Samsonite Group S.a. · HKEX:1910
Samsonite — Samsonite International — FY2012 Earnings Presentation
53 slides from Samsonite's earnings presentation, March 2013
Slide 1: Samsonite International S.A. 2012 Annual Results
Samsonite International S.A. 2012 Annual Results
Slide 2: Disclosure Statement
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 or b
Slide 3: Agenda
Agenda Results Highlights Business Overview Financial Overview Outlook and Strategy for 2013 Q&A Page 3
Slide 4: 2012 Results Highlights
2012 Results Highlights Record net sales with constant currency growth of 16.8% Net Sales Adj. EBITDA Adj. Net Income US$m $206.6 13.2% US$m $38.3 15.4% US$m $30.4 22.2% 2,000 350 180 $167 $1,772 1,800 160 300 $287 $1,565 1,600 $137 $248 140 1,400 250 120 1,200 +16.8% 200 100 growth 1,000 Constant 1
Slide 5: Key Financial Highlights
Key Financial Highlights Net sales increased by 16.8% on a constant Net Sales currency basis to a record US$1,771.7 million. US$m $206.6 13.2% Currency fluctuation had a negative impact of approximately US$57 million on year-over-year 2,000 sales, driven mostly by the devaluation of the Euro $1,772
Slide 6: Key Financial Highlights
Key Financial Highlights Gross Margin Gross margin increased 11.0% on higher sales. US$m $94.1 11.0% As a percentage of sales, gross margin decreased 110bps due largely to: 1,000 $951 900 $857 Larger portion of sales coming from American Tourister at lower gross 800 margins than Samsonite 700 Larger
Slide 7: Key Financial Highlights
Key Financial Highlights Adj. EBITDA Adjusted EBITDA up 15.4% driven by sales growth US$m $38.3 15.4% and 30bp improvement in adjusted EBITDA as a percentage of sales. Adjusted EBITDA margin 350 improvement despite lower gross margin and negative impact of acquisitions is due mainly to: 300 $287 Sli
Slide 8: Key Financial Highlights
Key Financial Highlights Adj. Net Income US$m $30.4 22.2% Adjusted Net Income up 22.2% with strong 180 $167 EBITDA growth driving a 70bp improvement in 160 Adjusted Net Income as a percentage of sales. $137 140 Excluding acquisitions, Adjusted Net Income is up 23.3% at 9.7% of sales. 120 Reported pr
Slide 9: Five-Year Trend
Five-Year Trend 2008 to 2012 Sales CAGR of 9.1% and EBITDA CAGR of 23.8% Sales Adj. EBITDA US$m 3.8% -17.6% 18.1% 28.8% 13.2% US$m -14.5% -53.9% 241.6% 29.3% 15.4% 2,000 1,772 350 1,750 287 1,565 300 248 1,500 250 1,250 1,215 1,250 192 1,029 200 1,000 150 122 750 500 100 56 250 50 - - 2008 2009 2010
Slide 10: Agenda
Agenda Results Highlights Business Overview Financial Overview Outlook and Strategy for 2013 Q&A Page 10
Slide 11: Business Highlights
Business Highlights Record net sales performance led by North America and Asia with constant currency growth of 28.9%(1) and 21.0%, respectively. Europe constant currency sales growth of 4.9% despite challenging macroeconomic conditions in key markets of Italy and Spain. Strong sales growth in trave
Slide 12: Strong Sales Growth in All Regions
Strong Sales Growth in All Regions Net Sales Growth by Region 18.3% 28.8% -2.9% 3.6% Continued strong growth in Asia driven by US$m American Tourister, led by China, South Korea and $800 Japan. $700 $684.2 2011 Europe’s constant currency growth of 4.9% was led 2012 by Russia, Germany and Norway. Exc
Slide 13: Asia – Our largest region continues to show strong growth and profitability
Asia – Our largest region continues to show strong growth and profitability On a constant currency basis, Asia net sales are up 21.0%, fuelled by: American Tourister and Samsonite sales up Net Sales Adjusted EBITDA 53.0%(1) and 6.7%(1), respectively; US$ $105.8 18.3% US$ $28.5 27.1% Wholesale channe
Slide 14: Key Asia Markets - Continued strong growth, but lower than expectation
Key Asia Markets - Continued strong growth, but lower than expectation US$m $200 China growth continues to be strong 2011 2012 $178.0 at 20.4% on a constant currency $180 basis. However, 2nd half constant $160 currency growth of 12.6% is lower $144.6 $140 than 30.2% in the 1st half of the year, $122
