€ *Based12M March 2016,2015, 2014
Slide 37: Thank You!