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 ...

Financial Performance - The group's net sales for the three months ended March 31, 2022, were $573.6 million, representing a 61.7% increase compared to $354.7 million for the same period in 2021[6]. - Operating profit for the same period was $58.1 million, a significant recovery from an operating loss of $47.0 million in the previous year[6]. - Adjusted EBITDA for the first quarter of 2022 was $73.2 million, compared to a loss of $28.5 million in the same quarter of 2021[6]. - The adjusted EBITDA margin improved to 12.8% from a negative 8.0% in the prior year[6]. - The group reported a net profit of $21.2 million for the first quarter of 2022, recovering from a net loss of $71.2 million in the same period last year[6]. - Earnings per share for the first quarter were $0.011, compared to a loss per share of $0.051 in the previous year[6]. - Total comprehensive income for the three months ended March 31, 2022, was $45.1 million, compared to a total comprehensive loss of $53.4 million in the prior year[15]. - The company reported a net income attributable to equity holders of $16.4 million for the three months ended March 31, 2022, compared to a loss of $72.7 million in the same period last year[124]. - The adjusted net income for the three months ended March 31, 2022, was $23.3 million, improving from a loss of $67.4 million in the same period of 2021[124]. Sales and Revenue Trends - The sales trend showed continuous improvement, particularly in February and March 2022, as travel restrictions eased in various countries[5]. - The consolidated net sales for the three months ended March 31, 2022, increased by 68.7% compared to the same period in 2021 after excluding sales from Speck[7]. - Travel product sales increased by $176.6 million or 101.6% year-over-year, driven by the rebound in domestic and regional travel, particularly in North America and Europe[35]. - Non-travel product sales rose by $42.4 million or 23.4%, with a 34.3% increase when excluding the impact of the sale of Speck[35]. - DTC channel sales net amount increased by $81.7 million or 70.2% for the three months ended March 31, 2022, compared to the same period in 2021[156]. - Wholesale channel sales net amount increased by $137.2 million or 57.6% for the three months ended March 31, 2022, compared to the same period in 2021[155]. - The total sales revenue reported in Hong Kong increased by $3.0 million or 24.1% year-over-year, with a 24.4% increase when adjusted for constant currency[163]. Cost Management and Expenses - The company implemented measures to enhance liquidity and reduce operating expenses to mitigate the impact of the COVID-19 pandemic on sales[5]. - Marketing expenses rose by 126.1% to $24.1 million, representing 4.2% of net sales, up from 3.0% in the same period last year[7]. - The company recorded a non-cash impairment charge of $0.8 million related to leasehold assets for the three months ended March 31, 2022, due to the assessment of its retail stores in Russia[58]. - Restructuring costs totaled $0.2 million for the three months ended March 31, 2022, down from $3.8 million in the same period last year, reflecting cost-cutting measures taken in response to the pandemic[60]. - The company reported a significant reduction in operating expenses as part of its strategy to enhance liquidity and resilience against the impacts of the COVID-19 pandemic[138]. Inventory and Supply Chain - The company experienced a delay in inventory replenishment, particularly in North America, which impacted the recovery pace in early 2022[5]. - Inventory increased from $348.4 million in December 2021 to $406.2 million in March 2022, an increase of about 16.6%[16]. - The company faced inventory replenishment delays, particularly in North America, which slowed the recovery pace in Q1 2022[139]. Market and Geographic Performance - North America accounted for $215.8 million or 37.6% of total net sales, showing a significant increase of 69.6% from $127.2 million in the previous year[30]. - The Asia region's net sales were $185.7 million, which is 32.4% of total sales, reflecting an 18.8% increase from $156.4 million in the same quarter of 2021[30]. - The European market saw a remarkable growth of 145.5%, with net sales rising to $126.5 million from $51.5 million year-over-year[30]. - The company has temporarily ceased all business activities in Russia since March 14, 2022, due to the Ukraine war, impacting overall sales performance[27]. Financial Position and Liquidity - Cash and cash equivalents as of March 31, 2022, were $1,057.0 million, with net debt increasing to $1,524.8 million from $1,477.2 million at the end of 2021[8]. - The company believes its existing cash and estimated cash flows will be sufficient to meet operational and capital needs at least until May 31, 2023[25]. - The company has a minimum liquidity covenant of $500.0 million that remains effective during the suspension period of financial covenants[24]. - The company continues to focus on strict control of capital expenditures, marketing activities, and discretionary spending to preserve cash[126]. Future Outlook - The company plans to increase marketing investments for the remainder of 2022 to capitalize on the ongoing recovery in the travel industry[7]. - The company continues to focus on streamlining operations to align with future development needs[5]. - The company anticipates ongoing recovery in sales due to the easing of travel restrictions and social distancing measures in various countries[26].

