4. moleskine lorenzo viglione final
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THE MOLESKINE JOURNEY
Past, Present, Future
Lorenzo Viglione – CEO of Moleskine
Investor day – 13 December 2017
MOLESKINE AT A GLANCE
Small company with a global reach
Multiple levers for continued value creation
Branded business with a unique cultural positioning
A strong track record of profitable growth set to
continue
• Inspired excellence and innovation to drive both paper and non-paper based products growth
• Consolidation of multichannel distribution platform, in particular Retail, to increase sales productivity
• Cultivating the local customerexperience throughstrengthened regionalpresence
• 14% top line CAGR over the last 3 years set to continue driven by all channels and geographies
• EBITDA margin expected to be maintained at minimum 25%
• Financials comparing favorably to luxury brands
• Domestic market and Europe accounting respectively for 11% and 47% of revenues
• Presence in 115+ countries with a balanced mix of developed and growth markets served through a multichannel distribution platform
• Focus on large cities consistently with main features of target customers (i.e. creative professionals living in urban areas)
• A global brand synonymous with the lifestyle-of-the-creative-class
• A lifestyle brand, not a notebook maker, recognized by a loyal customer base as well as the marketing and design communities
• The moleskine notebook, a legendary object, connecting users to a set of unique values (culture, travel,..)
| 2Investor day – 13 December 2017
BRAND: NOT A NOTEBOOK...
IDENTITY
FUNCTION
STATUS
INDIVIDUAL
EXPRESSION
Publishers
Stationery
Lifestyle
Luxury
| 3Investor day – 13 December 2017
...BUT AN IDENTITY MARKER...
"The IPhone and Moleskine are to the
knowledge worker of today what the spear and
shield were to the Spartan hoplite."
– Financial Times (12/2016)
"The IPhone and Moleskine are to the
knowledge worker of today what the spear and
shield were to the Spartan hoplite."
– Financial Times (12/2016)
- The New Yorker (05/2017)
| 4Investor day – 13 December 2017
...WITH LEGITIMACY TO EXTEND
41%
61%
63%
80%
100%
Top 5 Potential streams
for brand extensionInterbrand study 2017
(Paper=100%)
Creativity
Travel
Culture
Design
Experiences
Source> Customer Survey 2017
EXPERIENCES
Cafès
Hotels
Lounges
...
TOOLS
Writing / sketching
Travelware
Mobility services
...
Inspiring
Journeys
CONTENT
Consulting
Design
Media
Publishing
Academies
...
| 5Investor day – 13 December 2017
Vision
Mission
A global multi-category, multi channel brand, contributing to the
development and sharing of human knowledge and culture
Moleskine develops, markets and sells products and services that
provide open platforms to create, communicate and share
Moleskine is dedicated to support its users in expanding
knowledge, creativity and individual expression
| 6Investor day – 13 December 2017
| 7Investor day – 13 December 2017
Brand value
Distribution
Brand awareness
Portfolio
PILLARS OF MOLESKINE DEVELOPMENT
BUILDING THE BUSINESS THROUGH A SELF-REINFORCING LOOP
AwarenessProduct
portfolio
Distribution
| 8Investor day – 13 December 2017
The Moleskine Journey
Past, Present, Future
| 9Investor day – 13 December 2017
BUILDING THE BUSINESS THROUGH A SELF-REINFORCING LOOP: PRIORITY
TO DISTRIBUTION
AwarenessProduct
portfolio
Distribution
| 10Investor day – 13 December 2017
1995-2010: PRIORITY TO COVERING THE TERRITORY THROUGH
WHOLESALE DISTRIBUTION ….
~20K
1995 2005
0
2010
~12K
Countries
Europe
Americas
APAC
100% 67% 57%
Sales
1 65 90
- 28% 35%
- 5% 8%
Doors
evolution
| 11Investor day – 13 December 2017
… AS A WAY TO BUILD AWARENESS AND GROW SALES
CAGR
07-10
Sales growth
11% 27% 14%
15%
USA Japan
UK
53%
7%13%
6%
17%
Italy
67%
14%
42%
Germany
44%
11% 46%
Moleskine Brand Awareness evolution in key markets(% on survey respondents)
2010
2007
23%
| 12Investor day – 13 December 2017
The Moleskine Journey
Past, Present, Future
| 13Investor day – 13 December 2017
BUILDING ON THE SAME SELF-REINFORCING LOOP, BUT WITH DIFFERENT
EMPHASIS
AwarenessProduct
portfolio
Distribution
| 14Investor day – 13 December 2017
2011-2016: GRADUALLY SHIFTING TO MULTI-CHANNEL / FOCUS ON DOORS
PRODUCTIVITY ….
