Interparfums, Inc. · NASDAQ:IPAR

Interparfums — Investor Presentation (September 2011)

41 slides from Interparfums's investor presentation, September 2011

  1. Slide 1: Investor Presentation

    Burberry. Lanvin. Van Cleef & Arpels. Jimmy Choo. Paul Smith. Montblanc. S.T. Dupont. Boucheron. Balmain. Nickel. The Gap. Banana Republic. bebe. Brooks Brothers. Betsey Johnson. Nine West. Lane Bryant. Anna Sui. Anthropologie. Investor Presentation September 2011

  2. Slide 2: Fair Disclosure

    Fair Disclosure Statements in this presentation which are not historical in nature are forward-looking statements. Although we believe that our plans, intentions and expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such plans, intentions or expe

  3. Slide 3: Investment Highlights

    Investment Highlights  Global marketer of prestige perfumes and beauty products with a portfolio of well-recognized fashion brands, both licensed and owned outright  Large and attractive industry  Preferred partner  Creative product development  Brand building expertise  Global distribution 

  4. Slide 4: A Global Marketer of Beauty Products

    A Global Marketer of Beauty Products European Operations U.S. Operations 4

  5. Slide 5: Burberry

    Burberry  Distinctive, upscale-market and classic image  Brands include Burberry, Burberry Week End, Burberry Touch, Burberry Brit, Burberry London, Burberry The Beat and Burberry Sport  2011: Burberry Body Burberry Burberry Burberry Burberry Burberry Burberry Brit London The Beat Sport Body 5

  6. Slide 6: Burberry Body

    << » <= Burberry Body 6 interparfums, inc.

  7. Slide 7: Burberry Beauty

    << » <= Burberry Beauty 7 interparfums, inc.

  8. Slide 8: Lanvin

    Lanvin  French fashion house founded in 1889 known for luxury & elegance  Fragrances: Arpège, Eclat d‟Arpège, Arpège Pour Homme, Rumeur and Jeanne Lanvin, Lanvin L‟ Homme Sport, and Marry Me!  2011: Summer scent for women Arpège Eclat d‟ Jeanne Lanvin Lanvin Arpège L‟Homme Sport Marry Me! 8

  9. Slide 9: Van Cleef & Arpels

    Van Cleef & Arpels  IPAR‟s first luxury jewelry brand  Fragrances include Tsar, First, Feerie and Collection Extraordinaire, Oriens for women and Midnight in Paris for men  2011: A new First brand flanker First Feerie Oriens Midnight in Paris 9

  10. Slide 10: Paul Smith

    Paul Smith  British designer with modern style which combines elegance, inventiveness and a sense of humor  Fragrances include Paul Smith, Paul Smith Extreme, Paul Smith Rose, Paul Smith Story, Paul Smith Man and Paul Smith Sunshine  2011: Paul Smith Optimistic, a new collection for men and women

  11. Slide 11: S.T. Dupont

    S.T. Dupont  Manufacturer of luxury writing instruments and accessories  Fragrances include Essence Pure, L‟Eau de S.T. Dupont, Noir, Rose, Blanc, Passenger, Intense and Miss Dupont Essence Pure Passenger Essence Pure Intense Miss Dupont 11

  12. Slide 12: Jimmy Choo

    Jimmy Choo  12 year exclusive licensing agreement effective 1/1/10  Best known for luxury shoes, handbags and accessories  Products sold in 115 Jimmy Choo boutiques in 32 countries, plus prestigious department and specialty stores  Jimmy Choo signature fragrance launched January 2011 12

  13. Slide 13: Montblanc

    Montblanc  10.5 year exclusive license effective 7/1/10  More than 100 year old luxury brand, known for writing instruments, watches, leather goods, and jewelry  Brand sales in 70 countries through a network of more than 350 boutiques  Legend, a new men‟s fragrance, launched in 2011 13

  14. Slide 14: Boucheron

    Boucheron  15 year exclusive license effective 1/1/11  More than 150 year old luxury brand, best known for jewelry  Continued sales of legacy fragrances  New fragrance to launch in late 2012 14

