Samsonite Group S.a. · HKEX:1910
Samsonite — Samsonite International — FY2022 Earnings Presentation
48 slides from Samsonite's earnings presentation, Mar 8, 2023
Slide 1: Samsonite International S.A. Stock Code: 1910
Samsonite International S.A. Stock Code: 1910
Slide 2: Disclosure Statement
9) 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: 2022 was a great year for Samsonite, poised for growth in 2023
¢ 2022 was a great year for Samsonite, and we are poised for growth in 2023! Our team is incredibly energized by our Company’s progress throughout 2022. We navigated through more than two years of disruptions caused by the pandemic, and achieved some great results: * Our 2022 sales improved to US$2,
Slide 6: Prudent investments position us for success in 2023 and beyond
¢ Our prudent investments and guidance of the business over the past few years position us for great success in 2023 and beyond * Throughout more than two years of disruptions caused by the pandemic, we never stopped investing in product innovation, leading to our amazing portfolio of travel and non
Slide 7: Prioritizing e-commerce, ESG initiatives and advertising investments
6 Prioritizing investments in our own e-commerce sites, ESG initiatives, and consumer facing advertising spend positions us for great success in 2023 and beyond * We have also continued to invest in our own e-commerce capabilities = globally, such as a new Tumi.com platform in North America, new LAT
Slide 8: Net sales increased by US$859 million; Adjusted EBITDA margin improved to 16.4%
6 Net sales increased by US$859 million compared to prior year, and Adjusted EBITDA margin improved to 16.4% in 2022, up 290 basis points from 2019 Consolidated Reported Net Sales and Adjusted EBITDA $4,000 336388 $3,500 $3,000 $2,879.6 $2,500 € $2,020.8 % $2,000 =) $1,500 $1,000 $492.2 9472.3 $500
Slide 9: 2022 reported sales and Adjusted EBITDA versus 2019
$525.2(1) $3,106.4(1) 2019 2022 2019 2022 = 2022 reported sales on a constant currency basis to 2019 = 2022 reported Adjusted EBITDA on a constant currency basis to 2019
Slide 10: 2H 2022 and 1H 2022 sales growth
2H 2022 -0.8%(1)(2) (+3.5%(1)(2) excl. China) 1H 2022 -20.4%(1)(2) • • • •
Slide 11: (2) (2) (2) (2) (2) (2) (2) (3) (3) (3) (3) • • •
(2) (2) (2) (2) (2) (2) (2) (3) (3) (3) (3) • • • • • • • • • •
Slide 12: Asia regional sales
India Japan Korea Asia excl. China South East Asia(2) Australia China
Slide 13: Recovery in international RPKs the predominant catalyst for travel demand
¢° The recovery in international RPKs has been the predominant catalyst for the recovery in travel demand since the beginning of 2022 meters (RPKs) vs. International RPKs Dome Revenue Passeng 20% -20% (21.3%) *a.s%) (24.6%) Cro) (25%) (246%) 40% (345%) -60% (62.5%) (58.936468.7%) -80% (0.9%) 35%) 2.
Slide 14: January 2023 TSA air travel exceeded pre-pandemic totals
* In January 2023, TSA air travel numbers exceeded pre-pandemic totals for the first time since the pandemic began! Jan 2022 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 5.0% ooo? (5.0%) | | Ll I oe 5.5%) (5.7%) oom + °(8'9%) 155%) (5.7%) (6.7%) (10.0%) aoe? 8.6%) (9.5%) 4, 10-194 * 179 996) (12.3%)
Slide 15: Recovery in corporate travel provides additional opportunity
6 The recovery in corporate travel provides additional opportunity for sales growth in 2023 and beyond «Despite several macro challenges such as inflation and recessionary concerns around Decrease by more than 40% se o cx, the world, we believe that the travel recovery ee ee . . Decrease 31%-40% jus
Slide 16: Global luggage market share has increased since 2020
s Since 2020, our global luggage market share has increased through our prudent investments and our financial strength during market disruptions Market share evolution - luggage category 2020 2021 2022 14.4% Source: Euromonitor Samsonite Group’s brands continue to be the market share leader within t
Slide 17: Achieved Q4 '22 Adjusted EBITDA margin of 17.4%
Achieved Q4 ‘22 Adjusted EBITDA margin of 17.4% even with advertising at 6.5% of net sales. • • •
Slide 18: Increased investment in marketing spend
* We continued to increase our investment in marketing spend to capitalize on the continued recovery in travel We launched our “New Beginnings” campaign in Asia to kick off 2023! wr THERE “4 = 18
