Samsonite International S A : Interim Results Announcement for the Six Months Ended June 30, 2019

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

SAMSONITE INTERNATIONAL S.A.

13-15 avenue de la Liberté, L-1931 Luxembourg

R.C.S. LUXEMBOURG: B 159.469

(Incorporated in Luxembourg with limited liability)

(Stock code: 1910)

Interim Results Announcement for the

Six Months Ended June 30, 2019

1

Disclaimer

Non-IFRS Measures

The Company has presented certain non-IFRS(1) measures in the financial highlights section, Chairman's Statement, Chief Executive Officer's Statement and Management Discussion and Analysis sections below because each of these measures provides additional information that management believes is useful in gaining a more complete understanding of the Group's operational performance and of the trends impacting its business to securities analysts, investors and other interested parties. These non-IFRS financial measures, as calculated herein, may not be comparable to similarly named measures used by other companies, and should not be considered comparable to IFRS measures. Non-IFRS measures have limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, an analysis of the Group's financial results as reported under IFRS.

Forward-Looking Statements

This document contains forward-looking statements. Forward-looking statements reflect the Group's current views with respect to future events and performance. These statements may discuss, among other things, the Group's net sales, operating profit, Adjusted Net Income, Adjusted EBITDA(2), Adjusted EBITDA margin, cash flow, liquidity and capital resources, impairments, growth, strategies, plans, achievements, distributions, organizational structure, future store openings, market opportunities and general market and industry conditions. The Group generally identifies forward-looking statements by words such as "expect", "seek", "believe", "plan", "intend", "estimate", "project", "anticipate", "may", "will", "would" and "could" or similar words or statements. Forward-looking statements are based on beliefs and assumptions made by management using currently available information. These statements are only predictions and are not guarantees of future performance, actions or events. Forward-looking statements are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, or if management's underlying beliefs and assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. The Company's shareholders, potential investors and other interested parties should not place undue reliance on these forward-looking statements. The Group expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable securities laws and regulations.

Rounding

Certain numbers presented in this document have been rounded up or down. There may therefore be discrepancies between the actual totals of the individual amounts in the tables and the totals shown, between the numbers in the tables and the numbers given in the corresponding analyses in the text of this document and between numbers in this document and other publicly available documents. All percentages and key figures were calculated using the underlying data in whole US Dollars.

Notes

1. International Financial Reporting Standards as issued by the International Accounting Standards Board.
2. Earnings before interest, taxes, depreciation and amortization.

2

The Board of Directors of Samsonite International S.A. (the "Company"), together with its consolidated subsidiaries (the "Group"), is pleased to announce the consolidated interim results of the Group for the six months ended June 30, 2019 together with comparative figures for the six months ended June 30, 2018. The following financial information, including comparative figures, has been prepared in accordance with IFRS as issued by the International Accounting Standards Board ("IASB").

On January 1, 2019, the Group adopted IFRS 16, Leases ("IFRS 16") (see note 3(b) Changes in Accounting Policies in the Notes to the Consolidated Interim Financial Statements). The Group has applied IFRS 16 using the modified retrospective approach and therefore the comparative information for the six months ended June 30, 2018 on the consolidated income statement and in the "as reported" column in the summary financial results table below has not been restated and continues to be reported under International Accounting Standards ("IAS") 17, Leases ("IAS 17") and IFRS Interpretations Committee ("IFRIC") 4, Determining whether an Arrangement Contains a Lease ("IFRIC 4"). The Group has included with respect to the six months ended June 30, 2018 an "as adjusted for IFRS 16" column in the summary financial results table below to present its financial performance for the six months ended June 30, 2018 on a comparable basis. Such amounts reflect management's best estimate based on its evaluation of the impact and are non-IFRS measures (see bridges in the Management Discussion and Analysis - Adjusted EBITDA and the Management Discussion and Analysis - Adjusted Net Income sections below).

Summary Financial Results

The following table sets forth summary financial results for the six months ended June 30, 2019 and June 30, 2018.

