Piquadro S.p.a · MIL:PQ
Piquadro — Non-Deal Roadshow (June 2011)
33 slides from Piquadro's roadshow presentation, June 2011
Slide 1: Edinburgh & London - June 22-23, 2011 Investor Presentation
Edinburgh & London - June 22-23, 2011 Investor Presentation
Slide 2: Important Information
IMPORTANT INFORMATION • The information provided in this presentation is being furnished to you solely for your information on a confidential basis. Neither this document nor any copy thereof may be reproduced, redistributed or passed on, in whole or in part, to any other person. Neither this presen
Slide 3: A Rapid Path to Success
A RAPID PATH TO SUCCESS 1998-2003 CAGR: +26.1% (1) 2004/05-2010/11 CAGR: +21.5% (2) Launch of Piquadro €62m €52m €52m brand €46m €16m €25m €36m €13m €10m €19m 30,0% 29,5% 27,8% 26,5% 26,6% €6m €8m 25,1% €5m €0m 1998 1999 2000 2001 2002 2003 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/2011 S
Slide 4: Unique and Distinctive Brand Identity
UNIQUE AND DISTINTIVE BRAND IDENTITY Distinctive and well recognised brand for “moving” people in leather goods industry. Aspirational brand: high quality, technological mood, innovation, design , ergonomic performance, clever features and performances. Three positioning elements: design, comfort an
Slide 5: Premium / Performance Positioning
PREMIUM /PERFORMANCE POSITIONING Clear distinction from competitors at comparable price level through commitment to innovation, design, high quality and ergonomic performance. Customer “community” recognized in brand values. Target customer: Man and Woman aged 25/50 positive towards modern technolog
Slide 6: Brand Awareness
BRAND AWARENESS BAG’S BRANDS KNOWN, OWNED, DESIRED – Elite Research on Italian Bags Market 2009 - Eurisko (GFK Group) Basis: total sample =1000 (%) KNOWN OWNED DESIRED LOUIS VUITTON 64 SAMSONITE 24 LOUIS VUITTON 30 SAMSONITE 53 LOUIS VUITTON 23 GUCCI 16 GUCCI 48 GUCCI 13 SAMSONITE 15 PRADA 45 PRADA
Slide 7: Brand Awareness: Bags' Brands Trend
BRAND AWARENESS BAGS’ BRANDS TREND - Elite research on Italian Bags Market 2009 - Eurisko (GFK Group) LOUIS VUITTON PRADA GUCCI 60 60 60 WISHED WISHED 40 40 OWNED 40 OWNED 28 30 21 22 WISHED 17 16 16 16 17 17 18 15 17 16 20 27 23 20 14 20 13 OWNED 10 10 15 12 14 16 13 16 13 11 12 12 13 11 9 10 9 8 0
Slide 8: Brand Awareness: Bags' Brands Top 15
BRAND AWARENESS BAGS’ BRANDS TOP 15 - Elite research on Italian Bags market 2009 - Eurisko (GFK Group) Basis: total sample =1000 (%) OTHERS REFERENCES 65 CHANEL COCCINELLE DOLCE E GABBANA LOUIS VUITTON FENDI ARMANI FURLA TOD'S HOGAN 55 MANDARINA GUCCI PRADA DUCK RATIONALITY HERMES HEDONISM SAMSONITE
Slide 9: Wide, Complementary Mono-Brand Product Mix
WIDE, COMPLEMENTARY MONO-BRAND PRODUCT MIX Complementary and extensive product offering, including professional bags, travel items, women’s bags, small leather goods and other accessories Product strategy: On-Going Collections and Seasonal Collections: • On-Going collections (70% of turnover): long
Slide 10: The Exclusive iPad Bespoke Bag Service
THE EXCLUSIVE iPad ® BESPOKE BAG SERVICE Piquadro is offering an iPad® bespoke bag service in a selection of boutiques. Customers will design their own Piquadro product choosing from a choice of Piquadro styles, metal detailing samples, sewing tread colors and amongst a selection of refined Italian
