Samsonite Group S.a. · HKEX:1910
Samsonite — Samsonite International — Q1 2023 Earnings Presentation
32 slides from Samsonite's earnings presentation, May 11, 2023
Slide 1: Samsonite International S.A. Stock Code: 1910
Samsonite International S.A. Stock Code: 1910
Slide 2: Disclosure Statement
o) DISCLOSURE STATEMENT This presentation and the accompanying slides (the “Presentation”), which have been prepared by Samsonite International S.A. (“Samsonite” or the “Company”), do not constitute any offer or invitation to purchase or subscribe for any securities, and shall not form the basis for
Slide 3: Agenda
S AGENDA O1 O2 OS O04 Business Update Financial Highlights Outlook Q&A
Slide 4: Business Update
BUSINESS UPDATE
Slide 5: 2023 is off to a tremendous start!
° 2023 is off to a tremendous start! * Achieved Q1 2023 net sales of US$852 million, up 57.4%) from 2022 and up 18.0%23) from 2019. * All regions, including Asia, have surpassed pre-pandemic net sales levels in the first quarter. * Our positive net sales momentum continued from the first quarter int
Slide 6: Q1 net sales and Adjusted EBITDA vs 2019 and 2022
Q1 2023 Adjusted EBITDA was US$72 million higher than 2019 on Reported Net Sales that were only US$20 million higher. (US$in millions, except growth) Q1 2019 Q1 2022 Q1 2023 Net Sales $832.0 $573.6 $852.1 (1)(2) Net Sales Growth vs. 2019 (25.6%) 18.0% Adj. EBITDA $84.6 $73.2 $156.4 Adj. EBITDA Margi
Slide 7: Quarterly Net Sales recovered to 2019 levels; Adjusted EBITDA nearly doubled
6 While quarterly Net Sales have recovered to 2019 levels, our Adjusted EBITDA in Q1 2023 nearly doubled from Q1 2019! Consolidated Reported Net Sales $1,000 $888.2 $832.0 $852.1 __ $800 $733.5 2 $601.2 : 5 s600 $568.3 $573.6 E sa00 $354.7 a 2 “ | $o Q1 2016 Q12017 Qi 2018 Qi 2019 Qi 2020 Qi. 2021 Q
Slide 8: North America up vs. Q1 2019
(2) (2) (2) (2) (2) (3) (3) (3) (3) North America was up +10.1%(1)(2) in Q1 2023 vs. Q1 2019 adjusting for ebags where we reduced less profitable 3rd party sales in 2020. • • • • • • • •
Slide 9: Asia net sales by country
India Japan South Korea Asia excl. China South East Asia(2) Australia China China net sales were up vs. 2019 at the end of Q1, and this momentum continued into April with net sales growth of +9.7%(1) vs. April 2019.
Slide 10: Profit profile of all regions fundamentally changed after restructuring
g The profit profile of our business in all regions has fundamentally changed following the restructuring actions taken during 2020 - 2021 By region Adjusted EBITDA North America Asia Europe Latin America $60 ——)/_—- $100 $40 $12 ——— $518 $10.0 $50 $80 $10 $30 $40 $8 $32.3 $60 30 9285 _y $20 $6 18.2
Slide 11: Demand for travel continued to grow
* Demand for travel continued to grow * The recovery in international travel, which had been significantly restrained over the last two years, has continued to fuel demand for our products. S Pepartures * The pace of recovery in Asia, particularly after the discontinuation of China’s strict zero-COV
Slide 12: Domestic travel leading rebound; international yet to fully recover
« Domestic travel has been leading the rebound with international travel yet to be fully recovered meters (RPKs) vs. International RPKs Domestic Revenue Passeng 20% -20% 0%) (24.6%) (26.5%) : (32.2%) 40% 60% (51.0%) -80% (30.9%) re) (28.3°4ee. 847. 8%4es.324) ag gar ana 94 ‘o0%) -100% (08.47990.394°
Slide 13: Innovative products recognized with Red Dot awards
* Our innovative products have been recognized with 12 Red Dot awards * Throughout the pandemic, we continued investing in product innovation, and all these awards are validation of our design teams’ talent and hard work. * The International Red Dot jury has awarded 11 of our amazing products across
Slide 14: Published our 2022 ESG report on April 20th
* Published our 2022 ESG report on April 20th OUR! 'RESPONSIBLE| JOURNEY, ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022
Slide 15: Evolved sustainability strategy framework: Product, Planet and People
» We have evolved our sustainability strategy framework to focus on Product, Planet and People * Simplified the compass to emphasize a focus on three strategic pillars - Products, Planet, and People - supported by a foundation of strong Governance. * Does not represent a fundamental shift in strateg
