FULL-YEAR 2014 RESULTS 26 FEBRUARY 2015

Transcription

1 FULL-YEAR 2014 RESULTS 26 FEBRUARY 2015

2 D IETEREN > FY 2014 RESULTS Full-Year 2014 consolidated results Sales: EUR 5.5 billion, +1.3% Current consolidated result before tax, group s share, in line with guidance: EUR million, -11.5% Group's share in the net result for the period: EUR million (EUR million profit in FY2013). Significant amount of unusual items and re-measurements mainly relate to the non-cash impairment charges and restructuring costs at Belron (as announced mid-december 2014) Group s consolidated net financial debt: EUR million (EUR million at end-2013) D Ieteren still expects its 2015 current consolidated result before tax, group s share, to be up in excess of 10% compared to

3 D IETEREN > FY 2014 RESULTS Sales by segment External sales ( m) 5, % 5,541.6 Belron 2, , % D Ieteren Auto 2, , % FY 2013 FY

4 D IETEREN > FY 2014 RESULTS Current operating result by segment Current EBIT ( m) % Belron % D Ieteren Auto % FY 2013 FY

5 D IETEREN > FY 2014 RESULTS Segment contribution to evolution of current consolidated result before tax, group s share Current consolidated PBT, group s share ( m) % FY 2013 D Ieteren Auto & Corporate Belron FY

6 D IETEREN AUTO WORLD LEADER IN VEHICLE GLASS REPAIR AND REPLACEMENT (VGRR)

7 BELRON > FY 2014 RESULTS External sales US market growth does not offset EU market decline External sales ( m) Acquisitions, segment share gains and price/mix improvement mitigate the market effect Mostly France, Germany, UK, Belgium and the Netherlands Mostly UK and Germany Mostly USA and Spain 2, , % organic decrease Sales FY 2013 Market - USA Market - Europe & Other Segment share gains Price & Mix Trading Acquisitions FX days Sales FY

8 BELRON > FY 2014 RESULTS ROW now represents nearly half of total sales (46% in 2013) due to US growth Geographical revenue breakdown Total revenue evolution 49% 51% Europe -5.2% France UK Germany Netherlands Italy Belgium Spain Norway Portugal Hungary Sweden Ireland Greece Switzerland Denmark Austria Turkey Russia Luxembourg Europe Rest of the World Rest of the world +8.9% USA Canada Australia Brazil New Zealand China 8

9 BELRON > FY 2014 RESULTS Organic sales roughly stable, fall through in the US was lower than in Europe Europe: time lag to flex the cost base when possible; cost reduction measures implemented mid-2014 started to have a positive impact in H2 US: lower variable contribution compounded by labour inefficiencies & inventory shortages due to spikes in demand Brazil: additional volumes necessitated additional subcontractor and set up costs; subsequently, two major but unprofitable accounts were lost Organic profit evolution ( m; excl. ELTIP) Organic sales evolution ( m) US fall through = 17% Europe & Other fall through = 56% USA Europe & Other Organic sales evolution Organic profit evolution - USA Organic profit evolution - Europe & Other Organic profit evolution 9

10 BELRON > FY 2014 RESULTS Current operating result Impact of warm winter weather in Europe was not offset by extreme weather conditions in the US Current EBIT ( m) Decline mostly in the UK & Germany; growth in the US Current operating result FY 2013 Organic Acquisitions FX & Other Current operating result FY

11 BELRON > FY 2014 RESULTS Summary of FY 2014 results m FY 2013 FY 2014 % change Total jobs (in million units) % External sales 2, , % Current operating result % Current operating margin 6.1% 5.0% Current net finance costs % Current result before tax % Current result before tax. group's share % Group's share in the result for the period n.s. Unusual items and re-measurements, before tax

12 BELRON > FY 2014 RESULTS Impairment testing & profitability improvement measures (as announced on 12 December 2014) UK: from a branch/mobile network to a fully mobile operation; employee consultation concluded, changes are being implemented > Unusual restructuring costs of EUR 16 million > Non-cash goodwill impairment charge of EUR 89 million Germany: closure of loss-making specials business (now terminated) > Unusual restructuring costs of EUR 10 million Italy: profitability improvement measures in response to a declining market and the loss of a major insurance partner: merging of back-offices and new remote advisor system > Unusual restructuring costs of EUR 3 million Netherlands: profitability improvement measures in response to sharp market decline (new road surfacing technology) > Unusual restructuring costs of EUR 4 million China: reduction of footprint (from 36 branches to 8) and termination of wholesale activity > Unusual restructuring costs of EUR 7 million > Non-cash goodwill impairment charge of EUR 9 million 12

13 BELRON > FY 2014 RESULTS Unusual costs and re-measurements before tax m FY 2014 Unusual costs Restructuring costs (UK, Germany, China, Italy, Netherland & acquisition/integration in Canada) Integration costs following acquisitions in the US and Spain -6.7 Re-measurements Amortisation of intangible assets Mark-to-market -0.4 Goodwill impairment (UK, China) Total

14 BELRON > FY 2014 RESULTS Net financial debt at 31 December In April 2014: repayment of a US Private Placement of USD 200 million early refinanced in Q No refinancing expected before end-2015 EUR 14 million acquisitions in 2014 (mainly US, Spain, Italy, Canada) Adverse FX impact : EUR 59 million m FY 2013 FY 2014 Net financial debt of which Loan notes (maturities from 2017 to 2025) Bank facilities Finance Leases 50.6 Cash and other