Slide 11: Flexible and Efficient Business Model
FLEXIBLE AND EFFICIENT BUSINESS MODEL Internal product development and centralized procurement system. Partly-outsourced production (70%) guaranteed by select, controlled third-party manufacturers (China, Taiwan, Hong Kong). Efficient Procurement From 25% to 30% in-house production through Low Capex
Slide 12: Research & Development
RESEARCH & DEVELOPMENT All Piquadro products are the fruit of a careful design phase. Even the tiniest detail is studied and designed so that the end result will be a design product with a well- defined identity. An in-house team of Italian designers, who know and interpret the company values, devel
Slide 13: Testing and Quality Control
TESTING AND QUALITY CONTROL Adhesion of Coating Tensile Seam Tumble Test Breaking Veslik Test on Leather Handle Jerk Mileage Test A unique Quality and Testing department in Europe Leather Industry. More than twenty control both on raw material (leather and metal accessories) and finished product. Ca
Slide 14: Manufacturing
MANUFACTURING Partly-outsourced production (from 70% to 75%) guaranteed by select, controlled third- party manufacturers (Far East). 14 Edinburgh & London – June 22-23, 2011 – Investor Presentation
Slide 15: International Multi-Channel Distribution Network
INTERNATIONAL MULTI-CHANNEL DISTRIBUTION NETWORK International Presence Presence in approx. 50 countries with strategic mix of DOS and Wholesale channel. Growing mono-brand network of now 104 Stores (48 DOS, 56 franchised stores) worldwide. End of March 2012 more than 120 worldwide monobrand Stores
Slide 16: International Multi-Channel Distribution Network: DOS
INTERNATIONAL MULTI-CHANNEL DISTRIBUTION NETWORK DOS 16 Edinburgh & London – June 22-23, 2011 – Investor Presentation
Slide 17: International Multi-Channel Distribution Network: Franchising
INTERNATIONAL MULTI-CHANNEL DISTRIBUTION NETWORK FRANCHISING 17 Edinburgh & London – June 22-23, 2011 – Investor Presentation
Slide 18: International Multi-Channel Distribution Network
INTERNATIONAL MULTI-CHANNEL DISTRIBUTION NETWORK 18 Edinburgh & London – June 22-23, 2011 – Investor Presentation
Slide 19: Openings Evolution per Year
OPENINGS EVOLUTION PER YEAR DOS FRANCHISING 19 Edinburgh & London – June 22-23, 2011 – Investor Presentation
Slide 20: Soon Next Opening
I N T E R N A T I O NA L D E V E L O P M E N T SOON NEXT OPENING DOS: Hong Kong Elements – july 2011 Hong Kong Time Square – july 2011 Hong Kong Queen’s Road – september 2011 Milan Corso Buenos Aires – september 2011 Roermond Mc Arthur Glen Designer Outlets- november 2011 FRANCHISING: Stezzano (BG)
Slide 21: Summary Consolidated Income Statement
SUMMARY CONSOLIDATED INCOME STATEMENT INCOME STATEMENT 21 Edinburgh & London – June 22-23, 2011 – Investor Presentation
Slide 22: Strong Top Line Growth
STRONG TOP LINE GROWTH (€m) By Channel : in 12 months DOS up 29.8% €52m €62m (SSSG +9.9% at current exchange rate €52m /+8.8% at constant exchange rate) and it represents about 24% of total sales (21,9% in previous 12 months). Wholesale up 15.2%. By Geographical Area : ITALY with a 5.1 2008/09 2009/
Slide 23: Sustainable High Profitability
SUSTAINABLE HIGH PROFITABILITY EBITDA: up 6.8% pa * FY 10/11 EBITDA Margin up 17 bps € 16,5 m € 14,4 m € 13,8 m impacted by very positive performance of DOS business unit and maintained margin on Wholesale unit. 2008/2009 2009/10 2010/11 Margin: 27.8% 26.4% 26.6% • DOS performance up 282 bps due to
