Designer Brands Inc. · NYSE:DBI
Designer Brands — DSW — Merger or Acquisition (October 2018)
20 slides from Designer Brands's merger presentation, Oct 10, 2018
Slide 1: DSW Inc. Acquires Camuto Group
pS Ine. Acquires Camuto Group SPECIAL CONFERENCE®| OCTOBER 10, 2018
Slide 2: Safe Harbor
DSW INC. DSW ACQUIRES CAMUTO GROUP Safe Harbor Any statements in this release that are not historical facts, including the statements made in our “Fiscal 2018 Annual Outlook,” are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Refo
Slide 3: Camuto Group
DSW INC. DSW ACQUIRES CAMUTO GROUP CAMUTO GROUP
Slide 4: Company Overview: Camuto Group
DSW INC. DSW ACQUIRES CAMUTO GROUP Company Overview: Camuto Group ICONIC NAMESAKE & ROBUST BRAND PORTFOLIO Owned , Brands © VINCE CAMUTO co Joint Venture Brands 1 Cc corso como" Powerhouse brand family founded by Vince Camuto 17 years ago. Success of its footwear business led to growth in 40 license
Slide 5: Creates one of the largest footwear franchises
Creates one of the largest footwear franchises in
Slide 6: Become Integral to More Consumer Purchase Decisions
DSW INC. DSW ACQUIRES CAMUTO GROUP Become Integral to More Consumer Purchase Decisions Where Customers Buy Footwear DSW Today Camuto Group Department stores * macys NORDSTROM Dillards (and national chains) Stam Met frugal annies cows nay vorde la HUDSON'S BAY Taylor Soek Guseas Value DSW Chimes yma
Slide 7: Importance of product design and sourcing expertise
Importance of product design and sourcing expertise
Slide 8: Significant Advantages in Acquiring Camuto Group's Expertise
DSW INC. DSW ACQUIRES CAMUTO GROUP Significant Advantages in Acquiring Camuto Group’s Expertise CAMUTO CROUP Build * $70M—$80M operating expense * Risk from steep learning curve and long lead times (2-3 years) * No immediate scale Buy Y Attractive brand portfolio v Established sourcing and design ca
Slide 9: Camuto Group's Extensive Capabilities from Product Design to Distribution
DSW INC. DSW ACQUIRES CAMUTO GROUP 9 Camuto Group’s Extensive Capabilities from Product Design to Distribution @ Manufacturing locations @ Distribution location Brand Development Product ig Distribution
Slide 10: Partnering with Authentic Brands Group
DSW INC. DSW ACQUIRES CAMUTO GROUP 10 Partnering with Authentic Brands Group Authentic Brands Group Overview * Global brand management company backed by Leonard Green, General Atlantic, David Simon and Jamie Salter * 33 brands in celebrity, lifestyle and sports categories * 50,000 points of distribu
Slide 11: Building Camuto Group's Direct-to-Consumer Business
DSW INC. DSW ACQUIRES CAMUTO GROUP an Building Camuto Group’s Direct-to- Consumer Business cCAMUTO CROUP NEW IN FALL SHES * Leveraging DSW Inc.’s best-in-class retail and e-commerce expertise and infrastructure to accelerate Camuto Group’s direct- to-consumer presence * Attractive market opportunity
Slide 12: Transaction brings DSW Inc. close to $3.5 billion in revenues
DSW INC. DSW ACQUIRES CAMUTO GROUP Transaction brings DSW Ine. close to $3.5 billion in Camuto Group total valuation: approx. $375 million DSW DSW GE 100% 40% 60% Camuto Operations! Joint Venture? ~$200 million ~$137 million DSW Inc. contribution: ~$256 million 1. Production, sourcing and design inf
Slide 13: Camuto Group's 2017 Sales By Segment
DSW INC. DSW ACQUIRES CAMUTO GROUP Camuto Group’s 2017 Sales By Segment — Excludes Apparel and Licensing 2017 Wholesale Revenue Mix Services g% E-Commerce 9% Accessories | ~\
Slide 14: Acquisition Benefits
DSW INC. DSW CAMUTO GROUP Acquisition Benefits SS
Slide 15: How It Transforms Camuto Group
DSW INC. DSW ACQUIRES CAMUTO GROUP 45 How It Transforms Camuto Group Operational infrastructure to support inventory management across multiple channels Retail and digital expertise to develop brand’s Direct-to-Consumer experience Access to scalable global logistics and supply chain Extensive custom
Slide 16: How It Transforms DSW Inc.
DSW INC. DSW ACQUIRES CAMUTO GROUP 16 How It Transforms DSW Ince. Established wholesale and “first cost” design business Expanded intellectual property portfolio increases our addressable market Improve sourcing costs and product margin Immediate access to sourcing and design infrastructure to suppo
Slide 17: Increasing Our Addressable Market in Footwear
DSW INC. DSW ACQUIRES CAMUTO GROUP Increasing Our Addressable Market in Footwear North American footwear market: $72 billion Previously Others Athletic Specialty’ Sporting Online; Catalogue Dept Store’ Warehouse National Chain Post-acquisition Others Athletic Specialty’ Sporting Mass, Off Price Oude
Slide 18: Increasing Our Adjacent Markets Outside Footwear
DSW INC. DSW ACQUIRES CAMUTO GROUP 18 Increasing Our Adjacent Markets Outside Footwear Previously Post-acquisition fe
Slide 19: Projected Financial Benefits
DSW INC. DSW ACQUIRES CAMUTO GROUP 19 Projected Financial Benefits * Proprietary brand portfolio with healthy growth prospects * New revenue streams that accelerate our top-line trajectory towards $4 billion revenues long term * Revenue and profit synergies to drive significant earnings accretion lo
Slide 20: Camuto Group
x % CAMUTO GROUP in for: growth: Invest