Piquadro S.p.a · MIL:PQ
Piquadro — Investor Presentation (June 2009)
28 slides from Piquadro's investor presentation, June 2009
Slide 1: Presentation Update June 2009
PRESENTATION UPDATE JUNE 2009 1
Slide 2: Important Information
IMPORTANT INFORMATION • The information provided in this presentation is being furnished to you solely for your information on a confidential basis. Neither this document nor any copy thereof may be reproduced, redistributed or passed on, in whole or in part, to any other person. Neither this presen
Slide 3: A Rapid Path to Success
A RAPID PATH TO SUCCESS €52m 1998-2003 CAGR: +26.1% (1) 2004/05-2008/09 CAGR: +28.1% (2) €46m €36m Launch of Piquadro brand €25m €19m €16m 30,00% 29,50% 27,8% €13m 25,10% €10m €6m €8m €5m 1998 1999 2000 2001 2002 2003 2004 2004/05 2005/06 2006/07 2007/08 2008/09 SALES EBITDA Margin • Strong top line
Slide 4: Unique and Distinctive Brand Identity
UNIQUE AND DISTINCTIVE BRAND IDENTITY • Distinctive brand for “moving” people in leather goods industry • Aspirational brand: high quality, technological mood, innovation, design and ergonomic performance • Premium/performance positioning 4
Slide 5: Distinctive and Effective Marketing & Communication
DISTINCTIVE AND EFFECTIVE MARKETING & COMMUNICATION • Communication centralized at Group level and focused on Piquadro’s philosophy and strengths (innovation, technological mood, high quality, design and ergonomic performance) • Mainly through innovative advertising on magazines, newspapers and web
Slide 6: Premium/Performance Positioning
PREMIUM/PERFORMANCE POSITIONING VALUE PROPOSITION Performance Fashion Lifestyle • Clear distinction from competitors at comparable price level through commitment to innovation, design, high Luxury - quality and ergonomic performance PRICE POSITIONING • Customer “community” recognized in brand values
Slide 7: Wide, Complementary Mono-Brand Product Mix
WIDE, COMPLEMENTARY MONO–BRAND PRODUCT MIX • Complementary and extensive product offering, including professional bags, travel items, women’s bags, small leather goods and other accessories • Product strategy: Basic Collections and Seasonal Collections • Basic Collections (80% of turnover): long lif
Slide 8: Flexible and Efficient Business Model
FLEXIBLE AND EFFICIENT BUSINESS MODEL THE MANAGMENT • Internal product development and centralized procurement system. • Partly-outsourced production (70%) guaranteed by select, controlled third-party Efficient manufacturers (China, Taiwan, Hong Kong). Procurement • 30% in-house production through C
Slide 9: International Multi-Channel Distribution Network
INTERNATIONAL MULTI–CHANNEL DISTRIBUTION NETWORK International Presence • Presence in approx. 50 countries with strategic mix of DOS and Wholesale channel (282 Piquadro stations and 32 shop-in-shops in leading department stores and multi-brand stores) • Growing mono-brand network of 65 stores (30 DO
Slide 10: Directly Operated Stores
INTERNATIONAL MULTI–CHANNEL DISTRIBUTION NETWORK DIRECTLY OPERATED STORES Opened as at March 2009 Opened after March 2009 1) Milano Via Della Spiga 33 27) Taiwan Taipei Eslite Dun Nan 2) Milano Linate Airport 28) Hong Kong Time Square 3) Roma Galleria Colonna 38 29) China Shangai Golden Eagle 4) Mil
Slide 11: Franchising Shops
INTERNATIONAL MULTI–CHANNEL DISTRIBUTION NETWORK FRANCHISING SHOPS Opened as at March 2009 1) R o m a Via Frattina 125 2 7 ) M o s c a ( R us s ia ) TC M etro po lis 2 ) C a glia ri Via A lghero 2 8 ) B e lgra do USCE Center B o ulevard M ihajla 3 ) M o s c a , R us s ia ul. Leningradskaya 1 2 9 ) R
Slide 12: International Expansion: Wholesale and DOS FY 2008/2009
INTERNATIONAL EXPANSION W H O L E S A L E a n d D O S – F Y 2008/2009 Wholesale Sales in mln € + 9,6% + 3,4% -31,2% €31.3m €34.3m 2007/08 2008/09 • Italian market driven also by €8.1m €8.4m €0.9m €0.6m franchising openings up 159% Italy Rest of Europe Rest of World • Growth in Europe Sales Franchisi
Slide 13: Summary Income Statement
SUMMARY INCOME STATEMENT IAS-IFRS st (€m) FY Ending March 31 , 2007 A 2008 A 2009 A Net sales 35.7 45.9 51.7 % growth 51.6% +28.6% +12,4% Other revenues 0.9 0.7 0.9 Material costs (7.8) (7.9) (9.8) Service costs (14.0) (19.2) (20.6) Personnel costs (3.7) (5.5) (7.0) Other operating expenses (0.4) (0
Slide 14: Strong Top Line Growth
STRONG TOP LINE GROWTH 51,7 46.0 Net Sales: up 28,1% p.a. * • Net sales growth of 28% p.a. (€m) 35.7 over the 2004/05-2008/09 period, mainly driven by 25.0 19.2 • Continuously improved product mix • Increase of average 2004/05A 2005/06A 2006/07A 2007/08A 2008/09A (3) prices (up 3.0% ) and volumes (u
Slide 15: Sustainable High Profitability
