Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [7]. Core Views - The company reported a revenue of $3.682 billion for the fiscal year 2023, representing a year-on-year growth of 27.9% (30% excluding currency effects) [2]. - The net profit attributable to shareholders reached $417 million, a year-on-year increase of 33.3% (34.6% excluding currency effects) [2]. - The company anticipates a revenue growth of 10%-12% for 2024, with continued store expansion [2]. Financial Performance - The company achieved a revenue of $948 million in Q4 2023, marking a 15.8% year-on-year increase, and a net profit of $301 million, up 18.5% year-on-year [2]. - The Asia-Pacific region showed strong recovery, with revenue growth of 61.7%, driven by a resurgence in travel demand in China, which saw an 88.4% increase in revenue [2]. - The company opened a net of 67 new stores, bringing the total to 1,052, with Asia being the primary driver of this expansion [2]. Profitability Metrics - The gross margin improved to 59.3%, up 3.5 percentage points from the previous year, benefiting from higher margins in Asia and the TUMI brand [2]. - EBITDA margin also improved, reaching 19.3%, an increase of 2.9 percentage points year-on-year [2]. - The company generated $285 million in free cash flow, a 240.6% increase, and reduced its debt ratio from 2.85 times to 1.53 times [2]. Future Outlook - The company expects to maintain a gross margin above 60% in 2024 and plans to open approximately 60-70 new stores [2]. - Profit forecasts for the next three years are projected at $470 million, $530 million, and $602 million for 2024, 2025, and 2026, respectively [5].

Financial Performance - For the fiscal year ending December 31, 2023, the company reported a net sales of $3,682.4 million, representing a 27.9% increase compared to $2,879.6 million in 2022[15]. - Gross profit for the same period was $2,182.8 million, up 36.0% from $1,605.4 million in the previous year, with a gross margin of 59.3%[15]. - Operating profit increased by 51.1% to $743.7 million from $492.1 million in 2022, with total expenses rising by 56.5% to $659.1 million[15]. - The net profit for the year was $450.3 million, a 33.1% increase from $338.3 million in 2022, with profit attributable to equity holders rising by 33.3% to $417.0 million[15]. - Adjusted net income was $392.4 million, reflecting a 32.5% increase from $296.0 million in the previous year[15]. - Adjusted EBITDA for the year was $709.3 million, a 50.2% increase compared to $472.3 million in 2022, with an adjusted EBITDA margin of 19.3%[15]. - Basic earnings per share increased by 32.7% to $0.289 from $0.218 in the previous year, while diluted earnings per share rose by 32.1% to $0.287[15]. - The company reported consolidated net sales of $3,682.4 million for the year ending December 31, 2023, representing a year-over-year growth of 30.4%[23]. - The company reported a total comprehensive income of $429.1 million for the year, compared to $367.7 million in 2022, marking a 17% increase[63]. Market and Sales Growth - Sales in China increased by 88.4% year-over-year, significantly contributing to a 61.7% rise in net sales across Asia[23]. - The company continues to explore market opportunities and strategies for expansion, although specific future outlooks were not detailed in the provided content[6]. - The company anticipates steady growth in the global travel and tourism industry in 2024, driven by recovering consumer demand[28]. - The company plans to allocate approximately 7.0% of net sales to marketing expenses in 2024 to support new product lines[29]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[60]. - The company is currently evaluating the potential impact of the IAS 21 amendment on its consolidated financial statements, effective from January 1, 2025[138]. Cash Flow and Debt Management - Free cash flow for the year ended December 31, 2023, was $284.5 million, an increase of $201.0 million or 240.6% from $83.5 million in the previous year[19]. - As of December 31, 2023, the cash and cash equivalents were $716.6 million, with total financial debt of $1,824.0 million, resulting in net debt of $1,107.4 million[19]. - Net debt decreased from $1.4 billion at the end of 2022 to $1.1 billion by December 31, 2023, resulting in a net leverage ratio improvement to 1.53 times[27]. - The total liquidity amounted to $1,562.0 million, including cash and cash equivalents of $716.6 million and available borrowings of $845.4 million[11]. - The company issued new preferred credit facilities amounting to $1.5 billion, while settling past preferred credit facilities resulted in a cash outflow of $1.6 billion[70]. - The company has secured a new revolving credit facility with no outstanding amounts as of December 31, 2023[198]. Marketing and Investment - The marketing expenses increased by $85.5 million or 54.8% to $241.5 million for the year ended December 31, 2023, representing 6.6% of net sales[19]. - Capital expenditures increased to $110.1 million in 2023 from $62.8 million in 2022, aimed at expanding retail operations and investing in new product innovations[41]. - The company plans to increase marketing investment to approximately 7.0% of net sales in 2024 to support further growth[44]. Sustainability and Corporate Responsibility - The proportion of products made from recycled materials in net sales increased from approximately 23% in 2022 to about 34% in 2023[43]. - The company aims to continue increasing sales and profitability while striving to become the most sustainable fashion luggage and suitcase company globally[45]. Operational Efficiency - The company will continue to strictly limit promotional discounts to maintain improved gross margins[45]. - The focus will be on cash management to generate strong free cash flow, enhancing flexibility in capital allocation[45]. - The company will manage fixed SG&A expenses to achieve operational leverage and sustained profit growth[45]. Accounting and Financial Reporting - The company is committed to maintaining strong internal controls and governance to ensure the accuracy of its financial reporting[54]. - The group has consistently applied the significant accounting policy information as presented in the consolidated financial statements for all periods[85]. - The group recognizes financial assets and liabilities at the initial date of their occurrence[113]. - The group assesses uncertain tax treatments and recognizes tax reserves based on expected value and the most likely amount[128]. Future Outlook - The company anticipates strong growth in the global travel industry in 2024, with international tourism expected to fully recover to pre-pandemic levels[44]. - Management has expressed confidence in the company's ongoing viability and growth potential despite market challenges[60].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表 示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 SAMSONITE INTERNATIONAL S.A. 13-15 avenue de la Liberté, L-1931 Luxembourg R.C.S. LUXEMBOURG: B 159.469 （於盧森堡註冊成立之有限公司） （股份代號：1910） 截至 2023 年 9 月 30 日止期間之季度報告 新秀麗國際有限公司（「本公司」，連同其綜合附屬公司統稱為「本集團」）董事會欣然呈列本集團於 2023年 9 月 30 日以及截至該日止三個月及九個月期間之未經審計綜合財務及業務回顧，連同截至 2022年 9月 30日止三個月及九個月 期間之比較數字。本公告是根據《證券及期貨條例》第 XIVA 部內幕消息條文及《香港聯合交易所有限公司證券上市規 則》第13.09(2)(a)條作出。 財務業績概要及財務摘要 財務業績概要 於本公告內，截至 2023年9月30日止三個月及九個月的若干財務業績與截至 ...

Financial Performance - Samsonite achieved consolidated net sales of US$1,776.2 million for the first half of 2023, an increase of 45.7% compared to 2022 and 16.2% compared to 2019[3]. - For the six months ended June 30, 2023, consolidated net sales increased to $1,776.2 million, a 39.8% increase compared to $1,270.2 million in the same period of 2022[56]. - Gross profit for the same period was $1,043.6 million, reflecting a 47.5% increase from $707.4 million in 2022[56]. - Operating profit rose significantly by 95.3% to $312.1 million, up from $159.9 million in the prior year[56]. - Profit for the period increased by 150.7% to $171.4 million, compared to $68.5 million in the previous year[56]. - Adjusted EBITDA for the six months ended June 30, 2023, was $334.3 million, a 70.9% increase from $195.6 million in 2022[56]. - Adjusted Net Income increased by 104.9% to $170.9 million, compared to $83.3 million in the same period of 2022[56]. - Basic earnings per share rose to $0.106, a 170.4% increase from $0.039 in the prior year[56]. - The Group's total liquidity as of June 30, 2023, is US$1,344.3 million, consisting of US$599.0 million in cash and cash equivalents and US$745.4 million available under the revolving credit facility[24]. - The total net leverage ratio is below pre-pandemic levels, calculated by dividing total consolidated net debt minus unrestricted cash by consolidated Adjusted EBITDA for the trailing four fiscal quarters[25]. Market Recovery and Growth Prospects - The group expects a quick recovery in its business in China, with outbound travel from China anticipated to accelerate in the coming months[21]. - The group anticipates an acceleration in the recovery of international travel globally as long-haul flight capacity continues to increase[21]. - Business in China and Asia is rapidly recovering, with expectations for accelerated growth in outbound tourism from China in the coming months[27]. - The strong growth in travel during the summer of 2023 is expected to drive continued demand and business growth[91]. - The recovery in outbound travel from China is expected to accelerate, driving further net sales growth in Asia, Europe, and North America[138]. - The summer travel season in the Northern Hemisphere is expected to be strong due to pent-up demand in North America and Europe, and the reopening of China and other major Asian markets[141]. Marketing and Sales Strategy - The company aims to increase the proportion of net sales from its direct-to-consumer e-commerce channel[21]. - Samsonite plans to invest in marketing with a target advertising spend close to 6.5% of its consolidated net sales for 2023[21]. - The Group plans to increase marketing investments in 2023, targeting advertising expenses to account for approximately 6.5% of total net sales to capitalize on the recovery of the travel industry[27]. - The company plans to increase marketing spend to approximately 6.5% of net sales in 2023, up from 5.4% in 2022, to support ongoing recovery in travel[109]. - The Group's marketing expenses as a percentage of net sales increased by 190 basis points from 4.5% to 6.4% for the six months ended June 30, 2023[61]. Product Development and Innovation - The company is focused on developing lighter and stronger new materials and innovative functionalities through continued investment in research and development[21]. - Continued investment in research and development is planned to create lighter, more durable materials and innovative features for consumers[27]. - The company plans to invest in product innovation, sustainability initiatives, and enhancements to its global retail store network to capitalize on ongoing travel recovery and drive net sales growth[140]. Sustainability Commitment - The company emphasizes its commitment to sustainability through its "Our Responsible Journey" initiatives, integrating environmental, social, and governance (ESG) practices into its core business[21]. - The commitment to sustainability and innovation, along with a diverse geographic footprint and complementary brands, is expected to strengthen Samsonite's market position and drive sustainable long-term growth[140]. - A new sustainability materiality assessment will be conducted starting in Q3 2023, involving key stakeholders to inform new targets and initiatives on product sustainability and other material topics[142]. - The implementation of a new sustainability software system aims to strengthen systems and processes, with a goal of achieving third-party limited assurance[142]. - The company is onboarding and growing internal ESG resources to support its sustainability efforts[142]. Operational Efficiency - The Group will maintain disciplined expense management on fixed selling, general, and administrative expenses while making selective investments in core strategic functions[27]. - Fixed SG&A expenses as a percentage of net sales were 23.0% for the first half of 2023, down from 26.2% in the first half of 2022[74]. - The company will focus on managing discounting and promotional activities, as well as non-marketing SG&A expenses, to drive positive operating leverage and improve net sales margins[140]. Brand Performance - The Tumi brand's net sales increased by 51.7% year-on-year, raising its share of total net sales to 23.7% in the first half of 2023[115]. - All core brands showed strong growth, with Samsonite's net sales up by 47.1% and American Tourister's by 42.5% compared to the same period in 2022[115]. - The Samsonite brand recorded net sales of US$880.3 million, up 42.0% year-on-year, while Tumi's net sales increased by 48.5% to US$421.1 million[177]. Distribution Channels - The Group's net sales by distribution channel showed a strong performance, with direct-to-consumer sales contributing significantly to overall growth[195]. - Direct-to-consumer (DTC) sales rose to US$669.0 million, reflecting a 46.4% increase from US$456.9 million in the prior year[196]. - The DTC segment accounted for 37.7% of total net sales in the first half of 2023, up from 36.0% in the first half of 2022[196]. - The wholesale channel represented 62.3% of total net sales, while DTC accounted for 37.7% in the first half of 2023[196]. - The company continues to focus on expanding its distribution channels and enhancing its e-commerce capabilities[198].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲 明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 SAMSONITE INTERNATIONAL S.A. 13-15 avenue de la Liberté, L-1931 Luxembourg R.C.S. LUXEMBOURG: B 159.469 （於盧森堡註冊成立之有限公司） （股份代號：1910） 截至 2023年 6月 30日止六個月 中期業績公告 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表 示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 SAMSONITE INTERNATIONAL S.A. 13-15 avenue de la Liberté, L-1931 Luxembourg R.C.S. LUXEMBOURG: B 159.469 （於盧森堡註冊成立之有限公司） （股份代號：1910） 截至 2023 年 3 月 31 日止期間季度報告 新秀麗國際有限公司（「本公司」，連同其綜合附屬公司統稱為「本集團」）董事會欣然呈列本集團於 2023年 3 月 31 日以及截至該日止三個月期間之未經審計綜合財務及業務回顧連同截至 2022年 3月 31日止三個月期間之比較數字。本 公告是根據《證券及期貨條例》第 XIVA 部內幕消息條文及《香港聯合交易所有限公司證券上市規則》第 13.09(2)(a)條 作出。 財務業績概要及財務摘要 財務業績概要 於 2023 年第一季度，本集團業務的復甦步伐持續加速，綜合銷售淨額及經調整 EBITDA 利 ...

