Lalique Group SA Presentation of half-year results 2020 - Zurich, 9 September 2020
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Lalique Group SA
Presentation of half-year results 2020
Zurich, 9 September 2020
lalique-group.com
O ve r v i ew
Overview of H1 2020
1
Roger von der Weid, Chief Executive Officer
Financial performance in H1 2020
2
Alexis Rubinstein, Chief Financial Officer
Business priorities and outlook
3
Roger von der Weid, Chief Executive Officer
4 Q&A
Botanica – La Collection Lalique
lalique-group.com 2
Overview of H1 2020
lalique-group.com
H 1 2 0 2 0 w a s a f f e c t e d by C ov i d -1 9 c r i s i s −
s a l e s t re n d s h ave i m p rove d s i n c e m i d - M ay
After a good start to the year, Lalique Group’s activities across segments
1 and regions negatively impacted by Covid-19 and lockdown measures
Significant reduction in retail and wholesale sales particularly due to
2 temporary closure of points of sale, in most countries from mid-March
to end-May
3 Decline in sales was partly offset by cost-saving measures
Improving sales trends in all segments since mid-May, although global
4 economic downturn is continuing to impact the business
5 For full-year 2020, Lalique Group expects less pronounced decline in sales
than in the first-half, provided Covid-19 pandemic does not intensify again
Villa René Lalique – Hôtel & Restaurant
lalique-group.com 4
H 1 2 0 2 0 key f i n a n c i a l t a ke aways
Operating revenue of EUR 49.1m, down 30% vs prior-year period due to
1 difficult conditions for the luxury goods sector amid Covid-19 pandemic
Personnel costs down 18% to EUR 14.1m, and other operating
2 expenses down 36% to EUR 10.0m, reflecting swift implementation
of cost-saving measures
Non-cash impairment charge of EUR 4.3m before tax recognized
3 on Lalique brand value, reflecting subdued outlook and related
delay in strategy implementation following Covid-19 crisis
EBIT of EUR -10.0m including impairment charge and EUR -5.7m
4 excluding impairment charge (H1 2019: EUR 0.5m)
Continued solid liquidity and capital positions, with equity ratio of 50.7%
5 at end-June 2020 vs 50.1% at end-2019
Soleil Lalique – the new hair mist
lalique-group.com 5L a l i q u e G ro u p b ra n d a n d p ro d u c t p o r t f o l i o
re f l e c t i n g d i ve r s i f i c a t i o n s t ra t e g y
EUR Lalique
49.1m • Dominated by crystal decorative items and fragrance businesses
• Investments in interior design driving revenue and leading to high-profile (co-
EUR EUR branding-) projects worldwide
24.2m 24.6m • Jewelry still small in terms of revenue contribution but strategic to reach a younger
LALIQUE COSMETICS and trendier audience
Ultrasun
DECORATIVE 27% 25%
9% ITEMS • Fastest growing brand of the Group both in terms of revenue and profit
• Further potential due to ongoing business expansion and changing consumer
LALIQUE 7% PERFUMES
FRAGRANCES behavior
4%
INTERIOR 3% Perfumes
DESIGN Jaguar Fragrances
2% 2%
2% • Group’s biggest perfume license brand in terms of revenue
ART JEWELLERY • Further growth potential due to strongly performing automotive core business
13% 3%
2% SERVICES Lalique Beauty Services
• Started in H1 2020 with the production of hand sanitizer
HOSPITALITY
The Glenturret
% of total FINE SPIRITS EUR
Revenue • Currently low impact on revenue but significant growth potential mid- and long-
Revenue THE GLENTURRET 1% 0.3m
H1 20201
H1 20201 term
1 Revenue in H1 2020 from sales to external customers (third party)
lalique-group.com 6Cov i d -1 9 re l a te d m e a s u re s
• Protection of health of employees, customers and partners is the top priority
• Swift implementation of cost-saving measures, in particular:
− Significant reduction of marketing activities
− Delay of product launches
− Short-time work for majority of employees in France (including production facilities),
Switzerland and overseas
− Group-wide hiring freeze
− Salary and variable compensation waivers by BoD and EB
− Rent reductions for shop closures during lockdown
• Continued disciplined cost management, such as:
− Prioritization of selected projects, product developments and launches, taking account of
regional Covid-19 situation and economic conditions
− Reduced opening hours for most points of sale after easing of lockdowns
− Focus on online sales and digital marketing
lalique-group.com 7Financial performance in H1 2020
lalique-group.comH 1 2 0 2 0 key re s u l t s
H1 2019 • Operating revenue declined by 30% due to global Covid-
in EURm H1 2020 Change
restated2)
19 crisis
Operating revenue 49.1 70.0 -30%
Gross result 26.3 40.5 -35% • Retail and wholesale businesses similarly impacted on a
Salaries and wages -14.1 -17.2 -18% global scale
Other operating expenses -10.0 -15.5 -36%
EBITDA 2.2 7.8 -74%
• Personnel costs and other operating expenses reduced
Depreciation and amortization / impairment1) -12.2 -7.3 +8% through substantial cost savings measures
EBIT -10.0 0.5
• EBIT decline reflecting
EBIT margin -20% 0.7%
• Top-line slump
Financial result -0.9 -0.7
Net Group profit -10.6 -2.8 • A reduction in operating expenses
• EUR 4.3m impairment charge on Lalique brand value
EBIT breakdown (in EURm) H1 2020 H1 2019
(acquired in 2008)
Lalique1) -10.7 -4.5
Other Segments3) 1.0 5.5
Holding and Elim. -0.3 -0.5
Lalique Group -10.0 0.5
1) Including an impairment of EUR 4.3m on Lalique Brand in H1 2020 2) Restatement of H1 2019 for the correction of an error in deferred taxes 3) Ultrasun, Jaguar, Grès and Other Brands
lalique-group.com 9H 1 2 0 2 0 re s u l t s by s e g m e n t
H1 2020 segment results Other Holding
Lalique Ultrasun Jaguar Grès Group
(in EUR thousand) Brands and Elim.