Slide 15: North America – Tremendous growth in a mature and competitive market
North America – Tremendous growth in a mature and competitive market Net sales growth of 28.8%. Excluding acquisitions of Net Sales Adjusted EBITDA High Sierra and Hartmann, sales increased 22.2% despite relatively flat industry performance. US$ $111.7 28.8% US$ $20.9 35.4% 600 90 Sales growth drive
Slide 16: Europe – Growth of 4.9% on a constant currency basis
Europe – Growth of 4.9% on a constant currency basis, despite macroeconomic challenges On a constant currency basis, sales growth was 4.9% despite macroeconomic challenges in the region. Net Sales Adjusted EBITDA Significant devaluation of the Euro exchange rate to the USD had a negative impact on r
Slide 17: Latin America – Sales growth of 7.5% on constant currency basis
Latin America – Sales growth of 7.5% on constant currency basis, with strong results in Chile, Mexico and Brazil Net Sales Adjusted EBITDA Sales increased 7.5% on a constant currency basis. US$ $4.0 3.6% US$ $0.8 4.6% Excluding Argentina, sales growth of 12.2% on a 120 $112.6 20 constant currency ba
Slide 18: Sales in Key Markets
Sales in Key Markets Strong constant currency growth in all key markets, except Italy and Spain US$m $500 $469.8 2011 2012 $450 $400 $360.3 $350 Markets severely $300 impacted by macroeconomic $250 challenges $200 $178.0 $144.6 $150 $122.9 $109.8 $94.0 $102.3 $100 $66.0 $64.5 $67.5 $61.1 $59.6 $56.5
Slide 19: Sales in Emerging Markets
Sales in Emerging Markets Continued brand penetration driving growth in emerging markets US$m $40 $35.9 2011 2012 $35 $30 $28.0 $25 $19.4 $20 $18.2 $17.8 $16.8 $14.3 $15 $11.8 $11.7 $11.1 $9.6 $10 $8.5 $8.4 $7.5 $6.5 $5.7 $4.9 $5 $3.6 $0 Russia Thailand Taiwan Indonesia Turkey Brazil Malaysia South
Slide 20: Strong Sales Growth in Key Brands
Strong Sales Growth in Key Brands Net Sales Growth by Brand US$m 5.9% 41.9% 716.1% 4.0% $1,400 Continued growth in Samsonite across $1,295.7 $1,223.4 all regions – net sales up 9.7% on a $1,200 constant currency basis 2011 North America +21.7%(1), Asia 2012 $1,000 +6.7%(1), Latin America +8.0%(1), a
Slide 21: Portfolio of Brands Expanded With High Sierra and Hartmann
Portfolio of Brands Expanded With High Sierra and Hartmann (1) 2011 2012 6% 5% 5% 16% 19% 71% 78% Samsonite American Tourister Hartmann & High Sierra Other (1) 2012 proportions are based on Hartmann and High Sierra on a pro forma full year basis Sales of Samsonite up US$72.4 million or 5.9%, largely
Slide 22: Samsonite – Asia
Samsonite – Asia High quality and sophisticated products for the professional and seasoned business traveler and road warrior B-LITE COSMOLITE B-LITE FRESH AERIAL DURALITE AERIS COMFORT QUADRION PRO PRO-DLX 3 TORUS Page 22
Slide 23: Samsonite - Americas
Samsonite - Americas High quality and sophisticated products for the professional and seasoned business traveler and road warrior WINFIELD 2 HYPERSPACE LIFT LIFT SHERA UNYK 2 TECTONIC CRUISAIR BOLD SHARP SHOOTER XENON Page 23
Slide 24: Samsonite – Europe
Samsonite – Europe High quality and sophisticated products for the professional and seasoned business traveler and road warrior FIRELITE CUBELITE COSMOLITE B-LITE PARADIVER S’CURE Page 24
Slide 25: American Tourister
American Tourister Entry level product range for the value-conscious consumer ATMOSPHERA COLORA North America North America SMART Asia SPLASH North America CODE HS MV+ Asia Asia PRISMO Asia MV+ Asia SPEEDAIR Asia Page 25
Slide 26: High Sierra
High Sierra High quality and cool casual and outdoor adventure products for the road warrior / adventure traveler and outdoor enthusiast TECH SERIES HYDRATION PACK AT7 AT3 SIERRA LITE ENDEAVOR LUGGAGE EVOLUTION COMPUTER BACKPACK ELEVATE OFFICIAL U.S. SKI FAT BOY BACKPACK TITAN 55 TECH SERIES Page 26