Financial Performance - Samsonite achieved strong results for the year ended December 31, 2022, benefiting from a recovery in travel across most global markets[1]. - For the year ended December 31, 2022, net sales increased to $2,879.6 million, a 42.5% increase compared to $2,020.8 million in 2021[39]. - Operating profit for 2022 was $492.1 million, representing a 271.1% increase from $132.7 million in 2021[39]. - Profit for the year attributable to equity holders surged to $312.7 million, a 250.6% increase from $120.1 million in 2021[39]. - Adjusted EBITDA for 2022 reached $472.3 million, with an adjusted EBITDA margin of 16.4%, compared to $182.3 million and 9.0% in 2021[39]. - The Group's consolidated net sales at the end of 2022 have largely recovered to 2019 levels, positioning the company for further growth in net sales at a fundamentally higher operating margin as travel rebounds[12]. - The Group's operating profit improved to US$492.1 million for the year ended December 31, 2022, compared to US$132.7 million in the previous year, representing a 271.1% increase[42]. - Profit for the year ended December 31, 2022, was US$338.3 million, a significant improvement of 1,345.0% from US$23.5 million in 2021[43]. - Adjusted net income rose to $296.0 million in 2022, up $278.7 million from $17.4 million in 2021[64]. Market and Sales Growth - The Group's strategy includes expanding its brand into new markets and deepening penetration in existing channels[10]. - The overall demand for the Group's products experienced a strong recovery in most countries due to the loosening of travel restrictions[29]. - Total net sales grew by 52.3% year-on-year to $2,879.6 million for the year ended December 31, 2022, with all regions showing strong growth: +44.6% in North America, +103.6% in Europe, and +72.5% in Latin America[63]. - Net sales in Asia increased by 43.9% year-on-year during 2022, with a notable increase of 68.5% when excluding China[63]. - The core travel brands, Samsonite, Tumi, and American Tourister, saw year-on-year net sales increases of 67.7%, 34.6%, and 63.4%, respectively[104][106]. - The Group anticipates a strong recovery in net sales in Asia, Europe, and North America as travel restrictions ease and consumer enthusiasm for travel rebounds[96]. Marketing and Investment - Investment in marketing will be increased to support the company's brands and initiatives[7]. - The Group plans to increase marketing investments in 2023 to capitalize on the continued recovery in travel and drive net sales growth[13]. - Marketing expenses increased by 89.5% to US$156.0 million for the year ended December 31, 2022, representing 5.4% of net sales[41]. - The company intends to raise investment in marketing in 2023 to support new product launches and drive net sales growth while controlling non-marketing SG&A expenses[118]. - The company plans to increase capital expenditures in 2023 for key strategic initiatives, particularly for retail store refits postponed during the COVID-19 pandemic[117]. Sustainability and Innovation - The company is committed to incorporating its environmental, social, and governance (ESG) philosophy into core business practices through "Our Responsible Journey" initiative[9]. - Continued investment in research and development will focus on lighter and stronger materials, advanced manufacturing processes, and sustainable collections[8]. - More than 23% of net sales in 2022 came from products containing recycled materials, up from an estimated 17% in 2021 and 5% in 2019[119]. - The company will continue to integrate sustainability into its overall business strategy in 2023[120]. - The company emphasizes treating all stakeholders with fairness and respect as a guiding principle for future growth[121]. Liquidity and Financial Health - The Group maintains a strong liquidity position with US$1.5 billion as of December 31, 2022, which supports business growth during the ongoing recovery[14]. - As of December 31, 2022, the Group had cash and cash equivalents of US$635.9 million and outstanding financial debt of US$2,019.6 million, resulting in a net debt position of US$1,383.7 million[6]. - The Group's total liquidity as of December 31, 2022, was US$1,481.3 million, which includes cash and cash equivalents of US$635.9 million and US$845.4 million available to be borrowed on the revolving credit facility[7]. - The Group's net debt position decreased from US$1,477.2 million as of December 31, 2021, to US$1,383.7 million as of December 31, 2022, indicating improved financial health[81]. Operational Challenges - The recovery in 2022 was negatively impacted by the Chinese government's zero-COVID policy, which slowed net sales recovery in China during the second half of the year[31]. - The company suspended all commercial activities in Russia on March 14, 2022, due to the armed conflict in Ukraine, and completed the disposition of its Russian operations on July 1, 2022[30]. - The Group's operations in China faced challenges due to tightened travel restrictions and social distancing measures during the second, third, and fourth quarters of 2022, affecting net sales recovery[80].

