BUSINESS REVIEW. 14 th Annual ICR XChange Investor Conference

Transcription

1 BUSINESS REVIEW 14 th Annual ICR XChange Investor Conference 1

2 SAFE HARBOR LANGUAGE This presentation includes forward-looking statements. Quiksilver, Inc. ( Quiksilver or the Company ) cautions that these statements are qualified by important factors that could cause actual results to differ materially from those presented in the forward-looking statements. These statements are based on Quiksilver s current plans and expectations and involve risks and uncertainties that could cause future activities and results of operations to be materially different from those set forth in the forward-looking statements. The Company cautions that any forward-looking statements included in this presentation are made as of the date of this presentation, and the Company does not undertake to update any forward-looking statements. This presentation also includes certain non-gaap financial measures including Pro Forma Adjusted EBITDA. The reconciliation of such non-gaap financial measures to the nearest GAAP equivalent can be found in the Company s earnings press releases which are filed with the Securities and Exchange Commission (SEC) and can also be found on the company s web site at 2

3 TODAY S SPEAKER Bob McKnight Chairman President Chief Executive Officer 3

4 GAME ON! FY08-FY10: Restructured the business & balance sheet, restored the company's financial & brand strength FY11: Solid year, #1 global market share FY12-FY16: Dynamic 5-year plan to substantially grow revenues and double profits We are growing, despite a lackluster global economy, through: Focus on Quiksilver, Roxy & DC Brand & product line extensions Aggressive channel management & expansion Emerging & developing markets Strong action sports market is fueling competitive challenges from Nike, VF Corporation, PPR, Abercrombie & Fitch, Billabong, and others Our innovative products and our family of winning athletes help propel our brands to the strong competitive stance we continue to enjoy 4

5 INVESTMENT HIGHLIGHTS Three iconic, industry-leading, global action sports brands Diversified worldwide operations, product offering and distribution channels Compelling growth plan: New categories and product lines Renewed channel management and expansion Geographic growth in existing and emerging markets E-commerce opportunities Expense leverage and EBITDA expansion opportunities Strong cash flow generation with no near-term debt maturities and ample financial flexibility 5

6 WHO WE ARE Business FY11 Revenue Mix by Brand Leading gportfolio of global, iconic, authentic Other brands deeply rooted in action sports Represents action sports lifestyle for young-minded people that connect with our boardriding culture Approximately 6,600 employees worldwide and global headquarters in Huntington Beach, CA Roxy DC 27% 28% 4% 41% Quiksilver $1.95B Enterprise value $1.3B Strong LTM (FY11) operating performance: Total Revenue: $1.95B EBITDA: $200MM Multi-channel distribution model Wholesale Retail (547 owned and 223 licensed stores) E-Commerce FY11 Revenue Mix by Region Asia / Pacific 14% Europe 39% 47% Americas 6

7 RICH BUSINESS HERITAGE Consolidated Revenue $MM 3, ,000 2,000 1, ,263 1,562 1,722 2,047 2,265 1,978 1,838 1,953 0 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY16 6E s Founded Quiksilver brand Bob McKnight started Quiksilver USA Recession hits; Company diversifies by launching Roxy and opening its first retail store Acquired Quiksilver Europe Acquired international trademarks Acquired Quiksilver Asia / Pacific Acquired DC Shoes Acquired Rossignol Divested Rossignol Global financial restructuring Shifted focus from growth to operational efficiency #1 in global market share and on-track to deliver $200MM in global EBITDA Plan to increase annual revenues by at least $1.0B and expand EBITDA by $200MM 7

8 OUR BRANDS 8

9 OUR 3 LEADERSHIP BRANDS WE INVENTED THE ACTION SPORTS LIFESTYLE FOR GUYS AND GIRLS THE BENCHMARK GLOBAL BRAND FOR ALL THINGS SURF SKATE & SNOW SURF, THE #1 GIRLS OUTDOOR SPORTS LIFESTYLE BRAND WORLDWIDE THE BENCHMARK GLOBAL BRAND FOR ALL THINGS SKATE, SNOW AND MOTO CORE MARKET: GUYS & GIRLS CORE MARKET: GIRLS 8-18 CORE MARKET: GUYS & GIRLS

