Investor Presentation June 2012 DISCLAIMER FORWARD LOOKING - - PowerPoint PPT Presentation

Investor Presentation June 2012

 Certain information contained in this presentation, particularly information regarding future economic performance, finances, and expectations and objectives of management, constitutes forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and generally contain words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates” or “anticipates” or similar expressions. Our forward- looking statements are subject to risks and uncertainties, which may cause actual results to differ materially from those projected or implied by the forward-looking statement. For discussion of some of the important factors that could cause these variations, please read the “Risk Factors” section of the Company’s Annual Report filed on Form 20-F.  Forward-looking statements contained in this presentation are based on assumptions that we have made in light of our management’s experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors that we believe are appropriate under the circumstances. You should not place undue reliance on forward-looking statements, which speak only as of the date hereof. We do not undertake to update or revise any forward-looking statements after they are made, whether as a result of new information, future events, or otherwise, except as required by applicable law.

DISCLAIMER

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 This presentation includes certain measures presented on a basis other than in accordance with generally accepted accounting principles (GAAP), including Adjusted Operating Income, Adjusted Net Income and Adjusted Earnings per Share. These amounts are not an alternative to GAAP. Management believes that these measures provide investors with transparency by helping to illustrate the underlying financial and business trends relating to the Company's results of operations and financial condition and comparability between current and prior periods. Investors are encouraged to review the reconciliation of such measures to the most directly comparable GAAP term, included as an Appendix to this presentation.

FORWARD LOOKING STATEMENTS USE OF NON-GAAP FINANCIAL MEASURES

JET SET LUXURY

 Rapidly growing global luxury lifestyle brand with compelling growth metrics  Design vision led by world-renowned, award-winning designer  Poised to take share in growing global accessories product category  Proven multi-format retail segment with significant growth opportunity  Strong relationships with premier wholesale customers  Growing licensing segment  Proven and experienced management team

INVESTMENT HIGHLIGHTS

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MICHAEL KORS COLLECTIONS

 Introduced in 1981  Reflects the pinnacle of luxury in accessories, womenswear and menswear  Cornerstone of Michael Kors semi-annual runway shows  Establishes the aesthetic authority of the entire brand  Introduced in 2004  Positioned to address a younger demographic in the accessible luxury segment  Focuses on the accessories market 5

DESIGN PROCESS

 Michael Kors leads the overall design direction of the Company  He is actively involved in the design process and personally reviews the majority of the Company’s designs  Michael Kors is supported by a team of 50 designers  Our global reputation enables us to attract and retain top design talent  Four collections produced annually  Collections are delivered 12 times per year  Product is designed to support retail merchandising

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REVENUE BY PRODUCT

 Accessories and related merchandise accounted for 75% of total revenue in FY 2012  These products will continue to grow and become an increasingly important driver of global comparable store sales growth

Product Mix

FY 2012

75% 25%

Accessories and Related Merchandise (1) Women’s Apparel, Men’s Apparel, and Other

(1) Includes handbags, small leather goods, footwear, watches, jewelry, eyewear and fragrances

7 Product Mix

Outlook

Women’s Apparel, Men’s Apparel, and Other 15-20% Accessories and Related Merchandise (1)

80-85%

REVENUE BY SEGMENT AND REGION

Accessories (1)

By Segment By Region (1)

Wholesale Retail Licensing North America Europe Japan and Other Regions

(1) Total revenue as recognized based on country of origin

($ Millions) FYE March ($ Millions) FYE March

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200 400 600 800 1000 2009A 2010A 2011A 2012A 263 297 414 610 114 187 344 627

397 508 803

65 20

1,302

46 25 200 400 600 800 1000 1200 2009A 2010A 2011A 2012A 397 497 764 1,183 1 11 39 109 1 10

397 508 803 1,302

300 600 900 1,200 2009A 2010A 2011A 2012A 397 508 803 1,302 30 60 90 120 150 2009A 2010A 2011A 2012A 13 39 73 163

Adjusted Net Income (1) Total Revenue

RAPID GLOBAL GROWTH

($ Millions) FYE March ($ Millions) FYE March

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(1) For Fiscal Year 2012, amounts are adjusted for certain one-time charges. Please refer to Appendix for non-GAAP reconciliation.

