Corporate presentation

Transcription

1 Corporate presentation To be among the best developers of sports and fashion brands August 2012

2 Index 1 INTRODUCTION 2 HISTORY 3 ORGANISATION 4 BRANDS 5 CORPORATE STRATEGY 6 KNOWLEDGE CENTRE 7 CORPORATE SHARED SERVICES 8 CORPORATE RESPONSIBILITY 9 FINANCIALS IC COMPANYS PAGE 2

3 One of the top 5 largest sports and fashion companies in the north Introduction 1 BRANDS 11 Scandinavian sports and fashion brands SIZE Revenue DKK 3.8b and employees 2,217 SOURCING Offices in China, Hong Kong, India and Romania DISTRIBUTION Own retail, outlets, e-commerce, franchise and wholesale AROUND THE WORLD Nearly 500 stores and more than 10,000 wholesale selling points in more than 40 countries Note: All numbers are from the annual report 2011/12 IC COMPANYS PAGE 3

4 Proud heritage in Scandinavian fashion History 2 INWEAR GROUP 1969: InWear is founded 1973: Matinique is launched 1973: First Danish fashion brand to set up Asian production 1974: First subsidiaries in Sweden and Norway CARLI GRY 1948: Carli Gry is founded 1973: Klaus Helmersen takes over the company 1974: Jackpot is launched 1980: First own retail store in Copenhagen 1986: Part Two is launched 1996: Listed on the Copenhagen Stock Exchange 2001: IC Companys is formed through merger 1986: Cottonfield is launched 1996: Listed on the Copenhagen Stock Exchange 1998: Peak Performance acquisition 2001: IC Companys is formed through merger IC COMPANYS PAGE 4

5 Portfolio strengthened by acquisitions and start-ups History 2001/ / /2004 ACQUISITION START-UP IC COMPANYS PAGE 5

6 Experienced management team with high execution power Organisation 3 Niels Mikkelsen, CEO Chris Bigler, CFO Anders Cleemann, EVP Peter Fabrin, EVP INDUSTRY EXPERIENCE More than 60 years in total sports, fashion and fast-moving consumer goods FRAMES AND PRINCIPLES Generating growth through frames and principles CRISIS MANAGEMENT Crisis management securing profitability and strength STABILITY Cash flow management providing stability and risk reduction IC COMPANYS PAGE 6

7 Separate brand organisations with full responsibility of own value chain Organisation Chief Executive Officer Executive Management Corporate Business Development Human Resources Corporate Responsibility Finance IT Chief Financial Officer Investor Relations & Communication Legal Logistics Executive Vice President Global Sourcing Executive Vice President Peak Performance InWear & Matinique Tiger of Sweden Jackpot Cottonfield Designers Remix (51% ownership) By Malene Birger Part Two Companys IC Companys Canada Saint Tropez Soaked in Luxury Note: Brands include own value chain (design, sourcing, product management, marketing, wholesale, retail, franchise, e-commerce) IC COMPANYS PAGE 7

8 Developing 11 sports and fashion brands with a great potential Brands 4 IC COMPANYS PAGE 8

9 Premium Brands Brands TIGER OF SWEDEN Founded 1903 on a strong confection tradition and solid tailoring skills Revenue DKK 633m BY MALENE BIRGER Founded 2003 based on design-driven passion Revenue DKK 272m PEAK PERFORMANCE Founded 1986 with roots in skiing Revenue DKK 971m DESIGNERS REMIX Founded 2002 on minimalistic elegance Revenue DKK 87m Note: All numbers are from the annual report 2011/12 IC COMPANYS PAGE 9

10 Brands in Mid Market Brands PART TWO Founded 1986 working with sensual vs. raw Revenue DKK 249m INWEAR & MATINIQUE Founded 1969 & 1973 with roots in urban living Revenue DKK 370m & 280m, respectively JACKPOT Founded 1974 with casual and colourful styles Revenue DKK 362m COTTONFIELD Founded 1986 on comfortable and casual menswear Revenue DKK 165m Note: All numbers are from the annual report 2011/12 IC COMPANYS PAGE 10

11 Brands in Fast Fashion and our Companys concept Brands SAINT TROPEZ Founded 1986 on young, independent femininity Revenue DKK 305m SOAKED IN LUXURY Founded 2005 based on a vibrant, international design Revenue DKK 90m COMPANYS Franchise concept based on 6 own female brands 39 stores in total Note: All numbers are from the annual report 2011/12 IC COMPANYS PAGE 11

