ANALYST PRESENTATION 9M 2011 November 9, 2011 1
Disclaimer This document contains forward-looking statements, which are based on the current estimates and assumptions by the management of TOM TAILOR Holding AG. Forwardlooking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate and similar formulations. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by TOM TAILOR Holding AG and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside TOM TAILOR Holding AG s control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. TOM TAILOR Holding AG neither plans nor undertakes to update any forward-looking statements. 2
9M 2011 development at a glance: Profitable growths continues Sales increased by 19% to 295.3m in 9M; Retail segment grows lfl 5.4% and significantly outperforms the German textile market (-1%) Expansion of controlled distribution areas well on track Gross margin increased up to 47.2% in 9M (+110 bps vs. last year s period) Recurring EBITDA reached 27.2 m in 9M ( 29.3 m) Outlook for 2011 confirmed assuming consumer confidence remains robust in Q4 2011 3
Sales overview: growth driven by expansion in the Retail-Segment Sales development TOM TAILOR Group Comments + 18.7% 248.8 295.3 9M 2010 9M 2011 Sales development Wholesale + 7.2% 179.6 192.5 Share of international sales reaches 34.8% following 30.9% in 9M 2010 Solid growth in all relevant markets Wholesales sales in Russia confirms new strategy in this region 8.1m in 9M (+ 62.4%) Wholesale represents 65% of Group sales 9M 2010 9M 2011 Sales development Retail + 48.6% 69.2 102.8 9M 2010 9M 2011 63 additional retail stores in 9M 2011 Sales increase by 46.1% in Q3 despite strong comparative figures and adverse weather conditions Retail represents 35% of Group sales Lfl growth of 5.4% in 9M 2011 (market average: -1%) 4
Expansion of controlled distribution areas well on track Controlled distribution Retail / B2C Wholesale / B2B Retail E-commerce Franchise Shop-in-shops Multi-label POS (as of Sept. 30, 2011) tom-tailor.de 221 in Europe tom-tailor.at 155 in Europe 1.726 in Europe ~6.000 worldwide tom-tailor.nl Highlights 9M 2011 + 63 stores versus Dec. 31, 2010 Opening of tom-tailor.be tom-tailor.fr 15 store openings + 285 shopin-shops versus Dec. 31, 2010 Number of POS remains stable Target 2011 Further expansion to 60-70 new stores strengthen e- 20-25 new stores commerce presence 200-250 new shopin-shops Figure to remain stable 5
TOM TAILOR: a key winner in the current Spiegel Outfit study criteria brand awareness Puma H&M s.oliver Nike Esprit Jack Wolfskin TOM TAILOR Lacoste Top 10 companies: brand awareness Adidas 2011 59 71 78 87 88 87 91 97 96 96 93 93 93 96 95 95 95 97 + 22 % 2007 Hugo Boss 79 93 Source: Spiegel Outfit study 7.0 (2011); Spiegel Outfit study 6 (2007) 6
TOM TAILOR: a key winner in the current Spiegel Outfit study criteria brand ownership Adidas H&M s.oliver Esprit Nike Puma Levi s TOM TAILOR Top 10 companies: brand ownership 70 57 63 47 61 41 59 39 58 34 56 39 51 38 49 22 + 27 % 2011 2007 New Yorker n.a. 38 Reebok 26 34 Source: Spiegel Outfit study 7.0 (2011); Spiegel Outfit study 6 (2007) 7
TOM TAILOR: a key winner in the current Spiegel Outfit study criteria willingness to buy 84 Adidas 58 2011 Puma Nike s.oliver TOM TAILOR Levi s Esprit Top 10 companies: willingness to buy 26 41 39 43 43 46 76 76 76 79 78 80 + 50 % 2007 H&M 46 76 Jack Wolfskin 23 69 Reebok 34 66 Source: Spiegel Outfit study 7.0 (2011); Spiegel Outfit study 6 (2007) 8
