Large & MIDCAP Event October 3, 2013...Boucheron (2011 -> 2025) Balmain (2012 -> 2024) Repetto (2012...

Interparfums. Large & Midcap Event. October 3, 2013.

BALMAIN. BOUCHERON.JIMMY CHOO. KARL LAGERFELD. LANVIN. MONTBLANC. NICKEL. PAUL SMITH. REPETTO. S.T. DUPONT. VAN CLEEF & ARPELS.

LARGE & MIDCAP EVENTOCTOBER 3, 2013


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CONTENTS


CONTENTS

Interparfums

Brands

2013 H1 operating highlights

2013 H1 sales

2013 H1 results

2013 & 2014 targets

2013 H2 launches

2014 & 2015 launches

Stock market

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4

INTERPARFUMS


INTERPARFUMSInterparfums creates, manufactures and distributes prestige perfumes and cosmetics based on a portfolio of international brands

Under license agreements� S.T. Dupont (1997 -> 2016)

� Paul Smith (1998 -> 2017)

� Van Cleef & Arpels (2007 ->2018)

� Jimmy Choo (2010 -> 2021)

� Montblanc (2010 -> 2021)

� Boucheron (2011 -> 2025)

� Balmain (2012 -> 2024)

� Repetto (2012 -> 2025)

� Karl Lagerfeld (2012 -> 2032)

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Or proprietary brands� Lanvin (2007)


LICENSE AGREEMENT

6

License granting a right to use the brand

For a long-term period (10 years and more)

In exchange for meeting qualitative obligations…� Distribution network

� Number of launches

� Nature of advertising expenses

…and quantitative obligations� Royalties (procedures for calculation, amount and minimum commitment)

� Advertising expenses (budgets, amount and minimum commitment)


BUSINESS MODEL

7

A portfolio of high-quality brands

Sustained development based on a long-term focus

A creative and coherent marketing approach

International distribution with a balanced sales mix

Operating expenses targeted by brand and region

Tight cost controls

A highly professional team


Develop a portfolio of luxury brands in the universe of fragrances and cosmetics

Build a coherent and quality product offering in line with the image of each portfolio brand

Increase the number of and strengthen our operations in international markets

Develop a retail culture by cultivating relations with major retailers in France and, in particular, international markets

Explore all potential acquisitions in the fragrance universe and, more broadly, in the universe of luxury

LONG-TERM STRATEGY

8


BUSINESS

9

Creation� (Definition of the concept, brief designer...)

Manufacturing of the components� (Bottles, packaging, fragrance, …)


BUSINESS

Manufacturing of finished products� Packaging

Distribution (more than 100 countries and 20,000 points of sale)▪ In France on a direct basis through a network of points of sale:

▪ Integrated chains (Sephora, Marionnaud, Nocibé,…)

▪ Department stores (Printemps, Galeries Lafayette, Bon Marché,…)

▪ Traditional perfumeries

▪ In other countries through:▪ Subsidiaries

▪ Subsidiaries of major groups

▪ Independent agents

10


MARKET - COMPETITION

Worldwide cosmetics market: €156bn of which 12% for fragrances

Groups – license agreements� L’Oréal (Armani, Ralph Lauren, Yves Saint Laurent, Cacharel, Diesel,…)� P&G (Dolce Gabbana, Hugo Boss, Lacoste, Gucci,...)� Coty (Calvin Klein, Chloé, Cerruti, Balenciaga, Bottega Veneta,...)

� Puig (Paco Rabanne, Nina Ricci, Prada, Valentino,…)

Groups – proprietary brands� Lvmh (Dior, Guerlain, Kenzo, Givenchy, Bulgari)� Estée Lauder� Chanel� Clarins (Azzaro, Thierry Mugler)

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MILESTONES / STRATEGY

12

1982: Philippe Benacin & Jean Madar create Interparfums SA & Interparfums Inc

1988: Interparfums Inc. listed on NASDAQ

1989: Interparfums SA: Shift of strategy to the selective fragrance sector

1993: First Burberry license agreement

1995: Interparfums SA listed on the Second Marché of the Paris stock exchange

2004: Second Burberry license agreement - Lanvin license agreement

2006: Van Cleef & Arpels license agreement

2007: Acquisition of Lanvin brand names and international trademarks for class 3 fragrance products and make-up

2009: Jimmy Choo license agreement

2010: Montblanc license agreement

2011: Boucheron license agreement

2012: Balmain, Repetto and Karl Lagerfeld license agreements

2013: Discontinuation of the Burberry license agreement (03/31/13)


Philippe Benacin

Jean Madar Free float

Interparfums Inc.

