PRESS KIT. Safilo Group S.p.A. Safilo at a glance page 1. Brand portfolio page 3. Production capacity page 5. Distribution network page 7

Transcription

1 PRESS KIT Safilo Group S.p.A. Safilo at a glance page 1 Brand portfolio page 3 Production capacity page 5 Distribution network page 7 Development strategies page 9 History page 10 Padua, January 2010

2 Safilo Group S.p.A. Safilo at a glance Who is Safilo? Safilo Group S.p.A. is the company heading Safilo Group, world leader in the high-end and luxury eyewear sector. Figures Founded 75 years ago, Safilo Group's consolidated revenue in 2008 was 1,147,8 million. The brands The Group manages a unique portfolio of its own and licensed brands, selected according to criteria of competitive positioning and international prestige, with careful customer segmentation. Safilo Group s leading house brands are Safilo, Oxydo, Blue Bay, Carrera, and Smith. Safilo is licensed to produce eyewear for some of the world s leading labels, including: Alexander McQueen, A/X Armani Exchange, Balenciaga, Banana Republic, Boss by Hugo Boss, Bottega Veneta, Diesel, 55DSL, Dior, Emporio Armani, Fossil, Giorgio Armani, Gucci, Hugo by Hugo Boss, Jimmy Choo, J.Lo by Jennifer Lopez, Juicy Couture, Kate Spade, Liz Claiborne, Marc Jacobs, Marc by Marc Jacobs, Max Mara, Max&Co., Nine West, Pierre Cardin, Saks Fifth Avenue, Valentino, Yves Saint Laurent and Tommy Hilfinger (starting from Fall 2010). The production chain The Group directly oversees the entire production and distribution chain, from research and development to distribution and logistics, ensuring product quality and flexible and efficient production and distribution. Production The manufacturing platform is divided into six Safilo Group plants, three in Italy, one in Slovenia, one in the United States and one in China. Production has been selectively outsourced to third-party manufacturers in Asia, Italy, and the U.S. in order to optimise the production capacity of its own facilities, contain costs, and meet the specific needs of Asian consumers (Asian fitting). For both internal and outsourced production, the critical area of quality control is managed directly by the Group. 1

3 Distribution The distribution platform is organised around four primary hubs - located in Padua, Parsippany (New Jersey, U.S.A.), Denver (Colorado, U.S.A.) and Hong Kong - and other minor distribution centres, which ensure excellent service and widespread territorial presence. Safilo sells its products in approximately 130 countries, through its sales branches and over 170 independent distributors. Each sales branch coordinates a consolidated network of local sales representatives, who primarily operate under exclusive contracts, reaching a customer base of over 80,000 points-of-purchase, including opticians, optometrists, ophthalmologists, distribution chains, department stores, and other specialised dealers. Development The Group's development strategy for the coming years is aimed at strengthening its current position in the global eyewear market, and continuing to increase its profit margins. The Group intends to achieve these goals by optimising the management of its brand portfolio, improving management efficiency, strengthening its distribution network, expanding into new markets, consolidating the excellence of its design, and by investing in technological innovation and R&D carried out in a special research laboratory. 2

4 Safilo Group S.p.A. Brand portfolio Targets Safilo Group's brand portfolio includes own and licensed brands, which, selected according to criteria of competitive positioning and international prestige, ensure the Group's world leadership position in the high-end market. House brands Safilo Oxydo Blue Bay Carrera Smith The Group s own brands are: Safilo, Oxydo, Blue Bay, Carrera, and Smith. The positioning, target customers, and distribution channels of these brands are aimed at specific market segments. The Safilo brand - the Group's historic brand since the 1930s - is dedicated to prescription frames sunglasses. Oxydo targets the young buyer through products with a strong fashion content, and focuses particularly on the expanding sunglasses market; Blue Bay is aimed at younger consumers who favour prescription frames and sunglasses that offer innovative design. Carrera represents an icon brand in the world of fashion and has established itself with great success on international markets thanks to the sunglasses models with strong fashion connotations and optical frames produced using technological materials and innovative solutions. The brand is also leader in Europe in the sports eyewear, ski and cycling goggles and helmets segments. Uncontested leader in the United States for sports eyewear, snowboard and freestyle ski goggles and helmets, it also differentiates itself for the optical and sunglasses collections with high technical and stylistic content that are dedicated to anyone seeking an unconventional style. Licensed brands Safilo Group has progressively expanded its brand portfolio to include many licensed brands, establishing long term partnerships with its licensors, most of which are repeatedly renewed over the years. Safilo Group has successfully compiled a range of collections by signing license agreements with the major players on the fashion and international luxury scene: key brands for which the Group produces and markets eyewear collections, both prescription frames and 3

