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Aeffe
Investor Presentation • Nov 13, 2019
4140_ir_2019-11-13_3565522c-c41c-4136-958d-ff09dd128709.pdf
Investor Presentation
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AEFFE 9M 2019 Consolidated Financial Results Presentation 13th November 2019
Consolidated Revenues +1.4% at € 269.0m, (+1.7% at current exchange rates);
Consolidated EBITDA net of IFRS 16 effect for € 33.8m (12.6% of sales), compared to an EBITDA of € 37.1m (14.0% of sales) in 9M 2018
Net Profit for the Group net of IFRS 16 effect at € 13.4m, compared to a Net Profit of €16.1m in 9M 2018
Consolidated Financial Debt net of IFRS 16 effect of € 42.2m, compared to € 39.1m as of 30 September 2018, with a € 3.1m increase (€ 31.3m as of 31 December 2018)
239 Mono Brand Stores
First-time application of the new Lease standard IFRS 16 from January 1st, 2019
Net Sales Breakdown by Division(1)
Net Sales Breakdown by Brand
Net Sales Breakdown by Region
1Q (1) ITALY sales incidence on total revenues ADJUSTED by foreign customers effect and royalties income is estimated equal to 37% and 39% in 9M 2019 and in 9M 2018 respectively.
(2) Italy excluded
* At constant exchange rates
2Q
3Q
5
Net Sales Breakdown by Channel
* At constant exchange rates
1Q 2Q 3Q
Mono-brand Stores Network
| DOS | ||
|---|---|---|
| 9M19 | FY18 | |
| Europe | 43 | 44 |
| America | 3 | 2 |
| Asia | 17 | 18 |
| Total | 63 | 64 |
Franchising
| 9M19 | FY18 | |
|---|---|---|
| Europe | 41 | 45 |
| America | 1 | 1 |
| Asia | 134 | 138 |
| Total | 176 | 184 |
Income Statement – 9M 2019/2018
(€m)
| 9M 19 including | IFRS 16 effects | 9M 19 excluding | ||
|---|---|---|---|---|
| IFRS 16 effects | (See Note 1) | IFRS 16 effects | 9M 18 | |
| Net Sales | 269,0 | 269,0 | 264,6 | |
| % change | 1,7% | 1,7% | ||
| Other Revenues | 6,4 | 6,4 | 3,3 | |
| Total Revenues | 275,4 | 275,4 | 267,9 | |
| % change | 2,8% | 2,8% | ||
| Raw Materials Costs | (86,0) | (86,0) | (85,3) | |
| Service Costs | (79,8) | (79,8) | (73,2) | |
| Costs for use of third parties | (7,0) | (12,3) | (19,3) | (19,4) |
| Personnel | (53,3) | (53,3) | (50,4) | |
| Other Operating Expenses | (3,2) | (3,2) | (2,5) | |
| Total Operating Expenses | (229,3) | (241,6) | (230,8) | |
| EBITDA | 46,1 | (12,3) | 33,8 | 37,1 |
| Margin (% of Net sales) | 17,1% | 12,6% | 14,0% | |
| Depreciation and Amortisation | (20,1) | 10,9 | (9,2) | (9,4) |
| EBIT | 26,0 | (1,4) | 24,6 | 27,7 |
| Margin (% of Net sales) | 9,7% | 9,1% | 10,5% | |
| Net Financial Income / (Expenses) | (1,9) | 1,6 | (0,3) | (0,7) |
| Profit before taxes | 24,1 | 0,2 | 24,3 | 27,0 |
| Margin (% of Net sales) | 9,0% | 9,0% | 10,2% | |
| Taxes | (10,5) | (0,1) | (10,6) | (10,0) |
| Net income/(loss) before Minorities | 13,6 | 0,1 | 13,7 | 17,0 |
| Margin (% of Net sales) | 5,1% | 5,1% | 6,4% | |
| Minority Interests | (0,4) | 0,0 | (0,4) | (0,9) |
| Net Income/(Loss) for the Group | 13,2 | 0,1 | 13,4 | 16,1 |
| Margin (% of Net sales) | 4,9% | 5,0% | 6,1% | |
Note 1: IFRS 16 effects on Profit & Loss statement:
Lease installments are cancelled from Costs for use of third parties for €12.3m; €10.9m are posted as Amortisation of right of use assets and €1.6m as Financial charges linked to the financial debt for leasing.
