Watches Of Switzerland Group Plc · LSE:WOSG
Watches Of Switzerland — Merger or Acquisition (May 2024)
32 slides from Watches Of Switzerland's merger presentation, May 2024
Slide 1: Watches of Switzerland Group PLC acquires Roberto Coin Inc.
Watches of Switzerland Group PLC acquires Roberto Coin Inc.
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements This presentation has been prepared by Watches of Switzerland Group PLC (the “Company”). It includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forwar
Slide 3: Transaction Highlights
Transaction Highlights • WOSG acquires Roberto Coin Inc. for $130m • Rights in perpetuity for the distribution of the Roberto Coin brand in the US, Canada, Central America and the Caribbean • Acceleration of WOSG strategy of growing presence in luxury branded jewellery sector • US is the #1 luxury j
Slide 4: The Luxury Branded Opportunity
The Luxury Branded Opportunity
Slide 5: US Is By Far #1 Global Domestic Market Per Capita
US Is By Far #1 Global Domestic Market Per Capita - UK Is #1 European Market Total Jewellery Spend per Capita $250 $200 $150 $100 $50 $- 2019 2020 2021 2022 2023 2024 2025 2026 2027 USA United Kingdom EU Source: Euromonitor, WOSG -5-
Slide 6: Jewellery Market Worldwide - Trend Is Inexorably Towards Brands
Jewellery Market Worldwide - Trend Is Inexorably Towards Brands CAGR: Brands 13% Non-Branded 1% Jewellery Market $ - % Share Brands v Non-Branded 100% 90% 17% 18% 20% 22% 25% 27% 30% 32% 34% 80% 70% 30% 29% 26% 28% 24% 60% 25% 20% 23% 50% 22% 40% 30% 20% 10% 0% 2019 2020 2021 2022 2023 2024 2025 202
Slide 7: Branded Jewellery Compared to Commodity/Bridal
Branded Jewellery Compared to Commodity/Bridal • Higher ASP • Higher frequency/collectible • Higher/increasing self-purchase • Exclusivity/selective distribution • Less promotional • Less cyclical -7-
Slide 8: WOSG Growth Mainly From Luxury Watches – Opportunity To Grow Jewellery
WOSG Growth Has Come Mainly From Luxury Watches – Major Opportunity To Grow Jewellery % Share Watches v Jewellery 2023 Total Market US & UK The Watches of Switzerland Group 5 Yr CAGR Watches Jewellery Watches Jewellery Watches: 20% Jewellery: 11% Source: Euromonitor/worldbank.org/WOSG data Confident
Slide 9: Multiple Growth Initiatives To Expand Luxury Jewellery Offering
Multiple Growth Initiatives To Expand Luxury Jewellery Offering New multi-brand luxury jewellery Boutique Roberto Coin Inc. acquisition New/expanded portfolio of brand partnerships investment in Mappin & Webb Showroom designs with dedicated jewellery Online growth rooms/galleries/hospitality -9-
Slide 10: About Roberto Coin
> / ee ) About Roberto Coin /
Slide 11: Roberto Coin
Roberto Coin The brand was founded in 1996 when Roberto Coin, a successful hotelier at the time, decided to pursue his true passions of art and fashion. His creativity took shape through the hands of the historical and most renowned Italian jewellery artisans, who brought Roberto Coin’s romantic and
Slide 12: About Roberto Coin
About Roberto Coin Based in Vicenza Product Ruby Located in the heart of Vicenza, otherwise known Roberto Coin signs each one of his as the City of Gold because of the proliferation of pieces with a small ruby casted inside goldsmiths, Roberto Coin jewellery champions the jewel, in direct contact wi
Slide 13: Brand Marketing and Celebrity Ambassadors
Brand Marketing and Celebrity Ambassadors - 13 -
Slide 14: Roberto Coin Inc. is a Major Player in the US Luxury Branded Market
Roberto Coin Inc. is a Major Player in the US Luxury Branded Market 2023 – Market Share at Retail Value (US) Others Roberto Coin Inc. is predominantly wholesale with significant potential in mono-brand retail Source: WOSG Estimate - 14 -
Slide 15: US Jewellery Market Mapping
US Jewellery Market Mapping Source: WOSG Research - 15 -
Slide 16: Roberto Coin Inc. – Historical Sales
Roberto Coin Inc. – Historical Sales $m 2022 benefitted from sell in of back log orders 160 January – April 24: Sell in and sell out at +HSD% 140 120 100 80 60 40 20 0 2019 2020 2021 2022 2023* CAGR 2019 to 2023* 12.7% *unaudited results - 16 -
