Samsonite International S A : Announces 2016 Interim Results - Steady Constant Currency Net Sales Growth Reported Across All Regions

Financial Highlights

• Samsonite's net sales for the six months ended June 30, 2016 increased by 4.1% on a constant currency basis1 to a record US$1,209.5 million.

• Adjusted EBITDA2 increased by US$6.3 million, or 3.3%, on a constant currency basis from the comparable period in 2015. US Dollar reported Adjusted EBITDA increased by US$0.3 million, or 0.2%, to US$190.3 million.

• Adjusted basic and diluted earnings per share3 was flat with the comparable period in 2015 on a constant currency basis. US Dollar reported adjusted earnings per share decreased by 1.4% to US$0.071 for the six months ended June 30, 2016 from US$0.072 for the first half of 2015.

• Adjusted Net Income4 was approximately the same as the comparable period in 2015 on a constant currency basis. US Dollar reported Adjusted Net Income decreased by US$1.8 million, or 1.7%, to US$100.3 million. Excluding tax-effected foreign exchange losses, the Group's Adjusted Net Income, on a constant currency basis, increased by US$1.7 million, or 1.7%, and US Dollar reported Adjusted Net Income decreased by US$0.1 million, or 0.1%.

• Profit attributable to the equity holders decreased by US$10.4 million, or 11.0%, on a constant currency basis from the comparable period in 2015. US Dollar reported profit attributable to the equity holders decreased by US$12.0 million, or 12.7%, to US$82.4 million. Excluding tax-effected acquisition-related costs, interest expenses associated with the debt raised to finance the acquisition of Tumi and foreign exchange losses, the Group's profit attributable to equity holders, on a constant currency basis, decreased by US$2.2 million, or 2.3%, and US Dollar reported profit attributable to the equity holders decreased by US$4.0 million, or 4.1%.

• A cash distribution of US$93.0 million (or approximately US$0.0659 per share), representing an increase of 5.7% from 2015, was approved by the Company's shareholders on June 2, 2016 and paid on July 13, 2016.

• The Group generated US$81.1 million of cash from operating activities in the first half of 2016, providing the Group with a net cash position of US$164.4 million as of June 30, 2016.

  Operational Highlights

• All regions delivered positive constant currency growth:

  • Asia - 3.7%1 year-on-year net sales growth.

  • North America - 0.5%1 year-on-year net sales growth.

  • Europe - 8.6%1 year-on-year net sales growth.

  • Latin America - 13.6%1 year-on-year net sales growth.

    1 Results stated on a constant currency basis, a non-IFRS measure, are calculated by applying the average exchange rate of the comparable period in the prior year to current period local currency results.

    2 Adjusted EBITDA, a non-IFRS measure, eliminates the effect of a number of non-recurring costs, charges and credits and certain

    other non-cash charges, which the Group believes is useful in gaining a more complete understanding of its operational performance and of the underlying trends of its business.

    3 Adjusted basic and diluted earnings per share, non-IFRS measures, are calculated by dividing Adjusted Net Income by the weighted

    average number of shares outstanding during the period.

    4 Adjusted Net Income, a non-IFRS measure, eliminates the effect of a number of non-recurring costs, charges and credits and certain other non-cash charges that impact the Group's US Dollar reported profit for the period.

• Net sales of the Samsonite and American Tourister brands grew by 2.7%1 and 2.3%1, respectively.

• Most product categories achieved good year-on-year constant currency growth in net sales;

  • Travel - 4.0%1 increase in net sales to US$817.0 million.

  • Casual - 5.3%1 decrease in net sales to US$142.9 million.

  • Business - 5.5%1 increase in net sales to US$133.2 million.

  • Accessories - 23.6%1 increase in net sales to US$92.6 million.

• The Group delivered strong growth in its direct-to-consumer e-commerce business, with net sales up 15.6%1 year-on-year led by Asia (+35.5%1) and Europe (+23.3%1).

• On August 1, 2016, the Company completed the acquisition of Tumi Holdings, Inc., a leading global premium lifestyle brand offering a comprehensive line of business bags, travel luggage and accessories.

The Group continued to benefit from the steady growth in travel and tourism5 worldwide as net sales increased by 4.1%1 to US$1,209.5 million for the six months ended June 30, 2016. US Dollar reported net sales increased by 1.1%. On a constant currency basis, Adjusted EBITDA2 increased by 3.3% and Adjusted Net Income4 was about the same for the six months ended June 30, 2016 as compared to the previous year. Profit attributable to the equity holders decreased by 11.0% on a constant currency basis from the comparable period in 2015. Excluding tax-effected acquisition-related costs, interest expenses associated with the debt raised to finance the acquisition of Tumi and foreign exchange losses, the Group's profit attributable to equity holders, on a constant currency basis, decreased by US$2.2 million, or 2.3%, and US Dollar reported profit attributable to the equity holders decreased by US$4.0 million, or 4.1%.

