Hermes International SCA · EURONEXT:RMS
Hermes International SCA — Hermès International — FY2015 Earnings Presentation
42 slides from Hermes International SCA's earnings presentation, February 2016
Slide 1: Hermès Results 2015
Slide 2: Highlights
Slide 3: Activity
ACTIVITY • Sales are up +8 % at constant rates and +18 % at current exchange rates • Operating income rose +19 % and operating margin reached 31,8 % of sales (31,5 % in 2014) • The net profitability is stable at 20 % of sales HERMÈS 2015 RESULTS /3
Slide 4: Activity
ACTIVITY • Activity was steady in the Group’s own stores in all regions (+9 % at constant rates) • The retail growth remained solid throughout the year • The favorable currency impacts represent € 389M on sales HERMÈS 2015 RESULTS /4
Slide 5: Activity
ACTIVITY • The development of all sectors continues thanks to the reinforcement of the production capacities, the success of the recent collections and a sustained demand HERMÈS 2015 RESULTS /5
Slide 6: Treasury
TREASURY • Cash flow reached €1 218M, up by 16% • Restated net cash position amounts to €1 614M as at 31st December 2015 against €1 494M as at 31st December 2014 HERMÈS 2015 RESULTS /6
Slide 7: Investments
INVESTMENTS Investments amount to € 267M, mainly due to : • The pursuit of increased production capacities, conservation of the maisons’ know-how and safeguarding its procurements • The development of the distribution network with more than twenty new or renovated branches HERMÈS 2015 RESULTS /7
Slide 8: Distribution Network
• 3 store openings (Porto Cervo, NY perfume, DISTRIBUTION Molière Mexico) and 2 concession take overs NETWORK (Fukuoka and Singapore Airport) • Renovation with extension in the Bond Street, Goum, Cannes, Turin, Dublin, The Gardens, Cidade jardim, Seattle, Boston, Dallas, Houston, Washington, Kyoto T
Slide 9: Production
PRODUCTION • Increase in production capacities at the two new sites in Isère and Charente • Inauguration of the new workshop in Héricourt • Pursuit of the investments for a second project in the Franche-Comté region HERMÈS 2015 RESULTS /9
Slide 10: Communication
COMMUNIC ATION • Nadège Vanhée-Cybulskis’ first collection of Women’s ready-to-wear • Wanderland exhibition in London, Dans l’œil du flaneur in Paris • 6th edition of the Saut Hermès at the Grand Palais • Festival des métiers in Bangkok and Sao Paulo • Leather Forever exhibition in Singapore • Launc
Slide 11: Results
Slide 12: Revenue and Net Result
REVENUE AND NET RESULT In €M In €M 1080,0 4 841 4700,0 980,0 4 119 973 4200,0 3 755 880,0 3 484 3700,0 859 780,0 790 3200,0 2 841 740 680,0 Sales : +13% CAGR over 10 years 2700,0 2 401 580,0 594 2200,0 1 914 1 765 480,0 1 625 1 515 1700,0 1 427 NR : +14.7% CAGR over 10 years 380,0 422 1200,0 280,0 7
Slide 13: Revenue by Geographical Area
REVENUE BY GEOGRAPHIC AL AREA HERMÈS 2015 RESULTS / 13
Slide 14: Revenue by Geographical Area
Lotte World Tower, Séoul REVENUE BY GEOGRAPHICAL AREA Change at In €M 2015 Constant rates France 684 6.2 % Europe (Excl. France) 906 10.8 % EUROPE 1 590 8.7 % Japan 600 18.3 % Asia-Pacific 1 694 5.1% ASIA 2 294 8.5 % Americas 884 6.8 % Others 73 - 2.2 % TOTAL 4 841 8.1 % HERMÈS 2015 RESULTS / 14
Slide 15: Revenue by Geographical Area
Lotte World Tower, Séoul REVENUE BY GEOGRAPHICAL AREA Other France 2% 14% Americas 18% Europe (excl. France) 19% Asia Pacific Japan (excl. Japan) 12% 35% HERMÈS 2015 RESULTS / 15
Slide 16: Revenue by Sector
REVENUE BY SECTOR HERMÈS 2015 RESULTS / 16
Slide 17: Revenue by Sector
REVENUE BY SECTOR Change at In €M 2015 constant rates Leathergoods - Saddlery 2 274 12.6% Ready-to-wear & Fashion Accessories 1 101 7.8% Silk & textiles 521 -0.5% Others Hermès Sectors 332 8.5% Perfumes 241 3.3% Watches 163 0.1% Others products 209 -0.2% TOTAL 4 841 8.1 % HERMÈS 2015 RESULTS / 17
Slide 18: Revenue by Sector
REVENUE BY SECTOR Perfumes Watches Other products 5% 3% 4% Leathergoods and Saddlery Other Hermès 47% sectors 7% Silk and Textiles 11% Ready-to-wear and Fashion accessories 23% HERMÈS 2015 RESULTS / 18
