Kering Sa · EURONEXT:KER
Kering Sa — FY2015 Earnings Presentation
42 slides from Kering Sa's earnings presentation, Feb 19, 2016
Slide 1: Full year results 2015
Full year results 2015 February 19 2016
Slide 2: Disclaimer
DISCLAIMER This presentation does not constitute an offer of securities for sale in the United States of America or any other jurisdiction. Certain information contained in this document may include projections and forecasts. They express objectives based on current assessments and estimates of the
Slide 3: François-Henri Pinault, Chairman and CEO
FRANÇOIS-HENRI PINAULT CHAIRMAN AND CEO
Slide 4: Analysis of results
ANALYSIS OF RESULTS JEAN-MARC DUPLAIX GROUP CHIEF FINANCIAL OFFICER
Slide 5: 2015 Operating Performance €11.6bn
2015 OPERATING PERFORMANCE GROUP REVENUE DYNAMICS GROUP REVENUE BREAKDOWN Change in % By region, and comparable growth in % FY 13 FY 14 FY 15 RoW 10% (+3%) Western 15.4% Europe 31% (+10%) Asia Pacific FY15 revenue 4.5% 4.6% 26% (-1%) €11.6bn 4.0% 4.0% 0.1% Comparable growth * Reported growth Japan N
Slide 6: 2015 Operating Performance
2015 OPERATING PERFORMANCE GROUP RECURRING OPERATING INCOME GROUP EBITDA In €m, change and recurring operating margin in % In €m, change and EBITDA margin in % +3% -1% 1,664 -44 +65 2,056 +27 1,647 -5% +6% +3% 1,991 0 16.6% 14.2% 17.8% 19.8% 2014 H1 change H2 change 2015 2014 H1 change H2 change 201
Slide 7: Luxury Activities
LUXURY ACTIVITIES 2015 revenue: +16.4% reported; +4.1% comparable Solid operating performance X%: comparable growth Reported +7% -3% 0% 7,865 In €m 2015 change +10% +2% Revenue 7,865 +16.4% 6,759 Recurring operating income 1,708 +2.5% Recurring operating income margin 21.7% -2.9pt EBITDA 2,025 +5.5%
Slide 8: Detailed Performances of Luxury Brands
DETAILED PERFORMANCES OF LUXURY BRANDS GUCCI BOTTEGA VENETA 2015 revenue: +0.4% comparable 2015 revenue: +3.2% comparable Reported Reported In €m 2015 change In €m 2015 change Revenue 3,898 +11.5% Revenue 1,286 +13.7% Recurring operating income 1,032 -2.2% Recurring operating income 375 +4.8% Recurr
Slide 9: Sport & Lifestyle Activities
SPORT & LIFESTYLE ACTIVITIES 2015 revenue: +13.5% reported; +5.9% comparable Confirmed growth trajectory X%: comparable growth Reported In €m 2015 change +12% +9% 3,683 +6% -1% Revenue 3,683 +13.5% 3,245 +3% Recurring operating income 95 -31.1% Recurring operating income margin 2.6% -1.6pt EBITDA 16
Slide 10: Financial Performance
FINANCIAL PERFORMANCE In €m 2015 2014 11,584 10,038 Revenue Gross Margin 7,074 6,296 Recurring operating income 1,647 1,664 Other non-recurring operating income and expenses (394) (112) Net financial charges (249) (197) Corporate income tax (322) (326) Share in earnings of associates (2) (1) Net res
Slide 11: Free Cash Flow from Operations
FREE CASH FLOW FROM OPERATIONS 2014-2015 CHANGE In €m 204 -243 1,078 -349 -30 660 2014 Change from Change from Hedging Eyewear early 2015 operations (Luxury, exceptional real impact termination payment Sport, Corporate) estate operations 19.02.16 12