12 Vision: to be among the best developers of sports and fashion brands Corporate strategy 5 FREEDOM WITHIN THE FRAMEWORK Respect of each individual brand entrusting it with full ownership of the value chain Best practice sharing in key areas of the value chain Corporate Shared Services with targeted operational responsibilities HIERARCHY OF SYNERGIES 1. Knowledge sharing through execution of 7 business disciplines 2. Targeted operational synergies based on brands needs 3. General operational cost synergies across all brands STRATEGIC FOCUS AREAS Building strong brands Having a focused market approach Increasing controlled distribution Optimising our processes and value chain Practising strong leadership IC COMPANYS PAGE 12

13 Mission: to build successful brands by uniting business excellence with creativity and innovation Corporate strategy KNOWLEDGE CENTER Retail/franchise Wholesale E-commerce New markets Sourcing Collection development Marketing/brand building CORPORATE SHARED SERVICES Sourcing, Logistics, IT Finance, Legal, HR Corporate Responsibility IC COMPANYS PAGE 13

14 Ambition: to gradually develop into a group where the majority of revenues derive from the Premium segment Brands DIFFERENT BRAND SEGMENTS WITH DIFFERENT POTENTIALS Focus on growth and internationalisation in Premium segment Focus on core markets in Mid Market and Fast Fashion segment Luxury (High price) Sport/lifestyle Contemporary Formal Casual Jeans Premium (Upper mid price) Mid Market (Mid price) Fast Fashion (Low price) IC COMPANYS PAGE 14

15 Our knowledge centre facilitates a systematic and iterative knowledge sharing process Knowledge centre 6 KNOWLEDGE CENTRE Knowledge sharing and innovation Defining best practice Implementation and adaptation of best practices BRAND IC COMPANYS PAGE 15