 Seasoned management team in the luxury and branded lifestyle sectors with an average of over 25 years experience in the retail industry, including a number of public companies

MANAGEMENT

Name Title Years in Industry Years at MK Michael Kors Honorary Chairman, Chief Creative Officer & Director 33 31 John Idol Chairman, Chief Executive Officer & Director 30 9 Joe Parsons Executive Vice President, Chief Financial Officer, Chief Operating Officer & Treasurer 23 8 Anna Bakst President – Accessories & Footwear 22 8 Jaryn Bloom President – Retail 26 7 Gia Castrogiovanni President – Women’s 26 8 Debra Margles President – Canada 27 7 Toshi Tashiro President – Japan 41 2 Cedric Wilmotte SVP – Europe 14 4 Jill Fishman SVP – Global Licensing, Marketing 18 7 Lee Sporn SVP – Business Affairs, General Counsel & Secretary 23 8

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MARKETING / PUBLIC RELATIONS STRATEGY

 Reinforces Michael Kors’ designer status and high-fashion image  Creates excitement around the Michael Kors collection  Global coverage by online and print media

Fashion Shows

 A leading advertiser in global fashion publications  Catalog published three times per year  Our online advertising is expected to account for a large portion of our advertising expense  Use of social media to build brand awareness

Print & Online Advertising

 Strong relationships with the fashion and trade press  Maintains the reputation and designer status profile of the Michael Kors brand  Allows us to market key seasonal fashion products

Editorial

 Huge marketing asset unique to Michael Kors  Builds awareness of chief designer  Leverages the popularity of the show to broaden brand awareness

Project Runway E-Commerce

 Communicates brand image with full product assortment displayed on website – Reinforces the luxury image of our brands – Allows us to communicate directly with customers and drive store traffic

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GROWTH STRATEGIES

 Expand North American retail presence – Seek to expand to approximately 400 retail stores in the long-term – Increase size of existing stores  Drive outstanding comparable store sales growth – Introduce new product categories such as fashion jewelry to further drive comparable store sales – Expansion of current product categories including logo products and small leather goods  Grow North American shop-in-shops at select department stores – Continue to convert selling space into shop-in-shops – Increase number and expand size of existing shop-in-shops  Develop European retail and wholesale businesses – Leverage fully-integrated selling offices in London, Milan, Munich, Paris and Madrid to drive continued retail and wholesale expansion – Seek to increase number of stores to approximately 100 locations and $500 million in revenue in the long-term  Build out Japanese business – Established wholly-owned Japanese subsidiary in 2010 – Capitalize on existing relationships with top Japanese department stores – Seek to increase number of stores to approximately 100 locations in the long-term

Several Key Initiatives Are Underway to Grow Sales 12

2009A 2010A 2011A 2012A Long-Term Goal 74 104 144 191 400 2 17 29 100 5 17 100 74 106 166 237 600

RETAIL STORE GROWTH

Michael Kors Retail Store Count (1) by Region

FYE March North America Europe Japan

 New store growth strategy: – Open new stores in high-traffic street and mall locations, predominately in high-income demographic areas – Adhere to already successful retail store format, which reinforces brand image and generates strong sales per square foot

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(1) Includes concessions

SELECT RETAIL LOCATIONS

MADISON AVENUE, NEW YORK REGENT STREET, LONDON

 We are targeting increased penetration of small leather goods to represent 10-15% of retail store sales over the long- term Small Leather Goods  Our goal is for logo handbags, small leather goods and active footwear to represent ~25% of retail sales over the long-term Logo Products  Brand new product category added to retail stores with the goal of reaching 5% of sales in the long-term  Jewelry retails between $45 and $400 Fashion Jewelry

COMPARABLE STORE GROWTH DRIVERS

15 Positive Comparable Store Sales Growth Every Quarter Over the Last Six Years

FY 2009: 6% FY 2008: 18% FY 2010: 19% FY 2011: 48% FY 2007: 16% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