5 sunglasses, are: Alexander McQueen, A/X Armani Exchange, Balenciaga, Banana Republic, Boss by Hugo Boss, Bottega Veneta, Dior, Diesel, 55DSL, Emporio Armani, Fossil, Giorgio Armani, Gucci, Hugo by Hugo Boss, J.Lo by Jennifer Lopez, Jimmy Choo, Juicy Couture, Kate Spade, Liz Claiborne, Marc Jacobs, Marc by Marc Jacobs, Max&Co., Max Mara, Nine West, Pierre Cardin, Saks Fifth Avenue, Valentino, Yves Saint Laurent and Tommy Hilfinger from Fall The models A creative team of over 100 designers means the Group can present over 2,500 new models a year; its production and distribution structure ensures that the stylistic content and positioning characteristics of each brand are respected. 4

6 Safilo Group S.p.A. Production capacity The products Thanks to a flexible and technologically advanced industrial structure, Safilo Group produces and markets eyewear with a wide range of characteristics, from optical frames to sunglasses, from high-tech products to luxury eyewear, and from sports glasses to ski goggles. Production plants The Group owns 6 production plants, 3 in Italy, 1 in Slovenia, 1 in the USA and 1 in China. Production is split into two divisions: Plastics and semi-finished and Metal, which include the following plants: The divisions Plastics and semi-finished: The Santa Maria di Sala (Venice) plant, which produces frames in acetate, injection, and Optyl. This facility houses the division: R&D Division, which designs and develops new technologies to improve and optimise the production process. The Martignacco (Udine) plant is specialised in the production of parts and accessories. Metal division: The Longarone plant (Belluno) is one of the world's most advanced production facilities in the eyewear sector. The plant in Ormoz, Slovenia, is specialised in the production of semifinished parts in injected plastic and Optyl as well as ski masks. The plant in Salt Lake City (USA) produces masks for skiing and motorcycling. The plant in Suzhou, China, produces unfinished components in acetate and metal. Outsourcing The Group's outsourcing policy fits into a wider strategy aimed at optimising the production capacity of its own facilities and containing costs. Production has been selectively outsourced through stable partnerships with a select number of major third-party manufacturers, most located in Asia, Italy and in the US, in order to contain costs, obtain manufacturing flexibility and devote greater attention to the specific needs of Asian consumers (Asian fitting). 5

7 High product quality is a key element in the Group s strategy and quality control for both internal and outsourced production is managed directly by Group employees. Certifications All the Group's products comply with current regulations in the countries in which they are sold. Particularly regarding European Union legislation, products bear the CE mark, where required. Furthermore Safilo, after obtaining the UNI EN ISO 9001:2004 Certification in 1996, has been UNI EN ISO 9001:2000 ( vision 2000 ) certified since The certification granted to Safilo is accredited by Sincert, the national body for the accreditation of certification and inspection organs, recognised at an international level, in the context of the Mutual Recognition Agreements (such as EA, ILAC and EAF). Patents Products by Safilo are conceived to appeal to the public, irrespective of the reference market, and to guarantee maximum product performance in both the fashion and sport sectors. Safilo registered more that 30 patents from 2004 to These include the Reverse Lens, a ski helmet with an adjustable safety device to allow it to be adapted to the shape of the head, eyewear with an integral plastic hinge with magnets, and frames with foldable temples. R&D Particular attention has always been paid to investment in research and development, with a special R&D Centre that has operated since the 1970s and which employs dozens of engineers and experts to carry out continuous research to identify increasingly advanced technological solutions. 6