Slide 12: Change in Net Financial Debt
CHANGE IN NET FINANCIAL DEBT 2014-2015 BRIDGE In €m and net debt / EBITDA ratio 148 4,679 76 4,535 -4 4,391 -660 562 166 2.2x 2.3x 2.2x Net debt at Free cash flow Net interest paid Dividend paid Purchase of Discontinued Translation Net debt at December from and dividend Kering shares activities impa
Slide 13: 2015 Balance Sheet: Healthy Financial Structure
2015 BALANCE SHEET HEALTHY FINANCIAL STRUCTURE CONDENSED BALANCE SHEET LIQUIDITY OVERVIEW (in €m) €23.8bn 1,770 €11.6bn Equity Non-current €18.5bn assets €3.1bn Non-current liabilities 693 639 €3.3bn 593 Current 536 liabilities 448 Current €4.2bn Gross debt assets €5.8bn Cash €1.1bn Actif Assets Pas
Slide 14: Unchanged Dividend
UNCHANGED DIVIDEND DIVIDEND PER SHARE (in €) 4.00 4.00 3.75 3.75 3.50 2011 2012 2013 2014 2015* DIVIDEND PAYOUT (in %) 102.2% 59.8% 61.6% 64.0% 59.4% 49.6% 41.8% 42.9% 37.3% 38.5% 2011** 2012** 2013** 2014 2015* %%du ofRNPG poursuivi recurring courant net income, group share %%du ofcash flow cash av
Slide 15: Strategy and Outlook
STRATEGY AND OUTLOOK FRANÇOIS-HENRI PINAULT CHAIRMAN AND CEO
Slide 16: Our Strategic Vision: Four Pillars
OUR STRATEGIC VISION: FOUR PILLARS VALUE CREATION BY 1 MULTIBRAND MODEL 2 ORGANIC GROWTH 3 GROUP AND BRANDS • Balanced portfolio: • Edge provided by integrated, - of complementary brands • Foundation: specialized group (industrial Secular growth of our markets operations, logistics, real - built thr
Slide 17: Our Strategic Vision: Multibrand Model
OUR STRATEGIC VISION: FOUR PILLARS 1 MULTIBRAND MODEL PHASE I CONSTRUCTION • Balanced portfolio: SO FT LUXURY HARD LUXURY SPO RT&LI FESTYLE - of complementary brands - built through acquisitions and Flagship brand Gucci Boucheron developed through organic Pomellato Generalist Jewelry growth Dodo Pum
Slide 18: Our Strategic Vision: Organic Growth
OUR STRATEGIC VISION: FOUR PILLARS 2 ORGANIC GROWTH CAPITAL LEVER ACCELERATOR BRAND ATTRACTIVENESS SAME-STORE PERFORMANCE ONLINE PRESENCE • Creation: • Develop productivity and sales energy, audacity density • A fundamental vector • Optimize in-store product to build, disseminate & maintain • Produc
Slide 19: Strategy and Outlook: Jean-François Palus
STRATEGY AND OUTLOOK JEAN-FRANÇOIS PALUS GROUP MANAGING DIRECTOR
Slide 20: Gucci Update: Rejuvenation on Track
GUCCI UPDATE: REJUVENATION ON TRACK 2016 2015 2015 2016 2015 2017+ 2016 PRODUCT BRAND BRAND POSITIONING PERCEPTION EXPERIENCE • Simplified offering • New, energetic creative vision • New online presence, coherent & integrated • High-impact product identity • Contemporary design • Deployment of new s
Slide 21: Gucci Update: Rejuvenation on Track
GUCCI UPDATE: REJUVENATION ON TRACK STREAMLINED OFFERING EXPANDED CLIENT BASE (# SKUs, Leather Goods, Shoes, RTW, index 100) FASHION AUTHORITY RESTORED • Local clientele returning in our stores: France, Italy, -21% Germany, UK… -32% • New, younger clients -60% • Regained sales momentum: RTW, Shoes •
Slide 22: Conclusion and Outlook
