Van de Velde NV

Earnings Release • Aug 30, 2023

30.08.2023 – 08u00 Regulated information – Half-year results 2023

Van de Velde realizes growth in turnover

• Van de Velde reports a comparable turnover of m€ 122.5, an increase of 4,3%.
• The comparable EBITDA amounts to m€37.6, a slight decrease of 0.6%, and corresponds to 30,7% of the comparable turnover.
• The cash position is m€ 50.2 thanks to a strong increase in net cash flow provided by operating activities.
• The net group profit of the period amounts to m€ 22.0, a decrease of 4.0%. This is the result of a decrease in the contribution to the participation in Top Form Ltd.

CONSOLIDATED KEY FIGURES PROFIT AND LOSS STATEMENT (PREPARED IN ACCORDANCE WITH IFRS AND AUDITED)

Consolidated key figures	30.06.2023	30.06.2022	%
Profit and loss statement (in m€)
Turnover (1)	120.6	114.4	5.5%
Operating profit before depreciation and amortization ('EBITDA') (3)	36.3	35.8	1.5%
EBIT or Operating profit	31.2	30.1	3.6%
Group profit	22.0	22.9	-4.0%
Turnover	120.6	114.4	5.5%
Effect of early deliveries	1.8	3.0
Turnover on a comparable basis (2)	122.5	117.4	4.3%
EBITDA on a comparable basis (2)	37.6	37.8	-0.6%

Our CEO Karel Verlinde looks back on the first half of 2023:

"In a volatile economic environment, Van de Velde continued to invest in strengthening its brands and its organization. In doing so, we managed to grow sales in both the B2B and B2C segment. This was realized with a strong growth in net cash position."

(3) EBITDA equals operating profit plus depreciation and amortization of intangible and tangible fixed assets.

⁽¹⁾ The turnover in the first half of the year includes the swim collection, which leads to a higher turnover compared to the second half of the year.

⁽²⁾ Turnover and EBITDA on a comparable basis are the turnover and EBITDA adjusted for the effect of early deliveries in order to show the same seasons. In 2023, this adjustment was m€ 1.8, being the invoiced turnover in 2022 for deliveries of the 2023 summer collection, corrected with the invoiced turnover in 2023 H1 for deliveries of the 2023 winter collection. In 2022 this was a correction of m€ 3.0, being the invoiced turnover in 2021 for deliveries of the 2022 summer collection, corrected with the invoiced turnover in 2022 H1 for deliveries of the 2022 winter collection.

TURNOVER

On a comparable basis (including comparable seasonal deliveries), the consolidated turnover increases by 4.3% in 2023 H1 to m€ 122.5. The reported turnover increases more sharply (+5.5%) from m€ 114.4 to m€ 120.6.

This comparable turnover evolution consists of the following components:

In m€	30.06.2023	30.06.2022	%
Turnover B2B segment (1)	95.2	92.0	3.4%
Turnover D2C segment (2)	25.5	22.3	14.1%
Total turnover	120.6	114.4	5.5%
Early deliveries winter collection H1 2023 and 2022	-3.5	-1.9
Early deliveries summer collection H2 2022 and 2021	5.4	5.0
Comparable Turnover B2B segment	97.0	94.9	2.2%
Comparable Turnover D2C segment	25.5	22.4	13.6%
Total comparable turnover	122.5	117.4	4.3%

In the second half of 2022 store visit volumes declined due to lower consumer confidence. Nevertheless, Van de Velde continued its investments in an optichannel consumer experience during the first half of 2023. This led to a growth in comparable sales of 4.3%.

• In both segments, swim sales grew significantly for the second consecutive year.
• In the D2C segment there is a "double-digit" growth of 13.6% on a comparable basis thanks to investments in our brands.
• The B2B segment grew less strongly (+2.2%) in the first half of the year, partly as a result of high inventory levels end 2022 at our independent retail partners.

EBITDA

On a comparable basis (including comparable seasonal deliveries), consolidated EBITDA in 2023 H1 amounts to m€ 37.6 compared to m€ 37.8 in 2022 H1. The reported EBITDA increases by 1.5% in 2023 H1 from m€ 35.8 in 2022 H1 to m€ 36.3. The EBITDA on a comparable basis corresponds to 30.7% of the turnover compared to 32.2% in 2022 H1.

This EBITDA is the result of a positive effect of a turnover increase, compensated by additional marketing expenses as well as higher write-downs of inventories.

FINANCIAL RESULT

The financial result amounts to -m€ 0.7 in 2023 H1 compared to -m€ 0.5 in 2022 H1. The difference of m€ 0.2 is mainly explained by:

• Profits and losses from conversions. These end m€ 0.4 lower than in 2022 H1.
• Financial revenues. These end m€ 0.2 higher than in 2022 H1 thanks to increased interest rates.