Financial Performance - Samsonite's performance improved significantly in 2021 due to increased vaccination rates and the easing of social-distancing measures, leading to a stronger financial position[2]. - The financial highlights indicate a disciplined approach to cost control and cash management, which supports long-term growth and shareholder value creation[2]. - The Group has significant liquidity of US$1.5 billion as of December 31, 2021, positioning it strongly to navigate ongoing COVID-19 impacts and invest for long-term growth[7]. - Net sales for the year ended December 31, 2021, reached $2,020.8 million, representing a 31.5% increase compared to $1,536.7 million in 2020[23]. - Operating profit for the year was $132.7 million, a significant recovery from an operating loss of $1,266.2 million in the previous year[23]. - Profit attributable to equity holders was $14.3 million, compared to a loss of $1,277.7 million in 2020[23]. - Adjusted EBITDA for the year was $182.3 million, recovering from a loss of $218.8 million in 2020[23]. - The Group's net sales recovery accelerated in the second half of 2021 due to the rollout of vaccines and the recovery in travel[18]. - The Group's consolidated net sales increased by US$538.3 million, or 36.3%, for the year ended December 31, 2021, when excluding the net sales of Speck[24]. - The Group recorded a gross profit margin of 54.5% for the year ended December 31, 2021, up from 46.0% in the previous year, attributed to price increases and lower promotional discounts[24]. Strategic Initiatives - The company aims to enhance shareholder value through sustainable revenue and earnings growth, focusing on increasing the proportion of net sales from direct-to-consumer e-commerce channels[6]. - Samsonite plans to invest in research and development to create lighter and stronger materials, advanced manufacturing processes, and innovative functionalities that benefit consumers[6]. - The company is committed to extending its brands into new markets and deepening penetration in existing channels through its regional management structure and distribution expertise[6]. - Samsonite's strategy includes significant investment in marketing to support its brands and initiatives[6]. - The company emphasizes its environmental, social, and governance (ESG) philosophy as part of its core business practices, aiming to lead the industry in sustainability[6]. - The Group intends to prudently increase investment in capital expenditures and software for sustainable long-term growth[7]. - The company aims to enhance its operational performance and underlying trends through strategic adjustments and cost management initiatives[23]. Market Recovery and Challenges - The Group experienced improved sales trends as government restrictions were loosened, contributing to a recovery in demand[21]. - The Group anticipates that the ongoing recovery in travel will provide opportunities for growth and market share expansion[7]. - The outlook for 2022 is mixed, with a decline in net sales for the first two months of 2022 compared to the same period in 2019 being about in line with the 28.0% decline in Q4 2021[47]. - Despite improvements in 2021, the outlook for 2022 remains mixed due to the impact of the Omicron variant, with sales in the first two months of 2022 showing a decline compared to 2019[50]. - The company has suspended all commercial activities in Russia, closing 37 retail stores and halting product imports, while donating over 10,000 bags to support Ukrainian refugees and contributing $1.0 million for humanitarian aid[50]. - The Group's net sales decline narrowed to 30.9% in Q4 2021 compared to Q4 2019, with a constant currency decline of 30.2%[99]. Product and Brand Performance - The Group operates under well-known brands including Samsonite, Tumi, and American Tourister, among others, catering to various consumer price points[6]. - The Group's core brands recorded year-on-year net sales increases as the impact of COVID-19 moderated due to vaccine rollouts and recovery in travel[124]. - Successful product launches in 2021 included the Magnum Eco, Proxis, and Lite Box suitcase lines, with a focus on sustainable materials[69]. - The upcoming Tumi Alpha Bravo collection will feature over two dozen new styles made from recycled materials, receiving positive feedback from consumers and media[69]. - The Elevation™ Plus collection is expected to meet traveler demand for functionality and sustainability, featuring