DARING TO ADAPT 2015 Full-Year Results 25 February 2016

Transcription

1 DARING TO ADAPT 2015 Full-Year Results 25 February 2016

2 GROUP SUMMARY Results of both activities improved significantly in FY 2015 Group sales: EUR 6.0 billion, +10.7% Current PBT, group s share: EUR million, +20.6%. Including Carglass Brazil and the Chinese activities: EUR million, +31.9% (vs guidance of 20-25% growth). Group's share in the net result for the period: EUR million (EUR million in 2014) Consolidated net financial debt: EUR million (EUR million in 2014) FY 2016 forecast: assuming an average USD/EUR rate of 1.11 and an average GBP/EUR rate of 0.77 in 2016, the group aims at a current PBT, group s share, that is stable or slightly lower compared to EUR million in FY Results 25 February

3 SALES BY SEGMENT External sales ( m) 5, % +13.2% 6,035.4 Belron 2, , % D Ieteren Auto 2, ,874.2 FY 2014 FY FY Results 25 February

4 CURRENT OPERATING RESULT BY SEGMENT Current EBIT ( m) +13.8% % Belron D Ieteren Auto % 66.5 FY 2014 FY FY Results 25 February

5 SEGMENT CONTRIBUTION TO EVOLUTION OF CURRENT PBT, GROUP S SHARE Current consolidated PBT, group s share ( m) +20.6% FY 2014 D Ieteren Auto & Corporate Belron FY FY Results 25 February

6 VEHICLE GLASS REPAIR & REPLACEMENT 25 February 2016

7 SUMMARY BELRON Sales: EUR 3.2 billion, +13.2% (of which 4.7% organic growth) Current operating result: EUR million, +10.2% Current PBT, group s share: EUR million, +11.5% Record sales & operating result in the US Several major European countries delivered profit growth despite market declines Challenging transformation of the operating model in the UK Decision to exit China Acquisition of franchisors (Netherlands & Germany) Joint-venture in Brazil 2016 outlook: modest organic sales growth with market share gains expected to offset some adverse underlying market trends. Focusing on profit improvement (innovation, flexibility). Belron expects higher charges related to the long term management incentive programme 2015 FY Results 25 February

8 EXTERNAL SALES Organic growth reflects a substantial increase in the US, due to both the market growth (second strong winter in a row) and market share gains, partially offset by a small decrease in Europe primarily due to market declines Significant impact from currency translation (+8.1%) due to strong USD & GBP 2,793 Mostly UK & France % Uplift in the US, F and Australia partially offset by share loss in the UK, I, NL and D External sales ( m) 3, % organic increase Sales FY 2014 Market - USA Market - Europe & Other Segment share gains Price & Mix Trading days Acquisitions FX Sales FY FY Results 25 February

9 EUROPE REPRESENTS 46% OF SALES (51% IN 2014) Geographical sales breakdown Organic sales evolution 54% Europe 46% Rest of the World Europe -2.5% France UK Germany Netherlands Italy Belgium Spain Norway Portugal Hungary Sweden Ireland Greece Switzerland Denmark Austria Turkey Russia Luxembourg Rest of the world +12.5% USA Canada Australia New Zealand 2015 FY Results 25 February

10 CURRENT OPERATING RESULT Current EBIT ( m) In the US, significant fall through from increased sales In Europe, impact of weak sales more than offset by various restructuring and efficiency actions +10.2% Increase in US, Germany and France partly offset by declines in UK and Italy Autotaalglas and others Current operating result 2014 Organic Acquisitions FX & ELTIP* Current operating results 2015 * Executive Long-Term Incentive Plan 2015 FY Results 25 February

11 MAIN ACQUISITIONS DURING 2015 Netherlands: on 3 rd of June Belron acquired Autotaalglas. The deal comprises the acquisition of the franchisor, 1 owned branch and a franchise network of 54 branches. On 9 th of November, GlasGarage was acquired including the franchisor, 1 owned branch and a franchise network of 126 branches. Germany: on24 th of September, Belron announced the acquisition of junited Autoglas, a German franchise network comprising 232 branches. Autotaalglas, GlasGarage and junited Autoglas will keep their brand, identity and operating model. The businesses will be run separately and customers will be able to choose between different value propositions 2015 FY Results 25 February

12 SUMMARY OF FY 2015 RESULTS m % change Total jobs (in million units) External sales 2, , 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 (in PBT) ELTIP * charge, before tax * Executive Long-Term Incentive Plan 2015 FY Results 25 February