Slide 27: Hartmann
Hartmann Heritage luxury products for the sophisticated leisure traveler J HARTMANN RESERVE COLLECTION WINGS COLLECTION LEATHER BUSINESS COLLECTION TWEED COLLECTION Page 27 INTENSITY COLLECTION
Slide 28: Strong Sales Growth in Travel and Casual Product Categories
Strong Sales Growth in Travel and Casual Product Categories Net Sales Growth by Product Category US$m 14.4% 0.0% 34.1% 12.5% -1.5% Travel remains our largest product category and $1,600 traditional strength with all regions contributing to 18.5% constant currency growth. $1,357.1 $1,400 Net sales in
Slide 29: Continued Expansion in Points of Sale
Continued Expansion in Points of Sale POS in North America up by about 3,400 Total Points of Sale Approximately 2,100 from acquisition of High Sierra Approximately 1,200 new doors at Target and Best 46,000 45,025 Buy Retail Wholesale 45,000 14 net new company owned stores 1,014 44,000 Total POS arou
Slide 30: Selection of Recently Opened Stores
Selection of Recently Opened Stores SAMSONITE BLACK LABEL Gum, Russia HIGH SIERRA Woodburn, Oregon, USA Page 30 SAMSONITE Tuen Mun, Hong Kong
Slide 31: Selection of Recently Opened Stores
Selection of Recently Opened Stores AMERICAN TOURISTER Indonesia SAMSONITE Ningbo, China SAMSONITE BLACK LABEL Shenyang, China Page 31
Slide 32: Compelling and Effective Advertising Campaigns on Level Spend
Compelling and Effective Advertising Campaigns on Level Spend Advertising Spend Compelling advertising campaigns continue US$m to drive sales growth ahead of the industry $70 in all regions. 2011 Total = US$123 million $60 $58 2012 Total = US$117 million Advertising spend at about the same level $54
Slide 33: Targeted Brand Advertising Asia - Samsonite
Targeted Brand Advertising Asia - Samsonite Samsonite Asia Brand Campaign 2012 – “Step Out 2” Message - Samsonite is an international brand that is emotionally engaging and relevant to Asian travelers Airports POS window displays Outdoor billboards Train stations Print publications TV In-flight TV P
Slide 34: Targeted Business Category Advertising Asia - Samsonite
Targeted Business Category Advertising Asia - Samsonite Page 34
Slide 35: Targeted Brand Advertising Asia – American Tourister
Targeted Brand Advertising Asia – American Tourister American Tourister Asia Brand Campaign 2012 – “Take On The World” Message - Consistent communication of American Tourister as an international, fashionable brand targeted towards young consumers, which offer products with great price value Train a
Slide 36: Targeted Brand Advertising Asia – American Tourister
Targeted Brand Advertising Asia – American Tourister Billboards Print publications Buses and trucks TV On-line POS window displays Page 36
Slide 37: Targeted Product Advertising North America - Samsonite
Targeted Product Advertising North America - Samsonite Travel Casual Appeared in airports, in-flight magazines and “Tough Tour” - Armored vehicle, obstacle course, games and pop-up store travel across the national print. country to college campuses and other youthful and active venues. 3rd straight
Slide 38: Targeted Brand Advertising North America – American Tourister
Targeted Brand Advertising North America – American Tourister New Partnership with Disney American Tourister is now “The official luggage of Walt Disney World and Disneyland” • Exclusive marketing rights to use that designation 365 days per year through most marketing channels. • Presence - Five pro
Slide 39: Targeted Product Advertising Europe - Samsonite
Targeted Product Advertising Europe - Samsonite 2012 Campaign – “Arrivals” 2013 Campaign – “Enjoy Every Second” Focus on product heros Cubelite and B-Lite and are run in TV, print, on-line, TV billboards and POS media Online Print publications Airports POS locations Page 39
Slide 40: Targeted Product Advertising Latin America