Revenue from contracts and Glenturret
other operating income with 24 200 12 451 6 332 1 911 4 227 -18 49 103 5% Samouraï
external customers 22%
Revenue from transactions
and other operating income 396 3 6 38 2 426 -2 869
with other segments Lalique
Beauty Other Brands
Total operating revenue 24 596 12 454 6 338 1 949 6 653 -2 887 49 103 CHF 6.7m 1
Services
47% Bentley
Revenue growth (vs. H1 2019) -31% -20% -40% -39% -27% - -30% 19%
Revenue growth (vs. H1 2019)
-31% -22% -40% -39% -27% - -30%
in local currencies Lalique Beauty
EBIT -10 737 2 030 163 29 -1 167 -278 -9 960 Distribution
6%
Assets 184 881 28 004 16 258 12 326 77 827 2 620 321 916
Liabilities 164 916 11 772 7 782 4 884 36 879 -84 888 141 345
Investments in PPE 2 291 48 - - 2 295 50 4 684
D&A PPE 5 890 207 110 37 1 016 16 7 276
Investments in Intangibles 23 40 38 - 162 29 292
D&A Intangibles 4 489 144 39 15 198 2 4 887
1 Alain Delon (discontinued) around 1%
lalique-group.com 10C o n t i n u e d re d u c t i o n o f ove ra l l s a l e s g a p
s i n c e m i d - M ay
Group net sales to third parties: monthly deviation 2020 vs 2019 (Jan-Aug)
• Strong start to 2020
• Initial effect on sales in February after Covid-
19 outbreak in China
-3% -26%
• Severe impacts during worldwide lockdowns
+9% -19%
-39%
-18% starting in mid-March
-41%
• Improving trends since mid-May
-67%
• Business continues to be impacted by
difficult business environment and economic
downturn
2019 2020
January February March April May June July August
lalique-group.com 11Lalique segment: Significant sales decline
particularly in perfumes and in the US
35.5 • Total sales down 31% vs H1 2019 due to Covid-19 impact on all business
-31%
pillars and regions
REVENUE in (EURm)
24.6
• Crystal business (decorative items, interior design, art, jewellery) down
21%, with challenging situation in the US and the UK in particular
• Perfumes down 51%, with all markets affected
• Gastronomy/hospitality down 55%, reflecting effects of lockdown in
H1 2019 H1 2020
France in Q2 in particular
EBIT in (EURm)
• Total costs lowered by 6.1m (excluding impairment charge)
-4.5
• EBIT declined to EUR -10.7m (EUR -6.4m excluding impairment charge)
-4.3 Impairment
charge
-10.7
lalique-group.com 12U l t ra s u n s e g m e n t : Key m a r ke t s S w i t z e r l a n d a n d
U K w i t h re l a t i ve l y s o l i d p e r f o r m a n c e a m i d
C ov i d -1 9 c r i s i s
15.5
-20% • Sales down 20%, with all markets affected by Covid-19
12.5
• Key markets Switzerland (-12%) and UK (-15%) with relatively solid
REVENUE in (EURm)
performance
− In Switzerland, further growth in pharmacy/ drugstore business
− In UK, increased sales through TV and online channels partly compensated lower
retail performance
H1 2019 H1 2020 • Total costs down 7%, mainly reflecting decreased operating expenses
3.9 • EBIT declined to EUR 2.0m, with satisfactory profit margin given
EBIT in (EURm)
market developments
2.0
25% 16%
EBIT margin
lalique-group.com 13J a g u a r s e g m e n t : L a l i q u e G ro u p ’s l a rg e s t
p e r f u m e b ra n d w i t h s l i g h t l y p o s i t i ve E B I T
10.6
• Sales down 40%
-40%
• US and UK market most severely affected by Covid-19
REVENUE in (EURm)
6.3
• Smaller revenue gap in European markets, e.g. Germany and
Italy, where drugstore channels re-opened earlier than perfume
stores
• Operating expenses reduced by 9%
H1 2019 H1 2020
• EBIT slightly positive at EUR 0.2m
1.8
EBIT in (EURm)
0.2
17% 2.6%
EBIT margin
lalique-group.com 14G rè s s e g m e n t : S a l e s d e c l i n e d m a i n l y i n S p a i n
