Piquadro S.p.a · MIL:PQ
Piquadro — Investor Presentation (April 2011)
34 slides from Piquadro's investor presentation, Apr 19, 2011
Slide 1: London - April 19, 2011 – Investor Presentation
London - April 19, 2011 – Investor Presentation
Slide 2: Important Information
IMPORTANT INFORMATION • The information provided in this presentation is being furnished to you solely for your information on a confidential basis. Neither this document nor any copy thereof may be reproduced, redistributed or passed on, in whole or in part, to any other person. Neither this presen
Slide 3: A Rapid Path to Success
A RAPID PATH TO SUCCESS 1998-2003 CAGR: +26.1% (1) 2004/05-2009/10 CAGR: +22.1% (2) €52m €52m Launch of €46m Piquadro €36m brand €25m €16m €19m €13m 30,00% 29,50% 27,8% 26,4% €10m 25,10% €8m €5m €6m 1998 1999 2000 2001 2002 2003 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 SALES EBITDA Margin • S
Slide 4: Unique and Distinctive Brand Identity
UNIQUE AND DISTINTIVE BRAND IDENTITY Distinctive and well recognised brand for “moving” people in leather goods industry. Aspirational brand: high quality, technological mood, innovation, design , ergonomic performance, clever features and performances. Three positioning elements: design, comfort an
Slide 5: Premium/Performance Positioning
PREMIUM /PERFORMANCE POSITIONING Clear distinction from competitors at comparable price level through commitment to innovation, design, high quality and ergonomic performance. Customer “community” recognized in brand values. Target customer: Man and Woman aged 25/50 positive towards modern technolog
Slide 6: Brand Awareness
BRAND AWARENESS BAG’S BRANDS KNOWN, OWNED, DESIRED – Elite Research on Italian Bags Market 2009 - Eurisko (GFK Group) Basis: total sample =1000 (%) KNOWN OWNED DESIRED LOUIS VUITTON 64 SAMSONITE 24 LOUIS VUITTON 30 SAMSONITE 53 LOUIS VUITTON 23 GUCCI 16 GUCCI 48 GUCCI 13 SAMSONITE 15 PRADA 45 PRADA
Slide 7: Brand Awareness: Bags' Brands Trend
BRAND AWARENESS BAGS’ BRANDS TREND - Elite research on Italian Bags Market 2009 - Eurisko (GFK Group) LOUIS VUITTON PRADA GUCCI 60 60 60 WISHED WISHED 40 40 OWNED 40 OWNED 28 30 21 22 WISHED 17 16 16 16 17 17 18 15 17 16 20 27 23 20 14 20 13 OWNED 10 10 15 12 14 16 13 16 13 11 12 12 13 11 9 10 9 8 0
Slide 8: Brand Awareness: Bags' Brands Top 15
BRAND AWARENESS BAGS’ BRANDS TOP 15 - Elite research on Italian Bags market 2009 - Eurisko (GFK Group) Basis: total sample =1000 (%) OTHERS REFERENCES 65 CHANEL COCCINELLE DOLCE E GABBANA LOUIS VUITTON FENDI ARMANI FURLA TOD'S HOGAN 55 MANDARINA GUCCI PRADA DUCK RATIONALITY HERMES HEDONISM SAMSONITE
Slide 9: Wide, Complementary Mono-Brand Product Mix
WIDE, COMPLEMENTARY MONO-BRAND PRODUCT MIX Complementary and extensive product offering, including professional bags, travel items, women’s bags, small leather goods and other accessories Product strategy: On-Going Collections and Seasonal Collections: • On-Going collections (75%/70% of turnover): l
Slide 10: The Exclusive iPad Bespoke Bag Service
THE EXCLUSIVE iPad ® BESPOKE BAG SERVICE Piquadro is offering an iPad® bespoke bag service in a selection of boutiques. Customers will design their own Piquadro product choosing from a choice of Piquadro styles, metal detailing samples, sewing tread colors and amongst a selection of refined Italian
Slide 11: Flexible and Efficient Business Model
FLEXIBLE AND EFFICIENT BUSINESS MODEL Internal product development and centralized procurement system. Partly-outsourced production (70%) guaranteed by select, controlled third-party manufacturers (China, Taiwan, Hong Kong). Efficient Procurement From 30% to 40% in-house production through Low Capex