10 WHEN IT COMES TO ACTION SPORTS, WE DOMINATE THE GAME SURF SKATE PADDLE MOTO SNOW BMX 10

11 Creative, confident, always a progressing, restless for adventure, not afraid to have fun 11

12 VISION BE THE MOST SOUGHT AFTER SURF-INSPIRED BRAND THAT CAPTIVATES THE ENTIRE YOUTH MARKET THROUGH GREAT PRODUCT, REAL AMBASSADORS, EVENTS AND CONTENT MISSION AWAKEN THE SPIRIT OF SURFING THAT LIVES IN EVERYONE BY INSPIRING FREEDOM, EXPRESSION, JOURNEY AND INDIVIDUALITY 12

13 Fun & Alive Daring & Confident Naturally Beautiful 13

14 VISION TO BE THE MOST INSPIRING GIRLS FASHION AND PERFORMANCE BRAND ON AND OFF THE WATER MISSION WE BRING INSPIRATION TO GIRLS TO DREAM BIG AND HAVE FUN IN AND OUT OF THE WATER 14

15 Independent, unconventional and driven to individual expression 15

16 VISION WE WILL BE THE MOST SOUGHT AFTER SKATE DRIVEN ACTION SPORTS BRAND MISSION OUR MISSION IS TO ENABLE AND INCITE OUR COMMUNITIES TO CHALLENGE CONVENTION, PUSH THEIR LIMITS, MAKE THEIR OWN WAY 16

17 OUR OTHER BRANDS BENCHMARK BRAND IN SNOWBOARDING DIRECT-TO-RETAIL DIRECT TO RETAIL LICENSE WITH KOHL S EXEMPLARY OF OTHER GROWTH OPPORTUNITIES 17

18 FIVE GAME CHANGING OPPORTUNITIES 1. GEOGRAPHIC EXPANSION 2. DC 4. MOUNTAIN, OUTDOOR SPORT AND FITNESS 3. FEMALE 5. E-COMMERCE 18

19 ORGANIZATIONAL STRUCTURE Board of Directors Bob McKnight President, Chairman & CEO Quiksilver, Inc. Carol Scherman EVP Global Human Resources Charlie Exon Director & EVP General Counsel & Secretary Joe Scirocco CFO Quiksilver, Inc. Craig Stevenson Global Brand President & COO Rob Colby President Americas Pierre Agnes President Europe Greg Healy President Asia Pacific Carol Scherman Americas Stephen LeBot Europe Michael Fuller APAC Sean Pence Americas Emmanuelle Meda Europe David Nock APAC Brad Holman Americas Pierre Boccon- Liaudet Europe Andrew Bruenjes APAC 19

20 OPERATIONAL OPPORTUNITIES DESIGN AND INNOVATE WITH SPEED AND EFFICIENCY C Transform the way we operate Improve business process efficiency Improve time-to-market Leverage fixed costs Become a metrics-driven organization Implement SAP ERP as the global foundation by Q Increase the proportion of global product in our lines Expand gross margin through larger buys Streamline merchandising and design Increase the efficiency of our global sourcing organization 20

21 5-YEAR PLAN HIGHLIGHTS 21

22 CONSOLIDATED REVENUE ($MM) 3,000 3,000 2,500 2,265 2,000 1,562 1,722 2,047 1,978 1,838 1,953 1, ,263 1, FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY16E 22

23 PRO FORMA ADJUSTED EBITDA ($MM) FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY16E EBITDA Margin (%) 13% 11% 12% 13% 12% 12% 13% 13% 12% 8% 12% 10% 13% 23

24 INVESTMENT HIGHLIGHTS Three iconic, industry-leading, global action sports brands Diversified worldwide operations, product offering and distribution channels Compelling growth plan: New categories and product lines Renewed channel management and expansion Geographic growth in existing and emerging markets E-commerce opportunities Expense leverage and EBITDA expansion opportunities Strong cash flow generation with no near-term debt maturities and ample financial flexibility 24

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