Investor Presentation - INTER PARFUMS Inc. · Jimmy Choo. Paul Smith. Montblanc. S.T. Dupont....

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Burberry. Lanvin. Van Cleef & Arpels. Jimmy Choo. Paul Smith. Montblanc. S.T. Dupont. Nickel. The Gap. Banana Republic. Brooks Brothers. bebe. New York & Co. Anthropologie Investor Presentation April 2010

Transcript of Investor Presentation - INTER PARFUMS Inc. · Jimmy Choo. Paul Smith. Montblanc. S.T. Dupont....

Page 1: Investor Presentation - INTER PARFUMS Inc. · Jimmy Choo. Paul Smith. Montblanc. S.T. Dupont. Nickel. The Gap. Banana Republic. Brooks Brothers. bebe. New York & Co. Anthropologie

Burberry. Lanvin. Van Cleef & Arpels. Jimmy Choo. Paul Smith.

Montblanc. S.T. Dupont. Nickel. The Gap. Banana Republic.

Brooks Brothers. bebe. New York & Co. Anthropologie

Investor Presentation April 2010

Page 2: Investor Presentation - INTER PARFUMS Inc. · Jimmy Choo. Paul Smith. Montblanc. S.T. Dupont. Nickel. The Gap. Banana Republic. Brooks Brothers. bebe. New York & Co. Anthropologie

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Fair Disclosure

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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Investment Highlights

Global marketer of prestige perfumes and beauty products with a portfolio of well-recognized fashion brands, both licensed 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

Specialty retail partnerships established for this high growth beauty channel

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Distinctive, upscale-market and classic image, with an undeniable

international cachet

10% five-year compounded annual growth rate in net sales

Brands include Burberry, Burberry Week End, Burberry Touch, Burberry Brit, Burberry London and Burberry The Beat

Launch underway – new Burberry Sport fragrance and color

cosmetics

Burberry

Burberry Week End

Burberry Touch

Burberry Brit

Burberry Burberry London

Burberry The Beat

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Burberry

Burberry Sport for women Burberry Sport for men

Now launching

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French fashion house founded in 1889 known for luxury & elegance

Fragrances: Arpège, Eclat d‟Arpège, Arpège Pour Homme, Rumeur and Jeanne Lanvin

Lanvin L‟ Homme Sport launched in Q1‟09 featuring tennis star, Rafael Nadal

2010: A new women‟s fragrance

Lanvin

Arpège Eclat d‟ Arpège

Rumeur Jeanne LanvinLanvin L‟Homme Sport

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Van Cleef & Arpels

IPAR‟s first luxury jewelry brand

Fragrances include Tsar, First, Feerie and Collection Extraordinaire

2010: A new women‟s fragrance Oriens & a new men‟s fragrance

Tsar First FeerieCollection

ExtraordinaireOriens

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British designer with modern style which combines elegance,

inventiveness and a sense of humor

Fragrances include Paul Smith, Paul Smith Extreme, Paul Smith London, Paul Smith Story, Paul Smith Rose and Paul Smith Man

2010 : A new women‟s fragrance

Paul Smith

Paul SmithPaul SmithExtreme

Paul SmithStory

Paul SmithRose

Paul SmithLondon

Paul SmithMan

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Manufacturer of luxury writing instruments and accessories

Fragrances include Essence Pure, L‟Eau de S.T. Dupont, Noir, Blanc, Passenger , and Rose

2010: A new women‟s fragrance

S.T. Dupont

L‟Eau de S.T. DupontEssence Pure Noir Rose Blanc Passenger

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Jimmy Choo

12 year exclusive licensing agreement effective Jan. 2010

Best known for luxury shoes, handbags and accessories

Products sold in 100 Jimmy Choo

boutiques in 32 countries, plus

prestigious department and

specialty stores

First new fragrance under

development for launch in early

2011

JIMMY CHOO

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Montblanc

10.5 year exclusive license effective 7/1/10

More than 100 year old luxury brand,

known for writing instruments, watches,

leather goods, and jewelry

Brand sales in 70 countries through a

network of more than 350 boutiques

First new fragrance to launch in 2011

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Nickel•

Range of men‟s skin care products for

the face and body is sold through

prestige department and specialty

stores primarily in France, Western

Europe and the U.S.

