Disclosure Statement This presentation and the accompanying slides - PowerPoint PPT Presentation

Disclosure Statement This presentation and the accompanying slides (the “Presentation”) which have been prepared by Samsonite International S.A. (“Samsonite” or the “Company”) do not constitute any offer or invitation to purchase or subscribe for any securities, and shall not form the basis for or be relied on in connection with any contract or binding commitment whatsoever. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, on the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all-inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of or any omission from this Presentation is expressly excluded. Certain matters discussed in this presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation, including, amongst others: whether the Company can successfully penetrate new markets and the degree to which the Company gains traction in these new markets; the sustainability of recent growth rates; the anticipation of the growth of certain market segments; the positioning of the Company’s products in those segments; the competitive environment; general market conditions and potential impacts on reported results of foreign currency fluctuations relative to the U.S. Dollar. The Company is not responsible for any forward-looking statements and projections made by third parties included in this Presentation. Page 2

Agenda Results Highlights Business Overview Financial Highlights Outlook and Company Strategy Q&A Page 3

2017 Results Highlights Record Net Sales of US$3.5 billion +23.3% +27.9% +18.2% +0.7% Constant Constant Constant Constant Currency Currency Currency Currency Growth Growth Growth Constant currency net sales growth of Gross margin increased by 200bp Adjusted EBITDA increased by Adjusted Net Income increased 23.3% was partly driven by incremental from 2016 largely due to an extra US$94.7 million despite slightly despite seven additional Tumi net sales of US$346.6 million from seven months of contribution from US$62.2 million higher months of interest expense associated January through July of 2017 and net sales Tumi in 2017, as well as increased advertising spend. Adjusted with financing the Tumi acquisition. from the addition of eBags. Constant gross margin in the Tumi business EBITDA margin decreased by Profit attributable to equity holders, currency net sales growth in Tumi year-over-year. Excluding Tumi, 70bp from 2016 largely due to excluding the tax impacts of U.S. tax operations for August through December gross margin increased by 70bp advertising spend as a reform and Tumi legal entity was 14.5%. Excluding Tumi and the mainly due to a higher proportion of percentage of net sales reorganization in 2017 and pension contribution from eBags, constant currency net sales coming from direct-to- increasing by 80bp from 5.1% in liquidation in 2016, increased by net sales growth was 6.3%. consumer channels. 2016 to 5.9% in 2017. 12.1% from prior year. Tumi was accretive to earnings in the first full year after acquisition. Page 4 Indicates % of net sales

2017 Business Overview Strong Strong constant currency net sales growth in all regions: Advertising and promotion spend growth in all North America: +35.4% (+16.2% excluding Tumi of US$206.0 million (5.9% of net regions and +3.3% further excluding eBags) sales) is 43.3%, or US$62.2 million, Asia: +16.0% (+4.8% excluding Tumi) higher than 2016 spend of US$143.8 Profit attributable to equity Europe: +16.8% (+10.5% excluding Tumi) million (5.1% of net sales) as the holders increased by US$78.6 Latin America: +18.6% Group continues to maintain its million, or 30.7%, from prior year. investments behind its brands. Excluding the impact of U.S. tax reform and other one-time tax Constant currency net sales Sustained items, the increase was US$24.1 Multi-brand growth bolstered by diversified investment in million, or 12.1%. strategy brand portfolio: brands Samsonite: +6.1% The Group generated operating Tumi: +12.6% (1) cash flow of US$341.3 million in Strong constant currency growth of American Tourister: +6.5% 2017 compared to US$260.8 57.4% (+32.1% excluding Tumi, +12.2% Speck: +4.6% million recorded in the previous further excluding eBags) in total direct- Gregory: +18.6% year, notwithstanding a US$30.3 to-consumer channel net sales with Kamiliant: +68.4% million increase in cash interest retail up 41.7% (+10.1% excluding Tumi) Lipault: +12.9% payments primarily associated and direct-to-consumer e-commerce up with the Tumi acquisition. 138.0% (+22.4% excluding Tumi and Strong constant currency net sales growth eBags). Multi- across all product categories: Multi-channel Total e-commerce net sales (direct-to- Travel: +15.8% (+8.4% excluding Tumi) category consumer e-commerce and wholesale strategy Business: +60.4% (+7.8% excluding Tumi) strategy net sales to e-retailers) comprised Casual: +20.1% (+26.6% excluding Tumi) 14.0% of total net sales, up 450bp from Accessories: +23.8% (+11.2% excluding 9.5% in 2016, largely due to the addition Tumi) of eBags. Continuing to drive strong results while making progress on multi- brand, multi-category and multi-channel strategy (1) Comparative figures for Tumi’s prior year are based on Tumi’s internal management reporting, adjusted as necessary to align with 2017 reporting of brand net sales. Page 5

Strong net sales growth plus full year impact of Tumi Net sales growth excluding Tumi operations Net Sales Bridge – 2016 to 2017 of US$268.8 million (at constant currency rates), or 10.6% (1)(2) coming from: North America: +16.2% (1)(2) (+3.3% (1) further excluding eBags) Asia: +4.8% (1) Europe: +10.5% (1) Latin America: +18.6% (1) US$387.4 million Tumi constant Excluding Tumi operations and the currency increase contribution from eBags, constant currency US$268.8 million Constant currency net sales growth was 6.3%. increase excluding Tumi Incremental net sales of US$387.4 (1) million from Tumi with US$346.6 million of incremental net sales from January through July of 2017 (US$347.4 million at constant currency rates) and constant currency growth for August through December of US$39.9 million, or 14.5% (1) . Currency translation had a positive impact of US$24.3 million on reported net sales due to the weaker US Dollar compared to prior year. (1) Stated on a constant currency basis. (2) Includes eBags net sales of US$114.1 million since the acquisition in Page 6 May 2017.

Growth in Adjusted Net Income (ANI) +0.7% Constant Currency Growth Note: The main items that are adjusted out of net income when calculating Adjusted Net Income are amortization, acquisition costs, joint venture put option expense and the estimated tax impact on these items. In 2016, income tax benefit of US$56.8 million related to the liquidation of the pension plan and US$5.8 million ticking fees on Tumi acquisition debt were also adjusted out. In 2017, the tax benefit related to U.S. tax reform of US$118.8 million and the tax expense of US$7.6m on the Tumi legal entity reorganization were also adjusted out. Page 7

2017 Results Highlights Excluding Tumi Operations +10.6% Constant Currency Growth Constant currency net sales Gross margin increased by Advertising spend as a Adjusted EBITDA margin growth of 10.6% with North 70bp due mainly to a higher percentage of net sales is decreased by 100bp from 2016 America +16.2%, Asia +4.8%, proportion of net sales from 100bp higher than prior year, mainly driven by higher advertising Europe +10.5% and Latin direct-to-consumer channels focusing on categories where spend as a percentage of net America +18.6%. Excluding the as well as lower freight-in there is opportunity to sales and higher retail operating impact of eBags, constant costs and lower promotional significantly increase market expenses as a percentage of net currency growth in North activity. share. sales, partly offset by higher gross America was 3.3% and for total margins. company was 6.3%. Page 8 Indicates % of net sales