(Nasdaq) Free float

Interparfums SA

(NYSE Euronext Paris)

46%

73%

54%

27%

2012 net sales: €492.3m2012 net income: €25.1m

2012 net sales: €445.5m2012 net income: €36.1m

Interparfums

UK

Interparfums

Germany

Interparfums

Spain

Interparfums

Italy

100%

Interparfums

Switzerland100%

13

Interparfums

Singapore

Interparfums

Luxury Brands

United States

51% 100%100% 100%51%

GROUP ORGANIZATION


14

29 3145

53 57

7789 93

125

157

194

216

242

265259

305

398

445

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Burberry

launch

Second Marché

S.T. Dupont

Paul Smith Nickel

Lanvin

New Burberry license

Van Cleef & Arpels

Lanvin trademark

acquisition

Jimmy Choo

Montblanc

Boucheron

Repetto

Balmain

Karl Lagerfeld

Sales multiplied by more than 14 in 17 years (€m)

SALES TRENDS: 1995-2012


15

2,7 2,34,7

6,88,4

11,012,9 13,7

19,1

24,225,9

29,2

31,8

34,333,7

42,2

46,3

56,8

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

TRENDS FOR OPERATING PROFIT: 1995-2012

Operating profit multiplied by 21 in 17 years (€m)


16

1.6 1.52.8

4.0 4.7

6.68.1 8.8

12.7

15.516.3

18.720.2

21.122.6

26.8

30.3

36.2

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Net income multiplied by more than 23 in 17 years (€m)

TRENDS FOR NET INCOME: 1995-2012


17

18 19 2230 35

4149 56

6882

98

116

134

154170

192

216

345

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

GROWTH IN SHAREHOLDERS’ EQUITY: 1995-2012Shareholders’ equity increased more

than tenfold in 17 years (€m)


18

-2 -1 1 711

813

2532

2

23

36

16-4

4657

17

208

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

TRENDS FOR NET CASH: 1995-2012

Net cash rarely negative over a 17 year period (€m)


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BRANDS


BALMAIN

An audacious ready-to-wear fashion brand

Collections with distinctive style for an elegant and glamorous woman

4 directly-owned and operated stores

A 12-year license agreement effective as of January 1, 2012

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BOUCHERON

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One of the world’s most prestigious jewelers

A sensual and feminine universe

A 15-year license agreement executed on January 1, 2010


JIMMY CHOO

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International luxury goods brand

High name recognition in the US and UK

Present in 30 countries / 400 points of sale

A 12-year license agreement executed in 2009


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The "King of Fashion", a designer of unrivaled talent and acclaim

A new fast-growing label with the launch of his new eponymous

"Karl" line

Upcoming opening of new concept store

KARL LAGERFELD


LANVIN

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One of the most beautiful French haute couture fashion housesApproximately 40 boutiques throughout the worldA 15-year license agreement executed in 2004Acquisition of brand name and trademarks in 2007 + termination of the license agreement


MONTBLANC

25

A creator of luxury writing instruments and accessories

Master craftsmanship of the highest standards

More than 350 stores throughout the world

A 10.5-year license agreement executed in 2010


26

A leading British fashion designer

Very well-established in the United Kingdom (40% of sales) and Asia

A brand present in 75 countries

A 10-year license agreement executed in 1998 and extended for 5 years

in 2007

PAUL SMITH


REPETTO

An iconic name for all dancers

A worldwide brand pioneering exclusive products

and the most technically advanced in the universe of dance

More than 35 stores worldwide

A 13-year license agreement effective as of January 1, 2012

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A master craftsman of precious metals, lacquer and luxury leather

goods since 1872

A network of 240 points of sale throughout Europe and Asia

A license agreement executed in 1997 and extended in 2006

and 2011 for 6 years

S.T. DUPONT


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A high-end luxury jewelry brand