  15. Slide 15: Balmain

    Balmain • 12 year exclusive license effective 1/1/12 • Balmain couture house was founded in 1945 by Pierre Balmain • Take over existing fragrances in 2012 • New fragrance launch in late 2012 15

  16. Slide 16: Nickel

    Nickel •  Range of men‟s skin care products for the face and body is sold through prestige department and specialty stores primarily in France, Western Europe and the U.S.  Nickel spas in Paris, New York and London 16

  17. Slide 17: Large and Attractive Industry

    Large and Attractive Industry Fragrance Industry  World market size approximately $25 billion 2010 Global Fragrance Industry Sales by Geography Asia Pacific 20% Europe 2006 – 2010 Sales CAGR 48% Fragrance Industry: 3% Americas 32% Inter Parfums: 9.4 % 17

  18. Slide 18: Preferred Partner

    Preferred Partner  Our size enables us to work closely with brand owner in the product development process  Creative product development that captures the essence of a brand  Brand building expertise and targeted geographic market launches that maximize impact  Ability to grow portfolio brands t

  19. Slide 19: Demonstrated Success

    Demonstrated Success „95 „97 „00 „03-‟05 „06 „08 „10 Burberry Weekend Touch Brit London The Beat Sport Burberry Brand Sales ($ in millions) 300 248.4 244.9 250 210.0 232.0 200 163.2 182.0 150 100 50 0 2005 2006 2007 2008 2009 2010 19

  20. Slide 20: Global Distribution Footprint

    Global Distribution Footprint  Our products are distributed in over 120 countries through better department stores, perfumeries and specialty retail stores  Company-controlled distribution in U.S., France, Germany, Italy, U.K. and Spain Inter Parfums, Inc. 2010 Sales by Region Asia Pacific Europe

  21. Slide 21: Multi-Pronged Growth

    Multi-Pronged Growth 2011 Launches  Burberry Body (W)  Jimmy Choo Fragrance (W)  Paul Smith Optimistic (M&W)  Montblanc Legend (M)  Lanvin Summer Scent (W)  VCA First Scent (W) 21

  22. Slide 22: Multi-Pronged Growth: Extend into New Categories

    Multi-Pronged Growth Extend into New Categories  Add new products such as skin care and cosmetics under existing brands, i.e. we plan to introduce new skin care products under the Burberry brand over the next few years  Explore other opportunities on the treatment side of the beauty business, leve

  23. Slide 23: Multi-Pronged Growth: Acquisitions, Agreements and New Licenses

    Multi-Pronged Growth Acquisitions, Agreements and New Licenses November 2007: July 2010: June 2011: April 2004: Brooks Brothers Betsy Johnson Anna Sui Acquired Agreement Agreement Agreement Nickel Dec. 2010: July 1997: July 2005: October 2009: Boucheron S.T. Dupont Gap, Inc. Jimmy Choo Agreement Agr

  24. Slide 24: Specialty Retail

    Specialty Retail  Gap, Inc. agreement marked IPAR‟s entry into specialty retail  Amended to include GAP Outlet Stores & Banana Republic Factory Stores  Amended to include international distribution through Gap and Banana Republic stores, select specialty and department stores outside U.S includin

  25. Slide 25: The Discover Collection

    The Discover Collection 25

  26. Slide 26: Recent Addition: Wildbloom

    Recent Addition: Wildbloom 26

  27. Slide 27: GAP Recent Additions

    GAP Recent Additions NEAR (W) DEEP (M) Launched in Q1‟11 Launched in Q2‟11 27

  28. Slide 28: International Distribution

    International Distribution 28

  29. Slide 29: bebe

    bebe NORTH AMERICAN DISTRIBUTION:  Direct sales to over 250 bebe stores  Sales in close to 1000 doors with Dillard‟s, Ulta and Bon-Ton stores  Signature fragrance (2009) and bebe Sheer (2010)  bebe Gold, new fragrance for 2011 INTERNATIONAL DISTRIBUTION:  Specialty retail, including bebe stores

