Silvano Fashion Group Q4 and 12m 2010 Highlights.

Transcription

1 Silvano Fashion Group Q4 and 12m 2010 Highlights g

2 SFG Facts and Figures OVERVIEW Sales 93,292 74,044 EBITDA 19,415 6,052 EBITDA margin 20.8% 8.2% Net profit 15, Net profit margin 16.1% 1% -1.2% 12% Net profit attributable to equity holders 12,240-2,468 Net margin to equity holders 13.1% -3.3% 31/12/10 31/12/09 Working capital 18,399 18,452 Cash balance 21,468 9,838 Debt (borrowings and leases) 36 1,805 Equity 53,016 40,009 Total assets 65,085 54,352 Operating cash flow 16,853 11,754 CAPEX 2,419 1,455 Employees 3,193 3,164 Wholesales: Pcs sold (Milavitsa) '000 17,138 14,838 Pcs sold (Lauma) '000 1, Retail: Number of own shops Number of franchising shops

3 Silvano Fashion Group - key strengths Leading lingerie company in a market with over 100M target customers Strong distribution and retail presence in CIS countries Leading regional brands Over 100M women aged 15+ in Russia, Ukraine, Belarus, Kazakhstan and Baltics Over 25% market share in Belarus, a market leader with 5% share in Russia and #1 by sales in Ukraine and Kazakhstan Extensive wholesale coverage in CIS countries, with 40+ regional dealers and distributors 50 own and around 362 partner-owned retail shops in 16 countries, mainly in Russia, Ukraine, Belarus and Baltics Milavitsa is the most recognized lingerie brand in whole CIS region Lauma is the most recognized lingerie brand in Latvia and commands high level of recognition in the Baltics, Russia and Ukraine Very strong own and outsourced manufacturing capacity in Belarus Capacity for 17 million pieces in own and 16 outsourced production facilities in Belarus, affordable production growth opportunities Low production costs with closeness to key markets Profitable business with very low level of debt 12m 2010 EBITDA of 19.4 meur 12m 2010 net profit 15.1 meur 12m 2010 net profit attributable to shareholders 12.2 meur 3

4 Historical Business Development Privatization (80% by employees) IPO on Tallinn Stock Exchange AS Alta Capital acquired the company Manufacturing business transfered to AS Klementi Sale of PTA ESTONIA E PTA Reorganization completed, foreign investors (including EBRD) acquire 20% Silvano acquired 64% of Milavitsa IPO on Warsaw Stock Exchange Silvano owns 78% of Milavitsa Sale of Linret LT BELARUS MILAVITSA LATVIA LAUMA AS Lauma joint venture established SIA Alta Capital acquires AS Lauma Lauma Lingerie established (carve out of AS Lauma) Silvano acquired 100% of Lauma Lingerie Linret LT acquisition Retail strategy reassessment

5 SFG in brief Group structure by activities PRODUCTION WHOLESALE RETAIL Milavitsa STK TKM Belarus Russia Belarus (63% outsourced) Lauma Lingerie Latvia (56% outsourced) Gimil Belarus Junona Belarus Linret Russia TKM Belarus UTK (associate) Ukraine Linret Russia 5

6 SFG in brief Legal Structure AS Silvano Fashion Group Lauma Lingerie AS Milavitsa SP ZAO France Style Lingerie s.a.r.l. Latvia 100% Belarus 78.35% 49% France 100% SP Gimil OOO Belarus 52% Stolichnaja Torgovaja Kompanija Milavitsa ZAO Russia 100% Junona OAO Belarus 58.33% Torgovoja Kompanija Milavitsa SOOO Belarus 51% Milavitsa Logistic OOO 49% Belarus 51% OU Linret EST Estonia 100% Linret ZAO Russia 100% 6

7 Markets & Brands 5

8 Market and Competition 65.7 Main markets Female aged 15+ in 2008, in millions M+ potential customers Russia Ukraine Kazahstan Belarus Baltics Income Chantelle Triumph Market share Estimated markets share: Belarus: 30%+ Russia: 5-7% Ukraine: 3-4% Main competition, products Palmetta, Lilly, Lormar in Russia Triumph, Rosme in Baltics Main competition, retail chains Wild Orchid group (Bustier, Defile stores), Incanto, Palmetta in Russia 75B retail chain in Ukraine Triumph in Baltics Lauma Milavitsa Cheap China/ Turkey/CIS Intimissimi Age 8

