Kering Sa · EURONEXT:KER
Kering Sa — Non-Deal Roadshow (June 2012)
35 slides from Kering Sa's roadshow presentation, June 2012
Slide 1: Investor Presentation – North America Roadshow
INVESTOR PRESENTATION North America Roadshow June 2012
Slide 2: Disclaimer
DISCLAIMER This presentation does not constitute an offer of securities for sale in the United States of America or any other jurisdiction. Certain information contained in this document may include notably projections and forecasts. They express objectives based on current assessments and estimates
Slide 3: Empowering Imagination
EMPOWERING IMAGINATION PPR
Slide 4: Investment Thesis (1/2)
INVESTMENT THESIS (1/2) Unique combination of global luxury and premium sports & lifestyle Unique brands, enjoying: combination - Leading positions in their respective segments - Broad consumer appeal as self-fulfillment and indulgence increasingly drive buying decisions - Considerable organic growt
Slide 5: Investment Thesis (2/2)
INVESTMENT THESIS (2/2) Strong human values at the core of our success and Human values transformation Mastering the entire value chain of our brands Value chain Flexible production and distribution infrastructure Total control over design, development and brand characteristics Financial and Financi
Slide 6: Who We Are
WHO WE ARE Young company about to celebrate its 50th birthday Longstanding heritage in specialized distribution, giving us a unique expertise in assessing consumer tastes, expanding retail concepts, developing new formats, channels and brands Entered the Luxury goods universe in 1999 with an ini
Slide 7: Our Mission
OUR MISSION To empower our brands to reach their full global potential in a sustainable and responsible way Two coherent product areas: apparel and accessories Two fast-growing market segments: Luxury Goods and Sport & Lifestyle 7
Slide 8: Where We Operate
WHERE WE OPERATE Empower premium brands across four main categories Leather Accessories Apparel Footwear Goods & royalties 56% 12% 13% 19% 84% 7% 5% 4% LUXURY 35% 24% 25% 16% 31% 25% 15% 29% LIFESTYLE 34% 51% 15% SPORT & 86% 1% 13% Note: Based on FY11 sales split. 8
Slide 9: Our Management Principles
OUR MANAGEMENT PRINCIPLES We give our brands freedom within a framework Freedom within Empower the development of our key assets – the brands – and a framework help them reach beyond their limits We are a group and act as a group Group A single worldwide corporate team PPR Asia and PPR Americas to b
Slide 10: The PPR Effect
THE PPR EFFECT Further strengthening the integration of the Group Cross-border expertise and support Hedging, fiscal, and working Development of new product capital management PRODUCT categories and sourcing FINANCE & LOGISTICS DEVELOPMENT Optimized and centralized management (Sport & Lifestyle) log
Slide 11: Luxury Division – Drivers of Future Growth and Profitability
LUXURY DIVISION – DRIVERS OF FUTURE GROWTH AND PROFITABILITY Collection of world-leading brands : World-leading Designs, manufactures and markets leather goods, shoes, ready- brands to-wear, jewelry & watches A Group characterized by : A Group The exceptional quality of its products A unique talent
Slide 12: Sport & Lifestyle Division – Drivers of Future Growth and Profitability
SPORT & LIFESTYLE DIVISION – DRIVERS OF FUTURE GROWTH AND PROFITABILITY THE ultimate sportlifestyle brand - one of the worlds’ largest Puma providers of athletic footwear, apparel & accessories A business characterized by a brand value where product categories originating in sports are continued and
Slide 13: Sport & Lifestyle Division
SPORT & LIFESTYLE DIVISION 13
Slide 14: Tomorrow's PPR – Our 2020 Ambitions
TOMORROW’S PPR – OUR 2020 AMBITIONS €24 billion 1 PPR talent mobility revenue platform 40% revenue generated by Sport & Lifestyle Division €10 billion revenue in Asia 54% 1 Group Environmental Profit & Loss Account Revenue generated in directly-operated store Over €1 billion revenue Gender parity ge
Slide 15: FY 2011 Figures & Outlook
FY 2011 FIGURES & OUTLOOK PPR 15
Slide 16: Full Year 2011: A Highly Successful Year
FULL YEAR 2011 A highly successful year Comparable Group sales up 9.3% Recurring net income, Group share, from continuing operations: +26.4% Further decrease in net debt: NFD/ EBITDA down to 1.8x 16
Slide 17: Reaching Another Milestone in the Strategic Evolution of the Group
REACHING ANOTHER MILESTONE IN THE STRATEGIC EVOLUTION OF THE GROUP Excellent performances full year 2011 from the Luxury and Sport & Lifestyle divisions Strong growth momentum across all brands New brands with huge potential join the Group Recurring Recurring In €m % operating % operating Revenu
Slide 18: A Well Balanced Growth Profile – FY 2011 Revenue by Region
