COMBINED SHAREHOLDERS MEETING

Transcription

1 COMBINED SHAREHOLDERS MEETING DECEMBER 6, 2016 This document is a free translation into English of the original French slideshow. It is not a binding document. In the event of a conflict in interpretation, reference should be made to the French version, which is the authentic text.

2 CONTENTS CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2016 REVIEW OF BUSINESS GROUPS CHRISTIAN DIOR PARENT COMPANY

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5 CONSOLIDATED FINANCIAL HIGHLIGHTS Consolidated revenue (EUR billions) Main aggregates (EUR billions) Currency impact +3.3% Impact of changes in scope +0.3% Organic growth +4.6% Change at actual rates +8.2% Revenue Change * +8.2% Profit from recurring operations % Net profit, Group share %** Cash from operations before changes in working capital *** % 2014 / / 2016 * With respect to figures for the prior fiscal year ended 2015 ** Excluding the impact of the exceptional distributions in kind of Hermès shares in December 2014 *** Before tax and interest paid

6 CONSOLIDATED INCOME STATEMENT (EUR millions) Revenue 37,968 35,081 Gross margin 24,890 22,774 Marketing and selling expenses (15,190) (13,828) General and administrative expenses (2,907) (2,647) Income (loss) from investments in joint ventures and associates (1) (3) Profit from recurring operations 6,792 6,296 Other operating income and expenses (196) (298) Operating profit 6,596 5,998 Net financial income (expense) (367) 2,685 Income taxes (2,065) (2,518) Net profit before minority interests 4,164 6,165 Minority interests 2,595 3,787 Net profit, Group share 1,569 2,378

7 CONSOLIDATED FREE CASH FLOW JUNE 30, 2016 (EUR millions) Interest Operating taxes (88) Change in working capital Operating investments 8,566 (1,998) (579) (2,242) 3,659 CASH FROM OPERATIONS BEFORE CHANGES IN WORKING CAPITAL FREE CASH FLOW (*) (*) Before financial investments, transactions relating to equity and financing activities

8 CONSOLIDATED FINANCIAL STRUCTURE JUNE 30, bn 62.9bn 45% Equity Non-current assets 70% 34% Non-current liabilities Inventories Other current assets 18% 12% 21% Current liabilities Assets Liabilities and equity

9 CONSOLIDATED EQUITY AND NET FINANCIAL DEBT (EUR billions) JUNE 30, 2014 JUNE 30, 2015 JUNE 30, % 28% 24% EQUITY NET FINANCIAL DEBT GEARING

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12 CONSOLIDATED REVENUE BY BUSINESS GROUP AS % OF TOTAL REVENUE AS OF JUNE 30, 2016 (AND JUNE 30, 2015) Fashion and Leather Goods 32% (33%) 30% (30%) Selective Retailing Christian Dior Couture 5% (5%) 13% (12%) Perfumes and Cosmetics Watches and Jewelry 9% (9%) Note: eliminations and other activities = -1% of revenue 12% (12%) Wines and Spirits

13 CONSOLIDATED REVENUE BY GEOGRAPHIC REGION OF DELIVERY AS % OF TOTAL REVENUE AS OF JUNE 30, 2016 (AND JUNE 30, 2015) United States 26% (24%) France 10% (10%) Europe (excl. France) 18% (19%) Asia (excl. Japan) 27% (28%) Japan 7% (7%) Other markets 12% (12%)

14 CONSOLIDATED REVENUE BY INVOICING CURRENCY AS % OF TOTAL REVENUE AS OF JUNE 30, 2016 (AND JUNE 30, 2015) US dollar 31% (29%) Euro 23% (23%) HK dollar Yen 7% (7%) 7% (8%) Other currencies 32% (33%)

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17 CHRISTIAN DIOR COUTURE Revenue (EUR millions) Profit from recurring operations (EUR millions) , , % Up 2% at constant exchange rates Retail sales revenue: up 3% at constant exchange rates. Success of Ready-to-Wear, Accessories and Jewelry Lower operating margin mainly due to the increase in depreciation and amortization and expenses related to investments Continuation of a sustained targeted investment policy throughout the world