2016
~29K
2010
~20K
2005
~12K
Increasing number of wholesale doors(doors)
Upgrading quality of footprint
Building a retail network(# directly operated stores)
78
00
20102005 2016
Developing eCommerce(# countries)
37
10
201620102005
246
30
2016201020052016
8.3
2010
8.8
2005
2.0
Display (k) Atelier
| 15Investor day – 13 December 2017
… AND EXPANDING PRODUCT PORTFOLIO ….
60
Travel
2006 2011 2016
M+ (Digital)
W+R
Paper
571
657
Product mix evolution(SKU’s per category)
20
Travel
67
20162006
M+ (Digital)
Paper
2011
W+R
145
Sales mix evolution(M€ per category exc. royalties)
| 16Investor day – 13 December 2017
Sales
CAGR
10-16
18% 99% 16%
15
53
4442
67
27
69646262
78
27
51
6871
81
Italy JapanUK
N/A
GermanyChina
N/A
USA
19% 12%
2017
2014
2010
14%
Moleskine Brand Awareness evolution in key markets(% on survey respondents)
18%
… TO CONTINUE TO GROW AWARENESS AND BUSINESS
| 17Investor day – 13 December 2017
The Moleskine Journey
Past, Present, Future
| 18Investor day – 13 December 2017
A global multi-category, multi channel brand,
contributing to the development and sharing of
human knowledge and culture
FULFILLING THE VISION...
| 19Investor day – 13 December 2017
… BY SYNERGIZING BETWEEN PAPER AND NON-PAPER FOR CONTINUED
GROWTH OF AWARENESS / ENGAGEMENT AND BUSINESS
Revenues Awareness
Paper
Travel /
Bags
Moleskine+
/ Digital
Cafè
Writing
Tools
• Moderate impact, limited
• Higher impact through additional
distribution, some earned media
• Major impact through additional
distribution, significant earned media
• High impact through traffic, deep
brand experience, good earned media
• Moderate impact, limited
€€€€
€€€
€€
€€
€
| 20Investor day – 13 December 2017
Product portfolio - Develop paper and non-paper categories
BUILDING ON ALREADY EXISTING INITIATIVES
• Reinforce capabilities and penetrate
specialized channel
• Expand mainly through franchising
(travel) and selective JVs (urban)
• Development of new products and
services with partners
Paper
Bags & SLG
Moleskine
Cafè
Digital
• Evaluate potential tactical partnership to
enlarge product range
Writing
Tools
83%
7%
3%3%
MSK Cafè
2016 Medium
term
Accessories & others
Writing Tools
Bags & SLG
Digital
100%
Paper
| 21Investor day – 13 December 2017
• Increase limited editions and premium
products
Distribution - Increase proximity to target customers
BUILDING ON ALREADY EXISTING INITIATIVES
• Direct model in key markets
• Trade marketing and space management
• Moderate doors increase
• Improve Retail performances
• Retail 2.0
• Network development
• Boost traffic
• Increase conversion
• Develop omnichannel
• Large deals development
Wholesale
Retail
eCommerce
B2B
57%
22%
15%
6%
Wholesale
Medium
term
2016
100%
Ecommerce
Retail
B2B
| 22Investor day – 13 December 2017
SIX KEY AREAS OF INVESTMENT TO REACH GROWTH AMBITION
Increase market proximity by further
decentralizing towards geographies
• Local empowerment with HQ
coordination/target setting
Reinforce / add critical skills
• Strategic marketing
• Non-paper products
• Digital and CRM
• Retail excellence
• Strengthen organization to support growth (+25% FTE in 2017)
• Investment in human capital by fostering creativity and internal
culture
Develop CRM and reporting systems
to support channel integration
Increase digital marketing, events
and BTL for continued growth of
brand and product awareness
Grow existing channels and open new ones
• 60%/40% split between existing and new
Proximity
Competencies
People
Communication
Systems
Channels
| 23Investor day – 13 December 2017
Financials and Guidance
| 24Investor day – 13 December 2017