Slide 19: Outlab Paradiver
6 Showcasing our new Outlab Paradiver collection through some beautiful social media campaigns Take your outdoor travel experience to a higher level with Samsonite Outlab Paradiver. A rugged collection for big adventures, Outlab Paradiver features a water-resistant exterior made with rPET bottles, a
Slide 20: "Expect One For You" campaign for non-travel products
6 Our “Expect One For You” campaign will help drive sales to our non-travel products in Europe Our “Expect One For You” campaign will feature non-travel collections such as our re-launched
Slide 21: Strong growth across all our brands
° Strong growth across all our brands as our sales continued to recover Full Year Brand sales growth@) vs. 2021 Sams@nite = 71.2% UNIMAX Lipault PARIS All Other Brands Total (1) Stated on a constant currency basis. (2) For comparative purposes, prior year sales are adjusted to exclude Speck, which w
Slide 22: Progress on "Our Responsible Journey": product sustainability
6 In 2022 we continued to make progress on “Our Responsible Journey” while laying the groundwork for expanded sustainability initiatives Product Sustainability * Globally, more than 23% of our company’s sales revenues in 2022 came from products containing some proportion of recycled materials, up fr
Slide 23: Progress on "Our Responsible Journey": climate and sustainability management
6 In 2022 we continued to make progress on “Our Responsible Journey” while laying the groundwork for expanded sustainability initiatives Climate and Sustainability Management We more than doubled the share of our electricity use coming from renewable sources, to 25%. Calculated our Scope 3 (indirect
Slide 24: Essens collection
Exciting and innovative new collections are ready to capture demand as travel continues to recover * Excited to launch a new made in Europe collection called “Essens” in Q1 2023. = Ss Ss E N Ss * Engineered and made in Europe, Essens has «> WY the lightest 3-point lock polypropylene cases in its cla
Slide 25: BEAMIX collection
6 Exciting and innovative new collections are ready to capture demand as travel continues to recover * The BEAMIX collection combines modern and B E A M | X minimalist aesthetics with high-quality technical equipment. Z * The collection boasts a cutting-edge fingerprint lock technology with an integ
Slide 26: PRO-DLX 6 and ZALIA 3.0
• The interior lining is made from rPET Exterior fabric bottles and interior lining made from rPET bottles PRO-DLX 6 ZALIA 3.0
Slide 27: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 28: 2022 Results Highlights
2022 Results Highlights $290.0 159.0% ussm ussm ussm ussm $4,000 $3,638.8 $2,500 $600 $350 $3,500 | 2 sacoe [820288 esoo | $492-2 sar2.3 300 $296.0 Z $2,879.6 $2500 1: ZZ, $2,020.8 $1,500 12 $200 $2,000 | 7 $1,101.5 $300. suse |e sicce (san) Z sas ° 3 55.8% $200 ele 151 sr00 ssoo |Z, 2 Zz $100 eso s
Slide 29: Financial Highlights
* Financial Highlights * Net sales in 2022 of US$2.9 billion increased by 57.4%) from 2021. Further excluding China, which implemented many COVID-19 lockdowns for much of the year, net sales were up 65.8%2)3) from 2021. * Reported 2022 net sales would have been approximately US$198 million higher if
Slide 30: Financial Highlights (cont'd)
* Financial Highlights (cont’d) * Gross margin increased by 130bp from 2021 primarily due to lower promotional activity and sales mix. We were able to successfully offset higher product, freight and duty costs with price increases in order to manage our gross margins to historical levels. + Fixed SG
Slide 31: Financial Highlights (cont'd)
* Financial Highlights (cont’d) * Total cash generation” of US$75 million for 2022 despite investing US$339 million during the year to rebuild our inventory levels to support the bounce back in demand. * Net debt position improved to US$1,384 million as of December 31, 2022, with US$636 million of c
Slide 32: Quarterly constant currency sales growth
Constant Currency Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Growth (1) 91.6% 50.5% 39.2% 25.2%(1) (1) (1) 22.2% 46.3% 66.0% 39.9% 169.7% 187.9%(1) 85.4%(1) 53.2%(1) 151.9% 150.1% 56.7% 13.2% Constant Currency Q2 Q3 Q4 Growth Excl. China 108.1% 104.7% 65.2%
