Disclaimer. Notes in the presentation

Transcription

1 Q Results

2 Disclaimer This presentation may contain forward looking statements based on current expectations and projects of the Group in relation to future events. Due to their specific nature, these statements are subject to inherent risks and uncertainties, as they depend on certain circumstances and facts, most of which being beyond the control of the Group. Therefore actual results could differ, even to a significant extent, with respect to those reported in the statements. Notes in the presentation 1 Q adjusted economic results do not include non-recurring items related to commercial restructuring costs in the EMEA region for Euro 1.2 million 2 In Q1 2015, the net debt does not include the option component embedded in the equity-linked Bonds and the fair value of the other derivatives financial instruments 1

3 Introduction Luisa Delgado, CEO 2

4 Focused on our long-term journey for sustainable growth Q Results ORGANIC SALES GROWTH AND OPERATING RESULTS IN LINE WITH PLAN: Positive/further continuation of core trends and strategic projects: North America Europe Latin America Licensed brand portfolio rebalancing Kick-off of proprietary brand new campaigns Key 2014 interventions progress for back-end year impact: Commercial leadership & business model across Asia Supply network re-invention 3

5 Focused on our long-term journey for sustainable growth Q Results ORGANIC SALES GROWTH AND OPERATING RESULTS IN LINE WITH PLAN: Sales 324.3M +10.6% (+0.8% at constant FX rates) Revenue growth while business transformation continue Adjusted 1 EBITDA 32.6M -8.2% (10.0% of net sales) Strong comp base vs 14; supply network efficiencies skewed to H2 Net Debt 128.3M -38.2% vs. Q1 14 Net Debt/adjusted 1 EBITDA LTM at 1.1x Free Cash Flow 32.1M positive for the first time in Q1 beyond Euro 30M compensation from Kering Adjusted 1 Net Income +2.3M Driven by option valuation in bond and net negative financial charges 4

6 Q Results Gerd Graehsler, CFO 5

7 Economic and Financial Performance in millions of Euro Q Q % Change (*) Total sales % +0.8% Gross profit % EBITDA % Adjusted 1 EBITDA % EBIT % Adjusted 1 EBIT % Group net result Adjusted 1 Group net result % % Group Net Debt % Free Cash Flow 32.1 (24.6) (*) at constant exchange rates 6

8 Our sales performance by region SALES AT 324M +9.8% FOREX +0.8% AT CONSTANT EXCHANGE RATES NA +5.3%CN Latam +23.4%CN Europe +2.8%CN APAC -22.9%CN +26.9% reported +30.1% reported +2.6% reported -9.8% reported 4% 41% Asia 15% 12% 41% 1. Strong across key channels 2. Increasing door productivity 1. Broad-based across the continent 1. Iberia, Germany and North Europe 2. Italy off to a strong start 1. Comp Base Period pre-turnaround -> Korea and ASEAN markets 2. Challenging environment in China/HK 3. Australia positive, Japan early good signs 7

9 Adjusted 1 EBITDA Key operating drivers: -240bps Adjusted 1 EBIDA margin bps Gross margin, from 62.8% to 60.6% Savings projects in Q1 trailing cost inflation 12.1% -210bps 10.0% inventory obsolescence provision different phasing of plant costs bps SG&A Q Q

10 Adjusted 1 Group Net result Beyond operating performance: Adjusted 1 Group net margin bps Net negative FX differences in fin. charges bps Fair value valuation of the equity-linked bonds 5.6% -490bps 0.7% Q Q

11 Cash Flow and Net Debt highlights Key Cash Flow drivers: 1. Lower absorption from working capital Q Q Improved DSO ratio Cash Flow from operating activities 37.1 (17.0) Inventory flow broadly in line Cash Flow for investing activities (5.0) (7.6) 2. Euro 30m first compensation payment from Kering Free Cash Flow 32.1 (24.6) % 3. Capex improvement of plants and investments into IT Net Debt

