Moncler Spa · MIL:MONC
Moncler Spa — H1 2019 Earnings Presentation
42 slides from Moncler Spa's earnings presentation, July 2019
Slide 1: H1 2019 Financial Results
Slide 2: Company Overview
COMPANY OVERVIEW
Slide 3: Our story is made of heritage, uniqueness, quality, consistency, energy
Slide 4: Our story: more than 65 years of unique heritage
OUR STORY: MORE THAN 65 YEARS OF UNIQUE HERITAGE Ate ! 1952 ‘50 - ‘60 2013 2018 The company is founded Moncler supplies products Moncler is listed on the Moncler launches a new in Monestier-de-Clermont, for important expeditions Milan Stock Exchange creative project near Grenoble (France) and for th
Slide 5: A new era began in 2018
A NEW ERA BEGAN IN 2018 Ate Revenues 1700 (Eur M) 1417 +24% 1133 2003-2018 CAGR 850 7 I 567 lJ 1 283 —_—— —_ —_ mm me | |_| | i lJ 2003 2004 2005 2006 2007 2008 2009 2010 201 2012 2013 2014 2015 2016 2017 2018 2019 2020 2018 and beyon 5 years of re-engineering years of expans The era of dig PRODUCT
Slide 6: Moncler Genius: a unique and innovative project
MONCLER GENIUS: A UNIQUE AND INNOVATIVE PROJECT MONCLER GENIUS ONE HOUSE, DIFFERENT VOICES Different projects defining the unity of Moncler Genius O Moncler Richard Quinn Moncler Pierpaolo Piccioli Moncler 1952 Moncler Grenoble Moncler Simone Rocha Moncler Craig Green Moncler 1017 Alyx 9SM Moncler F
Slide 7: Moncler collections launch plan
MONCLER COLLECTIONS LAUNCH PLAN Ate MONCLER GENIUS LAUNCHES JAN J JUN JUL SEP OCT CRAIG GREEN —1952(MAN) — SIMONEROCHA FRAGMENT NOIR PALM ANGELS SIMONEROCHA _1952(MAN) RICHARD QUINN FRAGMENT GRENOBLE POLDO CRAIG GREEN ALYX PIERPAOLO 1952 (WOMAN) 1952 (WOMAN) PICCIOL MONCLER MAIN COLLECTIONS DELIVERI
Slide 8: Product evolution: focus on core and adjacent categories
PRODUCT EVOLUTION: FOCUS ON OUR CORE AND ADJACENT CATEGORIES tle OUTERWEAR MAIN COLLECTION * Main collection, our milestone, in continuous evolution + “Icons Lab”: a new project to continue to reinvent our DNA KNITWEAR «Further enhancement in design & merchandise * Continue to increase visibility in
Slide 9: Retail: still unexploited potential from organic and expansion
RETAIL: STILL UNEXPLOITED POTENTIAL FROM ORGANIC AND EXPANSION Selected new openings and relocations’ effort to continue to drive revenues Strong focus on new clients while continuing to increase loyalty value, repurchase rate and UPT Reinforced focus on organic growth Our goals: * enter c.2 new cou
Slide 10: Digital commerce is our outperforming channel
DIGITAL COMMERCE IS OUR OUTPERFORMING CHANNEL * Moncler.com our first flagship store * Online revenues have been growing strong double-digit over the past 3 years * EMEA omnichannel roll-out completed in 2018, Japan and US to be implemented in 2019 * Launch of directly managed Korean e-commerce by H
Slide 11: Airports should increasingly contribute to our revenues' growth