LUXURY AND SPORT & LIFESTYLE REVENUES UP 17.3% COMPARABLE A well balanced growth profile – FY 2011 revenue breakdown by region Other countries 12% +23% Japan Western 12% Europe +6% 32% +14% Asia Pacific 24% North America +26% 19% X%: % of FY11 sales Y%: Comparable growth rate vs. 2010 +18% 18
Slide 19: Conclusion & Outlook
CONCLUSION & OUTLOOK Unique combination of global Luxury and premium Sport & lifestyle brands with considerable organic growth potential Broad consumer appeal as self-fulfillment and indulgence increasingly drive buying decisions Favorable geographic balance Increasingly flexible cost struct
Slide 20: 1Q 2012 Highlights
wn Nx =O) NF I iC) — I PPR 20
Slide 21: 1Q 12: Off to a Good Start
1Q 12: OFF TO A GOOD START Reported Comparable (Sales in €m) Q1 2012 change change (1) Luxury 1,458 +29.1% +17.8% Sport & Lifestyle 887 +14.6% +2.8% Sub-total 2,345 +23.2% +11.6% Fnac 916 -0.7% -0.8% Other & inter-company (3) ns ns PPR - Continuing operations 3,258 +15.4% +7.9% (1) Comparable scope
Slide 22: Appendix
APPENDIX PPR 22
Slide 23: PPR Heritage
PPR HERITAGE 1999 42% stake in Gucci Group 2000 Acquisition of Boucheron 2001 Acquisition of Bottega Veneta, Balenciaga, Stella McCartney and Alexander McQueen 2002 Disposal of Guilbert ‘mail order activity’, Finaref and Facet (credit subs) 2003 Disposal of Pinault Bois & Matériaux and Guilbert ‘con
Slide 24: Operating Performance FY2011
OPERATING PERFORMANCE FY2011 In €m CONTINUING OPERATIONS 2011 2010 % Change Revenue 12,227 11,008 +11.1% Gross profit 6,224 5,369 +15.9% Gross profit margin 50.9% 48.8% +2.1pts Recurring operating income 1,602 1,370 +16.9% Recurring operating income margin 13.1% 12.4% +0.7pt EBITDA 1,911 1,649 +15.9
Slide 25: Financial Performance FY2011
FINANCIAL PERFORMANCE FY2011 In €m 2011 2010 Change Recurring operating income 1,602 1,370 +16.9% Other non-recurring operating income and expenses (58) (141) Financial charges (215) (240) Corporate income tax (317) (264) Income from equity affiliates 47 35 Net income from discontinued operations (1
Slide 26: Financial Charges and Income Tax FY2011
FINANCIAL CHARGES INCOME TAX FY2011 In €m 2011 2010 Cost of net indebtedness (216) (230) Other financial charges (net) 1 (10) Financial charges (net) (215) (240) In €m 2011 2010 Current tax (expense) / Income (319) (262) Tax on on-current items 2 (1) Total tax (317) (264) Effective tax rate 23.9% 26
Slide 27: Free Cash Flow from Operations FY2011
FREE CASH FLOW FROM OPERATIONS FY2011 In €m 2011 2010 Cash flow before taxes, dividends and interest 1,839 1,579 Change in working capital requirement (before taxes) (235) (144) Coprorate income tax paid (365) (243) Net cash flow from operating activities 1,240 1,193 Acquisition of fixed operating a
Slide 28: Net Financial Indebtedness FY2011
NET FINANCIAL INDEBTEDNESS FY2011 In €m Net indebtedness at December 31, 2010 3,781 Free cash flow from operations (934) Net interest paid and dividend received 198 Dividends paid 454 Purchases of PPR shares 120 Purchases of Puma shares 300 Other disposals & acquisitions (577) Other 54 Net indebtedn
Slide 29: Condensed Consolidated Balance Sheet FY2011
CONDENSED CONSOLIDATED BALANCE SHEET FY2011 In €m 2011 2010 Goodwill, brands & other intangible assets - Net 14,546 14,740 Other net non-current assets 115 163 Net current assets 278 1,058 Provisions (364) (529) CAPITAL EMPLOYED 14,575 15,432 Net asset held for sale 570 SHAREHOLDERS’ EQUITY 11,750 1
Slide 30: Debt Ratios FY2011
DEBT RATIOS FY2011 In €m * Published, not restated ** Pro forma 30
Slide 31: Liquidity FY2011
LIQUIDITY FY2011 In €m NFD 3,396 M€ * Gross debt minus cash & cash equivalents and financing of customer loans ** Gross debt 31
Slide 32: Dividend FY2011
DIVIDEND FY2011 Dividend per share In € + 6.1% - 4.3% Dividend payout * Published not restated. 32
Slide 33: Revenue FY2011
REVENUE FY2011 Change In €m 2011 2010 €m % Gucci 3,143.2 2,666.1 477.1 + 17.9% Bottega Veneta 682.6 510.6 172.0 + 33.7% Yves Saint Laurent 353.7 269.2 84.5 + 31.4% Other brands 737.5 564.8 172.7 + 30.6% Luxury 4,917.0 4,010.7 906.3 + 22.6% Puma 3,009.0 2,706.4 302.6 + 11.2% Volcom 146.7 - 146.7 - Sp
Slide 34: Recurring Operating Income FY2011
RECURRING OPERATING INCOME FY2011 Change In €m 2011 2010 €m % Gucci 947.7 757.2 190.5 + 25.2% Bottega Veneta 204.6 130.2 74.4 + 57.1% Yves Saint Laurent 40.9 9.4 31.5 4.4x Other brands 69.4 47.2 22.2 +47.0% Luxury 1,262.6 944.0 318.6 + 33.8% Puma 333.2 337.1 (3.9) - 1.2% Volcom 13.5 - 13.5 - Sport &
Slide 35: Contacts – PPR Financial Communications
CONTACTS – PPR FINANCIAL COMMUNICATIONS Alexandre de BRETTES +33 (0) 1 45 64 61 49 adebrettes@ppr.com Edouard CROWLEY +33 (0) 1 45 64 63 28 ecrowley@ppr.com 35