two thousand eight results · (€ million) 2007 2008 08/07 sales gross margin % of sales logistics...
TRANSCRIPT
Two thousand eight results
- 2 -2008 Results
2008 year in reviewAnnual salesAnnual earnings2009 & 2010 launches2009 outlook
Contents
- 3 -2008 Results
Another year of sales growthAnnual sales of €264.9 million at current exchange rates (+9%)
Annual sales of €276.4 million at constant exchange rates (+14%)
Targets exceeded for main brands
Successful launches
Further earnings growthOperating profit: €34.2 million (+8%)
Net income: €21.1 million (+5%)
A balance sheet that remains solid
Operating highlightsSatisfactory annual performances …
- 4 -2008 Results
Particularly unfavorable foreign exchange trends
A very severe worldwide economic downturn
A change of partner in Spain
Operating highlights…despite adverse factors
- 5 -2008 Results
2008 sales: €169 million▫ +10.5% at current exchange rates
+16.3% at constant exchange rates
Launch of a new women’s line Burberry the Beat
Resilient sales by the Burberry Brit line
Limited contraction by the brand’s historic lines
Burberry
- 7 -2008 Results
2008 sales: €39 million (+17%)
Launch of the Rumeur 2 Rose line in the spring
Good performance by the Éclat d’Arpège line in the second half
Launch of the Jeanne Lanvin line in the fall
Lanvin
- 9 -2008 Results
2008 sales: €21 million (+77%)
Launch of the First Premier Bouquet line in the spring
Good performances by the First line
Launch of the Féerie line in the spring
Good level of sales in France (€8 million)
Van Cleef & Arpels
- 10 -2008 Results
- 11 -2008 Results
2008 sales: €13.4 million (-25%)
Steady performance by the Paul Smith Rose line
Contraction of sales by all other lines of the brand
Paul Smith
- 12 -2008 Results
2008 sales: 11.5 € million (+3%)
A decline in sales, particularly in Russia
Launch of the Passenger line
Concentration of sales in the Middle East and Eastern Europe
S.T. Dupont
- 14 -2008 Results
2008 sales: €7.4 million (+12%)
Mixed performances for initial order renewals for the Roxy et Roxy Love lines
Delayed launch for the Quiksilver men’s fragrance line
Roxy / Quiksilver
- 16 -2008 Results
2008 sales: €2.7 million (-20%)
Major redesign of the brand’s key features
Launch of Silicon Valley by Night, Super Clean Soft
New advertising visual
Nickel
Annual earnings
- 18 -2008 Results
BurberryLanvinVan Cleef & Arpels Paul SmithS.T. DupontQuiksilver/RoxyNickelChristian LacroixOtherTotal
169.039.021.013.411.57.42.71.3
(0.3)264.9
152.933.311.918.011.16.63.33.91.1
242.1
+10%+17%+77%-25%+3%
+12%-20%-67%
ns+9.4%
(€ million) 2007 2008 08/07
Sales by brand
- 19 -2008 Results
AfricaNorth AmericaSouth America AsiaWestern EuropeEastern EuropeMiddle EastFranceTotal
2.249.617.833.985.326.324.225.6
264.9
2.048.815.331.683.320.518.721.9
242.1
+10%+2%
+16%+7%+2%
+28%+30%+17%
+9.4%
(€ million) 2007 2008 08/07
Sales by region
- 20 -2008 Results
North America18% (20%)
Western Europe32% (34%)France
10% (9%)
Middle East9% (8%)Africa
1% (1%)
Eastern Europe10% (9%)
Asia13% (13%)
South America7% (6%)
2008 (2007)
Sales by region
- 21 -2008 Results
Other3% (3%)
Euro55% (54%)
US Dollar34% (33%)
Pounds Sterling8% (10%)
Sales by currency
- 22 -2008 Results
Currency Average exchange rate Average exchange rate Currency2007 2008 effect
€ / $€ /£€ / Yen
1.370.69170
1.500.79167
-€8.6 mn-€3.3 mn
+€0.4 mn
A net impact on sales of €11.5 million
Sales of €276.4 million at constant exchange rate
A net impact of 4.8% of growth on sales
Sales by currency
- 23 -2008 Results
2007 sales
€242.1 mn
Price/Volumeeffect
+14.2%
Currency effect
-4.8%
2008sales
€264.9 mn
+ 9.4%
Analysis of sales
- 24 -2008 Results
(€ million) 2007 2008 08/07SalesGross margin
% of salesLogisticsSelling & advertising expensesRoyaltiesStaff costs (excluding production)
Subsidiary operating costsOtherOperating profit
% of sales
242.1147.4
60.9%(8.0)
(42.4)(25.7)(13.3)(9.2)
(17.0)31.8
13.1%
264.9152.5
57.6%(8.2)
(44.6)(25.2)(14.1)(9.9)
(16.3)34.3
12.9%
+9%+4%
+3%+5%-2%
+6%+7%-4%
+8%
Income statement
- 25 -2008 Results
(€ million) 2007 2008 08/07Operating profit
% of salesNet financial expenseIncome taxIncome before minority interestsMinority interestsNet income
