Mizuno - api.mziq.com
Transcript of Mizuno - api.mziq.com
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Financial Highlights
EBITDA and EBITDA margin (R$ million and %)
Company Description
Brand of high-performance footwear, with world-class materials and technology.
Main Brands by segment
Founded in 1952, Vulcabras Azaleia is one of the largest footwear and sporting
goods companies in Latin America.
Manager of brands specialized in athletic footwear and women footwear in Brazil
with a vertically-integrated production model that ensures a competitive
advantage versus other players.
Its products are distributed throughout Brazil to more than 10.000 clients as well
as in several countries in Latin America.
Exports accounted for 8.6 % of net revenues in 2020
Publicly held Company in Novo Mercado (highest governance standards of B3).
Owner Olympikus brand, the largest athletic footwear brand of Brazil. Exclusive
representative of Under Armour in Brazil, one of the largest brands in the world
and Mizuno, with high performance products for all levels of athletes
Market Leadership
1º
2º
3º
Internacional
Brand 1
ATHLETIC FOOTWEAR OTHERS
Boots for industry.
Internacional
Brand 2
Largest sporting brands in Brazil in volume (4Q18)
Source: Kantar WorldPanel, Focal Pesquisas. 3
(1) Ex- Non-Recurring items and IFRS 16 ajust.
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What we have achieved?
Unique brand
positioning
Very fragmented client base in Brazil:
more than 10,000 clients.
Well-defined strategy to serve each
sales channel.
Largest sales team in Brazil: 39
representative offices and more than
331 people (all segments).
Best sporting footwear supplier for
retailers.
Integrated
production
Vertically-integrated model ensuring
superior sales execution compared to
international brands.
o Lower average delivery time (5
weeks vs 6 months).
o Faster time to market (4 months
vs 12 months).
o Lower risk of inventory liquidation.
Capillarity of
Distribution
Strong
Innovation
culture
Largest R&D center in Latin America.
+600 people dedicated to R&D.
+ than 800 new models/year.
Award-winning products.
Performance tests made by
professional athletes scores compared
to international brands.
Olympikus
Largest sporting footwear brand in Brazil.
Smart choice: balance of high-quality and affordable prices.
Under Armour
One of the largest sports brands of the world.
Premium brand with innovation and performance focus.
Mizuno
Japanese brand with Global presence with high performance products
for all types of athletes.
Great growth potential.
1993-20152001-20071973-19931986-1990 1981-1992
1948 1882 1949 1916 1958
Brand foundation year
VA’s operation period
55
2018
2007
1996
1975
2021
1906
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Source: Abicalçados.
Brazil is the 4th largest footwear consumer market and the 4rd
largest footwear producer in the world.
The global footwear production presented a healthy growth
over the last years (CAGR of 2.5% from 2016 to 2019E in
number of pairs).
The global footwear consumption has grown at a healthy
pace, in line with the growth of footwear production (CAGR of
2.2% from 2016 to 2019E in volume).
Global Consumption (billion of pairs) Top 10 Producers
Top 10 ConsumersHighlights
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1,0
2,0
3,0
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-5.000 5.000 15.000 25.000 35.000 45.000 55.000 65.000
Co
nsu
mp
tio
np
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ca
pta
(u
nits
pe
r y
ea
r)
GDP per capta in 2017 (US$)
48.9%51.1%
Brazil Consumption Breakdown- 2018 (1)
Small and
Regional
Brands
Top 20
Brands
Analysis of annual footwear consumption and GDP per capita
Bubble size represents the country’s
total footwear consumption.
Brazil, including market
for flip flop sandals.
Brazil, excluding market
for flip flop sandals.
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Source: Abicalçados e World Development Indicators, 2018.
(1) Only sports footwear in Brazil.
Per capita consumption is the growth pillar of the Brazilian footwear industry
Healthier habits
Brazil is the second
largest market of gyms
in the world, lagging
United States only...
...but less than 5%
of the Brazilian
population is
enrolled or go to
gyms regularly.
Gym growth market value
(Crescimento de receita)
Source: Companies financial reports, Google, ACAD Brasil e Marketline.
Note: (1) Revenues growth in reporting currency.
(2) Total includes the average of Under Armour, Nike, Adidas, Asics, Puma, Mizuno and Skechers. 9
Global sport brands have seen a strong long-term growth in revenues (1)
According to Marketline data, the growth of the fitness
market in Brazil in recent years by averaged 10.4%,
reaching U$ 2.9 billion.