Nickel spas in Paris, New York and

London

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Large and Attractive Industry

Fragrance Industry

World market size approximately $27 billion

Nearly 300 new product launches

–„09 Global Fragrance Sales by Geography

2005 – 2009 Sales CAGR

Fragrance Industry: 3%

Inter Parfums: 10.6 %

Asia Pacific 19%

Americas 32%

Europe 49%

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Preferred Partner

Our size enables us to work closely with brand

owner in the product development process

Creative product development that captures

the essence of a brand

Brand building expertise and targeted

geographic market launches that maximize

impact

Ability to grow portfolio brands through new

product development

Over 25 years of knowledge and experience

with a proven track record of product

launches

Global distribution

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146.3 163.2 182.0210.0

248.4 232.0

050

100150200250300

2004 2005 2006 2007 2008 2009

Demonstrated Success

($ in millions)

Burberry Brand Sales

„95

Burberry Burberry

Weekend

„97

Burberry

TouchBurberry

Brit

Burberry

London

Burberry

The Beat

Burberry

Sport

„00 ‟03-‟05 „06 „08 „10

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Global Distribution Footprint

Our products are distributed in over 120 countries through better department stores, perfumeries and specialty retail stores

Inter Parfums, Inc.

2009 Sales by Region

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Multi-Pronged Growth

Burberry Sport fragrances (M&F)

Burberry cosmetics line (F)

VCA fragrances (F & M)

Lanvin fragrance (F)

Paul Smith fragrance (F)

S.T. Dupont fragrance (F)

2010 New Product Pipeline

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Multi-Pronged GrowthExtend into New Categories

Add new products such as skin care and cosmetics under

existing brands, i.e. we plan to introduce new skin care

products under the Burberry brand over the next few years

Explore other opportunities on the treatment side of the

beauty business, leveraging the expertise of our Nickel

team

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Multi-Pronged GrowthAcquisitions, Agreements and New Licenses

‘93 ‘10

April 2004:

Acquired

stake in Nickel

July 1997:

Signed S.T. Dupont

License Agreement

1993:

Signed Burberry

License Agreement

July 2005:

Signed Gap, Inc.

Agreement

January 2007:

Van Cleef & Arpels

Agreement

April 2007:

Signed New York &

Company Agreement

August 2007:

Acquired Lanvin

Brands

November 2007:

Brooks Brothers

Agreement

July 2008:

bebe stores, inc.

Agreement

Dec 1998:

Signed Paul Smith

License Agreement

October 2009:

Jimmy Choo

Agreement

January 2010:

Montblanc

Agreement

June 2004:

Signed Lanvin

License Agreement

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Fast Growing Specialty Retail Beauty

IPAR Product development, formulation,

packaging, manufacturing and inventory

management

GAP, Inc. Marketing, advertising and selling in its

North American stores

Gap, Inc. agreement marked IPAR‟s entry into specialty retail

Amended to include GAP Outlet Stores & Banana Republic Factory Stores

Amended to include international distribution through Gap and Banana Republic stores, select specialty and department stores outside U.S including duty-free and other travel retailers

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The Discover Collection

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Latest Additions Republic of Men & Republic of Women

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DomesticLaunch inApril 2009

Eau de Toilette for Women

International Distributionin Fall 2009

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International Launch Highlights

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NORTH AMERICAN DISTRIBUTION: Direct sales to over 200 bebe stores in U.S., Puerto Rico, U.S. Virgin

Islands and Canada

Signature fragrance launched in 2009 at bebe stores and at 300+ Dillard‟s

stores

Color cosmetics and nail color

bebe Sheer, new fragrance in 2010

LICENSE FOR INTERNATIONAL DISTRIBUTION:

Specialty retail, including licensed bebe stores and

department stores internationally begun in fall 2009

Potential for duty-free and travel retail

bebe

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U.S. DISTRIBUTION:

Direct sales to over 200 Brooks Brothers stores in U.S.

