Samsonite Group S.a. · HKEX:1910
Samsonite — Samsonite International — FY2015 Earnings Presentation
30 slides from Samsonite's earnings presentation, Mar 17, 2016
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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 2016 Q&A Page 3
Slide 4: 2015 Results Highlights
2015 Results Highlights Record net sales with constant currency growth of 11.9% +11.7% on a constant currency basis, excluding FX gain/loss(1) and share- based compensation expenses. +11.9% +11.8% +12.6% +9.5% Constant Constant Constant Constant Currency Currency Currency Currency Growth Growth Grow
Slide 5: 2015 Business Overview
2015 Business Overview Strong constant currency net sales growth in Strong 2015 marketing spend of growth in all all regions: US$132.1 million was 5.4% of regions Asia: +12.8% net sales, down from 6.2% in North America: +7.4% 2014 to help offset currency Europe: +17.7% pressure. Latin America: +8.6%
Slide 6: Strong Net Sales growth partly offset by currency translation pressure
Strong Net Sales growth partly offset by currency translation pressure Net Sales bridge - 2014 to 2015 US$m Organic net sales growth of 9.8%(1)(2) coming from: Asia: +11.1%(1)(2) Europe: +15.9%(1)(2) North America: +3.4%(1) Latin America: +8.6%(1) Incremental net sales of US$61.1 million from 2014 a
Slide 7: Negative currency translation impact of US$198 million on Net Sales and US$32 million on Adjusted EBITDA
Negative currency translation impact of US$198 million on Net Sales and US$32 million on Adjusted EBITDA 2015 Currency Impact vs. Prior Year US$M Currency Deval. vs. PY Net Sales EBITDA Canada -13.6% $ (6.6) $ (1.2) North America (6.6) (1.2) All regions were negatively impacted by currency devaluati
Slide 8: Significant increase in Adjusted EBITDA margin from 1st half to 2nd half
Significant increase in Adjusted EBITDA margin from 1st half to 2nd half Constant currency net sales growth slowed in the 2nd half due largely to the anniversarying of 2014 acquired brands. Excluding acquired brands, constant currency net sales growth slowed from 11.0% in 1st half of 2015 to 8.6% in
Slide 9: Asia – Continued strong net sales and profit growth
Asia – Continued strong net sales and profit growth led by China, Japan, Australia and India(1) Strong full year constant currency net sales growth of 12.8% (2), despite a Q4 slowdown, was driven by: Strong net sales growth of 17.7%(1)(2) in direct-to-consumer channels with: Retail store net sales g
Slide 10: Asia – Continued strong net sales, despite recent headwinds in certain markets
Asia – Continued strong net sales, despite recent headwinds in certain markets Strong net sales growth in China of 13.0%(1) in 2015 was largely driven by B2B +49.5%(1) and total e-commerce +92.3%(1). After sharp net sales growth of 29.8%(1) in the 1st half, largely bolstered by timing of B2B sales,
Slide 11: China – Strong full year performance
China – Strong full year performance despite net sales growth decelerating in 2nd half China Net Sales by Channel(1) 2015 constant currency net sales growth of 13.0%(1) was driven by: 92.3%(1) increase in total e-commerce net sales; and 49.5%(1) increase in B2B sales. Net sales deceleration in the 2
Slide 12: North America – Strong net sales growth in wholesale
North America – Strong net sales growth in wholesale with challenges in retail due to decreased tourism as a result of strengthened US Dollar Net sales increased 7.4%(1) driven by: Excluding brand acquisitions, net sales growth in the wholesale channel was driven by 3.3% increase in the U.S., with s
Slide 13: Europe – Strong net sales growth of 17.7%
Europe – Strong net sales growth of 17.7% on a constant currency basis Constant currency net sales growth of 17.7%, led by UK (+41.5%(1)(2)), Germany (+17.4%(1)(2)), and Italy (+18.9%(1)(3)). Russia net sales growth of 9.0%(1), despite macroeconomic and geopolitical challenges. Strong growth of 48.9
Slide 14: Latin America – Investment in retail expansion, team and infrastructure
Latin America – Investment in retail expansion, team and infrastructure to position the region for future growth Net sales increased 8.6%(1) on strong growth in Mexico (+17.4%(1)(2)) and Chile (+12.9%(1)), partly offset by Brazil (-28.2%(1)). Net sales in Brazil were down due to challenging economic
Slide 15: Strong constant currency Net Sales growth in all key markets
Strong constant currency Net Sales growth in all key markets (1) (1) Includes Macau Page 15
Slide 16: Continued brand penetration driving growth in emerging markets
