2007 Results - · PDF fileSTRATEGY & OBJECTIVES. Annual Results ... Ceylon tea: A wink to the...

2007Results

Annual ResultsInter Parfums – March 2008 2

Contents

2007 year in reviewAnnual salesAnnual earnings2008 launchesOutlook


Satisfactory full-year performance overall

Continued sales growth€242.1 million at current exchange rates (+12%)€249.3 million at constant exchange rates (+15%)

Further earnings growthOperating profit: €31.8 million (+9%)Net income: €20.2 million (+8%)

Acquisition of Lanvin brands and trademarks

First contribution of Van Cleef & Arpels and Roxy fragrances

Stake in Nickel increased to 100%

Extension of the Quiksilver license agreement to men’s fragrances

2007 year in review


Market and operating challenges2007 year in review

A very unfavourable euro/dollar exchange rate trend (1.32 -> 1.45)

Complications experienced in integrating Van Cleef & Arpels fragrances

A slower than expected start up of the European distribution subsidiaries


Burberry

2007 sales: €153 million+7% at current exchange rates+9% at constant exchange rates

Gains by historic lines

Good performance by the Burberry London line

Success of the Burberry Summer seasonal line

ANNUAL SALES


Burberry WeekendANNUAL SALES


Burberry SummerANNUAL SALES


2007 sales: €33.3 million (-3%)

Sales on budget

Robust growth of the Éclat d’Arpège line (+16%)

Mixed results for the Rumeur line

LanvinANNUAL SALES


2007 sales: €18 million (+2%)

Sales more robust in the second half (+13%)

Strength of the Paul Smith Extrême line

Excellent initial results for the Paul Smith Rose line (€3.5 million)

Paul SmithANNUAL SALES


Paul Smith RoseANNUAL SALES


2007 sales: €11.9 million

A very satisfactory performance despite integration challenges

Streamlining the portfolio

A complete revamping of international distribution

Development of several lines

Van Cleef & ArpelsANNUAL SALES


Van Cleef & ArpelsANNUAL SALES


2007 sales: € 11.1 million (+10% )

Sales exceeding the initial budget (+23%)

Double-digit growth of the historic lines

Good performances by the lines S.T. Dupont Noir and S.T.Dupont Blanc

Sales concentrated particularly in the Middle East and Russia

S.T.DupontANNUAL SALES


S.T.Dupont BlancANNUAL SALES


ANNUAL SALES

2007 sales: €6.7 million

Launch of Roxy, the first fragrance line for women

Initial market responses to date mixed

Roxy


Roxy ANNUAL SALES


2007 sales: €3.9 million (-5%)

Launch of the women’s fragrance line C’est la fête (€2 million)

France accounting for 35% of the brand’s sales

Christian LacroixANNUAL SALES


Christian Lacroix C’est La FêteANNUAL SALES


2007 sales: €3.3 million (-19%)

A downturn in sales reflecting the discontinuation of the Eau Maximum and Station Service lines

Consolidation of the Face and Body lines

Work launched to ensure visual harmonization for packaging

NickelANNUAL SALES


Nickel Super SpeedANNUAL SALES


Sales by brandANNUAL SALES

Burberry

Lanvin

Paul Smith

Van Cleef & Arpels

S.T. Dupont

Quiksilver/Roxy

Christian Lacroix

Nickel

Other

Total

152.9

33.3

18.0

11.9

11.1

6.7

3.9

3.3

1.1

242.1

143.3

34.4

17.7

-

10.1

-

4.1

4.1

2.6

216.2

+7%

-3%

+2%

na

+10%

na

-5%

-19%

ns

+12%

(€ millions) 2006 2007 07/06


Sales by brandANNUAL SALES

Burberry

Lanvin

Paul Smith

Van Cleef & Arpels

S.T. Dupont

Quiksilver/Roxy

Christian Lacroix

Nickel

Other

Total

152.9

33.3

18.0

11.9

11.1

6.7

3.9

3.3

1.1

242.1

158.5

33.0

18.0

12.0

9.0

6.0

4.0

5.0

(0.5)

