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
3
▪ Global marketer of prestige perfumes and beauty productswith a portfolio of well-recognized fashion brands, bothlicensed 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
Global Marketer of Beauty Products
4
EUROPEAN OPERATIONS U.S. OPERATIONS
Net Sales($ in millions)
* Excludes Burberry brand sales
5
$433*
$499$469
$521
$591$665
$50
$150
$250
$350
$450
$550
$650
2013 2014 2015 2016 2017 2018 (EST)
Track Record of Performance
6
▪ More than 100 year old luxury brand, known for writing instruments, watches, leather goods, and jewelry
▪ Our largest brand with 2017 sales of $126.7 million
▪ 2017: Legend Night rollout
▪ 2019: New men’s blockbuster fragrance planned
7
▪ Best known for luxury shoes, handbags and accessories
▪ Our second largest brand with 2017 sales of $108.5 million
▪ License extended through 2031
▪ 2017:
> Jimmy Choo L’Eau
> Jimmy Choo Man Ice
▪ 2018:
> Spring: Jimmy Choo Fever
8
▪ French fashion house founded in 1889 known for luxury & elegance
▪ Third largest brand with 2017 sales of $65.1 million
▪ 2017: Modern Princess, a new women’s scent
▪ Winter 2018:> Éclat de Nuit> Modern Princess Eau
Sensuelle
▪ Luxury fashion house, established in 1925
▪ Acquired Rochas brand in May 2015
▪ 2017: Mademoiselle Rochas
▪ 2019: New men’s scent
9
▪ Leading New York design house of modern luxury
▪ 2016: Coach for Women
▪ 2017: Coach for Men
▪ 2018:> Winter: Coach Floral
Spring: Signature men’s scent extension
10
▪ More than 150 year old luxury brand, best known for jewelry
▪ 2017: La Collection Blanche, six luxury scents
▪ Winter 2018:> Additions to La
Collection Blanche> Quatre en Rose
11
▪ IPAR’s first fragrance license for a luxury jewelry brand
▪ 2017: Two additions to Collection Extraordinaire
▪ 2018: Continued expansion of Collection Extraordinaire
12
▪ Global luxury brand in the high end segment of men’s fashion
▪ 2017: Icon Racing
▪ Summer 2018: Century, a new men’s collection
13
▪ Iconic brand in both the world of fashion and fragrance
▪ Winter 2018: Bella Blanca, a new women’s scent
14
15
▪ Since 1892, Abercrombie & Fitch has stood for effortless American style, known for attention to detail with designs that embody simplicity and casual luxury
▪2017: First Instinct for women, following launch of men’s scent in 2016
▪2018:> Winter - First Instinct
Extreme and First Instinct Blue for men
> Summer - First Instinct Blue for women
16
▪ Hollister is the fantasy of Southern California. Inspired by beautiful beaches, open blue skies, and sunshine, Hollister lives the dream of an endless summer
▪ 2017: Wave 2, duo for men and women
▪ 2018:
> Winter - Free Wave, duo for men and women
> Spring - Festival Vibes, new pillar, duo for men and women
▪ Anna Sui fashion sold in 300 sales outlets in 30 countries, especially popular in Asia
▪ 2017:
> L’ Amour Rose Extension
> Fairy Dance Extension
> Fantasia, new fragrance family
▪ Summer 2018: Fantasia Mermaid
17
▪ Signed 15-year exclusive worldwide license with iconic fashion brand
▪ Continuing legacy fragrance business
▪ 2020: New scents to launch
18
19
▪ Signed exclusive worldwide license with renewal options running through 2035
▪ Known for the most exquisite, fabulous jewels ever produced
▪ 2019: Multi-scent collection to launch
Large and Attractive Industry
2012 – 2017 SALES CAGR
Fragrance Industry: 5.21%
IPAR Ongoing Brands: 10.9%
21
Fragrance Industry: World market size approx. $49.5 billion*
2017 Global Fragrance IndustrySales by Geography
* Source: Euromonitor, Citi Research, and IPAR
EUROPE40%
ASIAPACIFIC
23%
AMERICAS37%
Preferred Partner
▪ Our size enables us to work closely with brand owners in the product development process
▪ Creative product development that captures the essence of a brand
▪ Over 30 years of knowledge and experience with a proven track record of product launches
▪ Global distribution
▪ Financial strength to support global product launches and advertising campaigns
22
Demonstrated Success
23
83
11098
122 127
2013 2014 2015 2016 2017
Fragrance Sales(in millions of $)
7279
92 90
108
2013 2014 2015 2016 2017
2017 SALES BY REGION
24
▪ Our products are distributed in over 100 countries through department stores perfumeries and travel retail
▪ Company-owned distribution in United States, France, Italy and Spain
INTER PARFUMS, INC.
ASIA PACIFIC
24%
AMERICAS39%
EUROPE37%
Multi-Pronged Growth
25
2018 LAUNCHES
Abercrombie & Fitch (W&M)
Anna Sui (W)
Boucheron (W)
Coach (W&M)
Dunhill (M)
Hollister (W&M)
Jimmy Choo (W)
Lanvin (W)
Oscar de la Renta (W)
Repetto (W)
Van Cleef & Arpels (W)
Multi-Pronged Growth Extend into New Categories
26
▪ Lanvin: supplying Sofitel, the five star hotel chain with more than 120 properties
▪ Oscar de la Renta: supplying PeninsulaHotels, 10 properties
TRAVEL AMENITIES
Multi-Pronged Growth Acquisitions & New Licenses
27
2019
2008: bebe
2009:Jimmy Choo
1997: S.T. Dupont
1998: Paul Smith
2011:Anna Sui
2011:Repetto
2013:Agent Provocateur
2012:Karl Lagerfeld
2012:Dunhill
2010: Boucheron
2010:Montblanc
2014:Hollister
2014:Abercrombie & Fitch
2015:Rochas
2015:Coach2007:
Van Cleef & Arpels
2004: Lanvin
2013:Oscar de la Renta
2018:GUESS
2018:Graff
First Quarter Ended March 31,
28
($ in millions, except per share data) 2018 2017 Change
Net Sales $171.8 $143.1 20.1%
Gross Profit $105.6 $90.1 17.3%
Gross Margin 61.5% 63.0% -150 bps
Operating Income $30.4 $26.2 16.2%
Operating Margin 17.7% 18.3% -60 bps
EBITDA $33.0 $28.8 14.7%
EBITDA Margin 19.2% 20.1% -90 bps
Net Income (IP) $15.9 $13.4 19.0%
Net Income Margin (IP) 9.3% 9.3% unch
Diluted EPS (IP) $0.51 $0.43 18.6%
Strong Balance Sheet
▪ Working Capital: $401 million
▪ Cash, Cash Equivalents and Short-Term Investments: $251 million
▪ Working Capital Ratio: nearly 3.4 to 1
▪ Long-Term Debt: $56.0 million, including current maturities
▪ Annual Dividend: $0.84 per share, Yield 1.8%
▪ Low Capex: $4 million
▪ As of 03/31/18
29
Outlook
▪ Generate 10+% internal revenue growth
▪ EPS growth of 12%-15%
▪ Future acquisitions, if any, will be additive
Long-Term Targets
30
All guidance assumes $ remains at current levels
Guidance 2018
▪ Net sales $665 million
▪ Diluted EPS $1.59
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
31