AIRPORTS SHOULD INCREASINGLY CONTRIBUTE TO OUR REVENUES’ GROWTH te Travel retail channel increasingly important also to attract Next-Gen * 13 locations at YE 2018 a © *c. 10 locations expected to open in 2019 oe, : ee . * ee e e°? Our focus: @ Existing locations at 31/12/2018 + Expand Moncler airpor
Slide 12: Wholesale: strong focus on SiS and e-tailers
WHOLESALE: STRONG FOCUS ON SIS AND E-TAILERS SiS development and e-tailers to continue to drive results Some 8-10 new SiS p.a. expected, including stores in important high-traffic airports All regions to contribute to the SiS network development Expected to increase penetration on selected top e-tai
Slide 13: Retail Excellence 2.0
RETAIL EXCELLENCE 2.0: sf OUR CLIENT IS OUR MAIN FOCUS EVERYWHERE TO DRIVE ORGANIC GROWTH \ t t z 2008-2014 2015-2017 2018-2020 INITIAL RETAIL DEVELOPMENT: RETAIL EXCELLENCE 1.0: RETAIL EXCELLENCE 2.0: FOCUS ON NEW STORES FOCUS ON EXISTING CLIENTS. FOCUS ON OMNICHANNEL AND NEW CUSTOMERS INITIAL INTE
Slide 14: Supply chain: obsessed with quality, focused on time to market
SUPPLY CHAIN: OBSESSED WITH QUALITY, FOCUSED ON TIME TO MARKET tHe OUR MISSION Moncler wants to continue to deliver the best-in-class products with the highest quality standards and the most innovative design at the planned time wee FOUR KEY FOCUS AREAS MONCLER PROCESSES OPTIMISATION KNITWEAR, SHOES
Slide 15: Sustainability is a long journey with one goal: continuous improvement
SUSTAINABILITY IS A LONG JOURNEY WITH ONE GOAL: CONTINUOUS IMPROVEMENT tHe OUR MISSION: RESPONSIBLE SOURCING PEOPLE EXPERIENCE SOCIAL AND ECONOMIC DEVELOPMENT Down traceability: continue to enhance our DIST protocol as point of reference Stringent ethical requirements for all suppliers Pursuing a ph
Slide 16: Sustainability FY 2018 key highlights
SUSTAINABILITY FY 2018 KEY HIGHLIGHTS 100% 100% 96% OF DOWN PURCHASED DIST CERTIFIED +19% OF OUTERWEAR MANUFACTURERS AUDITED ON ETHICAL ASPECTS IN THE PERIOD 2017-2018 54% OF STORES WITH LED LIGHTING* +40% EMPLOYEES COMPARED TO 2017 OHSAS 18001 WOMEN IN MANAGEMENT ISO 14001 HOURS OF TRAINING DELIVER
Slide 17: Moncler's future starts now
MONCLER’S FUTURE STARTS NOW — > Know-how to make it work — > Creativity and multiplicity to make it magic — > Simplicity to make it happen Stay tuned!
Slide 18: H1 2019 Financial Results
H1 2019 FINANCIAL RESULTS
Slide 19: Moncler Hackathon quote
Slide 20: Remo Ruffini quote
Slide 21: Remo Ruffini quote
Slide 22: H1 2019 key highlights
H1 2019 KEY HIGHLIGHTS® © REVENUES RETAIL REVENUES WHOLESALE REVENUES EUR 570.2M, +13% AT CONSTANT EXCHANGE RATES (+16% REPORTED) EBIT EUR 437.1M, +13% AT CONSTANT EXCHANGE RATES (+16% REPORTED) CSSG +9% WITH SOLID RESULTS IN ALL REGIONS NET INCOME EUR 133.2M, +12% AT CONSTANT EXCHANGE RATES (+14% R
Slide 23: Revenue breakdown by region
REVENUE BREAKDOWN BY REGION® ie Moncler’s revenues continued to record double-digit growth in H1 2019, reaching Euro 570.2m (+13%), accelerating in the second quarter (+18%) Italy’s positive trend strengthened in Q2 also driven by double-digit organic growth in the retail channel EMEA revenues rose