a high-performance polypropylene exterior and 100% recycled PET bottle lining[70]. Cash Management and Debt - The Group generated US$387.1 million of cash from operating activities during the year ended December 31, 2021, compared to US$114.2 million used in the previous year[31]. - As of December 31, 2021, the Group had cash and cash equivalents of US$1,324.8 million and outstanding financial debt of US$2,802.0 million, resulting in a net debt position of US$1,477.2 million[31]. - Total cash generation was US$199.8 million during the year ended December 31, 2021, compared to total cash burn of (US$360.1) million in the previous year[31]. - The Group prepaid US$370.0 million of borrowings during the year ended December 31, 2021[93]. - The Group's liquidity may not be sufficient, and there is a possibility of needing additional financing[97]. E-commerce and Sales Channels - Direct-to-consumer (DTC) sales represented 38.7% of total net sales in 2021, up from 31.0% in 2020[140]. - E-commerce channels accounted for US$430.8 million of net sales, representing a year-on-year increase of US$91.1 million, or 26.8% (+24.9% constant currency)[148]. - The Group's net sales in the wholesale channel increased by US$280.7 million, or 29.3% (+27.8% constant currency), for the year ended December 31, 2021 compared to the previous year[144]. - Total DTC e-commerce net sales increased by US$29.0 million, or 13.5% (+11.8% constant currency), to US$243.6 million for the year ended December 31, 2021[147].

| --- | --- | --- | --- | |--------------------------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | since 1910 YOUR EMPOWERING | | | | | INTERIM REPORT 中期報告 2021 | | | | | Samsonite International S.A. 新秀麗國際有限公司 | | | | Stock Code 股份代號 1910 SAMSONITE made very encouraging progress during the first half of 2021, particularly during the second quarter. With increased vaccination rates, relaxation of social-distancing measures and the re ...

Company Strategy and Positioning - Samsonite is well-positioned for long-term growth and shareholder value creation as global travel resumes[2] - The company aims to increase shareholder value through sustainable revenue and earnings growth and free cash flow generation[10] - Samsonite's strategy includes increasing the proportion of net sales from direct-to-consumer e-commerce channels[10] - The company continues to invest in research and development for lighter and stronger materials and innovative functionalities[10] - Samsonite's diverse brand portfolio targets consumers across all price points in both travel and non-travel categories[10] - The company leverages its regional management structure and marketing expertise to expand into new markets[10] - Samsonite emphasizes its commitment to environmental, social, and governance (ESG) practices through its "Our Responsible Journey" initiative[10] - The company has a rich heritage of over 110 years in the luggage industry, operating under multiple well-known brands[10] - Samsonite's organizational responsiveness and strong brand loyalty contribute to its competitive advantage[2] - The company focuses on targeted investments in marketing to support brand initiatives and growth[10] Financial Performance and Impact of COVID-19 - For the year ended December 31, 2020, net sales decreased by 57.8% to $1,536.7 million compared to $3,638.8 million in 2019[27] - Operating loss for the year was $1,266.2 million, a significant decline from an operating profit of $283.0 million in 2019[27] - The profit attributable to equity holders for the year was a loss of $1,277.7 million, compared to a profit of $132.5 million in the previous year[27] - Adjusted EBITDA for the year was a loss of $218.8 million, down from a profit of $492.2 million in 2019[27] - The adjusted EBITDA margin for the year was -14.2%, compared to a positive margin of 13.5% in 2019[27] - The COVID-19 pandemic led to temporary closures of retail stores and a substantial reduction in consumer travel and discretionary spending, affecting demand for the company's products[25] - The Group's financial condition and results of operations have been adversely affected by the pandemic, with expectations of a prolonged recovery[106] - The Group's existing cash and estimated cash flows are expected to meet operational and capital requirements at least through March 31, 2022[106] Cost Management and Restructuring - The Company has approximately US$1.5 billion in liquidity as of December 31, 