De sc riptio n a nd tra nsa c tio n ra tio na le July 8th, 2013 Six - - PDF document

July 8th, 2013

De sc riptio n a nd tra nsa c tio n ra tio na le

2

Six g e ne ra tio ns’ e xpe rie nc e a nd ma rke t le a de r in

ma nufa c turing a nd re ta iling hig h-e nd te xtile pro duc ts

Spe c ia lists in ve ry hig h-e nd, luxury c a shme re a nd wo o l

pro duc ts ma de in I ta ly

Co mb ine s la te st te c hno lo g y, tra ditio na l c ra ftsma nship a nd

I ta lia n ta ilo ring

E

xpe c te d 2013 Re ve nue o f €700m with a n E BI T DA ma rg in o f mo re tha n 20%

“Quality without c ompr

• mise ”

3

Histo ry

E

a rly 19th c e ntury : fa mily sta rt a s me rc ha nts o f wo o l fa b ric s in T rive ro , No rthe rn I ta ly

April 1924 : fa mily mo ve to Qua ro na Se sia , Pie tro

• pe ns wo o l mill a nd c re a te s L
• ro Pia na .

Mid 1940’ s : F

ra nc o L

• ro Pia na ta ke s o ve r a nd sta rts

e xpo rting fine fa b ric s into inte rna tio na l ma rke ts.

1970’ s : F

ra nc o ’ s so ns, Se rg io a nd Pie r L uig i, suc c e e d a nd e xpa nd into luxury re ta il o pe ra tio ns.

4

Princ ipa l Busine sse s

Offe rs e xc lusive me nswe a r a nd wo me nswe a r line s Wo rldwide ne two rk o f o ve r 130 sto re s Pro duc e s me nswe a r, wo me nswe a r a nd spo rtswe a r

pro duc ts a s we ll a s to p q ua lity ya rns

Ma nufa c ture s fo r its o wn use a nd supplie s hig h-

e nd g a rme nt ma nufa c ture rs

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Ac c e ss to wo rld’ s b e st ra w ma te ria ls

• Vic una : pre vio usly o nly use d b y Pe ruvia n E

mpe ro r’ s fa mily, e xc lusive rig hts to re intro duc e this ra re st a nd fine st a nima l fib e r in the wo rld to the ma rke t in 1994.

• Cashme r

e and baby c ashme r e : la rg e st we ste rn

ma nufa c ture r

• F

ine Me r ino wools : numb e r 1 sing le purc ha se r o f

e xtra -fine wo o ls a uc tio ne d in Austra lia a nd Ne w Ze a la nd

• L
• tus flowe r

fibe r : pre se rving a na tural te xtile o f

e a ste rn Mya nma r T he la rg e st c a shme re ma nufa c ture r a nd the b ig g e st sing le purc ha se r o f the wo rld’ s fine st wo o ls.

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Uniq ue b ra nd e q uity

One o f the wor

ld’s most e xc lusive br ands for high quality c lothe s and ac c e ssor ie s

• Ve r

tic ally inte gr ate d b ra nd fro m a c c e ss to the fine st

ra w ma te ria ls to distrib utio n to the mo st disc e rning c lie nte le

• Obse ssion for

quality a t e ve ry sta g e , b a se d o n a 100% made in Italy po lic y

E

xc e ptio na l ra ng e o f e xc lusive and r

ar e pr

• duc ts of

the fine st de sign

A ne two rk o f r

e tail stor e s in the wo rld’ s mo st pr e stigious loc ations

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F a st g ro wing

100 200 300 400 500 600 700 2009 2010 2011 2012

16.7%

Re ve nue e vo lutio n

CAGR % L uxury Go o ds 68% T e xtile s 32% Asia

30% Re st o f E uro pe 27% No rth Ame ric a 22% I taly 19%

2012

€631 millio n €631 millio n

2012 E BI T

* marg in : 15.6%

He a dc o unt : 2 533

Re ve nue By b usine ss Re ve nue By re g io n

€ millio ns Re st o f the wo rld 2%

2 396 481 557 631

* Earnings before interest and taxes

8

Pro fita b le g ro wth

24.7 58.5 87.9 97.9 20 40 60 80 100 120 2009 2010 2011 2012

58.3%

E BI T

* e vo lutio n

L uxury Go o ds 88% T e xtile s 12%

2012

€97.9 millio n

E BIT * By b usine ss

€ millio ns CAGR % * Earnings before interest and taxes

9

I nte rna tio na l Pre se nc e

Re st of Asia: 31

• W. E

ur

• pe : 32

US: 21 Middle E ast: 3 Italy: 19 E . E ur

• pe : 10

ST ORE BASE BY RE GION Japan: 24

10

Ma de in I ta ly

Quar

• na

Valduggia Ghe mme Roc c apie tr a Bor gose sia

L uxur y Goods We a ving Mill Knitwe a r pr

• duc tion

Ca shme r e spinning a nd r e se a r c h

Sillave ngo

Wor ste d ya r ns spinning a nd c ombing He a d Offic e

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De a l ma in fe a ture s

Ag re e me nt to ac quir

e 80% o f the sha re c a pita l o f L

• ro Pia na

20 % re ma ins in L

• ro Pia na fa mily’ s ha nds
• Se r

gio and Pie r L uigi L

• r
• Piana maintain the ir

r

• le s
• 100% E

nte r pr ise value o f €2,685 millio n (inc luding ne t de b t)

• Ba se d o n E

V/ E BI T DA multiple s a nd a c o ntro l pre mium

• Ne xt ste ps
• Cle a ra nc e o f a nti-trust : e xpe c te d Q4 2013
• T

ra nsa c tio n Clo sing , inte g ra tio n a nd c o nso lida tio n to fo llo w

12

De a l drive rs

Re infor c e s por tfolio with be st-in-c lass, unique br and with a r ic h he r itage

Ga ins ac c e ss to one of the most de sir

able br ands in the

wo rld in high-quality pr

• duc ts with a unique know-how
• F

ast gr

• wing a nd pr
• fitable
• Signific ant gr
• wth pote ntial
• Re ta il e xpa nsio n
• Se le c tive ly wide n pro duc t o ffe r
• le a the r a nd a c c e sso rie s
• me n’ s o ffe r
• E

xc e ptional syne r gie s with the L VMH Gr

• up

13

T ra nsa c tio n fina nc ing

€ 2 b illio n to b e pa id in 2013 F

ina nc e d b y available c ash a nd ne w de bt :

• Sho rt te rm c o mme rc ia l pa pe r
• Me dium te rm b o nd
• Ge ar

ing e xpe c te d to b e be low 20% ne xt ye a r

• L

imite d impac t on L VMH's de bt pro file , a nd de b t re la te d

ra tio s

14

Co nc lusio n

Unique br

and with gr e at pote ntial

E

xc e ptional addition to the L VMH por tfolio o f b ra nds

Ac c e ss to the highe st quality mate r

ials a nd know-how

Italian he rita g e Inte r

national re c o g nitio n a s o ne o f the mo st e litist

b ra nds in the wo rld