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Annual ResultsInter Parfums – March 2008 2
Contents
2007 year in reviewAnnual salesAnnual earnings2008 launchesOutlook
Annual ResultsInter Parfums – March 2008 3
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
Annual ResultsInter Parfums – March 2008 4
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
Annual ResultsInter Parfums – March 2008 5
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
Annual ResultsInter Parfums – March 2008 8
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
Annual ResultsInter Parfums – March 2008 9
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
Annual ResultsInter Parfums – March 2008 11
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
Annual ResultsInter Parfums – March 2008 13
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
Annual ResultsInter Parfums – March 2008 15
ANNUAL SALES
2007 sales: €6.7 million
Launch of Roxy, the first fragrance line for women
Initial market responses to date mixed
Roxy
Annual ResultsInter Parfums – March 2008 17
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
Annual ResultsInter Parfums – March 2008 19
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
Annual ResultsInter Parfums – March 2008 21
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
Annual ResultsInter Parfums – March 2008 22
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
Annual ResultsInter Parfums – March 2008 23
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
Annual ResultsInter Parfums – March 2008 24
Sales by currencyANNUAL EARNINGS
Yen2 %
(2%)
Euro54%(53%)US dollar
33%(34%)
Pounds sterling10%
(9%)
Annual ResultsInter Parfums – March 2008 25
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
Annual ResultsInter Parfums – March 2008 26
+ 12%
2006sales
€ 216.2mn
2007sales
€ 242.1mn+ 3.6%
JointVenture
Price/ Volumeeffect
+ 11.7%
Analysis of 2007 sales growthANNUAL EARNINGS
Currency effect
- 3.3%
Annual ResultsInter Parfums – March 2008 27
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%
Annual ResultsInter Parfums – March 2008 28
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%
Annual ResultsInter Parfums – March 2008 29
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
Annual ResultsInter Parfums – March 2008 30
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
Annual ResultsInter Parfums – March 2008 31
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
Annual ResultsInter Parfums – March 2008 32
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
Annual ResultsInter Parfums – March 2008 33
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 ResultsInter Parfums – March 2008 34
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
Annual ResultsInter Parfums – March 2008 35
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)
Annual ResultsInter Parfums – March 2008 36
CONTENTS
2007 year in reviewAnnual salesAnnual earnings2008 launchesOutlook
Annual ResultsInter Parfums – March 2008 37
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
2008 Gift Sets
Spotless Pack Réf.NK2203107
Pop Art Pack ! Réf.NK2203107
Christmas Pack Réf.NK2203107
Let’s Play ! Réf.NK2203107
Annual ResultsInter Parfums – March 2008 47
Burberry Summer(New communications campaign)
2008 launches
Annual ResultsInter Parfums – March 2008 49
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
Annual ResultsInter Parfums – March 2008 50
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.
Annual ResultsInter Parfums – March 2008 52
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
Annual ResultsInter Parfums – March 2008 54
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
Annual ResultsInter Parfums – March 2008 55
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
Annual ResultsInter Parfums – March 2008 57
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
Annual ResultsInter Parfums – March 2008 61
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
Annual ResultsInter Parfums – March 2008 62
IN EXCLUSIVITY AT PRINTEMPS HAUSSMANNMARCH 10 to 23, 2008
Annual ResultsInter Parfums – March 2008 63
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
Annual ResultsInter Parfums – March 2008 64
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
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
of enchantment of Van Cleef & Arpels
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.
of enchantment of Van Cleef & Arpels
he world
sublimepreciousluxuriousextraordinary
mischievousboldoriginalcreative
magicalcaptivatingastonishingenchanting
glamorousgracefuldelicateultra-feminine
Annual ResultsInter Parfums – March 2008 71
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
Annual ResultsInter Parfums – March 2008 72
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
Annual ResultsInter Parfums – March 2008 73
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
Annual ResultsInter Parfums – March 2008 74
Russia4th largest Group market in 20072007 sales: €15.8 million 2007 sales growth: 11%6.5% of total Group sales
New growth market highlightsOUTLOOK
Annual ResultsInter Parfums – March 2008 75
China6th largest Group market in 20072007 sales: €9.5 million2007 sales growth: 10%4 % of total Group sales in 2007
New growth market highlightsOUTLOOK
Annual ResultsInter Parfums – March 2008 76
India27th Group market in 20072007 sales: €1.5 million 0.6% of total Group sales in 2007
New growth market highlightsOUTLOOK