CONCLUSION AND OUTLOOK OUR STRATEGIC VISION: FOUR PILLARS 3 VALUE CREATION Focus on organic growth REVENUE Slower network expansion Optimization of geo-pricing OPERATIONS Higher store productivity Improved RETURN Supply Chain Management return on Adaptation of organizations invested capi
Slide 23: Q&A
Q&A
Slide 24: 2015 Annual Results: Appendices
2 0 1 5 A N N U A L R E S U LT S APPENDICES 19.02.16 25
Slide 25: 2015 Revenue
2015 REVENUE Change In €m, continuing operations 2015 2014 €m % Gucci 3,898.0 3,497.2 400.8 +11.5% Bottega Veneta 1,285.8 1,130.5 155.3 +13.7% Saint Laurent 973.6 707.3 266.3 +37.7% Other brands 1,707.9 1,423.6 284.3 +20.0% Luxury 7,865.3 6,758.6 1,106.7 +16.4% Puma 3,403.4 2,990.2 413.2 +13.8% Othe
Slide 26: Luxury Activities 2015 revenue
LUXURY ACTIVITIES 2015 revenue: €7,865m +16.4% reported; +4.1% comparable Revenue breakdown by region RoW Revenue y-o-y change Western 7% Europe In €m % comparable % reported 33% Asia Pacific Q1 15 1,754 -2.6% +10.9% 30% Q2 15 2,008 +8.0% +24.6% Q3 15 1,889 +3.1% +14.0% North Q4 15 2,215 +7.2% +16.0
Slide 27: Gucci
GUCCI 2015 revenue: +11.5% reported; +0.4% comparable Growth momentum gaining traction X%: comparable growth Retail (82% of sales): +3% Reported In €m 2015 change -6% +12% -10% -12% 3,898 +9% Revenue 3,898 +11.5% +1% +18% 3,497 Recurring operating income 1,032 -2.2% Recurring operating income margin
Slide 28: Gucci 2015 revenue
GUCCI 2015 revenue: €3,898m +11.5% reported; 0.4% comparable Revenue breakdown by region RoW Revenue y-o-y change Western 7% Europe In €m % comparable % reported 26% Asia Pacific Q1 15 869 -7.9% +3.7% 35% Q2 15 1,005 +4.6% +19.9% Q3 15 924 -0.4% +8.6% North Q4 15 1,100 +4.8% +13.4% America Japan 10%
Slide 29: Bottega Veneta
BOTTEGA VENETA 2015 revenue: +13.7% reported; +3.2% comparable Performance remains solid, with contrasts across regions X%: comparable growth Retail (81% of sales): +4% Reported In €m 2015 change -9% > x2 +1% +21% 1,286 +10% Revenue 1,286 +13.7% +31% -8% 1,131 Recurring operating income 375 +4.8% Re
Slide 30: Bottega Veneta 2015 revenue
BOTTEGA VENETA 2015 revenue: €1,286m +13.7% reported; +3.2% comparable Revenue breakdown by region RoW Revenue y-o-y change Western 4% Europe In €m % comparable % reported 30% Q1 15 290 +3.1% +15.6% Asia Pacific 38% Q2 15 339 +9.3% +23.5% Q3 15 324 +4.3% +13.2% North Q4 15 333 -3.1% +4.3% America Ja
Slide 31: Saint Laurent
SAINT LAURENT 2015 revenue: +37.7% reported; +25.8% comparable Outstanding performances X%: comparable growth Reported Retail (64% of sales): +29% In €m 2015 change +21% +19% 974 +20% +5% Revenue 974 +37.7% +24% +60% +36% 707 Recurring operating income 169 +60.3% Recurring operating income margin 17
Slide 32: Saint Laurent 2015 revenue
SAINT LAURENT 2015 revenue: €974m +37.7% reported; +25.8% comparable Revenue breakdown by region RoW Revenue y-o-y change 7% In €m % comparable % reported Western Asia Pacific Europe Q1 15 211 +21.2% +33.8% 22% 39% Q2 15 232 +27.3% +42.5% Q3 15 243 +26.6% +36.9% Japan Q4 15 287 +27.4% +37.4% 8% Nort
Slide 33: Other Luxury Brands