		Six months ended June 30,
						As adjusted
		As reported		for IFRS 16(1)			As reported
								Percentage		Percentage increase
(Expressed in millions of US Dollars, except per							increase		(decrease) excl. foreign
share data)		2019		2018		2018		(decrease)		currency effects(2)
Net sales	1,755.7	1,848.7	1,848.7	(5.0)%	(1.5)%
Operating profit(3)	124.0	201.8	208.3	(38.5)%	(36.9)%
Profit for the period(4)	58.3	77.9	70.4	(25.1)%	(23.8)%
Profit attributable to the equity holders(5)	49.1	67.8	60.4	(27.5)%	(26.0)%
Adjusted Net Income(6),(7)	97.0	119.8	111.2	(19.0)%	(17.7)%
Adjusted EBITDA(6),(8)	213.5	276.8	265.0	(22.9)%	(20.0)%
Adjusted EBITDA Margin(9)	12.2%	15.0%	14.3%
Basic earnings per share ("EPS")(10)	0.034	0.048	0.042	(27.8)%	(26.3)%
(Expressed in US Dollars per share)
Diluted EPS(10)	0.034	0.047	0.042	(27.2)%	(25.6)%
(Expressed in US Dollars per share)
Adjusted Basic EPS(11)
(Expressed in US Dollars per share)	0.068	0.084	0.078	(19.3)%	(18.0)%
Adjusted Diluted EPS(11)
(Expressed in US Dollars per share)	0.068	0.083	0.077	(18.6)%	(17.3)%

Notes

1. The "as adjusted for IFRS 16" column in the financial results above presents the Group's financial performance for the six months ended June 30, 2018 on a comparable basis. Such amounts reflect management's best estimate based on its evaluation of the impact and are non-IFRS measures.
2. Results stated on a constant currency basis, a non-IFRS measure, are calculated by applying the average exchange rate of the comparable period in the previous year to current period local currency results.
3. Operating profit for the six months ended June 30, 2019 decreased by US$44.7 million, or 21.5% (-19.6% constant currency), to US$163.6 million when excluding the Non-cash Impairment Charge (as defined below) and the costs to implement profit improvement initiatives during the six months ended June 30, 2019, compared to US$208.3 million for the same period in the previous year (as recast to adjust for IFRS 16 impacts). Operating profit, as reported, decreased by US$77.8 million, or 38.5% (-36.9% constant currency), year-on-year to US$124.0 million.
4. Profit for the period for the six months ended June 30, 2019 decreased by US$14.7 million, or 13.4% (-12.1% constant currency), to US$95.3 million when excluding the Non-cash Impairment Charge (as defined below) and the costs to implement profit improvement initiatives, net of the related tax impact during the six months ended June 30, 2019, compared to US$110.0 million for the same period in the previous year (as recast to adjust for IFRS 16 impacts) when excluding the non-cash charge of US$53.3 million and the related tax impact during the six months ended June 30, 2018 to write-off the deferred financing costs associated with the Original Senior Credit

3

Facilities (as defined below) in conjunction with the 2018 Refinancing (as described in further detail in the Indebtedness section of Management Discussion and Analysis below). Profit for the period, as reported, decreased by US$19.6 million, or 25.1% (-23.8% constant currency), year-on-year to US$58.3 million.