8 Safilo Group S.p.A. Distribution network The network Safilo Group is present in approximately 130 countries around the world and markets its products through more than 30 direct sales branches and a network of local representatives and distributors in its key markets (Europe, America, and Asia), reaching over 80,000 points-of-purchase around the world. From a commercial point of view, Safilo Group has implemented, over the past 30 years, a development policy for its direct distribution network, selectively opening branches in the markets that show the greatest potential in terms of quality and quantity, in order to directly control product distribution in key areas. The branches Safilo Group has always believed in a direct relationship with its customers, and this is why it has invested in a more organised structure: it has opened direct branches in order to provide optical customers, and as a result, end consumers, with an increasingly efficient and punctual service. Europe For the European market, companies have been set up in Belgium, the Netherlands, France, Germany, Austria, Spain, Sweden (which also serves Norway, Denmark, Finland, Latvia, Estonia and Lithuania), the United Kingdom, Greece, Portugal, Switzerland, Slovenia and Russia. In 2008 three new branches have been opened in the Czech Republic, Slovakia and Hungary. America Safilo Group is present in the American area with: Smith Sport Optics which specialises in sports sunglasses and is the U.S.A. market leader in the ski goggles and helmets segment; Safilo USA; Safilo do Brasil; Safilo Mexico; Safilo Canada and Canam (sports products) for the Canadian market. Asia In Asia, Safilo is present with Safilo Far East, with headquarters in Hong Kong, which coordinates sales activities in the Asian markets through the following companies: Safilo Hong Kong, Safilo Singapore, Safilo Japan, Safilo Australia, Safilo Malaysia, Safilo China, Safilo Korea and Safilo India. 7

9 Africa In Africa Safilo is present with Safilo South Africa. The retail chains In the USA, Safilo owns the retail chain SOLSTICE whose high-end points-of-purchase are noted for their high quality service, attention to detail and top quality products. It is also in Mexico with the Sunglass Island chain. Customer satisfaction The Group's increasing focus on customer satisfaction has led it to seek continuous improvement in the management of its distribution network: its call centres and logistics centres feature the most advanced technology available and they work together in synergy to ensure high standards. New systems are currently being examined for product coding, handling, and delivery management. A particularly significant project in this field, at the beginning of 2004, was the process of centralising all the Group s call centres at the highly automated Padua site. Thanks to cutting-edge software the customer is guaranteed fast and highly efficient assistance. 8

10 Safilo Group S.p.A. Development strategies Strategy The Safilo Group strategy is to further strengthen its current competitive position in the global market for high-end eyewear through partnership and licensing agreements with the primary brands in the luxury sector, and to continue to increase profit margins by pursuing greater operating efficiency. This vision requires constant research and stylistic innovation, the very highest standards of quality, and selective distribution that is restricted to retail outlets of a suitable level. Guidelines The Group s management has therefore identified a series of guidelines: optimisation of the management of the brand portfolio, through increasing on one hand the value of its own brands and, on the other, through focusing on the primary global brands for which it holds licenses, continuing to monitor the market to take advantage of any opportunities showing high potential in specific geographical markets, or linked to specific current trends; improvement of the efficiency and effectiveness of the Group's production and management processes by implementing a series of plans, including the rationalisation of its structural and production processes, which the Group has already been working on for several years now; strengthening of its distribution network and expanding in new markets, especially those with high growth potential, such as China, India, and Russia; continuance of superior design standards, and maintenance of its focus on technological innovation and R&D, through continuous investment in these areas in order to achieve top-quality design and innovative technological solutions to apply to frames and lenses, fulfilling and even anticipating customer needs. 9

11 Safilo Group S.p.A. History The Group s history dates back to 1934, when Guglielmo Tabacchi acquired the first Italian industrial complex for the manufacture of lenses and frames, active since 1878 in Calalzo di Cadore, and founded the operating company, Safilo ("Società Azionaria Fabbrica Italiana Lavorazione Occhiali") S.p.A. To allow the company to further develop and grow, a plant was opened in 1964 in S. Maria di Sala, in the province of Venice, to where the entire production of cellulose acetate frames was transferred and later, the administrative offices as well. The Service Centre in Padua was acquired in 1973, and in 1975 the product distribution division was transferred there, followed, in 1977, by the administrative and sales offices. With a view to commercial expansion abroad, the company established its first sales branches starting in the 1980s, in European countries including Belgium, Spain, Germany, France, and Sweden. In 1986, the Group acquired a controlling interest in the company Starline Optical Corp., one of the most important commercial firms in the US in the eyewear sector. Starting in the 1980s, the Safilo Group entered new market segments within the luxury eyewear sector, immediately capturing the potential of this market and making itself a driving force in reinventing the eyewear product, which was now beginning to be seen as a fashion accessory and no longer merely a tool for correcting eyesight. Other prestigious brands became part of the Safilo portfolio. Many important collections were launched: Gucci (1988), Pierre Cardin (1991), Diesel (1994), Christian Dior (1996), Max Mara (1997), Valentino (1998), Nine West (1998), Fossil (1999), Kate Spade (2000), Yves Saint Laurent (2001), Saks Fifth Avenue (2001), Bottega Veneta (2002), Liz Claiborne 10