16 Frames and principles are catalogues of best practice guidelines implemented throughout the organisation Knowledge centre FRAMES AND PRINCIPLES Marketing Vision Vision Build a strong brand with loyal end-consumers and support high sales performance Sourcing Vision KEY LEVERS Vision The marketing strategy is clearly defined and reflects the brands strategic priorities Build STRATEGIC APPROACH a There strong is a detailed brand understanding with loyal of the end-consumers marketing spend and a and clear rationale support for the high sales performance Collection allocation Development Vision Marketing is an integrated part of the ongoing business planning process KEY LEVERS Vision TARGETS Marketing initiatives are coordinated across channels to achieve maximum impact CROSS CHANNEL There Develop is a structured, The collections marketing operational strategy marketing that is clearly reflect planning defined the process and brand reflects plans the DNA brands are known and strategic positioning, priorities Not applicable meet end-consumer needs OPERATIONAL DEFINED PLANNING STRATEGY and understood There by all is relevant a detailed parties understanding of the marketing spend and a clear rationale to for marketing the AND OPERATING MODEL We and know New the supports expected Markets allocation effect the of business all initiatives Vision and and follow financial up on the actual objectives impact of the brand Marketing is an integrated part of the ongoing business planning process KEY LEVERS The brand DNA Vision clearly defined and executed consistently over time and across TARGETS CONSISTENT BRAND channels and consumer Marketing touch initiatives points are coordinated across channels to achieve maximum impact EXECUTION CROSS CHANNEL Marketing is consulted There is a in structured, all decisions Collections operational relating are aligned to marketing external the communication planning brand strategy process and and and takes they plans are are continuously known optimized Not applicable to OPERATIONAL STRATEGIC PLANNING an active AND role in identifying Build and a and understood support strong by correcting all relevant the short- brand communication parties long with term that loyal financial is not end-consumers on targets brand and support high sales performance to marketing COMMERCIAL APPROACH Wholesale Vision We know the expected Collections effect reflect of all the initiatives brand DNA and and follow there up is on a clear the actual understanding impact of the target group and their needs Consumer insights are collected in a structured approach on a continuous basis KEY LEVERS LEVERAGING CONSUMER Vision TARGETS Insights are used The actively brand DNA to manage is clearly the defined brand and optimize executed consumer consistently over time and across INSIGHTS CONSISTENT BRAND communication channels and messaging and consumer Collection touch structure points takes into consideration consumer buying behavior and gives STRUCTURED COLLECTION EXECUTION Marketing is consulted designers PLANNING To in be and all decisions a sourcers The profitable marketing a relating clear strategy frame to external and is clearly direction preferred communication defined for the and creative wholesale and reflects takes development the brands partner strategic priorities through Not defined simplification, DEFINED an STRATEGY active role in Price identifying and gross and There margin correcting is a targets detailed communication are understanding differentiated that is of across not the on marketing product brand groups spend and styles a clear rationale for the (before) AND OPERATING MODEL Competitor insights are collected where innovation E-Commerce in appropriate allocation and effectiveness Vision for collection a structured approach on a continuous basis Marketing is an integrated part of the ongoing business planning process development Competitor insights are used the business planning process COMPETITOR INSIGHTS Consumer KEY insights LEVERS are collected a structured approach on a continuous basis LEVERAGING CONSUMER Insights are used The actively collection to manage development Vision TARGETS the brand process and is optimize optimized consumer to support the brands business INSIGHTS EFFICIENT PROCESS communication model and messaging Marketing initiatives are coordinated across channels to achieve maximum impact (during) CROSS CHANNEL The process is standardized There is a structured, to We ensure choose operational consistent new markets marketing execution based over planning on time growth process potential, and plans competitor are known analysis and the Not overall applicable market attractiveness OPERATIONAL DEFINED PLANNINGSTRATEGY and AND Profitable, understood We by have all high relevant ambitious performance parties growth plan where e-commerce goals and objectives stores are based which on the drive to potential multi-channel marketing each market along expansion with OPERATING MODEL We know Retail/Franchise the expected a road map effect for of execution all initiatives Vision and follow up on the actual impact Competitor insights are collected in a structured Our approach organizational on a set-up, continuous roles basis and responsibilities effectively contribute to our profitability Competitor insights The brand are used priorities in the are business clear and planning give direction process to individuals decision making COMPETITOR INSIGHTS UNDERSTANDING COST AND KEY 2 SALES DRIVERS All functions LEVERS are The trained brand to- DNA and Vision have clearly the defined necessary and information executed consistently to make over time and across CONSISTENT BRAND informed decisions channels during and the consumer We develop collection touch and development points expand our distribution by taking a strategic approach in our customer selection and drive growth process (during) EXECUTION OUTSTANDING CUSTOMER Marketing is consulted through effective all decisions We Key have Account relating a clearly management to defined external value communication disciplines proposition for and the takes online store and have defined how the ACQUISITION DEFINED & an active STRATEGY role in AND Our identifying Outstanding innovative online business correcting channel models and communication fits offer into highly a our clear overall that value profitable is business not proposition on brand strategy inspiring retail our concepts customers to engage with long potential term partnerships for expansion RETENTION OPERATING MODEL We optimize our The distribution objectives based and goals on detailed, are based structured on the potential mapping in & each segmentation market along with a road Collection performance is systematically analyzed to understand performance and FACT BASED FOLLOW-UP to identify the drivers Consumer of success insights We and are prioritize failure collected our map, time organisation in a structured and resources and approach based processes on on a customers get there continuous potential basis and profitability AND EVALUATION KEY LEVERS LEVERAGING CONSUMER Facts and figures Insights and key are 1 learning s used actively are used to manage in future the collection brand and developments optimize consumer (after) INSIGHTS communication We and work messaging The customer acquisition investment is optimised across channels and we have OUTSTANDING CUSTOMER efficiently by making detailed New markets action are plans chosen that we based are on accountable growth potential, for and competitor follow up regularly analysis and the overall market detailed understanding of the economics to deliver to the objectives EXCELLENT ACQUISITION AND We develop existing customers by attractiveness challenging and coaching them in frequent meetings and yearly appraisals There is a defined programme aligned to the customer lifecycle along with tactics OPERATIONSRETENTION DEFINED We engage STRATEGY with our customers on We an have ongoing an ambitious basis to play growth an plan active where role in goals optimizing and objectives their sales are performance based on the potential in each to engage each customer type based on customer insight Competitor insights are collected in a structured market approach along with a continuous a road map basis for execution AND OPERATING MODEL Competitor insights are used in the business planning process COMPETITOR INSIGHTS Our Buying & Replenishment We have a clear are based perspective on the on brand as well strategy as rationale and aligned for which to the locatons should be retail and franchise 2 Our shopping environment customers online embodies Our purchase organizational all aspects behaviour of set-up, the brand roles identity. and responsibilities The showrooms, are aligned with our strategy and effectively the dialogue, the presentation etc. ENGAGING CUSTOMER EXCELLENT OPERATIONS We closely monitor contribute our inventory to our position profitability and react quickly to changes in demand We inspire our We customer plan and to buy execute through promotions a innovative which approach deliver to the objective and serve up highquality to do content business which Our with stores is us relevant through are well and multiple known on-brand sales highly pointsactive in the local community EXPERIENCE OUTSTANDING CUSTOMER We make it easy ACQUISITION & RETENTION We focus on building strong customer relationships through a defined retention programme The look & feel embodies all aspects of the brand identity. The site planning and ENGAGING CUSTOMER Our marketing feature and merchandising selection 1 helps efforts and are inspires integrated the customer across channels to buy and to complete ensure the tasks WORLD-CLASS EXPERIENCE MULTI- consistent messaging, the user enforcing wants to Our perform operational principles for store operation, buying, VM and staff planning are a unique and engaging experience CHANNEL INTEGRATION Our offline and We online are propositions actively updating defined are aligned and based maintaining on best and we serve our practice the product customer categories, across landing/category EXCELLENT OPERATIONS channels, contributing pages to to keep an engaging the Our store ability experience fresh to and implement relevant and profitable is effective business at all levels (HQ, Area management, Store) Our marketing and We merchandising monitor our cost efforts base are closely integrated and take across corrective channels actions to ensure to ensure maximum profitability at all times WORLD-CLASS MULTI- consistent messaging, enforcing a unique and engaging experience CHANNEL INTEGRATION Our offline and online Our customers propositions 2 see are our aligned stores and as an we experience serve the customer standing out across in the retail landscape ENGAGING CUSTOMER channels, contributing The customer an engaging experience experience captures and the profitable brand identity business through an inspiring approach to EXPERIENCE assortment, store design and customer service DEFINITION A catalogue of best practice principles for each of the 7 disciplines All catalogues have a standardised structure: Discipline vision Key levers Focus areas Frames and principles WORLD-CLASS MULTI- CHANNEL INTEGRATION Our marketing and merchandising efforts are integrated across channels to ensure consistent messaging, enforcing 2a unique and engaging experience Our offline and online propositions are aligned and we serve the customer across channels, contributing to an engaging experience and profitable business 2 IC COMPANYS PAGE 16

