Kering Sa · EURONEXT:KER
Kering Sa — Non-Deal Roadshow (March 2013)
35 slides from Kering Sa's roadshow presentation, March 2013
Slide 1: Investor Presentation, Hong Kong, March 2013
2013I n v e s t o r P r e s e n t a t i o n Jean-Marc Duplaix, CFO Hong-Kong, March 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
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Slide 4: Kering: Empowering Imagination
Kering Empowering Imagination Jean-Marc Duplaix Group CFO 4 33
Slide 5: Investment Thesis (1/2)
Investment Thesis (1/2) Unique Unique combination of global luxury and premium sports & lifestyle brands, combination enjoying: – Leading positions in their respective segments – Broad consumer appeal as self-fulfillment and indulgence increasingly drive buying decisions – Considerable organic growt
Slide 6: Investment Thesis (2/2)
Investment Thesis (2/2) Strong human values at the core of our success and transformation Human values Value chain Mastering the entire value chain of our brands – Flexible production and distribution infrastructure – Total control over design, development and brand characteristics Financial Financi
Slide 7: Who We are
Who We are Young company celebrating its 50th birthday this year – Longstanding heritage in specialized distribution • Unique expertise in assessing consumer tastes, expanding retail concepts, developing new formats, channels and brands – Entered the Luxury goods universe in 1999 with an initial sta
Slide 8: Our Mission & management principles
Our Mission & management principles 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 Our management principles – F
Slide 9: Kering Effect: A better integrated Group
Kering Effect A better integrated Group 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 33
Slide 10: Luxury division: Drivers of future growth and profitability
Luxury division Drivers of future growth and profitability Pertinent multibrand business model – Well-rounded ensemble of complementary brands: • Designs, manufactures and markets leather goods, shoes, ready-to-wear, jewellery & watches • Highly differentiated positioning between brands, substantial
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Slide 12: Sport & Lifestyle division: Drivers of future growth and profitability
Sport & Lifestyle division Drivers of future growth and profitability Puma – THE ultimate sportlifestyle brand • One of the worlds’ largest providers of athletic footwear, apparel & accessories • A business characterized by a brand value where product categories originating in sports are continued a
Slide 13: a oo A:
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Slide 14: 2012: An excellent year
2012 An excellent year Jean-Marc Duplaix Kering Group CFO 14 33
Slide 15: In 2012 we sped up the pace of our transformation
In 2012 We sped up the pace of our 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 consolidation
Slide 16: 2012, a highly successful year
2012, a highly Successful year Another year of strong growth in revenue and results for the Luxury brands Transition year in Sport & Lifestyle; rigorous and energetic transformation plan at Puma Change Recurring Recurring Operating operating in €m Revenue Reported Comp. Income Change margin Luxury 6
Slide 17: 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 17 33
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Slide 19: Appendix: FY 2012 figures
Appendix FY 2012 figures 19 33
Slide 20: Kering Heritage
Kering 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 ‘
Slide 21: Operating performance
Operating performance in €m 2012 2011 Change CONTINUING OPERATIONS 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 22: 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 23: Financial charges and income taxes
Financial charges Income taxes 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% Curr
Slide 24: 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) Coporate income tax paid (362) (336) Net cash flow from operating activities 1,366 1,179 Acquisition of fixed operating assets (4
Slide 25: Net financial indebtedness
Net financial indebtedness in €m 2012 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 indebtedne
Slide 26: Dividend
Dividend Dividend* per share (cash dividend, excl. Fnac shares to be distributed*) 3.75 In € 3.50 3.50 + 7.1% 3.30 3.30 + 6.1% 2008 2009 2010 2011 2012* Dividend payout 63.2% 61.6% 58.6% 59.8% 52.9% 47.7% 48.3% 47.6% 41.8% 37.3% 2008** 2009** 2010** 2011** 2012* % of recurring net income, Group shar
Slide 27: 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 261.2 146.7 114.
Slide 28: 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 13.5 1
Slide 29: 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 30: Solvency
Solvency 4 3,95 6 700 3,9 3,85 3,8 3,75 3,7 3,65 In €m 3,6 3,55 3,5 3,45 NFD NFD/EBITDA 3,4 3,35 5 700 5,510 3,3 3,25 3,2 3,15 3,1 3,05 3 2,95 2,9 2,85 2,8 2,75 4 700 4,367 2,7 2,65 2,6 2,55 2,5 2,45 2.57 2,4 2,35 2.44 3,781 2,3 2,25 3 700 2,2 2,15 3,396 2,1 2,05 2 1,95 2.03 1,9 1,85 1,8 1,75 1,7 1,
Slide 31: Liquidity
Liquidity In €m 4,024 NFD 2,492 M€ 993 822 777 360 26 (486) Confirmed 2013* 2014** 2015** 2016** 2017** beyond** undrawn credit lines 31 * Gross debt minus cash & cash equivalents and financing of customer loans 33 ** Gross debt 31
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Slide 33: Kering Financial Communications Team
Contacts Kering Financial Communications Team Alexandre de BRETTES +33 (0) 1 45 64 61 49 [email protected] Edouard CROWLEY +33 (0) 1 45 64 63 28 [email protected] 33 33
Slide 34: Group brands
GUCCI · BOTTEGA VENETA · YVES SAINT LAURENT · ALEXANDER McQUEEN BALENCIAGA · BRIONI · STELLA McCARTNEY · SERGIO ROSSI · BOUCHERON GIRARD-PERREGAUX · JEANRICHARD · QEELIN · CHRISTOPHER KANE PUMA · VOLCOM · COBRA · ELECTRIC · TRETORN
Slide 35: PPR will become Kering, subject to AGM approval
PPR will become Kering, subject to approval of the annual general meeting on 18 June 2013.