Christian Dior SE · EURONEXT:CDI
Christian Dior — Shareholder Meeting (December 2014)
35 slides from Christian Dior's shareholder meeting presentation, Dec 9, 2014
Slide 1: Combined Shareholders' Meeting December 9, 2014
Combined Shareholders’ Meeting December 9, 2014 This document is a free translation into English of the original French presentation to the Ordinary Shareholders’ Meeting. 1 In the event of a conflict in interpretation, reference should be made to the French version, which is the authentic text.
Slide 2: Contents
CONTENTS Consolidated financial statements as of June 30, 2014 Review of business groups Christian Dior parent company: - Proposed allocation of net profit - Exceptional distributions in kind of Hermès shares 2
Slide 3: Haute Couture Autumn-Winter 2014/2015
Haute Couture Autumn-Winter 2014/2015
Slide 4: Consolidated Financial Highlights
CONSOLIDATED FINANCIAL HIGHLIGHTS Consolidated revenue (EUR billions) Change at June 30, 2014 (EUR billions) Change * Organic Impact of Currency actual (12 months) growth changes in scope impact exchange rates +7.2% +1.1% -5.4% +2.9% Revenue 31.0 +2.9% +0.3 -1.6 +2.2 Profit from recurring operations
Slide 5: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT June 30, 2014 (EUR millions) (12 months) Revenue 30,984 Gross margin 20,377 Marketing and selling expenses (11,951) General and administrative expenses (2,376) Profit from recurring operations 6,050 Other operating income and expenses (161) Operating profit 5,889 Net fi
Slide 6: Consolidated Free Cash Flow
CONSOLIDATED FREE CASH FLOW (EUR millions) June 30, 2014 (12 months) Income 7,539 Interest taxes (160) Change in working capital Operating (2,022) investments (972) 2,426 (1,959) CASH FROM OPERATIONS FREE BEFORE CHANGES IN CASH FLOW (*) WORKING CAPITAL (*) Before financial investments, transactions
Slide 7: Consolidated Financial Structure
CONSOLIDATED FINANCIAL STRUCTURE June 30, 2014 €61.2 bn €61.2 bn 50% Equity Non-current 73% assets 29% Non-current liabilities Inventories 16% 21% Current Other 11% liabilities current assets Assets Liabilities and equity 7
Slide 8: Consolidated Equity and Net Financial Debt
CONSOLIDATED EQUITY AND NET FINANCIAL DEBT (EUR billions) APRIL 30, 2013 JUNE 30, 2013 JUNE 30, 2014 30,3 27,9 28,1 22% 22% 26% 7,9 6,2 6,3 EQUITY NET FINANCIAL DEBT GEARING RATIO 8
Slide 9: Ready-to-Wear Spring-Summer 2015
Ready-to-Wear Spring-Summer 2015
Slide 10: Consolidated Revenue by Business Group
CONSOLIDATED REVENUE BY BUSINESS GROUP June 30, 2014 (12 months) as % of total revenue Fashion and Leather Goods Selective Retailing 33% 29% Christian Dior Couture Perfumes and Cosmetics 5% 12% Watches and Jewelry Wines and Spirits 9% 13% Note: Eliminations and other activities = -1% of revenue 10
Slide 11: Consolidated Revenue by Geographic Region of Delivery
CONSOLIDATED REVENUE BY GEOGRAPHIC REGION OF DELIVERY June 30, 2014 (12 months) as % of total revenue Europe France (excluding France) 11% 19% Japan United States 7% 22% Asia Other markets (excluding Japan) 11% 30% 11
Slide 12: Consolidated Revenue by Invoicing Currency
CONSOLIDATED REVENUE BY INVOICING CURRENCY June 30, 2014 (12 months) as % of total revenue Euro US dollar 24% 27% Japanese yen Other 7% currencies 42% 12
Slide 13: Archi Dior
10r tian D D =o — UO Archi Dior
Slide 14: Christian Dior Couture
CHRISTIAN DIOR COUTURE Revenue (EUR millions) • Remarkable revenue growth: +19% at constant exchange rates (+20% for revenue from retail) 1,324 1,505 • Strong momentum across all product lines and all geographic areas June 30, 2013 June 30, 2014 (12 months pro forma) (12 months) • Appreciable boost
Slide 15: Wines and Spirits
WINES AND SPIRITS Revenue (EUR millions) • Organic growth: +3%, in a mixed market across the world 4,186 4,064 • Slight decrease in profit from recurring operations (-1%) • Champagne: - Revenue growth balanced between June 30, 2013 June 30, 2014 volume/price/mix (12 months pro forma) (12 months) - S
Slide 16: Fashion and Leather Goods
FASHION AND LEATHER GOODS Revenue (EUR millions) • Organic growth: +5% 9,981 10,201 • Louis Vuitton: a strong creative dynamic - Development of fine leather lines - Successful launch of new Monogram models - Nicolas Ghesquière’s first show as new Artistic Director very well received June 30, 2013 Ju
Slide 17: Perfumes and Cosmetics
PERFUMES AND COSMETICS Revenue (EUR millions) • Organic growth: +7% 3,690 3,752 • Slight increase in profit from recurring operations despite exchange rate impact • Parfums Christian Dior: positions June 30, 2013 June 30, 2014 bolstered in all markets (12 months pro forma) (12 months) Profit from re
Slide 18: Watches and Jewelry
WATCHES AND JEWELRY Revenue (EUR millions) • Organic growth: +5% • Stronger performance in own stores than 2,803 2,776 in multi-brand retailers • Profit from recurring operations stable • Good momentum at Bulgari, which celebrated its 130th anniversary June 30, 2013 June 30, 2014 (12 months pro form
Slide 19: Selective Retailing
SELECTIVE RETAILING Revenue (EUR millions) • Organic growth: +12% 8,504 9,123 • DFS: - Continuing development of tourism in Asia, but spending by Japanese travelers impacted by a weak yen - Profitability affected by the expansion and June 30, 2013 June 30, 2014 renovation of several airport concessi
Slide 20: Christian Dior - Be Dior handbag
Christian Dior Be Dior handbag
Slide 21: Appropriation of Christian Dior Net Profit for FY ended June 30, 2014
APPROPRIATION OF CHRISTIAN DIOR NET PROFIT FOR THE FISCAL YEAR ENDED JUNE 30, 2014 Net profit for the fiscal year (€575m) + Retained earnings (€144m) = Distributable earnings (€719m) Proposed dividend (5th resolution): - gross dividend: €3.10 per share (up 6.9% from the fiscal year ended April 30, 2
Slide 22: Exceptional Distributions of Hermès Shares: Background and Context
EXCEPTIONAL DISTRIBUTIONS OF HERMÈS SHARES Background and context Settlement agreement entered into by LVMH, Christian Dior and Hermès on September 2, 2014, under the aegis of the President of the Commercial Court of Paris: Distribution by LVMH to its shareholders of all 24,473,545 Hermès shares (i.