Continued brand penetration driving constant currency Net Sales growth in most emerging markets Strong constant currency growth, however US$16.6 million decrease in net sales due to currency translation Includes approximately US$6.0 million disposal of inventory from former distributors. US$3.6 mill
Slide 17: Strong growth in e-commerce and targeted retail expansion
Strong growth in e-commerce and targeted retail expansion Net sales growth of 40.4%(1) in e-commerce was driven by: 30.8%(1) growth in direct-to-consumer e-commerce platform net sales, included within the Direct to Consumer channel. 48.1%(1) growth in net sales to e-retailers, included within the Wh
Slide 18: Rolling Luggage and Chic Accent contribute to growth in the retail channel
Rolling Luggage and Chic Accent contribute to growth in the retail channel On February 16, 2015, the assets and certain On September 30, 2015, the business and liabilities of Rolling Luggage were purchased for a substantially all of the assets of Chic Accent were total of GBP£15.0 million (US$23.0 m
Slide 19: All brands delivering strong Net Sales growth
All brands delivering strong Net Sales growth Continued growth in Samsonite with net sales up 5.7% Net Sales growth by brand on a constant currency basis: Asia +9.6%(1), Europe +4.6%(1), North America +3.4%(1) and Latin America +3.1%(1). American Tourister net sales up 16.7% on a constant currency b
Slide 20: Brands Acquired in 2014 - Update
Brands Acquired in 2014 - Update Lipault is a youthful, vibrant and chic French Speck produces a diverse range of sleek, stylish, Gregory is an iconic technical outdoor luggage brand known for its functional and and functionally innovative products that provide backpack brand that is known as a pion
Slide 21: Key Product Assortment
Key Product Assortment North America Europe Asia North America Europe Asia Latin America Page 21
Slide 22: Key Product Assortment
Key Product Assortment North America Asia Europe Page 22
Slide 23: Strong Net Sales growth in all product categories
Strong Net Sales growth in all product categories Net Sales growth by product category Travel remains our largest product category and traditional strength with all regions contributing to its growth of 8.7%(1). Non-travel net sales increased from 29.6%(1) of total net sales in 2014 to 31.7%(1) of t
Slide 24: Advertising spend was roughly flat on a constant currency basis
Advertising spend was roughly flat on a constant currency basis Advertising spend Indicates % of net sales Total advertising spend was roughly flat to prior year on a constant currency basis. As a percentage of net sales, total constant currency advertising spend was 5.5%, 70bp lower than prior year
Slide 25: Targeted Brand Advertising
Targeted Brand Advertising American Tourister – North America Samsonite Travel – Adelaide Airport, Australia Samsonite Business – Airport - India Hartmann – Europe American Tourister – Europe Page 25 High Sierra – Asia
Slide 26: Key Financial Highlights
Key Financial Highlights Strong constant currency net sales growth of US$280 million, or 11.9%, partly offset by US$198 million reduction of reported net sales due to currency translation. Excluding impact of currency translation, 2015 Adjusted EBITDA was US$432.8 million, up 12.6% from US$384.3 mil
Slide 27: Strong Balance Sheet
Strong Balance Sheet Net cash increased by US$43.7 million US$m December 31, December 31, to US$116.6 million at December 31, $ C hg D e c - 15 % C hg D e c - 15 2014 2015 v s . D e c - 14 v s . D e c - 14 2015 with cash flows from operations of US$259.0 million reduced by outflows Cash and cash equ
Slide 28: Efficiently managing Working Capital
Efficiently managing Working Capital Working capital continued to be managed efficiently at 11.8% of net sales at December 31, 2015, favorable to targeted 14% level. US$m December 31, December 31, $ Chg dec-15 % Chg dec-15 2014 2015 vs. dec-14 vs. dec-14 Inventory turnover of 111 days was up 5 days
Slide 29: Capital Expenditure
Capital Expenditure Capital Expenditure by project type 2015 retail capex consisted of new stores and remodels in Asia of US$12.8 million, Europe of US$m 2014 2015 US$9.7 million, North America of US$6.4 million and Latin America of US$4.8 million. Retail 27.9 33.7 Capex on Product Development / R&D
Slide 30: Engines Of Future Growth
Engines Of Future Growth Increase in disposable incomes and living standards in developing countries, growing popularity of outdoor and adventure sports and growth of the tourism industry are all expected to drive growth of the global luggage market at a CAGR of 5.8% through 2020 (1): Continue to de
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