Kering Sa · EURONEXT:KER
Kering Sa — PPR — Non-Deal Roadshow (February 2013)
30 slides from Kering Sa's roadshow presentation, February 2013
Slide 1: Investor Presentation
INVESTOR PRESENTATION Jean Marc Duplaix, CFO London Roadshow, HSBC February 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: Empowering Imagination
EMPOWERING IMAGINATION PPR
Slide 4: Investment Thesis (1/2)
INVESTMENT THESIS (1/2) Unique combination of global luxury and premium sports & lifestyle Unique brands, enjoying: combination - Leading positions in their respective segments - Broad consumer appeal as self-fulfillment and indulgence increasingly drive buying decisions - Considerable organic growt
Slide 5: Investment Thesis (2/2)
INVESTMENT THESIS (2/2) Strong human values at the core of our success and Human values transformation Mastering the entire value chain of our brands Value chain Flexible production and distribution infrastructure Total control over design, development and brand characteristics Financial and Financi
Slide 6: Who We Are
WHO WE ARE Young company about to celebrate its 50th birthday Longstanding heritage in specialized distribution, giving us a unique expertise in assessing consumer tastes, expanding retail concepts, developing new formats, channels and brands Entered the Luxury goods universe in 1999 with an ini
Slide 7: Our Mission
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 7
Slide 8: Our Management Principles
OUR MANAGEMENT PRINCIPLES We give our brands freedom within a framework Freedom within Empower the development of our key assets – the brands – and a framework help them reach beyond their limits We are a group and act as a group Group A single worldwide corporate team PPR Asia and PPR Americas to b
Slide 9: PPR Effect: A Better Integrated Group
PPR EFFECT: A BETTER INTEGRATED GROUP, NURTURING THE GROWTH OF ALL OUR BRANDS Strategic joint venture with Yoox in Luxury Development of monobrand e-commerce sites Sustainable development guidelines Group strategies: human resources, real estate, brand marketing… Shared service centers 9
Slide 10: Luxury Division – Drivers of Future Growth and Profitability
LUXURY DIVISION – DRIVERS OF FUTURE GROWTH AND PROFITABILITY Well-rounded ensemble of complementary brands: Pertinent Designs, manufactures and markets leather goods, shoes, ready- multibrand model to-wear, jewelry & watches Highly differentiated positioning between brands, substantial organic growt
Slide 11: Sport & Lifestyle Division – Drivers of Future Growth and Profitability
SPORT & LIFESTYLE DIVISION – DRIVERS OF FUTURE GROWTH AND PROFITABILITY THE ultimate sportlifestyle brand - one of the worlds’ largest Puma providers of athletic footwear, apparel & accessories A business characterized by a brand value where product categories originating in sports are continued and
Slide 12: 2012: An Excellent Year for PPR
2012: AN EXCELLENT YEAR FOR PPR Growth, profitability & accelerated transformation 12
Slide 13: In 2012 PPR Sped Up the Pace of Its Transformation
IN 2012 PPR SPED UP THE PACE OF ITS TRANSFORMATION Excellent operating and financial performances Group consolidated revenue up 21% in reported terms Recurring net income, Group share: +28% Net debt / EBITDA ratio down to 1.2x Strategic transformation nearing completion Further consolida
Slide 14: Outstanding Performance of the Luxury Division Drives Strong Results
OUTSTANDING PERFORMANCE OF THE LUXURY DIVISION DRIVES STRONG RESULTS Another year of strong growth in revenue and results for the Luxury brands in €m Revenue Change Recurring Change Recurring Reported Comp. Operating operating Income margin Luxury 6,212 +26.3% +15.1% 1,612 +27.6% 25.9% Sport & Lif
Slide 15: Conclusion & Outlook
CONCLUSION & OUTLOOK Solid fundamentals Aligned with consumer aspirations driving today’s buying decisions Powerful brands and flexible business models Confidence for 2013 Another year of solid progression in revenue and profits 15
