FULL YEAR 2017 RESULTS March 21 st , 2018 Daniel Lalonde, CEO Philippe Gautier, CFO & Operations Director
DISCLAIMER The financial figures included in this presentation are extracted from the consolidated financial statements of SMCP for the 20-month financial year ending December 31, 2017, which include, for comparison purposes, information on the 12-month period ending December 31, 2017. *** Certain information contained in this document may include projections and forecasts. These projections and forecasts are based on SMCP management's current views and assumptions. Such statements are not guarantees of future performance of the Group. Actual results or performances may differ materially from those in such projections and forecasts as a result of numerous factors, risks and uncertainties. This document has not been independently verified. SMCP makes no representation or undertaking as to the accuracy or completeness of such information. None of the SMCP or any of its affiliates representatives shall bear any liability (in negligence or otherwise) for any loss arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. For more information regarding these factors, risks and uncertainties, please refer to the information contained in the documents filed with the French Financial Markets Authority (Autorit é des March é s Financiers - AMF) as part of the regulated information disclosure requirements and available on SMCP's website (www.smcp.com). 2
#1 Daniel Lalonde, CEO
OUTSTANDING 2017 RESULTS - EXCEEDED GUIDANCE Guidance Actual € 912m Sales c. € 900m Adjusted 1 EBITDA 16.5% 16.8% margin (%) Capex € 50 – 53m € 49m Net leverage 1.9x < 2.25x at IPO 4 (1) Excluding LTIP
ANOTHER YEAR OF STRONG GROWTH Sales ( € m) 2017 sales growth: + 16.0 % reported + 17.5 % at constant currency % international: 28% 34% 42% 50% 54% 59% 2010 sales are a pro-forma consolidation from the 3 sub-group consolidated accounts of Sandro Andy SA, Maje SAS, and Claudie Pierlot SAS 5 2010 and 2011 sales in French GAAP Change of accounting method to IFRS from 2012 onward
CREATING VALUE THROUGH PROFITABLE GROWTH Adjusted 1 EBITDA ( € m) 154 130 107 2015 2016 2017 Adj. 1 EBITDA margin 15.8% 16.5% 16.8% 6 (1) Excluding LTIP impact for - € 1.9m in FY 2017
LEVERAGING ALL OUR GROWTH DRIVERS II / GAIN MARKET SHARE IN FRANCE I / PURSUE ORGANIC GROWTH France III / DEVELOP FOOTPRINT IN STRATEGIC MARKETS Directly operated stores Key partnerships Greater China 1 South Korea BUILD ON THE CORE GROW DIGITAL UK Australia Spain Middle East 2 Germany Italy North America EXPAND DEVELOP MEN’S ACCESSORIES (1) Includes Mainland China, Hong Kong, Macau and Taiwan 7 (2) Includes UAE, Saudi Arabia, Kuwait and Qatar
BUILD ON THE CORE BRAND AWARENESS ACROSS THE WORLD 2017 LFL sales growth: + 7.8 % DESIRABLE ON-TREND RTW INNOVATIVE IN-STORE COLLECTIONS ORIGINAL SOCIAL MEDIA CAMPAIGNS CUSTOMER EXPERIENCE #TRUEPARISIANCHIC 8
STRONG DIGITAL ACCELERATION DRIVEN BY SUCCESSFUL INITIATIVES 2017 Digital penetration : 12.1 % Sales growth: +46% Roll-out omni-channel services Drive e-commerce business Strong CRM, reaching 5 million customers (+c. 30 %) STORE TO WEB CLIK & COLLECT E-RESERVATION 9
STRONG SUCCESS OF SANDRO MEN 2017 Sales growth : +17% Sandro Taikoo Li Sanlitun, Beijing Sandro Paseo de Gracia, Barcelona URBAN CHIC DESIRABLE STRONG VISIBILITY COLLECTION STRENGTHENING AWARENESS ROLLING OUT MEN FOOPRINT 10 10
STRONG MOMENTUM ON ACCESSORIES 2017 Sales growth : +18% SUCCESSFUL LAUNCH OF "ANOUCK" LINE (CP) PRE-LAUNCH OF SANDRO AND MAJE EYEWEAR COLLECTIONS EXTENSION OF THE “M” BAG “M WALK” 11 11
DEVELOP FOOTPRINT, CAPTURING HUGE GROWTH OPPORTUNITIES 2017 Sales International growth : +27% ( +30% at constant FX) 2017 net openings across the world Significant White Space potential 475 475 WHITE SPACE OPPORTUNITIES + 48 + 50 + 15 -4 149 149 130 130 EMEA FRANCE POS AMERICAS 73 73 70 70 APAC 46 46 # P 33 33 France Greater North Spain UK Germany Italy China America + 109 POS in 2017 TOTAL POS: 1,332 12 12
KEY OPENINGS IN 2017 IN PRESTIGIOUS LOCATIONS Maje Champs Elys é es in Paris, France Sandro Yorkdale, Toronto, Canada Claudie Pierlot Taikooli in Beijing, China Sandro Regent street in London, UK Claudie Pierlot via Manzoni in Milan, Italy Sandro Shenzen MixC World, China Maje Guangzhou IGC, China 13 13
#2 Philippe Gautier, CFO
EXCELLENT 2017 RESULTS; EXCEEDED GUIDANCE Adj. 1 EBITDA SALES FCF + 16.0 % growth 16.8% margin € 60.7 m € 912.4m € 153.7m (+18.6%) excl. IPO related costs 2 / +17.5% at constant FX / +7.8% LFL growth / POS: 1,332 (+109) (1) Adjusted from LTIP impact of - € 1.9m in FY 2017 15 15 (2) IPO related cash-out : - € 15m