Slide 24: Revenue breakdown by distribution channel
REVENUE BREAKDOWN BY DISTRIBUTION CHANNEL“? tHe In H1 2019 Moncler recorded solid double- digit growth in both distribution channels, notwithstanding the demanding basis of comparison Retail division continued to deliver outstanding results, accelerating in Q2 (+20%), largely driven by solid organic
Slide 25: Mono-brand stores network
MONO-BRAND STORES NETWORK Moncler’s retail network reached 196 mono- brand stores as of 30 June 2019, compared to 193 at 31 December 2018 * More than 15 DOS, in total, secured for 2019 and a similar number of relocations Wholesale mono-brand stores reached 60 locations at the end of June, compared t
Slide 26: Hong Kong — Elements
HONG KONG — ELEMENTS
Slide 27: IFRS impact - H1 2019 income statement
IFRS 16 IMPACT - H1 2019 INCOME STATEMENT te H1 2019 Impacts H12019 including IFRS 16 excluding IFRS 16 Eur m % Eur m Eurm % Revenues 570.2 100.0% - 570.2 100.0% YoY growth +16% +16% Cost of sales (133.1) (23.3%) 0.2 (133.2) (23.4%) Gross margin 437.2 76.7% 0.2 437.0 76.6% Selling expenses (203.7) (
Slide 28: Income statement
INCOME STATEMENT ig H1 2019 excluding IFRS 16 H1 2018 FY 2018 Eur m % Eur m % Eur m % Revenues 570.2 100.0% 493.5 100.0% 1,420.1 100.0% YoY growth +16% +21% +19% Cost of sales (133.2) (23.4%) (118.6) (24.0%) (320.2) (22.6%) Gross margin 437.0 76.6% 374.9 76.0% 1,099.8 77.4% Selling expenses (211.3)
Slide 29: Net capex
NET CAPEX Consolidated capex reached Eur 41.0m in H1 2019 equal to 7.2% of revenues compared to 7.0% in H1 2018 Retail investments were equal to Eur 17.0m, including the costs for stores’ openings and for the relocations and expansions Corporate investments reached Eur 21.9m, compared to Eur 14.1m i
Slide 30: Net working capital
NET WORKING CAPITAL Net working capital reached Eur 81.7m as of 30 June 2019, equal to 5.5% of LTM revenues versus 7.3% as of 31 December 2018 and 4.8% as of 30 June 2018 Inventory was equal to Eur 243.1m and largely includes raw materials and finished products for the current Fall/Winter and the fo
Slide 31: Net financial position
NET FINANCIAL POSITION® At 30 June 2019, Moncler’s net financial position reached Eur 395.7m In the first half of 2019 Moncler generated Eur 71.0m of free cash flow. After the payment of Eur 101.7m of dividends and Eur 15.1m of shares’ buyback, net cash flow was negative for Eur 54.4m versus a cash
Slide 32: Balance sheet statement
BALANCE SHEET STATEMENT 30/06/2019 excluding IFRS 16 31/12/2018 30/06/2018 Eur m Eur m Eur m Intangible Assets 426.0 424.4 4251 Tangible Assets 184.8 177.0 149.2 Other Non-current Assets/(Liabilities) 46.8 35.9 33.1 Total Non-current Assets 657.6 637.2 607.4 Net Working Capital 81.7 103.2 61.4 Other
Slide 33: Cash flow statement
CASH FLOW STATEMENT H1 2019 excluding IFRS 16 HI 2018 FY 2018 Eur m Eur m Eur m EBITDA Adjusted 143.6 123.9 500.2 Change in Net Working Capital 21.5 28.3 (13.6) Change in other curr./non-curr. assets/(liabilities) (29.8) (27.4) 48.4 Capex, net (41.0) (34.5) (91.5) Operating Cash Flow 94.3 90.3 443.6