SUSTAINABLE HIGH PROFITABILITY EBITDA: up 34.6% pa * € 13.6m € 14.4m € 10.7m • EBITDA growth (up 6% in 2008/09 vs € 5.9m 2007/08; EBITDA margin down 170 bps), driven by 2005/06 2006/07 2007/08 2008/09 • Significant top-line growth (1) • Maintaining gross marginality • Strict control of overheads Mar
Slide 16: Group Net Income and Income Taxes
GROUP NET INCOME AND INCOME TAXES Net Income: up 19% pa * (€m) • Significantly improving bottom line. € 6.4m € 7.5m € 5.3m • Net income impacted positively by Piquadro’s operating efficiency. 2006/07 2007/08 2008/09 % of sales: 14.9% 14.0% 14.5% • Low impact of interest expenses driven also by posit
Slide 17: Summary Balance Sheet
SUMMARY BALANCE SHEET IAS-IFRS (€m) As of March 31st , 2007A 2008A 2009A Net Working Capital 8.0 12.8 14.5 Net Tangible Assets 10.3 10.2 11.5 Net Intangible Assets 1.0 1.2 1.2 Net Financial Assets 0.6 0.9 1.3 Severance Staff, Provisions & Others (0.9) (1.0) (1.2) Net Capital Employed 19.1 24.1 27.4
Slide 18: Lean Capital Structure
LEAN CAPITAL STRUCTURE Total Capitalization Net Debt/ 2.3 1.4 0.9 0.6 IAS-IFRS Equity (€m) St As of March 31 2006A 2007A 2008A 2009A 27.4 24.1 Short-term Net Debt 1.8 2.1 1.6 2.8 29 (€m) Long-term Net Debt 13.3 13.1 12.4 14.5 28 0.2 27 26 Cash & Cash Equivalents (3.7) (4.1) (2.3) (6.8) 25 19.0 0.3 2
Slide 19: Summary Cash Flow Statement
SUMMARY CASH FLOW STATEMENT IAS-IFRS st (€m) FY Ending March 31 , 2007A 2008A 2009A PBT 8.9 10.9 11.8 Depreciation & Amortisation 1.1 1.4 1.9 Provisions & Impairments 0.2 0.1 0.5 Taxes (3.5) (5.4) (5.2) Net Interest (0.0) 0.3 (0.1) Change in net working capital (2.6) (3.9) (0.8) Operating Cash Flow
Slide 20: Cash Generative Business Model
CASH GENERATIVE BUSINESS MODEL Cash Conversion(1) • The Company has high conversion of EBITDA into operating cash flow : 7,6% 24.2% 37.1% 22,0% • Limited Capex requirement 15.1% 10.2% Total • Efficient working capital EBITDA management 70,4% 60.8% 52.7% 2006/07A 2007/08A 2008/09A Cash Conversion Cap
Slide 21: Cash Generative Business Model: Fiscal Year Net Debt Bridge
CASH GENERATIVE BUSINESS MODEL: 12 MONTHS FISCAL YEAR NET DEBT 11.744 -798 2.368 10.468 10.468 -1.893 5.468 5.443 €/000 • High operating 12.000 cash flow +5.025 generation in 10.000 2008/2009 for approx. 13 mln 8.000 Euro. 6.000 +3.100 • Dividend paid 3.1 -25 mln Euro. 4.000 +3.166 2.000 • Growth im
Slide 22: 1st Quarter: Key Figures
1st Q U A R T E R : K E Y F I G U R E S * 2006/07 - 2009/10 CAGR • TOP LINE GROWTH NET SALES: up 14.9% pa * € 9.7m € 9.4m € 8.1m • PROFITABILITY € 6.2m EBITDA: up 12.1% pa * EBITDA € 1.9m 2006/07 2007/08 2008/09 2009/10 € 1.8m € 2.2m € 1.3m NET SALES 2006/07 2007/08 2008/09 2009/10 Margin: 21.3% 22.
Slide 23: Cash Generative Business Model: Rolling Months to June 2009
CASH GENERATIVE BUSINESS MODEL: 12 MONTHS ROLLING AS AT 30 JUNE 2009 NET DEBT 10.316 -3.116 -2.299 643 3.743 4.201 9.234 €/000 12.000 10.000 +5.033 8.000 6.000 +458 +3.100 4.000 2.000 +2.942 0 +817 -2.000 -4.000 -13.432 Net Debt as Operating NWC Capex Dividends Other Taxes Net Debt as June 2008 Cash
Slide 24: The Path Ahead
THE PATH AHEAD Focus on aspirational content and brand awareness: profitability and cash generation International Focus on Logistic/Manufacturing internationalization /Financial platform in Asia Development of Exploiting target Brand Extension: positioning inTravel new licensing Items and agreement
Slide 25: Focus on Internationalization
FOCUS ON INTERNATIONALIZATION • New franchised stores in Italy and Europe • Expansion of presence in international markets adapting collection to local customers • Focus on “high potential markets” (mainly Far East) but very careful in investing money CHINA - BEIJING JIMBAO PLACE HONG KONG – TIME SQ
Slide 26: Development of Brand Extension
DEVELOPMENT OF BRAND EXTENSION • Leveraging on existing distribution network • Brand extension (from helmets to gloves from golf-staff-bags to mobile phone and etc..) to increase brand awareness and find some rooms of expansion in Mobile phone Helmets Voyager golf bag lifestyle. Cufflinks Gloves Wat
Slide 27: Apparel Project: Exploration
A P P A R E L P R O J E C T: EXPLORATION Introducing some “contamination” of Piquadro values with more marketable apparel values Exploration in new business areas which could drive new growth to core business Limited Investment by applying the same Piquadro business model (Far East manufacturing) Ma
Slide 28: Continuously Translating and Creating Sustainable Cash Generation
CONTINUOUSLY TRANSLATING AND CREATING, SUSTAINABLE CASH GENERATION Top line growth/stability in relation to the Maintaining high profitability more than market conditions average Industry Efficient working capital management Low capital intensive business model HIGH CASH FLOW GENERATION 28