Balmain. Boucheron. Jimmy Choo. Karl Lagerfeld. Lanvin.

Balmain. Boucheron. Jimmy Choo. Karl Lagerfeld. Lanvin.
Montblanc. Paul Smith. Repetto. S.T. Dupont. Van Cleef & Arpels.
Abercrombie & Fitch. Agent Provocateur. Anna Sui. Banana Republic.
bebe. Dunhill. Hollister. Oscar de la Renta. Shanghai Tang.
Investor Presentation
March 2015
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
3
Global Marketer of Beauty Products
European Operations
U.S. Operations
4
Net Sales, Ongoing Brands
Net Sales, Ongoing Brands
($ in millions)
$534.3
in C$**
$600
$499.3
$500
$433.0
$400
$300
$200
$307.6
$470.0
$352.7
$215.5
$100
$0
2010
2011
2012
2013
2014
* Assumes $ remains at current levels
** On a constant currency basis, anticipated 2015 sales growth is ~7% vs 2014
5
2015*
(est)
Montblanc
 More than 100 year old luxury brand, known for writing
instruments, watches, leather goods, and jewelry sold in 70
countries in more than 350 boutiques
 2014: Brand sales $110.0 million
 2014: Emblem, new men’s fragrance
 2015: New scent for women
Legend
Legend Pour
Femme
6
Emblem
Lanvin
 French fashion house founded in 1889 known for luxury &
elegance
 Fragrances: Arpège, Eclat d’Arpège, Rumeur, Jeanne Lanvin,
Marry Me!, Avant Garde, Jeanne Lanvin Couture and Me L’Eau
 2014: Brand sales $90.3 million
 2015: New scents for men and women
Eclat d’ Arpège
Jeanne Lanvin
Marry Me!
7
Jeanne Lanvin
Couture
Me L’Eau
Jimmy Choo
 Best known for luxury shoes, handbags and accessories, sold
in Jimmy Choo boutiques, plus prestigious department and
specialty stores
 2014: Brand sales $78.5 million
 2014: Jimmy Choo Man, first men’s fragrance
 2015: New women’s scent
Jimmy Choo
8
Flash
Man
Van Cleef & Arpels
 IPAR’s first fragrance license for a luxury jewelry brand
 Fragrances: Van Cleef, Tsar, First, Feerie, Collection
Extraordinaire, Oriens, Midnight in Paris, and RÊVE
 2014: Brand sales $23.5 million
 2015: A new scent for women
First
Feerie
Oriens
9
RÊVE
Karl Lagerfeld
 Lagerfeld, a global fashion icon
 Signature scents launched in March 2014
 2014 Brand sales $24.2 million
10
Boucheron




More than 150 year old luxury brand, best known for jewelry
Place Vendôme, first new women’s fragrance by IPAR
2015: Quatre, a new scent for men and women
2014: Brand sales of $18.6 million
Jaïpur Homme
Jaïpur Bracelet
Place Vendôme
11
Quatre
Paul Smith
 British designer with modern style which combines elegance,
inventiveness and a sense of humor
 Fragrances: Paul Smith, Paul Smith Extreme, Paul Smith
Rose, Paul Smith Man
 2014: Paul Smith Extreme Sport
Paul Smith
Paul Smith
Extreme
Paul Smith
Rose
12
Paul Smith
Extreme Sport
S.T. Dupont
 Manufacturer of luxury writing instruments and accessories
 Fragrances: S.T. Dupont, Essence Pure, Passenger, Passenger
Cruise and 58 Avenue Montaigne
 2014: So Dupont, duo for men and women
Paris Saint Germain Collaboration
 2014: Brand sales of $17.1 million
S.T. Dupont
Passenger
58 Avenue
Montaigne
13
Paris Saint
Germain
So Dupont
Repetto




Created in 1947, Repetto is a legendary name in the world of dance
Ambitious plan of international expansion
Signature fragrance launched in July 2013
2014: Brand sales $12.4 million
14
Balmain
 Balmain couture house was founded in 1945 by Pierre Balmain
 Took over existing fragrances in 2012
 2014: Extatic, first women’s fragrance by IPAR
 2015: New scent for men
Extatic
Ivoire
15
Anna Sui
 Anna Sui clothing and accessories sold in 300 sales outlets in
30 countries
 Very popular and well represented throughout Asia
 2014: Brand sales $21.5 million
 2015: New women’s scent
16
Dunhill





Exclusive 10-year worldwide license
Global luxury brand in the high end segment of men’s fashion
2014: Brand sales $16.2 million
2014: New men’s scent Desire Black
2015: Dunhill Icon, a new scent for men
17
Oscar de la Renta




Exclusive 12-year worldwide license
Iconic brand in both the world of fashion and fragrance
2014: Brand sales of $15.8 million
2015: Extraordinary, a new scent for women
18
Agent Provocateur
 Exclusive 10.5-year worldwide license
 British luxury lingerie brand globally known for its provocative,
edgy style
 2014: Two new fragrances, Fatale and Fatale Pink
19
Shanghai Tang
 Exclusive 12-year worldwide license
 China’s leading luxury brand - champions the richness and beauty
of Chinese culture
 2015: Global distribution of Silk Road collection by IPAR
20
Banana Republic
 Exclusive worldwide license
 Specialty retailer of men’s and women’s apparel and accessories
with an emphasis on modern and affordable luxury
 2014: New men’s and women’s scent, Modern
Women
Men
21
Abercrombie & Fitch
 Exclusive 7-year worldwide license for Abercrombie & Fitch and
Hollister Co. brands
 Specialty retailer of high-quality, casual apparel for men, women
and kids with an active, youthful lifestyle
 2016: New scents for men and women for both brands
22
bebe
 Exclusive worldwide license
 Distribution: bebe stores, department stores, international
including duty-free/travel retail
 2014: Nouveau Chic, brand extension
 2015: New women’s scent
23
Large and Attractive Industry
Fragrance Industry

