Samsonite Group S.a. · HKEX:1910
Samsonite — H1 2011 Earnings Presentation
45 slides from Samsonite's earnings presentation, August 2011
Slide 1: Interim Results
Interim Results For the six months ended June 30, 2011
Slide 2: Agenda
Agenda Business and Financial Highlights Business Overview Financial Overview Concluding Remarks 2
Slide 3: Business Highlights in 1H 2011
Business Highlights in 1H 2011 Significant sales and profit growth across all regions Growth driven by Strength of Brand Innovative Product Offerings Tailored to Local Markets Extensive Global Distribution and adding new Points of Sale Strong and Targeted Advertising and Promotion Investment Expansi
Slide 4: Financial Highlights in 1H 2011
Financial Highlights in 1H 2011 Net Sales Adjusted EBITDA Adjusted Net Income US$MM 900 +$191.0 +34.5% 140 +$33.8 +40.1% 80 +$11.4 +20.6% 800 $743.8 $117.9 70 $66.7 120 700 60 $55.3 100 600 $552.9 $84.1 50 500 80 40 400 60 30 300 40 20 200 20 10 100 0 0 0 1H 10 1H 11 1H 10 1H 11 1H 10 1H 11 Growth e
Slide 5: Business Overview
Business Overview 5 Sams@nite
Slide 6: Examples of Best Sellers
Examples of Best Sellers Asia Europe USA Cosmolite Cosmolite Winfield HardSide B-Lite B-Lite Silhouette SoftSide 6
Slide 7: Points of Sale Expansion
Points of Sale Expansion Points of Sale Commentary 38,000 Total Retail Total Wholesale Asia added 253 points of sale or 64% 37,511 of the total additions during the first six +393 months of 2011. The POS were added 37,500 primarily in Greater China (54) and 37,118 India (176) 783 37,000 Of the 49 po
Slide 8: Strong and Targeted Advertising and Promotion Investment
Strong and Targeted Advertising and Promotion Investment 1st Half Marketing Spend US$ MM % of Net Sales 4.4% 7.8% 8.1% 70 Spend on marketing increased $60 by 39.5% to $60 million or 60 8.1% of sales, in line with +39.5% sales growth 50 $43 Increased spend helping drive 40 growth ahead of the market
Slide 9: Marketing & Advertising - Asia
Marketing & Advertising Asia Samsonite – Step Out Campaign Korea - American Tourister Hong Kong Singapore - Viral China – American Tourister 9
Slide 10: Marketing & Advertising - Europe
Marketing & Advertising Europe Milan - Salone del mobile France – Paris BHV Web presence UK - Selfridges 10
Slide 11: Marketing & Advertising - Americas
Marketing & Advertising Americas US- Samsonite US - Cosmolite Web Presence 11
Slide 12: Continued Expansion of Business and Casual Products Across all Regions
Continued Expansion of Business and Casual Products Across all Regions Leather Business Cases Tablet Cases Ladies Business Tote ProDLX3 Upright Duffle Backpacks 12
Slide 13: Financial Overview
Financial Overview 3 Sams@nite
Slide 14: Financial Highlights in 1H 2011 Excluding Lacoste and Timberland
Financial Highlights in 1H 2011 Excluding Lacoste and Timberland* Commentary Net Sales Gross Margin Adjusted EBITDA Sales and profit growth across all US$MM 900 140 regions. Asia sales increased 56.2% +$214.4 +40.8% +$112.8 +38.2% +$44.4 +62.0% 450 year-on-year 800 $407.6 $739.5 $116.0 120 400 700 A
Slide 15: Strong Sales Growth in Each Region