18 House of Dior, New Bond Street, London

19 WINES AND SPIRITS Revenue (EUR millions) Profit from recurring operations (EUR millions) , , CHAMPAGNE AND WINES 4,729 Strong revenue for the fiscal year: Up 9% at constant structure and exchange rates Greater presence in historic champagne markets Robust performance from prestige vintages Continued strategy of value and innovation for all champagne and wine brands 1, % 2016 COGNAC AND SPIRITS After a 2014/2015 fiscal year adversely affected by Chinese distributors destocking, revenue gradually recovering in the region Strong growth momentum in the United States, the Caribbean, Africa, and the travel retail market Ambitious plan to expand Hennessy s manufacturing capacity

20 FASHION AND LEATHER GOODS Revenue (EUR millions) Profit from recurring operations (EUR millions) , , , ,474 +3% Up 2% at constant structure and exchange rates Louis Vuitton: - strong creative momentum, illustrated by major innovations across its various business lines - continued development of iconic lines - success of more recent designs Strong growth achieved by Fendi and Céline driven by the development of all their product categories Loro Piana s Gift of Kings collection performed well, and the brand opened a flagship store on Avenue Montaigne in Paris Continued repositioning of Marc Jacobs Agreement announced for sale of Donna Karan

21 PERFUMES AND COSMETICS Revenue (EUR millions) Profit from recurring operations (EUR millions) , , % Up 8% at constant structure and exchange rates PARFUMS CHRISTIAN DIOR Parfums Christian Dior s excellent momentum fueled by the vitality of iconic fragrances J adore and Miss Dior, and by the exceptional success of Sauvage GUERLAIN New make-up collection inspired by fragrance La Petite Robe Noire and continued success of the Abeille Royale and Orchidée Impériale skincare lines OTHER BRANDS Strong revenue growth at Benefit Cosmetics, Make Up For Ever and Fresh Note: As of 2016, Kendo s activities, which were previously presented under the Selective Retailing business group, are now presented under Perfumes and Cosmetics. Comparative data have been restated to reflect this change, the impact of which is not significant.

22 WATCHES AND JEWELRY Revenue (EUR millions) Profit from recurring operations (EUR millions) , , % Up 6% at constant structure and exchange rates JEWELRY Bvlgari - Robust sales growth in China and the Middle East - Expansion of the B.zero1 and Diva lines - London store reopened Chaumet: development in Asia and Middle East boosted, particularly thanks to success of Joséphine and Lien product lines WATCHES Amid a mixed global market, TAG Heuer s timely refocus on its core range and success of its smartwatch Hublot: the brand s creativity and innovation capacity illustrated by Big Bang Unico Sapphire, Meca-10 and Classic Fusion Berluti models

23 SELECTIVE RETAILING Revenue (EUR millions) Profit from recurring operations (EUR millions) , , % Up 5% at constant structure and exchange rates DFS Unfavorable tourism situation in Asia, particularly in Macao and Hong Kong Development of new marketing and customer loyalty concepts SEPHORA Excellent momentum throughout the world with market share gains Sustained pace of network expansion: 77 stores opened during the fiscal year (1,661 stores as of 2016) Acceleration and expansion of an omni-channel offer Note: As of 2016, Kendo s activities, which were previously presented under the Selective Retailing business group, are now presented under Perfumes and Cosmetics. Comparative data have been restated to reflect this change, the impact of which is not significant.

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26 APPROPRIATION OF CHRISTIAN DIOR S NET PROFIT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 (4TH RESOLUTION) Net profit 665m Distributable 2,760m earnings Proposed gross cash dividend for the fiscal year 3.55 per share Interim dividend paid on April 21, 2016: 1.35 per share Final dividend: 2.20 per share Payment of final dividend: December 13, 2016

27 CHANGE IN GROSS CASH DIVIDEND PER SHARE ANNUAL DIVIDEND GROWTH IN 2016: 11% April 30, (a) 3.20 (a) 3.55 (b) (a) Excluding exceptional dividends in kind in the form of Hermès shares (b) Proposed to the Shareholders Meeting of December 6, 2016

28 COMBINED SHAREHOLDERS MEETING DECEMBER 6, 2016