7% 22% 21% 13% 19% 19% 22% 10% 7% 8% 5% 6% 10% 14% 22% 29% 38% 41% 60% 49% 46% 39% 38% 36%

FY 2012: 39%

WHOLESALE GROWTH INITIATIVES

 Continue to transform retail department store locations into branded shop-in-shops with proprietary customized fixtures  Increase and expand size of existing department store shop-in-shops  Differentiate our in-store sales organization through proprietary jet-set intensive training  Expand shop-in-shop footprint at select department stores throughout Europe

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GLOBAL WHOLESALE CUSTOMERS

North America Europe Asia

International Wholesale Doors: 650 (1) Total N.A. Doors: 2,027 (1)

(1) As of March 31, 2012

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 Wholesale growth initiatives through shop-in-shops: – Continue to transform retail department store locations into branded shop-in-shops with proprietary customized fixtures – Increase number and expand size of existing department store shop-in-shops – Differentiate our in-store sales organization through proprietary jet-set intensive training – Expand shop-in-shop footprint at select department stores throughout Europe – Currently have 550 shop-in-shops globally with a long-term target of ~1,200

SHOP-IN-SHOPS

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E-COMMERCE

 Communicates brand image with full product assortment displayed on website

• Reinforces the luxury image of our brands
• Allows us to communicate directly with customers and drive store traffic

 Plans to transition e-commerce in-house

• Current website operated in partnership with Neiman Marcus (launched in 2007)

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 Opportunity to grow through a select number of licensees who produce brand-enhancing products across categories requiring specialized expertise

Fragrances

 Estee Lauder has been our exclusive women’s and men’s fragrance licensee since May 2003  Price points range from $20 to $115

Eyewear

 Marchon has been our exclusive eyewear licensee since January 2004  Focus on logo / status eyewear  Price points range from $85 to $285  Fossil has been our exclusive watch licensee since April 2004  “Must-have" status item among young fashion consumers  Builds brand loyalty with younger customers with opportunity to leverage success across other demographics  Price points range from $150 to $500

Watches Jewelry

 Fossil has been our exclusive fashion jewelry licensee since December 2010  Complementary to watch and accessory lines  Comprised of bracelets, necklaces, rings and earrings  Price points range from $45 to $400

LICENSING PARTNERS

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FINANCIAL OVERVIEW

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($ Millions) FYE March

FY 2009 FY 2010 FY 2011 FY 2012 13 39 73 163 FY 2009 FY 2010 FY 2011 FY 2012 189 267 446 753 FY 2009 FY 2010 FY 2011 FY 2012 24 56 137 272 FY 2009 FY 2010 FY 2011 FY 2012 397 508 803

HISTORICAL FINANCIAL SUMMARY

($ Millions) FYE March FYE March FYE March

Total Revenue Adjusted Income from Operations(1) Gross Profit Adjusted Net Income (1)

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($ Millions) ($ Millions)

57.8 55.5 52.5 47.5 Margin (%) 20.9 17.0 11.1 6.1 Margin (%) 12.5 9.0 7.7 3.3 Margin (%)

(1) For Fiscal 2012, amounts are adjusted for certain one-time charges. Please refer to Appendix for non-GAAP reconciliation.

1,302

STRONG 2012 PERFORMANCE

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Full Year 2012 vs. 2011 Summary Financials Highlights

($ Millions, except per share data)

 Retail – Global comparable store sales growth of 39.2% – Opened 71 stores globally – Ending store count of 237  Wholesale – Net sales growth of 48% – Continued strong sell-through – Continued conversion of wholesale doors into shop-in-shops  Licensing – Revenue growth of 43% driven by strong sales led by Michael Kors watch lines and eyewear  Strong comparable store sales growth drove gross margin expansion of 230 bps and adjusted operating margin expansion of 200 bps

(1) For Fiscal Year Ended March 31, 2012, amounts are adjusted for certain one-time charges. Please refer to Appendix for non-GAAP reconciliation.