Strong Sales Growth in Each Region Net Sales Growth by Region Commentary US$MM +50.1% +23.1% +31.9% +34.3% 1H 10 Growth across all regions driven by $300 1H 11 strong advertising campaigns and $267.6 meeting consumer preferences with $250 existing and new products $225.7 The growth in Asia was led b
Slide 16: Sales Growth by Brand
Sales Growth by Brand Net Sales Growth by Brand Commentary US$MM Strong sales growth from both +41.3% +60.5% -84.4% +7.0% Samsonite and American Tourister $576.0 brands $600 1H 10 American Tourister growth primarily $500 1H 11 driven by Asia with growth of US$38.4 $407.5 million or 91% in Asia $400
Slide 17: Sales Growth by Product Category
Sales Growth by Product Category Net Sales Growth by Product Category Commentary US$MM +40.6% +76.5% +29.8% (1) +24.3% -3.9% The increase in Travel category $600 $560.2 from 2010 driven by all regions but of note is Asia with 57% $500 growth $398.5 $400 1H 10 1H 11 All regions showed robust $300 gro
Slide 18: Strong Sales Growth Across Key Markets
Strong Sales Growth Across Key Markets Sales Growth by Key Markets 1H 10 1H 11 US$MM +30.7% +55.7% +52.7% +71.3% -1.3% +41.3% +34.7% +44.0% +51.7% $200 $180 $173.5 Impact of Lacoste & Timberland termination - +21% Adjusted for Lacoste & Timberland $160 $140 $132.7 $120 $100 Impact of Lacoste & $80 T
Slide 19: Significant Opportunities in Emerging Markets
Significant Opportunities in Emerging Markets Sales Growth by Emerging Markets 1H 10 1H 11 US$MM +26.5% +26.3% +65.4% +114.9% +15.1% +59.0% +47.8% +83.6% +32.2% $14 $12.4 $12 $9.8 $10 $7.7 $8 $6.3 $6.1 $6 $5.2 $5.2 $4.5 $3.8 $3.8 $4 $3.6 $2.9 $2.4 $2.4 $2.4 $2 $1.6 $1.6 $1.2 $0 Russia Thailand Taiwa
Slide 20: Asia Results – remains the fastest growing and most profitable region
Asia Results – remains the fastest growing and most profitable region Asia Commentary Net Sales Adjusted EBITDA Continued y-o-y- market penetration of the Samsonite (+49%) and American US$MM +$89.3 +50.1% +$14.2 +41.2% 300 60 Tourister (+91%) brands $267.6 $48.7 Wholesale and Retail channels 250 50
Slide 21: Europe Results – robust growth and improved profitability
Europe Results – robust growth and improved profitability Europe Commentary Net Sales Adjusted EBITDA Overall increases a result of continued US$MM marketing campaigns for existing and +$42.4 +23.1% +$2.4 +7.7% 40 new products, which includes 240 $225.7 38 continued success of our flagship 220 hards
Slide 22: Europe Results
Europe Results Europe (Euros) Commentary Net Sales Adjusted EBITDA Overall increases a result of continued marketing campaigns for €MM +€21.2 +15.4% -€0.1 -0.4% existing and new products, which 170 26 €159.3 includes continued success of our 160 25 flagship hardside and softside product lines: Cosmo
Slide 23: North America – significant growth and profitability
North America – significant growth and profitability North America Commentary Net Sales Adjusted EBITDA Sales growth and Adjusted EBITDA US$MM contribution led by the Samsonite +$45.2 +31.9% +$14.5 +87.6% 35 200 brand $186.8 $31.0 30 US Retail comparable store sales 150 $141.6 25 were up 31% y-o-y w
Slide 24: Latin America – strong growth and profitability
