moleskine-ipo-report-04-03-2013-mediobanca

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Moleskine Valuation criteria We have identified two criteria to provide a fair valuation of Moleskine: a sector comparison, in which we identify a panel of comparable companies that target a similar reference market or have business similarities with Moleskine, as detailed below; a discounted cash flow model, which we would use only to cross-check the sector multiples valuation, but do not consider a fully reliable criterion. We therefore suggest due caution when looking at it, given Moleskine’s growth profile and therefore the difficulty in assessing when its cash flows will start to stabilize. Sector comparison Moleskine’s unique market positioning, with the brand expressing a set of intangible values combining identity and culture, its product profile (premium and high-end products) and business model make it very hard to identify a clear panel of comparable companies with the same features and future prospects. For this reason, we have identified two categories of possible comparable companies: a) Premium & branded goods companies with an iconic core product and brand extension opportunities This group includes premium and branded goods companies, whose past and current appeal to consumers is strictly linked to the success of one or few iconic products, which from being the brand’s historical flagship, have now become a benchmark within their market segment. The cultural significance behind owning this product, the sense of being part of a community sharing common values, together with the product’s intrinsic value, justifies its premium positioning. This helps these groups to keep the business risk under better control and make the overall business resilient in a sector where tastes and fashion trends usually generate some volatility. Moreover, for brands whose awareness among consumers is very high for the core product, there are opportunities to extend the brand to other product categories, which is likely to become an additional source of top-line growth when the flagship product reaches a maturity phase in its growth path. For these reasons, we include in our panel of companies comparable to Moleskine Tod’s, Ferragamo, Burberry, Tumi, Brunello Cucinelli and Prada. MOLESKINE: comparable branded goods companies BRAND core product brand extension BRUNELLO CUCINELLI CASHMERE KNITWEAR ACCESSORIES BURBERRY TRENCH COAT APPAREL, LEATHER GOODS, ACCESSORIES PRADA HANDBAGS APPAREL, LEATHER GOODS, ACCESSORIES FERRAGAMO WOMENS’ SHOES APPAREL, LEATHER GOODS, ACCESSORIES TOD'S MEN’ SHOES LEATHER GOODS, ACCESSORIES TUMI LUGGUAGES ACCESSORIES MOLESKINE NOTEBOOKS WRITING, TRAVEL AND READING ITEMS Source: Mediobanca Securities THIS DOCUMENT MAY NOT BE DISTRIBUTED IN THE UNITED STATES, CANADA OR JAPAN. IPO 04 March 2013 ◆ 8
Moleskine MOLESKINE: Iconic products within branded goods SALVATORE FERRAGAMO ―BALLERINE‖ SHOES Source: Mediobanca Securities BURBERRY TRENCH COAT PRADA HANDBAGS ICONIC PRODUCTS MOLESKINE NOTEBOOKS BRUNELLO CUCINELLI CASHMERE KNITWEAR TOD’S DRIVING SHOES TUMI LUGGAGE MOLESKINE: peers business breakdown by product (core/non core) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Source: Companies data 7% 93% 12% 88% THIS DOCUMENT MAY NOT BE DISTRIBUTED IN THE UNITED STATES, CANADA OR JAPAN. 26% 74% 37% 39% 63% 61% MOLESKINE CUCINELLI TOD'S PRADA BURBERRY TUMI FERRAGAMO CORE NON CORE 49% 51% 56% 44% IPO 04 March 2013 ◆ 9
Page 1 and 2: Moleskine 04 March 2013 Branded Goo
Page 3 and 4: Moleskine Contents Disclaimer 2 Con
Page 5 and 6: Moleskine Executive summary A high-
Page 7: Moleskine IPO structure and rationa
Page 11 and 12: Moleskine MOLESKINE: peers’ funda
Page 13 and 14: Moleskine MOLESKINE: sector’s pee
Page 15 and 16: Moleskine Company at a glance Moles
Page 17 and 18: Moleskine With 3.3 million customer
Page 19 and 20: Moleskine MOLESKINE: Sales breakdow
Page 21 and 22: Moleskine MOLESKINE: Business model
Page 23 and 24: Moleskine MOLESKINE: display format
Page 25 and 26: Moleskine e) Outsourced manufacturi
Page 27 and 28: Moleskine Moleskine has direct rela
Page 29 and 30: Moleskine MOLESKINE: 2012 B2C sales
Page 31 and 32: Moleskine In Italy the DOS expansio
Page 33 and 34: Moleskine Strategy We consider the
Page 35 and 36: Moleskine In 2013 new product launc
Page 37 and 38: Moleskine E-commerce & digital str
Page 39 and 40: Moleskine Financials 2009-12 financ
Page 41 and 42: Moleskine MOLESKINE: group sales br
Page 43 and 44: Moleskine MOLESKINE: Revenue season
Page 45 and 46: Moleskine MOLESKINE: Gross margin o
Page 47 and 48: Moleskine MOLESKINE: Group profitab
Page 49 and 50: Moleskine Looking at the 2012 figur
Page 51 and 52: Moleskine c) Capital expenditures M
Page 53 and 54: Moleskine MOLESKINE: B2B revenues (
Page 55 and 56: Moleskine MOLESKINE: 2012-15E reven
Page 57 and 58: Moleskine Profitability trend Over
Page 59 and 60:
Moleskine MOLESKINE: revenues, net
Page 61 and 62:
Moleskine Appendix MOLESKINE: Group
Page 63 and 64:
Moleskine 4) Management compensatio
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