Slide 33: Adjusted EBITDA surpassed pre-pandemic levels in most regions
s Adjusted EBITDA performance surpassed pre-pandemic levels both in terms of dollars and margins in most regions By region Adjusted EBITDA $250 $200 $150 $100 $50 North America $163.3 2019 2021 $216.2 2022 2019 2021 2022 $140 $120 $100 $80 $60 $40 $20 so 2019 Europe 2021 $123.7 18.3% 2022 »@& ($5) L
Slide 34: Net sales change and currency impacts
+$1,169.7m (+57.9%) (+72.5%) (+103.6%) (+68.5%) (+44.6%) EUR -US$62.5 million TRY -US$29.6 million JPY -US$23.8 million INR -US$14.4 million KRW -US$14.0 million CLP -US$7.3 million Other -US$46.5 million (1)(2) (1)(3) (1)(4) (1) (1)
Slide 35: Net sales by channel and travel vs. non-travel
Comparison of net sales by channel Comparison of Travel vs. Non-travel net sales 34.4% (1)(2) 30.6% (1)(2) 62.9% (1)(2) US$m US$m 59.6% (1)(2) 76.6% (1)(2) (3)
Slide 36: Strong sales growth for all core brands and strategic smaller brands
° Strong sales growth in 2022 for all core brands and strategic smaller brands Sams@nite $1,600 $700 $1,400 $1,200 GREGORY. $70 oer $16 32.8%" (1) Stated on a constant currency basis. (2) For comparative purposes, prior year sales are adjusted to exclude Speck, which was divested on July 30, 2021, a
Slide 37: Adjusted EBITDA Bridge 2019 – 2022
Adjusted EBITDA Bridge 2019 – 2022 US$214.0 million Focused on maintaining as much of this savings as possible as the business continues to recover. 13.5% 16.4% of sales of sales (1) (1)(2) (1) (1)(2) (1) (1) (1) (1)
Slide 38: Fixed cost structure significantly improved from pre-pandemic
The fixed cost structure of the business is significantly improved from pre-pandemic SG&A within Adjusted EBITDA $1,600 $1,524.6 * 2022 fixed SG&A expenses were US$299 million lower than 2019, but US$73 million higher than prior year due $1,400 mainly to growth in the business, temporary cost saving
Slide 39: Cash generation by quarter
Q1 Q2 Q3 Q4 Full Year Adjusted EBITDA $73.2 $122.4 $134.1 $142.6 $472.3 Cash outflow from Net Working Capital ($65.5) ($40.6) ($28.4) ($61.1) ($195.6) Capital Expenditures/Software purchases ($5.8) ($9.9) ($17.5) ($29.5) ($62.8) Income Tax paid ($11.7) ($8.0) ($11.1) ($19.8) ($50.6) Interest payment
Slide 40: Balance sheet summary and net debt
US$m December 31, December 31, $ Chg Dec-22 % Chg Dec-22 • 2021 2022 vs. Dec-21 vs. Dec-21 Cash and cash equivalents 1,324.8 635.9 (688.9) -52.0% Trade and other receivables, net 206.2 290.9 84.7 41.1% Inventories, net 348.4 687.6 339.2 97.4% Other current assets 60.2 80.1 19.9 33.1% Non-current ass
Slide 41: Working capital items and turnover days
US$m December 31, December 31, December 31, $ Chg Dec-22 % Chg Dec-22 • 2019 2021 2022 vs. Dec-21 vs. Dec-21 Working Capital Items Inventories $ 587.3 $ 348.4 $ 687.6 $ 339.2 97.4% Trade and Other Receivables $ 396.0 $ 206.2 $ 290.9 $ 84.7 41.1% Trade Payables $ 500.6 $ 355.0 $ 583.3 $ 228.3 64.3% N
Slide 42: Continued to build inventory position to support travel recovery
& We continued to build our inventory position to support the ongoing recovery in travel despite the challenges with shipping delays and factory capacity constraints Inventory balance evolution $800 $700 $687.6 615.1 $626.2 $622.9 $600 > $587.3 $556.7 $468.8 $500 $434.9 & $400 $390.4 $406.2 s $332.6
Slide 43: Capital expenditures
US$m 2021 2022 • Retail 8.0 21.7 Product Development / R&D / Supply 7.6 21.4 Information Services and Facilities 4.2 7.2 Other 1.0 1.3 • Total Capital Expenditures 20.8 51.6 Software 5.1 11.1 Total Capital Expenditures and Software 25.9 62.8
Slide 44: Outlook
OUTLOOK
Slide 45: Outlook
” Outlook * We exited 2022 with our consolidated net sales largely recovered to 2019 levels. 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 will have impacts around the world, but
Slide 46: Outlook (cont'd)
Outlook (cont’d) We intend to continue our increased investment in marketing during 2023 to capitalize on the continued recovery in travel and drive net sales growth. We will maintain disciplined expense management on our fixed SG&A expenses, and expect certain fixed SG&A savings to carry into 2023.
Slide 47: Q&A
Q&A
Slide 48: Thank You
THANK YOU.
Samsonite International — FY2022 Earnings Presentation on 6ix