Present in 36 countries / 160 points of sale

A 12-year license agreement executed in 2007

VAN CLEEF & ARPELS


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OPERATING HIGHLIGHTS 2013 FIRST HALF


2013 first-half� Sales excl. Burberry €119.7m (+13.3%) � Total revenue: €218.5m

Continuing momentum by main brands� Lanvin (+15%)� Montblanc (+28%)� Jimmy Choo (+45%)

Main launches:� Flash of Jimmy Choo� Lanvin Me� Rêve of Van Cleef & Arpels

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2013 H1 OPERATING HIGHLIGHTS


Particularly robust growth in Asia (>30% excl. Burberry) and Western Europe (>20% excl. Burberry)

Excellent performance in France in a broader market without growth(+17% excl. Burberry)

Exit from the Burberry license:� Supplying markets in the first quarter� Transfer of inventory and material in the second quarter

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2013 H1 OPERATING HIGHLIGHTS


(*) Cash net of borrowings: cash & other current financial assets+ CDs > 3 months - short-term loans

€m H1 2011 H1 2012 H1 2013 2013/2012

Sales

Gross margin

% of sales

Operating profit

% of sales

Net income

% of sales

+5%

+1%

+87%

+87%

€m 06/30/2011 06/30/2012 06/30/2013 2013/2012

Shareholders’ equity

Net cash (*)

+56%

ns

163.0

105.5

64.7%

26.0

16.0%

17.1

10.5%

H1 2013 FINANCIAL HIGHLIGHTS

202.2

19.2

208.9

132.0

63.2%

29.2

14.0%

18.9

9.0%

227.6

9.0

218.5

133.1

60.9%

54.7

25.0%

35.3

16.2%

355.3

191.3

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SALES 2013 FIRST HALF


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LANVIN

2013 H1 sales: €33.8m (+15%)

Sustained sales growth

Further gains by the Eclat d’Arpège (+17%) line

Launch of the Lanvin Me line (€5m)


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MONTBLANC

2013 H1 sales: €28.2m (+28%)

Strong continuing growth

Broad-based and sustained success of the Montblanc Legend line for

men (€17m)

The Group's top-selling line


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JIMMY CHOO

2013 H1 sales: €27.2m (+45%)

Acceleration of commercial development

Successful launch of the Flash line (€12.9m)


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40

VAN CLEEF & ARPELS

2013 H1 sales: €9.8m (+3%)

Renewed growth

Steady performance by the First line

Postive market response to the Rêve line


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2013 H1 sales: €6.0m (-39%)An unfavorable comparison base:� Reintroduction of the brand's classic lines in 2012 H1� Launch of the Jaïpur Bracelet line in 2012 H1

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BOUCHERON


BURBERRY

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2013 H1 sales: €98.9m � Supplying of markets in the first quarter (€83m)� Transfer of inventory and material in the second quarter (€16m)


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Sales by brand(In €m) H1 2012 H1 2013 2013/2012

�Lanvin 29.5 33.8 +15%�Montblanc 22.0 28.2 +28%� Jimmy Choo 18.7 27.2 +45%�Van Cleef & Arpels 9.5 9.8 +3%�Boucheron 9.9 6.0 -39%� S.T. Dupont 8.7 5.9 -32%� Paul Smith 5.2 4.2 -18%�Repetto - 2.2 na�Burberry 103.4 98.9 ns�Other 2.1 2.3 nsTotal 208.9 218.5 +5%Total brands (excl. Burberry) 105.6 119.7 +13%

ns: not significant na: not applicable

2013 H1 REVENUE


Lanvin27%

Jimmy Choo25%

Montblanc23%

Boucheron5%

Van Cleef & Arpels9%

S.T. Dupont4%

Paul Smith3%

Balmain2%

Autres2%

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Sales by brand for H1 2013 (excl. Burberry)

