Corporate Press Kit 2014 Corporate Press Kit 2014 Contents 1. The Company 2. Figures 3. Innovation, Creativity and Design Nina Ricci Carolina Herrera Paco Rabanne Jean Paul Gaultier 4. The Fashion Houses 5. Success Stories 6. Family business established in Barcelona 7. History 8. Puig and Classic Sailing 9. Contact www.shakira-beauty.com 2 Corporate Press Kit 2014 1. The Company Puig is a third-generation family-owned fashion “Puig excels in its ability to build and fragrance business based in Barcelona. The brands through fashion, and we are strength of Puig lies in its ability to build brands, to shape the image of brands through fashion, at our best when translating that and to translate that same image into the world image into the world of fragrance, of fragrance through storytelling and product through storytelling and the excellence. excellence of our products.” The company’s strong performance has resulted in substantial growth and revenues of € 1.48 billion in 2012. Puig success stories include a “We believe that the key to combination of owned brands such as Carolina our success has been the Herrera, Nina Ricci, Paco Rabanne and Jean Paul combination of excellent Gaultier, licenses such as Prada, Valentino and Comme des Garçons, and celebrity fragrances. management of the business Puig products are sold in more than 130 with our passion for fashion countries. and fragrances. We’ve combined creativity, design and passion for innovation in a unique business model.” Marc Puig, Chairman & CEO 3 Corporate Press Kit 2014 Puig’s two pillars: Fashion and Fragrances Puig has positioned itself as one of the world leaders in selective perfumery and fashion. In the 1980s the company signed its first agreement in the fashion world with Paco Rabanne. Since then, Puig has been committed to maintaining a hybrid model, unique in the industry. Fashion Puig currently owns three major fashion brands: Nina Ricci Carolina Herrera Carolina Herrera, Paco Rabanne and Nina Ricci. In addition, since 2011 Puig is the majority shareholder of Jean Paul Gaultier. The company has worked closely with each of them to create internationally renowned fashion brands. Since the first agreement with Paco Rabanne, Puig has steadily grown in the fashion sector and in 2012 recorded 23% growth thanks to the excellent evolution of each of its brands. Paco Rabanne Jean Paul Gaultier 4 Corporate Press Kit 2014 Fragrances Puig Brands Puig conducts its activity in the fragrance industry with Puig offers Niche fragrances such as Comme des Puig also markets Beauty brands, among which are a broad portfolio of brands, both owned and licensed, Garçons, exceptional Prestige fragrances including highly successful trade names such as Shakira, Antonio reaching consumers across the globe. Paco Rabanne, Carolina Herrera and Nina Ricci, as Banderas and Mango. All of the fragrances are created, well as Premium fragrances with Prada and Valentino. produced and distributed by Puig. Fashion Fragrances Cosmetics Toiletries Niche Premium Prestige Beauty International Regional Local Fragrances Fragrances Fragrances Spain Latam Our own brands: Nina Ricci Nina Ricci Agua Brava Victorio & Lavanda Añeja Payot Heno de Pravia Carolina Herrera Carolina Herrera Quorum Lucchino Royal Regiment Vitesse Lavanda Puig Paco Rabanne Paco Rabanne Sportman Aquarius Jean Paul Gaultier Anouk Azur Brummel Licences and Joint Ventures: Comme des Garçons Prada Antonio Banderas Adolfo Dominguez Massimo Dutti Herbalife Valentino Shakira Agatha Ruiz Don Algodon Juliana Paes Mango de la Prada Springfield Rosario Flores David Bustamante Pacha 5 Corporate Press Kit 2014 2. Figures During the 2012 fiscal year, Puig sales reached 1.4 billion Puig currently has over 4,000 employees (of which 1,700 sales generated outside of Europe and the USA in 2012, euros. International markets generated 83% of the are employed in Spain) and five owned factories: three one of the highest percentages of the industry. Examples business, whereas five years ago that figure was 64%. in Spain (Sant Adrià de Besòs, Vacarisses and Alcalá de of this success are the Russian subsidiary, founded in Earnings before interest and taxes (EBIT) rose from €216 Henares), one in France (Chartres) and another in Mexico 2011, which grew by 69% in 2012; and the Brazilian million in 2011 to €254 million in 2012, which represents (Cuautitlán). Over two-thirds of all the units sold in the subsidiary, created in 2010, with sales surging 45% in 17% of net revenues. Net attributed income was €173 world are manufactured at the three production centers 2012. million, 12% higher than in the previous year. in Spain. Furthermore, in 2012, Puig increased its market share Puig has subsidiaries in 21 countries and its products are to over 8%, raising it to sixth place worldwide in the distributed in over 130 countries. The commitment Puig selective perfume industry. made to emerging markets several years ago saw 45% of Canada Russia Germany United Kingdom Belgium Netherlands United States France Austria Switzerland Italy Portugal Spain GLOBAL PRESENCE