CLSA Investors’ Forum 2016 September 19, 2016
O u r V i s i o n
To take our diverse portfolio of brands global through licensing,
ownership and brand management. At the forefront of the industry,
we leverage the power of our brands and bring them to the right
market, the right channel, at the right time
Global Brands
•One of the world’s leading branded apparel, footwear and fashion accessories companies
•Listed on the Hong Kong Stock Exchange on 9 July 2014, after a successful spin-off from Li & Fung
•Constituent of Hang Seng Composite Index Series,MSCI Index Series, FTSE4Good Index, and Hang Seng Corporate Sustainability Benchmark Index
•A global company headquartered in Hong Kongwith offices and about 3,800 employees worldwide
•Wholesale strategy Minimal physical infrastructure with strategic investment in retail creates a very flexible distribution model
•Diversification across sales channels Ability to weather rapid shift towards e-commerce and off-price
•Diversified licensed brand portfolio Flexibility to capitalize on different life stages of a brand, without the risk as a brand owner
• The partner of choice for brand owners Leadership position in kids and strong capabilities across our product categories
• Brand management platform is second to none Brand extension programs and deeper perspectives on consumers globally
•We are truly global
What Sets Us Apart
Our Global Reach
35 Countries50+ Offices
3,800 Employees
Florence
Tokyo
Seoul
Tel Aviv
Paris
Milan
Sao Paulo
Greensboro OperationSupport Hub
Singapore
New York US Headquarters
Los Angeles
Montreal
Hong Kong Global Headquarters
Shanghai China Headquarters
London European
Headquarters
Panyu Operation
Support Hub
Monheim
Some of Our Key Brands
7
W e a r e a w o r l d l e a d e r i n o u r p r o d u c t c a t e g o r i e s a n d t h e
w o r l d ’ s l a r g e s t b r a n d m a n a g e m e n t b u s i n e s s
Our Business Verticals
US$3.4 billion in turnover* FY 2016/17 1Q - turnover increased by 8.4% for
the three months ended 30 June 2016
* Based on 2015 Second Interim Results, 12-months ended 31 Dec 2015
Approx.3%
Brand Management
Approx.35%
Footwear and Accessories
Approx. 17%
Men’s and Women’s FashionKids
45%Approx.
0
1
2
3
4
Carte
r's
Glob
al B
rand
s
Nike
Gym
bore
e
Adid
as
Bala
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erca
re
Bene
tton
Glo
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(U
S$bn
)
3.9
3.0*
1.3 1.2 1.10.9
0.70.5
0
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6
9
12
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our
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a
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Mich
ael K
ors
Glob
al B
rand
s
11.8
9
7.6
5.7
3.5 32.6
2 1.6 1.1*
Glo
bal R
etai
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(U
S$bn
)
Global Brands’ Position - Global Retail Sales
Kids Men’s and Women’s Fashion
* Global Brands: retail sales based on the assumption at 2x of Global Brands’ turnover in 2015 ** All other companies: data based on Euromonitor International 2015
§ Source: “License! Global” magazine Aug 2016 issue, based on FY 2015 numbers reported
Footwear and Accessories Brand Management
0
5
10
15
CAA-
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WME
/IMG
Bean
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uity
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LMCA
Glob
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ons
CPLG
Bran
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e Joe
ster
Loria
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ing
Grou
p
11.8
8.7
5.9 5.9 5.85.2
2.7 2.3 1.9 1.5
Glo
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etai
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(U
S$b)
0
2
4
6
8
VF
Mich
ael K
ors
Coac
h
Belle
Glob
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s
Nine
Wes
t
Bata
Stev
e Mad
den
Ecco
Geox
4.8
3.9 3.6
2.42.5*2 1.7 1.4 1.1
Glo
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etai
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(U
S$bn
)
7.7
Global Brands’ Position - Global Retail Sales
* Global Brands: retail sales based on the assumption at 2x of Global Brands’ turnover in 2015 ** All other companies: data based on Euromonitor International 2015
• Formed joint venture with iconic global pop star Katy Perry, expanding on the recent partnership on footwear collection
• The joint venture aims to grow the Katy Perry brand into new consumer categories
• Initial reviews of the footwear collection have been very positive from the market
• As the first category to launch, the footwear collection will be available in the US and internationally for spring 2017
New Partnership - Katy Perry
• Macro environment for FY 2016/17 expected to remain mixed
- After a soft start to the year, US shows signs of improvement
- Europe facing ongoing political and economic structural challenge, but stabilizing relative to the beginning of the year
- In Asia, including China, overall underlying trends (i.e. expanding middle class, rising disposable incomes) bode well for affordable luxury
• Retail and consumer industry is going through structural and cyclical changes
- Brands are evolving – from store presence/formats to products to sales channels to consumer experience
Macro/Industry Overview
• Despite the challenging environment, we remain committed to growth
- Increasing market share across all distribution channels, including department stores, hypermarkets, off-price retailers, independent chains, specialty retailers ande-commerce channels
- Expanding our footprint in Europe and Asia
- Expanding direct-to-consumer reach and investing in e-commerce
• Next reporting to be in November 2016 for the six months from April to September 2016, after changing our year end date
Outlook
Disclaimer
This document has been prepared by Global Brands Group Holding Limited (the “Company”) solely for selected recipients for information purposes only. These materials are given to you solely for your own use and information and no part of this document may be copied, reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organization/firm) or published, or otherwise disclosed, in whole or in part, in any manner and for any purpose without the prior consent of the Company. Any forwarding, distribution or reproduction of this document in whole or in part is unauthorized.
The information contained in this document has not been independently verified. No representation, warranty or undertaking, express or implied, is made by the Company or any of its affiliates, advisers or representatives as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions presented or contained herein. The information contained in this document should be considered in the context of the circumstances prevailing at the time, is subject to change without notice and the Company makes no undertaking to update the information in this document to reflect any developments that occur after the date of the presentation. It is not the Company’s intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the Company, or its financial or trading position or prospects. Neither the Company nor any of its affiliates, advisers or representatives accept any responsibility or have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document.
This document may contain statements that reflect the Company’s current intent, beliefs and expectations about the future as of the respective dates indicated herein. These forward-looking statements are not guarantees of future performance and are based on a number of assumptions about the Company’s operations and factors beyond the Company’s control and are subject to significant risks and uncertainties, and accordingly, actual results may differ materially from those described in these forward-looking statements. Neither the Company nor any of its affiliates, advisers or representatives has any obligation, nor do they undertake, to update these forward-looking statements for any events or developments including the occurrence of unanticipated events that occur subsequent to such dates.
This document does not constitute, in whole or in part, an offer for subscription or for sale or invitation to purchase or subscribe for any securities for sale in the United States, Hong Kong or anywhere else. No part of this document shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Specifically, and without limiting the foregoing, these materials do not constitute, nor are they intended to constitute (i) a “prospectus’ within the meaning of the U.S. Securities Act of 1933, as amended, and the regulations enacted thereunder, or (ii) a prospectus in connection with the offering for sale or subscription of shares pursuant to the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Chapter 32 of the Laws of Hong Kong) or the Companies Ordinance (Chapter 622 of the Laws of Hong Kong). No securities may be sold in the United States without registration with the United States Securities and Exchange Commission except pursuant to an exemption from, or in a transaction not subject to, such registration. The Company has not registered and does not intend to register any shares or conduct a public offering of securities in the United States, Hong Kong or anywhere else. The distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves of, and observe, any such restrictions.
CLSA Investors’ Forum 2016 September 19, 2016