2013 H1 REVENUE


Sales by region(€m) H1 2012 H1 2013 2013/2012

� Africa 2.7 2.8 +2%� North America 49.1 49.6 +1%� South America 19.2 17.8 -7%� Asia 37.8 37.8 -� Eastern Europe 15.6 20.1 +28%� Western Europe 42.1 52.6 +25%� France 17.0 17.1 +1%� Middle East 25.3 20.7 -18%

� Total 208.9 218.5 +5%

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2013 H1 REVENUE


North America

23% (24%)

Western Europe

24% (20%)

France

8% (8%)

South America

8% (9%)

Eastern Europe

9% (8%)

Middle East

10% (12%)

Asia

17% (18%)

Africa

1% (1%)

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Sales breakdown by region H1 2013 (H1 2012)

2013 H1 REVENUE



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RESULTS 2013 FIRST HALF


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11.2 -1.6

218.5

208.9 -0.8%

+5.4%

Excl. Burberry

Organicgrowth

Currencyeffect

Excl. Burberry

(105.6) (119.7)

Burberry Burberry(103.4) (98.9)

H1 2012 H1 2013

Currency effect on sales(€m)

2013 H1 RESULTS


Income statement highlights

(€m) H1 2012 H1 2013 2013/2012

�Net sales 208.9 218.5 +5%�Cost of sales (76.9) (85.4) +11%�Gross margin 132.0 133.1 +1%

% of sales 63.2% 60.9%

� Logistics & transport (6.1) (5.7) -7%� Marketing & advertising (44.2) (25.4) -42%� Royalties (18.7) (17.4) -7%� Staff costs (excluding production) (11.1) (10.6) -5%� Service fees /subsidiaries (8.4) (7.1) -16%� Depr., amortiz. & provisions (4.6) (3.4) -27%

� Other (9.7) (8.8) -9%

�Operating profit 29.2 54.7 +87%% of sales 14.0% 25.0%

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2013 H1 RESULTS


(€m) H1 2012 H1 2013 2013/2012

�Operating profit 29.2 54.7 +87%% of sales 14.0% 25.0%

� Financial income (expense) (1.0) 0.1 ns� Income before tax 28.2 54.8 +94%

% of sales 13.5% 25.0%

� Income tax (9.9) (19.6) +97%Effective tax rate 35.1% 35.7%

�Net income 18.3 35.2 +93%�Non-controlling interests 0.6 0.1 ns�Net income 18.9 35.3 +87%

% of sales 9.0% 16.2%

Income statement highlights

2013 H1 RESULTS

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Net cash(€m) 12/31/2012 06/30/2013

� Certificate of deposits < 3 months 219.8 19.3� Interest-bearing accounts - 66.6� Bank balances 9.2 14.3� Cash and cash equivalents 229.0 100.2� Current financial assets (CDs > 3 months) - 91.3

� Cash, cash equivalents &current financial assets 229.0 191.5� Bank overdrafts and short-term loans (21.1) (0.2)� Net cash 207.9 191.3� Borrowings & financial liabilities - -� Cash net of borrowings 207.9 191.3

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2013 H1 RESULTS


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Non-current assets

97.0 (105.6)

Current assets

149.9 (200.4)

Net cash

191.3 (207.9)

Shareholders’ equity

355.6 (344.5)

Long-term debt

- (-)

Current liabilities

82.6 (169.4)

Assets Liabilities

2013 H1 RESULTS

06/30/2013 (12/31/2012)

Balance sheet highlights


NICKEL

Letter of intent from L’Oréal Group of 13 August 2013

Main characteristics � Sale of the trademark, French and American spas, inventory and molds for bottles and

related items

� Trademarks, bottle molds & related items: €2.6m (net carrying value)

� Inventory: €0.6m (net carrying value)

Execution of the purchase and sale agreement expected in the coming

weeks

Transfer of title on December 31, 2013

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2013 third-quarter sales� October 24, 2013 (before the opening of NYSE-Euronext Paris)

Detailed presentation of 2014 outlook� November 20, 2013 (before the opening of NYSE-Euronext Paris)