9 Revenue Breakdown in 2010 Lingerie 99.6% Subcontracting 04% 0.4% Wholesales Retail 82.4% of lingerie sales in % of lingerie sales in 2010 (2009: 76.3%) (2009: 23.7%) Top Wholesales Distributors: Branded retail outlets STK Milavitsa (Russia) TK Milavitsa (Belarus) TK Milavitsa (Ukraine) Milavitsa 42 directly operated stores 348 stores owned and operated by independent trading partners 82.3% in lingerie wholesale in 2010 Lauma Lingerie 8 directly operated stores (2009: 83.9%) 14 stores owned and operated by independent trading partners 9

10 Lingerie sales by regions Sales by regions EUR mill Russia Belarus Ukraine Baltics Other

11 Product Brand Portfolio Milavitsa Belarus Lauma Lingerie Latvia 11

12 Lingerie Sales by Trademarks 12

13 Operations 11

14 Production Model OWN PRODUCTION FACILITIES ALLOW FOR FASTER RESPONSE TO CHANGING CUSTOMER DEMAND Lingerie factory in Liepaja, Latvia 1 sourcing gpartner in China LINGERIE 2010 Outsourced Own production 62% 38% Lingerie factory in Minsk, Belarus 16 sourcing partners in Belarus WHILE MAINTAINING OWN PRODUCTION FACILITIES SHARE OF OUTSOURCING WILL BE INCREASING 14

15 Lingerie Retail Network as of Baltics 8 own shops 14 franchising 42 own shops 5 franchising Russia 228 franchising Ukraine Other Milavitsa franchising shops by countries # Moldavia 19 Kazakhstan 5 Azerbaijan 4 Uzbekistan 4 Kirgizstan 3 Armenia 2 Latvia 1 Cyprus 1 Germany 1 Georgia 1 Slovenia 1 50 own lingerie shops in operation 9 new own lingerie stores opened in 2010 (4 Lauma Lingerie, 5 Mailavitsa) 4 own Milavitsa shops closed in stores transferred to Milavitsa trading partners 25 franchising stores opened in Q (23 Milavitsa, 2 Lauma Lingerie) Retail development put on hold Focus on franchising opportunities Belarus 73 franchising no. of lingerie retail shops Q Q Q Q , ,000 6,000 4,000 2,000 0 lingerie retail space, sqm 7,733 6,713 5,523 4,383 4,126 4,099 4, Q Q Q Q own franchising 15

16 Retail Brand Portfolio (Directly operated stores) TK Milavitsa Belarus Lauma Lingerie Latvia 16

17 Personnel 2010 vs

18 Financials & Business Development 16

19 SFG Consolidated IS 2010 ACTUAL PREVIOUS YEAR SFG Consolidated IS, TEUR Variances abs % NET SALES 93,292 74,044 19, % COST OF GOODS SOLD -56,132-41,862-14, % GROSS PROFIT 37,160 32,182 4, % Gross profit margin 39.8% 43.5% Selling expenses -9, ,464 1, % Administration expenses -8,146-10,226 2, % Other income 1,176 1, % Other expenses -2,546-7,843 5, % Total operating expenses -19,502-28,319 8, % OPERATING PROFIT/EBIT 17,658 3,863 13, % Operating profit / EBIT margin 18.9% 5.2% Interest expense % Foreign currency exchange income/loss % Other financial income/expense 1, % Share of profit of equity accounted investees % Company income tax -4,292-3, % GAIN/LOSS FROM CONTINUING OPERATIONS 15,064 1,391 13, % Net margin from continuing operations 16.1% 1.9% Loss from discontinued operations 0-2,303 2, % NET PROFIT 15, , % Net margin 16.1% -1.2% Net profit attributable to parent company 12,240-2,468 14, % Net profit attributable to minority shareholders 2,824 1,556 1, % Add back : depreciation 1,757 2, % EBITDA 19,415 6,052 13, % EBITDA margin 20.8% 8.2% 19

