Burbury Brit

Burberry. Lanvin. Van Cleef & Arpels. Jimmy Choo. Paul Smith.
Montblanc. S.T. Dupont. Nickel. The Gap. Banana Republic.
Brooks Brothers. bebe. New York & Co. Anthropologie
Investor Presentation
April 2010
Fair Disclosure
Statements in this presentation which are not historical in nature are
forward-looking statements. Although we believe that our plans, intentions
and expectations reflected in such forward-looking statements are
reasonable, we can give no assurance that such plans, intentions or
expectations will be achieved. You should not rely on forward-looking
statements because actual events or results may differ materially from those
indicated by these forward-looking statements as a result of a number of
important factors. These factors include, but are not limited to, the risks
and uncertainties discussed under “Forward Looking Statements” and
"Risk Factors" in Inter Parfums' Annual Report on Form 10-K and the
reports Inter Parfums files from time to time with the SEC. Inter Parfums
undertakes no duty to update the information contained in this
presentation.
2
Investment Highlights



Global marketer of prestige perfumes and beauty products
with a portfolio of well-recognized fashion brands, both
licensed and owned outright
Large and attractive industry
Preferred partner
 Creative product development
 Brand building expertise
 Global distribution

Multi-pronged growth strategy
 Continue to grow existing fragrance brands
 Extend existing brands into new categories
 Acquire new brands

Specialty retail partnerships established for this high
growth beauty channel
3
A Global Marketer of Beauty Products
European Operations
Prestige Fragrances
U.S. Operations
Specialty Retail
Mass Market
4
Burberry

Distinctive, upscale-market and classic image, with an undeniable
international cachet

10% five-year compounded annual growth rate in net sales

Brands include Burberry, Burberry Week End, Burberry Touch,
Burberry Brit, Burberry London and Burberry The Beat

Launch underway – new Burberry Sport fragrance and color
cosmetics
Burberry
Burberry
Week End
Burberry
Touch
Burberry
Brit
5
Burberry
London
Burberry
The Beat
Burberry
Now launching
Burberry Sport for women
Burberry Sport for men
6
Lanvin


French fashion house founded in 1889 known for luxury & elegance
Fragrances: Arpège, Eclat d‟Arpège, Arpège Pour Homme, Rumeur
and Jeanne Lanvin

Lanvin L‟ Homme Sport launched in Q1‟09 featuring tennis star,
Rafael Nadal

2010: A new women‟s fragrance
Arpège
Eclat d‟
Arpège
Rumeur
7
Jeanne Lanvin
Lanvin
L‟Homme Sport
Van Cleef & Arpels

IPAR‟s first luxury jewelry brand

Fragrances include Tsar, First, Feerie and Collection Extraordinaire

2010: A new women‟s fragrance Oriens & a new men‟s fragrance
Tsar
First
Collection
Extraordinaire
Feerie
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Oriens
Paul Smith
 British designer with modern style which combines elegance,
inventiveness and a sense of humor
 Fragrances include Paul Smith, Paul Smith Extreme, Paul Smith
London, Paul Smith Story, Paul Smith Rose and Paul Smith Man
 2010 : A new women‟s fragrance
Paul Smith
Paul Smith
Extreme
Paul Smith
London
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Paul Smith
Story
Paul Smith
Rose
Paul Smith
Man
S.T. Dupont

Manufacturer of luxury writing instruments and accessories

Fragrances include Essence Pure, L‟Eau de S.T. Dupont,
Noir, Blanc, Passenger , and Rose

2010: A new women‟s fragrance
Essence Pure
L‟Eau de S.T. Dupont
Rose
Noir
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Blanc
Passenger
Jimmy Choo
 12 year exclusive licensing agreement effective Jan. 2010
 Best known for luxury shoes, handbags and accessories
 Products sold in 100 Jimmy Choo
boutiques in 32 countries, plus
prestigious department and
specialty stores
JIMMY CHOO
 First new fragrance under
development for launch in early
2011
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Montblanc
 10.5 year exclusive license effective 7/1/10
 More than 100 year old luxury brand,
known for writing instruments, watches,
leather goods, and jewelry
 Brand sales in 70 countries through a
network of more than 350 boutiques
 First new fragrance to launch in 2011
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Nickel
•
 Range of men‟s skin care products for
the face and body is sold through
prestige department and specialty
stores primarily in France, Western
Europe and the U.S.
 Nickel spas in Paris, New York and
London
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Large and Attractive Industry
Fragrance Industry

