Kering Sa · EURONEXT:KER
Kering Sa — PPR — Société Générale Premium Review Conference 2009
26 slides from Kering Sa's conference presentation, Dec 3, 2009
Slide 1: Changing - An adventure of enterprise
An adventure of enterprise Changing Jean-François PALUS Deputy CEO & CFO Société Générale Premium Review Conference December 3, 2009 /1
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. This document contains forward-looking statements relating to projections and forecasts. They express objectives based on the Group’s management’s current asse
Slide 3: PPR Today
PPR TODAY Satisfactory 2008 performances: €20.2 billion revenues, 61% outside France €1.7 billion recurring operating income Active in 94 countries 88,000 employees /3
Slide 4: PPR Today
PPR TODAY Group of well-established companies refocusing to target the fastest-growing segments of the consumer markets Disciplined, yet dynamic, brand management Right mix of entrepreneurial autonomy & managerial support Significant reservoirs of growth, notably through global expansion Financial r
Slide 5: 2008 Revenues by Region
2008 REVENUES by REGION 39% 24% FRANCE EUROPE (excluding France) 14% AMERICAS 11% ASIA & OCEANIA 12% AFRICA /5
Slide 6: 2009 First-Half Results
2009 FIRST-HALF RESULTS Solid operating & financial performances Revenues of €9.2 billion EBITDA margin up 0.2 point to 10.0% Stable EBIT margin at 7.7% Sharp improvement in free cash flow from operations /6
Slide 7: Strategic Direction
STRATEGIC DIRECTION Boost the Group’s growth & profitability profile: Realign the scope of the Group’s activities towards the fastest- growing and most profitable businesses … ... based on powerful global consumer goods brands (RTW, leather goods, lifestyle, shoes, accessories, ...) on either the ma
Slide 8: PPR Retailing
PPR RETAILING Leading positions in Europe & Africa But today PPR’s retail operations are at different stages of development Requiring different actions plans – restructuring & cost-cutting Heavy dependence on domestic markets, most notably France Retailing activities no longer part of PPR’s long-ter
Slide 9: PPR Branded Lifestyle & Luxury
PPR BRANDED LIFESTYLE & LUXURY PPR committed to growing core Lifestyle & Luxury activities Focus on apparel and accessories Brands with global appeal or potential Considerable growth profile & profitability Strong platform for worldwide growth - beyond Europe into China / Asia Pacific Speed up inter
Slide 10: Future Drivers of PPR Growth & Profitability
FUTURE DRIVERS OF PPR GROWTH & PROFITABILITY Gucci Group A portfolio of world-leading brands: designs, manufactures & markets leather goods, shoes, ready-to-wear, jewellery & watches 2008 revenue: €3.4billion A highly controlled distribution network: 590+ directly-operated stores Puma The ultimate S
Slide 11: Gucci Group
GUCCI GROUP A strategy based on three main objectives: Assign specific roles and positioning to each brand within the Group Strengthen international market positions Ensure competitiveness & optimal financial performance A Group characterized by: The exceptional quality of its products A unique tale
Slide 12: Gucci Group
GUCCI GROUP Loyalty to the brand core values – creativity, product, quality, made in Italy, people and stores Further enhance the unique luxury heritage and the undisputable fashion authority of the Florentine house How to face consumer patterns: Refocusing and rebalancing the offer Rightsizing the
Slide 13: Gucci Group
GUCCI GROUP Translate essence of YSL into most desirable products by building on: Repositioned luxury brands Premier French luxury fashion brand Depth of fashion icons Continue to improve cost management & reengineer store network Pursue successful brand “DNA” & clear market position by building on:
Slide 14: Gucci Group
GUCCI GROUP Enhance bespoke strategy for each brand & ensure correct brand positioning to truly target core consumers Showcase creativity, talent and innovation Enhancing capabilities in supply chain & consumer knowledge Build recurring profitability / 14
Slide 15: Puma
PUMA A strategy based on three main objectives: Broaden international market positions outside of European stronghold Strengthen positioning as the world’s most desirable Sportlifestyle company Bolster positions as a multi-category brand … to ensure continued revenue growth & higher profitability A
Slide 16: Conclusion
An adventure of enterprise Conclusion / 16
Slide 17: PPR Tomorrow
PPR TOMORROW Continuing to grow the success and profitability of the business Top-line progress through organic growth & international expansion Margin improvements Optimize capex & working capital Strong cash flow generation and robust financial discipline Business refocused on higher-return Lifest
Slide 18: Appendices
An adventure of enterprise Appendices / 18
Slide 19: September YTD 2009 sales
September YTD 2009 sales Sept YTD (1) (Sales in € M) 2009 09/08 change Fnac 2,881 -3.0% Redcats 2,482 -9.5% Conforama 2,079 -10.8% CFAO 1,937 -4.7% Puma 1,971 -5.9% Gucci Group 2,461 -5.9% Other & inter-company -13 ns PPR – Continuing operations 13,799 - 6.6% (1) Comparable scope and exchange rates
Slide 20: Solid operating & financial performances in 1H09
Solid operating & financial performances in 1H09 Revenues of €9.2 billion EBITDA margin up 0.2 point to 10.0% Stable EBIT margin at 7.7% Sharp improvement in free cash flow from operations / 20
Slide 21: Operating performance
Operating performance €m CONTINUING OPERATIONS Change H1 2009 H1 2008 Revenues 9,235 9,584 - 3.6% Gross profit 4,094 4,236 - 3.3% Gross profit margin 44.3% 44.2% + 0.1 pt Recurring operating income 707 743 - 4.8% Recurring operating income margin 7.7% 7.7% + 0.0 pt EBITDA 925 942 - 1.8% EBITDA margi
Slide 22: Financial performance
Financial performance €m H1 2009 H1 2008 Change Recurring operating income 707 743 -4.8% Other non-recurring operating income and expenses (127) 23 Financial charges 242) (180) Corporate income tax (105) (156) Income from equity affiliates 0 (1) Net income from continuing operations 233 430 -45.7% N
Slide 23: Free cash flow
Free cash flow €m H1 2009 H1 2008 Cash flow before taxes, dividends and interest 908 928 Change in working capital requirement (before taxes) (621) (700) Corporate income tax paid (143) (163) Net cash flow from operating activities 144 65 Acquisition of fixed operating assets (201) (253) Sale of fix
Slide 24: Consolidated balance sheet
Consolidated balance sheet €m June 2009 Dec. 2008 June 2008 Goodwill & intangible assets 16,483 16,351 16,485 Other net non-current assets 389 421 201 Net current assets 547 (40) 481 Provisions (653) (613) (460) CAPITAL EMPLOYED 16,766 16,119 16,707 Net asset held for sale (10) 3 SHAREHOLDERS’ EQUIT
Slide 25: Liquidity
Liquidity €4,485m Debt Maturity as of June 30, 2009 Net Debt €6,406m 2,169 997 1,117 1,128 668 326 Undrawn 2010* 2011** 2012** 2013** 2014** beyond** confirmed lines of credit * Gross debt minus Cash & cash equivalents and Financing of customer loans ** Gross debt / 25
Slide 26: Alexandre de Brettes, Investor Relations
Alexandre de BRETTES Director of Financial Communications & Investor Relations + 33 (0) 1 45 64 61 49 [email protected]
PPR — Société Générale Premium Review Conference 2009 on 6ix