the bvlgari group fiscal year 2004 rome, 22 march 2005 when printing the presentation please choose...
TRANSCRIPT
THE BVLGARI GROUP THE BVLGARI GROUP
Fiscal Year 200Fiscal Year 20044
Rome, 22 March 2005
When printing the presentation please choose the “Pure B/W” option
FINANCIAL RESULTS FINANCIAL RESULTS FY 2004 AND Q4 2004 FY 2004 AND Q4 2004
Eur mios. FY2004
FY 2003
DELTAFY 04/03
Q42004
Q4 2003
DELTAQ4 04/03
REVENUES rep.REVENUESconst.currency
827.7 759.3 +9%
+12.1%
273.3 247.3 +10.5%
+13.3%
GROSS PR.
Gross mg
527.7
63.8 %
474.4
62.5 %
+11.2% 178.5
65.3 %
158.5
64.1%
+12.6%
EBIT
Ebit mg
134.2
16.2 %
116.9
15.4 %
+14.8% 56.7
20.7 %
54.8
22.1 %
+3.6%
NET PROFIT
Net P.mg
108.3
13.1 %
92.1
12.1 %
+17.5% 46.3
16.9 %
48.2
19.5 %
-4.0%
PRODUCTCATEGORY
FY 2004 Q4 2004 VARIATION % 2004/2003FULL YEAR
VARIATION % 2004/2003
FOURTH QUARTER
REPORTED AT COMP.FX REPORTED AT COMP.FX
MEUR % ON TOTALSALES
MEUR % ON TOTALSALES
% GROWTH % GROWTH
JEWELRY 342.7 41.4 109.1 39.9 +11.4 +14.5 +10.0 +13.3
WATCHES 256.4 31.0 81.8 29.9 +5.0 +8.7 -1.7 +1.1
PERFUMES 154.2 18.6 58.8 21.5 +12.8 +15.5 +30.9 +32.0
ACCESSORIES
62.1 7.5 19.9 7.3 +11.5 +13.8 +24.9 +27.0
ROYALTIESAND OTHER
12.3 1.5 3.7 1.4 -18.1 N/A -9.5 N/A
TOTAL 827.7 100 273.3 100 +9.0 +12.1 +10.5 +13.3
REVENUES – 2004 AND Q4 REVENUES – 2004 AND Q4 20042004
DETAIL BY PRODUCT LINEDETAIL BY PRODUCT LINE
GEOGRAPHICALAREA
FY 2004 Q4 2004 VARIATION % 2004/2003 FULL YEAR
VARIATION % 2004/2003
FOURTH QUARTER
REPORTED AT COMP.FX REPORTED AT COMP.FX
MEUR % ON TOTALSALES
MEUR % ON TOTALSALES
% GROWTH % GROWTH
ITALY 108.7 13.1 38.6 14.1 +3.0 +3.0 +10.9 +10.9
EUROPEW/OUT ITALY
189.6 22.9 58.9 21.6 +0.0 +0.0 +6.4 +6.4
AMERICAS 122.8 14.8 44.7 16.4 +12.9 +22.4 +12.6 +20.8
JAPAN 206.5 25.0 70.9 25.9 +24.1 +27.2 +25.0 +29.7
FAR EAST 146.5 17.7 46.7 17.1 +2.7 +8.1 +0.1 +4.2
MIDDLE EASTAND OTHER
53.6 6.5 13.4 4.9 +15.7 N/A -4.4 N/A
TOTAL 827.7 100 273.3 100 +9.0 +12.1 +10.5 +13.3
REVENUES – 2004 AND Q4 REVENUES – 2004 AND Q4 20042004
DETAIL BY GEOGRAPHICAL AREADETAIL BY GEOGRAPHICAL AREA
GROUPP/L
FY 2004MEUR
FY 2003MEUR
% GROWTH2004/2003
% ON REVENUES2004
REVENUES 827.7 759.3 +9 100
GROSS MARGIN 527.7 474.4 +11.2 63.8
PERSONNEL COSTS 128.5 117.8 +9.0 15.5
AMOR.&DEPR. 39.1 39.0 +0.1 4.7
OTHER GEN EXPENSES
129.5 120.0 +8.0 15.6
TOT GEN EXPEXCL. ADV&PROMOT.
