Moncler Spa · MIL:MONC
Moncler Spa — FY2019 Earnings Presentation
40 slides from Moncler Spa's earnings presentation, 2020
Slide 1: FY 2019 Financial Results
Slide 2: Push for higher peaks
PUSH FOR HIGHER PEAKS BRING OTHER VOICES IN EMBRACE CRAZY KEEP WARM PLAN BEYOND TOMORROW
Slide 3: Embrace the extraordinary and discover the genius within
EMBRACE THE EXTRAORDINARY AND DISCOVER THE GENIUS WITHIN
Slide 4: Company Overview
COMPANY OVERVIEW
Slide 5: Our story is made of heritage, uniqueness, quality, consistency and energy
OUR STORY IS MADE OF HERITAGE, UNIQUENESS, QUALITY, CONSISTENCY AND ENERGY Moncler launched Moncler creates Moncler brand is acquired Moncler’s revenues its directly managed the first nylon jacket by Remo Ruffini surpassed 1bn euros e-commerce in Korea 1954 2003 2016 2019 1952 ‘50 - ‘60 2013 2018 Th
Slide 6: A new era began
A NEW ERA BEGAN Revenues (Eur M) PRODUCT DISTRIBUTION CLIENT COMMUNICATION 1800 1500 +23% 1200 2003-2019 CAGR 900 200 l l 300 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2003-20: 2008-2017 2018 ani 5 years of re-engineer 10 years of expansion The era of
Slide 7: Product evolution: enlarging core business with new-core categories
PRODUCT EVOLUTION: ENLARGING CORE BUSINESS WITH «NEW-CORE» CATEGORIES MONCLER MAN AND WOMAN GRENOBLE COLLECTIONS * One collection, all year long * Our milestone + “Moncler Lab” for innovation SOFT ACCESSORIES * Focus on improving design & merchandise + Increase visibility in store * Collections in c
Slide 8: Retail: still unexploited potential from organic and expansion
RETAIL: STILL UNEXPLOITED POTENTIAL FROM ORGANIC AND EXPANSION OUR GOALS: * AT LEAST 10 NEW OPENINGS PER ANNUM * IMPORTANT RELOCATIONS Bf Existing markets to further develop New markets ° COM PLETE FLAGSHIPS NETWORK + Selected new openings and relocations to continue to drive revenues + Strong focus
Slide 9: Digital commerce is our outperforming channel
DIGITAL COMMERCE IS OUR OUTPERFORMING CHANNEL DIGITAL DIGITAL DIGITAL COMMERCE | EXPERIENCE MARKETING OUR GOALS: *NEW WEBSITE * Moncler.com our first flagship store * DOUBLE MONCLER’S ‘ ONLINE REVENUES * Online revenues have been growing strong double-digit over the past years * EMEA, Japan and US o
Slide 10: Airports should increasingly contribute to revenues' growth
AIRPORTS SHOULD INCREASINGLY CONTRIBUTE TO REVENUES’ GROWTH oe % e OUR FOCUS: be * SELECTIVELY EXPAND ° AIRPORT STORES NETWORK * DEVELOP DEDICATED PRODUCTS * INTRODUCE CUSTOMISED VM AND WINDOWS Travel retail channel increasingly important also to attract Next-Gen * 20 locations at YE 2019 * Some 25-
Slide 11: Wholesale: strong focus on SiS and e-tailers
WHOLESALE: STRONG FOCUS ON SIS AND E-TAILERS Bf Existing markets to further develop New markets + SiS development and e-tailers to continue to drive results * Some 5-8 new SiS p.a. expected, including stores in important high-traffic airports + Reinforce penetration on selected top e-tailers * Doors
Slide 12: Retail Excellence 2.0
RETAIL EXCELLENCE 2.0: OUR CLIENT IS OUR MAIN FOCUS EVERYWHERE TO DRIVE ORGANIC GROWTH SELLING EXPERIENCE CLIENT COMMUNICATION 2008—2014 Client Advisors mainly «offering» Moncler products Limited knowledge and interaction outside selling experience Corporate communication. CRM started 2015—2017 RETA
Slide 13: Supply chain: obsessed with quality, focused on time to market
SUPPLY CHAIN: OBSESSED WITH QUALITY, FOCUSED ON TIME TO MARKET OUR MISSION FOUR KEY FOCUS AREAS MONCLER GENIUS MONCLER WANTS TO CONTINUE TO DELIVER THE BEST-IN-CLASS PRODUCTS WITH THE HIGHEST QUALITY STANDARDS AND THE MOST INNOVATIVE DESIGN AT KNITWEAR, SHOES AND LEATHER GOODS THE PLANNED TIME MONCL
Slide 14: Sustainability is a long journey with one goal: continuous improvement
SUSTAINABILITY IS A LONG JOURNEY WITH ONE GOAL: CONTINUOUS IMPROVEMENT RESPONSIBLE SOURCING PEOPLE EXPERIENCE * Stringent ethical requirements for all suppliers Employee engagement activities + Pursuing a philosophy of continuous improvement, sharing Promote employee wellbeing and foster work-life b
Slide 15: Moncler's future starts now
MONCLER’S FUTURE STARTS NOW —> Know-how to make it work — Creativity and multiplicity to make it magic — > Simplicity to make it happen Stay tuned!