[Important Notice](index=1&type=section&id=Important%20Notice) [Disclaimer](index=1&type=section&id=Disclaimer) Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited are not responsible for the announcement's content, accuracy, or completeness, and disclaim liability for any losses - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited are not responsible for the content of this announcement, make no statement as to its accuracy or completeness, and accept no liability for any loss arising from or in reliance upon the whole or any part of the contents of this announcement[1](index=1&type=chunk) - The company presents non-IFRS financial measures in "Financial Performance Summary and Financial Highlights", "Chairman's Report", "CEO's Report", and "Management Discussion and Analysis", which management believes provide more information for analysts, investors, and other stakeholders to better understand the group's operating performance and business trends[4](index=4&type=chunk) - Non-IFRS financial measures have limitations as analytical tools and should not be considered in isolation from, or as a substitute for, analysis of the group's financial results as reported under IFRS[4](index=4&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This document contains forward-looking statements reflecting current views on future events and performance, including net sales, profitability, and growth strategies, which are subject to various risks and uncertainties - This document contains forward-looking statements that reflect the company's current views with respect to future events and performance, which may discuss net sales, gross margin, operating profit, adjusted net income, adjusted EBITDA, adjusted EBITDA margin, cash flows, liquidity and capital resources, potential impairment, growth, strategies, plans, performance, distributions, organizational structure, future store openings or closures, market opportunities, and overall market and industry conditions[5](index=5&type=chunk) - Forward-looking statements are predictions based on management's views and assumptions using currently available information, are merely forecasts, and are not guarantees of future performance, actions, or events, being subject to risks and uncertainties[5](index=5&type=chunk) - Factors that could cause actual results to differ materially include: the impact of global economic conditions, political or social unrest and armed conflicts, inflation, overall economic downturns or general reductions in consumer spending, the pace and extent of recovery following the COVID-19 pandemic, significant changes in consumer spending patterns or preferences, disruptions or delays in the supply of finished goods or key components, the performance of the group's products in the current retail environment, financial difficulties encountered by customers and related bankruptcies and collection issues, and risks associated with the group's successful implementation of its restructuring plans[5](index=5&type=chunk) [Rounding and Notes](index=2&type=section&id=Rounding%20and%20Notes) Certain amounts in the report are rounded to the nearest million, which may cause discrepancies, with all percentages and key figures calculated using unrounded data - Certain amounts in this report have been rounded up or down to the nearest million, and therefore, actual totals of individual amounts in tables may differ from the totals shown[6](index=6&type=chunk) - All percentages and key figures are calculated using unrounded underlying data[6](index=6&type=chunk) - IFRS refers to International Financial Reporting Standards issued by the International Accounting Standards Board; EBITDA refers to earnings before interest, taxes, depreciation, and amortization[6](index=6&type=chunk) [Financial Performance Summary and Financial Highlights](index=3&type=section&id=Financial%20Performance%20Summary%20and%20Financial%20Highlights) [Financial Performance Summary](index=3&type=section&id=Financial%20Performance%20Summary) For the year ended December 31, 2022, the group saw continuous improvement in net sales due to strong travel recovery and reduced COVID-19 impact, though comparability was affected by the sale of Russian operations and Speck, and China's zero-COVID policy - For the year ended December 31, 2022, with the gradual easing of social distancing, travel, and other restrictions, the strong recovery in the travel industry and demand for the group's products across various countries led to continuous improvement in the group's net sales trends, and the impact of the COVID-19 pandemic on the group's business, financial position, and operating results significantly lessened[8](index=8&type=chunk) - When evaluating 2022 results, certain factors affected comparability, primarily the suspension and subsequent sale of Russian operations (completed July 1, 2022) and the sale of Speculative Product Design, LLC ("Speck") (completed July 30, 2021)[8](index=8&type=chunk) - The pace of recovery in 2022 was negatively impacted by the Chinese government's zero-COVID policy, leading to a slower recovery in net sales in China[8](index=8&type=chunk) 2022 vs 2021 Financial Performance Summary (USD millions) | Indicator | As of December 31, 2022 | As of December 31, 2021 | Percentage Increase % | Increase % Excluding Exchange Rate Impact | | :--- | :--- | :--- | :--- | :--- | | Net Sales | 2,879.6 | 2,020.8 | 42.5 | 52.3 | | Operating Profit | 492.1 | 132.7 | 271.1 | 296.9 | | Profit for the Year | 338.3 | 23.5 | 1,345.0 | 1,488.7 | | Profit Attributable to Equity Holders | 312.7 | 14.3 | 2,092.2 | 2,325.7 | | Adjusted Net Income | 296.0 | 17.4 | 1,606.3 | 1,788.1 | | Adjusted EBITDA | 472.3 | 182.3 | 159.0 | 181.4 | | Adjusted EBITDA Margin | 16.4 % | 9.0 % | - | - | | Basic Earnings Per Share (USD) | 0.218 | 0.010 | 2,089.2 | 2,322.4 | | Diluted Earnings Per Share (USD) | 0.217 | 0.010 | 2,089.1 | 2,322.3 | | Adjusted Basic and Diluted Earnings Per Share (USD) | 0.206 | 0.012 | 1,603.9 | 1,785.4 | [Financial Highlights](index=5&type=section&id=Financial%20Highlights) In fiscal year 2022, the company's net sales grew 42.5% to $2,879.6 million, gross margin improved to 55.8%, operating profit and net income significantly improved, and adjusted EBITDA increased 159.0% to $472.3 million with a 16.4% margin - Net sales for the year ended December 31, 2022, were **$2,879.6 million**, an increase of **42.5%** from 2021 (an increase of 52.3% at constant currency)[11](index=11&type=chunk) - Gross margin for the year ended December 31, 2022, was **55.8%**, compared to 54.5% last year, with the increase driven by higher net sales, product price adjustments to mitigate cost increases, and lower promotional discounts[11](index=11&type=chunk) - For the year ended December 31, 2022, the group reported operating profit of **$492.1 million**, a **271.1% improvement** from $132.7 million last year[11](index=11&type=chunk) - Adjusted EBITDA improved by **$290.0 million** from $182.3 million in 2021 to **$472.3 million** in 2022, with adjusted EBITDA margin increasing from 9.0% to **16.4%**, primarily due to sustained sales improvement, robust gross margin, and stringent expense management[11](index=11&type=chunk) - As of December 31, 2022, the group's net debt was **$1,383.7 million**, a decrease from $1,477.2 million at the end of 2021, with total liquidity of **$1,481.3 million**[11](index=11&type=chunk) [Chairman's Report](index=7&type=section&id=Chairman's%20Report) [2022 Performance Review](index=7&type=section&id=2022%20Performance%20Review) In 2022, Samsonite made encouraging progress with global travel recovery, achieving near pre-pandemic sales levels in H2, significant adjusted EBITDA and margin growth, and improved cash and debt management - Samsonite's net sales in the second half of 2022 largely recovered to pre-COVID-19 pandemic levels, decreasing by only **0.8%** compared to the second half of 2019[16](index=16&type=chunk) - Adjusted EBITDA in the second half of 2022 grew to **$276.6 million**, with an adjusted EBITDA margin of **17.2%**[16](index=16&type=chunk) - The group's gross margin in 2022 rose to **55.8%**, 130 basis points higher than 54.5% in 2021, and 40 basis points higher than 55.4% in 2019[16](index=16&type=chunk) - Adjusted EBITDA increased to **$472.3 million** in 2022, **$290.0 million higher** than 2021, with adjusted EBITDA margin rising to **16.4%**[16](index=16&type=chunk) - Net debt decreased from **$1.5 billion** at the end of 2021 to **$1.4 billion** at the end of 2022, with total liquidity maintained at just under **$1.5 billion** as of December 31, 2022[16](index=16&type=chunk) [Future Outlook and Investments](index=7&type=section&id=Future%20Outlook%20and%20Investments) The company is optimistic about continued travel recovery in 2023, especially with China's reopening, and plans to increase marketing, inventory, and capital expenditures to support growth - Global domestic and international travel significantly rebounded in 2022, and with China's reopening, the travel industry is expected to continue its recovery, driving sales and profitability growth in 2023[16](index=16&type=chunk) - The company prioritized expanding its investment in marketing, with marketing expenses increasing to **$156.0 million** (or **5.4% of net sales**) in 2022, and plans to further increase the absolute amount and percentage of net sales allocated to marketing investment in 2023[16](index=16&type=chunk) - The group increased inventory to **$687.6 million** in 2022 to meet the increasingly recovering consumer demand[16](index=16&type=chunk) - Investments in capital expenditures and software purchases increased from **$25.9 million** in 2021 to **$62.8 million** in 2022, with further increases in related areas planned for 2023[16](index=16&type=chunk) - Net sales in the first two months of 2023 increased by **16.5%** compared to the same period in 2019, and by **20.0%** further excluding China[16](index=16&type=chunk) [CEO's Report](index=9&type=section&id=CEO's%20Report) [2022 Performance Review](index=9&type=section&id=2022%20Performance%20Review) In 2022, Samsonite achieved strong net sales growth and improved profitability amid ongoing travel recovery, driven by stringent cost control, with H2 sales near pre-pandemic levels and adjusted EBITDA up 7.0% from 2019 - Samsonite's net sales in the second half of 2022 largely recovered to pre-COVID-19 pandemic levels, with significant profitability improvement simultaneously[18](index=18&type=chunk) - For the year ended December 31, 2022, despite excluding net sales from Russia and Speck, 2022 net sales were still **10.4% lower than 2019**, but Samsonite's adjusted EBITDA increased by **7.0% compared to 2019**[18](index=18&type=chunk) - The group's net debt in 2022 was **$1.4 billion**, only slightly higher than **$1.3 billion** at the end of 2019, with ample liquidity of **$1.5 billion** as of December 31, 2022[18](index=18&type=chunk) - Net sales continued to improve significantly in the first two months of 2023, increasing by **16.5%** compared to the same period in 2019, with strong growth across all regions; further excluding China, net sales increased by **20.0%**[18](index=18&type=chunk) [Net Sales Performance](index=9&type=section&id=Net%20Sales%20Performance) Consolidated net sales for H2 2022 reached $1,609.4 million, showing significant recovery, with full-year consolidated net sales of $2,879.6 million, up 52.3% year-on-year, driven by strong growth across all regions and core brands - For the six months ended December 31, 2022, the group recorded consolidated net sales of **$1,609.4 million**, exceeding the **$1,270.2 million** recorded in the first half of 2022 by **$339.3 million**[19](index=19&type=chunk) - Overall, for