Kering Sa · EURONEXT:KER
Kering Sa — Non-Deal Roadshow (November 2013)
38 slides from Kering Sa's roadshow presentation, November 2013
Slide 1: Investor Presentation: East Coast Roadshow, November 2013
2013I n v e s t o r P r e s e n t a t i o n East Coast Roadshow November 2013
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: Summary
Summary Empowering Imagination Slide 5 Q3 2013 highlights Slide 17 H1 2013 reminder Slide 23 Appendices Slide 30 3
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Slide 5: Empowering Imagination
Kering Empowering Imagination 5
Slide 6: Who we are
Empowering Imagination Who we are Young company celebrating its 50th birthday this year: – Longstanding heritage in specialized distribution • Unique expertise in assessing consumer tastes, developing retail concepts, channels and brands – Entered the Luxury goods universe in 1999 with an initial st
Slide 7: Empowering premium brands
Empowering Imagination Empowering premium brands A world leader in apparel and accessories, developing an ensemble of powerful brands Kering Luxury division Kering Sport & Lifestyle division 7
Slide 8: Breakdown of 2012 revenue (EUR9.7bn)
Empowering Imagination Breakdown of 2012 revenue (EUR9.7bn) Revenue breakdown Revenue breakdown by segment – in % by region – in % RoW* Sport & Lifestyle 13% 36% Western Europe 30% Asia Pacific 25% Luxury North America 64% Japan 20% 12% 8 * Eastern Europe, Middle-East, Africa and South America
Slide 9: Breakdown of 2012 operating income (EUR1.8bn)
Empowering Imagination Breakdown of 2012 operating income (EUR1.8bn) Recurring operating income – from continuing operations 2011 2012 1,792 1,612 1,502 1,263 347 305 -108 -125 Luxury division Sport & Lifestyle Corporate Total division 9 * Eastern Europe, Middle-East, Africa and South America
Slide 10: Strategy and Execution
Empowering Imagination Strategy and Execution Group Unique combination of global luxury and sport & lifestyle brands, each strategy enjoying a complementary positioning (segment, price point…) Management Management experienced in propelling brands and operations beyond Team their instinctive limits
Slide 11: Our mission & management principles
Empowering Imagination Our mission & management principles Our mission – To empower our brands to reach their full global potential in a sustainable and responsible way • Two coherent product areas: apparel and accessories • Two fast-growing market segments: Luxury Goods and Sport & Lifestyle Our ma
Slide 12: Synergies and expertise shared at Group level
Empowering Imagination Synergies and expertise shared at Group level Further strengthening the integration of the Group – Cross-border expertise and support Hedging, fiscal, and working capital Development of new product management Product development categories and sourcing Finance & Logistics mana
Slide 13: Luxury division: Drivers of future growth and profitability
Luxury division Drivers of future growth and profitability A proven multibrand business model: – A well-rounded ensemble of complementary brands … • Designs, manufactures and markets leather goods, shoes, ready-to-wear, jewellery & watches • Highly differentiated positioning (categories, price point
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Slide 15: Sport & Lifestyle division: Drivers of future growth and profitability
Sport & Lifestyle division Drivers of future growth and profitability Puma – One of the world’s leading Sportlifestyle companies • Designs and develops footwear, apparel and accessories • Sport Performance and Lifestyle labels include categories such as Football, Running, Motorsports and Golf • Prod
Slide 16: The Nature of the Escape Artist
THE NATURE OF THE ESCAPE ARTIST HER FEEESET HER MIND FREE
Slide 17: Q3 2013 revenue: Highlights
Q3 2013 revenue Highlights 17
Slide 18: Group revenue up 3.4% comparable
Q3 2013 revenue Group revenue up 3.4% comparable Change % Change % Q3 13 9M 13 Revenue in €m Revenue Reported Comparable Revenue Reported Comparable Luxury 1,617 +1.5% +5.6% 4,695 +3.9% +7.1% Sport & Lifestyle 896 -7.6% -0.9% 2,483 -6.8% -2.4% Other 10 - - 23 - - Kering total 2,523 -1.5% +3.4% 7,201
Slide 19: Luxury division Q3 revenue: 1,617 M€
Luxury division Q3 13 revenue: 1,617 M€ +5.6% comparable; +1.5% reported X%: comparable growth +3% +5% +14% +21% 1,617 M€ 1,593 M€ +4% Q3 2012 Western Europe North America Japan Asia Pacific Other Countries Q3 2013 % of Q3 13 sales 35% 18% 10% 30% 7% Solid growth in retail sales, up 8% in Q3 13 Whol
Slide 20: Sport & Lifestyle division Q3 revenue: 896 M€
Sport & Lifestyle division Q3 13 revenue: 896 M€ -0.9% comparable; -7.6% reported X%: comparable growth 970 M€ -3% +5% -5% -3% -1% 896 M€ Q3 2012 Western Europe North America Japan Asia Pacific Other Countries Q3 2013 % of Q3 13 sales 33% 23% 8% 13% 23% Division performance broadly in line with firs
Slide 21: Conclusion
Q3 2013 revenue Conclusion Luxury: Consistent strategy to fully leverage the growth potential of our brands and markets Sport & Lifestyle: Focus on Puma Transformation Plan and brand relaunch Focus on margins in a tougher short-term market environment 21
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Slide 23: Reminder: H1 2013 key figures
Reminder H1 2013 key figures 23
Slide 24: H1 13 Operating performance overview
H1 13 Operating performance overview In €m Revenue Change % Recurring Change % Recurring Operating operating Reported Comp. Income margin % Luxury 3,078 +5.3% +7.9% 790 +8.6% 25.6% Sport & Lifestyle 1,587 -6.3% -3.2% 110 -27.5% 6.9% Corporate & Others 13 - - (57) - - Total Kering 4,678 +1.4% +4.2% 8
Slide 25: H1 13 revenue
H1 13 revenue Reported Change In €m H1 13 H1 12 €m % Gucci 1,754.8 1,727.8 27.0 1.6% Bottega Veneta 465.6 429.5 36.1 8.4% Saint Laurent 255.3 223.5 31.8 14.2% Other brands 602.7 543.7 59.0 10.9% Luxury division 3,078.4 2,924.5 153.9 5.3% Puma 1,473.9 1,573.8 (99.9) -6.3% Other brands 113.0 120.2 (7.