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 17: Q1 2023 Results Highlights
°Q1 2023 Results Highlights ussm ussm ussm ussm $900 $852.1 $600 $180 $800 $494.5 $160 $1564 $500 $700 $140 $600 $573.6 $400 $120 $500 Z ZZ ¢ Ls $100 300 z $400 B Z ZG 58.0% $80 873-2 (2.0) ) $300 Z Ze $200 Z Xe Ss $60 | 200 g $4796 $40 $ DD e100 12.8% $100 ZZ ZB $20 Zi so + 2 so + Z * so + ai 2022
Slide 18: Financial Highlights
* Financial Highlights Net sales in Q1 2023 of US$852 million increased by 57.4%) from Q1 2022. ¢ Strong growth from all regions, particularly Asia, where most of the region was still in heavy lockdowns in Q1 2022 and restrictions have now been lifted. * Adjusted EBITDA of US$156 million increased b
Slide 19: Financial Highlights (cont'd)
°* Financial Highlights (cont’d) * Advertising spend of US$50 million in Q1 2023 (5.9% of net sales) was double the US$24 million (4.2% of net sales) in Q1 2022, enabling our brands to capitalize on the strong recovery in travel demand. * As the strong profitability trend continues, we plan to incre
Slide 20: Constant Currency Growth
Constant Currency Growth 32.3% 89.4% 62.0%(1) 33.9%
Slide 21: Net sales change and currency impacts
+$324.7m (+57.4%(1)) (+33.9%) (+62.0%) (+89.4%) (+32.3%) EUR -US$6.2 million JPY -US$6.2 million INR -US$5.8 million RMB -US$4.8 million TRY -US$3.3 million ARS -US$2.8 million KRW -US$2.5 million Other -US$6.9 million (1) (1) (1)(2) (1)
Slide 22: Net sales by channel and travel vs. non-travel
Comparison of net sales by channel Comparison of Travel vs. Non-travel net sales +62.0% (1)(2) +40.6% (1)(2) +69.3% (1)(2) US$m US$m +52.3% (1)(2) +68.1% (1)(2) (3)
Slide 23: Strong sales growth for all core brands
° Strong sales growth for all core brands and strategic smaller brands Sams6nite TOMI ASSSELEAN samsonite | , 2 s150 5 sis = E s100 $75 $50 32s $0 12022 12023 cn 2002 an 2003 au 2002 a1 2023 Li lt All Other GREGORY. apault Brands $20 $5 $7 $60 4 gis $ $3.6 a $50 8 B sao z £2 35 ‘s $20 sa 10 so so so
Slide 24: Efficient operating structure drives margin improvement
* Our efficient operating structure continued to drive significant margin improvement SG&A within Adjusted EBITDA $400 $386.4 * Fixed SG&A expenses as a percentage of sales in $350 $338.1 Q1 2023 were 430bp lower than in Q1 2022 as we continued to manage an efficient operating structure $300 with ro
Slide 25: Balance sheet summary
US$m March 31, March 31, $ Chg Mar-23 % Chg Mar-23 • 2022 2023 vs. Mar-22 vs. Mar-22 Cash and cash equivalents 1,057.0 571.1 (485.9) -46.0% Trade and other receivables, net 210.4 306.7 96.3 45.8% Inventories, net 406.2 700.8 294.6 72.5% Other current assets 66.0 83.2 17.3 26.2% • Non-current assets
Slide 26: Working capital items
US$m March 31, December 31, March 31, $ Chg Mar-23 % Chg Mar-23 • 2022 2022 2023 vs. Mar-22 vs. Mar-22 Working Capital Items Inventories $ 406.2 $ 687.6 $ 700.8 $ 294.6 72.5% Trade and Other Receivables $ 210.4 $ 290.9 $ 306.7 $ 96.3 45.8% Trade Payables $ 351.4 $ 583.3 $ 464.6 $ 113.2 32.2% Net Wor
Slide 27: Capital expenditures
US$m Q1 2022 Q1 2023 • Retail 2.2 3.2 Product Development / R&D / Supply 1.9 2.2 • Information Services and Facilities 0.6 1.8 • Other 0.1 0.1 Total Capital Expenditures 4.8 7.4 Software 1.0 2.3 • Total Capital Expenditures and Software 5.8 9.6
Slide 28: Outlook
OUTLOOK
Slide 29: Outlook
” Outlook + With such strong performance in the first quarter, we are excited about our growth prospects for the rest of the year. As travel continues to rebound, we are well positioned to further grow our net sales at a fundamentally higher operating margin. + Inflation and recessionary concerns wi
Slide 30: Outlook (cont'd)
Outlook (cont’d) We will maintain disciplined expense management on our fixed SG&A expenses. We are now making selective investments in core strategic functions to support our continued sales growth. Our teams are highly energized with the strong recovery in travel and across our business, and we ar
Slide 31: Q&A
Q&A
Slide 32: Thank You
THANK YOU.
Samsonite International — Q1 2023 Earnings Presentation on 6ix