Kering Sa · EURONEXT:KER
Kering Sa — PPR — Non-Deal Roadshow (September 2011)
22 slides from Kering Sa's roadshow presentation, Sep 7, 2011
Slide 1: Investor Presentation
An adventure of enterprise INVESTOR PRESENTATION Jean-François PALUS Deputy CEO & CFO Roadshow Boston September 7, 2011
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 notably projections and forecasts. They express objectives based on current assessments and estimates
Slide 3: PPR Heritage
PPR HERITAGE 1999 42% stake in Gucci Group 2000 Acquisition of Boucheron 2001 Acquisition of Bottega Veneta, Balenciaga, Stella McCartney and Alexander McQueen 2002 Disposal of Guilbert ‘mail order activity’, Finaref and Facet (credit subs) 2003 Disposal of Pinault Bois & Matériaux and Guilbert ‘con
Slide 4: PPR Today
PPR TODAY Group of well-established companies refocusing to target the fastest- growing segments of the consumer markets Disciplined, yet dynamic, brand management Right mix of entrepreneurial autonomy & managerial support Significant reservoirs of growth, notably through global expansion
Slide 5: Key Figures
KEY FIGURES FY 2010 Recurring Recurring in €m operating operating income Revenue Change income Change margin Luxury 4,011 +18.3% 944 +29.7% 23.5% Sport & Lifestyle 2,706 +10.6% 337 +12.7% 12.5% Holdings & Others (21) - (103) - - 6,696 +15.1% 1,178 +24.6% 17.6% Retailing 7,909 +1.9% 353 +19.0% 4.5% P
Slide 6: Breakdown of 2010 Revenue and EBIT
BREAKDOWN OF 2010 REVENUE AND EBIT Breakdown of 2010 revenue 4% 11% South America Asia-Pacific 27% Luxury 4% Goods EEMEA 59% Western 55% 6% Europe Retail Japan 16% 18% North America Sport & Lifestyle Breakdown of 2010 EBIT 21% Retail 58% Luxury 21% Goods Sport & Lifestyle 6
Slide 7: PPR Retailing
PPR RETAILING Leading positions in Europe Today PPR’s retailing operations are at different stages of development… Limited scope for international expansion Continuing to nurture our retailing businesses as we focus on global Luxury and Lifestyle 7
Slide 8: Drivers of Future Growth & Profitability: Luxury Group
DRIVERS OF FUTURE GROWTH & PROFITABILITY LUXURY GROUP Portfolio of world-leading brands: designs, manufactures & markets leather goods, shoes, ready-to-wear, jewelry & watches A Group characterized by: The exceptional quality of its products A unique talent pool, from design to craftsmanship,
Slide 9: Drivers of Future Growth & Profitability: Sport & Lifestyle Group
DRIVERS OF FUTURE GROWTH & PROFITABILITY SPORT & LIFESTYLE GROUP PUMA The ultimate Sportlifestyle brand - one of the worlds’ largest providers of athletic footwear, apparel & accessories A business characterized by a brand value where product categories originating in sports are continued and am
Slide 10: Our Vision
OUR VISION Pursue the strategic transformation of PPR into a global group focusing on Apparel and Accessories, through iconic brands with: Worldwide stature Strong growth potential High margins 10
Slide 11: A Transformation Whose Pace We Control
A TRANSFORMATION WHOSE PACE WE CONTROL Significant organic growth potential of the Group Acquisitions and disposals subject to strict value-creation criteria Sale of Conforama end of 2010 on excellent terms Targets with high growth prospects Seeking significant industrial synergies in Sport &
Slide 12: Operating & Financial Performances
OPERATING & FINANCIAL PERFORMANCES 2010: an outstanding year driven by all activities Sales up nearly 8% (+ 4% on a comparable basis) Strong growth in EBIT, up 24%, with higher EBIT from all of our brands Recurring net income, Group share, from continuing operations up 56% to €932 million
Slide 13: Appendices
An adventure of enterprise Appendices
Slide 14: Operating Performance
OPERATING PERFORMANCE €m CONTINUING OPERATIONS 2010 2009 Change Revenue 14,605 13,584 + 7.5% Gross profit 7,429 6,684 + 11.2% Gross profit margin 50.9% 49.2% + 1.7pt Recurring operating income 1,531 1,240 + 23.5% Recurring operating income margin 10.5% 9.1% + 1.4pt EBITDA 1,861 1,574 + 18.2% EBITDA
Slide 15: Financial Performance
FINANCIAL PERFORMANCE €m 2010 2009 Change Recurring operating income 1,531 1,240 + 23.5% Other non-recurring operating income and expenses (194) (374) Financial charges (254) (364) Corporate income tax (304) (173) Income from equity affiliates 36 1 Net income from discontinued operations 200 665 Con
Slide 16: Free Cash Flow from Operations
FREE CASH FLOW FROM OPERATIONS €m 2010 2009 Cash flow before taxes, dividends and interest 1,778 1,484 Change in working capital requirement (before taxes) (151) 200 Corporate income tax paid (251) (232) Net cash flow from operating activities 1,376 1,453 Acquisition of fixed operating assets (343)
Slide 17: Net Financial Indebtedness
NET FINANCIAL INDEBTEDNESS €m Net indebtedness at December 31, 2009 4,367 Free cash flow from operations (1,081) Net interest paid and dividend received 242 Free cash flow (839) Dividends paid 439 Net investments in financial assets (221) Other 35 Net indebtedness at December 31, 2010 3,781 17
Slide 18: Debt Ratios
DEBT RATIOS €m * Published, not restated ** Pro forma 18
Slide 19: Dividend
DIVIDEND Dividend per share +15.0% - 4.3% +6.1% In € +10.3% Dividend payout ** Published not restated. 19
Slide 20: H1 2011 Operating Performance
H1 2011 OPERATING PERFORMANCE €m H1 2011 H1 2010 Change Revenue 7,217 6,726 +7.3% Gross profit 3,833 3,459 +10.8% Gross profit margin 53.1% 51.4% +1.7pt Recurring operating income 749 655 +14.5% Recurring operating income margin 10.4% 9.7% +0.7pt EBITDA 919 811 +13.3% EBITDA margin 12.7% 12.1% +0.6p
Slide 21: H1 2011 Financial Performance
H1 2011 FINANCIAL PERFORMANCE €m H1 2011 H1 2010 Change Recurring operating income 749 655 +14.5% Other non-recurring operating income and expenses (27) (24) Financial charges (109) (100) Corporate income tax (176) (155) Income from equity affiliates 34 15 Net income from discontinued operations 11
Slide 22: Contact PPR Financial Communications
Contact PPR Financial Communications Alexandre de BRETTES +33 (0) 1 45 64 61 49 [email protected] 22