TOM TAILOR strenghtens its presence on Asian procurement markets Foundation of TOM TAILOR Sourcing Ltd. with long standing Partner Asmara International From 2012 onwards, TOM TAILOR will benefit from direct access to Asmara s purchasing offices and infrastructure in Indonesia, Hong Kong, China, India, Bangladesh, Vietnam, Cambodia and Pakistan TOM TAILOR holds 51% in TOM TAILOR Sourcing Ltd., Asmara International 49% No agency related black box going forward (direct control of Asian purchasing activities) TOM TAILOR sourcing by fob turnover (country split as of November 2011) Indonesia 12% Others 5% Pakistan 5% Europe 8% India 15% China 32% TOM TAILOR sourcing by volume 2011 (country split as of November 2011) Others 3% Pakistan 4% Europe 8% China 20% Bangladesh 23% + Clear visibility on supplier cost calculation Indonesia 11% + Gross margin improvement expected from 2012 onwards India 17% Banglasdesh 37% 9
Gross margin comparison 2009 2011: Margin in Q3 2011 above Q3 2010 and 2009 60 % 60.0 59.2 2009 2010 55.8 2011 50 44.5 47.0 44.8 44.4 47.6 50.0 45.8 44.4 46.7 41.8 42.3 48.4 45.6 40 38.8 09 10 11 09 10 11 09 10 11 09 10 11 09 10 11 Group Wholesale Retail Q1 Q2 Q3 09 10 Q4 11 10
Seasonality: Quarterly sales and profitability development Sales development Q1 Q2 Q3 9M Q4 FY 2011 86.3 90.3 118.6 295.3 > 400 2010 76.4 70.9 101.5 248.8 98.9 347.7 Recurring EBITDA development Q4 2011 sales should benefit from price increases and higher share of retail sales Q1 Q2 Q3 9M Q4 FY 2011 4.0 6.2 17.1 27.2 ~ 48 2010 9.9 3.6 15.8 29.3 10.8 40.1 Q4 2011 EBITDA should also benefit from no additional transport cost 11
TOM TAILOR profitability: Increasing impact of existing stores on profitability going forward % 100 pre IPO post IPO going forward 19% 16% new stores in % existing stores in % 75 31% 45% 37% 50 25 69% 55% 63% 81% 84% Dec. 31, 09 Dec. 31, 10 Dec. 31, 11e Dec. 31, 12e Dec. 31, 13e number of stores 87 158 249 309 369 Increasing annual proportion of existing stores as a percentage of total stores will boost profitability going forward 12
Outlook for 2011 confirmed Net sales: > 400m EBITDA: approx. 48m TOM TAILOR on track to reach 2011 targets assuming consumer confidence remains robust in Q4 2011 13
Differentiation criteria from competitors FINANCIAL HIGHLIGHTS 9M/Q3 2011 14
Profit & loss 9M 2011 TOM TAILOR Group: Profitable growth continues Key figures 9M 2011 Comments Sales 248.8 + 18.7% 295.3 Share of international sales increased to 34.8% following 30.9% in 9M 2010 9M 2010 9M 2011 Gross profit + 21.4% 114.7 139.3 9M 2010 9M 2011 Gross profit margin rose from 46.1% to 47.2% mainly due to higher selling prices as of February. Effects partially offset by higher input costs, especially in Q1, and higher level of markdowns in Retail-Segment Recurring EBITDA 29.3 9M 2010-7.2% 27.2 9M 2011 Recurring EBITDA below last year s level due to lower gross margin in Q1, opening costs for new stores and a Retail EBITDA below last year s level Recurring net income 6.5-12.3% 5.7 Recurring net income slightly down mainly due to lower operational result 9M 2010 9M 2011 15