Slide 16: FY 2019 Financial Results
FY 2019 FINANCIAL RESULTS
Slide 17: FY 2019 Key Highlights
FY 2019 KEY HIGHLIGHTS“ “> REVENUES RETAIL REVENUES WHOLESALE REVENUES EUR 1,627.7M, +13% AT CONSTANT EXCHANGE RATES (+15% REPORTED) EBIT EUR 1,256.9M, +13% AT CONSTANT EXCHANGE RATES (+16% REPORTED) CSSG +7% WITH SOLID RESULTS IN ALL REGIONS NET INCOME EUR 370.8M, +10% AT CONSTANT EXCHANGE RATES (4
Slide 18: Revenue breakdown by region
REVENUE BREAKDOWN BY REGION“ In FY 2019 Moncler continued to show outstanding revenue results, surpassing Euro 1.6bn (4+13%), with double-digit growth in all regions. Also in Q4 Moncler reached an excellent 13% growth In FY 2019 Italy recorded a +10% growth, with an important acceleration in Q4 (+21
Slide 19: Revenue breakdown by distribution channel
REVENUE BREAKDOWN BY DISTRIBUTION CHANNEL“ In FY 2019 Moncler recorded double-digit growth in both distribution channels Retail continued to deliver excellent results in the year (+13%) driven by solid organic growth and space contribution: * 7% Comp Store Sales Growth (CSSG) * E-commerce strongly o
Slide 20: Mono-brand stores network
MONO-BRAND STORES NETWORK Moncler’s retail network reached 209 mono- brand stores as of 31 December 2019, compared to 193 at 31 December 2018 (16 new openings) * 10 new DOS opened in Q4 2019 + Around 15 DOS secured for 2020 Wholesale mono-brand stores reached 64 locations at the 31 December 2019, co
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Slide 25: Income statement - IFRS impacts' analysis on FY 2019
INCOME STATEMENT - IFRS 16 IMPACTS’ ANALYSIS ON FY 2019 FY 2019 Impacts FY 2019 including IFRS 16 excluding IFRS 16 Eur m % Eur m Eurm % Revenues 1,627.7 100.0% - 1,627.7 100.0% YoY growth 415% 415% Cost of sales (362.4) (22.3%) 0.3 (362.7) (22.3%) Gross margin 1,265.3 77.7% 03 1,265.0 77.7% Selling
Slide 26: Consolidated income statement
CONSOLIDATED INCOME STATEMENT FY 2019 excluding IFRS 16 FY 2018 Eur m % Eur m % Revenues 1,627.7 100.0% 1,420.1 100.0% YoY growth 415% 419% Cost of sales (362.7) (22.3%) (320.2) (22.6%) Gross margin 1,265.0 77.7% 1,099.8 77.4% Selling expenses (498.5) (30.6%) (428.9) (30.2%) General & Administrative
Slide 27: Net capex - excluding IFRS impacts
NET CAPEX - EXCLUDING IFRS 16 IMPACTS Consolidated capex reached Eur 120.8m in FY 2019 equal to 7.4% of revenues compared to 6.4% in FY 2018 Investments in the distribution network were equal to Eur 75.3m, or 62% of total capex. During the year Moncler opened, relocated and expanded more than 30 loc
Slide 28: Net working capital - excluding IFRS impacts
NET WORKING CAPITAL - EXCLUDING IFRS 16 IMPACTS NET WORKING CAPITAL ANALYSIS (Eur M) As of 31 December 2019, net working (%) on revenues capital reached Eur 128.2m, equal to 7.9% of revenues versus 7.3% as of 31 December 2018 Inventory was equal to Eur 208.9m compared to Eur 173.1 million as of 31 1
Slide 29: Net financial position - excluding IFRS impacts
NET FINANCIAL POSITION - EXCLUDING IFRS 16 IMPACTS At 31 December 2019, Moncler’s net financial position reached Eur 662.6m of net cash Also in 2019 the Group recorded a strong cash generation with Eur 212.5m of net cash flow after the payment of Eur 101.7m of dividends and Eur 15.1m of shares’ buyb
Slide 30: Consolidated balance sheet statement