297.1 276.8 +7.4 35.9
ADV. AND PROMOTION
96.4 80.7 +19.5 11.6
TOT GENERAL EXP 393.5 357.5 +10.1 47.6
EBIT 134.2 116.9 +14.8 16.2
NON OPER.EXP. INC.MIN.
13 7.9 +64.5 -1.6
PROFITBEFORE TAX
121.2 109.0 +11.2 14.6
TAXES 12.9 16.9 -23.6 1.6
NET PROFITAFTER TAXES
108.3 92.1 +17.5 13.1
BVLGARI PROFIT AND LOSS OVERVIEW BVLGARI PROFIT AND LOSS OVERVIEW FISCAL YEAR 2004FISCAL YEAR 2004
GROSS MARGINGROSS MARGIN
60,6%
63,8%
62,5%
2002 2003 2004
REVENUEBREAKDOWN
FY 2002
JEWELS 38.0%
WATCHES 37.9%
PERFUMES 17.1%
ACCESSOR.
5.2%
ROYA/OTH 1.8%
TOTAL 100%
REVENUEBREAK DOWN
FY 2003
JEWELS 40.5%
WATCHES 32.2%
PERFUMES 18.0%
ACCESSOR.
7.3%
ROYA/OTH 2.0%
TOTAL 100%
REVENUEBREAKDOWN
FY 2004
JEWELS 41.4%
WATCHES 31.0%
PERFUMES 18.6%
ACCESSOR.
7.5%
ROYA/OTH 1.5%
TOTAL 100%
FX RATESMarketevolution
2004AVERAGEFX RATE
2004vs2003
AVERAGEEUR
APPREC.
EUR/USD 1.24 +10%
EUR/JPY 134.4 +2.6%
ADVERTISING AND ADVERTISING AND PROMOTIONPROMOTION
INVESTEMENTS IN M.EURO AND AS A % ON REVENUESINVESTEMENTS IN M.EURO AND AS A % ON REVENUESas well as INDICATIONas well as INDICATION OF REVENUE GROWTH ON THE OF REVENUE GROWTH ON THE
YEARYEAR
1924
3350
61
82,3
102,3
76,280,7
96,4
1995 1996 1997 1998 1999 2000 2001 2002 2003 20049.9%9.6% 10.2% 11.1
%13.6
%12.6
%% on REV 12.2
%13.4
%10.6
%11.6
%
CONSOLIDATED TAX RATECONSOLIDATED TAX RATE
19,6%
10,5%15,4%
15,6%
2001 2002 2003 2004
NET WORKING CAPITALNET WORKING CAPITAL
INVENTORY ROTATION DAYS
200222257
204
100
150
200
250
2001 2002 2003 2004
Me euro 2001 2002 2003 2004
RECEIV. 124 143 132 161
INVENTORY
547 477 430 459
PAYABL. -119 -118 -109 -151
TOT NWC 552 502 453 469EXCLUDING OTHER REC. AND OTHER PAY.
CAPITAL EXPENDITURECAPITAL EXPENDITURE
M.EURO 2001 2002 2003 2004
TANGIBLE 36 24 23 27
INTANGIBLE
Excluded goodwill
12 9 15 18
TOTAL 48 33 38 45
2004 – NETWORK EVOLUTION2004 – NETWORK EVOLUTION
2004 2003 2002
DOS BOUTIQUES 107 92 83
FRANCHISEES 38 35 33
TOTAL STORES 145 127 116
TRAVEL RETAILAND WHOLESALE STORES (POINTS OF SALE)
49 55 53
TOTAL STORES+P.O.S.