13 UNUSUAL ITEMS AND RE-MEASUREMENTS (IN PBT) m 2015 Unusual items Settlement pension obligations (NL) Disposal loss related to ADR (UK) -2.7 Other including restructuring costs -7.9 Re-measurements Amortisation of intangible assets Mark-to-market +7.9 Impairment of goodwill and fixed assets Turkey and IT assets Total FY Results 25 February

14 NET FINANCIAL DEBT AT 31 DECEMBER EUR 55 million FX impact vs end-2014: 72% of net debt denominated in USD Net Debt/current EBITDA * : 2.57 in FY 2015 (FY 2014: 3.07) EUR 22.6 million acquisitions in 2015 (the Netherlands, Germany, US) EUR 33.8 million dividends (D Ieteren share: EUR 32.1 million) m FY 2014 FY 2015 % change (2015 vs 2014) Net financial debt of which Gross debt of which * 12-month rolling EBITDA Loan notes Finance lease Inter-segment loan Bank syndicate arrangement Other (mainly overdrafts) Cash and cash equivalents FY Results 25 February

15 CASH GENERATION OF BELRON m FY 2013 FY 2014 * FY 2015 Current EBITDA Change in WCR Net capex (incl. finance leases) Free cash flow before tax Acquisitions (incl. net debt acquired) * Restated figures FY Results 25 February

16 CONTINUED FOCUS ON INNOVATION, EFFICIENCY AND FLEXIBILITY New advertising approaches (e.g. highlighting ADAS, digital marketing) OPTISmart (Our People s Time Index) to reduce excess time taken per job Expanding footprint in a flexible and low cost way Belron Technical: supporting the countries in their ADAS implementations 2015: record accuracy levels achieved in glass identification Self-service solutions for customers (reduce incoming calls) Reduction in transportation costs (optimisation of delivery frequency) IT investments (e.g. new ERP in NL & B, fully integrated web-booking systems in the UK) Global Net Promoter Score of around 80% despite a disappointing UK performance 2015 FY Results 25 February

17 OUTLOOK FOR 2016 Agreement to form a joint venture in Brazil (press release of 8 January). Belron sold 60% of its investment in Carglass Brazil to Advisia. Brazilian activities will be accounted for using the equity method as from Relatively cold winter conditions in the US For FY 2016 Belron aims at moderate organic sales growth thanks to market share gains Belron expects higher charges related to the executive LT incentive programme (EUR 13 million expected in 2016 compared to EUR 4.9 million in 2015) 2015 FY Results 25 February

18 AUTOMOBILE DISTRIBUTION 25 February 2016

19 SUMMARY D IETEREN AUTO Net Belgian car market: +2.9% D Ieteren Auto s net market share: 22.34% (-37bps). VW remains number 1 brand in spite of the Emissiongate Sales: EUR 2.9 billion, +8.0%. New vehicle sales: EUR 2.5 billion, +8.5% Current operating result: EUR 66.5 million, +24.8% Current result before tax, group s share: EUR 74.5 million, +41.9% Total cost of Emissiongate included in operating result: EUR 13.8 million of which EUR 7.0 million under current items and EUR 6.8 million under unusual items Outlook: net car market expected to be slightly up in FY For the full year, D Ieteren Auto aims at a stable market share and expects a stable or slightly lower current operating result due to the tail end effect of the Emissiongate and higher marketing costs FY Results 25 February

20 BELGIAN NEW CAR MARKET PICKED UP IN 2015 Excluding deregistrations of less than 30 days, the Belgian new car market was up 2.9% Growing share of professional customers (52.4% in 2015 vs 49.7% in 2014) New car registrations (000s units) ,939 25, % +2.9% 501,066 30, H2 H1 457, , 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 2015 FY Results 25 February

21 MARKET SHARE UNDER PRESSURE DUE TO EMISSIONGATE Market share excluding deregistrations down 37bps to 22.34% in 2015 D Ieteren Auto s market share (%) gross market share Impact of deregistrations 2015 net market share Market share (%) Net market share (excluding deregistrations) 2015 FY Results 25 February

22 RECORD LEVELS FOR AUDI AND PORSCHE Breakdown of D Ieteren Auto s market share per brand (%) Porsche Seat Škoda Audi Volkswagen The combined market share of Bentley and Lamborghini totals 0.01% both in 2014 and FY Results 25 February 2016 VW remains the market leader with a share in excess of 10% despite the Emissiongate. Success of Passat underpinned demand. Record market share at Audi with all models gaining share with the exception of the A1 and A5. Marginal decline at Škoda despite success of the Octavia and new Superb. Seat s share is slightly down. New highs for Porsche on the back of the success of the Macan and the hybrid Cayenne 22

