GrandVision Full Year 2016 Results. 20 February 2017

Transcription

1 GrandVision Full Year 2016 Results 20 February 2017

2 Forward looking statements This presentation contains forward-looking statements that reflect GrandVision s current views with respect to future events and financial and operational performance. These forward-looking statements are based on GrandVision s beliefs, assumptions and expectations regarding future events and trends that affect GrandVision s future performance, taking into account all information currently available to GrandVision, and are not guarantees of future performance. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future, and GrandVision cannot guarantee the accuracy and completeness of forward-looking statements. A number of important factors, not all of which are known to GrandVision or are within GrandVision s control, could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement as a result of risks and uncertainties facing GrandVision. Any forward-looking statements are made only as of the date of this press release, and GrandVision assumes no obligation to publicly update or revise any forward looking statements, whether as a result of new information or for any other reason. 2

3 Full Year 2016 performance highlights Revenue of 3,316 million Revenue growth of 6.5% at constant exchange rates and 3.5% organic growth Revenue ( million) 3,205 3,316 Comparable growth of 2.2% (FY15: 4.1%) 6,516 stores at year-end Store network expanded by 406 to 6,516 Improved profitability Adjusted EBITDA ( million) Adjusted EBITDA 1 up 6.7% at constant exchange rates to 537 million (FY15: 512 million) Adjusted EBITDA margin growth of 24 bps to 16.2% EPS ( per share) Net result attributable to equity holders +8.8% to 231 million Adjusted EPS % to Adjusted EBITDA, EPS = EBITDA, EPS excluding non-recurring items EPS Adjusted EPS 3

4 Fourth Quarter 2016 performance highlights Revenue 821 million Revenue growth of 7.8% at constant exchange rates and 5.2% organic growth Revenue ( million) Comparable growth of 3.8% (4Q15: 2.2%) Adjusted EBITDA growth Adjusted EBITDA 1 up 15.4% at constant exchange rates to 126 million (4Q15: 111 million) Adjusted EBITDA margin growth of 115 bps to 15.3% driven by efficiency gains and a higher share of Exclusive Brand frames in the sales mix 4Q15 Adjusted EBITDA ( million) 111 4Q15 Adjusted EBITDA margin 4Q Q % 14.2% 4Q15 4Q16 4

5 Comparable growth development In the longer term, comparable growth is driven by favourable underlying market trends (i.e. aging population, growing middle classes), stable repurchase cycles and the fundamental need for eye care In the short-term comparable growth will be impacted by, among other, the timing of public holidays, own and competitors commercial activities, other short term impacts on retail traffic, such as weather, previous years comparables as well as the number of trading days Shift of Easter holiday into April (from 1Q to 2Q) Strong impact on 3Q retail traffic in general due to weather patterns 5.5% 4.8% 4.3% 4.1% 3.7% 3.6% 3.8% 2.2% 2.2% 1.6% 0.8% 0.9% 0.4% FY12 FY13 FY14 FY15 FY16 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 5

6 Solaris Update 2016 Highlights Opened approx. 1,000 new points of sale mostly corners within GrandVision s stores New operating structure Centralized all sunglass activities in Schiphol, Netherlands for improved integration with supply chain, marketing and operations 2,200 1, SHOP-IN-SHOP STAND ALONE POP-UP / MOBILE ONLINE 6

7 GrandVision Italy: One Brand, One Team, One Company 2016 Highlights Achieved revenue and comparable growth Launched GrandVision as national brand Shift from local to national media campaigns (traditional and digital) Store openings Designed scalable operational platform Rebranding progress 2H15 1H16 2H16 Avanzi Optissimo GrandVision 7

8 For Eyes Integration Update December 2015: Acquisition completed 2016 Achievements: Rebuilt management team Introduced GrandVision s assortment including Exclusive Brand frames and lens packages Introduction of GrandVision s Simple Sales Process (SSP) and value proposition Introduction of GrandVision brand identity Store refurbishments (ongoing) Stabilized performance of the business Developed marketing capabilities Priorities 2017: Further stabilize and build expansion platform Focus on comparable growth Continued roll-out of marketing plan, focusing on digital and social media Store openings 8

9 Market expansion in Mexico 2016 Highlights Important year for GrandVision Mexico Doubled store network through openings and acquisitions Achieved strong comparable growth Dual banner strategy Store network growth Mass market approach Exclusive Brands proposition Value for money Simple Sales Process High-end positioning International Brands offer Aspirational Focus on customer loyalty Customized Sales Process

10 Strategic priorities Strengthen and deploy group s global capabilities Drive further comparable growth Optimize the existing store network Expand in current markets, also through bolt-on acquisitions Enter new markets 10

11 Segment and Financial Performance

12 Segment Review: G Highlights Revenue growth of 2.6% at constant exchange rates, with organic revenue growth of 2.1% Comparable growth of 1.5% (FY15: 4.2%) Total number of stores increased from 2,990 to 3,020 G4 key figures FY16 4Q16 Revenue growth (constant rates) +2.6% +3.1% Revenue growth (organic) +2.1% +2.7% Comparable growth +1.5% +1.8% Adj. EBITDA growth (constant rates) +6.8% +12.2% Adj. EBITDA growth (organic) +6.2% +11.7% Adj. EBITDA margin 21.5% 21.4% Adj. EBITDA increased 6.8% at constant exchange rates, to 423 million, with organic adj. EBITDA growth of 6.2% Adj. EBITDA margin improved by 100 bps from 20.4% in FY15 to 21.5% in FY16 12

