Striving for Excellence Investor Presentation December 2011 Contents
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Striving for Excellence Investor Presentation December 2011 Contents Introduction Striving for excellence Our financial perspective 2 2 – One of the Top 5 Largest Sports and Fashion Companies in the North “““11 Scandinavian sports and fashion brandsbrands”””” “““Sourcing“Sourcing offices in China, Hong Kong, Bangladesh, Vietnam, India, and Romania ””” “““Distribution“Distribution through own retail, outlets, ee----commerce,commerce, franchise and wholesale ””” “““Revenue“Revenue of DKK 3.9b *** and 2,344 employees ””” “““More than 450 stores and 11,000 wholesale selling points around the worldworld”””” *) FY 2010/11 3 3 We Have a Proud Heritage in Scandinavian Fashion InWear Group 1974: First 1986: Part Two is launched subsidiaries in 1980: First own 1973: Matinique is 1996: Copenhagen Sweden and Norway retail store in launched Stock Exchange 1973: First Danish Copenhagen 1969 .: InWear is fashion brand to set up founded production in Asia 2001: IC Companys is formed through merger Carli Gry 1973: Klaus 1974: Jackpot is 1948 : Carli Gry Helmersen launched founded takes over the 1986: Cottonfield company 1976: First is launched subsidiary in 1996: 1998: Peak Copenhagen Norway Performance Stock Exchange acquisition 4 4 Our Portfolio Was Since Strengthened by Acquisitions and Start-ups 2001/2002 2002/2003 2003/2004 ACQUISITION SAINT TROPEZ TIGER OF SWEDEN STARTSTART----UPSUPS ** * DESIGNERS REMIX SOAKED IN LUXURY BY MALENE BIRGER 5 5 IC Companys Has an Experienced Management Team with High Execution Power IC Companys Executive Management Niels Mikkelsen, CEO Chris Bigler, CFO Anders Cleemann, EVP Peter Fabrin, EVP Industry experience of more than 60 years in total – sports, fashion and fast moving consumer goods Growth creation through frames and principles Cash flow management giving stability and risk reduction Crisis management securing profitability and strength 6 6 Two Economic Crises but with Very Different Impact – Stronger, Transparent, Flexible and Efficient IC Companys share price development AugAug----08080808 282 New SepSep----09090909 JanJanJan-Jan ---10101010 JulJulJul-Jul ---11111111 management Building Debt crisis 210 growth JulJulJul-Jul ---08080808 SepSep----08080808 Financial crisis foundation NovNov----10101010 New structure 115 FebFeb----09090909 NovNov----11111111 Crisis AugAug----11111111 40 management New sourcing DecDec----08080808 7 7 Contents Introduction Striving for excellence Our financial perspective 8 8 Our Vision: “To Be Among the Best Developers of Sports and Fashion Brands ” Freedom Within the Framework: Respect of each individual brand entrusting it with full ownership of the value chain Best practice sharing in key areas of the value chain Corporate Shared Services with targeted operational responsibilities 9 9 Our Mission: “To Build Successful Brands by Uniting Business Excellence with Creativity and Innovation ” Knowledge center Retail/franchise Wholesale E-commerce New markets Sourcing Collection development Marketing/brand building Corporate Shared Services IT, HR, Legal Corporate Finance, Financial Shared Service Corporate Responsibility, Sourcing, Logistics 10 10 IC Companys Is Represented in Multiple Segments, Particularly Affordable Luxury and Mid Market Clothing type only has limited effect CONTEMPORARY FORMAL CASUAL JEANS SPORT/LIFESTYLE LUXURY (HIGH PRICE) AFFORDABLE LUXURY (UPPER MID PRICE) MID MARKET (MID PRICE) FAST FASHION (LOW PRICE) The price dimension is the primary driver 11 11 Having the Right Key Capabilities is Essential to Comparative rating 111 Very important Succeeding Within a Segment 222 Important LUXURY AFFORDABLE LUXURY MID MARKET FAST FASHION BRAND Heritage Mass media 111 Distinctness 111 222 Drive traffic 222 Celebrities PR PRODUCT Fast design DESIGN 111 Innovative 111 111 Merchandise 222 collections flow Accessories Quality Speed SOURCING 222 222 111 Flexibility 111 Standardi- sation Cost LOGISTICS 222 222 222 111 Selective Retail distribution excellence Own Vertical environment principles DISTRIBUTION 111 111 111 111 Global Geographic footprint conc. 12 12 Our Knowledge Centre Facilitates a Systematic and Iterative Knowledge Sharing Process Knowledge center Defining best Knowledge practice sharing and innovation Implementation and adaptation of Brand best practices 13 13 ‘Frames and Principles’ Is Our Catalogue of Best Practice Guidelines Implemented Throughout the Organisation ‘Frames and Principles’ Definition A catalogue of best practice Marketing Vision Vision principles for each of the 7 Build a strong brand with loyal end-consumers and support high sales performance Sourcing Vision KEY LEVERS Vision The marketing strategy is clearly defined and reflects the brands strategic priorities Build aThere strong is a detailed brand understanding with loyal of the end-consumers marketing spend and a andclear rationale support for the high sales performance STRATEGIC APPROACH disciplines Collectionallocation Development Vision 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