245.0

-3%

-

-

-

+23%

ns

-

-34%

ns

-1%

(€ millions) 2007 Budget 2007 Actual Act07/Bud07


NORTH AMERICA 20% (24%)

WESTERN EUROPE34% (30%)FRANCE

9% (8%)

MIDDLE EAST8% (8%)

AFRICA1 % (1 %)

EASTERN EUROPE9% (8%)

ASIA13% (14%)

SOUTH AMERICA 6% (7%)

Sales by region2007 / 2006

ANNUAL SALES


Sales by currencyANNUAL EARNINGS

Yen2 %

(2%)

Euro54%(53%)US dollar

33%(34%)

Pounds sterling10%

(9%)


Sales by currencyANNUAL EARNINGS

Devise Average exchange rate Average exchange rate Currency2006 2007 effect

€ / $

€ / £

€ / Yen

1.264

0.70

144.3

1.368

0.69

170.4

-€6.5mn

+€0.3mn

-€0.9mn

A net impact on sales of - €7.2 million

Sales of €249.3 million at constant exchange rates

A net impact of 3.3 points of growth on sales


+ 12%

2006sales

€ 216.2mn

2007sales

€ 242.1mn+ 3.6%

JointVenture

Price/ Volumeeffect

+ 11.7%

Analysis of 2007 sales growthANNUAL EARNINGS

Currency effect

- 3.3%


Income statement highlightsANNUAL EARNINGS

millions of euros 2007 07/06

SalesGross profit

% of salesSelling expenses

Administrative expenses

Current operating income% of sales

Other operating income and expenses

Operating profit% of sales

216.2123.9

57.3%(88.2)

(6.5)

29.213.5%

-

29.213.5%

242.1147.4

60.9%(106.7)

(8.1)

32.613.5%

(0.8)

31.813.1%

+12%+19%

+ 21%+24%

+12%

ns

+9%


Balance sheet highlightsANNUAL EARNINGS

millions of euros 2007 07/06

Operating profit% of sales

Net financial expenseIncome taxesMinority interests

Net income% of sales

29.213.5%

0.41(10.6)

0.2

18.78.6%

31.813.1%

(0.8)(11.2)

0.4

20.28.3%

+9%

ns+5%

ns

+8%


Balance sheet highlights (31-12-07/31-12-06)

ANNUAL EARNINGS

Shareholders’ equity133.9 (115.8)

Non-current liabilities40.5 (26.2)

Current liabilities92.8 (81.2)

Liabilities

Cash56.1 (44.1)

Current assets(excluding CCE) 138.4 (127.4)

Non-current assets72.7 (51.7)

Assets


Cash flow highlightsmillions of euros 2007

Cash flow

Inventories

Trade receivables

Other receivables

Trade payables

Other payables

Change in working capital

Net cash from operating activities

21.2

(8.2)

(15.6)

(0.8)

10.2

11.9

(2.5)

18.7

18.7

(16.0)

6.6

(0.5)

18.0

(2.2)

5.9

24.6

ANNUAL EARNINGS


Cash flow highlightsmillions of euros 2007

Net cash from investing activities

Net cash from financing activities

Change in cash

Opening cash and cash equivalents

Closing cash and cash equivalents

(4.4)

(4.6)

9.7

34.4

44.1

(42.9)

30.3

12.0

44.1

56.1

ANNUAL EARNINGS


Gross marginConsolidation of the gross margin of joint ventures (mechanical positive effect)Improvement in the product mix (positive effect)Price increases (positive effect)Effective management of costsEuro/dollar exchange rate (negative effect)

Operating profit Exceeding 2007 year-end guidanceTargeted marketing and advertising investmentsAn operating margin that remains at high levels