Brooks Brothers New York launched in November 2008

Black Fleece, new for men and women, in fall 2009

Miss Madison, new scent for 2010

Three new scents for Black Fleece – Red, White and Blue

LICENSE FOR INTERNATIONAL DISTRIBUTION:

Specialty retail, including 120 Brooks Brothers stores and department

stores including duty-free and travel retail

Brooks Brothers New York international launch in spring 2009 and

Black Fleece in 2010

Brooks Brothers

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Inter Parfums selected to create new fragrance

line for stores, internet sales and catalog

Special fragrance collection including home

fragrance for holiday 2010

137 stores in U.S., Canada and first store in

Europe

A unit of Urban Outfitters

NEW FRAGRANCE LINE

COMING …..

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591 stores in 44 states targeting fashion-conscious,

value-sensitive women between the ages of 25 and 45

Lip gloss and lip balm 2008

New York & Company fragrance

introduced in late 2009

New York & Company

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$17.7

$23.8 $23.8 $22.4 $23.5

$0

$5

$10

$15

$20

$25

$30

2006 2007 2008 2009 2010* (est)

Track Record of Performance

Net Sales ($ in millions) Net Income ($ in millions)

* Assumes $ remains at current levels

$321.1$389.6

$446.1$409.5

$440.0

$0

$100

$200

$300

$400

$500

$600

2006 2007 2008 2009 2010* (est)

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Year Ended December 31

($ in millions, except per share data) 2009 2008

%

change

Net Sales $409.5 $446.1 (8%)

Gross Profit $234.2 $254.2 (8%)

Gross Margin 57.2% 57.0% 20 bps

Operating Income $44.8 $51.0 (12%)

Operating Margin 10.9% 11.4% (50 bps)

EBITDA $55.8 $60.9 (8%)

EBITDA Margin 13.6% 13.7% (10 bps)

Net Income (IP) $22.4 $23.8 (6%)

Net Income Margin (IP) 5.5% 5.3% 20 bps

Diluted EPS (IP) $0.74 $0.77 (4%)

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Strong Balance Sheet

Working Capital: $198.0 Million

Current Ratio: almost 2.9 to 1.0

Cash and Cash Equivalents: Over $100 million

Long-Term Debt: $17.9 Million

Annual Dividend: $0.26 per share

Low Capex: Generally Less than 1% of Sales

As of 12/31/09

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Outlook

Sales of $409.5 million

Net income of $22.4 million (attributable to Inter Parfums, Inc.)

Diluted EPS of $0.74

Long-Term2009

*Assumes $ remains at current levels

Generate 10+% internal revenue growth

EPS growth of 12%-15%

Future acquisitions, if any, will be additive

2010*

Sales of $440 million

Net income of $23.5 million (attributable to Inter Parfums, Inc.)

Diluted EPS of $0.78

Page 34: Investor Presentation - INTER PARFUMS Inc. · Jimmy Choo. Paul Smith. Montblanc. S.T. Dupont. Nickel. The Gap. Banana Republic. Brooks Brothers. bebe. New York & Co. Anthropologie

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Summary

Global marketer of prestige perfumes and beauty products with a portfolio of well-recognized fashion brands, both licensed 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

Specialty retail partnerships established for this high growth beauty channel

Page 35: Investor Presentation - INTER PARFUMS Inc. · Jimmy Choo. Paul Smith. Montblanc. S.T. Dupont. Nickel. The Gap. Banana Republic. Brooks Brothers. bebe. New York & Co. Anthropologie

Burberry. Lanvin. Van Cleef & Arpels. Jimmy Choo. Paul Smith.

Montblanc. S.T. Dupont. Nickel. The Gap. Banana Republic.

Brooks Brothers. bebe. New York & Co. Anthropologie

Investor Presentation April 2010