Mexico Dubai Puig Subsidiaries Production Centers Panama Peru 4.136 Singapore Employees Brazil 21 Argentina Subsidiaries Chile The products are sold in over 130 countries 6 Corporate Press Kit 2014 3. Innovation, Creativity The Research Center and Design Since 2003, R&D is performed in the Research Center, the formulation and development laboratories at Puig, The blend of creativity, design and passion for responsible for undertaking new projects and ensuring innovation has been the key to the company’s success. their quality and effectiveness. Puig builds on a collaborative model in which the various This is where both raw materials and finished products departments are part of a well-oiled machine. The are analyzed, and where in vitro tests are performed to process of creating a perfume can take up to four years, analyze the safety and harmlessness of the fragrances. during which the Sales and Marketing teams, Research The evaluation of the product is then carried out, in Center, Perfumery Center and Packaging Center all work order to analyze the sensations it arouses before and together seamlessly. after coming in contact with the skin. In the search for new formulas and means of product testing, Puig has The idea of a new perfume emerges from the been developing alternative methods to animal testing relationship between Puig and the brand. Once the since 1990. concept has been validated, professionals from different fields begin a meticulous development process, in which Efficacy tests are also performed to ensure collaboration and teamwork are of the essence. product acceptability and to support subsequent marketing efforts based on the product’s attributes. Simultaneously, the robustness of the product and its chemical formulation are tested in order to minimize the risk of contamination, using safe, effective and environmentally friendly preservatives. At the same time, the Research Center works on meeting all the required legislation for each of the target markets and carries out the necessary pre-launch procedures. Formulas, tests, experiments and documents are all housed in the Research Center, which employs more than 50 professionals from a variety of fields including chemical engineers, pharmacists, biologists or “galenists” (chemists specialized in perfecting formats for medicine or cosmetics: gels, lotions, etc.). Research Center 7 Corporate Press Kit 2014 The Perfumery Center “At Puig, our This is where perfumes become reality, the creation whole raison d’être center for new fragrances. Puig is one of the few is to transcribe a companies with an in-house creative center, and this, together with constant collaboration with the world’s concept into scent finest perfumers, makes the creative process of Puig and express it fragrances unique. through the world This center hosts a team comprised of perfumers, of fragrances, so chemists and assessors. The latter are experts in the that it breathes world of fragrances and trends; they are responsible for the very values of providing constant feedback until the perfect formula is obtained. the brand, making it exclusive and The creative work here is carried out by the marketing team, whose members work closely with the sales distinctive, inspired department, the Packaging Center and the Research by current trends Center. yet enduringly attractive.” Marc Puig, Chairman & CEO Perfumery Center 8 Corporate Press Kit 2014 The Packaging Center Design emerged as a key element in the company’s industrial process during the 1950s, under the leadership of Antonio Puig Planas, the founder’s son. Ever since, design has remained an essential factor in the commercial success of Puig brands, second only to the fragrances themselves. The Packaging Center aims to satisfy an enthusiastic and demanding public with designs that can be developed on an industrial scale without sacrificing aesthetics or functionality. A team of engineers creates the packaging, with precision and originality as their foremost priorities. For their part, graphic designers strive to produce boxes, labels and wrapping that conform to legal norms while still appealing to consumers. This creative space accords as much importance to the bottle design and its beauty as to functionality, materials and market specifications. The quest for quality and the perfect product stimulates designers to create unique bottles, in perfect harmony with the fragrance they contain. 1 MILLION production line 9 Corporate Press Kit 2014 4. The Fashion Houses Fashion Carolina Herrera In 1981, with the endorsement of legendary Vogue then, the success of her fragrances and the relationship received an honorary Doctorate of Fine Arts from the editor Diana Vreeland, Carolina Herrera showed her first with Puig have both steadily grown. In 1995 the entire Fashion Institute of Technology. Carolina Herrera has also collection at the Metropolitan Club, an iconic New York Carolina Herrera fashion and fragrance business became served as an ambassador for the American Cancer venue. The Carolina Herrera collection was a wholly-owned Puig brand.