17 Shared Services functions are based on value creation and deliver services based on brands needs Corporate Shared Services 7 AN EFFICIENT SERVICE PLATFORM From 55% of total cost and 1,800 employees to 15% of total cost and 400 employees IC COMPANYS PAGE 17

18 We believe in integrating corporate responsibility in all parts of our organisation Corporate responsibility 8 WE SUPPORT THE 10 PRINCIPLES OF THE UN GLOBAL COMPACT Based on internationally adopted declarations and conventions on human rights, labour rights (People), environmental protection (Planet) and anti-corruption (Profit) INTEGRATED THROUGHOUT THE ORGANISATION Responsibility for issues and targets are assigned to the relevant internal functions PEOPLE PLANET PROFIT IC COMPANYS PAGE 18

19 A financially solid company with steady cash flow Financials 9 FOCUS ON CONTINUOUSLY IMPROVING FUTURE EARNINGS Revenue of DKK 3.8b, EBIT of DKK 130m and free cash flow of DKK 150m FY 2011/12 CYCLIC EARNINGS BUT STEADY CASH FLOW Strong free cash flow averaging DKK 186m last five years Investments to be kept around 3% of annual revenue WORKING CAPITAL IN CONTROL Expected not to exceed 12% of annual revenue STRONG FINANCIAL POSITION WITH LOW NET DEBT Net debt of DKK 248m corresponding to 1.0 times EBITDA in 2011/12 Net debt target of zero and limit of 3 times EBITDA CONTINUED DIVIDENDS TO OUR SHAREHOLDERS 30% of the net profit to be distributed as dividend IC COMPANYS PAGE 19

20 Financial guidelines to secure steady high cash flows Financials ASSET LIGHT Maximises strategic manoeuvrability and secures a steady high cash flow FIXED TO VARIABLE COSTS Secures stable profitability in a volatile economic environment PRIORITISING INVESTMENTS Maximises returns securing future access to capital HIGH INVENTORY TURNOVER Reduces costs by freeing up capital for other purposes and ensuring continuous flow of inseason products STRICT CREDIT CONTROL Frees up capital for other purposes and ensures a healthy customer base IC COMPANYS PAGE 20

21 IC COMPANYS PAGE 21