the year ended December 31, 2022, the group recorded consolidated net sales of **$2,879.6 million**, an increase of **$858.9 million or 52.3%** from $2,020.8 million recorded in 2021[20](index=20&type=chunk) - Excluding net sales from Russia and Speck, net sales increased by **57.4% year-on-year**; further excluding net sales from China, the group's net sales increased by **65.8% year-on-year**[20](index=20&type=chunk) - Compared to 2019, the group's net sales for the year ended December 31, 2022, decreased by **14.6%**, or **10.4%** excluding net sales from Russia and Speck[20](index=20&type=chunk) - For the year ended December 31, 2022, we made good progress in all regions, with net sales increasing year-on-year by **38.7% in North America, 43.9% in Asia, 87.7% in Europe, and 72.5% in Latin America**, respectively[20](index=20&type=chunk) - Net sales in Latin America in 2022 increased by **30.7% compared to 2019**[21](index=21&type=chunk) - For the year ended December 31, 2022, net sales for our core travel brands Samsonite, Tumi, and American Tourister increased year-on-year by **67.7%, 34.6%, and 63.4%**, respectively[21](index=21&type=chunk) [Enhanced Profitability](index=10&type=section&id=Enhanced%20Profitability) Gross profit increased 45.8% to $1,605.4 million in 2022, with gross margin rising to 55.8% due to reduced discounts, price increases, and cost control, while adjusted EBITDA margin grew to 16.4%, reflecting effective cost-saving initiatives - The group's gross profit increased by **$504.0 million or 45.8%** from $1,101.5 million in 2021 to **$1,605.4 million** in 2022, with gross margin rising by 130 basis points from 54.5% in 2021 to **55.8%** in 2022[22](index=22&type=chunk) - Marketing expenses were **$156.0 million**, an increase of **$73.7 million or 89.5%** from 2021, representing **5.4% of net sales** in 2022, up 130 basis points from 2021[22](index=22&type=chunk) - Fixed SG&A expenses as a percentage of net sales significantly decreased to **24.1%** in 2022 from 30.8% in 2021, and 320 basis points lower than 27.3% in 2019[22](index=22&type=chunk) - Samsonite's adjusted EBITDA margin grew to **16.4%** in 2022, a significant increase from 9.0% in 2021 and 13.5% in 2019[22](index=22&type=chunk) - For the year ended December 31, 2022, the group's adjusted EBITDA increased by **$290.0 million** from $182.3 million in 2021 to **$472.3 million**[23](index=23&type=chunk) - Adjusted net income in 2022 was **$296.0 million**, an increase of **$278.7 million** from $17.4 million in 2021, and an increase of **$80.2 million** from $215.9 million in 2019[23](index=23&type=chunk) [Cash and Debt Management](index=10&type=section&id=Cash%20and%20Debt%20Management) In 2022, the company invested in R&D, retail expansion, and production capacity, increasing inventory to $687.6 million and capital expenditures to $62.8 million, while generating $74.9 million in cash and reducing net debt to $1,383.7 million, improving the net leverage ratio to 2.85:1 - We continue to invest in product research and development, complementing our traditional strengths in product lightness, strength, and functionality by continuously enhancing product sustainability[23](index=23&type=chunk) - Our inventory as of December 31, 2022, reached **$687.6 million**, compared to $348.4 million at the end of 2021 and $587.3 million at the end of 2019[23](index=23&type=chunk) - We strategically opened 50 new retail stores, accelerated renovations for existing retail locations that were delayed during the COVID-19 pandemic, and invested in our European production facilities to expand capacity[24](index=24&type=chunk) - Capital expenditures (including software purchases) increased to **$62.8 million** in 2022, compared to $25.9 million in 2021 and $74.5 million in 2019[24](index=24&type=chunk) - Samsonite generated total cash of **$74.9 million** for the year ended December 31, 2022[24](index=24&type=chunk) - We repaid **$751.4 million** of outstanding borrowings under the Senior Credit Facilities in 2022, improving the group's net debt to **$1,383.7 million** as of December 31, 2022[24](index=24&type=chunk) - The reduction in net debt, coupled with the strong recovery in adjusted EBITDA, enabled the group to improve its net leverage ratio to below 3.00:1, reaching **2.85:1** as of December 31, 2022[24](index=24&type=chunk) [Future Outlook and Investments](index=10&type=section&id=Future%20Outlook%20and%20Investments) The company is confident in continued travel recovery in 2023, driven by China's reopening and business travel, and will focus on product innovation, gross margin maintenance, increased marketing, controlled non-marketing SG&A, and sustainability to strengthen market leadership and long-term growth - The United Nations World Tourism Organization estimates that international tourist arrivals in 2023 could reach **80% to 95% of pre-COVID-19 pandemic levels**, compared to an estimated 63% recovery in 2022[25](index=25&type=chunk) - With China ending its zero-COVID policy and related travel restrictions, we expect a rebound in Chinese outbound tourism to drive recovery in our net sales in Asia, as well as Europe and North America, later in the year[25](index=25&type=chunk) - China's net sales in January 2023 decreased by **43.3%** compared to the same month in 2019, but rebounded significantly to an increase of **27.6%** in February 2023[26](index=26&type=chunk) - Looking ahead, we remain focused on leveraging Samsonite's competitive advantages to strengthen our market leadership and drive long-term growth, including product innovation, diversified brands, sustainability and innovation, a global sourcing and distribution platform, and a decentralized regional management structure[26](index=26&type=chunk) - We plan to increase marketing investments in 2023 to support new product launches and drive net sales growth, while controlling non-marketing SG&A expenses to achieve favorable operating leverage and improve margins[26](index=26&type=chunk) - Over **23% of net sales in 2022** came from products containing recycled materials, compared to an estimated 17% in 2021 and only 5% in 2019[27](index=27&type=chunk) [Independent Auditor's Report](index=13&type=section&id=Independent%20Auditor's%20Report) [Opinion](index=13&type=section&id=Opinion) KPMG LLP, as independent auditor, states that Samsonite International S.A. and its subsidiaries' consolidated financial statements for the years ended December 31, 2022 and 2021, fairly present their consolidated financial position, performance, and cash flows in all material respects, in accordance with IFRS - The auditor believes that the accompanying consolidated financial statements fairly present, in all material respects, the consolidated financial position of the group as of December 31, 2022 and 2021, and its consolidated financial performance and cash flows for the years then ended, in accordance with International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB")[29](index=29&type=chunk) [Basis for Opinion](index=13&type=section&id=Basis%20for%20Opinion) The audit was conducted in accordance with GAAS and ISA, with the auditor maintaining independence and fulfilling ethical responsibilities, believing the obtained audit evidence provides a sufficient basis for the opinion - The audit was conducted in accordance with Generally Accepted Auditing Standards in the United States of America ("GAAS") and International Standards on Auditing ("ISA")[30](index=30&type=chunk) - The auditor is independent of the group and has fulfilled other professional ethical responsibilities, believing that the audit evidence obtained is sufficient and appropriate to provide a basis for the audit opinion[30](index=30&type=chunk) [Key Audit Matters](index=13&type=section&id=Key%20Audit%20Matters) Key audit matters include revenue recognition, due to global sales network complexities and control transfer indicators, and indefinite-lived tradename impairment, which involves significant judgment in estimating recoverable amounts - Key audit matters are those matters that, in the auditor's professional judgment, were of most significance in the audit of the consolidated financial statements for the current period[31](index=31&type=chunk) - Revenue recognition was identified as a key audit matter because the group's sales network spans multiple countries globally, and there is a risk of inconsistent application of control transfer indicators, particularly for wholesale revenue transactions recorded at or near year-end[32](index=32&type=chunk) - Indefinite-lived tradename impairment testing was considered a key audit matter due to the complex accounting requirements and the significant judgment required in determining the assumptions used to estimate recoverable amounts, as these models use several key assumptions, including projected revenue growth rates and the company-specific risk premium portion of the discount rate[32](index=32&type=chunk) [Revenue Recognition (Note 3(p))](index=13&type=section&id=Revenue%20Recognition%20%28Note%203%28p%29%29) The group recognizes revenue when control of goods is transferred to customers, typically indicated by legal ownership, physical possession, and significant risks and rewards of ownership - The group recognizes revenue at the point in time when performance obligations are satisfied by transferring control of goods to customers, typically using legal ownership, physical possession, and significant risks and rewards of ownership as indicators of control transfer[32](index=32&type=chunk) - Audit procedures included evaluating the design of internal controls, determining the process for transferring control, assessing contractual arrangements, and sampling year-end revenue transactions[32](index=32&type=chunk) [Indefinite-Lived Tradename Impairment (Note 8(b))](index=13&type=section&id=Indefinite-Lived%20Tradename%20Impairment%20%28Note%208%28b%29%29) As of December 31, 2022, the net carrying amount of indefinite-lived tradenames was $1,378.4 million, with a net impairment reversal of $81.7 million, requiring significant judgment in estimating recoverable amounts using discounted cash flow models - The group's net carrying amount of indefinite-lived tradenames as of December 31, 2022, was **$1,378.4 million**, and a net impairment reversal totaling **$81.7 million** was recognized[32](index=32&type=chunk) - Recoverable amounts are derived from discounted projected cash flow models, using several key assumptions, including projected revenue growth rates and the company-specific risk premium portion of the discount rate, which involve significant judgment[32](index=32&type=chunk) - Audit procedures included evaluating the design of internal controls, assessing the appropriateness of revenue forecasts and growth rates, and evaluating discount rates with the assistance of valuation specialists[33](index=33&type=chunk) [Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements](index=14&type=section&id=Responsibilities%20of%20Management%20and%20Those%20Charged%20with%20Governance%20for%20the%20Consolidated%20Financial%20Statements) Management is responsible for preparing and fairly presenting the consolidated financial statements in accordance with IFRS, designing and maintaining internal controls, and assessing the company's ability to continue as a going concern, while governance oversees the financial reporting process - Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS issued by the IASB, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error[34](index=34&type=chunk) - Management is required to assess whether conditions or events exist that cast significant doubt on the ability to continue as a going concern and to disclose matters