VERY STRONG GROWTH, WELL-BALANCED ACROSS BRANDS AND REGIONS Sales by brand Sales by region ( € m) ( € m) 12% 12% 17% 41% 50% 38% 30% Sandro Maje France EMEA Claudie Pierlot Americas APAC +3% +24% +18% +40% +21% +10% +16% 912.4 +44.0 912.4 +15.6 +30.0 +16.5 +80.5 +53.6 +12.0 786.3 786.3 +16.0% +16.0% Sales FY 2016 Sandro Maje Claudie Pierlot Sales FY 2017 Sales FY 2016 France EMEA Americas APAC Sales FY 2017 16 16
Adj. 1 EBITDA UP 18.6%, MARGIN REACHING 16.8% Adj. 1 EBITDA Margin bridge ( € m) (% of sales 5 ) 16.8% € 3.3m € 20.8m 16.5% -39.7% € 153.7m € 129.6m 76.9% +18.6% -20.3% 37.1% 16.8% 1 1 FY16 EBITDA Sales Margin FY17 adj. EBITDA Gross margin (2) Store costs Retail margin 3 SG&A 4 Adj. EBITDA (Pro forma) margin % of sales x % Adj. 1 EBITDA stands at € 153.7m in 2017, up +18.6% vs. LY / Adj. 1 EBITDA margin stands at 16.8%, up +0.3pt vs. LY driven by strong retail margin / Retail margin is supported by growing share of e-commerce and Asia, our most profitable channel and region / (1) FY 2017 EBITDA adjusted from LTIP impact for - € 1.9m (2) Based on management accounts – Management accounts include minor differences compared to audited IFRS accounts; Gross Margin defined as net sales after cost of goods sold before concession fees (3) Retail margin defined as EBITDA before SG&A (selling, general and administrative costs incurred at a central or corporate level and not allocated to point of sales or regional partnered retail) (4) SG&A defined as selling, general and administrative costs incurred at a central or corporate level and not allocated to point of sales or regional partnered retail. SG&A as % of sales calculated based on total net sales as per management accounts 17 17 (5) Net sales based on consolidated accounts
STRONG NET INCOME EXCLUDING ONE-OFF COSTS € m 2017 (2) Net income excluding one-off costs Adjusted EBITDA (3) 153.7 D&A & LTIP charges (36.9) Operating income before other incomes and expenses 116.8 Other income and expenses (46.7) Operating profit 70.1 Financial result (69.9) Profit before tax from continuing operations 0.2 + € 38.6m € 44.9m Income tax expense 6.1 Net income 6.3 € 6.3m (1) Adjusted pro forma condensed consolidated audited accounts to reflect the acquisition of the Group by Shandong Net income One-off costs Net income Ruyi as if it had taken place on January 1, 2016 excl. one-off costs (2) 12-month period ending December 31, 2017 (4) FY 2017 adjusted from LTIP impact for ( € 1.9m) Strong net income excluding one-off costs of € 44.9m / Net income standing at € 6.3m after the impacts of - € 38.6m of one-off costs including: / - € 41.9m of other income and expenses , out of which - € 31.6.m related to FPS and - € 10.3m IPO related costs / - € 40.5m financial charges related to the early redemption of bonds for - € 20.8m and shareholder loan non-cash interests / for - € 19.5m (extinguished at IPO) + € 43.8m favourable tax impact due to the deduction of one-off costs as well as non-cash tax gains related to the / change in French long term tax rate 18 18
SOLID FCF GENERATION - € 44.0m - € 49.0m € 153.7m - € 15.3m € 60.7m € 45.4m 1 FY17 Adj. EBITDA Change in WC Capex FY17 FCF IPO related costs FY17 FCF (excl. IPO related costs) excl. IPO related costs Solid free cash flow generation of € 60.7m in FY 2017 excluding IPO related costs / Strong level of EBITDA at € 153.7m / Working capital impacted by timing effects / Sustained investments with - € 49.0m of capex, of which - € 28m dedicated to store expansion (57% of total capex) / Including IPO related costs for - € 15.3m, reported FCF stands at € 45.4m / 19 19 (1) Adjusted from LTIP impact for - € 1.9m, non-cash
SIGNIFICANT DELEVERAGING Total deleveraging: -1.2x Organic deleveraging: -0.6x 3.1x 2.5x 1.9x Leverage - € 60.7m € 54.0m - € 98.5m € 397.1m € 390.4m € 292.0m 1 Dec-16 FCF Taxes & Financial charges Dec-17 IPO & refinancing Dec-17 Net debt Net debt after operational Net debt deleveraging / Significant deleveraging to 1.9x coming from both operations and IPO Partial repayments of the High yield bonds up to € 271m, thanks to IPO proceeds and the use of the new RCF line / High Yield bonds to be refinanced in May 2019 / Cost of debt will be gradually reduced from c. 6% to 2.5% / 20 20 (1) Excluding one-offs related to IPO and refinancing
#3 OUTLOOK
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