Slide 12: Research & Development
RESEARCH & DEVELOPMENT All Piquadro products are the fruit of a careful design phase. Even the tiniest detail is studied and designed so that the end result will be a design product with a well- defined identity. An in-house team of Italian designers, who know and interpret the company values, devel
Slide 13: Testing and Quality Control
TESTING AND QUALITY CONTROL Adhesion of Coating Tensile Seam Tumble Test Breaking Veslik Test on Leather Handle Jerk Mileage Test A unique Quality and Testing department in Europe Leather Industry. More than twenty control both on raw material (leather and metal accessories) and finished product. Ca
Slide 14: Manufacturing
MANUFACTURING Partly-outsourced production (from 60% to 70%) guaranteed by select, controlled third- party manufacturers (Far East). 14 London– April 19, 2011 – Investor Presentation
Slide 15: International Multi-Channel Distribution Network
INTERNATIONAL MULTI-CHANNEL DISTRIBUTION NETWORK International Presence Presence in approx. 50 countries with strategic mix of DOS and Wholesale channel. Growing mono-brand network of now 107 Stores (51 DOS, 56 franchised stores) worldwide. End of March 2012 more than 130 worldwide monobrand Stores
Slide 16: International Multi-Channel Distribution Network: DOS
INTERNATIONAL MULTI-CHANNEL DISTRIBUTION NETWORK DOS 16 London– April 19, 2011 – Investor Presentation
Slide 17: International Multi-Channel Distribution Network: Franchising
INTERNATIONAL MULTI-CHANNEL DISTRIBUTION NETWORK FRANCHISING 17 London– April 19, 2011 – Investor Presentation
Slide 18: International Multi-Channel Distribution Network
INTERNATIONAL MULTI-CHANNEL DISTRIBUTION NETWORK 18 London– April 19, 2011 – Investor Presentation
Slide 19: Openings Evolution per Year
OPENINGS EVOLUTION PER YEAR DOS FRANCHISING 19 London– April 19, 2011 – Investor Presentation
Slide 20: Soon Next Opening
I N T E R N A T I O NA L D E V E L O P M E N T SOON NEXT OPENING DOS: Shenzhen Tianjin Luxury Outlet Mall - may 2011 Mestre (Venice) Shopping mall Auchan - april 2011 Hong Kong Queen’s Road – august 2011 FRANCHISING: Madrid Airport - may 2011 Shaoxing Dep. Store - may 2011 Orio al Serio (BG) Shoppin
Slide 21: Beyond Crisis: Fiscal Year per Quarter 2010/11 vs Previous Year
BEYOND CRISIS : FISCAL YEAR per QUARTER 2010/11 vs PREVIOUS YEAR (€m) Q1 : up 14.8% Q2 : up 19.8% Q3 : up 21.2% 13,92 16,87 NET SALES : 10,88 13,55 16,24 9,47 2009/10 2010/11 2009/10 2010/11 2009/10 2010/11 EBIT : Q1 : up 40.7% Q2 : up 24.5% Q3 : up 23.0% 4,33 4,15 3,48 3,37 1,39 1,96 2009/10 2010/1
Slide 22: Summary Consolidated Income Statement
SUMMARY CONSOLIDATED INCOME STATEMENT INCOME STATEMENT Nine months FY Ending March 31st (€m) (ending Dec 31st) 2008 A 2009 A 2010 A 2009 A 2010 A Net sales 45.9 51.7 52.2 36.9 43.9 % growth +12,4% +1,0% +19.1% Other revenues 0.7 0.9 0.8 0.5 0.9 Material costs (7.9) (9.8) (8,4) (5.6) (5.7) Service co
Slide 23: Strong Top Line Growth
STRONG TOP LINE GROWTH In the latest 9 months DOS up (€m) Nine Months Net Sales(1): up 19.1% 28.8% (SSSG +10.8% at current € 44,0 m exchange rate /+9.6% at constant € 36,9 m exchange rate). In Q3 SSSG up by 10.4% at current exchange rate and +9.0% at parity. Wholesale up 16.3%. Europe has 2009/10 Q3
Slide 24: Sustainable High Profitability