% of sales
31.813.1%(0.8)
(11.2)19.80.4
20.28.3%
34.312.9%
(2.7)(11.0)
20.60.5
21.18.0%
+8%
ns-1%
+4%ns
+5%
Income statement
- 26 -2008 Results
(€ million) 2007 2008 08/07Trademarks and fixed assetsInventoriesTrade receivables and related accountsOther receivablesCash and cash equivalentsTotal
72.756.375.66.5
56.1271.5
69.770.880.011.126.3
262.1
-4%+26%+6%
+71%-53%-3%
Consolidated balance sheetAssets
- 27 -2008 Results
(€ million) 2007 2008 08/07Shareholders’ equityBorrowingsTrade payables and related accountsOther payablesTotal
133.940.565.227.6
271.5
155.730.152.919.3
262.1
+16%-26%-19%-30%-3%
Consolidated balance sheetLiabilities
- 28 -2008 Results
(€ million) 2007 2008Cash flow from operating activities
Change in inventories
Change in trade receivables
Change in other receivables
Change in payables
Change in other liabilities
Change in working capital needs
Net cash provided by operating activities
23.0
(15.0)
(4.8)
2.2
(12.3)
(5.4)
(35.3)
(12.5)
18.5
(16.0)
6.6
(0.5)
18.0
(1.9)
6.1
24.6
Cash flow highlights
- 29 -2008 Results
(€ million) 2007 2008
(0.8)
(2.1)
0.5
(2.4)
-
(11.1)
(4.6)
0.6
(15.1)
Acquisitions of intangible assets
Acquisitions of property, plant and equipment
Other changes
Net cash flows provided by financing activities
Issuance of borrowings and new debt
Debt repayments
Dividends
Other
Net cash from financing activities
(39.1)
(0.3)
(3.5)
(42.9)
40.0
(7.6)
(4.2)
2.0
30.3
Cash flow highlights
- 30 -2008 Results
(€ million) 2007 2008(29.8)
56.1
26.3
Change in net cash
Opening cash and cash equivalents
Closing cash and cash equivalents
12.0
44.1
56.1
Cash flow highlights
- 31 -2008 Results
Dividend▫ €0.38 per share▫ +10.5% over 2007▫ 24% of 2008 consolidated income▫ A total distribution of €5.2 million▫ Dividend payment date: April 30, 2009
Bonus share issue▫ For the tenth consecutive year▫ 1 new share for every 10 held▫ Programmed for early June 2009
Dividend and bonus share issue
- 32 -2008 Results
72 internal control audits conducted in 65 risk areas
A campaign of tests conducted in November 2008
Inter Parfums team of 3 over four weeks
Ernst & Young review
7 not material deficiencies identified
A “Remediation” Plan developed early 2009
Mazars/Fiducia review confirmed the company’s conclusions
Internal control
- 33 -2008 Results
Bonus share issue on May 6, 2008▫ 1 new share for every 10 shares held
Number of shares at December 31, 2008▫ 13,391,980
Number of stock options outstanding at December 31, 2008▫ 514,089
Capital
- 34 -2008 Results
2009 financial calendar
2009 first-quarter salesApril 23, 2009 (after the close of trading)
2009 General MeetingApril 24, 2009 - Pavillon Gabriel, Paris (2:00 p.m.)
2009 first-half salesEnd of July 2009 (after the close of trading)
- 35 -2008 Results
Another year of earnings growth
Margins remain at high levelsOperating margin of close to 13%Net margin of 8%
A solid balance sheetShareholders’ equity : €155 millionNet debt: €4 million
Tight control over expenses through a flexible business model
Earnings highlights
- 36 -2008 Results
Burberry: The Beat for Men (spring 2009)
Lanvin: Lanvin L’Homme Sport (spring 2009)
Quiksilver: Quiksilver (spring 2009)
Van Cleef & Arpels: Féerie Eau de toilette (spring 2009)
Paul Smith: Paul Smith Men (summer 2009)
Van Cleef & Arpels: Collection Extraordinaire (fall 2009)
2009 launchesMany initiatives planned
MARCH 2009
THE INSPIRATION
FOR N
Christopher Bailey’s definition of the Burberry menswear: perfectly cut, unexpected, modern, for a rebellious edgy dandy
The British youth movement that embodies this blend of British heritage and edgy modernity and inspired Burberry The Beat for Women
A modern masculine attitude fueled with the energy and rhythm of music, the dynamism of trends and fashion
THE CONCEPT MODERN
BRITISH HERITAGEEDGY DANDY
REBELLIOUS
THE BEAT as the pulse & vibration of trends.A product that inherited the true appeal of contemporary Burberry Menswear
THE BEAT in music: the imperceptible harmony.A fragrance inspired by the energy that creates the shared common link within a group of friends, a band, an artistic movement.