Analysis of resultsANNUAL EARNINGS


Dividend€0.38 per share+11.4% over 200622.8 % of 2007 consolidated incomeA total distribution of €4.6 millionDividend payment date: May 6, 2008

Bonus share issueFor the ninth consecutive year1 new share for every 10 shares heldProgrammed for early June 2008

Dividend and bonus share issueANNUAL EARNINGS


ANNUAL EARNINGS

Bonus share issue on June 20, 20071 new share for every 10 shares held

Number of shares at 31 December, 200712,100,367

Number of stock options outstanding at December 31, 2007536,857

Capital


2008 first-quarter salesApril 24, 2008

2008 General MeetingApril 25, 2008 - Pavillon Gabriel, Paris (2:00 p.m.)

2008 first-half salesEnd of July 2008

2008 first-half earningsSeptember 8, 2008

2008 financial calendarANNUAL EARNINGS

(Press releases are published after the close of trading of the Paris stock exchange)


CONTENTS

2007 year in reviewAnnual salesAnnual earnings2008 launchesOutlook


Van Cleef & Arpels: First Premier Bouquet (women’s fragrance)

Lanvin: Rumeur 2 Rose (women’s fragrance)

Nickel: Silicon Valley by night (skincare)

Roxy: Roxy Love (women’s fragrance)

Quiksilver: Sun Energy (suncare)

Burberry: New Burberry Summer (men’s and women’s fragrance)

Burberry: Burberry The Beat (women’s fragrance)

Spring2008 launches


First Premier Bouquet2008 launches


Lanvin Rumeur 2 Rose2008 launches


Nickel Silicon Valley2008 launches

Harmonisation of product lines

Face Range

Silicon Valley Range

Body Range

2008 Gift Sets

Spotless Pack Réf.NK2203107

Pop Art Pack ! Réf.NK2203107

Christmas Pack Réf.NK2203107

Let’s Play ! Réf.NK2203107


Roxy Love2008 launches


Quiksilver SunEnergy2008 launches


Burberry Summer(New communications campaign)

2008 launches


MARCH 2008

NEW LAUNCH


Capitalize on the commercial and media success of Burberry fashion apparel and accessory lines

Continue to strengthen the link between Burberry fragrances and fashion lines

Create a unique fragrance concept in relation to the existing portfolio

Enrich our offering with a product destined for a more avant-garde customer segment

STRATEGY & OBJECTIVES


A fragrance for a certain younger segment with a mix of Britishestablishment and an avant-garde positioning.

Representing a mix of establishment, tradition and family with rebellion, individuality and independence.


BRITISH HERITAGE

MODERNITY

REBELLION

AVANT-GARDE


Just like the Trench Coat or the latest Manor bag that have become symbols of the brand

Create the

“must have”BURBERRY product in the fragrance universe


AVANT-GARDE

BRITISH TRADITION

ENERGY

ATTITUDE


Ceylon tea: A wink to the British origin of the brand. Its French citrus notes mixed with accents of iris create a sparkling scent.

Iris: Jewel of the perfumery tradition, the iris has a voluptuous and sensuous bouquet that gives the fragrance a powdery aroma.

Bluebell: Offering a green floral note that is luminous and fluid. It adds a natural elegance and a touch of mischievousness.

BERGAMOT

MANDARINE

PINK PEPPER

CARDAMOM

CEYLON TEA

IRIS

WHITE MUSK

VETIVER

CEDARWOOD

BLUEBELL

A SPARKLING WOODY FLORAL SCENT


A modern design with a very distinctive look in relation to our existing lines

A link recalling its filiation with the fashion universe of the Burberry brand

An original packaging, intensifying the discovery of the bottle

A modern and graphic interpretation of the famous Burberry Tartan

THE BOTTLE


Transposing through an image the ideas and associations of the concepts Energy / Fashion / Avant-garde