194 182 169
2004 – STORE REFURBISHMENTS and 2004 – STORE REFURBISHMENTS and NEW OPENINGSNEW OPENINGS
NEW DIRECTLYOPERATEDSTORES(DOS)
+7 new locations
+8 locations previously WS/TR
+15 total
Openings in Q4 Milan Malpensa 2Berlin KaDeWeBarcelonaBusan Lotte
Openings in Q1, Q2, Q3Chiba MitsukoshiHiroshima TenmayaTaichung Mitsukoshi
+ 8 wholesale corners reclassified as DOS
EXISTING DOSRE-LOCATIONS
4 important relocations OsakaLondon New Bond StreetBerlin KuDamm
Chicago
NEW FRANCHISEES
+3 new locations+3 total
Bharain Sao Paolo IguatemiDelhi
NEW TRAVEL RETAIL WHOLESALE STORES
+2 new locations- 8 locations now DOS
-6 total
DFS Okinawa Heinemann Frankfurt- 8 wholesale corners now DOS
Grand Total +12 new locations4 relocations
CASH FLOW GENERATIONCASH FLOW GENERATIONM.EUROM.EURO
48
107
33
117
38
131
52
147
0
20
40
60
80
100
120
140
160
2001 2002 2003 2004
INVESTMENTS CASH FLOW
BALANCE SHEET HIGHLIGHTSBALANCE SHEET HIGHLIGHTSM.EUROM.EURO
475
-284
548
-136
587
-45
663
-10
-300
-100
100
300
500
700
2001 2002 2003 2004
Net Equity Net Cash
GEARING60% 25% 8% 2%
ENHANCEMENT OF EXCLUSIVE BOUTIQUESLOCATION, SURFACE, ASSORTMENT, SERVICE
CONTINUED STORE OPENINGS AND REFURBISHMENTS
CONTINUED, STRONG PRODUCT INNOVATION - CAPITALIZING ON THE COLLECTION CONCEPT TO BE PRESENTED AT THE BASEL FAIR, APRIL 2005
HIGHER DEGREE OF VERTICAL INTEGRATION MORE FOCUS ON PRODUCTION PROCESSES CROVA FULL INTEGRATION, MORE IDEAS
FURTHER ENHANCEMENT OF THE HIGH JEWELRY OFFERWITH THE DIAMOND PROJECT
Q2 2005, FIRST PRODUCTS ON SHELF
BVLGARI FOCUS 2005BVLGARI FOCUS 2005
EFFECTIVE ADVERTISING SUPPORT AND GREATER FOCUS ON THE CONTROL OF THE DISTRIBUTION CHANNEL
NEW, DEDICATED CAMPAIGNS ONGOING CONTROL ON THE DISTRIBUTION CHANNEL
BVLGARI FOCUS 2005 BVLGARI FOCUS 2005 IMPORTANT PRODUCT LAUNCHES IN ALL CATEGORIESIMPORTANT PRODUCT LAUNCHES IN ALL CATEGORIES
JEWELRY WATCHES PERFUMES ACCESSORIES
NEW PRODUCT LAUNCHES
TO BE PRESENTEDTO THE TRADE
IN BASEL APRIL 2005
CABOCHONCICLADI
(BASEL SELECTION )NOW IN STORE
TO BE PRESENTEDTO THE TRADE
IN BASELAPRIL 2005
AQUA POUR HOMME
NOW IN STORE
CRUISE COLLECTION SPRING COLLECTION
NOW IN STORE
LINE EXTENSIONSAND NEW VERSIONS
BASEL BASEL SEASONAL FLANKERS SPRING/SUMMERAND
FALL/WINTER
ADVERTISINGCAMPAIGNS
THE BVLGARI CAMPAIGNS ADVERTISE FIRST OF ALL THE BRAND
DEDICATED CAMPAIGNS FOR THE NEW PRODUCTS, DIAMOND PROJECT
+NEW Bzero1 CAMPAIGN
NEW AQUA CAMPAIGN,NEW BLV CAMPAIGN,
MORE TO COMENEW EYEWEAR
CAMPAIGN
QUESTIONS & ANSWERSQUESTIONS & ANSWERS
BVLGARI INVESTOR RELATIONS WEBSITEhttp://production.investis.com/bulgari/frameset
In order to receive updates via e-mail on the quarterly results releases, please add your name and e-mail address to the Alerting Service.
For investor relations queries, please contact: [email protected]. Thank you.
