Investor - Jefferies Group · §Leading New York design house of modern luxury accessories and...

Post on 27-Jun-2020

3 views 0 download

Transcript of Investor - Jefferies Group · §Leading New York design house of modern luxury accessories and...

InvestorPresentation

June 20,2017

JefferiesGlobalConsumerConference

FairDisclosure

Statements in this presentation which are not historical in nature are forward-looking

statements. Although we believe that our plans, intentions and expectations reflected in

such forward-looking statements are reasonable, we can give no assurance that such plans,

intentions or expectations will be achieved. You should not rely on forward-looking

statements because actual events or results may differ materially from those indicated by

these forward-looking statements as a result of a number of important factors. These

factors include, but are not limited to, the risks and uncertainties discussed under “Forward

Looking Statements” and "Risk Factors" in Inter Parfums' Annual Report on Form 10-K and

the reports Inter Parfums files from time to time with the SEC. Inter Parfums undertakes no

duty to update the information contained in this presentation.

2

InvestmentHighlights

3

§ Global marketer of prestige perfumes and beauty productswith a portfolio of well-recognized fashion brands, bothlicensed and owned outright

§ Large and attractive industry

§ Preferred partner> Creative product development> Brand building expertise> Global distribution

§ Multi-pronged growth strategy> Continue to grow existing fragrance brands> Extend existing brands into new categories> Acquire new brands

GlobalMarketerofBeautyProducts

4

EUROPEANOPERATIONS U.S.OPERATIONS

NetSales($inmillions)

*ExcludesBurberrybrandsales

5

$353*

$433*

$499$469

$521$550-$560

2012 2013 2014 2015 2016 2017 (EST)

TrackRecordofPerformance

6

§ Morethan100yearoldluxurybrand,knownforwritinginstruments,watches,leathergoods,andjewelry

§ Ourlargestbrandwith2016salesof$121.7million

§ 2016:LegendSpirit,rankedintop5U.S.newproductlaunches

§ Holiday2017:LegendNight

7

§ Bestknownforluxuryshoes,handbagsandaccessories

§ Oursecondlargestbrandwith2016salesof$90.4million

§ Winter2017:> Jimmy Choo L’Eau> Jimmy ChooMan Ice

8

§ Frenchfashionhousefoundedin1889knownforluxury&elegance

§ Thirdlargestbrandwith2016salesof$62.0million

§ 2017:ModernPrincess,anewwomen’sscent,rollingoutinternationally

§ 2017/2018: Newinterpretationofbrand’spremierscent,Eclatd’Arpege

§ Globalluxurybrandinthehighendsegmentofmen’sfashion

§ Winter2017:DesireExtreme, anewmen’sscent

§ Holiday2017:IconRacing

9

§ Morethan150yearoldluxurybrand,bestknownforjewelry

§ Winter2017: GalerieOlfactive,asix-scentluxurycollectionlaunching

10

§ IPAR’sfirstfragrancelicenseforaluxuryjewelrybrand

§ 2017:AnadditiontoCollectionExtraordinaire

11

§ Iconicbrandinboththeworldoffashionandfragrance

§ 2017/2018:BellaBlanca,a newwomen’sscent

12

§ AnnaSuifashionsoldin300salesoutletsin30countries,especiallypopularinAsia

§ Firsthalf2017:> L’ Amour Rose Extension> Fairy Dance Extension

§ Secondhalf2017:> Fantasia, new fragrance family

13

§ Luxuryfashionhouse,establishedin1925

§ AcquiredRochasbrandinMay2015

§ Spring2017:MademoiselleRochas,anewwomen’sscent

14

§ LeadingNewYorkdesignhouseofmodernluxuryaccessoriesandlifestylecollections

§ Mid-year2016:> Women’sscentlaunched

> Rankedintop5newproductlaunchesinU.S.