HISTORICAL FINANCIALS
29,1 33,5 33,6 33,7 42,3EBITDA adj. (M€) 22,7
27,6 30,4 22,0 25,3 34,8EBIT (M€) 20,7
21,3 27,1 18,5 24,1 34,6PBT (M€) 18,6
41,9
34,0
32,9
- 19% 20% 29% 25%-Operating ROCEafter tax*
17%
NOTE: EBITDA Adj. = EBITDA excluding non recurring transactions and special items identified by management to normalize group performance over the reporting periods;*Figurative tax of 30%; Capital Employed = Tangibles + Intangibles - GW + NWC;
| 25Investor day – 13 December 2017
COMMENTS
Development of DOS network
Direct Distribution in Wholesale
Non-paper products
� 2013-2014: strengthening the
distribution platform to increase
customer proximity (i.e. direct
distribution in US and Germany)
and start of Retail network
expansion
� 2015: benefits of increased
customer proximity and positive
exchange rate impact (USD)
� 2016: Positive results from
strengthened distribution model
partially offset by weaker than
expected Retail performance and
higher proportion of sales from
lower margin categories (i.e. SWS)
0
10
20
30
40
50
60
70
50
0
100
150
2015
128.1
28.8%
145.6
2016
%
34.2%
98.7
33.0%
20142013
87.0
38.6%
2012
78.0
M€
42.9%
2011
67.3
43.2%
2010
53.4
42.5%
EBITDA% (adjusted)
Net Sales
CONTINUED STRONG CASH GENERATION DESPITE EVOLVING BUSINESS MODEL
40
50
60
70
80
9045
20
35
5
-5
10
30
0
15
40
25
20162015
5.1
9.7
84.2%
M€
2014
%
64.1%25.3
6.9
21.5
2013
75.1%33.7
2.9
-3.1
5.5
72.8%
30.8
5.6
5.9
35.3
33.6
42.341.9
Capex
FCF (pre-tax)
Change in working capital
| 26Investor day – 13 December 2017
∑=EBITDA Adjusted
NOTE: EBITDA Adj. = EBITDA excluding non recurring transactions and special items identified by management to normalize group performance over the reporting periods;
2017 : A TRANSITION YEAR
• Fit-for-growth initiatives and organizational developments driven by new
shareholders’ long term strategic vision
• Integration-driven one-off costs (e.g. strategic planning, delisting, merger,
HR policies, CSR,…)
• Challenging retail environment and change in leadership team in the US
• Retail results below expectations with mixed performances by
geographies to be addressed in 2018 by delivering operational excellence
High single digit expected top line growth with EBIT margin below historical
performance mainly reflecting:
| 27Investor day – 13 December 2017
FINANCIAL AMBITION
Clear roadmap for achieving low double digit sales growth
Resumed Adjusted EBITDA margin trajectory of 25% underpinned
by strengthened organization and strategic initiatives
Strong cash flow generation with sustained cash
conversion to fund growth and financial deleverage
Target ROCE of 14%*
*by 2022; EBIT before tax/CE, where CE is equal to EV at acquisition, i.e. 506M€;
| 28Investor day – 13 December 2017
FORWARD LOOKING STATEMENTS
| 29
This document contains forward-looking information that involves risks and uncertainties, including statements
about D'Ieteren’s plans, objectives, expectations and intentions. Readers are cautioned that forward-looking
statements include known and unknown risks and are subject to significant business, economic and competitive
uncertainties and contingencies, many of which are beyond the control of D'Ieteren. Should one or more of these
risks, uncertainties or contingencies materialise, or should any underlying assumptions prove incorrect, actual
results could vary materially from those anticipated, expected, estimated or projected. As a result, D'Ieteren does
not assume any responsibility for the accuracy of these forward-looking statements.
Investor day – 13 December 2017
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