BVLGARI CORPORATE WEBSITEhttp://www.bulgari.com
For more information about the the Bvlgari products please join the dedicated mailing list.
TECHNICAL INFORMATION ON TECHNICAL INFORMATION ON IAS/IFRS IMPLEMENTATIONIAS/IFRS IMPLEMENTATION
ProcedureThe Company is completing its preparation for the transition to the new IAS/IFRS accounting
principles, which will be submitted as soon as possible to the exam of its auditing company KPMG S.p.A.
Date of applicationThe International Accounting Standards will presumably be applied starting from the
presentation of the financial statements for the first semester 2005.
In that occasion a prospect of analytical link between net assets and quarterly profit will be prepared where these lattere will be drawn up following the previous accounting principles and
the new IAS/IFRS ones.
More technical details onhttp://production.investis.com/bulgari/frameset
HISTORICAL HISTORICAL REPORTEDREPORTED REVENUES BY PRODUCT LINEREVENUES BY PRODUCT LINE% GROWTH AND % ON TOTAL SALES% GROWTH AND % ON TOTAL SALES
YOY GROWTH 1998 1999 2000 2001 2002 2003 2004
JEWELS +8 +30 +47 +26 +2.1 +4.7 +11.4
WATCHES +15 +41 +43 -6 -1.0 -16.6 +5.0
PERFUMES +63 +18 +15 +37 +4.8 +3.1 +12.8
ACCESSORIES +292 +41 +53 +48 +3.7 +39.5 +11.5
ROYALTIESAND OTHER
+86 +25 +15 +11 -17.8 +4.8 -18.1
BREAKDOWN 1998 1999 2000 2001 2002 2003 2004
JEWELS 33 32 34 38 38 41 41
WATCHES 42 45 46 39 38 32 31
PERF. 19 16 14 16 17 18 19
ACCESS. 3 4 4 5 5 7 8
ROYALT. OTH 3 3 2 2 2 2 1
HISTORICAL HISTORICAL REPORTEDREPORTED REVENUES BY GEOGRAPHICAL AREA REVENUES BY GEOGRAPHICAL AREA% GROWTH AND % ON TOTAL SALES% GROWTH AND % ON TOTAL SALES
YOY GROWTH 1998 1999 2000 2001 2002 2003 2004
ITALY +33 +17 +43 +19 +2.8 -1.6 +3.0
EUROPE +15 +20 +38 +24 -3.3 -0.9 +0.0
AMERICAS +35 +26 +28 -16 -2.0 -6.2 +12.9
JAPAN +32 +60 +36 +7 +7.3 +0.9 +24.1
FAR EAST +3 +58 +61 +27 -6.6 +7.5 +2.7
M.EAST OTH +22 +19 +47 +59 +23.7 -24.6 +15.7
BREAKDOWN 1998 1999 2000 2001 2002 2003 2004
ITALY 14 13 13 14 14 14 13
EUROPE 27 24 24 26 25 25 23
AMERICAS 24 23 21 15 15 14 15
JAPAN 18 22 21 20 21 22 25
FAR EAST 12 14 17 19 17 19 18
M.EAST OT. 5 4 4 6 8 6 6
Disclaimer This document is for institutional investors only and is not available to private customers. This document is being supplied to a limited number of recipients and it may not be distributed, published or reproduced in whole or in part or disclosed by recipients to any other person.Under no circumstances shall this document constitute an offer to sell, an invitation to acquire or the solicitation of an offer to buy securities in any jurisdiction. Each investor contemplating purchasing securities issued by Bulgari SpA or any of its subsidiaries should make its own independent investigation of the financial condition and affairs, and its own appraisal of the creditworthiness, Bulgari SpA or any of its subsidiaries and should carefully consider the high risks involved in purchasing these securities. This document contains certains forward looking statements and key financial goals which reflect management’s current views, estimates, and objectives. The forward looking statements and key financial goals involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements and key financial goals. Potential risks and uncertainties include, amongst other things, internal, industry and external factors, such as general economic conditions
Sources of the information presented: FY 2003 presentation, 31.12.2004 and 27.01.2005 press releases, institutional conference calls WWW.BULGARI.COM web site