Slide 17: Roberto Coin Inc. President
Roberto Coin Inc. President • 28 years as President of Roberto Coin Inc. • Remaining as President • Strong commercial team with average tenure over 20 years • Strong leadership of operations and finance • Business will operate independently and access/utilise Group resources of retail expertise, sho
Slide 18: Financials
Financials
Slide 19: Financials
Financials • Completed on 8 May 2024 • Purchase price of $130m (of which $10m is deferred for one year and contingent on the future profitability of the acquired business), subject to working capital adjustments • Acquisition satisfied by cash, financed via a new $115m term loan • Leverage following
Slide 20: The Opportunity
The Opportunity - 20 -
Slide 21: Opportunity to Accelerate Roberto Coin Inc. Growth
Opportunity to Accelerate Roberto Coin Inc. Growth Support business momentum and drive incremental growth through: • Mono-brand boutiques – owned and franchised with wholesale partners • Develop online direct and with existing partners • Enhanced in-store presentation with existing wholesale partner
Slide 22: Strategy: Mono-Brand Boutiques – Owned and Franchised
Strategy: Mono-Brand Boutiques – Owned and Franchised With Wholesale Partners Focus on WOSG shopping centre presence/adjacencies US property consultants’ review underway - 22 -
Slide 23: Mono-Brand Boutique Format Already Successful in Other Geographies
Mono-Brand Boutique Format Already Successful in Other Geographies Flagship Boutiques • 2010 Parizska, Prague, Czech Republic • 2015 Via Del Babuino, Rome, Italy • 2018 Dubai Mall, Dubai, UAE • 2019 Piazza San Marco, Venice, Italy • 2021 Mall of the Emirates, Dubai, UAE • 2021 The Avenues, Kuwait Ci
Slide 24: Strategy: Develop Online Direct and With Existing Partners
Strategy: Develop Online Direct and With Existing Partners • Supporting existing partners online, and the Roberto Coin website, through digital marketing and social media • Support from WOSG virtual boutique team • Increased investment in performance marketing - 24 -
Slide 25: Strategy: Enhanced In Store Presentation with WOSG and Existing Partners
Strategy: Enhanced In Store Presentation with WOSG and Existing Partners WOSG agreed projects: • One Vanderbilt – March 2024 • Mayors Aventura - June 2024 • Mayors Merrick Park – July 2024 • Mayors Tampa – November 2024 • Mayors St. Johns – November 2024 • Mayors Lenox – July 2025 • Betteridge Green
Slide 26: Mayors Lenox, refurbished showroom including Roberto Coin Shop-In-Shop
Mayors Lenox, refurbished showroom including Roberto Coin Shop-In-Shop - Opening July 2025 Luxury Jewellery Brand Luxury Watch Brand Luxury Jewellery Luxury Watch Luxury Watch Luxury Watch Luxury Watch Luxury Watch Brand Brand Brand Brand Brand Brand - 26 -
Slide 27: Attractive Paybacks on Showroom Investments
Attractive Paybacks on Showroom Investments • Owned and franchised mono-brand boutiques • Multi brand shop-in-shop WOSG and existing partners • Expected 2 year cash payback • Expected 1.5 year cash payback - 27 -
Slide 28: Strategy: Growing The High-End Roberto Coin Collection
Strategy: Growing The High-End Roberto Coin Collection • Mono-brand boutique presentation • WOSG VIPs • Events • Bespoke • Vicenza • Luxury department stores and wholesale partner events - 28 -
Slide 29: Strategy: Increased Brand Marketing
Strategy: Increased Brand Marketing • New campaign holiday season 2024 • Co-op campaigns with key partners - 29 -
Slide 30: Strategy: Develop Export Markets
Strategy: Develop Export Markets • Canada - follow US strategy • Mexico and Caribbean plan being developed - 30 -
Slide 31: Conclusion
Conclusion Acceleration of WOSG’s strategy for growing luxury branded jewellery Exclusive distribution rights in the US, Canada, Central America and the Caribbean Significant expansion opportunity in the growing #1 luxury branded jewellery market WOSG sales growth at combined retail/wholesale margin
Slide 32: Watches of Switzerland Group PLC acquires Roberto Coin Inc.
Watches of Switzerland Group PLC acquires Roberto Coin Inc.
Watches of Switzerland Group — Merger or Acquisition (May 2024) on 6ix