related to going concern where applicable[34](index=34&type=chunk) - Those charged with governance are responsible for overseeing the group's financial reporting process[34](index=34&type=chunk) [Auditor's Responsibilities for the Audit of the Consolidated Financial Statements](index=14&type=section&id=Auditor's%20Responsibilities%20for%20the%20Audit%20of%20the%20Consolidated%20Financial%20Statements) The auditor aims to obtain reasonable assurance that the consolidated financial statements are free from material misstatement, exercising professional judgment and skepticism to identify and address risks, evaluate accounting policies, and communicate findings to governance - The auditor's objective is to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes an opinion[35](index=35&type=chunk) - In conducting an audit in accordance with GAAS and ISA, the auditor exercises professional judgment and maintains professional skepticism, identifying and assessing the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and designing and performing audit procedures responsive to those risks[35](index=35&type=chunk) - The auditor communicates with those charged with governance regarding the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters identified during the audit[35](index=35&type=chunk) [Other Information in the Annual Report](index=14&type=section&id=Other%20Information%20in%20the%20Annual%20Report) Management is responsible for other information in the annual report, excluding the financial statements and auditor's report, with the auditor reviewing it for material inconsistencies or misstatements and reporting any uncorrected issues - Management is responsible for the other information contained in the annual report, including information published therein, but excluding the consolidated financial statements and the auditor's report[36](index=36&type=chunk) - The auditor's opinion on the consolidated financial statements does not cover the other information, and no opinion or any form of assurance is expressed thereon[36](index=36&type=chunk) - If the auditor concludes that there is an uncorrected material misstatement in the other information, it must be stated in the report[36](index=36&type=chunk) [Consolidated Financial Statements](index=16&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Income Statement](index=16&type=section&id=Consolidated%20Income%20Statement) For the year ended December 31, 2022, the company reported net sales of $2,879.6 million, gross profit of $1,605.4 million, significantly increased operating profit to $492.1 million, and profit for the year of $338.3 million Consolidated Income Statement (USD millions, except per share data) | Indicator | As of December 31, 2022 | As of December 31, 2021 | | :--- | :--- | :--- | | Net Sales | 2,879.6 | 2,020.8 | | Cost of Sales | (1,274.2) | (919.3) | | Gross Profit | 1,605.4 | 1,101.5 | | Distribution Expenses | (807.3) | (699.6) | | Marketing Expenses | (156.0) | (82.3) | | General and Administrative Expenses | (221.9) | (206.0) | | Impairment Reversals | 72.2 | 31.6 | | Restructuring Expenses | (1.3) | (17.1) | | Other Income | 1.0 | 4.6 | | Operating Profit | 492.1 | 132.7 | | Finance Income | 8.8 | 3.6 | | Finance Costs | (138.3) | (169.0) | | Net Finance Costs | (129.5) | (165.4) | | Profit (Loss) Before Income Tax | 362.6 | (32.7) | | Income Tax (Expense) Credit | (24.3) | 56.2 | | Profit for the Year | 338.3 | 23.5 | | Profit Attributable to Equity Holders | 312.7 | 14.3 | | Profit Attributable to Non-Controlling Interests | 25.6 | 9.2 | | Basic Earnings Per Share (USD) | 0.218 | 0.010 | | Diluted Earnings Per Share (USD) | 0.217 | 0.010 | [Consolidated Statement of Comprehensive Income](index=17&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the year ended December 31, 2022, the company's profit for the year was $338.3 million, with total comprehensive income of $367.7 million, primarily driven by fair value changes in hedging and foreign currency translation gains from foreign operations Consolidated Statement of Comprehensive Income (USD millions) | Indicator | As of December 31, 2022 | As of December 31, 2021 | | :--- | :--- | :--- | | Profit for the Year | 338.3 | 23.5 | | Other Comprehensive Income (Loss): | | | | Remeasurement of Defined Benefit Plans (net of tax) | 2.7 | 2.4 | | Fair Value Changes of Hedges (net of tax) | 23.0 | 19.9 | | Settlement of Cross-Currency Swap Agreements (net of tax) | (0.1) | 0.9 | | Foreign Currency Translation Gains from Foreign Operations | 3.8 | 8.0 | | Other Comprehensive Income | 29.4 | 31.2 | | Total Comprehensive Income for the Year | 367.7 | 54.7 | | Total Comprehensive Income Attributable to Equity Holders | 345.8 | 47.9 | | Total Comprehensive Income Attributable to Non-Controlling Interests | 21.9 | 6.8 | [Consolidated Statement of Financial Position](index=18&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of December 31, 2022, the company's total assets were $4,721.1 million, total liabilities were $3,641.5 million, and total equity was $1,079.6 million, with net current assets of $481.4 million Consolidated Statement of Financial Position (USD millions) | Indicator | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Non-Current Assets** | | | | Property, Plant and Equipment | 161.5 | 155.1 | | Right-of-Use Assets | 314.1 | 348.9 | | Goodwill | 824.2 | 828.5 | | Other Intangible Assets | 1,458.8 | 1,392.3 | | Deferred Tax Assets | 173.6 | 124.2 | | Derivative Financial Instruments | 30.5 | — | | Other Assets and Receivables | 63.8 | 65.7 | | **Total Non-Current Assets** | **3,026.5** | **2,914.7** | | **Current Assets** | | | | Inventories | 687.6 | 348.4 | | Trade and Other Receivables | 290.9 | 206.2 | | Prepaid Expenses and Other Assets | 80.2 | 60.2 | | Cash and Cash Equivalents | 635.9 | 1,324.8 | | **Total Current Assets** | **1,694.6** | **1,939.6** | | **Total Assets** | **4,721.1** | **4,854.3** | | **Equity** | | | | Total Equity Attributable to Equity Holders | 1,031.8 | 689.7 | | Non-Controlling Interests | 47.8 | 36.9 | | **Total Equity** | **1,079.6** | **726.6** | | **Non-Current Liabilities** | | | | Loans and Borrowings | 1,893.3 | 2,682.0 | | Lease Liabilities | 256.7 | 302.8 | | Employee Benefits | 26.6 | 28.1 | | Non-Controlling Interests Put Options | 85.0 | 47.2 | | Deferred Tax Liabilities | 161.7 | 140.4 | | Derivative Financial Instruments | — | 3.4 | | Other Liabilities | 5.0 | 6.1 | | **Total Non-Current Liabilities** | **2,428.3** | **3,210.0** | | **Current Liabilities** | | | | Loans and Borrowings | 67.0 | 60.7 | | Current Portion of Long-Term Loans and Borrowings | 51.6 | 46.6 | | Current Portion of Lease Liabilities | 118.9 | 131.2 | | Employee Benefits | 120.1 | 92.9 | | Trade and Other Payables | 778.5 | 529.0 | | Current Tax Liabilities | 77.1 | 57.3 | | **Total Current Liabilities** | **1,213.2** | **917.7** | | **Total Liabilities** | **3,641.5** | **4,127.7** | | **Total Equity and Liabilities** | **4,721.1** | **4,854.3** | | Net Current Assets | 481.4 | 1,021.9 | [Consolidated Statement of Changes in Equity](index=19&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) For the year ended December 31, 2022, total equity attributable to equity holders increased from $689.7 million to $1,031.8 million, driven by profit for the year of $312.7 million and total comprehensive income of $345.8 million - Total equity attributable to equity holders was **$689.7 million** at January 1, 2022, and **$1,031.8 million** at December 31, 2022[41](index=41&type=chunk) - Profit attributable to equity holders for the year ended December 31, 2022, was **$312.7 million**[41](index=41&type=chunk) - Total comprehensive income for the year was **$367.7 million**, with total comprehensive income attributable to equity holders of **$345.8 million**[41](index=41&type=chunk) - Share-based compensation expense was **$13.8 million**, exercise of share options contributed **$2.3 million**, and vesting of time-based restricted share awards was **$0.0 million**[41](index=41&type=chunk) Consolidated Statement of Changes in Equity (USD millions, except number of shares) | Indicator | Balance at January 1, 2022 | Profit for the Year | Total Other Comprehensive Income | Transactions with Owners Directly in Equity | Balance at December 31, 2022 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Equity Attributable to Equity Holders | 689.7 | 312.7 | 345.8 | (3.7) | 1,031.8 | | Non-Controlling Interests | 36.9 | 25.6 | 21.9 | (11.0) | 47.8 | | Total Equity | 726.6 | 338.3 | 367.7 | (14.7) | 1,079.6 | [Consolidated Statement of Cash Flows](index=21&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the year ended December 31, 2022, net cash from operating activities was $277.7 million, net cash used in investing activities was $62.8 million, and net cash used in financing activities was $881.1 million, resulting in a decrease in cash and cash equivalents to $635.9 million Consolidated Statement of Cash Flows (USD millions) | Indicator | As of December 31, 2022 | As of December 31, 2021 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 277.7 | 387.1 | | Net Cash (Used in) Provided by Investing Activities | (62.8) | 9.4 | | Net Cash Used in Financing Activities | (881.1) | (551.2) | | Net Decrease in Cash and Cash Equivalents | (666.2) | (154.7) | | Cash and Cash Equivalents at Beginning of Year | 1,324.8 | 1,495.0 | | Effect of Exchange Rate Changes | (22.7) | (15.5) | | Cash and Cash Equivalents at End of Year | 635.9 | 1,324.8 | [Notes to the Consolidated Financial Statements](index=22&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) [Background](index=22&type=section&id=Background) Samsonite International S.A. designs, manufactures, sources, and distributes luggage, business, outdoor, and travel accessories globally under brands like Samsonite® and Tumi®, selling through wholesale, retail, and e-commerce channels - Samsonite International S.A. primarily engages in the global design, manufacture, sourcing, and distribution of luggage, business and computer bags, outdoor and casual bags, and travel accessories, operating brands including Samsonite®, Tumi®, American Tourister®, Gregory®, High Sierra®, Kamiliant®, ebags®, Lipault®, and Hartmann®, as well as other owned and licensed brands[44](index=44&type=chunk) - The group sells its products through various wholesale distribution channels, company-owned retail stores, and e-commerce, across North America, Asia, Europe, and Latin America[44](index=44&type=chunk) - The group completed the sale of its Russian operations on July 1, 2022; on July 30, 2021, a wholly-owned subsidiary of the company sold Speculative Product Design, LLC ("Speck") (including the Speck brand)[44](index=44&type=chunk) - The company's ordinary shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited ("SEHK"); the company was incorporated in Luxembourg as a public limited liability company on March 8, 2011[44](index=44&type=chunk) [Basis of Preparation](index=22&type=section&id=Basis%20of%20Preparation) The consolidated financial statements are prepared in accordance with IFRS and Hong Kong Companies Ordinance disclosure requirements, presented in USD on a historical cost basis, involving key accounting estimates and judgments, with no significant impact from 2022 IFRS amendments - The consolidated financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB"), and comply with the applicable disclosure requirements of the Hong Kong Companies Ordinance and the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("Listing Rules")[44](index=44&type=chunk) - The consolidated financial statements are prepared on a historical cost basis, and are presented in United States dollars ("USD"), which is the company's functional