23 EXTERNAL SALES UP 8.0% New vehicle sales rose by 8.5% (number of deliveries +3.0% and price mix effect of +5.5%) Higher sales of used cars, spare parts and accessories and aftersales activities External sales ( m) +8.0% , ,660.5 External sales 2014 New vehicle sales Used car sales Spare parts and accessories Aftersales activities D Ieteren Sport Other External sales FY Results 25 February

24 CURRENT OPERATING RESULT UP 24.8% Positive impact from higher volumes and price/mix effect Margin effect includes extra incentives to dealer network Higher staff expenses include redundancy costs Other includes lower write-downs on trade receivables and inventories The current operating result of the Retail activity improved significantly Current EBIT ( m) +24.8% Current operating result 2014 Volumes Price/Mix Margin Marketing SG&A and staff costs Other Current operating result FY Results 25 February

25 SUMMARY OF FY 2015 RESULTS m % change New vehicles delivered (in units) 111, , External sales 2, , Current operating result Current operating margin (in %) Current net finance costs 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 FY Results 25 February

26 NET FINANCIAL DEBT AT 31 DECEMBER 2015 Repayment of EUR 150 million bond in December 2014 and of EUR 100 million bond in July 2015 resulted in lower net financial costs in 2015 Dividends: paid EUR 44 million and received (from Belron) EUR 32 million m FY 2014 FY 2015 % change (2015 vs 2014) Net financial debt/(cash) Gross debt of which Less Bonds Other Inter-segment loan Cash and cash equivalents Held-to-maturity investments Other receivables FY Results 25 February

27 CASH GENERATION OF D IETEREN AUTO & CORPORATE m FY 2013 FY 2014 FY 2015 Current EBITDA Change in WCR Net capex Free cash flow before tax Acquisitions (incl. net debt acquired) FY Results 25 February

28 STRATEGY D Ieteren continued to implement its strategy which is based on three pillars: Powered by You involves streamlining its internal structure and placing the customer at the centre of the organisation. Six divisions have been set up in H to achieve commercial and operational excellence The Market Area project aims at optimising the independent dealer network. Of the 26 Market Areas, 18 are currently being established The Pole Position project that focuses at improving the performance of the D Ieteren Car Centers (DCC) in the Brussels region is progressing ahead of schedule with cost savings and synergies exceeding expectations. The losses of the DCCs have been reduced by 39% yearon-year 2015 FY Results 25 February

29 ROBUST ORDER BOOK Emissiongate : the decision to suspend the commercialisation of several models, first in September, then in November, resulted in a temporary loss in orders Incoming orders picked up again in December due to commercial actions At the end of 2015, the order book was up 18.5% year-on-year The biennial Brussels Motor show proved to be a success: order book up 24.3% year-on-year at the end of January 2015 FY Results 25 February

30 OUTLOOK FOR 2016 The Belgian new car market is expected to rise slightly 1H 2016: D Ieteren Auto s market share expected to decline (yearon-year) due to tail effect of the Emissiongate FY 2016: D Ieteren Auto aims at a stable market share Main new product launches in 2016: Volkswagen: Tiguan Audi: A4 Allroad, A5 coupé and Q2 (+ full year impact of A4) Seat: Ateca (SUV) D Ieteren Auto expects a stable or slightly lower current operating result due to the tail end effect of the Emissiongate and higher marketing costs. At D Ieteren corporate level, costs will be higher than in 2015 following the reinforcement of the executive team 2015 FY Results 25 February

31 OUTLOOK FOR FY 2016

32 OUTLOOK FOR FY 2016 Assuming an average USD/EUR rate of 1.11 and an average GBP/EUR rate of 0.77 in 2016, D Ieteren aims at a stable or slightly lower current consolidated result before tax, group s share, compared to EUR million in 2015 D Ieteren Auto expects a stable or slightly lower current operating result due to the tail end effect of the Emissiongate and higher marketing costs. Belron expects moderate organic sales growth and higher charges related to the long term management incentive programme At D Ieteren corporate level, costs will be higher than in 2015 following the reinforcement of the executive team 2015 FY Results 25 February

33 Q&A

34 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 FY Results 25 February

35 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 FY Results 25 February