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

Nov 07, 2022 •366 likes •439 views

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

  1. De sc riptio n a nd tra nsa c tio n ra tio na le July 8th, 2013 � 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 omise ” 2

  2. Histo ry a rly 19 th c e ntury : fa mily sta rt a s me rc ha nts o f wo o l � E 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 o pe ns wo o l mill a nd c re a te s L o ro Pia na . � Mid 1940’ s : F ra nc o L o 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. 3 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 4

  3. 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. � e : la rg e st we ste rn Cashme r e and baby c ashme r 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 � : pre se rving a na tural te xtile o f L otus flowe r fibe r 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. 5 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 � ate d b ra nd fro m a c c e ss to the fine st Ve r tic ally inte gr 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 oduc ts of the fine st de sign � A ne two rk o f r e s in the wo rld’ s mo st e tail stor pr e stigious loc ations 6

  4. F a st g ro wing 2012 Re ve nue e vo lutio n L uxury € millio ns Re ve nue Go o ds By b usine ss 68% 700 631 €631 millio n CAGR % 16.7% 600 557 T e xtile s 481 500 32% 396 400 Re ve nue Re st o f By re g io n E uro pe I taly 300 27% 19% Re st o f the €631 millio n 200 wo rld 2% 100 No rth Asia Ame ric a 2 30% 22% 0 2009 2010 2011 2012 * marg in : 15.6% 2012 E BI T He a dc o unt : 2 533 * Earnings before interest and taxes 7 Pro fita b le g ro wth * e vo lutio n E BI T € millio ns 120 CAGR % 58.3% 100 2012 80 L uxury E BIT * Go o ds By b usine ss 88% 60 97.9 €97.9 millio n 87.9 40 T e xtile s 12% 58.5 20 24.7 0 2009 2010 2011 2012 * Earnings before interest and taxes 8

  5. I nte rna tio na l Pre se nc e ST ORE BASE BY RE GION US: 21 W. E ur ope : 32 Italy: 19 Middle E ast: 3 E . E ur ope : 10 Re st of Asia: 31 Japan: 24 9 Ma de in I ta ly Wor ste d ya r ns Ca shme r e spinning He a d Offic e L uxur y Goods We a ving Mill spinning a nd c ombing Knitwe a r pr oduc tion a nd r e se a r c h Quar ona Valduggia Ghe mme Roc c apie tr a Sillave ngo Bor gose sia 10

  6. 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 o ro Pia na � 20 % re ma ins in L o ro Pia na fa mily’ s ha nds � Se r gio and Pie r L uigi L or o Piana maintain the ir r ole s � ise value o f €2,685 millio n (inc luding ne t de b t) 100% E nte r pr 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 • 11 De a l drive rs � Ga ins ac c e ss to one of the most de sir ands in the able br wo rld in high-quality pr oduc ts with a unique know-how � F ast gr owing a nd pr ofitable � Signific ant gr owth 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 oup Re infor c e s por tfolio with be st-in-c lass, unique br and with a r ic h he r itage 12

  7. 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 • � ing e xpe c te d to b e be low 20% ne xt ye a r Ge ar � VMH's de bt pro file , a nd de b t re la te d L imite d impac t on L ra tio s 13 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 14

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