§ Fall2017:CoachforMen,a newmen’sscent

15

§ Specialtyretailerofhigh-quality,casualapparelformen,womenandkidswithanactive,youthfullifestyle

§ Spring2017:FirstInstinct,anewscentforwomen,followingsuccessfullaunchofmen’sscentin2016

16

17

§ SpecialtyretailerofSouthernCalifornia,surfcultureinspiredcasualweartargetingtheteenmarket

§ Spring2017:Wave 2,duoformen&women

18

NicheBrands

LargeandAttractiveIndustry

2011– 2016SALESCAGRFragranceIndustry:-1.3%

IPAROngoingBrands:11%

19

FragranceIndustry:Worldmarketsizeapprox.$46 billion*

2016GlobalFragranceIndustrySalesbyGeography

*Estimates

EUROPE42%

ASIAPACIFIC22%

AMERICAS36%

PreferredPartner

§ Oursizeenablesustoworkcloselywithbrandownersintheproductdevelopmentprocess

§ Creativeproductdevelopmentthatcapturestheessenceofabrand

§ Over30yearsofknowledgeandexperiencewithaproventrackrecordofproductlaunches

§ Globaldistribution

§ Financialstrengthtosupportglobalproductlaunchesandadvertisingcampaigns

20

DemonstratedSuccess

21

59

83

11098

122

2012 2013 2014 2015 2016

FragranceSales(inmillionsof$)

52

72 7992 90

2012 2013 2014 2015 2016

2016SALESBYREGION

22

§ Ourproductsaredistributedinover100countriesthroughbetterdepartmentstoresandperfumeries

§ Company-owneddistributioninUnitedStates,France,Germany,ItalyandSpain

INTERPARFUMS,INC.

ASIAPACIFIC26%

ASIAPACIFIC24%

AMERICAS38%

EUROPE38%

Multi-ProngedGrowth

23

2017LAUNCHESAbercrombie&Fitch(W)

AnnaSui(W)

Boucheron(W)

Coach(M)

JimmyChooExtensions(W&M)

KarlLagerfeld(M&W)

Lanvin (W)

OscardelaRenta (W)

Rochas (W)

VanCleef&Arpels Extension(W)

Multi-ProngedGrowthExtendintoNewCategories

24

§ Lanvin:supplyingSofitel,thefivestarhotelchainwithmorethan120properties

§ OscardelaRenta:supplying PeninsulaHotels,10properties

TRAVELAMENITIES

Multi-ProngedGrowthAcquisitions&NewLicenses

1997:S.T.Dupont

2005:BananaRepublic

2009:JimmyChoo

2010:Boucheron

2012:KarlLagerfeld

2013:ShanghaiTang

2013:OscardelaRenta

2014:Hollister

2015:Rochas

2007:VanCleef&Arpels

2008:bebe

1998:PaulSmith

2010:Montblanc

2004:Lanvin

2011:AnnaSui

2011:Repetto

2012:Dunhill

2013:AgentProvocateur

2014:Abercrombie&Fitch

25

2017

2015:Coach

FirstQuarterEndedMarch31,2017

26

($inmillions,exceptpershare data) 2017 2016 Change

NetSales $143.1 $111.5 +28.3%

GrossProfit $90.1 $71.3 +26.3%

GrossMargin 63.0% 63.9% - 90bps

OperatingIncome $26.2 $17.5 +49.3%

OperatingMargin 18.3% 15.7% +260bps

EBITDA $28.8 $19.9 +44.9%

EBITDAMargin 20.1% 17.8% +230bps

NetIncome(IP) $13.4 $7.3 +83.6%

NetIncomeMargin(IP) 9.3% 6.5% +280bps

DilutedEPS(IP) $0.43 $0.24 +79.2%

StrongBalanceSheet

§ WorkingCapital:$344million

§ Cash,CashEquivalentsandShort-TermInvestments:$226million

§ WorkingCapitalRatio:over3.3to1

§ Long-TermDebt:$70.2million

§ AnnualDividend:$0.68pershare,Yield1.95%

§ LowCapex:$4.8millionin2016

As of 3/31/17

27

Outlook

§ Generate10+%internalrevenuegrowth§ EPSgrowthof12%-15%§ Futureacquisitions,ifany,willbeadditive

Long-TermTargets

28

Allguidanceassumes$remainsatcurrentlevels

§ Netsales $550- $560million§ DilutedEPS $1.20- $1.24

Guidance2017

Summary

§ Globalmarketerofprestigeperfumesandbeautyproductswithaportfolioofwell-recognizedfashionbrands,bothlicensedandownedoutright

§ Large and attractive industry

§ Preferred partner> Creative product development> Brand building expertise> Global distribution

§ Multi-pronged growth strategy> Continue to grow existing fragrance brands> Extend existing brands into new categories> Acquire new brands

29

JefferiesGlobalConsumerConference

InvestorPresentation

June 20,2017