2020, with a significant reduction in cash burn[12] - The Group is focused on maintaining a lower cost structure as sales recover from the impacts of COVID-19[11] - A recovery plan is in place to ensure a cost-effective and efficient re-opening, aiming to improve profit margins and market share[11] - The company implemented aggressive cost-cutting measures in response to the COVID-19 pandemic, which significantly impacted its business operations[25] - The Group has implemented measures to reduce its fixed cost base, resulting in estimated annualized fixed cost savings of approximately US$200.0 million[30] - The Group recognized total restructuring charges of US$63.0 million during the year ended December 31, 2020, which included US$8.5 million in cost of sales[30] - The Group achieved cash savings of approximately US$670 million through cost-cutting measures, significantly reducing total cash burn from US$166.7 million in Q2 2020 to US$3.6 million in Q4 2020[71] Liquidity and Financial Flexibility - The Group ended the year with liquidity of approximately US$1.5 billion, exceeding the US$500 million minimum liquidity requirement[48] - As of December 31, 2020, the Group had cash and cash equivalents of US$1,495.0 million and outstanding financial debt of US$3,230.5 million, resulting in a net debt position of US$1,735.5 million[31] - The Group's total liquidity as of December 31, 2020 was US$1,518.3 million, ensuring compliance with the US$500.0 million minimum liquidity requirement[98] - The Group borrowed US$810.3 million under its Amended Revolving Credit Facility on March 20, 2020[99] Sales Performance and Market Trends - The Group's net sales decreased by 26.1% year-on-year in Q1 2020 and further declined by 77.9% in Q2 2020 due to COVID-19 impacts[42] - The Group's core brands, Samsonite, Tumi, and American Tourister, experienced significant sales declines of 59.1%, 58.1%, and 62.2% year-on-year, respectively, while non-travel brands like Speck and Gregory saw smaller declines of 22.2% and 27.5%[67] - The net sales decline was 58.1% year-on-year in Q4 2020 and 64.7% in Q3 2020, with a further decrease of approximately 53% year-on-year in the first two months of 2021 due to COVID-19[80][84] - The Group's total net sales for the year ended December 31, 2020 were US$1,536.7 million, a decrease of 57.8% compared to US$3,638.8 million in 2019[141] - The Group's overall performance was significantly impacted by the COVID-19 pandemic, affecting all product categories and regions[145] E-commerce and Digital Strategy - Net sales through e-commerce channels increased to 22.1% of total net sales in 2020, up from 16.4% in 2019, with direct-to-consumer e-commerce net sales rising to 14.0% from 10.4%[77][79] - The company continues to invest in enhancing its digital presence and integrating e-commerce with physical channels[77][79] - The Group's strategic decision in 2019 to reduce third-party brand sales on its e-commerce website impacted DTC e-commerce sales[179] Sustainability and Innovation - The company plans to launch the Magnum Eco hard-shell luggage collection in the first half of 2021, which is made from 100% post-consumer recycled material[76][78] - The company is committed to sustainability and aims to lead the luggage industry in this area with its new product launches[76][78] - The company plans to focus on innovation and sustainability, including a suitcase repurposing and recycling initiative[125]

COVID-19 Impact - Samsonite demonstrated remarkable agility in adapting its organization and cost base in response to the unprecedented challenges posed by the COVID-19 pandemic[2]. - The recovery from the impacts of the COVID-19 pandemic is expected to be protracted compared to prior downturns, but the long-term growth prospects for travel and tourism remain optimistic[2]. - The pandemic has significantly negatively impacted the Group's performance for the first six months of 2020, with adverse effects expected on full-year 2020 results[31]. - The Company expects the recovery from the pandemic to take longer than previous disruptions, but believes it can effectively manage through the current environment[16]. - The Group's overall performance was adversely affected by COVID-19, leading to declines across all brands and product categories[132][152]. - The impacts of COVID-19 have significantly reduced demand for the Group's products due to store closures and decreased consumer spending[109]. - The Group anticipates a