Slide 26: H1 13 recurring operating income
H1 13 recurring operating income Reported Change In €m H1 13 H1 12 €m % Gucci 556.0 521.0 35.0 +6.7% Bottega Veneta 146.5 129.9 16.6 +12.8% Saint Laurent 27.2 24.7 2.5 +10.1% Other brands 59.8 51.5 8.3 +16.1% Luxury division 789.5 727.1 62.4 +8.6% Puma 109.8 148.8 (39.0) -26.2% Other brands 0.0 2.6
Slide 27: H1 13 operating performance
H1 13 operating performance In €m CONTINUING OPERATIONS H1 13 H1 12 Revenue 4,678 4,614 Gross profit 2,925 2,849 Gross profit margin 62.5% 61.8% Recurring operating income 843 824 Recurring operating income margin 18.0% 17.9% EBITDA 983 956 EBITDA margin 21.0% 20.7% 27
Slide 28: H1 13 financial performance
H1 13 financial performance In €m H1 13 H1 12 Recurring operating income 843 824 +2.3% Other non-recurring operating income and expenses (25) (24) Financial charges (97) (101) Corporate income tax (138) (168) Income from equity affiliates (1) 35 Net income from discontinued operations (388) (61) Con
Slide 29: H1 13 free cash flow from operations
H1 13 free cash flow from operations In €m H1 13 H1 12 Cash flow before taxes, dividends and interest 913 941 Change in working capital requirement (before taxes) (149) (265) Corporate income tax paid (165) (180) Net cash flow from operating activities 599 496 Net acquisition of fixed operating asse
Slide 30: Appendices
Appendices 30
Slide 31: Kering Heritage
Kering 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 ‘
Slide 32: Dividend
Dividend Dividend per share (cash dividend, excl. Fnac shares to be distributed) 3.75 In € 3.50 3.50 + 7.1% 3.30 3.30 + 6.1% 2008 2009 2010 2011 2012 Dividend payout 63.2% 61.6% 58.6% 59.8% 52.9% 47.7% 48.3% 47.6% 41.8% 37.3% 2008* 2009* 2010* 2011* 2012 % of recurring net income, Group share, from
Slide 33: Sustainable business is smart business
Group Sustainability Strategy Sustainable business is smart business Creating value through sustainability – Sustainability is quintessential to the quality of our products. It creates value and represents: • Long-term differentiation • New business development • A spur for innovation • Efficiency o
Slide 34: Strong corporate governance for sustainability
Group Sustainability Strategy Strong corporate governance for sustainability 34
Slide 35: Recognition in indices and reporting framework
Group Sustainability Strategy Recognition in indices and reporting framework For its very first year of participation in the review, Kering was added to the Dow Jones Sustainability Indices (DJSI) World and Europe. Only the top 10% of DJSI leading performers in terms of sustainability assessed again
Slide 36: Kering Financial Communications Team
Contacts Kering Financial Communications Team Claire ROBLET Edouard CROWLEY +33 (0) 1 45 64 61 49 +33 (0) 1 45 64 63 28 [email protected] [email protected] 36
Slide 37: NMEA
NMEA NE fn = Tm BOTTEGA VENETA - ~ BOTTEGA VENETA -~ _ - { H% , i =| aaa
Slide 38: Kering brand portfolio
GUCCI · BOTTEGA VENETA · YVES SAINT LAURENT · ALEXANDER McQUEEN BALENCIAGA · BRIONI · CHRISTOPHER KANE · McQ · STELLA McCARTNEY · SERGIO ROSSI · BOUCHERON · DODO · GIRARD-PERREGAUX · JEANRICHARD · POMELLATO · QEELIN PUMA · VOLCOM · COBRA · ELECTRIC · TRETORN