and presentation currency, unless otherwise stated[45](index=45&type=chunk) - The preparation of consolidated financial statements in conformity with IFRS requires the use of certain critical accounting estimates, and also requires management to exercise its judgment in applying the group's accounting policies and making estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting period[45](index=45&type=chunk) - Amendments to IAS 37, IAS 16, and IFRS 9 effective for annual reporting periods beginning on or after January 1, 2022, are not expected to have a significant impact on the group's consolidated financial statements[47](index=47&type=chunk) [Summary of Significant Accounting Policies](index=23&type=section&id=Summary%20of%20Significant%20Accounting%20Policies) This chapter outlines the group's accounting policies for consolidation, foreign currency translation, segment reporting, property, plant and equipment, leases, goodwill and other intangible assets, impairment, inventory, receivables, cash, borrowings, financial instruments, employee benefits, income tax, revenue recognition, cost of sales, distribution, marketing, general and administrative expenses, finance income and costs, earnings per share, and provisions - The group's accounting policies cover principles of consolidation (subsidiaries, non-controlling interests, business combinations), foreign currency translation (foreign currency transactions, foreign operations), segment reporting, property, plant and equipment, leases, goodwill and other intangible assets, impairment, inventories, trade and other receivables, cash and cash equivalents, interest-bearing borrowings, financial instruments, employee benefits, income tax, revenue recognition, cost of sales, distribution, marketing, and general and administrative expenses, finance income and costs, earnings (loss) per share, and provisions and contingent liabilities[48](index=48&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk)[58](index=58&type=chunk)[60](index=60&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk)[68](index=68&type=chunk)[72](index=72&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk) - The group's assessment of new standards and interpretations indicates that amendments to IAS 1, IFRS Practice Statement 2, IAS 8, and IAS 12 are not expected to have a significant impact on the group's consolidated financial statements, while amendments to IFRS 16 are currently being evaluated[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) [Segment Reporting](index=32&type=section&id=Segment%20Reporting) The group's operating segments are North America, Asia, Europe, Latin America, and Corporate, with segment performance measured by operating profit or loss, showing strong external revenue contributions from all regions and core brands in 2022 - The group's operating segments include North America, Asia, Europe, Latin America, and Corporate, with segment results measured based on operating profit or loss[80](index=80&type=chunk) 2022 Financial Data by Region (USD millions) | Indicator | North America | Asia | Europe | Latin America | Corporate | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | External Revenue | 1,117.3 | 916.4 | 675.7 | 168.8 | 1.5 | 2,879.6 | | Operating Profit | 209.2 | 148.9 | 103.2 | 20.6 | 10.2 | 492.1 | | Total Assets | 1,419.7 | 1,259.3 | 685.9 | 146.0 | 1,210.1 | 4,721.1 | | Total Liabilities | 969.5 | 618.3 | 411.7 | 91.8 | 1,550.1 | 3,641.5 | 2022 Net Sales by Brand (USD millions) | Brand | 2022 Net Sales | | :--- | :--- | | Samsonite | 1,444.3 | | Tumi | 654.2 | | American Tourister | 519.4 | | Gregory | 61.4 | | Other | 200.3 | | **Total Net Sales** | **2,879.6** | 2022 Net Sales by Product Category (USD millions) | Product Category | 2022 Net Sales | | :--- | :--- | | Travel | 1,891.8 | | Non-Travel | 987.8 | | **Total Net Sales** | **2,879.6** | 2022 Net Sales by Distribution Channel (USD millions) | Distribution Channel | 2022 Net Sales | | :--- | :--- | | Wholesale | 1,794.1 | | Direct-to-Consumer (DTC) | 1,083.8 | | Other | 1.6 | | **Total Net Sales** | **2,879.6** | 2022 Specified Non-Current Assets by Country/Region (USD millions) | Country/Region | December 31, 2022 | | :--- | :--- | | United States | 1,270.4 | | Singapore | 510.1 | | Luxembourg | 143.7 | | Belgium | 69.9 | | Japan | 46.3 | | China | 40.5 | | India | 38.7 | | Hungary | 21.3 | | Chile | 20.9 | | Italy | 19.2 | | Hong Kong | 16.6 | | Germany | 16.5 | | France | 16.3 | | South Korea | 15.9 | | United Kingdom | 15.9 | | Mexico | 13.6 | | Canada | 10.0 | | Spain | 9.2 | [Impairment Reversals](index=36&type=section&id=Impairment%20Reversals) In 2022, the group recognized an $81.7 million impairment reversal for tradenames due to improved post-pandemic sales and profitability, while also recording impairment charges for Russian operations and reversals for company-owned retail stores - The group recognized impairment reversals totaling **$81.7 million** for certain tradenames during its annual assessment in the fourth quarter of 2022, attributed to sustained improvement in post-pandemic net sales and profitability[92](index=92&type=chunk) - For the year ended December 31, 2022, the group recognized impairment charges totaling **$11.9 million** related to the sale of its Russian operations[92](index=92&type=chunk) - For the year ended December 31, 2022, the group recognized impairment reversals totaling **$2.4 million** for company-owned retail stores[92](index=92&type=chunk) - For the year ended December 31, 2021, the group recognized impairment reversals totaling **$45.2 million** for certain tradenames[93](index=93&type=chunk) - For the year ended December 31, 2021, the group recognized impairment reversals totaling **$11.0 million** for company-owned retail stores[94](index=94&type=chunk) - For the year ended December 31, 2021, the group recognized impairment charges totaling **$24.7 million** related to the sale of Speck[94](index=94&type=chunk) Impairment (Reversal) Expense Details (USD millions) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Goodwill | — | 14.4 | | Trademarks and Other Intangible Assets | (81.7) | (34.9) | | Right-of-Use Assets | 1.8 | (8.8) | | Property, Plant and Equipment | (0.1) | (2.2) | | Other (Sale of Russian Operations) | 7.8 | — | | **Total Impairment Reversals** | **(72.2)** | **(31.6)** | [Restructuring Expenses](index=38&type=section&id=Restructuring%20Expenses) Total restructuring expenses in 2022 were $1.3 million, primarily due to the sale of Russian operations, while 2021 expenses of $17.7 million mainly involved severance, store closure costs, and fees related to the Speck sale and IP restructuring Restructuring Expense Details (USD millions) | Functional Area | 2022 Restructuring Expenses | 2021 Restructuring Expenses | | :--- | :--- | :--- | | Restructuring expenses included in cost of sales | — | 0.7 | | Restructuring expenses (reversal) attributable to distribution function | (2.4) | 1.7 | | Restructuring expenses attributable to general and administrative function | 3.7 | 15.4 | | **Total Restructuring Expenses** | **1.3** | **17.7** | - The group recognized **$1.3 million** in restructuring expenses for the year ended December 31, 2022, primarily attributable to the sale of its Russian operations[98](index=98&type=chunk) - Restructuring expenses of **$17.7 million** for the year ended December 31, 2021, primarily included severance costs related to permanent headcount reductions, store closure costs, losses on the sale of Speck, and certain other costs[99](index=99&type=chunk) - In June 2021, the group established a brand development and sourcing center in Singapore and completed certain intra-group intellectual property restructuring, with related costs included in 2021 restructuring expenses[99](index=99&type=chunk) Restructuring Expense Accrual Activities (USD millions) | Item | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Balance at January 1 | 16.0 | 24.8 | | Restructuring expenses recognized during the year | 4.7 | 18.5 | | Amounts paid during the year | (9.2) | (25.0) | | Restructuring expenses reversed during the year | (3.4) | (0.8) | | Exchange differences/other changes during the year | (0.9) | (1.5) | | **Balance at December 31** | **7.2** | **16.0** | [Property, Plant and Equipment](index=39&type=section&id=Property%2C%20Plant%20and%20Equipment) As of December 31, 2022, the net carrying amount of property, plant and equipment was $161.5 million, with additions of $51.6 million and depreciation of $34.9 million during the year, alongside minor impairment charges and reversals Net Carrying Amount of Property, Plant and Equipment (USD millions) | Category | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Land | 9.8 | 10.3 | | Buildings | 43.5 | 50.7 | | Machinery, Equipment, Leasehold Improvements and Other | 108.2 | 94.1 | | **Total** | **161.5** | **155.1** | Changes in Carrying Value of Property, Plant and Equipment (USD millions) | Item | Land | Buildings | Machinery, Equipment, Leasehold Improvements and Other | Total | | :--- | :--- | :--- | :--- | :--- | | Net carrying amount at January 1, 2022 | 10.3 | 50.7 | 94.1 | 155.1 | | Additions | — | 0.1 | 51.5 | 51.6 | | Depreciation | — | (2.4) | (32.5) | (34.9) | | Disposals | (0.2) | (1.3) | (0.6) | (2.1) | | Impairment Reversals | — | — | 0.1 | 0.1 | | Exchange differences and other changes | (0.3) | (3.5) | (4.5) | (8.4) | | **Net carrying amount at December 31, 2022** | **9.8** | **43.5** | **108.2** | **161.5** | - Depreciation expense for the year ended December 31, 2022, was **$34.9 million**[102](index=102&type=chunk) - For the year ended December 31, 2022, the group recognized impairment charges totaling **$0.1 million** related to property, plant and equipment of Russian retail stores[104](index=104&type=chunk) - Capital commitments outstanding as of December 31, 2022, were **$13.6 million**[105](index=105&type=chunk) [Goodwill and Other Intangible Assets](index=40&type=section&id=Goodwill%20and%20Other%20Intangible%20Assets) As of December 31, 2022, goodwill was $824.2 million, primarily allocated to Asia and North America, while other intangible assets were $1,458.8 million, with tradenames accounting for $1,378.4 million, and an $81.7 million tradename impairment reversal recognized Carrying Value of Goodwill (USD millions) | Indicator | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Cost | 2,290.1 | 2,294.3 | | Accumulated Impairment Losses | (1,465.9) | (1,465.8) | | **Carrying Value** | **824.2** | **828.5** | Carrying Value of Goodwill Allocated to Operating Segments (USD millions) | Segment | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | North America | 282.7 | 282.7 | | Asia | 487.6 | 487.7 | | Europe | 53.9 | 58.0 | | Latin America | — | — | | **Total** | **824.2** | **828.5** | Net Carrying Amount of Other Intangible Assets (USD millions) | Category | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Trademarks | 1,378.4 | 1,296.7 | | Customer Relationships | 60.6 | 78.2 | | Other | 19.8 | 17.5 | | **Total** | **1,458.8** | **1,392.3** | Changes in Carrying Value of Other Intangible Assets (USD millions) | Item | Trademarks | Customer Relationships | Other | Total | | :--- | :--- | :--- | :--- | :--- | | Net carrying amount at January 1, 2022 | 1,296.7 | 78.2 | 17.5 | 1,392.3 | | Additions | — | — | 11.2 | 11.2 | | Amortization | — | (15.9) | (6.4) | (22.3) | | Impairment Reversals | 81.7 | — | — | 81.7 | | Exchange differences and other changes | 0.0 | (1.7) | (2.5) | (4.2) | | **Net carrying amount at December 31, 2022** | **1,378.4** | **60.6** | **19.8** | **1,458.8** | - Amortization expense for intangible assets for the year ended December 31, 2022, was **$22.3 