Summary Balance Sheet
(€m)
| 9M 19 | FY 18 | 9M 18 | |
|---|---|---|---|
| Net Working Capital | 113,0 | 85,7 | 90,4 |
| Net Tangible Assets | 60,9 | 60,3 | 59,6 |
| Net Intangible Assets | 76,9 | 103,1 | 105,3 |
| Net Intangible Assets for Rights of use - IFRS 16 (see Note 2) | 123,3 | ||
| Net Financial Assets | 2,8 | 2,9 | 3,2 |
| Severance Staff, Provisions & Others | (20,8) | (23,3) | (23,1) |
| Net Capital Employed | 356,1 | 228,7 | 235,4 |
| Group Shareholders' Equity | 173,6 | 164,6 | 163,0 |
| Minorities | 32,6 | 32,8 | 33,2 |
| Shareholders' Equity & Minorities | 206,2 | 197,4 | 196,3 |
| Net financial Debt | 42,2 | 31,3 | 39,1 |
| Net financial debt for Lease liabilities - IFRS 16 (see Note 2) | 107,7 | ||
| Net Financial Debt and Shareholders' Equity | 356,1 | 228,7 | 235,4 |
| Accounts Receivables | 49,1 | 43,1 | 48,5 |
| Accounts Payables | (60,5) | (76,9) | (60,8) |
| Inventory | 108,7 | 104,3 | 96,6 |
| Operating NWC | 97,3 | 70,5 | 84,3 |
| As % of LTM sales | 27,7% | 20,3% | 24,6% |
| Other Current Assets/Liabilities | 15,7 | 15,2 | 6,1 |
| Net Working Capital | 113,0 | 85,7 | 90,4 |
Note 2: IFRS 16 effects on Balance Sheet: - Fixed Assets increase of €123.3m from the right to use the leased assets (including the reclassification of €23.0m relating to the key money previously recorded in "Intangible assets");
- Financial debt for Lease liabilities for €107.7m posted in Financial liabilities
Summary Cash Flow
(€m)
| 9M 19 | FY 18 | 9M 18 | |
|---|---|---|---|
| PBT | 24,1 | 28,8 | 27,0 |
| Operating Cash Flow | 7,1 | 25,5 | 16,4 |
| Capital Expenditure | (6,0) | (7,9) | (5,5) |
| Capital Expenditure for Rights of use - IFRS 16 | (1,1) | ||
| Free Cash Flow | 1,1 | 17,6 | 11,0 |
| Cash Flows from Financing Activities | (3,3) | (12,4) | (5,3) |
| Cash and cash equivalents at the beginning of the year | 28,0 | 22,8 | 22,8 |
| Cash Flow of the Period | (3,4) | 5,2 | 5,6 |
| Cash and cash equivalents at the end of the year | 24,6 | 28,0 | 28,4 |
Appendices
Income Statement – Full Year 2016-2018
(€m)
| 2018A | 2017A | 2016A | |
|---|---|---|---|
| Net Sales | 346,6 | 312,6 | 280,7 |
| % change | 10,9% | 11,4% | 4,4% |
| Other Revenues | 5,4 | 3,8 | 6,8 |
| Total Revenues | 352,0 | 316,4 | 287,5 |
| % change | 11,2% | 10,1% | 4,9% |
| Raw Materials Costs | (110,3) | (96,1) | (90,7) |
| Service Costs | (100,6) | (91,0) | (81,3) |
| Cost for use of third parties assets | (25,4) | (23,3) | (22,8) |
| Personnel | (68,5) | (65,3) | (63,5) |
| Other Operating Expenses | (3,9) | (4,1) | (4,0) |
| Total Operating Expenses | (308,7) | (279,8) | (262,3) |
| EBITDA | 43,3 | 36,6 | 25,2 |
| Margin (% of Net sales) | 12,5% | 11,7% | 9,0% |
| Depreciation and Amortisation | (13,7) | (13,9) | (15,1) |
| EBIT | 29,6 | 22,7 | 10,1 |
| Margin (% of Net sales) | 8,5% | 7,3% | 3,6% |
| Net Financial Income / (Expenses) | (0,9) | (3,7) | (1,8) |
| PBT | 28,7 | 19,0 | 8,3 |
| Margin (% of Net sales) | 8,3% | 6,1% | 3,0% |
| Taxes | (11,6) | (7,4) | (4,0) |
| Net income before Minorities | 17,1 | 11,5 | 4,4 |
| Margin (% of Net sales) | 4,9% | 3,7% | 1,6% |
| Minority Interests | (0,4) | (0,0) | (0,7) |
| Net Income for the Group | 16,7 | 11,5 | 3,6 |
| Margin (% of Net sales) | 4,8% | 3,7% | 1,3% |
Company Profile
Share Information Investor Relations
N° of shares outstanding: 107,362,504
Italian Stock Exchange – STAR Segment
Specialist: Mediobanca S.p.A.
Tickers: AEF IM (Bloomberg) AEF MI (Reuters), AEF (Borsa Italiana)
Investor Relations
AEFFE S.p.A
Annalisa Aldrovandi
+39 0541 965494
www.aeffe.com
Disclaimer
This presentation is being furnished to you solely for your information on a confidential basis and may not be reproduced or redistributed to any other person.
This presentation does not constitute or form part of any offer to sell or invitation to purchase or subscribe for, or otherwise acquire or dispose of any Aeffe S.p.A. securities.
This presentation includes forward-looking statements which are based on the Company's management's current views with respect to future events and financial and operational performance of the Company and its subsidiaries. These forward-looking statements are subject to risks and uncertainties. In light of these risks and uncertainties, the events described in such forward-looking statements may not occur and any targets or projections may differ materially from those expressed in or implied by these statements due to any number of different factors.
You are cautioned not to place undue reliance on the forward-looking statements contained herein, which are made only as of the dater of this presentation. Aeffe S.p.A. does not undertake any obligation to publicly release any updates or revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation.
Any reference to past performance or trends or activities of Aeffe Group shall not be taken as a representation or indication that such performance, trends or activities will continue in the future.