OTHER LUXURY BRANDS 2015 revenue: +20.0% reported; +3.1% comparable Very positive trends in Couture and in Jewelry X%: comparable growth Reported +16% -5% In €m 2015 change +1% 1,708 +9% +7% Revenue 1,708 +20.0% 1,424 Recurring operating income 133 -9.9% Recurring operating income margin 7.8% -2.5pt
Slide 34: Other Luxury Brands 2015 revenue
OTHER LUXURY BRANDS 2015 revenue: €1,708m +20.0% reported; +3.1% comparable Revenue breakdown by region RoW Revenue y-o-y change 11% In €m % comparable % reported Western Asia Pacific Europe Q1 15 384 -4.5% +14.4% 17% 45% Q2 15 432 +6.4% +28.6% Q3 15 397 -1.0% +16.5% Japan Q4 15 495 +10.6% +20.4% 8%
Slide 35: Sport & Lifestyle Activities 2015 revenue
SPORT & LIFESTYLE ACTIVITIES 2015 revenue: €3,683m +13.5% reported; +5.9% comparable Revenue breakdown by region RoW Revenue y-o-y change Western 21% Europe In €m % comparable % reported 27% Asia Pacific Q1 15 890 +3.7% +12.7% 15% Q2 15 841 +7.1% +18.6% Q3 15 1,000 +3.4% +8.4% North Q4 15 952 +9.8%
Slide 36: 2015 Recurring Operating Income
2015 RECURRING OPERATING INCOME Change In €m 2015 2014 €m % Gucci 1,032.3 1,056.0 (23.7) -2.2% Bottega Veneta 374.5 357.2 17.3 +4.8% Saint Laurent 168.5 105.1 63.4 +60.3% Other brands 132.7 147.3 (14.6) -9.9% Luxury 1,708.0 1,665.6 42.4 +2.5% Puma 92.4 128.0 (35.6) -27.8% Other brands 2.4 9.5 (7.1)
Slide 37: 2015 EBITDA
2015 EBITDA Change In €m 2015 2014 €m % Gucci 1,206.1 1,199.2 6.9 +0.6% Bottega Veneta 413.8 388.8 25.0 +6.4% Saint Laurent 207.9 130.9 77.0 +58.8% Other brands 197.6 200.3 (2.7) -1.3% Luxury 2,025.4 1,919.2 106.2 +5.5% Puma 150.7 178.6 (27.9) -15.6% Other brands 10.3 12.6 (2.3) -18.3% Sport & Lifes
Slide 38: 2015 Net Financial Costs and Income Tax
2015 NET FINANCIAL COSTS AND INCOME TAX In €m 2015 2014 Cost of net debt (129) (151) Other financial income and expenses (120) (46) Financial costs (net) (249) (197) In €m 2015 2014 Tax on recurring income (337) (268) Tax on non-recurring items 15 (58) Total tax charge (322) (326) Effective tax rate
Slide 39: 2015 Free Cash Flow from Operations
2015 FREE CASH FLOW FROM OPERATIONS In €m 2015 2014 Cash flow before taxes, dividends and interests 1,845 1,844 Change in working capital requirement (excluding taxes) (219) (160) Corporate income tax paid (331) (423) Net cash flow from operating activities 1,295 1,261 Acquisition of fixed operating
Slide 40: 2015 Condensed Consolidated Balance Sheet
2015 CONDENSED CONSOLIDATED BALANCE SHEET In €m 2015 2014 Goodwill, brands and other intangible assets - net 15,044 14,788 Other net non-current assets 569 310 Net current assets 1 071 924 Provisions (382) (394) Capital Employed 16,302 15,628 Net assets held for sale 0 25 Shareholders’ Equity 11,623
Slide 41: Kering brands list
Gucci • Bottega Veneta • Saint Laurent • Alexander McQueen • Balenciaga Stella McCartney • Christopher Kane • Brioni • Girard-Perregaux • JeanRichard • Boucheron • Pomellato Dodo • Qeelin • Ulysse Nardin • PUMA • Cobra Puma Golf • Volcom • Electric
Slide 42: Enpetiy Cuemgrealinn
Enpetiy Cuemgrealinn