million**[111](index=111&type=chunk) - Goodwill valuation uses five-year financial estimates and discounted cash flow projections, with a pre-tax discount rate of **11.0%-12.0%** and a long-term growth rate of **3.0%**[113](index=113&type=chunk) - Other intangible assets valuation also uses five-year financial estimates and discounted projections, with a pre-tax discount rate of **11.0%-12.0%** and a long-term growth rate of **3.0%**[115](index=115&type=chunk) [Prepaid Expenses, Other Assets and Receivables](index=43&type=section&id=Prepaid%20Expenses%2C%20Other%20Assets%20and%20Receivables) As of December 31, 2022, non-current other assets and receivables totaled $63.8 million, while current prepaid expenses and other assets amounted to $80.2 million, primarily comprising prepaid VAT, income tax, and other expenses Non-Current Other Assets and Receivables (USD millions) | Item | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Deposits | 29.0 | 31.2 | | Other | 34.8 | 34.5 | | **Total** | **63.8** | **65.7** | Current Prepaid Expenses and Other Assets (USD millions) | Item | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Prepaid VAT | 31.5 | 27.7 | | Prepaid Income Tax | 18.4 | 10.0 | | Prepaid Advertising Expenses | 3.8 | 3.7 | | Prepaid Insurance Expenses | 2.6 | 2.3 | | Other Prepaid Expenses | 23.9 | 16.5 | | **Total** | **80.2** | **60.2** | [Inventories](index=44&type=section&id=Inventories) As of December 31, 2022, total inventory significantly increased to $687.6 million from $348.4 million in 2021, primarily consisting of finished goods, with inventory written down to net realizable value of $36.6 million and a reversal of $19.4 million Inventory Details (USD millions) | Item | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Raw Materials | 25.8 | 19.8 | | Work-in-Progress | 2.7 | 1.8 | | Finished Goods | 659.1 | 326.8 | | **Total Inventory** | **687.6** | **348.4** | - Amounts as of December 31, 2022, and December 31, 2021, respectively, include inventories stated at net realizable value of **$70.9 million** and **$40.4 million**[119](index=119&type=chunk) - For the year ended December 31, 2022, inventory written down to net realizable value was **$36.6 million**, with a reversal of previously recognized write-downs of **$19.4 million**[119](index=119&type=chunk) [Trade and Other Receivables](index=44&type=section&id=Trade%20and%20Other%20Receivables) As of December 31, 2022, net trade and other receivables were $290.9 million, after a credit loss allowance of $25.9 million, with current trade receivables (net of allowance) at $231.2 million - Trade and other receivables are presented net of allowances for credit losses, which were **$25.9 million** and **$31.8 million** as of December 31, 2022, and December 31, 2021, respectively[120](index=120&type=chunk) Ageing Analysis of Trade Receivables (Net of Allowance, USD millions) | Ageing | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Current | 231.2 | 172.9 | | 0 to 30 Days Overdue | 42.8 | 23.6 | | Over 30 Days Overdue | 7.7 | 1.1 | | **Total** | **281.7** | **197.6** | Changes in Allowance for Credit Losses (USD millions) | Item | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | At January 1 | 31.8 | 32.4 | | Impairment losses recognized | 2.5 | 3.3 | | Impairment losses reversed or written off | (8.4) | (3.9) | | **At December 31** | **25.9** | **31.8** | [Cash and Cash Equivalents](index=44&type=section&id=Cash%20and%20Cash%20Equivalents) As of December 31, 2022, cash and cash equivalents totaled $635.9 million, primarily bank balances, representing a decrease from 2021, with no restrictions on their use Cash and Cash Equivalents (USD millions) | Item | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Bank Balances | 612.6 | 1,226.0 | | Overnight Liquid Accounts and Deposits | 23.3 | 98.8 | | **Total** | **635.9** | **1,324.8** | - As of December 31, 2022, and December 31, 2021, the group had no restrictions on the use of cash or cash equivalents[123](index=123&type=chunk) [Earnings Per Share and Share Capital](index=45&type=section&id=Earnings%20Per%20Share%20and%20Share%20Capital) For the year ended December 31, 2022, basic EPS was $0.218 and diluted EPS was $0.217, both significantly up from 2021, with 2 million ordinary shares issued due to share option exercises and restricted share awards Basic Earnings Per Share (USD millions, except shares and per share data) | Indicator | As of December 31, 2022 | As of December 31, 2021 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders | 312.7 | 14.3 | | Basic Earnings Per Share (USD) | 0.218 | 0.010 | | Weighted Average Number of Ordinary Shares | 1,437,575,062 | 1,435,615,231 | Diluted Earnings Per Share (USD millions, except shares and per share data) | Indicator | As of December 31, 2022 | As of December 31, 2021 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders | 312.7 | 14.3 | | Diluted Earnings Per Share (USD) | 0.217 | 0.010 | | Weighted Average Number of Shares for the Year | 1,439,740,642 | 1,437,729,596 | - For the year ended December 31, 2022, the company issued **1,071,467 ordinary shares** upon the exercise of vested share options and **923,902 ordinary shares** upon the vesting of time-based restricted share awards[127](index=127&type=chunk) - No cash distributions were made to the company's shareholders in 2022 or 2021; for the years ended December 31, 2022, and December 31, 2021, dividends of **$11.0 million** and **$4.8 million** were paid to non-controlling interests, respectively[127](index=127&type=chunk) [Loans and Borrowings](index=46&type=section&id=Loans%20and%20Borrowings) As of December 31, 2022, total loans and borrowings significantly decreased to $2,019.6 million from $2,802.0 million in 2021, primarily comprising Senior Credit Facilities and Senior Notes, with $751.4 million repaid under the Senior Credit Facilities Carrying Value of Loans and Borrowings (USD millions) | Item | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Term Loan A Facility | 580.0 | 640.0 | | Term Loan B Facility | 534.9 | 541.6 | | 2021 Incremental Term Loan B Facility | 463.1 | 493.0 | | Revolving Credit Facility | — | 668.7 | | Total Senior Credit Facilities | 1,578.0 | 2,343.3 | | Senior Notes | 374.6 | 398.0 | | Other Borrowings and Debt | 67.0 | 60.8 | | **Total Loans and Borrowings** | **2,019.6** | **2,802.0** | | Less Deferred Financing Costs | (7.8) | (12.6) | | **Total Loans and Borrowings Net of Deferred Financing Costs** | **2,011.8** | **2,789.4** | - For the year ended December 31, 2022, the group repaid **$751.4 million** of outstanding borrowings under its Senior Credit Facilities, including voluntary repayments of **$704.8 million** and scheduled quarterly payments of **$46.6 million**[141](index=141&type=chunk) - The Senior Credit Facilities include a Term Loan A Facility, Term Loan B Facility, 2021 Incremental Term Loan B Facility, and a Revolving Credit Facility, and are subject to financial covenants and a minimum liquidity covenant[130](index=130&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk) - Interest rate swap agreements are used to hedge a portion of the interest rate risk under the floating-rate Senior Credit Facilities; as of December 31, 2022, approximately **35% of LIBOR** was fixed at approximately **1.208%**[137](index=137&type=chunk) - The Senior Notes mature on May 15, 2026, and bear interest at a fixed annual rate of **3.500%**[139](index=139&type=chunk) Contractual Maturities of Loans and Borrowings (USD millions) | Item | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | On demand or within one year | 118.6 | 107.3 | | After one year but within two years | 66.6 | 53.3 | | After two years but within five years | 1,834.4 | 2,641.4 | | **Total** | **2,019.6** | **2,802.0** | [Employee Benefits](index=50&type=section&id=Employee%20Benefits) For the year ended December 31, 2022, total employee benefits expense was $433.6 million, including $13.8 million in share-based compensation, with the company operating share incentive plans and retirement plans to attract and motivate employees - Total employee benefits expense for the year ended December 31, 2022, was **$433.6 million**, including share-based compensation expense of **$13.8 million**[150](index=150&type=chunk) - The company has a 2012 Share Incentive Plan (which expired on October 26, 2022) and a 2022 Share Incentive Plan (valid for 10 years from January 5, 2023)[151](index=151&type=chunk) - **14,904,680 share options** were granted in 2022, with an exercise price at a premium of approximately **10%** to the company's closing share price on the grant date[153](index=153&type=chunk)[157](index=157&type=chunk) Changes in Share Options (number of shares) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Outstanding at January 1 | 87,157,670 | 81,010,536 | | Granted during the year | 14,904,680 | 14,348,844 | | Exercised during the year | (1,071,467) | (23,278) | | Forfeited during the year | (4,264,739) | (8,178,432) | | **Outstanding at December 31** | **96,726,144** | **87,157,670** | | Exercisable at December 31 | 63,064,472 | 54,851,124 | - A Belgian subsidiary of the group contributes to a pre-retirement defined benefit retirement plan for certain eligible employees; a U.S. subsidiary offers a defined contribution 401(k) retirement plan[164](index=164&type=chunk)[166](index=166&type=chunk) [Trade and Other Payables](index=55&type=section&id=Trade%20and%20Other%20Payables) As of December 31, 2022, total trade and other payables increased to $778.5 million from $529.0 million in 2021, including trade payables of $583.3 million and accrued restructuring expenses of $7.2 million Trade and Other Payables (USD millions) | Item | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Trade Payables | 583.3 | 355.0 | | Accrued Restructuring Expenses | 7.2 | 16.0 | | Other Payables and Accrued Expenses | 173.4 | 146.5 | | Other Taxes Payable | 14.5 | 11.5 | | **Total** | **778.5** | **529.0** | Ageing Analysis of Trade Payables (USD millions) | Ageing | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Current | 456.7 | 264.9 | | 0 to 30 Days Overdue | 18.3 | 10.7 | | Over 30 Days Overdue | 2.7 | 2.2 | | **Total** | **477.8** | **277.8** | [Contingent Liabilities](index=55&type=section&id=Contingent%20Liabilities) The group faces various lawsuits and legal proceedings in its ordinary course of business, assessing the likelihood of future outflows and recognizing provisions when reliable estimates can be made, with no significant litigation resolved in 2022 or 2021 - The group faces various forms of lawsuits and legal proceedings in the ordinary course of its business[168](index=168&type=chunk) - Provisions for other liabilities of uncertain timing or amount are recognized when the group has a legal or constructive obligation as a result of past events, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made[76](index=76&type=chunk) - For the years ended December 31, 2022, and December 31, 2021, the group did not resolve any significant litigation[168](index=168&type=chunk) [Leases](index=55&type=section&id=Leases) As of December 31, 2022, right-of-use assets had a carrying value of $314.1 million, with additions of $100.8 million and amortization expense of $118.2 million during the year, and total future minimum contractual lease payments of $424.3 million Changes in Right-of-Use Assets (USD millions) | Item | Real Estate | Other | Total | | :--- | :--- | :--- | :--- | | Right-of-use asset additions (2022) | 97.9 | 2.9 | 100.8 | | Right-of-use asset amortization expense (2022) | 115.3 | 2.8 | 118.2 | | Right-of-use asset impairment expense (2022) | 1.7 | 0.1 | 1.8 | | **Right-of-use asset carrying value (December 31, 2022)** | **308.7** | **5.4** | **314.1** | - For