Slide 34: Appendix
Appendix
Slide 35: IFRS impact - H1 2019 income statement
IFRS 16 IMPACT - H1 2019 INCOME STATEMENT te H1 2019 Impacts H12019 including IFRS 16 excluding IFRS 16 Eur m % Eur m Eurm % Revenues 570.2 100.0% - 570.2 100.0% YoY growth +16% +16% Cost of sales (133.1) (23.3%) 0.2 (133.2) (23.4%) Gross margin 437.2 76.7% 0.1 437.0 76.6% Selling expenses (203.7) (
Slide 36: IFRS impact - balance sheet statement at 30/06/2019
IFRS 16 IMPACT - BALANCE SHEET STATEMENT AT 30/06/2019 30/06/2019 Impacts 30/06/2019 including IFRS 16 P excluding IFRS 16 Eur m Eur m Eur m Intangible Assets 426.0 - 426.0 Tangible Assets 184.8 - 184.8 Other Non-current Assets/(Liabilities) 75.6 28.8 46.8 Right-of-use Assets 511.5 511.5 - Total Non
Slide 37: IFRS impact - H1 2019 cash flow statement
IFRS 16 IMPACT - H1 2019 CASH FLOW STATEMENT ; ; H1 2019 Impacts : H1 2019 including IFRS 16 excluding IFRS 16 Eur m Eur m Eur m EBITDA Adjusted 199.0 55.4 143.6 IFRS 16 rents (55.4) (55.4) - Change in Net Working Capital 21.5 - 21.5 Change in other curr./non-curr. assets/(liabilities) (29.8) - (29.
Slide 38: Quarterly revenue breakdown by region and channel 2019
2019 QUARTERLY REVENUE BREAKDOWN BY REGION AND CHANNEL Ql YoY growth Q2 YoY growth H1 YoY growth Eurm 2019 2018 Rep. ex FX 2019 2018 Rep. ex FX 2019 2018 Rep. ex FX Italy 45.8 43.3 46% 46% 22.7 201 413% 413% 68.5 63.3 +8% +8% EMEA (excl. Italy) 108.1 96.5 +12% +12% 60.8 50.4 +21% +21% 168.9 147.0 +1
Slide 39: Quarterly revenue breakdown by region and channel 2018
2018 QUARTERLY REVENUE BREAKDOWN BY REGION AND CHANNEL ig fei] YoY growth Q2 YoY growth Q3 YoY growth a4 YoY growth Eurm 2018 2017 Rep. ex FX 2018 2017 Rep. ex FX 2018 2017 Rep. ex FX 2018 2017 Rep. ex FX Italy 43.3 39.2 +10% +10% 20.1 19.0 +5% +5% 59.5 55.7 +7% +7% 45.0 35.5 +27% +27% EMEA (excl. I
Slide 40: 2017 and 2018 half-yearly consolidated income statement
2017 AND 2018 HALF-YEARLY CONSOLIDATED INCOME STATEMENT ig H1 2018 H2 2018 H1 2017 H2 2017 Eurm % Eur m % Eurm % Eur m % Revenues 493.5 100.0% 926.6 100.0% 407.6 100.0% 786.1 100.0% YoY growth +21% +18% +18% +13% Cost of sales (118.6) (24.0%) (201.6) (21.8%) (99.3) (24,4%) (176.9) (22.5%) Gross marg
Slide 41: Shareholding structure, upcoming events, IR contacts
SHAREHOLDING STRUCTURE, UPCOMING EVENTS, IR CONTACTS SHAREHOLDING Ss 25.4% Ruffini Partecipazioni S.r.l. 5.0% BlackRock Inc. 3.0% Morgan Stanley Asia Limited 2.2% Treasury Shares 64.4% Market Source: Consob, Moncler Last update: July 2019 2019 Upcoming Events 24 October 2019 9M 2019 Interim Manageme
Slide 42: Disclaimer
DISCLAIMER This presentation is being furnished to you solely for your information and may not be reproduced or redistributed to any other person. This presentation might contain certain forward-looking statements that reflect the Company’s management’s current views with respect to future events an