Eurazeo SE · EURONEXT:RF
Eurazeo — Merger or Acquisition (June 2011)
21 slides from Eurazeo's merger presentation, Jun 6, 2011
Slide 1: Eurazeo to invest in Moncler
June 6, 2011 Eurazeo to invest in ANALYST PRESENTATION
Slide 2: Moncler Group, an attractive investment for Eurazeo
Moncler Group, an attractive investment for Eurazeo Moncler is a unique luxury brand offering significant growth potential – An iconic brand with global appeal and a strong heritage in France – Strong positions in Italy, Germany and Japan and significant growth potential in China and in the US – Exp
Slide 3: Moncler delivers on all our investment criteria
Moncler delivers on all our investment criteria EURAZEO MONCLER’S INVESTMENT CRITERIAS PROPOSITION BARRIERS TO ENTRY Global brand with unique heritage and technical know-how, enjoying high consumer awareness PROFITABILITY Efficient business model resulting in high profitability levels: 53% gross
Slide 4: Key elements of the transaction
Key elements of the transaction Moncler Group key figures – +19% 2008-2010 Group Sales* CAGR – €429m sales in 2010 and €102m of EBITDA, 24% EBITDA margin – 79 Directly Operated Stores (DOS), as of December 2010 – 55 DOS for the Moncler brand, as of today – 23% of sales from retail channel – 1,000 em
Slide 5: Luxury, a fast-growing market with strong fundamentals
Luxury, a fast-growing market with strong fundamentals The Global Luxury Market (€bn) 09-10 Luxury Apparel and Accessory (€bn) growth 185 12% 167 153 172 43 87 (1%) 6% 6% Other 6% 20% 21% 21% Hard luxury 19% 22% 4% 23% Cosmetics & 44 24% Fragrances 22% 25% 17% Accessories 24% 28% 27% 10% Apparel 27%
Slide 6: Moncler, a brand anchored in history and heritage
Moncler, a brand anchored in history and heritage 1952 1954 1968 1980s 1999 2000 Creation of Moncler: Outfitter of the Italian Official sponsor of the Moncler becomes very Remo Ruffini appointed Launch of first Moncler contraction of team for the climbing of French ski team at the popular among the
Slide 7: Moncler, a dynamic luxury brand
Moncler, a dynamic luxury brand Successful positioning of the Moncler brand achieved over the last 10 years - Moncler brand is perceived as a pure luxury product High Gamme Bleu Gamme Rouge - Four products lines ranging from Grenoble accessible luxury (Main and Grenoble) to exclusive luxury (Gamme R
Slide 8: Moncler, main achievements to date (1/3)
Moncler, main achievements to date (1/3) 1 - Gradual repositioning of the brand within the premium/ high-end category with strong pricing power - From the technical brand rooted in the iconic down jacket to one of the leading brands in luxury outerwear 2 - Geographic expansion both in Western Europe
Slide 9: Moncler, main achievements to date (2/3)
Moncler, main achievements to date (2/3) 4 - Transition to a comprehensive product collection and offering as well as spring/ summer collection - Moncler’s lines touch various needs/segments with a high end positioning - Blockbuster products in the “Down Jacket” category - Expanded product portfolio
Slide 10: Moncler, main achievements to date (3/3)
Moncler, main achievements to date (3/3) 5 - Transformation into a scalable production model - Cut-Make-Trim outsourced to suppliers in Italy and Eastern Europe - A particular attention is given to quality control and delivery delays - Very light raw materials incidence on sale price (approx. 6%) -
Slide 11: Overview of Other Brands Division
Overview of Other Brands Division Moncler Group also operates 4 other brands, which enjoy strong recognition and together generate sales of almost €150m COLLECTION British sportswear Sport chic Italian Vintage/ Cult brand, Designer denim line inspired by Sir brand of marine dedicated to a refined Sp
Slide 12: An impressive track-record of growth
An impressive track-record of growth 07-10 CAGR 2007 2008 2009 2010 - Strong historical growth mainly through international expansion and retail network build-up Net Sales - Margin expansion driven by operational efficiency 429 18% 373 309 and mix 259 – Reinforcement of commercial channels in both w
Slide 13: Retail and wholesale roll-out across geographies
Retail and wholesale roll-out across geographies North America: 4 DOS Europe: 31 DOS Asia-Pacific: 20 DOS Expansion of the retail network, notably in Asia and in the US - Mono-brand stores located in top end locations of the most important cities and ski resorts - Strong potential in Asia, a retail
Slide 14: Further diversification strategy leading to a more balanced revenue profile
Further diversification strategy leading to a more balanced revenue profile for Moncler 2010 MID-TERM TARGETS 25% <50% - Strong development of retail network, especially urban format in top end Wholesale DISTRIBUTION locations CHANNEL Retail - Selective approach on Wholesale channel - On-line sales
Slide 15: Moncler Group's strategy
Moncler Group’s strategy 1. 1 Further expand geographic reach - Accelerate penetration in China and in the U.S., two strategic markets - Consolidate presence in Italy, Germany, Japan, France - Open new geographies (Russia, Korea) 1. 2 Roll-out of retail network 2. 3 Pursue selectiveness in the whole
Slide 16: Transaction highlights
Transaction highlights Valuation and purchase price – Eurazeo values the Company at €1.2bn; this EV represents 12x 2010 EBITDA multiple – Eurazeo is purchasing a 45.0%-stake in the Company for a price of €418m – Closing of the transaction anticipated in Q3 2011 Resulting shareholding structure S. S.
Slide 17: Conclusion
Conclusion – The luxury market presents attractive fundamentals and is a good diversification of Eurazeo’s portfolio – Moncler is an iconic brand with a unique French heritage – Over the past decade, Remo Ruffini and his management team have led the successful brand redeployment – Moncler offers tod
Slide 18: Appendices
APPENDICES - 18 - ANALYST PRESENTATION
Slide 19: Seasoned and well regarded management team led by Remo Ruffini
Seasoned and well regarded management team led by Chairman & Creative Director Remo Ruffini 1 Remo Ruffini is involved in the definition and implementation of the Group’s strategy as well as in daily operations Mr. Ruffini started as a clothing design and marketing consultant; he founded New Engl
Slide 20: Moncler, a well known brand in Italy with a solid base abroad
Moncler, a well known brand in Italy with a solid base abroad - Strong brand awareness, especially in Italy - Transgenerational brand Brand Awareness Intention to Buy (2) 76% 75% 90% 58% 57% 43% 46% 37% 20% 16% (1) Italy China Japan Europe US Italy China Japan Europe US (1) Average for France, Germa
Slide 21: About us
About us Investor Relations contacts Carole Imbert • cimbert@eurazeo.com Research on Eurazeo + 33 (0)1 44 15 16 76 – Alpha Value, Catherine Radiguer Sandra Cadiou • scadiou@eurazeo.com – Cheuvreux, Amandine Latour + 33 (0)1 44 15 80 26 – Deutsche Bank, David Cerdan – Exane BNPParibas, Charles-Henri