Slide 19: Employees
EMPLOYEES HERMÈS 2015 RESULTS / 19
Slide 20: Employees
EMPLOYEES + 500 people in 2015, mainly in production and sales including 7461 in France Employees worldwide HERMÈS 2015 RESULTS / 20
Slide 21: Income Statement
INCOME STATEMENT HERMÈS 2015 RESULTS / 21
Slide 22: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT % % In €M 2015 2014 revenue revenue Revenue 4 841 4 119 Cost of sales -1 642 -1 366 Gross profit 3 199 66.1% 2 753 66.8% Selling and Marketing -215 -4.4% -208 -5.0% Administrative expenses -1 204 -24.9% -1 084 -26.3% Others income and expense - 239 -4.9% - 162 -3.9% Rec
Slide 23: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT % % In €M 2015 2014 revenue revenue OPERATING INCOME 1 541 31.8 1 299 31.5 Net financial income -46 -25 Income tax expense -536 -424 -35.8 % -33.2% Net income from associates Net income attribuable to non 18 12 controlling interest -5 -4 NET INCOME ATTRIBUABLE TO OWNERS
Slide 24: Recurring Operating Income
RECURRING OPERATING INCOME 35 ROI in % Sales 33 32.1 32.4 31.2 31.5 31.8 31 29 27.8 26.9 26.5 27 25.5 25.5 25 24.2 23 21 19 17 15 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 HERMÈS 2015 RESULTS / 24
Slide 25: Net Result
NET RESULT In % of sales 23 20.9 21.2 21.0 20.9 21 20.1 19 17.3 17.7 17.7 17.6 17 16.4 15.1 15 13 11 9 7 5 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 HERMÈS 2015 RESULTS / 25
Slide 26: Investments
INVESTMENTS In M€ 2015 Stores and distribution 135 Production and securing of supplies 76 Real estate and others 56 Investments 267 HERMÈS 2015 RESULTS / 26
Slide 27: Restated Cash Flow Statement
RESTATED CASH FLOW STATEMENT In €M 2015 2014 Operating cash flows 1 218 1 049 Change in working capital 2 -105 Investments -267 -322 Dividends paid -840 -295 Other changes 7 76 Changes in Net cash position 120 403 Closing restated Net cash position 1 614 1 494 Opening restated Net cash position 1 49
Slide 28: IFRS Cash Flow Statement
Lotte World Tower, Séoul IFRS CASH FLOW STATEMENT In M€ 2015 2014 Operating cash flows 1 218 1 049 Change in working capital 2 -105 Investments -267 -325 Dividends paid -840 -295 Others changes 36 76 Changes in net cash position 149 400 Closing IFRS Net cash position 1 571 1 422 Opening IFRS Net cas
Slide 29: Evolution of the Operating Cash Flows
EVOLUTION OF THE OPERATING CASH FLOWS In €M 1218 1049 1018 885 723 2011 2012 2013 2014 2015 HERMÈS 2015 RESULTS / 29
Slide 30: Net Cash Position at Closing
NET CASH POSITION AT CLOSING In €M 1571 1422 1022 2013 2014 2015 HERMÈS 2015 RESULTS / 30
Slide 31: Evolution of Dividend by Share
EVOLUTION OF DIVIDEND BY SHARE Exceptional dividend + €5 + €5 3,35 2,95 2,70 2,50 2,00 Ordinary dividend In €/share For the period 2011 2012 2013 2014 2015 HERMÈS RÉSULTATS 2015 / 31
Slide 32: Outlook
HERMÈS 2015 RESULTS / 32
Slide 33: Outlook
OUTLOOK • Thanks to its unique business model, Hermès will continue its long-term development strategy based on creativity, maintaining control over know-how and a singular communication • The development of the distribution network will continue with the opening, renovation or extension of more tha
Slide 34: Outlook
OUTLOOK • As indicated in the February 10th 2016 publication, sales growth in 2016 could be below the medium-term goal of 8% revenue growth at constant exchange rates owing to the economic, geopolitical and monetary uncertainties around the world • In 2016, Hermès will celebrate "nature at a gallop"
Slide 35: Slide 35
Slide 36: Hermès 2015 Results
HERMÈS 2015 RESULTS / 36
Slide 37: Goum - Moscow
Goum - Moscow HERMÈS 2015 RESULTS / 37
Slide 38: Miami
Miami HERMÈS 2015 RESULTS / 38
Slide 39: London Bond Street
London Bond Street HERMÈS 2015 RESULTS / 39
Slide 40: Seattle
Seattle HERMÈS 2015 RESULTS / 40
Slide 41: Wanderland Exhibition
Wanderland Exhibition HERMÈS 2015 RESULTS / 41
Slide 42: Women's Ready-to-wear fashion show, Shoes Presentation
Women’s Ready-to-wear fashion show Shoes Presentation HERMÈS 2015 RESULTS / 42