CONSOLIDATED BALANCE SHEET STATEMENT 30 31/12/2019 excluding IFRS 16 31/12/2018 Eur m Eurm Intangible Assets 442.2 A424,4 Tangible Assets 212.9 177.0 Other Non-current Assets/ (Liabilities) 65.8 35.9 Total Non-current Assets/(Liabilities) 721.0 637.2 Net Working Capital 128.2 103.2 Other Current Ass
Slide 31: Consolidated cash flow statement
CONSOLIDATED CASH FLOW STATEMENT 31 FY 2019 excluding IFRS 16 FY 2018 Eur m Eur m EBITDA Adjusted 574.8 500.2 Change in Net Working Capital (25.0) (13.6) Change in other curr./non-curr. assets/(liabilities) 24.9 48.4 Capex, net (120.8) (91.5) Operating Cash Flow 453.9 443.6 Net financial result (0.9
Slide 32: Appendix
APPENDIX
Slide 33: FY 2019 income statement - IFRS impacts' analysis
FY 2019 INCOME STATEMENT - IFRS 16 IMPACTS’ ANALYSIS FY 2019 Impacts FY 2019 including IFRS 16 excluding IFRS 16 Eur m % Eur m Eurm % Revenues 1,627.7 100.0% - 1,627.7 100.0% YoY growth 415% 415% Cost of sales (362.4) (22.3%) 0.3 (362.7) (22.3%) Gross margin 1,265.3 77.7% 03 1,265.0 77.7% Selling ex
Slide 34: FY 2019 balance sheet statement - IFRS impacts' analysis
FY 2019 BALANCE SHEET STATEMENT- IFRS 16 IMPACTS’ ANALYSIS 34 31/12/2019 Impacts 31/12/2019 including IFRS 16 excluding IFRS 16 Eurm Eurm Eur m Intangible Assets 435.0 (7.2) 442.2 Tangible Assets 212.9 - 212.9 Other Non-current Assets/(Liabilities) 90.7 24.8 65.8 Right-of-use Assets 593.6 593.6 - To
Slide 35: FY 2019 cash flow statement - IFRS impacts' analysis
FY 2019 CASH FLOW STATEMENT - IFRS 16 IMPACTS’ ANALYSIS 35 ; _ FY 2019 Impacts _ FY 2019 including IFRS 16 excluding IFRS 16 Eurm Eur m Eur m EBITDA Adjusted 692.3 117.5 574.8 IFRS 16 rents (117.5) (117.5) - Change in Net Working Capital (25.0) - (25.0) Change in other curr./non-curr. assets/(liabil
Slide 36: Quarterly revenue breakdown by region and channel
2019 QUARTERLY REVENUE BREAKDOWN BY REGION AND CHANNEL fey YoY growth a2 YoY growth Q3 YoY growth a4 YoY growth Eurm 2019 2018 Rep. ex FX 2019 2018 Rep. ex FX 2019 2018 Rep. exFX 2019 2018 Rep. exFX Italy 45.8 43.3 +6% +6% 22.7 20.1 +13% 413% 62.1 59.5 +4% +4% 54.4 45.0 421% 421% EMEA (excl. Italy)
Slide 37: Quarterly revenue breakdown by region and channel - YTD
2019 QUARTERLY REVENUE BREAKDOWN BY REGION AND CHANNEL - YTD fey YoY growth H1 YoY growth 9M YoY growth FY YoY growth Eurm 2019 2018 Rep. ex FX 2019 2018 Rep. ex FX 2019 2018 Rep. exFX 2019 2018 Rep. exFX Italy 45.8 43.3 +6% +6% 68.5 63.3 +8% +8% 130.6 122.8 +6% +6% 185.0 167.8 +10% +10% EMEA (excl.
Slide 38: Half-yearly consolidated income statement
2019 HALF-YEARLY CONSOLIDATED INCOME STATEMENT excluding IFRS 16 H1 2018 excluding IFRS 16 H2 2018 Eur m % Eurm % Eurm % Eur m % Revenues $70.2 100.0% 493.5 100.0% 1,057.5 100.0% 926.6 100.0% YoY growth +16% 421% +14% +18% Cost of sales (133.2) (23.4%) (118.6) (24.0%) (229.5) (21.7%) (201.6) (21.8%)
Slide 39: Shareholding structure, upcoming events, IR contacts
SHAREHOLDING STRUCTURE, UPCOMING EVENTS, IR CONTACTS 39 SHAREHOLDING > 22.5% Ruffini Partecipazioni S.r.l. 5.2% BlackRock Inc. 3.0% Morgan Stanley Asia Limited 2.2% Treasury Shares 67.1% Market Source: Consob, Moncler Last update: 7 February 2020 2020 Upcoming Events 16 March 2020 Extraordinary Shar
Slide 40: Disclaimer
DISCLAIMER 40 This presentation is being furnished to you solely for your information and may not be reproduced or redistributed to any other person. This presentation might contain certain forward-looking statements that reflect the Company’s management’s current views with respect to future events