1. Profit attributable to the equity holders for the six months ended June 30, 2019 decreased by US$13.8 million, or 13.9% (-12.4% constant currency), to US$86.1 million when excluding the Non-cash Impairment Charge (as defined below) and the costs to implement profit improvement initiatives, net of the related tax impact during the six months ended June 30, 2019, compared to US$99.9 million for the six months ended June 30, 2018 (as recast to adjust for IFRS 16 impacts) when excluding the non-cash charge of US$53.3 million and the related tax impact during the six months ended June 30, 2018 to write-off the deferred financing costs associated with the Original Senior Credit Facilities (as defined below) in conjunction with the 2018 Refinancing (as described in further detail in the Indebtedness section of Management Discussion and Analysis below). Profit attributable to the equity holders, as reported, decreased by US$18.7 million, or 27.5% (-26.0% constant currency), from the same period in the previous year to US$49.1 million.
2. When comparing the reported results for Adjusted Net Income and Adjusted EBITDA (as defined below) for the six months ended June 30,
   2019 against the "as adjusted for IFRS 16" results for the six months ended June 30, 2018, the year-on-year changes were:
3. • Adjusted Net Income decreased by 12.8% (-11.3% constant currency); and
   • Adjusted EBITDA (as defined below) decreased by 19.4% (-16.4% constant currency).
4. Adjusted Net Income, a non-IFRS measure, eliminates the effect of a number of costs, charges and credits and certain other non-cash charges, along with their respective tax effects, that impact the Group's reported profit for the period, which the Group believes helps to give securities analysts, investors and other interested parties a better understanding of the Group's underlying financial performance. See "Management Discussion and Analysis - Adjusted Net Income" for a reconciliation from the Group's profit for the period to Adjusted Net Income.
5. Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), a non-IFRS measure, eliminates the effect of a number of costs, charges and credits and certain other non-cash charges. Adjusted EBITDA includes the lease interest and amortization expense as a result of the Group's adoption of IFRS 16 on January 1, 2019 (see further discussion in note 3(b) Changes in Accounting Policies in the Notes to the Consolidated Interim Financial Statements). The inclusion of IFRS 16 lease interest and amortization expense in Adjusted EBITDA allows the non-IFRS measure to be more comparable with the previous period's Adjusted EBITDA disclosure. The Group believes these measures provide additional information that is useful in gaining a more complete understanding of its operational performance and of the underlying trends of its business. See "Management Discussion and Analysis - Adjusted EBITDA" for a reconciliation from the Group's profit for the period to Adjusted EBITDA.
6. Adjusted EBITDA margin, a non-IFRS measure, is calculated by dividing Adjusted EBITDA by net sales.
7. Basic earnings per share ("Basic EPS") decreased by 27.8% to US$0.034 for the six months ended June 30, 2019 from US$0.048 for the six months ended June 30, 2018. Diluted earnings per share ("Diluted EPS") decreased by 27.2% to US$0.034 for the six months ended June 30, 2019 from US$0.047 for the six months ended June 30, 2018. Basic EPS, as adjusted, decreased by 14.2% to US$0.060 for the six months ended June 30, 2019 when excluding the Non-cash Impairment Charge (as defined below) and the costs to implement profit improvement initiatives, net of the related tax impact during the six months ended June 30, 2019, compared to US$0.070 for the same period in the previous year. Diluted EPS, as adjusted, decreased by 13.4% to US$0.060 for the six months ended June 30, 2019 when excluding the same charges and costs as noted above, compared to US$0.069 for the same period in the previous year. Basic EPS, as adjusted, and Diluted EPS, as adjusted, for the six months ended June 30, 2018 have been recast to adjust for IFRS 16 impacts and exclude the non-cash charge of US$53.3 million and the related tax impact to write-off the deferred financing costs associated with the Original Senior Credit Facilities (as defined below) in conjunction with the 2018 Refinancing (as described in further detail in the Indebtedness section of Management Discussion and Analysis below).
8. Adjusted Basic EPS and Adjusted Diluted EPS, both non-IFRS measures, are calculated by dividing Adjusted Net Income by the weighted average number of shares used in the Basic EPS and Diluted EPS calculations, respectively.