Slide 16: Appendix: Full Year 2012 Figures
APPENDIX FULL YEAR 2012 FIGURES 16
Slide 17: PPR Heritage
PPR 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 ‘con
Slide 18: Operating Performance
OPERATING PERFORMANCE In €m CONTINUING OPERATIONS 2012 2011 Change Revenue 9,736 8,062 +20.8% Gross profit 5,960 4,976 +19.8% Gross profit margin 61.2% 61.7% Recurring operating income 1,792 1,501 +19.3% Recurring operating income margin 18.4% 18.6% EBITDA 2,067 1,739 +18.8% EBITDA margin 21.2% 21.6
Slide 19: Financial Performance
FINANCIAL PERFORMANCE In €m 2012 2011 Change Recurring operating income 1,792 1,501 +19.3% Other non-recurring operating income and expenses (25) (24) Financial charges (148) (202) Corporate income tax (298) (295) Income from equity affiliates 37 47 Net income from discontinued operations (276) 19 C
Slide 20: Free Cash Flow from Operations
FREE CASH FLOW FROM OPERATIONS In €m 2012 2011 Cash flow before taxes, dividends and interest 2,001 1,696 Change in working capital requirement (before taxes) (273) (181) Coprorate income tax paid (362) (336) Net cash flow from operating activities 1,366 1,179 Acquisition of fixed operating assets (
Slide 21: Financial Charges, Income Tax
FINANCIAL CHARGES INCOME TAX In €m 2012 2011 Cost of net indebtedness (212) (210) Other financial charges (net) 64 8 Financial charges (net) (148) (202) In €m 2012 2011 Current tax (expense) / Income (360) (297) Tax on on-current items 62 2 Total tax (298) (295) Effective tax rate 18.4% 23.1% Curren
Slide 22: Free Cash Flow from Operations
FREE CASH FLOW FROM OPERATIONS In €m 2012 2011 Cash flow before taxes, dividends and interest 2,001 1,696 Change in working capital requirement (before taxes) (273) (181) Coprorate income tax paid (362) (336) Net cash flow from operating activities 1,366 1,179 Acquisition of fixed operating assets (
Slide 23: Net Financial Indebtedness
NET FINANCIAL INDEBTEDNESS In €m Net indebtedness at December 31, 2011 3,396 Free cash flow from operations (930) Net interest paid and dividend received 162 Dividends paid 473 Purchases of PPR shares 15 Purchases of Puma shares 120 Other disposals & acquisitions (653) Other (91) Net indebtedness at
Slide 24: Dividend
DIVIDEND Dividend* per share (cash dividend, excl. Fnac shares to be distributed*) + 7.1% In € + 6.1% Dividend payout * Subject to June 18, 2013 AGM approval. ** Published not restated. 24
Slide 25: 2012 Revenue
2012 REVENUE Change In €m 2012 2011 €m % Gucci 3,638.8 3,143.2 495.6 + 15.8% Bottega Veneta 945.1 682.6 262.5 + 38.5% Yves Saint Laurent 472.8 353.7 119.1 + 33.7% Other brands 1,155.6 737.5 418.1 + 56.7% Luxury 6,212.3 4,917.0 1 295.3 + 26.3% Puma 3,270.7 3,009.0 261.7 + 8.7% Other brands 261.2 146.
Slide 26: 2012 Recurring Operating Income
2012 RECURRING OPERATING INCOME Change In €m 2012 2011 €m % Gucci 1,126.4 947.7 178.7 + 18.9% Bottega Veneta 300.1 204.6 95.5 + 46.7% Yves Saint Laurent 65.0 40.9 24.1 + 58.9% Other brands 120.1 69.4 50.7 + 73.1% Luxury 1,611.6 1,262.6 349.0 + 27.6% Puma 290.0 333.2 (43.2) - 13.0% Other brands 14.8
Slide 27: Condensed Consolidated Balance Sheet
CONDENSED CONSOLIDATED BALANCE SHEET In €m 2012 2011 Goodwill, brands & other intangible assets - Net 14,361 14,546 Other net non-current assets (467) 115 Net current assets 757 278 Provisions (365) (364) CAPITAL EMPLOYED 14,286 14,575 Net asset held for sale 325 570 SHAREHOLDERS’ EQUITY 12,119 11,7
Slide 28: Solvency
SOLVENCY In €m * Published not restated 28
Slide 29: Liquidity
LIQUIDITY In €m NFD 2,492 M€ * Gross debt minus cash & cash equivalents and financing of customer loans ** Gross debt 29
Slide 30: Contacts
CONTACTS PPR FINANCIAL COMMUNICATIONS Alexandre de BRETTES +33 (0) 1 45 64 61 49 [email protected] Edouard CROWLEY +33 (0) 1 45 64 63 28 [email protected] 30