ag 2009 assemblee generale mixte 2 juin 2009 anglais
TRANSCRIPT
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
1/58
1
1
Combined general meeting
as of 2nd June 2009
Combined general meeting
as of 2nd June 2009
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
2/58
2
2
general assessment of the year 2008
A contrasted year 1st half : strong growth in sales and results
2nd half : slowdown
8.4 %+ 4.0 %+ 14.1 %Current operating profit
8.6 %+ 5.2 %+ 12.8 %Sales
Total2nd half1st halfGrowth rate
Sales growth despite the crisis
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
3/58
3
3
general assessment of the year 2008
From strong to average growth
From weak to strong dollar and yen
Currencies which have modified travel flows
Currency effect which have brought sometimes dissuassive price
increases
2008 : a contrasted year
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
4/58
4
4
general assessment of the year 2008
Confirmation of a consistent style permanently reinvented
A seducing creation and a permanent offer renewal
Vision of a Herms craftsman
Long term strategy has been maintained :
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
5/58
5
5
general assessment of the year 2008
Our most legitimate product lineshave well progressed
- 2 %Distribution via specialised outlets
+ 11 %Distribution via the Herms exclusive network
- 5 %Other Herms Sectors
+ 10 %Ready-to-wear & Fashion accessories+ 11 %Silk & Textiles
+ 14 %Leathergoods & Saddlery
- 9 %Watches
- 4 %Tableware
+ 6 %Perfumes
Proforma changes at constant rates 2008/2007
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
6/58
6
6
general assessment of the year 2008
Our difference expressed though our stores and our rich offer
China, USA, Europe, France
Extension of our network has been pursued
Geographical balance strategy
Success
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
7/58
7
7
general assessment of the year 2008
As at end of 2008 : 11 branches 3 concessionaries
2008 turnover : 47 Mi.e. 3 % of the group total, and 1/7e of Japan
Strong growth : + 80 % in 2008 / 2007
after + 90 % in 2007/2006
Target to maintain a strong growth, with a yearly pace of 2 stores
openings
Strong developpment of our presence in Mainland
China
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
8/58
8
8
general assessment of the year 2008
Service improvement has been maintained Luxury Institute : Herms n 1
All staff stick to the corporate project, and possibility for all to
participate
Reactivity being renforced through an increased delegation anddecentralization
Success
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
9/58
9
9
general assessment of the year 2008
Japan : slight decrease, due to the crisis, recession, demographyand currencies
Watches : rescheduling of our network in Japan
Growth relays making a break, after several successful years
Further improvements
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
10/58
10
10
general assessment of the year 2008
Information by Sectors 2008/2007Ready-to-wear & Fashion
accessories
19 % 19 %
Perfumes7 % 7 %
Watches
5 % 7 %
Tableware3 % 3 %
Other Herms sectors5 % 5 %6 % 5 %
Leathergoods &
Saddlery43 % 42 %
Silk & Textiles12 % 12 %
Other Products
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
11/58
11
11
general assessment of the year 2008
Developpment of new activities
Herms Intrieur & Design
joint-venture with Wally
acquisition of 10 % in Jean Paul Gaultier bringing our
participation to 45 %
Achievements
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
12/58
12
12
general assessment of the year 2008
Creation of the Herms corporate Foundation
Achievements
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
13/58
13
13
general assessment of the year 2008
Support to the creation of young European designers
Achievements
1st edition : la lgret au quotidien
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
14/58
14
14
general assessment of the year 2008
Improvement of the supply chain being pursued :start in August 2009
Launching of the web site Les ailes dHerms :more than 250 000 visitors per month
Achievements
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
15/58
15
15
2008 : environment
To minimize the use of natural resources
To adequate utilization of raw materials
Control of quantitative and qualitative material rejections
Reminder of our targets related to the environment :
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
16/58
16
16
2008 : environment
Since 2002, water consumption has decreased by 40% at constantperimeter (*), as the increase of our industrial activity has been similar to
that of the group.