⁽1) The B2B segment refers to sales realized at wholesale price. Today this concerns the business with independent retail and e-tail partners, franchisees and department stores.

⁽²⁾ The D2C segment refers to sales realized at retail price. Today this concerns the business from our own store network, our own websites and the concession sales in department stores.

SHARE OF RESULT 'EQUITY PICK-UP'

The estimated result in the first half of 2023 of the participation (25.66%) in Top Form International Ltd. based on the 'equity'-method is -m€ 2.1 compared to m€ 0.1 in the first half of 2022.

The final results will be published by Top Form International Ltd. on 28 September 2023.

INCOME TAX AND NET PROFIT

The tax rate amounts to 21.2%, compared to 22.8% in 2022 H1.

The group profit amounts to m€ 22.0 in 2023 H1 compared to m€ 22.9 in the first half of 2022.

CONSOLIDATED KEY FIGURES BALANCE SHEET (PREPARED IN ACCORDANCE WITH IFRS AND AUDITED)

Consolidated key figures	30.06.2023	30.06.2022	%
Balance sheet (in m€)
Fixed assets	72.6	71.1	2.2%
Current assets	123.1	127.9	-3.8%
Total assets	195.7	199.0	-1.6%
Equity	156.3	158.2	-1.2%
Grants	0.2	0.2
Total non-current liabilities	8.6	9.2	-6.8%
Total current liabilities	30.6	31.4	-2.3%
Total equity and liabilities	195.7	199.0	-1.6%

INVESTMENTS

Capital expenditure (excluding right of use assets) amounts to m€ 5.7 in 2023 H1, compared to m€ 3 in 2022. These investments primarily relate to the further development of digital platforms and logistic systems as well as the completion of our new production site in Tunisia.

WORKING CAPITAL AND SOLVENCY

Working capital (current assets excluding cash and cash equivalents less current liabilities excluding financial debts) amounts to m€ 45.2 in 2023. The net cash flow provided by operating activities increased to m€ 32.5 as a result of lower inventory levels. This corresponds to an increase of 113.8% compared to 2022 H1.

The solvency (share of equity in total equity) of Van de Velde remains high (79.9%). The current assets amount to four times the current liabilities, which indicates a strong liquidity.

EVENTS AFTER THE BALANCE SHEET DATE

Van de Velde appoints Wim Schelfhout as Chief Financial Officer as of 1 November 2023. Wim holds a degree in Commercial Engineering from KU Leuven and a Masters in Finance and Accounting from the EHSAL Management School. He started his career in 2003 at Honeywell and held several financial positions. In 2017, Wim became Finance Manager at Etex and in 2020 Chief Financial Officer at Lamifil.

PROSPECTS

The economic environment remains uncertain, but Van de Velde continues to invest with full confidence in developing a complementary brand portfolio, with a long-term focus.

SHARE BUY-BACK PROGRAMME

On 1 March 2023, the Board of Directors approved another share buy-back programme for a maximum amount of m€ 15. The buy-back programme started on 2 March 2023 and has a planned duration of one year. The goal of this buy-back programme is to reduce the cash surplus of the company.

The purchases are made in accordance with the applicable laws and regulations and within the framework of the mandate granted by the Extraordinary General Meeting of 27 April 2022. The programme is carried out by an independent broker with a discretionary mandate, which means that the purchases take place in both open and closed periods. Van de Velde regularly provides information about the purchase transactions carried out.

In 2023, 129.932 shares were purchased as part of this programme to a value of €m 4.4. In total, 465.821 shares are in possession of Van de Velde on 30 June 2023.

CONSOLIDATED KEY FIGURES HALF-YEAR REPORT

The exhaustive financial report (including regulated information and the statement of limited supervision of the commissioner) can be consulted through this link.

Van de Velde creates fashionable lingerie of superior quality with its premium, complementary brands PrimaDonna, Marie Jo and Andres Sarda. We believe in 'we ignite the power in women': we want to make a difference in women's lives with our beautiful and perfectly fitted lingerie, by lifting their self-confidence and self-image. For us, an impeccable in-store service is key, an approach which we have consolidated in our Lingerie Styling Concept.

We work in close partnership with 3.600 independent lingerie boutiques worldwide. In addition, we have our own retail network with retail brands Rigby & Peller and Lincherie. Our geographical center of gravity is Europe and North America. Van de Velde employs almost 1,500 employees and is listed on Euronext Brussels.

CONTACTS

For more information, you can get in touch with:

Van de Velde NV - Lageweg 4 - 9260 Schellebelle - +32 (0)9 365 21 00 - www.vandevelde.eu

Herman Van de Velde NV, always represented by Herman Van de Velde President Board of Directors Karel Verlinde CommV, always represented by Karel Verlinde CEO