Slide 23: Exceptional Distributions of Hermès Shares: Two Distinct Transactions
EXCEPTIONAL DISTRIBUTIONS OF HERMÈS SHARES Two distinct transactions First transaction submitted to today’s Combined Shareholders’ Meeting (see 7th resolution): Distribution in kind (following amendment of the Company’s Bylaws, discussed in the 1st resolution) Second transaction to be decided on by
Slide 24: Exceptional Distributions of Hermès Shares: Distribution in Kind
EXCEPTIONAL DISTRIBUTIONS OF HERMÈS SHARES Distribution in kind Transaction put to a vote at today’s Combined Shareholders’ Meeting Total amount of the distribution in kind = (Number of Hermès shares distributed) x (Hermès opening share price on the day of payment) Distribution in kind limited to €2
Slide 25: Exceptional Distributions of Hermès Shares: Interim Dividend in Kind
EXCEPTIONAL DISTRIBUTIONS OF HERMÈS SHARES Interim dividend in kind Transaction subject to the approval of the Company’s Board of Directors at its meeting to be held on December 11, 2014 Total amount of the interim dividend = (Number of Hermès shares distributed) x (Hermès opening share price on the
Slide 26: Common Features of the Two Distribution Transactions
EXCEPTIONAL DISTRIBUTIONS OF HERMÈS SHARES Common features of the two distribution transactions Ex-dividend and payment: December 17, 2014 Rights forming fractional shares are neither tradable nor assignable - If the distribution ratio does not result in a whole number of Hermès shares, the sharehol
Slide 27: Sample Calculations of the Cash Balance Payment
EXCEPTIONAL DISTRIBUTIONS OF HERMÈS SHARES Sample calculations of the cash balance payment For the distribution in kind, assuming (i) a distribution in kind ratio of one (1) Hermès share for every 23 Christian Dior shares, and (ii) a Hermès opening share price of €278 on the day of payment: A shareh
Slide 28: Impact on the Consolidated Financial Statements
EXCEPTIONAL DISTRIBUTIONS OF HERMÈS SHARES Impact on the consolidated financial statements Impact of the distributions of Hermès shares by LVMH, Financière Jean Goujon and Christian Dior (distribution in kind and interim dividend in kind) €2.9 bn decrease in the consolidated equity (Group share) of
Slide 29: Potential Change in the Distribution Ratio
EXCEPTIONAL DISTRIBUTIONS OF HERMÈS SHARES Potential change in the distribution ratio Two possible causes: - significant change in the distribution ratio for Hermès shares distributed by LVMH - level of the Hermès opening share price on the day of payment resulting in the value of the distribution i
Slide 30: Timetable of the Distribution in Kind Transactions (1/2)
TIMETABLE OF THE DISTRIBUTION IN KIND TRANSACTIONS (1/2) Shareholders with shares in bearer form (au porteur) or in administered registered TIMETABLE form (au nominatifOF TRANSACTIONS OF THE administré) DISTRIBUTION December 16, 2014 EquityIN KIND positions (1/2) Dior shares taken into account after
Slide 31: Timetable of the Distribution in Kind Transactions (2/2)
TIMETABLE OF THE DISTRIBUTION IN KIND TRANSACTIONS (2/2) Shareholders with shares in pure registered form (au nominatif pur) Before • Shareholders must communicate to Christian Dior the details of the December 15, securities account and the cash account to which the Hermès shares and 2014 the cash b
Slide 32: Frequently Asked Questions (1/3)
FREQUENTLY ASKED QUESTIONS (1/3) I’m a shareholder with shares in bearer form (au porteur) or in a registered account (au nominatif administré). What steps do I need to take with my bank to receive the distribution in kind? - No action is necessary - However, the shareholder is required to pay his o
Slide 33: Frequently Asked Questions (2/3)
FREQUENTLY ASKED QUESTIONS (2/3) My tax residence is in France. What kind of tax treatment will apply to the transactions? - Concerning (i) the share of the dividend in kind allocated from the Optional Reserves and (ii) the interim dividend in kind, the tax treatment will be the same as for distribu
Slide 34: Frequently Asked Questions (3/3)
FREQUENTLY ASKED QUESTIONS (3/3) What share price will be used to calculate the cash balance payment for each distribution transaction? - Cash balance payments will be calculated in proportion to the Hermès opening share price on December 17, 2014 I hold fewer than 23 or 76 shares. How will the cash
Slide 35: Combined Shareholders' Meeting December 9, 2014
Combined Shareholders’ Meeting December 9, 2014 35