(*) excluding consumption of the 3 Soficuir tanneries since 2007
0
100 000
200 000
300 000
400 000
500 000
600 000
2002 2003 2004 2005 2006 2007 2008
Evolution of water consumption
Achievement :
In m3
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
17/58
17
17
Currentrates
general assessment of the year 2008
Growth in sales and steadiness of the current operating
margin at 25.5% of sales
Constantrates
Turnover
Current operating income
Net result
+ 10.2 %
+ 17.0 %
+ 9.0 %
+ 8.6 %
+ 8.4 %
+ 0.8 %
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
18/58
18
18
general assessment of the year 2008
Evolution of the current operating profit
Operating
improvement
Operating
improvement
+ 70+ 70
Currencyeffect
Currencyeffect
- 36- 36Current operatingprofit 2007
Current operatingprofit 2007
415 M415 M
449 M449 MCurrent operating
profit 2008Current operating
profit 2008
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
19/58
19
19
general assessment of the year 2008
Financial strength
25.5 %Operating margin
450 MNet cash
1 605 MEquity
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
20/58
20
20
2008 : creation
Researc
h
Inspiration
Ideas
Skills
Passion
IndustryCraftsmanship
Innovation
Know-how
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
21/58
21
21
2008 : innovation
Herms Editor : Josef Albers scarf
Bugatti Veyron Fbg
Cape Cod Great Hours
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
22/58
22
22
2008 : meetings & talents
20 years of Men ready-to-wear
Storytellers on Silk
Un Jardin aprs la Mousson
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
23/58
23
23
2008 : growth in all regions except Japan
Activity by geographical areas
+ 12 %Europe (excl. France)
+ 15 %Americas
+ 22 %Asia-Pacific (excl. Japan)
+ 10 %France
- 3 %Japan
Changes at constant rates
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
24/58
24
24
2008 : balanced sales by geographical zones
breakdown of sales 2008 / 2007
15 %
(1) Including sales to airline companies
Others (1)
3 %
21 %
20 %
Europe(excl France)
22 %
18 %
Americas
Japan
24 %
17 %
3 %
22 %
20 %
Asia-Pacific(
excl Japan)
15 %
France
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
25/58
25
25
2008 : the pace of new stores remains sustained
12 new branches
10 new concessionaries
13 refurbishments and enlargements of branches
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
26/58
26
26
2008 : the pace of stores creations remains sustained
Concessionaries
136 145156
110 107
133
104
111
2004 2005 2006 2007
Branches
121
165
2008
286286
237237246246 252252
267267
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
27/58
27
27
Human Resources
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
28/58
28
28
2008 : human resources
439 new employees in 2008 Headcount amounted to 7 894 as at end of 2008
Many job creations :
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
29/58
29
29
2008 : human resources
Job creations have continued in 2008
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
4 1504 150 4 2724 272
4 6424 642 4 9434 943
5 3615 3615 5945 594
5 8715 8716 1506 150
6 8256 825
7 4557 455
7 8947 894
2008
30
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
30/58
30
30
2008 : human resources
Balance production / sales workforce
Support
17 %
Sales
38 %
Production
45 %
31
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
31/58
31
31
2008 : human resources
Herms Manufactures
32
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
32/58
32
32
France(primarily production 42 %)
2008 : human resources
Two third of workforce in France
Japan
9 %
Asia-Pacific(excl Japan)
11 %
Europe(excl France)
10 %
63 %
Americas
7 %
Women : 67 %
Men : 33 %
33
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
33/58
33
33
Presentation of consolidated statements
3
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
34/58
3
4
34
2008 : consolidated statements
1625
1055
- 570
- 70
Turnover
Gross profit
Administrative & commercial expenses
Other income & expenses
In millions of euros
1765
1140
- 612
- 79
2008 2007
449 415Current operating income
3
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
35/58
3
5
35
+9
424
12
- 144
2
- 6
290Net income groups share
Non current other income & expenses
Operating income
Net financial income
Corporate income tax
Share of net income of associates
Minority interests
In millions of euros
449
18
- 160
- 11
- 5
2008 2007
2008 : consolidated statements
288
Current operating income 449 415
36lid d
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
36/58
36
36
Distribution
Production
Financial investments
Others
In millions of euros 2008
88
27
5
40
160Total investments*
*excluding financial placements
2008 : consolidated statements
Investments
378 lid d
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
37/58
37
37
Cash flow
In millions of euros
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
125
162
221
242
273259
292306 322
357
379
2008
2008 : consolidated statements
388 lid d
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
38/58
38
38
Cash flow from operations
Investments
Change in operating working capital
Dividends
Share buybacks
Others
In millions of euros 2008
379
- 160
- 81
- 111
- 51
- 6
Change in net cash position - 30
Cash flow statement
2008 : consolidated statements
398 lid t d t t t
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
39/58
39
39
Shareholdersequitybefore appropriation
Net cash
In millions of euros
450
1 605
2008
1 475
2007
480
Shareholdersequity and net cash
2008 : consolidated statements
402008 lid t d t t t
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
40/58
40