Actionaria trade fair� November 22 & 23, 2013 (Palais des Congrès Paris)

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AGENDA


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2013 & 2014 TARGETS SALES


€m 2009 2010 2011 2012 2013 2014

Total revenue

Burberry

Luxe & Fashion

L&F growth rate

280

-

280

+15%/20%

398

221

177

+46%

SALES

445

235

210

+19%

335

99

236

+12%

259

166

93

306

185

121

+30%

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2013 & 2014 TARGETS OPERATING MARGIN


Significant marketing and advertising expenses for Burberry� Launch of Burberry Body

� Beauty make-up

Marketing and advertising expenses 23% of sales in 2011

22% of sales in 2012

A lower operating margin in the second half� 2011 16% in H1; 9% in H2

� 2012 14% in H1; 12% in H2

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2011 & 2012: Years of strong advertising support


Marketing & advertising expenses limited to H1An atypical operating margin in H1

The opportunity to significantly reinforce the same expense items in H2

The weight of marketing & advertising expenses significantly greater in the H2

Internal organization marginally modifiedPreparation of 2014 launches, in particular for the first Karl Lagerfeld fragrance line

Weight of fixed expenses higher

Expense level coherent with 20%(e) of revenue for full year

A high operating margin of 14%(e) for the full year

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2013: An atypical year


Direct consequences on performances

Revenue €280m(e) +15%/20%

Weight of marketing & advertising expenses ≈ 20%(e) of revenue

Operating margin 10%/11%(e)

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2014: A "normalized" year


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LAUNCHES2013 SECOND HALF


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02020202 – A MAGICAL UNIVERSEA MAGICAL UNIVERSEA MAGICAL UNIVERSEA MAGICAL UNIVERSE

Magical and fairyMagical and fairyMagical and fairyMagical and fairy----tale tale tale tale boutiquesboutiquesboutiquesboutiques

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03030303 – THE MAISON REPETTOTHE MAISON REPETTOTHE MAISON REPETTOTHE MAISON REPETTO

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The rangeThe rangeThe rangeThe range


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ACT IIIACT IIIACT IIIACT III: A STAR IS BORN: A STAR IS BORN: A STAR IS BORN: A STAR IS BORN


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FINALEFINALEFINALEFINALE: : : : THE LAUNCH…THE LAUNCH…THE LAUNCH…THE LAUNCH…


1. FRANCE: LAUNCH ON FULL DISTRIBUTION BASIS

• Travel Retail: Early release at Aelia in June 2013

• Local market: July 1, 2013 with a high impact media budget:

– TV Campaign in July and October

– Cinema Campaign from mid-July to mid-August

– JCDecaux Campaign mid-July with 16,000 advertising faces

– Press Campaign from September to December

– Street Marketing with ballet performances

– My Little Paris

2. INTERNATIONAL: LAUNCH COMMENCING IN MID-AUGUST

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AEROPORT DE PARIS AEROPORT DE PARIS AEROPORT DE PARIS AEROPORT DE PARIS ---- ROISSYROISSYROISSYROISSY

AEROPORT DE ROISSY

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FRANCEFRANCEFRANCEFRANCE

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SEPHORA

CHAMPS-ELYSEES


SEPHORA

CHAMPS-ELYSEES


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GALERIES LAFAYETTE

HAUSSMANN


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PRINTEMPS

HAUSSMANN


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BOUTIQUE REPETTOBOUTIQUE REPETTOBOUTIQUE REPETTOBOUTIQUE REPETTO

BOUTIQUE REPETTO

RUE DE LA PAIX

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Air France / onboard (July 2013)# 1 in unit sales# 4 in sales revenues 1. La petite robe noire2. J’adore3. La vie est belle4. Repetto5. Aqua Allegoria Flora Rosa

Out of a total of 27 women's lines

Aelia (June 25, 2013 – July 7, 2013)Orly Sud # 12 (// Dolce & Gabbana and Calvin Klein)Terminal E S3 # 13 (// Boss and Kenzo)Terminal E # 14 (// Boss and Versace in animation)AC # 9 (// Givenchy and Armani)Terminal E S4 # 9 (// Dolce & Gabbana and Armani)

