DARING TO ADAPT 2015 Half-Year Results 31 August 2015

Transcription

1 DARING TO ADAPT 2015 Half-Year Results 31 August 2015

2 GROUP SUMMARY Sales: EUR 3.2 billion, +8.6% Current consolidated result before tax, group s share, better than anticipated thanks to a favourable currency effect at Belron and higher than expected results at D Ieteren Auto: EUR million, +61.5% Group's share in the net result for the period: EUR 83.7 million (EUR 65.9 million in H1 2014) Consolidated net financial debt: EUR million (EUR million in H1 2014) Upward revision of FY 2015 forecast: D Ieteren now anticipates a 20-25% increase based on current exchange rates. The upward revision mainly reflects the favourable currency effect and higher-than-expected results at D Ieteren Auto in H

3 SALES BY SEGMENT External sales ( m) 2, % +11.9% 3,230.3 Belron 1, , % D Ieteren Auto 1, ,590.7 H H

4 CURRENT OPERATING RESULT BY SEGMENT Current EBIT ( m) +46.5% % Belron 69.9 D Ieteren Auto % 55.4 H H

5 SEGMENT CONTRIBUTION TO EVOLUTION OF CURRENT CONSOLIDATED RESULT BEFORE TAX, GROUP S SHARE Current consolidated PBT, group s share ( m) +61.5% H D Ieteren Auto & Corporate Belron H

6 VEHICLE GLASS REPAIR & REPLACEMENT 31 August 2015

7 SUMMARY BELRON Sales: EUR 1.6 billion, +11.9% (of which organic growth: +2.0%) Current operating result: EUR million, +48.1% Result before tax: EUR 53.9 million, +20.3% Current result before tax, group s share: EUR 80.4 million, +62.4% Impairments in Brazil and Turkey following strategic reviews Decision to exit China Challenging transformation of operating model in the UK Outlook: remainder of the year expected to be mixed. The profit evolution will be impacted by higher incentive costs vs H Moreover, the impact of cost savings will be less pronounced in H2. 7

8 EXTERNAL SALES Organic growth reflects an unexpectedly strong market for a second year in a row (due to harsh winter conditions) combined with market share gains in the US, partially offset by market declines and some market share losses in Europe Positive product mix effect due to a greater proportion of replacements on the back of the harsh winter in the US Significant impact from currency translation (+10.1%) due to strong USD & GBP +11.9% External sales ( m) Mostly UK, Germany, France, Brazil, Netherlands & Italy Significant declines notably in Italy, Brazil and the UK, almost entirely compensated by strong uplift in the US 148 1,640 1, % organic increase Sales H Market - USA Market Segment Price & Mix Trading days Acquisitions FX Sales H Europe share gains & Other 8

9 EUROPE NOW REPRESENTS LESS THAN HALF OF SALES (51% IN H1 2014) DUE TO GROWTH IN THE US Geographical revenue breakdown 1 Total revenue evolution 2 55% Europe 45% Rest of the World Europe -3.4% France UK Germany Netherlands Italy Belgium Spain Norway Portugal Hungary Sweden Ireland Greece Switzerland Denmark Austria Turkey Russia Luxembourg Rest of the world +7.3% USA Canada Australia Brazil New Zealand China 1 At actual FX. 2 At constant FX including acquisitions and calendar effect. 9

10 CURRENT OPERATING RESULT In the US, significant fall through from increased sales In Europe, impact of lower sales more than offset by cost control actions and the impact of restructuring actions (as announced in December 2014) Favourable currency translation effect of 12% Current EBIT ( m) +48.1% Italy, Sweden, Spain, US & Canada Mostly the US, Germany & France Current operating result H Organic Acquisitions FX & ELTIP* Current operating result H * Executive Long-Term Incentive Plan 10

11 FOCUS ON RESTRUCTURING ACTIONS UK: challenging transformation of the operational model led to a deterioration of employee engagement and customer service, and a negative impact on sales and profit UK: the fixed assets of ADR, the branch-based business of Autorestore specialized in accident damage repairs, were written off (EUR 1.3 million). Note that ADR was sold end-august: a further charge of circa EUR 3 million is expected in H2. Italy & the Netherlands: restructuring in line with the plan and delivering benefits but still a tough market environment and price pressure. In Germany, the closure of the heavy commercial vehicles operation has delivered the expected profit benefits. Brazil: reduction of headcount, closure of 24 out of 68 branches and additional efficiency actions have allowed operating losses to decrease significantly yoy. Turkey: half (7) of corporate branches have been closed; focus on major population centres; downsizing of central support functions; focus on more profitable wholesale operations. China: decision to close the Chinese operations (one-off costs of approx. EUR 4 million are expected in H2). Impact on sales and result will be negligible. 11

