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Salvatore Ferragamo
Investor Presentation • Mar 2, 2023
4432_ip_2023-03-02_18233a3e-1268-447c-9f03-c8643a8d30c5.pdf
Investor Presentation
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Analyst Presentation
March 02, 2023 - 6.00 PM CET
DISCLAIMER
This presentation contains forward-looking statements regarding future events and results of the Company that are based on the current expectations, projections and assumptions of the management of the Company.
The actual results may differ materially from those expressed in any forward-looking statement and the Company does not assume any liability with respect thereto.
This document has been prepared solely for this presentation and does not constitute any offer or invitation to sell or any solicitation to purchase any share in the Company.
The Manager in Charge of preparing the Company financial reports hereby certifies pursuant to paragraph 2 of art. 154-bis of Legislative Decree no. 58 of February 24, 1998, that the accounting disclosures of this document are consistent with the accounting documents, ledgers and entries.
2
FY 2022 BUSINESS UPDATE
- To position the brand in contemporary luxury and gain relevance and scale, in May we outlined a mid-term strategy built on four pillars: renew product, re-energize the brand, leapfrog digital and enhance customer experience
- Product at the heart with Maximilian Davis as new Creative Director: successful debut fashion show in September and delivery of capsule collection in November creating good engagement with existing and new customers
- Re-branding with a new logo and an iconic, distinctive red color
- Evolving communication by building communities and establishing a bold, clear creative vision and tone of voice, providing impactful, digitally driven content
- Significant strengthening of digital capabilities through the agreement with Farfetch
- Enhancing customer experience through refreshed stores and a powerful new window display esthetic
- Human capital as key enabler with strong management team to lead in all geographies and activities
- Progressed on ESG objectives and defined future strategy
FY 2022 BUSINESS UPDATE
- Fully on track on all our strategic priorities
- 2022 another year of growth in revenues, amid a complex and volatile macroeconomic environment, in which we focused on the quality of sales in our RTL network, progressed on the optimization of the WHL channel, and increased investments in H2, as planned
- FY'22 total sales at 1,252M Euros, up 10% vs. LY, and EBIT at 128M Euros, down 11% vs. LY. Despite Q4 22 impacted by Chinese Covid-19 restrictions, we pursued our full-price strategy and FY'22 Gross Margin reached 72% of revenues
- In 2023 progressive deployment of our new product offer. Encouraged by early results of SS'23 collection, just launched in stores, and very pleased with the success of the recent FW fashion show, applauded by both press and retailers
- Despite continued geopolitical and macro-economic volatility, we are encouraged by the trends we see in China and are optimistic about its potential going forward
- We remain very excited by the growth opportunity of Ferragamo
5
FY 2022 FINANCIAL REVIEW
FY 2022 REVENUE BY DISTRIBUTION CHANNEL
| Dec YTD | ||||||
|---|---|---|---|---|---|---|
| Δ % | Weight on | Weight on | ||||
| (Euro MM) | 2022 | 2021 | Δ % | Const FX | Tot 2022 | Tot 2021 |
| Retail | 923.5 | 829.8 | 11.3% | 4.7% | 73.8% | 73.1% |
| Wholesale | 336.2 | 296.0 | 13.6% | 6.3% | 26.9% | 26.1% |
| Net Sales | 1,259.7 | 1,125.7 | 11.9% | 5.1% | 100.6% | 99.1% |
| Hedging | (25.7) | (0.3) | nm | nm | -2.1% | 0.0% |
| Licences & Other Rev. | 14.9 | 7.7 | 92.2% | 92.2% | 1.2% | 0.7% |
| Rental income | 2.9 | 2.4 | 22.9% | 9.4% | 0.2% | 0.2% |
| Total Revenue | 1,251.8 | 1,135.5 | 10.2% | 5.7% | 100.0% | 100.0% |
For a better performance analysis, FY 2022 Net Sales have been presented excluding Cash flow hedge effect on revenues and FY 2021 data were restated for comparative purpose.
FY 2022 NET SALES BY REGION
| Dec YTD | ||||||
|---|---|---|---|---|---|---|
| Δ % | Weight on | Weight on | ||||
| (Euro MM) | 2022 | 2021 | Δ % | Const FX | Tot 2022 | Tot 2021 |
| Europe | 261.8 | 210.0 24.7% | 24.6% | 20.8% | 18.7% | |
| North America | 391.3 | 319.9 22.3% | 8.8% | 31.1% | 28.4% | |
| Japan | 99.1 | 88.6 11.9% | 18.9% | 7.9% | 7.9% | |
| Asia Pacific | 417.6 | 438.0 | -4.6% | -10.6% | 33.2% | 38.9% |
| Latin America | 89.8 | 69.2 29.7% | 14.7% | 7.1% | 6.2% | |
| Net Sales | 1,259.7 | 1,125.7 11.9% | 5.1% | 100.0% | 100.0% |
For a better performance analysis, FY 2022 Net Sales have been presented excluding Cash flow hedge effect on revenues and FY 2021 data were restated for comparative purpose.