Slide 24: Group Net Profit
GROUP NET PROFIT FY Net Profit : up 10,2% (1) 12M 10/11 Net Profit in increase by more than 28%. € 9,1 m € 7,5 m € 7,1 m Low impact of interest expenses notwithstanding negative delta 2008/2009 2009/10 2010/11 exchange currency rate. % of sales: 14.5% 13.6% 14.7% Delta exchange rate is negative and
Slide 25: Summary Balance Sheet
SUMMARY BALANCE SHEET FINANCIAL BALANCE SHEETS 25 Edinburgh & London – June 22-23, 2011 – Investor Presentation
Slide 26: Lean Capital Structure
LEAN CAPITAL STRUCTURE Total Capitalization NET FINANCIAL DEBT Net Debt/ 0.63 0.25 0.14 (€m) Equity (as of March,31) As of March 31 29.6 27.4 26.3 2009A 2010A 2011A 0 0,2 0,1 Short-term Net Debt 2.8 3.3 4.7 16,7 Long-term Net Debt 14.5 11.3 9.7 20,9 25,9 Cash & Cash (6.8) (9.3) (10.7) Equivalents Ne
Slide 27: Cash Generative Business Model
CASH GENERATIVE BUSINESS MODEL Cash Conversion(1) The Company has high conversion of 11,3% EBITDA into operating cash flow : 13,7% 15,6% 37,1% • Limited Capex requirement 22,1% 16,0% • Efficient working capital Total 10,2% management EBITDA 93,1% 68,4% Good performance in March 11 64,2% 52,7% notwit
Slide 28: Net Debt as of March 31, 2011
NET DEBT AS OF MARCH 31, 2011 NET DEBT €/000 5.334 -10.539 -7.342 -4.714 -714 -520 3.678 3.678 +4.198 +4.000 +194 +2.628 +3.197 -15.873 Net Debt as Operating NWC Net Dividends Other Taxes Net Debt as Mar. 2010 Cash Flow Capex Movements Mar. 2011 28 Edinburgh & London – June 22-23, 2011 – Investor Pr
Slide 29: The Investment Values
THE INVESTMENT VALUES NET PROFIT generated in the last 3 years 23,7 mln € DIVIDENDS paid in the last 3 years equal to 10,2 mln € INVESTMENTS effected in the last 3 years equal to 7,4 Mln € NET DEBT reduced in the last 3 years by 6,7 Mln € 29 Edinburgh & London – June 22-23, 2011 – Investor Presentat
Slide 30: Shareholders & Reliability Award
S H A R E H O L D E R S & R E L I A B I L I TY A W A R D • Others non public shareholders (less than 2% share capital) are AXA, Royce & Associates, Ennismore Fund , Kairos Investment, CAAM, SGAM, Eurizon, Fideuram, Deutsche Asset Management ,First Capital . • Piquadro has been awarded by Institution
Slide 31: The Path Ahead
THE PATH AHEAD Focus on aspirational content and brand awareness: profitability and cash generation Focus on International internationalization Logistic/Manufacturing/ Financial platform in Asia Development of Exploiting target Brand Extension: positioning inTravel Items new licensing and ‘explorati
Slide 32: Focus on Internationalization
FOCUS ON INTERNATIONALIZATION Focus on “high potential markets” (mainly in Greater China) in DOS and Franchising exploiting the huge growth of those markets and the investment already effected in retail activities. Flagships in London and Paris in a three years period as a way to globalise the brand
Slide 33: Aiming to Translate and Create Sustainable Cash Generation
AIM ING TO TRANSLATE AND CREATE ,SUSTAINABLE CASH GENERATION Maintaining high profitability more than Top line growth average industry Efficient working capital management Low capital intensive business model HIGH CASH FLOW GENERATION 33 Edinburgh & London – June 22-23, 2011 – Investor Presentation