SUSTAINABLE HIGH PROFITABILITY Ebitda and Ebit : (1) in a very strong growth Nine months 10/11 EBITDA up 50 bps € 17,78 m € 9,72 m impacted by very positive perfomance of DOS business unit and maintained margin on 2009/10 Q3 2010/11 Q3 Wholesale unit. Margin: 26.3% 26.8% • DOS performance up 220 bps
Slide 25: Group Net Profit
GROUP NET PROFIT 9M 10/11 Net Profit in increase by Nine Months Net Profit(1): up 33,5% more than 33%. € 6,5 m € 4,9 m Low impact of interest expenses notwithstanding negative delta exchange currency rate. 2009/10 Q3 2010/11 Q3 % of sales: 13.2% 14.8% No major changes in effective tax rate. Latest F
Slide 26: Summary Balance Sheet
SUMMARY BALANCE SHEET FINANCIAL BALANCE SHEETS As of March 31st Nine Months (€m) (as of Dec. 31th) 2008A 2009A 2010A 2009 A 2010 A Net Working Capital 12.8 14.5 13.9 17.7 19.9 Net Tangible Assets 10.2 11.5 11.5 11.5 11.6 Net Intangible Assets 1.2 1.2 0.6 0.7 0.8 Net Financial Assets 0.9 1.3 1.6 1.5
Slide 27: Lean Capital Structure
LEAN CAPITAL STRUCTURE Total Capitalization Net Debt/ 0.97 0.63 0.25 NET FINANCIAL DEBT Equity (as of March,31) 24.1 27.4 26.3 (€m) As of March 31 As of December 31 0,2 0,1 2008A 2009A 2010A 2009A 2010A 0,2 Short-term Net Debt 1.6 2.8 3.3 5.9 6.5 16,7 Long-term Net Debt 12.4 14.5 11.3 12.6 11.0 12,1
Slide 28: Cash Generative Business Model
CASH GENERATIVE BUSINESS MODEL Cash Conversion(1) The Company has high conversion of EBITDA into operating cash flow : 11,3% 13,7% 24.2% • Limited Capex requirement 37.1% 22,1% 15.1% • Efficient working capital 10.2% management Total 93,1% EBITDA High performance in March 10 due 64,2% 60.8% 52.7% al
Slide 29: 12 Months Rolling Cash Flow as of Dec 31, 2010
12 MONTHS ROLLING CASH FLOW AS OF DEC 31, 2010 Net Financial Debt €/000 11.327 -4.402 -2.156 -4 3.996 6.212 9.266 9.266 +3.054 +2.216 +4.000 +2.152 +2.246 -15.729 Net Debt as Operating NWC Net Dividends Other Taxes Net Debt as Dec. 2009 Cash Flow Capex Movements Dec. 2010 29 London– April 19, 2011 –
Slide 30: The Investment Values
THE INVESTMENT VALUES NET PROFIT generated in the last 3 years 21,1 mln € DIVIDENDS paid in the last 3 years equal to 10,2 mln € INVESTMENTS effected in the last 3 years equal to 6,8 Mln € NET DEBT reduced in the last 3 years by 5,7 Mln € 30 London– April 19, 2011 – Investor Presentation
Slide 31: Shareholders & Reliability Award
S H A R E H O L D E R S & R E L I A B I L I TY A W A R D • Others non public shareholders (less than 2% share capital) are AXA, Royce & Associates, Ennismore Fund , Kairos Investment, CAAM, SGAM, Eurizon, Fideuram, Deutsche Asset Management ,First Capital . • Piquadro has been awarded by Institution
Slide 32: The Path Ahead
THE PATH AHEAD Focus on aspirational content and brand awareness: profitability and cash generation Focus on International internationalization Logistic/Manufacturing/ Financial platform in Asia Development of Exploiting target Brand Extension: positioning inTravel Items new licensing and ‘explorati
Slide 33: Focus on Internationalization
FOCUS ON INTERNATIONALIZATION Focus on “high potential markets” (mainly Far East’s one) in DOS and Franchising exploiting the huge growth of those markets and the investment already effected in retail activities. Flagships in London and Paris in a three years period as a way to globalise the brand a
Slide 34: Aiming to Translate and Create Sustainable Cash Generation
AIM ING TO TRANSLATE AND CREATE ,SUSTAINABLE CASH GENERATION Maintaining high profitability more than Top line growth average industry Efficient working capital management Low capital intensive business model HIGH CASH FLOW GENERATION 34 London– April 19, 2011 – Investor Presentation