World market size approximately $45 billion*
2014 Global Fragrance Industry
Sales by Geography*
Europe
43%
Asia Pacific
24%
2009 – 2014 Sales CAGR
Americas
33%
* Estimates
24
Fragrance Industry:
3%
IPAR Ongoing brands:
23%
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 30 years of knowledge and experience with a proven track
record of product launches
 Global distribution
25
Demonstrated Success
‘05
‘06
‘08
‘10
‘12
Arpège pour
Homme
Rumeur
Jeanne Lanvin
Marry Me!
Jeanne Lanvin
Couture
‘13
Me L’Eau
Lanvin Fragrance Sales
(in millions of $)
110
90
70
50
36.7
45.7
56.7
70.2
80.2
86.1
90.3
2011
2013
2014
30
10
-10
2005
2007
2009
2010
26
Global Distribution Footprint
 Our products are distributed in over 100 countries through better
department stores, perfumeries and specialty retail stores
 Company-controlled distribution in United States, France, Germany,
Italy and Spain
Inter Parfums, Inc.
2014 Sales by Region
Europe
38%
Asia Pacific
25%
Americas
37%
27
Multi-Pronged Growth
2015 Launches
European Operations
U.S. Operations
 Montblanc (W)
 Oscar de la Renta (W)
 Jimmy Choo (W)
 Dunhill (M)
 Boucheron (M & W)
 Anna Sui (W)
 Lanvin (M & W)
 bebe (W)
 Balmain (M)
 Shanghai Tang (M & W)
 Van Cleef & Arpels (W)
28
Multi-Pronged Growth
Extend into New Categories
TRAVEL AMENITIES
 Lanvin: supplying Sofitel, the five star hotel chain with more than 120
properties
 Oscar de la Renta: supplying Peninsula Hotels, 10 properties
 Shanghai Tang: under development
29
Multi-Pronged Growth
Acquisitions and New Licenses
Nov. 2007:
Brooks Brothers
July 1997:
S.T. Dupont
July 2005:
Gap, Inc.
July 2010:
Betsy Johnson
Oct. 2009:
Jimmy Choo
Dec. 2012:
Dunhill
Dec. 2010:
Boucheron
Dec. 2011:
Repetto
Dec. 2014:
Abercrombie & Fitch
and Hollister
August 2013:
Agent Provocateur
‘15
June 2004:
Lanvin
Dec. 1998:
Paul Smith
July 2008:
bebe stores, inc.
Jan. 2007:
Van Cleef & Arpels
July 2011:
Balmain
Jan. 2010:
Montblanc
June 2011:
Anna Sui
30
July 2013:
Shanghai Tang
Oct. 2012:
Karl Lagerfeld
Dec. 2013:
Oscar de la Renta
Track Record of Performance
$700
$600
$500
$400
$300
$200
$100
$0
Net Sales, as Reported
Net Sales, Ongoing Brands
($ in millions)
($ in millions)
$615.2 $654.1
$600
$563.6
$460.4
$499.3
$500
$499.3 $470.0
$433.0
$400
$300
$200
$534.3
in C$**
$307.6
$470.0
$352.7
$215.5
$100
$0
2010
2011
2012
2013
2014
2015*
(est)
2010
2011
* Assumes $ remains at current levels
** On a constant currency basis, anticipated 2015 sales growth is ~7% vs 2014
31
2012
2013
2014
2015*
(est)
Three Months Ended December 31,
($ in millions, except per share data)
2014
2013
Change
$125.1
$105.5
18.6%
$74.4
$60.5
22.9%
59.4%
57.3%
208 bps
$4.4
($10.8)
NM
3.6%
(10.2%)
$6.9
($8.1)
EBITDA Margin
5.5%
(7.7%)
Net Income (IP)
$3.3
($4.2)
Net Income Margin (IP)
2.7%
(3.9%)
Diluted EPS (IP)
$0.11
($0.13)
Net Sales
Gross Profit
Gross Margin
Operating Income (loss)
Operating Margin
EBITDA
32
NM
NM
NM
Strong Balance Sheet
 Working Capital: $383 Million
 Cash, Cash Equivalents and Short-Term Investments: $280 Million
 Working Capital Ratio: 4.7 to 1
 No Long-Term Debt
 Annual Dividend: $0.52 per share
 Low Capex: Generally Less than 1.5% of Sales
As of 12/31/14
33
Outlook
Long-Term
2014
 Net sales of $499.3 million
 Generate 10+% internal
revenue growth
 Diluted EPS of $0.95
 EPS growth of 12%-15%
2015*
 Future acquisitions, if
any, will be additive
 Net sales of $470.0 million
 Diluted EPS of $0.98 to $1.00 (Est)
*Assumes $ remains at current levels
34
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
35
Balmain. Boucheron. Jimmy Choo. Karl Lagerfeld. Lanvin.
Montblanc. Paul Smith. Repetto. S.T. Dupont. Van Cleef & Arpels.
Abercrombie & Fitch. Agent Provocateur. Anna Sui. Banana Republic.
bebe. Dunhill. Hollister. Oscar de la Renta. Shanghai Tang.
Investor Presentation
March 2015