Latin America – strong growth and profitability Latin America Commentary Net Sales Adjusted EBITDA The increase in sales was driven by the successful expansion of the US$MM +$14.9 +34.3% +$3.1 +42.7% Chilean brand Xtrem and further 70 16 market penetration of the $58.2 14 60 Samsonite brand 12 50 $1
Slide 25: Financial Trends to 1H 2011
Financial Trends to 1H 2011 Excluding Lacoste and Timberland(1) Net Sales Gross Margin Adjusted EBITDA Adjusted Net Income US$MM 900 140 70 $65.3 450 800 $739.5 $407.6 $116.0 120 60 400 700 $363.5 $636.4 350 100 $95.5 50 $46.0 600 $294.9 $525.1 $40.5 (2) 300 500 80 $71.6 40 250 400 60 30 200 300 150
Slide 26: IPO Recap – Shareholding Structure
IPO Recap – Shareholding Structure Post-IPO Shareholding Structure (Post Greenshoe) Public CVC RBS Management 49.4% 28.7% 15.2% 6.7% Company sold 121.1 million new shares in the IPO; existing shareholders sold 574.8 million shares after exercise of Greenshoe Gross proceeds to the Company were HK$1,7
Slide 27: Results Highlights – Balance sheet key items comparison
Results Highlights – Balance sheet key items comparison 31 Dec 30 Jun Commentary (US$ MM) 2010 2011 Change Non-Current Assets 942.5 946.7 4.2 Gross IPO proceeds of US$225.3 million plus existing cash on-hand Trade and other receivables, net 146.1 182.7 36.6 used to repay loan notes, former senior cr
Slide 28: Working Capital
Working Capital Working Capital (US$MM) Commentary December June Chg % Chg Net working capital targeted at an 2010 2011 2010-2011 2010-2011 efficient level of approximately 14% of net sales Working Capital Items Inventories 222.7 276.1 53.4 24.0% Accounts Receivable growth in line with sales growth
Slide 29: Capital Expenditure – on plan
Capital Expenditure – on plan Capital Expenditure Commentary 1. Includes a total of US$4.8 million for (US$ MM) 1H 10 1H11 expansion of Curv Production Capacity and Production Facility in Hungary (1) Product Development / R&D/ Supply 3.0 6.8 2. Includes US$1.3 million Retail expansion and remodel in
Slide 30: Concluding Remarks
Concluding Remarks x0 Sams@nite
Slide 31: Concluding Remarks - 1st Half 2011 Strategic Review
Concluding Remarks - 1st Half 2011 Strategic Review All regions and key company metrics showed considerable growth. Brand, categories and channels all experienced growth in 1H 2011 vs. 1H 2010 Net sales growth of 40.8%(1) to US$744 million Adjusted EBITDA growth of 62.0%(1) to US$118 million Adjuste
Slide 32: Concluding Remarks – 2nd Half 2011 Strategic Plan
Concluding Remarks – 2nd Half 2011 Strategic Plan Continued execution of growth strategy Maintain high level of A&P investment to enhance brand equity and awareness Continued regional introduction of innovative products Business and Casual - maintain course: continued steady execution of growth stra
Slide 33: Appendix
Appendix 33 Sams@nite
Slide 34: Samsonite Historical - 1st Half Financials
Samsonite Historical - 1st Half Financials Key Financials (US$MM) Growth - Adjusted 2010-2011 1H 2010 1H 2011 for Lacoste & Growth Timberland Net Sales 553 744 34.5% 40.8% % Growth 14.9% 34.5% Gross Profit 311 410 31.8% 38.1% % Margin 56.2% 55.1% Adjusted EBITDA 84 118 40.1% 62.0% % Margin 15.2% 15.
