Investor - Jefferies Group · §Leading New York design house of modern luxury accessories and...
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Investor Presentation June 20, 2017 Jefferies Global Consumer Conference
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.
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InvestmentHighlights
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§ 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
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EUROPEANOPERATIONS U.S.OPERATIONS
NetSales($inmillions)
*ExcludesBurberrybrandsales
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$353*
$433*
$499$469
$521$550-$560
2012 2013 2014 2015 2016 2017 (EST)
TrackRecordofPerformance
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§ Morethan100yearoldluxurybrand,knownforwritinginstruments,watches,leathergoods,andjewelry
§ Ourlargestbrandwith2016salesof$121.7million
§ 2016:LegendSpirit,rankedintop5U.S.newproductlaunches
§ Holiday2017:LegendNight
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§ Bestknownforluxuryshoes,handbagsandaccessories
§ Oursecondlargestbrandwith2016salesof$90.4million
§ Winter2017:> Jimmy Choo L’Eau> Jimmy ChooMan Ice
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§ Frenchfashionhousefoundedin1889knownforluxury&elegance
§ Thirdlargestbrandwith2016salesof$62.0million
§ 2017:ModernPrincess,anewwomen’sscent,rollingoutinternationally
§ 2017/2018: Newinterpretationofbrand’spremierscent,Eclatd’Arpege
§ Globalluxurybrandinthehighendsegmentofmen’sfashion
§ Winter2017:DesireExtreme, anewmen’sscent
§ Holiday2017:IconRacing
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§ Morethan150yearoldluxurybrand,bestknownforjewelry
§ Winter2017: GalerieOlfactive,asix-scentluxurycollectionlaunching
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§ IPAR’sfirstfragrancelicenseforaluxuryjewelrybrand
§ 2017:AnadditiontoCollectionExtraordinaire
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§ Iconicbrandinboththeworldoffashionandfragrance
§ 2017/2018:BellaBlanca,a newwomen’sscent
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§ AnnaSuifashionsoldin300salesoutletsin30countries,especiallypopularinAsia
§ Firsthalf2017:> L’ Amour Rose Extension> Fairy Dance Extension
§ Secondhalf2017:> Fantasia, new fragrance family
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§ Luxuryfashionhouse,establishedin1925
§ AcquiredRochasbrandinMay2015
§ Spring2017:MademoiselleRochas,anewwomen’sscent
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§ LeadingNewYorkdesignhouseofmodernluxuryaccessoriesandlifestylecollections
§ Mid-year2016:> Women’sscentlaunched
> Rankedintop5newproductlaunchesinU.S.
§ Fall2017:CoachforMen,a newmen’sscent
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§ Specialtyretailerofhigh-quality,casualapparelformen,womenandkidswithanactive,youthfullifestyle
§ Spring2017:FirstInstinct,anewscentforwomen,followingsuccessfullaunchofmen’sscentin2016
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§ SpecialtyretailerofSouthernCalifornia,surfcultureinspiredcasualweartargetingtheteenmarket
§ Spring2017:Wave 2,duoformen&women
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NicheBrands
LargeandAttractiveIndustry
2011– 2016SALESCAGRFragranceIndustry:-1.3%
IPAROngoingBrands:11%
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FragranceIndustry:Worldmarketsizeapprox.$46 billion*
2016GlobalFragranceIndustrySalesbyGeography
*Estimates
EUROPE42%
ASIAPACIFIC22%
AMERICAS36%
PreferredPartner
§ Oursizeenablesustoworkcloselywithbrandownersintheproductdevelopmentprocess
§ Creativeproductdevelopmentthatcapturestheessenceofabrand
§ Over30yearsofknowledgeandexperiencewithaproventrackrecordofproductlaunches
§ Globaldistribution
§ Financialstrengthtosupportglobalproductlaunchesandadvertisingcampaigns
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DemonstratedSuccess
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11098
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2012 2013 2014 2015 2016
FragranceSales(inmillionsof$)
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72 7992 90
2012 2013 2014 2015 2016
2016SALESBYREGION
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§ Ourproductsaredistributedinover100countriesthroughbetterdepartmentstoresandperfumeries
§ Company-owneddistributioninUnitedStates,France,Germany,ItalyandSpain
INTERPARFUMS,INC.
ASIAPACIFIC26%
ASIAPACIFIC24%
AMERICAS38%
EUROPE38%
Multi-ProngedGrowth
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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
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§ 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
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2017
2015:Coach
FirstQuarterEndedMarch31,2017
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($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:$4.8millionin2016
As of 3/31/17
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Outlook
§ Generate10+%internalrevenuegrowth§ EPSgrowthof12%-15%§ Futureacquisitions,ifany,willbeadditive
Long-TermTargets
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Allguidanceassumes$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
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JefferiesGlobalConsumerConference
InvestorPresentation
June 20,2017