The Group generated cash from operating activities of US$81.1 million for the six months ended June 30, 2016, compared to US$79.9 million in the first half of 2015, providing the Group with a net cash position of US$164.4 million.

On August 1, 2016, the Company completed the acquisition of Tumi, one of the world's leading global premium lifestyle brands offering a comprehensive collection of business, travel and lifestyle products and accessories. The acquisition provides Samsonite with an opportunity to expand its presence in the highly attractive premium segment of the global business bags, travel luggage and accessories market, and establish a strong multi-brand platform to drive long-term growth across a broad range of price points and product categories.

Commenting on the results, Mr. Tim Parker, Chairman, said, "The first-half results continue to reflect the headwinds we saw in the second half of last year and profits dipped slightly as a result. Despite the challenging trading conditions, our top line showed steady growth, which is a testament to the resilience of our business model. We continued to make good progress in growing our online and offline direct-to- consumer businesses, expanding our product portfolio and extending our coverage to the entry level price segment targeting value-conscious consumers. Signs have been encouraging, however headwinds remain for

5 According to the United Nations World Tourism Organization ("UNWTO") World Tourism Barometer, approximately 348 million tourists travelled worldwide during the first four months of 2016, with international tourist arrivals growing by 5.3% over the same period in the prior year. International tourist arrivals are predicted to increase by 3.5% to 4.5% in 2016, in line with the forecast of

+3.8% for the period 2010 to 2020.

us and our customers in many markets. The progress we are seeing underpins our confidence in navigating our business on a path of sustained growth over the long term."

Mr. Ramesh Tainwala, Chief Executive Officer, added, "Samsonite delivered a satisfying set of results for the first half of 2016 in an otherwise difficult trading environment. All of our operating regions delivered positive constant currency net sales growth, underscoring the resilience of our multi-brand, multi-category and multi-channel business model. Today's results reflect the headwinds facing many of our customers and our portfolio of brands and businesses. However, they also show areas of real strength as can be seen in the positive performance by many of our acquired brands. The closing of the Tumi acquisition on August 1 is truly a watershed moment. The addition of Tumi to our family of brands will be transformative for the business, and will create great opportunities. Looking ahead, the Group will continue to focus on implementing its multi-brand, multi-category and multi-channel strategy, as well as leveraging its decentralized management structure and investment in marketing in the second half of 2016."

Net Sales by Brand

Net sales of the Group's flagship brand, Samsonite, increased by 2.7%1 year-on-year to US$734.6 million, accounting for 60.8% of the Group's total net sales. That compared to 61.5% for the same period in 2015, reflecting the continued diversification of the Group's brand portfolio.

The American Tourister brand recorded net sales of US$259.3 million, an increase of 2.3%1 from the same period in 2015, with the growth largely driven by an increase in net sales in the European region from expanded product offerings and further penetration in existing markets, which were supported by the Group's targeted advertising activities.

On a constant currency basis, net sales of the Lipault brand nearly tripled for the six months ended June 30, 2016, driven by geographical expansion in Asia, increased sales in Europe and the direct-to-market strategy adopted in North America.

Net sales of the Hartmann brand increased by 46.4%1 for the six months ended June 30, 2016 compared to the first half of 2015, driven by increased traction of the brand in Asia and Europe as well as an 18.7%1 increase in North America. Net sales of the Gregory brand increased by 17.6%1 for the six months ended June 30, 2016, with Asia, North America and Europe all recording double-digit net sales growth. Net sales of the Speck brand decreased by 1.1%1 for the six months ended June 30, 2016 compared to the six months ended June 30, 2015, due to lower net sales of protective laptop cases, partially offset by robust growth in net sales of protective phone cases. Net sales in the High Sierra brand decreased by 2.7%1 for the six months ended June 30, 2016 compared to the six months ended June 30, 2015, largely due to the shifts in timing of certain sales programs in North America.

Mr. Tainwala said, "In line with management's expectations, our flagship brand, Samsonite, maintained its steady growth during the first half of 2016. Our Gregory, Hartmann and Lipault brands performed exceptionally well, all recording double-digit sales growth across Asia, Europe and North America. We continued to execute our strategy of deploying multiple brands to target different price points and product categories as well as adapting our brands and products to suit local market conditions. Moreover, the brands we have acquired are beginning to gain traction as we fine tune their product, marketing and channel strategies to expand and compete outside their home markets. We believe this diverse portfolio of brands and products will contribute significantly to the Group's future growth."

Net Sales by Region

The Group achieved positive constant currency sales growth across all of its regions in the first half of 2016.

Samsonite's net sales in Asia increased by 3.7%1 as compared to the previous year, reaching US$470.6 million for the six months ended June 30, 2016, despite sluggish performance by a number of markets within

6 Other includes certain other brands owned by the Group, such as Kamiliant, Saxoline and Xtrem, as well as third party brands sold through Rolling Luggage and Chic Accent retail stores.