15 BELRON > FY 2014 RESULTS Outlook for FY 2015 Expected moderate organic sales growth due to expected adverse underlying market trends Winter weather in early 2015: > North America: relatively strong winter > Europe: normal winter conditions during recent weeks (vs unusually warm winter weather in early 2014) Developing markets are expected to continue to grow Benefits from the major restructuring initiatives taken at the end of 2014 should flow through in 2015 Belron will continue to be innovative in all areas, increase the flexibility of its operations and look for further efficiency initiatives 15

16 D IETEREN AUTO BELGIAN MARKET LEADER IN VEHICLE DISTRIBUTION

17 D IETEREN AUTO > FY 2014 RESULTS Stable car market in line with expectations Fleet segment flat / Individual customers segment slightly down 1.2% Excluding deregistrations, Belgian car market up 0.7% New car registrations (000s units) ,065 30, % +0.7% 482,939 24, , , FY 2013 FY 2014 H2 H1 Deregistrations Net registrations 17

18 D IETEREN AUTO > FY 2014 RESULTS All-time third best market share at 21.78% Market share excluding deregistrations at 22.67%, vs 22.39% in FY 2013 D Ieteren Auto s market share in 2014 (%) Market share (%) Net market share (excluding deregistrations) (%) FY 2014 gross market share Impact of FY 2014 net deregistrations market share 18

19 D IETEREN AUTO > FY 2014 RESULTS Volkswagen still number 1 in Belgium Net Market share (%) FY FY 2014 VW remains number 1 in Belgium; only brand with a market share in excess of 10%, thanks notably to the Golf and Polo Audi slightly up vs 2013 thanks to the success of the A3 and the Q3 Škoda up 2013 thanks to the Fabia s favorable sales evolution, among others Porsche s market share at a historic high mostly thanks to the new Macan Porsche Bentley/Lamborghini Seat Škoda Audi Volkswagen 19

20 D IETEREN AUTO > FY 2014 RESULTS New vehicle sales Roughly flat real market Market share +28bps vs 2013 Lower dealer inventories Partially offset by a higher unit price -0.4% % New vehicle sales ( m) 2, , ,316.5 Market volume (excl. deregistrations) : +0.7% Deliveries (like-for-like): -0.5% New vehicle sales FY 2013 (like-for-like) Market volume Deregistrations Market share Spread registrations/deliveries Price/Mix New vehicle sales FY 2014 (like-for-like) Acquisitions New vehicle sales FY

21 D IETEREN AUTO > FY 2014 RESULTS External sales Sales up 1.3% Excluding acquisitions, sales roughly flat yoy: lower sales of new vehicles and spare parts and accessories were partially offset by growth in other activities External sales growth reflects the significant impact of the independent dealerships acquired late 2013 and in H External sales ( m) -0.2% +1.3% , , , ,622.5 External sales FY 2013 Acquisitions External sales FY 2013 (likefor-like) New vehicle sales Used car sales Spare parts and accessories Aftersales activities D Ieteren Sport Other External sales FY 2014 (likefor-like) Acquisitions External sales FY

22 D IETEREN AUTO > FY 2014 RESULTS Current operating result Slightly lower volumes offset by a positive price/mix effect Efficient monitoring of operating expenses Current EBIT ( m) +20.8% +14.1% Current operating result FY 2013 Volume effect Price/Mix effect new vehicles Margin (other activities) Marketing SG&A and staff costs Other Current operating result FY 2014 (like-for-like) Acquisitions Current operating result FY

23 D IETEREN AUTO > FY 2014 RESULTS Summary of FY 2014 results m FY 2013 FY 2014 % change New vehicles delivered (units) 112, , % External sales 2, , % Current operating result % Current operating margin 1.8% 2.0% Current net finance costs % Current result before tax % Current result before tax. group's share % Group's share in the result for the period % Unusual items and re-measurements. before tax

24 D IETEREN AUTO > FY 2014 RESULTS Net financial debt at 31 December EUR 150 million repaid in December 2014 EUR 100 million bond due in July 2015 Cash partly invested in high grade short term treasury funds Significantly lower financial costs expected in 2015 Dividend paid: EUR 44 million EUR Acquisition of independent dealerships: EUR 31 million (real estate and net debt included) m FY 2013 FY 2014 Net financial debt (cash) of which Bonds (maturing in 2015) Bank facilities 12.9 Cash and other

25 D IETEREN AUTO > FY 2014 RESULTS Outlook for FY 2015 Belgian market expected to be flat at around 485,000 new car registrations Objective of a stable annual market share New product launches in 2015: > Volkswagen: Golf Cabrio, Touran & Sharan > Volkswagen Commercial Vehicles: Caddy & Transporter T6 > Audi: TT Roadster, Q7 & A4 > Škoda: Fabia & Superb > Seat: Leon ST Experience & Leon Cupra > Porsche: Cayenne 25

26 D IETEREN AUTO > FY 2014 RESULTS Reshaping of the distribution network Status D Ieteren Car Centers (corporately-owned dealerships) > Two dealerships (Vilvoorde & Fort-Jaco) have been relocated at the end of the year > Implementation ahead of schedule > Goal: return to break-even by 2018 Independent dealers > 27 homogeneous market areas have been identified > All market area leaders have been designated > Goal: economies of scale and synergies; 2.0% current margin before tax by 2020 (vs 0.4% in 2014) 26

27 D IETEREN > FY 2014 RESULTS Outlook for FY 2015 On the basis of the current outlook of its activities, D Ieteren still expects its 2015 current consolidated result before tax, group s share, to be up in excess of 10% on Extract from FY 2014 results press release 26 February

28 D IETEREN > FY 2014 RESULTS Q&A 28

29 D IETEREN > FY 2014 RESULTS 29 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 forward-looking 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 forward-looking 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." 29

30 D IETEREN > FY 2014 RESULTS 30 For further information Financial Communication T.: F.: financial.communication@dieteren.be 30