the year ended December 31, 2022, the group recognized impairment charges totaling **$4.0 million** related to right-of-use assets of Russian retail stores[171](index=171&type=chunk) - For the year ended December 31, 2022, the group recognized impairment reversals totaling **$2.2 million** for right-of-use assets of company-owned retail stores[171](index=171&type=chunk) Future Minimum Contractual Payments for Lease Liabilities (USD millions) | Term | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Within one year | 134.8 | 147.5 | | After one year but within two years | 97.7 | 113.4 | | After two years but within five years | 142.5 | 162.7 | | More than five years | 49.3 | 58.2 | | **Total** | **424.3** | **481.9** | - For the year ended December 31, 2022, lease costs for short-term, low-value, and variable lease payments were **$42.6 million**, net of rent concessions of **$4.1 million**[175](index=175&type=chunk)[181](index=181&type=chunk) Total Lease Cash Outflows (USD millions) | Item | 2022 | | :--- | :--- | | Principal payments for lease liabilities | 131.3 | | Interest paid on lease liabilities | 18.9 | | Lease expenses – short-term, variable, and low-value leases | 42.6 | | Contingent rent | 32.0 | | **Total Cash Outflows** | **224.8** | [Income Tax](index=58&type=section&id=Income%20Tax) For the year ended December 31, 2022, the group recorded an income tax expense of $24.3 million, a significant shift from a $56.2 million credit in 2021, with the effective tax rate decreasing to 6.7% from 171.8%, influenced by deferred tax asset changes and profit mix Tax in Consolidated Income Statement (USD millions) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Total Current Tax Expense | (62.8) | (56.0) | | Total Deferred Tax Credit | 38.5 | 112.2 | | **Total Income Tax (Expense) Credit** | **(24.3)** | **56.2** | - For the year ended December 31, 2022, an income tax expense of **$24.3 million** was recorded, primarily due to the reported profit before income tax of **$362.6 million**, and tax effects from changes in unrecognized deferred tax assets and the mix of profits between high and low tax jurisdictions[183](index=183&type=chunk) - The group's consolidated effective tax rate for the years ended December 31, 2022, and December 31, 2021, was **6.7%** and **171.8%**, respectively[185](index=185&type=chunk) - In 2022, the group began recognizing certain previously unrecognized deferred tax assets of **$104.2 million**[183](index=183&type=chunk) Deferred Tax Assets and Liabilities (USD millions) | Item | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Total Deferred Tax Assets | 173.6 | 124.2 | | Total Deferred Tax Liabilities | (161.7) | (140.4) | | **Net Deferred Tax Liabilities** | **11.9** | **(16.2)** | Unrecognized Deferred Tax Assets (USD millions) | Item | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Tax Losses | 195.7 | 474.2 | | Other Deferred Tax Assets | 94.8 | 224.5 | | **Balance at Year-End** | **290.5** | **698.7** | - Unrecognized deferred tax liabilities related to investments in subsidiaries were **$55.4 million** and **$45.5 million** as of December 31, 2022, and December 31, 2021, respectively[194](index=194&type=chunk) [Finance Income and Finance Costs](index=63&type=section&id=Finance%20Income%20and%20Finance%20Costs) For the year ended December 31, 2022, total finance income was $8.8 million and total finance costs were $138.3 million, resulting in net finance costs of $129.5 million, primarily driven by interest expense on loans and borrowings, lease liabilities, and fair value changes of put options Summary of Finance Income and Finance Costs (USD millions) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Interest Income | 8.8 | 3.6 | | **Total Finance Income** | **8.8** | **3.6** | | Interest Expense on Loans and Borrowings | (90.6) | (99.7) | | Loss on Extinguishment of Loans and Borrowings | — | (30.1) | | Amortization of Deferred Financing Costs | (4.8) | (6.6) | | Interest Expense on Lease Liabilities | (18.9) | (21.5) | | Fair Value Change

Financial Performance - For the three months ended September 30, 2022, the group's net sales showed a continuous improvement due to the easing of travel restrictions, resulting in a recovery in the tourism sector [5]. - The impact of the COVID-19 pandemic on the group's business and financial performance has lessened compared to previous periods, attributed to effective vaccination rollouts and government measures [5]. - Financial performance comparisons are made with the periods ended September 30, 2021, and September 30, 2019, to assess the impact of the pandemic [5]. - The financial results for the three months ended September 30, 2022, are compared with the same period in 2021 and 2019 to provide context for performance evaluation [6]. - Net sales for the three months ended September 30, 2022, were $790.9 million, representing a 42.0% increase compared to $557.1 million in the same period of 2021 [7]. - Operating profit for the same period was $121.8 million, a significant increase of 140.0% from $50.7 million year-over-year [7]. - Adjusted net income reached $64.9 million, up 646.5% from $8.7 million in the prior year [7]. - Adjusted EBITDA for the quarter was $134.1 million, reflecting an 85.6% increase compared to $72.2 million in the previous year [7]. - The adjusted EBITDA margin improved to 17.0%, up from 13.0% in the same quarter last year [7]. - Basic and diluted earnings per share were $0.040, compared to a loss of $0.004 per share in the prior year, indicating a significant turnaround [7]. - The company reported a profit attributable to equity holders of $58.2 million, compared to a loss of $5.2 million in the same period last year [7]. - The operating profit, excluding non-cash impairment charges and restructuring costs, was $119.8 million, up 107.7% from $57.7 million year-over-year [7]. - The company experienced a notable increase in adjusted EBITDA, which is a key indicator of operational performance, highlighting strong growth in profitability [7]. Sales and Revenue Growth - For the three months ended September 30, 2022, net sales were $790.9 million, an increase of 42.0% compared to $557.1 million for the same period in 2021 (a 54.7% increase on a constant currency basis) [8]. - Net sales for the nine months ended September 30, 2022, were $2,061.1 million, representing a 51.9% increase compared to $1,356.6 million in the same period of 2021 [10]. - The company reported a significant increase in adjusted basic and diluted earnings per share to $0.103, compared to a loss of $0.066 in the prior year [10]. - The company experienced a 61.9% increase in net sales when excluding foreign exchange impacts [10]. - The total net sales for the nine months ended September 30, 2022, amounted to $2,061.1 million, a 51.9% increase compared to $1,356.6 million in the same period of 2021 [90]. - Travel product sales accounted for 68.1% of total sales, amounting to $538.6 million, a 59.9% increase from 2021 [32]. - Non-travel product sales reached $252.3 million, representing a 12.8% increase year-over-year [32]. - The core brand Samsonite's sales increased by $155.2 million or 59.8%, with a total of $414.8 million in 2022 [30]. - Tumi brand sales grew by $30.4 million or 22.5%, reaching $165.3 million in 2022 [30]. - American Tourister brand sales increased by $45.4 million or 45.2%, totaling $145.6 million in 2022 [30]. Cost Management and Expenses - Cash generated from operating activities for the three months ended September 30, 2022, was $117.9 million, down from $157.1 million in the same period last year [8]. - Marketing expenses increased to $44.8 million for the three months ended September 30, 2022, up 108.5% from $21.5 million in the same period last year, representing 5.7% of net sales [8]. - Distribution expenses increased by $30.7 million or 17.2% to $209.7 million, representing 26.5% of net sales, an improvement from 32.1% in the prior year [50]. - General and administrative expenses increased by $6.2 million or 11.6% to $59.8 million, accounting for 7.6% of net sales, down from 9.6% in the previous year [52]. - The company implemented cost-saving measures and restructuring actions to mitigate the impact of the COVID-19 pandemic on profitability and cash flow [58]. - The company recorded a net financial expense of $35.6 million, up 18.5% from $30.0 million in the prior year, primarily due to increased foreign exchange losses and interest expenses [62]. - The company’s financial expenses for the nine months ended September 30, 2022, were $103.3 million, down from $135.2 million in the same period of 2021, indicating a reduction of approximately 24% [16]. Strategic Initiatives and Future Outlook - The company plans to increase marketing investments for the remainder of 2022 to drive net sales growth and capitalize on the ongoing recovery in the travel industry [8]. - The company plans to increase capital expenditures for projects delayed during the COVID-19 pandemic and for key strategic initiatives entering 2023 [81]. - The company aims to expand its retail presence and invest in European production facilities to support new product innovations [141]. - The company believes it will continue to effectively navigate the current environment based on its past experiences in dealing with tourism disruptions [5]. - The company anticipates continued growth and improvement in financial performance, driven by market opportunities and strategic initiatives [14]. Market and Regional Performance - North America sales increased by $81.7 million or 38.8% year-over-year, totaling $292.3 million in 2022 [28]. - Asia saw a significant sales increase of $90.4 million or 52.0%, reaching $264.4 million in 2022 [27]. - European sales rose by $66.2 million or 52.1%, totaling $193.2 million in 2022 [28]. - The sales in the U.S. for the same period rose by $69.5 million or 33.9%, and by $73.7 million or 36.7% when excluding Speck sales [40]. - The sales in India rose by $26.1 million or 71.0% year-over-year, primarily due to the lifting of travel restrictions [100]. - The sales in Australia surged by $12.9 million or 377.3% year-over-year following the end of lockdowns [43]. - The sales in Canada increased by $8.0 million or 79.9% year-over-year, reflecting the market's reopening [40]. Debt and Financial Position - As of September 30, 2022, the company had cash and cash equivalents of $801.0 million and total outstanding financial debt of $2,198.8 million, resulting in net debt of $1,397.9 million [8]. - The company repaid $535.0 million of outstanding borrowings under its senior credit facility during the nine months ended September 30, 2022 [11]. - The company established a credit agreement on April 25, 2018, which includes a total of $800 million in A Term Loans, $665 million in B Term Loans, $495.5 million in Incremental B Term Loans, and $850 million in Revolving Credit Facilities [146]. - The company must maintain a total net leverage ratio not exceeding 4.50:1.00 and a cash interest coverage ratio of no less than 3.00:1.00 as part of its financial covenants [151]. - The company complied with the minimum liquidity covenant of $100 million under the Incremental B Term Loans as of September 30, 2022 [152].

Samsonite International S.A. 新秀麗國際有限公司 Stock Code 股份代號 1910 ２０２２ I N T E R I M R E P O R T 中 期 報 告 ams on OUR RESPONSIBLE JOURNEY WE continue to be encouraged by Samsonite's progress in the first half of 2022. We maintained the positive sales momentum and financial performance from the second half of 2021 to achieve a great set of results for the six months ended June 30, 2022. As we look to the second half of 2022, we are confident in our ability to capitalize on the continued recovery in global travel fro ...