12 Conclusion Luisa Delgado, CEO 11

13 Innovation is our Point of Difference... since

14 Leading INNOVATION to build trust in an untapped market - KIDS NEW KIDS BY SAFILO EYEWEAR COLLECTION Conceived for children s needs, powered by children Designed together with the world s leading medical experts BUILDING A BRAND OF TRUST Through the collaboration with SIOP (Società Italiana di Oftalmologia Pediatrica) and WSPOS (World Society of Paediatric Ophthalmology and Strabismus), Safilo created a unique product with the adoption of a medical-scientific approach to meet the key eyewear needs of children 13

15 Leading INNOVATION to reach new consumers - BEAUTY BOBBI BROWN EYEWEAR GOES GLOBAL Meet Bobbi Brown and preview her new eyewear collection available exclusively at Liberty (London) 28 th April Kick-off also in Mexico and Asia coming soon 14

16 Leading INNOVATION through unexpected Design - Bespoke ICONS Fendi IRIDIA Dior Soreal Fendi Orchidea Dior Tecnologic 15

17 OUT THERE, now! 16

18 Safilo Product School to train the future Masters of our Craft Thank You! 17

19 Appendices 18

20 Economic results in millions of Euro Q % Q % % Change Net sales % Cost of sales (127.7) (39.4) (109.2) (37.2) 17.0% Gross profit % Selling and marketing expenses (133.4) (41.1) (119.5) (40.8) 11.6% General and administrative expenses (40.4) (12.5) (37.7) (12.9) 7.0% Other operating income/(expenses), net (0.7) (0.2) n.s. Operating profit % Interest expenses and other financial charges, net (18.8) (5.8) (2.3) (0.8) n.s. Profit before taxation % Income taxes (1.9) (0.6) (7.9) (2.7) -76.4% Net profit % Net profit attributale to minority interests % Net profit attributable to the Group % EBITDA % ECONOMIC INDICATORS PRE NON-RECURRING ITEMS Adjusted 1 EBIT % Adjusted 1 EBITDA % Adjusted 1 Net profit attributable to the Group % 19

21 Net sales performance in millions of Euro Net sales by geographical area Q % Q % % Change % Change (*) Europe North America Latin America Asia Pacific Rest of the world Total Net sales by business Q % Q % % Change % Change (*) Wholesale Retail Total (*) at constant exchange rates 20

22 Balance Sheet in millions of Euro March 31, 2015 December 31, 2014 Change Net working capital Tangible and intangible fixed assets Financial fixed assets Other assets / (liabilities), net (39.1) (14.4) (24.7) Net invested capital 1, , Net financial position (128.3) (163.3) 35.0 Group Shareholders' equity (1,072.0) (971.5) (100.5) Non-controlling interests (3.0) (2.7) (0.3) 21

23 Net Working Capital in millions of Euro March 31, 2015 March 31, 2014 Change Trade receivables, net Inventories Trade payables (213.8) (191.0) (22.8) Net working capital % net sales LTM 27.7% 26.4% 22

24 Free Cash Flow in millions of Euro Free cash flow Q Q Net result and other charges Change in working capital 10.0 (45.2) Cash flow operating activities 37.1 (17.0) Cash flow investing activities (5.0) (7.6) Free cash flow 32.1 (24.6) 23

25 Exchange Rates As of (Appreciation)/ Depreciation (*) Avg. for the quarter (Appreciation)/ Depreciation (*) Currency Code March 31, 2015 December 31, 2014 % % US Dollar USD % % Hong-Kong Dollar HKD % % Swiss Franc CHF % % Canadian Dollar CAD % % Japanese Yen YEN % % British Pound GBP % % Swedish Krown SEK % % Australian Dollar AUD % % South-African Rand ZAR % % Russian Ruble RUB % % Brasilian Real BRL % % Indian Rupee INR % % Singapore Dollar SGD % % Malaysian Ringgit MYR % % Chinese Renminbi CNY % % Korean Won KRW 1, , % 1, , % Mexican Peso MXN % % Dirham United EmiraAED % n.a. n.a. (*) Appreciation (figures with a minus sign in the table above) indicates an increase in the value of the currency against the Euro. 24

26 Safilo Group Brands Portfolio Proprietary brands Licensed brands 25

27 Safilo Group Licensed brands Brand Expiry Date

28 Safilo Group Licensed brands Brand Expiry Date