financial analysis of "tod's" group
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Financial Analysis of "Tod's" GroupTRANSCRIPT
Financial analysis of Tod’s group
Angelo Tralli Alberto Tirotta
Iacopo Quarone
Tod’s group story
• Established in early 1900s
• ‘70s developed from family enterprise to industrial company by keeping craftmanship of the products
• Over the years it has become a company that makes exclusive products
Group’s vision
The brands of the group, all with their personal identity, are linked by the same philosophy:
• Mix of traditon and modernity
• High quality
• Creativity
• Functionality
Tod’s group businessTod’s
Luxury market
Hogan Sportswear market
Fay Casual wear market
Roger VivierLuxury market
Tod’s sales
Mandatory disclosure:Consolidate financial statement
• Prepared in accordance with IAS-IFRS issued by ISB and supplemented by the additional information required by CONSOB. article 9 of legislative decree, article 78 of the issuer regulation
• The consolidated financial statement were approved by the board of directors of TOD’S S.P.A. On march 14°2011
2 assumptions:IAS 1,par 25
Principle of continuity
Historic costs
financial statement
Balance sheet
• Current
• Non current
Indicator of
revenues and costs
• EBITDA
• EBIT
Statement of cash
• Indirect method
Main events of 2010
• Operation made through the aquisition of the entire share capital of HOLPAF B.V.(party transaction)
• In financial terms, the impact on the group’s cash position was about 22.7 million
• The overall net financial position was about 63.0 millionMainly reflected the two bonds issued in 2006
by HOLPAF B.V.As indicated in IFRS 3, the individual assets and the
individual liabilities have been recognized at their fair value in accordance with the IAS 16,32,39
• Purchase of Omotesando building(Tokio)
Main events of 2010Payment of dividends (153 milion)
Ordinary dividend45.9 million
Extraordinary dividend107.1 million
Highlights of accounting principles adopted by Tod’s group
• SUBSIDIARIES include all entities in which the TOD’S Group has direct or indirect control over the financial and operating policies of an entity in order to obtain benefits from its activity IAS 27
• INTANGIBLE ASSETSo Goodwill represents the portion of the cost paid for the acquisition
that exceeds the Group’s interest in the fair value of the assets liabilities, and identifiable potential liabilities of the subsidiary or jointly controlled entity at the acquisition date IAS 36
o Depreciation Property, plant, and equipment were systematically depreciated at a steady rate according to the depreciation schedules defined on the basis of their estimated useful life. Land is not depreciated.
• TANGIBLE ASSETS
Highlights of results
Financial year 2010 ended on a high note in term of revenues, profit margins and profitability.
Sales and financial figures have confirmed that consumers appreciate the high quality product offered by the group’s brand
Breakdown of consolidated revenues(IAS 8)
Revenues by channel
Revenues by product
Revenues by brand
Voluntary disclosureLegislative Decree June 8, 2001, no. 231 (Administrative liability of legal entities, companies and association)
The administrative responsibility of companies in relation to a range of predefined criminal offences committed by persons within the company
the liability arises not only on the head of the individual and actual perpetrator of the offence, but for legal entities as well
The control system, as set forth by the norm, is optional and not compulsory
Role of the “exemption” clause
The code of conductIn order to achieve its objectives Tod’s Group believes in, accepts and complies the following ethical principles:
• compliance with laws and regulations and compliance with the strictest rules of behavior
• equality fairness in the treatment of employees, collaborators and customers
• transparency and reliability
• honesty, fairness and good faith
• confidentiality
• value of the person and of human resources
The code of conductIn the code of conduct the Group commits itself to provide adequate and complete supporting documentations of its activities.
Importance of accounting activity have to meet the requirements of:
• truth
• completeness
• transparency
for each operation recorded
Social responsibility
TOD’S S.p.A. is financing the restoration works on the Colosseum as sole and exclusive sponsor
The sponsorship campaign is the biggest to rescue Italy's archaeological treasures with private money(an investment of 25 million of euro)
I won't put Tod's shoes on the Colosseum“ Della Valle said.
The system of government and control
Internal control
Indipendent direct
committee
Shareholder’s meeting
Board of directors
The Board of Statutory Auditors
Executive Committee
LATIN MODEL
Internal controlCorporate Governance
CommitteeRemuneration
Committee
Indipendent direct
committee
Shareholder’s meeting
Board of directors
The Board of Statutory Auditors
Executive Committee.
The system of government and control
• The internal control system: Its main function is to ensure that the administrative and accounting procedures prepared guarantee the reasonable credibility of the financial information and the organization's ability to produce timely and reliable accounting and financial information, in compliance with the reference accounting standards (IAS/IFRS)
• The external control system: TOD’S Group decided to charge Deloitte & Touche S.p.A to audit TOD’S S.p.A. and its other subsidiaries
Conclusion
Winning keys of the Group:
• High value-added products
• Excellent positioning in the fastest-growing economies (especially China)
• High quality of the information disclosed
Thank you for your attention