prolonged recovery period due to the impacts of COVID-19, despite having sufficient liquidity to navigate the current environment[118]. Financial Performance - For the six months ended June 30, 2020, net sales decreased by 54.3% to $802.3 million compared to $1,755.7 million in the same period of 2019[35]. - The operating loss for the period was $1,062.9 million, a significant decline from an operating profit of $124.0 million in the prior year[35]. - Profit attributable to equity holders for the period was a loss of $974.0 million, compared to a profit of $49.1 million in the same period of 2019[35]. - Adjusted EBITDA for the first half of 2020 was a loss of $122.9 million, down from a profit of $213.5 million in the same period of 2019[35]. - The adjusted EBITDA margin fell to -15.3% from 12.2% in the previous year[35]. - The Group incurred a loss of $975.9 million for the six months ended June 30, 2020, compared to a profit of $58.3 million for the same period in the previous year, primarily due to the negative impacts from the COVID-19 pandemic[47]. - The Group's net sales decreased by US$953.4 million, or 54.3% year-on-year for the first half of 2020 due to the impacts of COVID-19[108]. Cost Management - Significant actions have been taken to preserve cash and implement permanent cost-saving measures to reduce the fixed cost base[16]. - The Company continues to implement aggressive cost-cutting measures to navigate current and anticipated impacts from the pandemic[31]. - The Group expects to achieve close to US$600 million in cash savings through aggressive reductions in SG&A expenses, a freeze on capital expenditures, and stringent management of product purchases and working capital[55]. - The Group implemented cost-saving initiatives including permanent headcount reductions and significant reductions in capital expenditures and marketing expenses[115]. - No cash distribution will be paid to shareholders in 2020 as part of the cost-saving measures[115]. Liquidity and Financing - The Company has approximately US$1.6 billion in liquidity as of June 30, 2020, providing confidence to navigate challenges from the COVID-19 pandemic[16]. - On March 20, 2020, the Company borrowed US$810.3 million under its amended revolving credit facility to ensure access to liquidity amid the pandemic[50]. - The Group entered into a Third Amended Credit Agreement on April 29, 2020, to suspend the requirement to test financial covenants from the beginning of Q2 2020 through the end of Q2 2021[50]. - A Fourth Amended Credit Agreement was established on May 7, 2020, providing an additional term loan B facility with an aggregate principal amount of US$600.0 million to enhance financial flexibility[50]. - The Group's liquidity was enhanced by increasing the maximum borrowings under its revolving credit facility by US$200 million to US$850 million[114]. Sales Performance - The Group's net sales decreased by US$953.4 million, or 54.3%, for the six months ended June 30, 2020, compared to the same period in 2019[120]. - The travel product category experienced a significant decrease in net sales of US$614.5 million, or 58.5%, compared to the prior year[152]. - Non-travel category net sales decreased by US$338.9 million, or 48.1%, with business products down by US$160.4 million, or 49.4%[152]. - The Group's direct-to-consumer (DTC) e-commerce channel saw a net sales decrease of 35.6% year-on-year, compared to declines of 60.2% and 53.3% in DTC retail and wholesale channels, respectively[74]. - Net sales in North America for the first half of 2020 were US$321.0 million, representing 40.0% of total net sales, a decrease of 50.9% compared to 2019[125]. Strategic Initiatives - The company aims to increase shareholder value through sustainable revenue and earnings growth, focusing on free cash flow generation[12]. - Samsonite plans to increase the proportion of net sales from the direct-to-consumer channel by growing e-commerce net sales and enhancing its retail presence[13]. - The company will continue to invest in research and development to create lighter and stronger materials, advanced manufacturing processes, and innovative designs[13]. - Samsonite's strategy includes leveraging its regional management structure and marketing expertise to expand into new markets and deepen penetration in existing channels[13]. - The company is committed to incorporating its environmental, social, and governance (ESG) philosophy into its core business practices[13].