a n d key L a t i n A m e r i c a n m a r ke t s
3.2
-39%
• Sales down 39%
REVENUE in (EURm)
1.9 • Revenues mainly impacted by price increases in Spain and
difficult market conditions in key Latin American markets
• EBIT declined by EUR 0.6m
H1 2019 H1 2020
0.6
EBIT in (EURm)
0.0
20% 0%
EBIT margin
lalique-group.com 15O t h e r B ra n d s s e g m e n t : D e c l i n e i n p e r f u m e s
a n d f i n e s p i r i t s s a l e s p a r t l y o f f s e t by h a n d
sanitizer business
9.1
• Bentley Fragrances down 34%
-27%
6.7
REVENUE in (EURm)
• Parfums Samouraï down 47%, reflecting state of emergency in Japan
during most of Q2
• The Glenturret down 53% vs April to June 2019, with revenues affected
by lockdown measures (closure of visitor centre)
H1 2019 H1 2020 • Lalique Beauty Services contributed positively among others thanks to
production and sale of hand sanitizer
EBIT in (EURm)
• EBIT declined to EUR -1.2m
-0.7
-1.2
lalique-group.com 16B a l a n c e s h e e t re m a i n s ve r y s o l i d w i t h e q u i t y
ra t i o a b ove 5 0 %
in EURm 30.06.2020 31.12.2019
Cash and cash equivalents 37.2 48.8 • Net cash position decreased by EUR 2.3m to 4.9m,
Trade accounts receivable 18.3 21.1 reflecting positive cash flow from operations (EUR
Inventories 87.5 82.8
2.8m), increase in working capital (EUR 4.6m) and
Other current assets 9.0 9.7
investments in both crystal and perfume factories as
Property, plant and equipment 74.3 77.9
Intangible assets 86.3 93.0 well as in The Glenturret distillery (EUR 4.8m)
Other non-current assets 9.3 9.5
• Consequently net debt increased by EUR 5.1m
Total assets 321.9 342.8
(including an increase in current financial liabilities of
Bank overdrafts 32.3 41.6 EUR 7.7m)
Trade accounts payable 12.5 16.0
Other current liabilities 43.3 33.4 • Continued solid liquidity ratio of 1.7 vs 1.8 at end-2019
Non-current financial liabilities 32.1 36.9
• Equity ratio remains above 50%
Other non-current liabilities 21.2 22.7
Total liabilities 141.3 150.6
in EURm 30.06.2020 31.12.2019
Total equity 180.6 192.2
Total equity before non-controlling interests 163.4 171.9
Total liabilities and equity 321.9 342.8 Equity ratio 50.7% 50.1%
lalique-group.com 17Business priorities and outlook
lalique-group.comB u s i n e ss p r i o r i t i e s f o r H 2 2 0 2 0
• Protecting the health of employees, customers and partners remains a priority
• Ongoing focus on managing business amid regional Covid-19 developments
and related economic downturn
• Continued strict cost management, taking account of sales developments and
business environment
• Planned restart of preparations for selected projects and postponed product
launches, including
− Rebranding of The Glenturret distillery, combined with launch of new whisky selection,
now planned for Q4 2020
− Launch of first Brioni perfume line now planned for spring 2021
− Establishment of a joint venture for perfume distribution in the Middle East region to
replace former contractual distribution partner
• Further expansion of digital marketing and online distribution activities for all
segments
lalique-group.com 19Financial outlook
Barring negative development of Covid-19 virus or other unforeseen events:
• FY 2020 Less pronounced sales decline than in H1 2020
• FY 2021 Sales growth in the low double-digit percentage range compared to 2020 levels
As previously announced, mid-term targets communicated with 2018 results (mid-single-digit
revenue growth in local currencies, gradual increase in EBIT margin to 9-11%) will be delayed.