Targeted Product Advertising Latin America Casual – Targeting 13-18 year old girls, using TV celebrity as a brand ambassador to communicate Xtrem bags as a fashion brand. The campaign plays on “extreme” feelings of teenagers. Laptop Bags – Targeting 25-35 year old tech savvy scholars and professiona
Slide 41: Agenda
Agenda Results Highlights Business Overview Financial Overview Outlook and Strategy for 2013 Q&A Page 41
Slide 42: Key Financial Highlights
Key Financial Highlights EBITDA margin continues to improve, up 50bps to 16.4%, excluding the impact of the Hartmann and High Sierra acquisitions. Net cash position of US$116.0 million as of December 31, 2012, despite cash outlay of US$142.0 million for acquisitions. Generated cash flows of US$179 m
Slide 43: Financial Trends
Financial Trends Strong Growth Continues through 2012 Net Sales Adj. EBITDA US$m Y-O-Y Growth US$m 2,000 Rates 13.2% 350 $1,772 Excluding 2012 acquisitions, 2012 1,800 28.8% $287 $1,565 300 EBITDA as a percentage of sales 1,600 was 16.4%. $248 18.1% 1,400 250 $1,215 Consistent improvement in +16.8%
Slide 44: Strong Balance Sheet
Strong Balance Sheet US$m December 31, December 31, $ C hg D e c - 12 % C hg D e c - 12 2012 2011 v s . D e c - 11 v s . D e c - 11 Cash and cash equivalents 151.4 141.3 10.1 7.2% Trade and other receivables, net 222.2 171.6 50.6 29.5% Net cash position of US$116.0 million Inventories, net 277.5 237
Slide 45: Efficiently Managing Working Capital
Efficiently Managing Working Capital Adjusting for pro forma full year sales of Hartmann US$m December 31, December 31, $ Chg Dec-12 % Chg Dec-12 and High Sierra, net working capital efficiency is 2012 2011 vs. Dec-11 vs. Dec-11 12.6% at December 31, 2012, in line with Working Capital Items December
Slide 46: Capital Expenditure
Capital Expenditure Capital Expenditure by Project Type US$m 2012 2011 2012 retail capex consists mainly of new stores and remodels in Asia of US$8.5 million, Europe of US$3.5 million and Retail 16.9 16.1 North America of US$2.9 million. Capex on Product development / R&D / Product Development / R&D
Slide 47: Shareholder Information
Shareholder Information Shareholder Information as of February 5, 2013 Shares outstanding 1,407,137,004 Stock Price (HK$) 17.30 Amounts below stated in US$ 2012 EPS (US$) $0.11 2012 Adjusted EPS (US$) $0.12 Recommended distribution to shareholders (US$) $37,500,000 Payout ratio 25.3% Distribution pe
Slide 48: Share Price Performance from IPO Price
Samsonite Share Price Performance from IPO Price 20.00 Samsonite Hang Seng Index* 18.00 16.00 14.00 12.00 10.00 8.00 * Hang Seng Index rebased to Samsonite’s share price Page 48
Slide 49: Agenda
Agenda Results Highlights Business Overview Financial Overview Outlook and Strategy for 2013 Q&A Page 49
Slide 50: Robust Growth in Global Travel Underpins Demand for Luggage
Robust Growth in Global Travel Underpins Demand for Luggage Global luggage market is expected to grow at CAGR of 8.6% between 2010 – 2016 Growth fuelled by: Cheaper air fares driving up demand for travel Growing economies and changing consumer habits, particularly in emerging markets Asia luggage ma
Slide 51: Outlook & Strategy for 2013
Outlook & Strategy for 2013 Continue to gain market share and drive organic growth by leveraging the strength of our brands; Samsonite, American Tourister, High Sierra and Hartmann. Introduce new and innovative product designs, adapted to the needs of consumers in different markets, while maintainin
Slide 52: 2013 Key Product Introductions
2013 Key Product Introductions North America Europe Asia ASPHERE DUO AIR B-LITE SILHOUETTE SHPERE- HS MOTIO SPIN TRUNK SILHOUETTE SPHERE- SS BRITE LITE 2.0 SPECTROLITE SYNCONN Page 52
Slide 53: Agenda
Agenda Results Highlights Business Overview Financial Overview Outlook and Strategy for 2013 Q&A Page 53
Samsonite International — FY2012 Earnings Presentation on 6ix