4

Financial Highlights

• Net sales for the six months ended June 30, 2019 decreased by US$27.8 million, or 1.5%, on a constant currency basis compared to the six months ended June 30, 2018. US Dollar reported net sales were US$1,755.7 million for the six months ended June 30, 2019, reflecting a decrease of US$93.0 million, or 5.0% compared to the corresponding period in the previous year. The net sales decline was due to headwinds faced by the business in the United States, China's business-to-business channel, South Korea and Chile, as well as due to unfavorable foreign currency impacts. Excluding the effects of these headwinds, the Group's constant currency net sales increased by US$34.6 million, or 3.5%, for the six months ended June 30, 2019 compared to the same period in the previous year, and US Dollar reported net sales decreased by US$19.5 million, or 2.0%, for the six months ended June 30, 2019 compared to the same period in the previous year.
• The Group spent US$103.1 million on marketing during the six months ended June 30, 2019 compared to US$114.3 million for the six months ended June 30, 2018, a decrease of US$11.3 million, or 9.8% (-6.8% constant currency). As a percentage of net sales, marketing expenses decreased by 30 basis points to 5.9% for the six months ended June 30, 2019 from 6.2% for the six months ended June 30, 2018.
• Based on an evaluation of loss-making stores in the six months ended June 30, 2019 and the anticipated closure of some of these stores, the Group recognized a non-cash impairment charge totaling US$29.7 million for the first half of 2019, comprised of the write-off of US$21.0 million of lease right-of-use assets associated with such stores that were recently recognized with the adoption of IFRS 16 and a US$8.7 million impairment for property, plant and equipment of such stores (the "Non-cash Impairment Charge").
• Operating profit for the six months ended June 30, 2019 decreased by US$44.7 million, or 21.5% (-19.6% constant currency), to US$163.6 million when excluding the Non-cash Impairment Charge and the costs to
  implement profit improvement initiatives during the six months ended June 30, 2019, compared to US$208.3 million for the same period in the previous year (as recast to adjust for IFRS 16 impacts)(1). Operating profit, as reported, decreased by US$77.8 million, or 38.5% (-36.9% constant currency), year-on-year to US$124.0 million.
• Profit for the period for the six months ended June 30, 2019 decreased by US$14.7 million, or 13.4% (-12.1% constant currency), to US$95.3 million when excluding the Non-cash Impairment Charge and the costs to
  implement profit improvement initiatives, net of the related tax impact during the six months ended June 30, 2019, compared to US$110.0 million for the same period in the previous year (as recast to adjust for IFRS 16 impacts)(1) when excluding the non-cash charge of US$53.3 million and the related tax impact during the six months ended June 30, 2018 to write-off the deferred financing costs associated with the Original Senior Credit Facilities (as defined below) in conjunction with the 2018 Refinancing (as described in further detail in the Indebtedness section of Management Discussion and Analysis below). Profit for the period, as reported, decreased by US$19.6 million, or 25.1% (-23.8% constant currency), year-on-year to US$58.3 million.
• Profit attributable to the equity holders for the six months ended June 30, 2019 decreased by US$13.8 million, or 13.9% (-12.4% constant currency), to US$86.1 million when excluding the Non-cash Impairment Charge and the costs to implement profit improvement initiatives, net of the related tax impact during the six months ended
  June 30, 2019, compared to US$99.9 million for the six months ended June 30, 2018 (as recast to adjust for IFRS 16 impacts)(1) when excluding the non-cash charge of US$53.3 million and the related tax impact during the six months ended June 30, 2018 to write-off the deferred financing costs associated with the Original Senior Credit Facilities (as defined below) in conjunction with the 2018 Refinancing (as described in further detail in the Indebtedness section of Management Discussion and Analysis below). Profit attributable to the equity holders, as reported, decreased by US$18.7 million, or 27.5% (-26.0% constant currency), from the same period in the previous year to US$49.1 million.
• Adjusted Net Income, a non-IFRS measure, decreased by US$14.2 million, or 12.8% (-11.3% constant currency),
  to US$97.0 million for the six months ended June 30, 2019 compared to US$111.2 million for the same period in the previous year (as recast to adjust for IFRS 16 impacts)(1). Reported Adjusted Net Income for the six months ended June 30, 2018 was US$119.8 million.
• Adjusted EBITDA, a non-IFRS measure, decreased by US$51.5 million, or 19.4% (-16.4% constant currency), to
  US$213.5 million for the six months ended June 30, 2019 compared to US$265.0 million for the same period in the previous year (as recast to adjust for IFRS 16 impacts)(1). Reported Adjusted EBITDA for the six months ended June 30, 2018 was US$276.8 million.
• Adjusted EBITDA margin, a non-IFRS measure, was 12.2% for the six months ended June 30, 2019 compared to 14.3% for the six months ended June 30, 2018 (as recast to adjust for IFRS 16 impacts)(1). This decrease was primarily due to the effect of investments in the DTC distribution channel, particularly in connection with bricks- and-mortar retail stores that were opened in 2017 and 2018. Reported Adjusted EBITDA margin for the six months ended June 30, 2018 was 15.0%.
• The Group generated US$192.6 million of cash from operating activities during the six months ended June 30, 2019 compared to US$56.2 million for the same period in the previous year. Excluding the impacts from IFRS 16, operating cash flow more than doubled to US$113.0 million for the first half of 2019 compared to the first half of

5