13 Segment Review: Other Europe 2016 Highlights Revenue growth of 3.5% at constant exchange rates, with organic revenue growth of 2.6% Comparable growth of 1.6% (FY15: 3.2%) Total number of stores increased from 1,750 to 1,818 Other Europe key figures FY16 4Q16 Revenue growth (constant rates) +3.5% +9.2% Revenue growth (organic) +2.6% +8.6% Comparable growth +1.6% +7.0% Adj. EBITDA growth (constant rates) +4.9% +16.0% Adj. EBITDA growth (organic) +3.9% +15.4% Adj. EBITDA margin 15.3% 15.2% Adj. EBITDA increased 4.9% at constant exchange rates to 138 million, with organic adj. EBITDA growth of 3.9% Adj. EBITDA margin increased by 18 bps from 15.1% in FY15 to 15.3% in FY16 13

14 Segment Review: Americas & Asia 2016 Highlights Revenue growth of 36.2% at constant exchange rates, with organic revenue growth of 13.0% Comparable growth of 7.4% (FY15: 6.6%) Total number of stores increased from 1,370 to 1,678 Americas & Asia- key figures FY16 4Q16 Revenue growth (constant rates) +36.2% +28.8% Revenue growth (organic) +13.0% +10.1% Comparable growth +7.4% +6.1% Adj. EBITDA growth (constant rates) +41.6% 43.2% Adj. EBITDA growth (organic) +119% +272% Adj. EBITDA margin +2.4% -1.6% Adj. EBITDA increased 41.6% at constant exchange rates to 11 million with organic adj. EBITDA growth of 119% Adj. EBITDA margin increased by 9 bps from 2.3% in FY15 to 2.4% in FY16 14

15 Adjusted EBITDA and margin development % 16.8% (excluding acquisitions) % 16.0% 15.3% 14.5% 14.8% Adjusted EBITDA ( million) Adjusted EBITDA margin (%) 15

16 2016 Adjusted EBITDA margin development 0.6% 0.3% 16.8% 16.0% 0.0% -0.6% -0.1% 16.2% Organic growth 2015 G4 Other Europe Americas & Asia Acquisitions Country mix excl. acquisitions 16

17 Strong Cash Flow generation x x x 2.1x x 1.4x Net cash from operating activities ( mm); Free Cash Flow ( mm) Net debt / Adj. EBITDA 1 Net cash from operating activities / EBITDA and Free cash flow / EBITDA 2 Net debt/ebitda ratio impacted by late in year acquisitions 17

18 Capital Expenditure Development Capex investments continue to increase in line with the growing business, staying at around 5% of revenue The increase in non-store capex in 2016 is due to investments in IT infrastructure, including global ERP system and omni-channel solutions % % 4.3% 5.6% 5.0% % % 5.0% 4.0% % % 1.0% Store capex Non-store capex Capex % revenue 0.0% 18

19 Financial objectives and dividend policy Medium term financial objectives Annual revenue growth rate >5% at constant exchange rates Average annual EBITDA growth in high single digits Net debt / EBITDA ratio of max. 2.0x Intention to pay ordinary dividend in line with medium to long-term financial performance Dividend policy One dividend payment per year Target to increase DPS over time Ordinary dividend payout ratio 25-50% 19

20 Questions and Answers 20

21 Annex 21

22 Consolidated Income Statement Consolidated Income Statement ( million) Revenue 3,316 3,205 Cost of sales and direct related expenses Gross profit 2,415 2,328 Selling and marketing costs -1,668-1,617 General and administrative costs Share of result of associates 4 5 Operating result Financial income 9 5 Financial costs Net financial result Result before tax Income tax Result for the year Attributable to: Equity holders Non-controlling interests

23 Summarized Consolidated Balance Sheet Summarized Consolidated Balance Sheet ( million) Property, plant and equipment Intangible assets 1,458 1,480 Other non-current assets Non-current assets 2,058 2,063 Inventories Other current assets Cash and cash equivalents Current assets Total assets 2,835 2,799 Total equity 1, Borrowings Other non-current liabilities Non-current liabilities 628 1,011 Trade and other payables Borrowings Other current liabilities Current liabilities 1, Total equity and liabilities 2,835 2,799 23

24 Consolidated Cash Flow Statement in thousands of EUR Cash flows from operating activities Cash generated from operations Tax paid Net cash from operating activities Cash flows from investing activities Acquisition of subsidiaries, net of cash acquired Purchase of property, plant and equipment Proceeds from sales of property, plant and equipment 5 7 Purchase of intangible assets Proceeds from sales of intangible assets 2 0 Investments in Associates and Joint Ventures 0 - Proceeds from sales of investments in buildings 0 - Other non-current receivables and assets -1 6 Dividends received 8 4 Interest received 5 5 Net cash used in investing activities Cash flows from financing activities Purchase of treasury shares Proceeds from borrowings Repayments of other borrowings Interest swap payments -3-3 Acquisition of non-controlling interest - -1 Dividends paid to non-controlling interests Dividends paid to shareholders Interest paid Net cash generated from/ (used in) financing activities Increase / (decrease) in cash and cash equivalents Movement in cash and cash equivalents Cash and cash equivalents at beginning of the year Increase / (decrease) in cash and cash equivalents Exchange gains/ (losses) on cash and cash equivalents -1-4 Cash and cash equivalents at end of year

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