LVMH / Bulgari Alliance
Confidential LVMH / Bulgari alliance PRELIMINARY | SUBJECT TO FURTHER REVIEW AND EVALUATION Luxury sector landscape n The luxury sector was dominated by large conglomerates with global presence and diversified brand portfolios n Larger luxury groups acted as consolidators acquiring smaller companies / brands 2011E revenues of key sector players (€ in millions) Market cap €56,286m €13,991m €25,031m €10,960m €16,167m €16,307m €5,624m €6,079m €2,693m €2,264m 21,948 15,063 7,220 6,465 5,188 2,640 2,429 1,954 1,158 857 LVMH PPR Richemont Luxottica Swatch Hermes Tiffany & C o. Burberry BuLgari Tod's Group Bulgari was a relatively small company in the luxury space Source: FactSet as of 01 March 2011. Confidential 1 Handout Share price performance of key luxury players Sector share price performance rebased to Bulgari share price (€) 9.5 9.0 8.5 49.0% 44.8% 8.0 35.9% 34.5% 33.7% 7.5 31.6% 7.0 6.5 10.9% 6.0 5.5 5.0 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 S ep-10 O ct-10 Nov-10 D ec-10 Jan-11 Mar-11 Bulgari S .P .A. LVMH Moet Hennessy Louis Vuitton P P R S .A. C ompagnie Financiere Richemont S .A. S watch G roup AG MS C I Textile Apparel & Luxury G oods MS C I E urope The luxury sector had performed strongly in the twelve months before the transaction Source: FactSet as of 01 March 2011. Confidential 2 Potential partners / buyers overview Key financials 2011E Net debt / Key brands Market cap Revenues Net debt/(cash) EBITDA EBITDA Major shareholder(1) LVMH €56,286 €21,948m €2,099m €5,632m 0.4x n Arnault Family − Economic 48% − Voting 64% PPR €13,991m €15,063m €3,781m €1,920m 2.0x n Pinault Family − Economic 41% − Voting 56% Richemont €25,031m €7,220m (€1,882m) €1,849m NM n Rupert Family − Economic 9% − Voting 49% Swatch €16,167m €5,188m (€1,762m) €1,409m NM n Hayek Family − Economic 24% − Voting 43% Source: Company information, FactSet as of 01 March 2011.
[Show full text]