  30. Slide 30: Brooks Brothers

    Brooks Brothers U.S. DISTRIBUTION:  Direct sales to over 200 Brooks Brothers stores in U.S.  Brooks Brothers New York (2008), Black Fleece (2009)  2010: Madison and three scents for Black Fleece INTERNATIONAL DISTRIBUTION:  Specialty retail, including 120 Brooks Brothers stores, department store

  31. Slide 31: Lane Bryant

    Lane Bryant  Inter Parfums to design and manufacture personal care products  Direct sales to approximately 750 Lane Bryant stores and e-commerce site  Performance based bath & body products under Lane Bryant‟s Caciquebody label, launched in spring 2011 at 130 stores; storewide rollout anticipated

  32. Slide 32: Betsey Johnson

    Betsey Johnson.  Design, manufacture and sell fragrance, cosmetics and personal care products  Direct sales to Betsey Johnson stores, plus worldwide distribution to department and specialty retail stores  August 2010 - BJ‟s vintage fragrance for her stores, online and Urban Outfitters  Betsey Jo

  33. Slide 33: Nine West

    Nine West  Inter Parfums to design, manufacture and sell fragrance  Direct sales to approximately 250 Nine West stores plus distribution to department stores and specialty retail outlets worldwide  Nine West, sold in 59 countries, is a unit of Jones Apparel Group  New fragrance launch in Feb. 20

  34. Slide 34: Anna Sui

    Anna Sui  10 year exclusive licensing agreement effective 1/1/12  Anna Sui clothing and accessories sold in 300 sales outlets in 30 countries  Very popular and well represented throughout Asia  New fragrance launch in fall 2012 34

  35. Slide 35: Anthropologie

    Anthropologie  In 2010 created two fragrance collections for stores, online and catalog  Happ & Stahns, retro collection of perfumes, lotions, candles and diffusers  Fragrance collaboration with Le Labo  153 stores in U.S., Canada and Europe  New scent under development 35

  36. Slide 36: Track Record of Performance

    Track Record of Performance Net Sales ($ in millions) Net Income ($ in millions) $600 $550.0 $35 $32.5 $500 $446.1 $460.4 $30 $26.6 $389.6 $409.5 $23.8 $23.8 $22.4 $400 $25 $20 $300 $15 $200 $10 $100 $5 $0 $0 2007 2008 2009 2010 2011* 2007 2008 2009 2010 2011* (est) (est) * Assumes $ remains at curr

  37. Slide 37: First Half Ended June 30

    First Half Ended June 30 ($ in millions, except per share data) 2011 2010 change Net Sales $254.4 $227.1 12.0% Gross Profit $161.6 $136.4 18.4% Gross Margin 63.5% 60.1% 340 bps Operating Income $36.4 $27.5 32.3% Operating Margin 14.3% 12.1% 220 bps EBITDA $42.6 $32.2 32.3% EBITDA Margin 16.7% 14.2%

  38. Slide 38: Strong Balance Sheet

    Strong Balance Sheet  Working Capital: $209 Million  Cash, Cash Equiv. & Short-Term Investments: $53 Million  Long-Term Debt: $2.0 Million  Annual Dividend: $0.32 per share  Low Capex: Generally Less than 1.5% of Sales As of 6/30/11 38

  39. Slide 39: Outlook

    Outlook 2010 2011* Long-Term  Sales of $460.4 million  Sales of $550.0 million,  Generate 10+% internal up 19.5% vs. 2010 revenue growth  Net income attributable to Inter Parfums, Inc. of  Net income attributable  EPS growth of 12%-15% $26.6 million to Inter Parfums, Inc. of $32.5 million, up

  40. Slide 40: Summary

    Summary  Global marketer of prestige perfumes and beauty products with a portfolio of well-recognized fashion brands, both licensed and owned outright  Large and attractive industry  Preferred partner  Creative product development  Brand building expertise  Global distribution  Multi-pronged

  41. Slide 41: Investor Presentation

    Burberry. Lanvin. Van Cleef & Arpels. Jimmy Choo. Paul Smith. Montblanc. S.T. Dupont. Boucheron. Balmain. Nickel. The Gap. Banana Republic. bebe. Brooks Brothers. Betsey Johnson. Nine West. Lane Bryant. Anna Sui. Anthropologie. Investor Presentation September 2011

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