2017 Interim Results Disclosure Statement This presentation and the - PowerPoint PPT Presentation

2017 Interim Results

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 Strategy, Outlook and Key Initiatives Q&A Page 3

1 st Half 2017 Results Highlights Record 1 st Half Net Sales of US$1.6 billion +31.8% +39.2% +27.2% 0.0% Constant Constant Constant Constant Currency Currency Currency Currency Growth Growth Growth Growth Constant currency net sales Gross margin up 300bp from Adjusted EBITDA margin Adjusted Net Income is in line growth of US$384.1 million, 1H 2016 to 55.3%, largely due decreased by 50bp from 1H with 1H 2016 with additional partly offset by negative to the inclusion of Tumi, which 2016, largely due to profits from the Tumi business currency translation impact of had 64.1% gross margin. advertising spend as a largely offset by higher interest US$7.5 million. Excluding Excluding Tumi, gross margin percentage of sales increasing expense associated with $292.5 million of Tumi net improved from prior year by by 80bp from 5.5% in 1H 2016 financing the acquisition and sales, constant currency net 110bp from 52.3% to 53.4%. to 6.3% in 1H 2017. higher advertising spend in the sales growth was 7.5%. core business. Indicates % of net sales Page 4

1 st Half 2017 Business Overview Strong Strong constant currency net sales growth in all regions: Advertising and promotion spend growth in all North America: +53.0% (+7.4% excluding Tumi) of US$99.5 million (6.3% of sales) is regions Asia: +19.8% (+3.8% excluding Tumi) 51.0%, or US$33.6 million, higher Europe: +24.0% (+11.5% excluding Tumi) than 1H 2016 spend of US$65.9 Latin America: +19.4% million (5.5% of sales) as the Group is investing today in creating brand The Group generated excitement for tomorrow. operating cash flow of Constant currency net sales US$152.8 million in 1H 2017 Sustained Multi-brand growth bolstered by diversified compared to US$81.1 million investment in strategy brand portfolio: recorded in the first half of the brands Samsonite: +7.0% previous year, notwithstanding Tumi: +11.4% (1) a US$32.5 million increase in Strong constant currency growth of American Tourister: +1.3% cash interest payments 89.0% (20.2% excluding Tumi) in total Speck: +9.2% primarily associated with the direct-to-consumer channel net sales Gregory: +21.9% Tumi acquisition. with retail up 82.0% (10.2% excluding Kamiliant: +98.2% Tumi) and direct-to-consumer e- Lipault: +22.3% commerce up 126.7%, (73.9% excluding Tumi) largely due to the addition of Strong constant currency net sales growth eBags. Multi- across all product categories: Multi-channel Total e-commerce net sales (direct-to- Travel: +20.5% (+6.5% excluding Tumi) category consumer e-commerce and wholesale strategy Business: +98.1% (+2.5% excluding Tumi) strategy to e-retailers) constituted 10.5% (11.1% Casual: +29.8% (+19.3% excluding Tumi) excluding Tumi) of total net sales, up Accessories: +40.6% (+8.5% excluding 220bp from 8.3% in 1H 2016, largely due Tumi) to the addition 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 period ended June 30, 2016 are based on Tumi’s internal management reporting, adjusted as necessary to align with 2017 reporting of Page 5 brand sales.

Strong net sales growth partly offset by slight currency translation pressure Net Sales Bridge – 1H 2016 to 1H 2017 Organic net sales growth of US$90.8 million (1) , or 7.5% (1) (2) , coming from: Europe: +11.5% (1) -0.6% North America: +7.4% (1) (2) Asia: +3.8% (1) Latin America: +19.4% (1) +24.2% +7.5% Incremental net sales of US$293.3 (1) million from the acquisition of Tumi. Currency translation had an adverse impact of US$7.5 million on reported net sales from the strengthening US Dollar during the year. * (1) Stated on a constant currency basis. (2) Includes US$21.3 million additional net sales from the purchase of eBags. * Constant currency impact of Tumi net sales from January through June of 2017. Page 6

Adjusted Net Income Bridge Reflects US$16.0 Reflects US$17.5 million of advertising million additional spend for Tumi investment in brand in 1H 2017 advertising year- compared to US$7.2 over-year. million in 1H 2016. 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 1H 2016, US$3.6 million ticking fees on Tumi Page 7 acquisition debt were also adjusted out.

1 st Half 2017 Results Highlights Excluding Tumi Results +9.5% +27.1% +0.7% +7.5% Constant Constant Constant Constant Currency Currency Currency Currency Growth Growth Growth Growth Constant currency net sales Gross margin increased Advertising as a percentage Adjusted EBITDA margin growth of US$90.8 million, partly 110bp due mainly to a higher of net sales is 100bp higher decreased by 90bp from 1H offset by negative currency proportion of sales from direct- than prior year, focusing on 2016 mainly driven by higher translation impact of US$6.7 to-consumer channels, as well categories where there is advertising spend as a million. Constant currency net as lower freight-in costs and opportunity to significantly percentage of net sales and sales growth of 7.5% was driven lower promotional activity. increase market share. higher retail operating by Europe +11.5%, North expenses as a percentage of America +7.4%, Asia +3.8% and sales, partly offset by higher Latin America +19.4%. gross margin. Page 8 Indicates % of net sales

eBags acquisition will accelerate growth in the E-commerce channel and strengthen digital capabilities eBags is a leading online retailer of bags and related accessories for travel, providing consumers with a diverse offering of travel bags and accessories including luggage, backpacks, handbags, business bags, travel accessories and apparel. 2016 sales of US$158.5 (1) million up 23.5% from the prior year. The acquisition will give the Group a strong platform to help accelerate the growth of its direct-to-consumer e-commerce business in North America and worldwide. It will also provide the Group with immediate resources and digital expertise to strengthen its existing digital capabilities. Purchase price of US$105 million was paid in cash. Transaction closed May 5, 2017. (1) Extracted from the unaudited financial statements of eBags for the fiscal year ended December 25, 2016. Page 9

Tumi Acquisition Integration Update Integration going largely as planned one year after closing. SAP conversion completed in May 2017. Accelerated advertising vs. original plan by approximately US$18 million (US$10 million in 2016 and US$8 million in 1H 2017). Assumed direct control from distributors of key Asia markets ahead of plan South Korea, effective January 1, 2017; China and Hong Kong (including Macau), effective April 1, 2017; and Indonesia and Thailand, effective May 1, 2017. Sourcing initiatives going well with additional gross margin improvements anticipated in 2H 2017 and beyond. Estimated synergy savings to date of US$13.5 million, or approximately US$21.2 million of annualized savings, mainly through reduced headcount, public company, sourcing and freight expenses in line with original plans. Page 10