Lalique Group will provide further update with full-year 2020 results
lalique-group.com 20Summary
• H1 2020 business activities and financial performance were heavily impacted by
Covid-19 pandemic
• Decline in sales was partly offset by significant cost-saving measures
• Given improving sales trends in all segments since mid-May, less pronounced sales
gap expected for full-year 2020 than in H1 2020
• Liquidity and capital positions remain solid (equity ratio above 50%)
• Lalique Group to resume work on selected projects and product launches
• No fundamental change in long-term Group business strategy
lalique-group.com 21Appendix lalique-group.com
Co n s o l i d a te d i n co m e st a te m e n t
H1 2019
in TEUR H1 2020
restated
Revenue from contracts with customers 48 122 69 612
Other operating income 981 348
Operating revenue 49 103 69 960
Material costs -22 817 - 29 490
Gross profit 26 286 40 470
Salaries and wages -14 119 - 17 153
Other operating expenses -9 964 - 15 531
EBITDA 2 203 7 786
Depreciation and amortisation / impairment1) -12 163 - 7 278
EBIT -9 960 508
Financial income 5 6
Financial expenses -764 - 1 021
Net foreign exchange differences -155 276
Group profit before tax -10 874 - 231
Income taxes2) 247 -2 606
Net Group profit -10 627 -2 837
of which attributable to:
Non-controlling interests -1 999 - 1 395
Owners of the parent company -8 628 -1 442
Earnings per share (EUR) -1.44 -0.24
1) Including an impairment of EUR 4.3m on Lalique Brand in H1 2020 2) Restatement of H1 2019 for the correction of an error in deferred taxes
lalique-group.com 23Co n s o l i d a te d b a l a n ce s h e e t
in TEUR 30.06.2020 31.12.2019 in TEUR 30.06.2020 31.12.2019
Cash and cash equivalents 37 217 48 845 Bank overdrafts 32 281 41 623
Trade accounts receivable 18 275 21 070 Trade accounts payable 12 516 15 953
Inventories 87 508 82 790 Income tax liabilities 548 1 737
Other receivables 9 024 9 679 Other current liabilities 42 718 31 667
Total current assets 152 024 162 384 Total current liabilities 88 063 90 980
Property, plant and equipment 74 314 77 915 Other deferred liabilities 3 305 4 149
Intangible assets 86 265 93 031 Provisions 165 159
Other non-current assets 5 460 5 459 Non-current financial liabilities 32 097 36 947
Deferred tax assets 3 853 4 025 Defined benefit obligation 5 897 5 712
Total non-current assets 169 892 180 430 Deferred tax liabilities1 11 818 12 687
Total non-current liabilities 53 282 59 654
Total assets 321 916 342 814
Total liabilities 141 345 150 634
Share capital 1 204 1 204
Capital reserves 85 378 85 378
Retained earnings / other reserves1 76 785 85 276
Total equity before non-controlling interests 163 367 171 858
Non-controlling interests1 17 204 20 322
Total equity 180 571 192 180
Total liabilities and equity 321 916 342 814
lalique-group.com 24Reve n u e a n d E B I T by s e g m e n t s H 1 2 0 2 0 /
H1 2019
in
Lalique Ultrasun Jaguar Grès Other Brands
EURm
35.5 10.6 3.2 9.1
-31%
15.5 -40% -27%
-20% -39%
6.7
24.6 12.5
6.3 1.9
REVENUE
H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020
1.8
0.6
H1 2019 H1 2020 3.9 H1 2019 H1 2020
EBIT | EBIT-MARGIN
-4.5 2.0
-0.7
0.2
0.0
-10.7 -1.2
H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020
25% 16% 17% 3% 20% -
Note: Total operating revenue incl. revenue from transactions with other segments
lalique-group.com 25G l o b a l p re s e n ce
Headquarters Lalique own boutiques
Lalique Group SA
>14,200 GLOBAL POINTS OF SALE Europe: 11 stores
USA: 6 stores
• Grubenstrasse 18, Zurich, Switzerland Lalique division >700
Asia: 12 stores
Lalique SA Beauty division: >13,500 Foreign subsidiaries
• Rue Royale 11, Paris, France
• Lalique UK (London)
• Lalique Germany (Frankfurt)
• Lalique North America
Manufacturing sites (New York City)
• Lalique Shanghai (Shanghai)
• Lalique, Wingen-sur-Moder (France)
• Lalique Asia (Hong Kong)
• Lalique Beauty Services, Ury (France)
• Lalique Singapore (Singapore)
• Lalique Japan (Tokyo)
Gastronomy/hospitality
The Glenturret Villa René Lalique
• Five-star hotel and gourmet
• Whisky Distillery, The Hosh, Crieff, UK restaurant (2* Michelin)
Château Hochberg
• Four-star hotel and brasserie-style
restaurant
Both hotels are located in Alsace, France
Château Lafaurie-Peyraguey
(operates under Lalique brand on licensing basis)
• Five-star hotel and gourmet
restaurant (1* Michelin)
lalique-group.com 26lalique-group.com
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