20 IS split to Lingerie Wholesales and Retail 2010 IS, TEUR Wholesale Lingerie 2010 Retail lingerie Variances (%) Wholesale vs 2009 Variances (%) Reatil vs 2009 NET SALES 76,536 16, % -5.4% OPERATING PROFIT/EBIT 17, % % Operating profit / EBIT margin 22.5% 3.1% Financial income/expense 1, % % Share of profit of equity accounted investees % 0.0% Company income tax -3, % 91.8% NET PROFIT 14, % % Net margin 19.0% 1.2% EBIT 17, % % Add back : depreciation -1, % -59.7% EBITDA 18, % % EBITDA margin 24.3% 4.7% 20

21 Financial Performance 2010 The Group s sales in 2010 amounted to EUR 93,292 thousand representing a 26.0% increase as compared to Considerable growth demonstrated t d by Belarusian, Russian and Ukrainian markets. Gross margin from continuing operations in 2010 was 39.8% (2009: 43.5%) as the result of higher customs duties on materials imported by the Group from the EU after Belarus joining the Customs Union with Russia and by the decline of the proportion p of retail sales in total sales. As the result of increase in sales EBITDA was higher than in 2010 by EUR 3,271 thousand EBITDA was as well adversely influenced by one-off expenses. Net profit from continuing operations amounted to EUR 15,064 thousand (EUR 13,673 thousand above last year). Net profit increased by EUR 15,976 thousand. Reasons as above plus positive foreign currency exchange gain in the amount of EUR 805 thousand. 21

22 Consolidated Balance Sheet ASSETS (IN EUR MILL.) 31/12/10 % 31/12/09 % Non-current assets % % Current assets: % % Inventories % % 3% Trade receivables % % Other current assets % % Cash and cash equivalents % % Assets % % EQUITY AND LIABILITIES (IN EUR MILL.) 31/12/10 % 31/12/09 % Equity % % Borrowings % % Trade payables % % Other liabilities % % Equity and liabilities % % Working capital

23 Financial position Consolidated assets amounted to EUR 65,085 thousand representing an increase of 19.7% as compared to the position as of 31 December Inventory balance decreased by EUR 1,227 thousand as compared to the position as of 31 December 2009 which is mainly explained by optimization of stock levels in the distribution and retail companies of the Group. Trade receivables increased by EUR 1,230 thousand as compared to the position as of 31 December 2009 which is mainly driven by increase in sales. Equity attributable to equity holders increased by EUR 10,734 thousand and amounted to EUR 42,042 thousand. Current liabilities decreased by EUR 1,922 thousand as compared to 31 December 2009 in line with management expectations. The liquidity position of the Group improved in Current and non-current loans and borrowings decreased by EUR 1,769 thousand as of 30 December 2010 to EUR 36 thousand. In Q the Group settled an overdraft facility of AS Lauma Lingerie that amounted to EUR 925 thousand as of 31 March

24 Share buyback On 9 November 2010 the Extraordinary General Meeting approved the Supervisory Council s proposal to start t a share buyback b program under the following conditions: SFG is entitled to buy back its own shares from the date of the approval of the buyback until 30 June 2011; The total nominal value of own shares to be bought back may not exceed 3,960,700 shares, i.e 10% of total share capital of SFG; The maximum price payable by SFG for one share to be 4.00 EUR; The maximum amount payable by SFG for its own shares to be 15,842,800 EUR; Own shares to be paid for with assets exceeding the share capital, compulsory reserves and share premium. The buyback period started on 15 November During the period from 15 November 2010 to 7 January 2011 number of shares bought back amounted to 133,629, average price per share amounted to EUR resulting in total cost of 370,911 EUR. After the transactions listed above, AS Silvano Fashion Group owns 133,629 of its own shares, which constitute 0.34% of the share capital. The maximum amount of shares that remains to be bought back is 3,827,

25 Buyback of shares of SP ZAO Milavitsa On 21 May 2010 the parent company of the Group approved the share buy-back program of SP ZAO Milavitsa, it the largest subsidiary of the group. The terms of the program permit a buy-back of up to 1,967 shares of SP ZAO Milavitsa, representing up to 20% of all shares in SP ZAO Milavitsa In the period between June 2010 and February 2011 with the objective of subsequent cancellation of shares; the offered price per share is 3,000,000 BYR. As of 27 January 2011, 256 shares have been acquired constituting 2.60% of all shares in SP ZAO Milavitsa. The shares have not yet been cancelled and the cancellation decision is subject to SP ZAO Milavitsa AGM decision 25

26 For further information please contact 25