THE BEAT as mirror of the modern Burberry Masculinity.A mix of edgy influences, modern inspiration and heritage.
A Fragrance that symbolizes a successful fusion of complementary assets, individualities and strong values which are key components of Burberry today
THE SCENT
STYLE, SEXINESS AND RHYTHMAn addictive woody fragrance with a beat of energy.
The unique sensuality of leatherwood. The timeless elegance of vetiver bourbon. The vibrant association of cedrat, black pepper and violet leaves creating a burst of pulsing freshness.
LEATHERWOOD LMRAn exclusive ingredient characterized by a distinctive sexiness. A smoky and textured woodiness tinted with leathery accents. A carnal and magnetic addiction bending tradition with a touch of rebellion.
VETIVER BOURBONA legendary wood. A fragrant ambivalence - dry and wet, cold and warm, rough and noble - giving birth to an unmistakable style. The signature of a British timeless elegance.
ENERGY ACCORD (Cedrat, Black Pepper, Violet Leaves)Vibes of energy running through the fragrance. The juicy and sparkling thrill of cedrat. The vibrant and sharp flash of black pepper. The green and lively pulse of violet leaves. The expression of Burberry’s sleek and avant-garde allure.
FOR MEN
FLACON & ETUI
Masculine shinny gun-metalfinishings and intense back check decoration on both outer packaging and bottle
Matchbox-like opening with shinny gun metal silver tray glorifying the bottle
Waxed cotton strap with shinny gun-metal clip and engraved Burberry logo
THE RANGE
FOR MEN
Eau de Toilette 100ml 3.4 FL.OZEau de Toilette 50ml 1.7 FL.OZEau de Toilette 30ml 1 FL. OZ
After Shave 100ml 3.4 FL.OZ
Soothing After Shave Balm 150ml 5 FL.OZEnergizing Shower Gel 150ml 5 FL.OZDeodorant Stick 75g 2.5 OZ
THE AD VISUAL
45
46
The designersAlber Elbaz & Lucas Ossendrijer
Since 2006, alongside Alber Elbaz, Lucas Ossendrijer has been restoring the prestige of this venerable House in the area of men’s fashion.
47
Lanvin Style Male elegance
Lanvin asserts its style.There is an evident elegance and subtle stylishness. Materials are original and thought out with anendless attention to detail and search for design comfort.
48
1997LANVIN L’HOMME IS BORN
ConceptThe perfection of simplicity
FragranceWoody Floral FruityA feeling of freedom and freshness toaccompany the Man through the day.
49
With its pure and simple lines, the cut is faithful to tradition.
A sense of modernity in its graphism and color.For the occasion, a soft touch navy blueEffect acts as a reference to the sporting theme.
The cover, with its patented arch,and the metallic stopper are in matt silver.
A Contemporary Bottle
50
The deep blue box is both sober and elegant. The blue/whitecontrast illustrates the sportingtheme and is reminiscent of theproduct’s male universe.
A modern,masculine box
51
The packshot
52
The olfactory compositionLanvin L’Homme Sport, a fresh eau decologne that is both modern and textured,distinguished and elegant.
Lanvin L’Homme Sport retranslates perfectly the dynamism and the energy of an intense match.
The power of rallying is illustrated by the sparkling and fizzy freshness of bergamot.
Ace!
The tennis ball skims the net and slams energetically, like the exhilarating petit grain mandarinier green notes.
Match Point! Advantage!
The last smatch breaks the victory of white musks.
Lemon from ItalyBergamot from ItalyPepper
LavenderPetit grain MandarinierClary Sage
Indonesian PatchouliMuskMoss
53
The communication
54
Shower Gel3.3fl.oz. Tube
After-Shave Balm3.3fl.oz. Tube
After-Shave Balm3.3fl.oz. Natural Spray
EDT1.7fl.oz. Natural Spray
EDT3.3fl.oz. Natural Spray
EDT3.3fl.oz. Natural Spray
The range
- 55 -2008 Results
- 57 -2008 Results
- 60 -2008 Results
Burberry: Burberry Sport - fragrance line
Burberry: first make-up line
Van Cleef & Arpels: Bague – new fragrance line (women)
Lanvin: new fragrance line (women)
Paul Smith: new fragrance line (women)
Quiksilver: new fragrance line (men) - to be confirmed
2010 launchesAn eventful programme for development…as well
- 61 -2008 Results
(€ million) 2008 2009(e) 09/08BurberryLanvinVan Cleef & Arpels Paul SmithS.T. DupontQuiksilver/RoxyNickelChristian LacroixOtherTotal
173.040.022.014.012.09.03.00.00.0
273.0
169.039.021.013.411.57.42.71.3
(0.3)264.9
+2%+3%+5%+4%+4%
+22%+11%
nsns
+3%
2009 sales