%Growth/ March 31, 2012 April 2, 2011 Margin Exp

Revenue: Retail Net Sales 627 344 82% Wholesale Net Sales 610 414 48% Licensing 65 46 43% Total Revenue 1,302 803 62% Gross Profit 753 446 69% Gross Margin 58% 56% +230 bps Adjusted Income from Operations (1) 272 137 99% % Margin 21% 17% +390 bps Adjusted Net Income (1) 163 73 125% % Margin 13% 9% +350 bps Adjusted EPS (1) $0.86 $0.40 115%

Fiscal Year Ended

STRONG FINANCIAL POSITION

 Net cash position and strong liquidity supported by Revolving Credit Facility

― Provides for up to $100 million of borrowings ($35 million sub-limit for loans and

letters of credit to the European subsidiaries)

― Amended in September 2011 and expires in September 2015 ― Revolver used for seasonal working capital requirements

 Historically funded new store growth out of cash flow from operations and revolver availability  Capital expenditures are expected to fund store openings, the development of shop-in- shops, build-out of our warehouse, corporate offices and enhancement of our information systems infrastructure – Expect to spend approximately $150 - $170 million during Fiscal 2013

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FISCAL 2013 AND 1Q13 GUIDANCE

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 Guidance Detail – For the first quarter of fiscal 2013, the Company expects total revenue to be in the range of $360 million to $370 million. This assumes a comparable store sales increase of approximately 35%. Diluted earnings per share are expected to be in the range of $0.18 to $0.20 for the quarter. This assumes 199.0 million diluted weighted average shares outstanding and a 38% tax rate. – For fiscal 2013, the Company expects total revenue to be in the range of $1.7 billion to $1.8 billion. This assumes a comparable store sales increase of approximately 20%. Diluted earnings per share are expected to be in the range of $1.08 to $1.12 for the year. This assumes 201.2 million diluted weighted average shares outstanding and a 38% tax rate.

Summary Guidance Issued June 12, 2012

1Q13 FY13

Net Revenues $360 - $370 $1,700 - $1,800 Adjusted EPS $0.18 - $0.20 $1.08 - $1.12

APPENDIX

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NON-GAAP RECONCILIATION

27 Reconciliation of income from operations, as reported, to income from operations, as adjusted

Fiscal Year Ended March 31, April 2, 2012 2011 Income from operations, as reported 247,682 $ 136,866 $ Add back adjustments for one time charges: Stock option expense 10,600

• IPO fees

3,170

• Employee share option redemption - private placement

10,690

• Income from operations, as adjusted

272,142 $ 136,866 $

Use of Non-GAAP Financial Measures In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), the Company provides non-GAAP operating results that exclude certain charges or credits such as transaction expenses related to the Company's IPO, Stock option expense and other offering fees. These amounts are not in accordance with, or an alternative to, GAAP. The Company's management believes that these measures provide investors with transparency by helping illustrate the underlying financial and business trends relating to the Company's results of operations and financial condition and comparability between current and prior periods. Management uses the measures to establish and monitor budgets and operational goals and to evaluate the performance of the Company.

NON-GAAP RECONCILIATION

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Use of Non-GAAP Financial Measures In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), the Company provides non-GAAP operating results that exclude certain charges or credits such as transaction expenses related to the Company's IPO, Stock option expense and other offering fees. These amounts are not in accordance with, or an alternative to, GAAP. The Company's management believes that these measures provide investors with transparency by helping illustrate the underlying financial and business trends relating to the Company's results of operations and financial condition and comparability between current and prior periods. Management uses the measures to establish and monitor budgets and operational goals and to evaluate the performance of the Company.

Fiscal Year Ended March 31, April 2, 2012 2011 Net income, as reported 147,364 $ 72,506 $ Add back adjustments for one time charges: Stock option expense 10,600

• IPO fees

3,170

• Employee share option redemption - private placement

10,690

• Less tax benefit on above

(8,686)

• Net income, as adjusted

163,138 $ 72,506 $ Weighted average ordinary shares outstanding: Diluted 189,299,197 179,177,268 Net income per ordinary share, as adjusted: Diluted 0.86 $ 0.40 $

Reconciliation of net income, as reported, to net income, as adjusted