12 (2002), Alexander McQueen (2002), Giorgio Armani (2003), Emporio Armani (2003), J.Lo by Jennifer Lopez (2003), 55DSL (2003), Marc Jacobs (2004), Juicy Couture (2005), Marc by Marc Jacobs (2006), Boss by Hugo Boss (2006), A/X Armani Exchange (2006), Hugo by Hugo Boss (2007), Balenciaga (2007), Max&Co. (2007), Banana Republic (2007), Jimmy Choo (2008). The Tommy Hilfinger collection will be launched on the market in Fall In 1986, Safilo S.p.A., leader in the eyewear sector, was listed on the Milan Stock Exchange. In 1988 the Group's new headquarters were inaugurated in Padua, and all departments and offices were moved there, as well as the design centre. In 1990 the new Longarone plant became operative; it is one of the most technologically advanced production facilities in the eyewear sector. The Safilo Group strengthened its presence in Europe and in the rest of the world by opening Safilo U.K. (1993), Safilo Hellas (1995), Safilo Nederland, and Safilo Austria (1996), Safilo Australia and Safilo South Africa (1997), Safilo Japan (1998), Safilo do Brasil (1999), Safilo Portugal and Safilo Switzerland (2000), Safilo Hong Kong, Safilo India, Safilo Singapore and Safilo Malaysia (2001), Safilo China (2003), Safilo Korea (2007), Safilo Mexico (2008), Safilo Cis-Russia (2009). In 2002 Safilo acquired the Solstice chain. In March 1996, Smith Sport Optics Inc., an American producer of sports eyewear, joined the Group, and in the same year, the Group acquired the Austrian company Carrera Optyl, becoming a leader in sports eyewear (sports sunglasses and ski goggles). On 28 th November 1996 the "Galleria Guglielmo Tabacchi" was inaugurated in the Safilo Group s Padua head offices. The Gallery was recently extended and on 16 th February 2009 a grand reopening took place in the presence of the Italian Minister for the Arts and Cultural Assets, Sandro Bondi. It is the most extensive and complete private collection of eyewear and objects from the optical world, a real museum. 11

13 The Gallery bears witness to important moments in history and fashion: from the birth of eyeglasses in Venice in 1285, through seven centuries of history, up to the rebirth of Italian eyewear in Cadore. At the beginning of 2000, the Group took some important innovative steps, both from a production and logistical point of view, and in relation to its strategic and operational plans. In 2001 a new centralised warehouse, a cutting-edge, highly-automated facility, was built and inaugurated at the central site in Padua. In May 2001, Chairman Vittorio Tabacchi launched a takeover bid through which he acquired a majority shareholding in Safilo S.p.A., and in December of the same year, following the bid's success, the company was de-listed. In December 2002, as part of a leveraged buyout supported by the family of Cavaliere del Lavoro Vittorio Tabacchi, CSFB Private Equity entered the company's equity structure, which it left at a later date. The Group equipped itself with advanced CRM (customer relationship management) systems, including, among other things, centralisation in Padua and expansion of its European call centre services. From 2004 onwards, this was supplemented by work to strengthen and reorganise the marketing and sales departments, in order to provide better support for the development of the collections. In December 2005 Safilo was once again listed on the Italian Stock Market through a Global Offer composed of a Public Offer of Sale and Subscription. On 19 th October 2009 the Board of Directors approved a recapitalization plan for the Company to be executed in connection with a binding investment agreement underwritten by HAL Holding N.V., Only 3T S.p.A and Safilo. 12