12 SIGNIFICANT ACQUISITIONS Netherlands: on 3 June Belron acquired Autotaalglas. The deal comprises the acquisition of the franchisor, of 1 owned branch and of a franchise network of 54 branches. Germany: on 9 July, Belron announced the acquisition of Junited Autoglas, a German franchise network comprising 232 branches. The deal will be effective when approved by the German competition regulator. Autotaalglas and Junited Autoglas will keep their brand, identity and operating model. The businesses will be run separately: customers will be able to choose between two value propositions, Carglass and Autotaalglas/Junited Autoglas 12

13 SUMMARY OF H RESULTS m H H % change Total jobs (in million units) External sales 1, , Current operating result Current operating margin (in %) Current net finance costs Current result before tax Current result before tax, group s share Group s share in the net result for the period Unusual items and re-measurements, before tax ELTIP * charge, before tax * Executive Long-Term Incentive Plan 13

14 UNUSUAL COSTS AND RE-MEASUREMENTS BEFORE TAX m H Unusual costs -0.9 Restructuring costs (UK) -0.6 Integration costs following acquisition (Guardian in Spain) -0.3 Re-measurements Amortisation of intangible assets -5.6 Mark-to-market +6.9 Impairment of goodwill and fixed assets (Brazil, ADR & Turkey) Total

15 NET FINANCIAL DEBT AT 30 JUNE EUR 40.0 million FX impact vs end-2014: 69% of net debt denominated in USD Net Debt/current EBITDA * : 2.73 in H (FY 2014: 3.07) EUR 16 million acquisitions in H (the Netherlands, Italy & US) m H FY 2014 H % change (H vs H1 2014) Net financial debt of which Gross debt of which Loan notes Finance lease Inter-company loan n.s. Bank syndicate arrangement n.s. Other Cash and cash equivalents * 12-month rolling EBITDA 15

16 CASH GENERATION OF BELRON m FY 2013 H H FY 2014 H Current EBITDA Change in WCR Net capex (incl. finance leases) Free cash flow before tax Acquisitions (incl. net debt acquired)

17 OUTLOOK H Organic sales growth in the US & further declines in Europe Higher incentive costs compared to H (expected of approx. EUR -6 million) Impact of cost savings less pronounced than in H (many efficiency actions already underway in H2 2014) Results in H benefitted from short term cost reduction actions which will not be repeated 2016 Further market declines expected in Europe Tough weather-related comparables in the US Cost inflation (sourcing of glass) due to weak EUR 17

18 AUTOMOBILE DISTRIBUTION 31 August 2015

19 SUMMARY D IETEREN AUTO Net Belgian car market: -0.65% D Ieteren Auto s net market share: 22.02%. VW remains number 1 brand Sales: EUR 1.6 billion, +5.4%. New vehicle sales: EUR 1.4 billion, +5.0% Current operating result: EUR 55.4 million, +43.5% Result before tax: EUR 53.3 million, +56.8% Current result before tax, group s share: EUR 59.6 million, +60.2% Restructuring of the D Ieteren Car Centers and of the independent dealers network is ongoing Outlook: stable net car market and share in FY In H2 D Ieteren Auto expects delivery delays of the VW Passat, a less favourable product mix effect and costs related to the launch of the new Audi A4 19

20 ROUGHLY FLAT BELGIAN CAR MARKET Excluding deregistrations, Belgian car market slightly down yoy (-0.65%) Customer breakdown: fleet segment share up 2.4% (to 48.5%) vs individual customers New car registrations (000s units) ,824 13, % -0.65% 288,424 16, H2 H1 274,197 H ,406 H The historical graph above contains gross figures only. In order to provide an accurate picture of the car market, Febiac publishes since mid-2013 market figures excluding registrations that have been cancelled within 30 days. Deregistrations Net registrations 20

21 MARKET SHARE SLIGHTLY DOWN BOTH ON FY & H Market share excluding deregistrations at 22.02% vs 22.27% in H (22.67% in FY 2014), mostly due to declines at Volkswagen and Škoda D Ieteren Auto s market share (%) H H H H H H H H H H H gross market share Impact of deregistrations H net market share Market share (%) Net market share (excluding deregistrations) 21

22 BRAND PERFORMANCE Breakdown of D Ieteren Auto s market share per brand (%) Porsche Seat Škoda Audi Volkswagen H H The combined market share of Bentley and Lamborghini totals 0.01% both in H and H Despite a declining market share, VW remains the market leader, supported notably by the Passat and the Golf Sportsvan Despite a declining premium segment, Audi was up on FY14 thanks to the Q3, A4 & A6 Seat was up thanks to the Leon and the Ibiza New highs for Porsche on the back of the success of the Macan and the hybrid Cayenne 22