Proposing a very forceful and unmistakably Burberry visual

ADVERTISING CAMPAIGN


AN EXCEPTIONAL LEVEL OF MEDIAEXPOSURE


IN EXCLUSIVITYHOUSE OF FRASER UK

No. 3 IN EXCLUSIVITY AT LA BAIE CANADA

IN THE 1ST THREE WEEKS OFNORDSTROM & SAKS LAUNCH

+60% vs. LONDON AND +15% vs. BRIT

No. 2 AT BLOOMINGDALE UPON LAUNCH

No. 1 IN EXCLUSIVITY AT SEPHORA

CHAMPS ELYSEES


IN EXCLUSIVITY AT PRINTEMPS HAUSSMANNMARCH 10 to 23, 2008


Lanvin: new fragrance line (women)

Van Cleef & Arpels: new fragrance line (women)

S.T. Dupont: new fragrance line (for men & and women)

Quiksilver: first fragrance line (men)

Fall2008 launches


Lanvin2008 launches

Luxury, elegance, femininity…

The heritage of Jeanne Lanvin finds its

expression season after season, in constantly

renewed contemporary and rich forms,

conveying all its meaning, through the

successive creations born from the imagination

and talent of Alber Elbaz


Lanvin2008 launches

he world

of enchantment of Van Cleef & Arpels

Titania , the Queen of the Ferries, Peaseblossom, Cobweb, Moth, Mustardseed…

Incarnation of mischievous and sensual femininity, fairies have always haunted the Van Cleef & Arpels universe.

They reign over the plant world of the jeweller, a magical and enchanted universe inhabited by butterflies, dragonflies and birds of paradise.

Captured mid-flight with their ethereal grace, these ferries with diamond faces form sumptuous and spellbinding jewellery.

he world


In 2004, the design house rendered a magnificent homage to ferries through its Midsummer Nights Dream high jewellery collection.

In response to its enormous success, the jeweller multiplied representations, including for Fine Watchmaking and in the internal design of its boutique of Place Vendôme.

Today more than ever, the Fairy constitutes a signature symbolof the Van Cleef & Arpels brand. the most exquisite illustration of its femininity, grace and legendary glamour.


he world

he newEnchanted fragrance of Van Cleef & Arpels

sublimepreciousluxuriousextraordinary

mischievousboldoriginalcreative

magicalcaptivatingastonishingenchanting

glamorousgracefuldelicateultra-feminine


A high-quality launch plan

Positive early-2008 year trends in most markets

A balanced geographical sales mix

Expanding positions in new growth markets

Significant marketing and advertising investments

2008OUTLOOK


2008OUTLOOK

Burberry

Lanvin

Paul Smith

Van Cleef & Arpels

S.T. Dupont

Quiksilver/Roxy

Christian Lacroix

Nickel

Other

Total

165.0

35.0

18.0

16.0

10.0

10.0

2.5

3.5

-

260.0

152.9

33.3

18.0

11.9

11.1

6.7

3.9

3.3

1.1

242.1

+8%

+5%

-

+34%

- 10%

+49%

-36%

+6%

ns

+ 7%

millions of euros 2007 2008 target 08/07


Fall 2007Average exchange rates: € / $ : 1.45 and € / £: 0.74Sales at constant exchange rates of €265 million (+9.6%)

Spring 2008 Average exchange rates: € / $: 1.54 and € / £: 0.765Sales at constant exchange rates of €270 million (+11.6%)

2008 targets maintained despite euro trendOUTLOOK


Russia4th largest Group market in 20072007 sales: €15.8 million 2007 sales growth: 11%6.5% of total Group sales

New growth market highlightsOUTLOOK


China6th largest Group market in 20072007 sales: €9.5 million2007 sales growth: 10%4 % of total Group sales in 2007



India27th Group market in 20072007 sales: €1.5 million 0.6% of total Group sales in 2007



2007Results

2007 Results - · PDF fileSTRATEGY & OBJECTIVES. Annual Results ... Ceylon tea: A wink to the...

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