Slide 35: Revenue by Region – 1st Half Results
Revenue by Region – 1st Half Results Net Sales by Region (US$MM) Y-o-Y Growth % Growth - Adjusted for 1H 2010 1H 2011 Lacoste & Timberland 2010-2011 Region Asia 178.3 267.6 50.1% 56.2% Europe 183.3 225.7 23.1% 34.6% North America 141.6 186.8 31.9% 33.3% Latin America 43.3 58.2 34.3% 36.1% Corporate(
Slide 36: Adjusted EBITDA by Region - 1st Half Results
Adjusted EBITDA by Region - 1st Half Results Adjusted EBITDA by Region (US$MM) 1H 2010 1H 2011 Adjusted Adjusted % EBITDA % Margin EBITDA Margin Region EBITDA percentage dropped from prior year as a result of the timing of additional regional advertising spend Asia 34.5 19.3% 48.7 18.2% Europe 31.5
Slide 37: Powerful Global Distribution Platform
Powerful Global Distribution Platform Breakdown of Global Points of Sale As of June 30, 2011 North Latin Asia Europe America America Total Total 2010 Wholesale Specialty stores / Travel stores 2,984 6,355 5,507 1,379 16,225 16,260 (1) Department stores 738 678 4,518 675 6,609 6,556 Mass merchants /
Slide 38: Gross Profit Margin by Region
Gross Profit Margin by Region Gross Profit Margin Commentary Gross Profit 1H 10 1H 11 (US$MM) As anticipated, pricing pressure from 65% 64% suppliers in China have impacted margins into 2011 59% 58% 56% 55% 55% 53% Labor costs and commodity process 45% have increased, negatively impacting 43% gross
Slide 39: Distribution, General and Administrative Expenses
Distribution, General and Administrative Expenses Distribution and G&A Expenses 1H 2011 Commentary US$MM Increases in concert with increased G&A % of Net Sales 8% 7% operating activities Distribution % 27% 26% Resilient model due to limited lease / of Net Sales retail exposure and lean central costs
Slide 40: Asia dashboard
Asia dashboard Net Sales by Country (1H 2011)(1) Net Sales by Brand (1H 2011) Net Sales by Channel (1H 2011) Other Growth Retail Country % of Group US$MM Asia % American 3% Rate (%) Tourister 13% 30% China 56% 63 24 Greater Hong Kong 8% 22 8 China 34.0% 67% 87% Taiwan 65% 6 2 India 53% 55 21 Samsoni
Slide 41: Europe dashboard
Europe dashboard Net Sales by Country (1H 2011)(1) Net Sales by Brand (1H 2011) Net Sales by Channel (1H 2011) Growth American Other 3% Country % of Group US$MM Europe % Rate (%) Tourister Retail 3% Italy 21%(4) 32 14 18% France 41% 30 13 Germany 44% 29 13 94% 82% Belgium 14% 26 12 Spain 17% 23 10 S
Slide 42: North America dashboard
North America dashboard Net Sales by Country (1H 2011)(1) Net Sales by Brand (1H 2011) Net Sales by Channel (1H 2011) Growth Rate Other Country % of Group US$MM American Retail (%) 3% Tourister United States 174 12% 24% Canada 13 Total Net Sales 25(3) 31% 187 Adjusted EBITDA 25(3) 50% 31 17%(2) 85%
Slide 43: Latin America dashboard
Latin America dashboard Net Sales by Country (1H 2011)(1) Net Sales by Brand (1H 2011) Net Sales by Channel (1H 2011) Growth Countries % of Group US$MM LA % Rate (%) Other (7) Retail Samsonite Chile 35% 29 50 29% 42% Mexico (2) 32% 16 28 53% Argentina 20% 8 14 71% Brazil (3) 59% 4 7 5% Other (4) - 1
Slide 44: Financial Trends to 1H 2011
Financial Trends to 1H 2011 Net Sales Gross Margin Adjusted EBITDA Adjusted Net Income US$MM 900 140 80 450 $410.0 800 $743.8 $117.9 70 $66.7 400 $379.0 120 $107.9 700 $662.4 350 60 $55.3 $310.6 100 600 $552.9 $50.3 300 $84.1 50 500 80 250 40 400 200 60 30 300 150 40 *15% *16% *16% 20 200 100 20 10
Slide 45: Net Income Normalization Adjustments
Net Income Normalization Adjustments Adjusted Net Income (US$MM) FY2010 1H 2010 1H 2011 Reported Net Profit/(Loss) 366.8 36.3 24.8 Minority Interest (11.8) (5.6) (8.4) Profit/(Loss) Attributable to Equity Holders 355.0 30.7 16.4 Impairment/(Reversal of impairment) of intangible assets and fixed asse