Profit & loss Q3 2011 TOM TAILOR Group: Difficult quarter due to adverse weather and strong comparables Key figures Q3 2011 Comments Sales + 16.8% 101.5 118.6 Q3 2010 Q3 2011 Sales growth in both segments: Wholesale up 6.3%, Retail up 46.1% Sales achieved in core markets represent 88% of Group sales and are up by 14.9% Gross profit + 22.8% 45.1 55.4 Q3 2010 Q3 2011 Gross profit margin strongly increased from 44.4% to 46.7% mainly driven by increase in selling prices as well as shortfall of additional air freight costs. Effects partially offset by higher markdowns in the Retail segment Recurring EBITDA + 8.2% 15.8 17.1 Q3 2010 Q3 2011 Recurring EBITDA slightly exceeded last year s recurring EBITDA Recurring net income - 36.4% 9.9 6.3 Q3 2010 Q3 2011 Recurring net income impacted by higher net financials and tax expenses 16
Profit & loss Segment Wholesale: Strong increase in profitability in Q3 2011 Key figures Wholesale Q3 2011 Comments Sales + 6.3% 74.6 79.3 Q3 2010 Q3 2011 Solid sales increase of 6.3%; Wholesale represents 67% of Group sales Sales shift to Retail segment due to take-over of Franchise stores in Austria and Germany Order intake until Dec. 2011 7.5%, order intake Jan-February 2012 9.8% above previous year Gross profit + 15.5% 29.0 33.5 Q3 2010 Q3 2011 Gross margin increased strongly from 38.8% to 42.3% due to higher selling prices and shortfall of additional freight costs. Effects slightly offset by higher salaries in the production countries Recurring EBITDA 12.6 Q3 2010 + 15.1% 14.5 Q3 2011 Strong increase in gross margin led to a rising recurring EBITDA Recurring EBITDA margin reached 18.3% following 16.9% in Q3 2010 17
Profit & loss Segment Retail: EBITDA slightly decreases in Q3 2011 Key figures Retail Q3 2011 Comments + 46.1% Strong sales growth of 46.1% Sales 26.9 39.3 Q3 2010 Q3 2011 Adverse weather conditions lead to higher level of markdowns in Q3 Segment growths like-for-like 2.3% and once again outperforms the German textile market Gross profit 16.1 + 36.0% 21.9 Gross margin reaches 55.8% after 60.0% in Q3 2010 impacted by difficult situation in Q3 Q3 2010 Q3 2011 Recurring EBITDA 3.2-18.8% 2.6 EBITDA margin reaches 6.6% following 11.8% in Q3 2010 Q3 2010 Q3 2011 18
Segment Retail: Accelerated growth momentum due to prudent expansion of store portfolio in Q3 m 5.4 0.0 0.6 2.9 3.5 Recurring EBITDA development Lower EBITDA margin due to margin lower gross margin and 26.9 3.2 39.3 pre-opening costs 11.8% 2.6 6.6% Q3 2010 Q3 2011 Q3 2010 Lfl stores New stores 2010 * TOM TAILOR South Eastern Europe Expansion 2011 TT SEE*/ Sagmeister Closings Q3 2011 19
Capex 9M 2011: Used for expansion in controlled distribution areas Capex 9M 2011 Comments TOM TAILOR Group 19.1 17.5 9M 2010 9M 2011 Expansion of controlled distribution areas leads to Capex of 17.5m (9M 2010 19.1m) Repair & maintenance Capex of 0.9m (9M 2010 0.9 m) Wholesale 9.6 7.3 9M 2010 9M 2011 Wholesale Capex: 285 additional shop-in-shops 6.0m invested in controlled distribution areas Retail 9.5 10.2 9M 2010 9M 2011 Retail Capex: 63 additional stores in 9M 2011 8.7m invested in controlled distribution areas 20
Cashflow seasonality: Strong cash inflow in Q4 Operating cashflow 2011 Capex 2011 2010 2011 22.9 25.4 15 9.5 8.5 1.0-1.0-10.8-10.5-6.6-7.9 Q1 Q2 Q3 9M Q4 FY FY CAPEX 2011 completely covered by operating cashflow From 2012 onwards, operating cashflow will exceed CAPEX needs 21
TOM TAILOR QUESTIONS? ANSWERS! 22
Contact details Investor Relations Please do get in touch with us: TOM TAILOR HOLDING AG Garstedter Weg 14 22453 Hamburg Dr. Andrea Rolvering Head of Investor Relations & Corporate Communications Tel: +49 (0) 40 589 56 429 Fax: +49 (0) 40 589 56 498 Mobile: +49 (0) 172 399 59 13 Email: anr@tom-tailor.com 23