FY 2022 NET SALES BY PRODUCT
| Dec YTD | ||||||
|---|---|---|---|---|---|---|
| Δ % | Weight on | Weight on | ||||
| (Euro MM) | 2022 | 2021 | Δ % | Const FX | Tot 2022 | Tot 2021 |
| Shoes | 564.3 | 486.5 | 16.0% | 8.0% | 44.8% | 43.2% |
| Leather goods & handbags | 525.5 | 495.9 | 6.0% | 0.1% | 41.7% | 44.0% |
| RTW | 83.7 | 69.9 | 19.7% | 13.9% | 6.6% | 6.2% |
| Silk & other access. | 81.7 | 69.2 | 18.1% | 12.3% | 6.5% | 6.1% |
| Fragrances | 4.6 | 4.3 | 5.8% | -2.4% | 0.4% | 0.4% |
| Net Sales | 1,259.7 | 1,125.7 | 11.9% | 5.1% | 100.0% | 100.0% |
For a better performance analysis, FY 2022 Net Sales have been presented excluding Cash flow hedge effect on revenues and FY 2021 data were restated for comparative purpose.
FY 2022 P&L
| December YTD | |||||
|---|---|---|---|---|---|
| (Euro MM) | 2022 | % | 2021 | % | Δ % |
| Total revenue | 1,251.8 | 100.0% | 1,135.5 | 100.0% | 10.2% |
| Cost of goods sold | (350.7) | -28.0% | (354.6) | -31.2% | -1.1% |
| Gross profit | 901.1 | 72.0% | 780.9 | 68.8% | 15.4% |
| Total operating costs | (773.2) | -61.8% | (637.5) | -56.1% | 21.3% |
| EBIT | 127.9 | 10.2% | 143.5 | 12.6% | -10.8% |
| Financial income (expenses) | (15.9) | -1.3% | (7.4) | -0.7% | >100% |
| Fiancial ROU | (10.9) | -0.9% | (13.5) | -1.2% | -18.9% |
| EBT | 101.2 | 8.1% | 122.6 | 10.8% | -17.5% |
| Taxes | (35.8) | -2.9% | (36.5) | -3.2% | -1.8% |
| Net profit(loss) from discontinued operations, net of taxes | 0.0 | 0.0% | (5.0) | -0.4% | nm |
| Net income | 65.4 | 5.2% | 81.1 | 7.1% | -19.5% |
| Group net income | 69.6 | 5.6% | 78.6 | 6.9% | -11.5% |
| Income to minorities | (4.3) | -0.3% | 2.5 | 0.2% | nm |
| EBITDA | 298.9 | 23.9% | 304.5 | 26.8% | -1.8% |
| (Euro MM) | Dec 22 YTD | Dec 21 YTD | % |
|---|---|---|---|
| Tangible assets | 219.311 | 217.077 | 1.0% |
| Intangible assets | 41.582 | 40.102 | 3.7% |
| Right of Use | 479.724 | 500.046 | -4.1% |
| Financial assets | – | – | |
| Fixed assets | 740.617 | 757.225 | -2.2% |
| Inventory | 281.026 | 279.790 | 0.4% |
| Trade receivables | 94.490 | 112.670 | -16.1% |
| Trade payables | (184.116) | (193.102) | -4.7% |
| Operating working capital | 191.401 | 199.358 | -4.0% |
| Other assets (liabilities) | 76.297 | 83.481 | -8.6% |
| Net Asset Disposal for Sales | – | – | |
| Employee Benefit Liabilities | (7.581) | (8.970) | -15.5% |
| Provisions for risks and charges | (21.251) | (20.732) | 2.5% |
| Net invested capital | 979.484 | 1,010.361 | -3.1% |
| Shareholders' equity (A) | 775.410 | 785.878 | -1.3% |
| Group equity | 751.810 | 764.313 | -1.6% |
| Minority interest | 23.599 | 21.565 | 9.4% |
| Current financial liabilities | (136.946) | (186.129) | -26.4% |
| Non current financial liabilities | (468.737) | (550.746) | -14.9% |
| Cash & Cash equivalents | 401.609 | 512.392 | -21.6% |
| Net debt (B) | (204.074) | (224.483) | -9.1% |
| Financial sources (A-B) | 979.484 | 1,010.361 | -3.1% |
| Net debt (B) | (204.074) | (224.483) | -9.1% |
| Non Current Lease Liabilities | 468.737 | 487.230 | -3.8% |
| Current Lease Liabilities | 106.586 | 110.012 | -3.1% |
| Lease Liabilities | 575.323 | 597.242 | -3.7% |
| Net debt Adjusted | 371.249 | 372.759 | -0.4% |