World market size approximately $27 billion

Nearly 300 new product launches
 –
„09 Global Fragrance
Sales by Geography
Asia Pacific
19%
Europe
49%
2005 – 2009 Sales CAGR
Americas
32%
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Fragrance Industry: 3%
Inter Parfums:
10.6 %
Preferred Partner
 Our size enables us to work closely with brand
owner in the product development process
 Creative product development that captures
the essence of a brand
 Brand building expertise and targeted
geographic market launches that maximize
impact
 Ability to grow portfolio brands through new
product development
 Over 25 years of knowledge and experience
with a proven track record of product
launches
 Global distribution
15
Demonstrated Success
„95
„97
„00
‟03-‟05
„06
„08
„10
Burberry
Burberry
Weekend
Burberry
Touch
Burberry
Brit
Burberry
London
Burberry
The Beat
Burberry
Sport
Burberry Brand Sales
($ in millions)
300
250
200
150
100
50
0
146.3
163.2
182.0
2004
2005
2006
210.0
2007
16
248.4
232.0
2008
2009
Global Distribution Footprint
 Our products are distributed in over 120 countries through better
department stores, perfumeries and specialty retail stores
Inter Parfums, Inc.
2009 Sales by Region
17
Multi-Pronged Growth
2010 New Product Pipeline
 Burberry Sport fragrances (M&F)
 Burberry cosmetics line (F)
 VCA fragrances (F & M)
 Lanvin fragrance (F)
 Paul Smith fragrance (F)
 S.T. Dupont fragrance (F)
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Multi-Pronged Growth
Extend into New Categories
 Add new products such as skin care and cosmetics under
existing brands, i.e. we plan to introduce new skin care
products under the Burberry brand over the next few years
 Explore other opportunities on the treatment side of the
beauty business, leveraging the expertise of our Nickel
team
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Multi-Pronged Growth
Acquisitions, Agreements and New Licenses
Dec 1998:
Signed Paul Smith
License Agreement
July 2005:
Signed Gap, Inc.
Agreement
November 2007:
Brooks Brothers
Agreement
April 2007:
Signed New York &
Company Agreement
July 1997:
Signed S.T. Dupont
License Agreement
‘93
January 2010:
Montblanc
Agreement
July 2008:
bebe stores, inc.
Agreement
‘10
1993:
Signed Burberry
License Agreement
June 2004:
Signed Lanvin
License Agreement
April 2004:
Acquired
stake in Nickel
January 2007:
Van Cleef & Arpels
Agreement
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August 2007:
Acquired Lanvin
Brands
October 2009:
Jimmy Choo
Agreement
Fast Growing Specialty Retail Beauty
 Gap, Inc. agreement marked IPAR‟s entry into specialty retail
 Amended to include GAP Outlet Stores & Banana Republic Factory
Stores
 Amended to include international distribution through Gap and Banana
Republic stores, select specialty and department stores outside U.S
including duty-free and other travel retailers
IPAR
GAP, Inc.
 Product development, formulation,
packaging, manufacturing and inventory
management
 Marketing, advertising and selling in its
North American stores
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The Discover Collection
22
Latest Additions
Republic of Men & Republic of Women
23
Eau de Toilette
for Women
Domestic
Launch in
April 2009
International
Distribution
in Fall 2009
24
International Launch Highlights
25
bebe
NORTH AMERICAN DISTRIBUTION:
 Direct sales to over 200 bebe stores in U.S., Puerto Rico, U.S. Virgin
Islands and Canada
 Signature fragrance launched in 2009 at bebe stores and at 300+ Dillard‟s
stores
 Color cosmetics and nail color
 bebe Sheer, new fragrance in 2010
LICENSE FOR INTERNATIONAL DISTRIBUTION:
 Specialty retail, including licensed bebe stores and
department stores internationally begun in fall 2009
 Potential for duty-free and travel retail
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Brooks Brothers
U.S. DISTRIBUTION:





Direct sales to over 200 Brooks Brothers stores in U.S.
Brooks Brothers New York launched in November 2008
Black Fleece, new for men and women, in fall 2009
Miss Madison, new scent for 2010
Three new scents for Black Fleece – Red, White and Blue
LICENSE FOR INTERNATIONAL DISTRIBUTION:
 Specialty retail, including 120 Brooks Brothers stores and department
stores including duty-free and travel retail
 Brooks Brothers New York international launch in spring 2009 and
Black Fleece in 2010
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 Inter Parfums selected to create new fragrance
line for stores, internet sales and catalog
 Special fragrance collection including home
fragrance for holiday 2010
 137 stores in U.S., Canada and first store in
Europe
 A unit of Urban Outfitters
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NEW FRAGRANCE LINE
COMING …..
New York & Company
 591 stores in 44 states targeting fashion-conscious,
value-sensitive women between the ages of 25 and 45
 Lip gloss and lip balm 2008
 New York & Company fragrance
introduced in late 2009
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Track Record of Performance
Net Sales ($ in millions)
Net Income ($ in millions)
$600
$500
$400
$321.1
$389.6
$446.1
$30
$25
$20
$15
$10
$5
$0
$409.5 $440.0
$300
$200
$100
$0
2006
2007
2008
2009
2010*
(est)
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$23.8
$22.4
$23.5
2007
2008
2009
2010*
(est)
$17.7
2006
* Assumes $ remains at current levels
$23.8
Year Ended December 31
2009
2008
%
change
Net Sales
$409.5
$446.1
(8%)
Gross Profit
$234.2
$254.2
(8%)
Gross Margin
57.2%
57.0%
20 bps
Operating Income
$44.8
$51.0
(12%)
Operating Margin
10.9%
11.4%
(50 bps)
EBITDA
$55.8
$60.9
(8%)
EBITDA Margin
13.6%
13.7%
(10 bps)
Net Income (IP)
$22.4
$23.8
(6%)
Net Income Margin (IP)
5.5%
5.3%
20 bps
Diluted EPS (IP)
$0.74
$0.77
(4%)
($ in millions, except per share data)
31
Strong Balance Sheet
 Working Capital: $198.0 Million
 Current Ratio: almost 2.9 to 1.0
 Cash and Cash Equivalents: Over $100 million
 Long-Term Debt: $17.9 Million
 Annual Dividend: $0.26 per share
 Low Capex: Generally Less than 1% of Sales
As of 12/31/09
32
Outlook
2009
2010*
 Sales of $409.5 million
 Sales of $440 million
 Net income of $22.4
million (attributable to
Inter Parfums, Inc.)
 Net income of $23.5
million (attributable to
Inter Parfums, Inc.)
 Diluted EPS of $0.74
 Diluted EPS of $0.78
*Assumes $ remains at current levels
33
Long-Term
 Generate 10+% internal
revenue growth
 EPS growth of 12%15%
 Future acquisitions, if
any, will be additive
Summary
 Global marketer of prestige perfumes and beauty products with a
portfolio of well-recognized fashion brands, both licensed and
owned outright
 Large and attractive industry
 Preferred partner
 Creative product development
 Brand building expertise
 Global distribution
 Multi-pronged growth strategy
 Continue to grow existing fragrance brands
 Extend existing brands into new categories
 Acquire new brands
 Specialty retail partnerships established for this high growth beauty
channel
34
Burberry. Lanvin. Van Cleef & Arpels. Jimmy Choo. Paul Smith.
Montblanc. S.T. Dupont. Nickel. The Gap. Banana Republic.
Brooks Brothers. bebe. New York & Co. Anthropologie
Investor Presentation
April 2010