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REPETTO: FIRST RESULTS…


France / Local market (July 2013)Base: 59% of distribution in numbers of points of sale / 87% of distribution in sales revenues

# 5 in sales revenues= 2.9% in market share (equivalent to Chanel N5)

# 1 in unit sales= 3.5% in market share

Sephora Champs Elysées (August 2013)# 1 in sales revenues

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COMPETITIVE ENVIRONMEMENT TOTAL MARKET

Product Rank €uro Rank Units€uro Category Share

Unit Category Share Rank €uro Rank Units

€uro Category Share

Unit Category Share

WOMEN FRAGRANCES

DIOR J'ADORE 1 3 3.8% 3.1% 1 2 3.7% 3.0%

LANCOME LA VIE EST BELLE 2 2 3.4% 3.2% 2 3 3.3% 3.0%

CHANEL COCO MADEMOISELLE 3 6 3.2% 2.5% 4 8 3.1% 2.4%

GUERLAIN LA PETITE ROBE NOIRE 4 5 3.2% 3.0% 3 4 3.1% 3.0%

REPETTO 5 1 2.9% 3.5% 8 5 2.3% 2.7%

CHANEL NO. 5 6 9 2.9% 2.2% 6 10 2.9% 2.1%

THIERRY MUGLER ANGEL 7 4 2.7% 3.1% 5 1 3.0% 3.3%

DIOR ADDICT 8 7 2.5% 2.4% 7 7 2.6% 2.5%

KENZO FLOWERBYKENZO 9 8 2.1% 2.3% 9 6 2.2% 2.5%

DIOR MISS DIOR 10 13 1.9% 1.6% 10 14 1.9% 1.6%

The New Fragrance for Women78

THE NEW STORY

Eau de Parfum Eau de Toilette

The bottle is a tribute to the House’s craftsmen.

The faceted light brings out the glasswork. All in roudness and volumes, like a talisman in the hand.

The Cabochon, emblematic stone of the House, signs the bottle.

The cabochon, present on all the Boucheron fragrances, is the symbol of the enchantress stone.

Its softness kindles its mysterious side, transforming it in a mirror for a woman who does not reveal herself at the first glance.

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2014 & 2015 LAUNCHES


BalmainWinter: First women's line created by Interparfums

Karl LagerfeldSpring: First duo created by Interparfums

MontblancSpring: Second women's line

S.T. DupontSummer: New duo

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2014 LAUNCHES


Jimmy ChooWinter: first men's line

LanvinWinter: New women's line

MontblancSpring: new women's line

Karl LagerfeldSummer: new women's line

BoucheronFall: new women's line

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2015 LAUNCHES


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STOCK MARKET


STOCK MARKET

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Securities market informationMarket: Euronext Paris – Compartment B

(Capitalisations 150 M€ - 1 000 M€)

Indexes: CAC Mid & Small

ISIN code: FR0004024222 ITP

Reuters code: IPAR.PA

Bloomberg code: ITP

Number of shares: 24,200,000

Shareholder base as of September 30, 2013Interparfums Inc.: 73%

Free float: 27%Interparfums has more than 6,000 individual shareholders and approximately 300 institutional

shareholders (with foreign investors representing more than one third).


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Share price as of September 30, 2013: €26.20

Market capitalization: €630m

Daily trading volume: 20,000 shares

STOCK MARKET


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STOCK MARKET


BALMAIN. BOUCHERON.JIMMY CHOO. KARL LAGERFELD. LANVIN. MONTBLANC. NICKEL. PAUL SMITH. REPETTO. S.T. DUPONT. VAN CLEEF & ARPELS.

LARGE & MIDCAP EVENTOCTOBER 3, 2013

Large & MIDCAP Event October 3, 2013...Boucheron (2011 -> 2025) Balmain (2012 -> 2024) Repetto (2012...

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Transcript of Large & MIDCAP Event October 3, 2013...Boucheron (2011 -> 2025) Balmain (2012 -> 2024) Repetto (2012...