Investor Presentation - INTER PARFUMS Inc. · Jimmy Choo. Paul Smith. Montblanc. S.T. Dupont....
Transcript of Investor Presentation - INTER PARFUMS Inc. · Jimmy Choo. Paul Smith. Montblanc. S.T. Dupont....
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
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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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A Global Marketer of Beauty Products
European Operations
Prestige Fragrances
U.S. Operations
Specialty Retail
Mass Market
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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
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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
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