23 NEW VEHICLE SALES New vehicle sales ( m) Net market slightly down; market share -25bps vs H Spread deliveries/registrations reflects a decrease in independent dealer inventories and deliveries (e.g. to the Belgian army) which are not included in the Febiac figures Price/mix effect: average price per new vehicle up 4.6% +5.0% +5.0% , , , Net market volume: -0.65% Deliveries (like-for-like): +0.36% New vehicle sales H Market volume Deregistrations Net market share Spread deliveries/ registrations Price/Mix New vehicle sales H (like-for-like) Acquisitions New vehicle sales H

24 EXTERNAL SALES UP 5.4% External sales ( m) Strong uplift in new vehicle sales Positive contribution of most of the other activities % % , , ,508.9 External sales H New vehicle sales Used car sales Spare parts and accessories Aftersales activities D Ieteren Sport Other External sales H (like-for-like) Acquisitions External sales H

25 CURRENT OPERATING RESULT UP 43.5% Price/mix effect on new vehicle sales Improved results of spare parts & accessories and at D Ieteren Auto s corporately-owned dealerships Lower staff costs and cost savings Current EBIT ( m) +43.3% +43.5% Current operating result H Volume Price/Mix/ (new vehicles) Margin (new vehicles) Margin (other activities) Marketing SG&A and staff costs Other Current operating result H (likefor-like) Acquisitions Current operating result H

26 SUMMARY OF H RESULTS m H H % change New vehicles delivered (in units) 63,286 63, External sales 1, , Current operating result Current operating margin (in %) Current net finance costs n.s. Current result before tax Current result before tax, group s share of which joint ventures and associates Group s share in the net result for the period Unusual items and re-measurements, before tax

27 NET FINANCIAL DEBT AT 30 JUNE 2015 Repayment of EUR 150 million bond in December 2014 resulted in lower net financial costs in H EUR 100 million bond repaid in July 2015 m Dividend paid: EUR 44 million H FY 2014 H % change (H vs H1 2014) Net financial debt/(cash) Gross debt of which Less Bonds Other Inter-segment loan n.s. Cash and cash equivalents Held-to-maturity investments Other receivables

28 CASH GENERATION OF D IETEREN AUTO & CORPORATE m FY 2013 H H FY 2014 H Current EBITDA Change in WCR Net capex Free cash flow before tax Acquisitions (incl. net debt acquired)

29 OUTLOOK FOR FY 2015 Excluding registrations of less than 30 days, the Belgian new car market is expected to remain stable at around 450,000 registrations Objective of a stable annual market share Main new product launches in H2 2015: Volkswagen: Touran & Sharan Audi: A4 Škoda: Superb Combi In H2 D Ieteren Auto expects delivery delays of the VW Passat, a less favourable product mix effect and costs related to the launch of the new Audi A4 29

30 OUTLOOK FOR FY 2015

31 OUTLOOK FOR FY 2015 Whereas previously the group communicated that it expected its current consolidated result before tax, group s share, to grow by more than 10% in 2015 compared to 2014, it now anticipates a 20-25% increase based on current exchange rates. The upward revision mainly reflects the favourable currency effect and higherthan-expected results at D Ieteren Auto in H Extract from HY 2015 results press release published on 31 August

32 Q&A

33 FORWARD-LOOKING STATEMENTS To the extent that any statements made in this presentation contain information that is not historical, these statements are essentially forward-looking. The achievement of forwardlooking statements contained in this presentation is subject to risks and uncertainties because of a number of factors, including general economic factors, interest rate and foreign currency exchange rate fluctuations; changing market conditions, product competition, the nature of product development, impact of acquisitions and divestitures, restructurings, products withdrawals; regulatory approval processes and other unusual items. Consequently, actual results may differ materially from those expressed or implied by such forwardlooking statements. Forward-looking statements can be identified by the use of words such as "expects", "plans", "will", "believes", "may", "could", "estimates", "intends", "targets", "objectives", "potential", and other words of similar meaning. Should known or unknown risks or uncertainties materialize, or should our assumptions prove inaccurate, actual results could vary materially from those anticipated. The Company undertakes no obligation to publicly update any forward-looking statements. 33

34 CONTACT INFORMATION Financial Communication & Investor Relations D Ieteren Group Pascale Weber pascale.weber@dieteren.be Download the D Ieteren app on: Thierry Dossogne thierry.dossogne@dieteren.be or financial.communication@dieteren.be 34