40
Assets
Non current assets
Inventories
Other current assets
Cash & cash equivalents
Total
As at 31st Decembre, in millions of euros
2008
998.0
523.6
320.5
485.8
2327.9
Simplified consolidated balance sheet
2008 : consolidated statements
2007
844.5
432.1
258.6
529.9
2065.1
412008 : consolidated statements
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
41/58
41
41
Liabilities & Shareholdersequity
Shareholdersequity before appropriation
Provisions
Other liabilities
Total
2008
1604.8
69.7
653.4
2007
2065.1
1475.1
60.4
529.6
2327.9
Simplified consolidated balance sheet
2008 : consolidated statements
As at 31st Decembre, in millions of euros
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
42/58
43
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
43/58
43
43
Direction fees and remuneration
of the Supervisory Board (6e
)
Maximum total amount increased to 282 000
Including remunerations to the committees members Including a variable portion based on presence
Presentation of main resolutions
Resolutions on ordinary business
Presentation of main resolutions
Resolutions on ordinary business
44
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
44/58
44
44
Share buyback program (7e)
Authorisation up to 10 % of the capital
Maximum amount of funds to be committed :750 millions deuros
Purpose : ensuring the liquidity through a contract, cancelling,transfering, alloting to employees and stock options
Maximum purchase price : 200 euros
Term : 18 months
Authorisation to cancel shares (9e)
Authorisation up to 10 % of the capital
Term : 24 months
Presentation of main resolutions
Resolutions on ordinary and extraordinary business
Presentation of main resolutions
Resolutions on ordinary and extraordinary business
45
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
45/58
45
45
Delegations of authority to the Executive Management
to carry out capital increase (10e
12e
) Common ceiling to 20 % of the capital
Term : 26 months
Delegations of authority to the Executive Managementto carry out capital increase reserved to employees (13e)
Authorisation up to 1% of the capital
Term : 26 months
Presentation of main resolutions
Resolutions on extraordinary business
Presentation of main resolutions
Resolutions on extraordinary business
46
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
46/58
46
46
Delegations of authority to the Executive Management to
grant stock options (14e
) and award bonus shares (15e) Term : 38 months
Common ceiling of 2 % of the number of existing shares for bonus
shares and stock options
Grant to the Executive Manager with performance conditions andobligation to keep the shares
Presentation of main resolutions
Resolutions on extraordinary business
Presentation of main resolutions
Resolutions on extraordinary business
47i f i l ii f i l i
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
47/58
47
47
Change in the Articles of Association (16e)
Article 18.2 : to set up a renewal of the Supervisory Boardmembers by one third each year
Presentation of main resolutions
Resolutions on extraordinary business
Presentation of main resolutions
Resolutions on extraordinary business
482008 : dividend
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
48/58
48
48
Dividend per share proposed by the Supervisory Board
2008 : dividend
Net dividendin euros
*After the 3 to 1 split carried out on 10th June 2006
2005
0.83
2006
0.95
2007
1.000.67
2004 2008
1.03
* *
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
49/58
49
2009 Outlook
502009 : outlook
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
50/58
50
2009 : outlook
The environment remains more than uncertain
Economic consequences of the crisis on purchasing power arestill to come
Japan and USA remain very difficult markets
The luxury goods sectors is affected by this mood
512009 : outlook
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
51/58
51
9
To keep our way, Herms being strong of :
a steady vision : Herms craftsman and designer, confirminga strong style
a high profitability, which could go down in 2009
strong cash reserves, an essential asset
522009 : outlook
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
52/58
52
9
Short term adjustments
Pace of investments
Manufactures : 2 projects delayed
Stores : 2 projects delayed
Hirings, except in our leather workshops and our new stores
Overheads : savings program
Tight control on inventories
532009 : outlook
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
53/58
53
9
Development actions
Collections creativity
Merchandising and liveliness in stores
Supply chain, which will allow a better service in thestores
better product flows
And a better service to the final customer
542009 : outlook
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
54/58
54
9
Four exceptional store projects which will open in the coming
years :
New York Madison Men space
Herms Maison in Shanghai
Geneva store
Large store on left bank in Paris
551st quarter 2009
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
55/58
55
1st quarter sales : + 3.2 %
- 4.7 % at constant exchange rates
562009 : outlook
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
56/58
56
The environment remains more than uncertain
An ambitious target for 2009
Sales : steady
Profitability : slight decrease
57
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
57/58
57
In its history, Herms already went through
crisis and overcame them thanks to its vision, itsfinancial strength, its craftsmanship values, its
family shareholding and to its customersdreams.
58
-
7/28/2019 AG 2009 Assemblee Generale Mixte 2 Juin 2009 Anglais
58/58
58