Meanwhile in the global market the average growth
was 4.3% in the same period and the USA 2.4%.
10,0%
3,6%
14,1% 14,4%
2015 2016 2017 2018
CAGR +10.4%
2014-2018
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CONSUMERS KNOWLEDGE AND PREFERENCE OF OLYMPIKUS’S BRAND
100%
23%
52%
84%
Olympikus is one of the brands frequently used
Has already used Olympikus
Know Olympikus
SPORTING EVENTS
MEDIA: TV, PRINTED E SOCIAL
Prefer to use Olympikus
SOURCE: KANTAR MILLWARD BROWN. RESEARCH DONE ON November, 2018.11
BRAND AMBASSADORS
Source: 2020 Annual Report - Under Armour’s IR website.
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Fonte: Companhia, 14
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More than 60 promoters
exclusively dedicated to
merchandising activities.
Examples of merchandising activities: store fronts and interior of storesHIGHLIGHTS
Brazilian footwear market is very
fragmented and mainly
composed by small/regional
retailers.
Marketing efforts at the POS is
one of the strategies to promote
the brand and drive sales.
More than 40,000 store sellers
trained per year by Vulcabras’
team.
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Model
Product DevelopmentProduction Sales and Distribution
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Proprietary technologies
Product innovation
Own R&D center
Great flexibility
Significant installed capacity to
support growth
Infrastructure ready for new
investment in machinery and
equipment modernization
Fragmented client base
Domestic and international
distribution
Salesforce with more than 331
professionals
Strong Competitive Advantage
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Sales representatives breakdown per region
39 representative offices with 331 people dedicated to
sales and merchandising, 14 Key Accounts and more than
60 sales promoters.
# Representation office
Complete show-rooms throughout Brazil
Northeast
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Southeast
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South
8
Mid-West
5
North
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Highly diversified client base: three largest clients represent about 17% of Company’s sales.
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Olympikus Representative Olympikus Representative
Under Armour Representative Under Armour Representative
Mizuno Representative Mizuno Representative
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Product
offering
Products sold
Low
price
Medium
Price
Low
Price
Medium
Price
High
Price
Integrated to
sales systems
Auto-service and
Customers E-commerceSporting goods stores Department stores Own E-commerceFootwear stores
17.8%% Of 2020 sales 53.2% 15.9% 7.8% 5.3%
Low
price
Low
price
Low
Price
Medium
Price
High
Price
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Sneakers
Shoes
Flip Flops
Sandals
Slippers
Accessories
Apparel
(*) Data based on the Domestic Market.
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Average delivery time
Time to market
Delivery schedules
Risk of inventory
liquidation
Retail mark-up
Increase in business
6 months
12 months
No flexibility
(12 pairs or more)
High
None, in the case of sell
offs
No replacement in less
than 6 months
International BrandsAccording to our assessment
5 weeks
4 months
Flexible
(6 pairs or more)
Low
Until last pair
Prompt replacement
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*Nota: quadro no final de 2020
Production plant: sports and women's shoes, boots
and components
3,873 employees
14,550
Total number of
employees
Parobé (RS)
221 employees
Production plant: components and sports shoes
9,381 employees
Itapetinga (BA) Horizonte (CE)
Peru / Colômbia
R&D center : 454 employees
Others: 371 employees Office: 157 employees / 70 UA stores
Jundiaí (SP)
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Vale dos Sinos: “Milan of Brazil”
+600 people dedicated to the
development process
Development capacity Awards Production synergies
From product conception to arrival at stores, it
takes only 4 months for the Company to
identify trends and launch new products
Research fashion in trade fairs: Bread and
Butter/ Berlin, SPFW – São Paulo Fashion
Week, and others
Strong innovation culture and well-
established development process
Monitoring of the press: websites and
online media focused on the fashion
trends and consumer behavior
Search in catalogued collection:
collections catalogued since 1976
~R$30 mn invested in R&D / year
More than 800 new models
developed per year
Large technology and development
center in Latin America
Focused on local trends
Exclusive collections
R&D development process
100% integrated with
production
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Best Buy / Best Product Update
2009, 2015, 2018 and 2019
Best Buy
2015, 2016
Olympikus 2013
Top of
Mind
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F I N A N C I A LPerformance
EBITDA (R$ million) and EBITDA Margin (%)Net Revenue (R$ million)
Cash and Net Debt – 2020 (R$ million)Net Income (R$ million) and Net Margin (%)
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