Fila — Investor Presentation 2016

Mar 21, 2017

Informazione Regolamentata n. 1565-3-2017		Data/Ora Ricezione 21 Marzo 2017 17:49:28	MTA - Star
Societa'	:	FILA
Identificativo Informazione Regolamentata	:	86632
Nome utilizzatore	:	FILASPAN01 - De Rosa
Tipologia	:	AVVI 16
Data/Ora Ricezione	:	21 Marzo 2017 17:49:28
Data/Ora Inizio Diffusione presunta	:	21 Marzo 2017 18:04:29
Oggetto	:	FILA FY2016 RESULTS
Testo del comunicato

Vedi allegato.

Disclaimer

This document has been prepared by F.I.L.A. S.p.A. ("F.I.L.A." or the "Company"), for information purposes only, exclusively with the aim of assisting you to understand and assess the activities of F.I.L.A..

Statements contained in this presentation, particularly regarding any possible or assumed future performance of the FILA Group, are or may be forward-looking statements based on FILA's current expectations and projections about future events.

Such forward-looking statements are subject to risks and uncertainties, the non-occurrence or occurrence of which could cause the actual results including the financial condition and profitability of FILA to differ materially from, or be more negative than, those expressed or implied by such forward-looking statements. Consequently, FILA and its management can give no assurance regarding the future accuracy of the estimates of future performance set forth in this document or the actual occurrence of the predicted developments.

The data and information contained in this document are subject to variations and integrations. Although FILA reserves the right to make such variations and integrations when it deems necessary or appropriate, FILA assumes no affirmative disclosure obligation to make such variations and integration, except to the extent required by law.

Any reference to past performance of the FILA Group shall not be taken as an indication of future performance.

In addition, this presentation includes certain ''Adjusted'' financial and operating indicators and other measures, which have been adjusted to reflect extraordinary events, non-recurring transactions and activities which are not directly related to the Group's ordinary business. Such "Adjusted" information has been included to allow a better comparison of financial information across the periods; however, it should be noted that such information are not recognized as measures of financial performance or liquidity under IFRS and/or do not constitute an indication of the historical performance of the Company or the Group. Therefore, investors should not place undue reliance on such data and information.

This document does not constitute or form part of any offer or invitation to purchase or subscribe any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

By attending this presentation, you agree to be bound by the foregoing terms. 2

FILA closes FY2016 with a increase of sales in all the reference markets, primarily Centre & South America, in particular Mexico, Europe and North America.

• Core Business Sales at 422,6mln €, +53,5% (organic growth, +9,3%)
• increasing demand from Education and Art & Craft channels
• Significant growth of the Other Creativity Instruments product line of +15,7%
• Positive contribution of M&A of 133,3mln €
• FX negative contribution of 11,8mln €
• Group market share increase thanks to the Art & Craft segment acquisition and the subsequent distribution sinergies

• Adjusted EBITDA at 67,2mln €, +41,2%, with an organic growth of 12,8% registering an increase more than proportional than the Sales organic growth.

• Adjusted Net Profit at 28,2mln €

• Net Financial Position at 223,4mln € at the end of December 2016, mainly affected by M&A effect of 204,8mln € related to Daler & Rowney Group, St. Cuthberts and Canson acquisitions. Working Capital Improvement by approx 20mln € compared FY2015

FY2016 Core Business Sales

• Core Business Sales +53,5% (+147,3mln €). Organic growth, +25,7mln € (+9,3 %), net of M&A and FX effect, of which:

•By Geographic Area: mainly Centre-South America, +10,5mln € (+19,3%), Europe +6,9mln € (+5,5%), North America +3,9mln € (+4,6%) and Asia +3,8mln € (+42,9%)

•By Product line: Other Creativity Instruments +15,5mln € (+15,7%), Pencils +6,5mln € (+5,1%), Office and Industrial Products of + 3,7mln € (+8,9%)

•M&A effect 133,3 mln € (37,7mln € WFPL/Pioneer, 72,6mln € D&R Group, 21,4 mln € Canson Group and 1,6mln € St Cuthberts Mill)

SALES BY PRODUCT LINE SALES BY MARKETING DIVISION

SALES BY GEOGRAPHICAL AREA

4

FY2016 EBITDA

ADJUSTED EBITDA

• Adjusted EBITDA + 19,6mln € (+41,2%), Organic Growth + 6,1mln € (+12,8%), net of M&A and FX effect, more than proportional than the Organic Turnover Growth
• 10,4mln € of extraordinary costs in 2016A, mainly related to the M&A activities and reorganization cost
• 5,8mln € of extraordinary costs in 2015A, mainly related to the Space S.p.A merger and listing expenses.
• M&A effect of 14,7 mln € (5,6mln € WFPL/Pioneer, 7,8mln € D&R Group, 0,7mln € Canson Group and 0,6mln € St Cuthberts Mill)

ADJUSTED EBITDA BREAKDOWN BY GEOGRAPHICAL AREA

FY2016 Net Income and Net Financial Position

ADJUSTED NET INCOME

38,7 18,6 204,8 38,7 223,4 (€ million) M&A effect +184,7 mln €

ADJUSTED NET FINANCIAL POSITION

2015A 2016A

Net debt change of 184,7mln € mainly due to:

• Negative M&A effect of 204,8mln €, mainly related to shares acquisition (16,9mln € for Daler & Rowney Group, 61mln € for Canson Group, 6,7mln € for St Cuthberts Paper Mill €) and Net Debt contribution (86,7mln € Daler & Rowney Group, 32,7 mln € Canson Group and 0,5 mln € Piooner)
• Capex for 12,4 mln € due to new investment in tangible and intangible assets
• Interest paid for 5,8mln €

effects

• Dividend paid for 4,5mln €
• Operating Cash Flow +40,5 mln €
• FX effect +1,1mln €

6

acquisition (+13,9mln Euro) process, plus extraordinary operating costs, net of taxes effects

• The normalization of the Group Result in 2016A refers mainly to M&A extraordinary operating costs, net of taxes

• Normalization made in 2015A at the Group Result level refers mainly to the non-recurring financial items related to the accounting of the fair value of Space S.p.A. equity at May

Appendix

7

FY2016 Income Statement

(€ million)	2015A	% on Sales	2016A	% on Sales
PROFIT & LOSS
Core Business Sales	275,3		422,6
Other revenues	7,2		19,7
Total revenues	282,5		442,3	-
Cost for Raw Materials and Supplies net Increase(decrease) inventory	(108,4)	(39,4%)	(181,0)	(42,8%)
Costs for Services and Use of Third parties Assets	(68,5)	(24,9%)	(101,7)	(24,1%)
Personnel Costs	(55,7)	(20,2%)	(82,4)	(19,5%)
Other Operating Costs	(8,2)	(3,0%)	(20,3)	(4,8%)
Total operating costs	(240,8)	(87,4%)	(385,4)	(91,2%)
EBITDA	41,8	15,2%	56,8	13,4%
Depreciation and Amortization	(6,8)	(2,5%)	(14,9)	(3,5%)
Write-Downs	(1,0)	(0,4%)	(0,8)	(0,2%)
EBIT	34,0	12,3%	41,1	9,7%
Financial income/expenses	(42,6)	(15,5%)	(5,8)	(1,4%)
Income/expenses from associates at equity method	0,4	0,2%	(0,0)	(0,0%)
PBT	(8,2)	(3,0%)	35,3	8,4%
Taxes	(8,3)	(3,0%)	(13,3)	(3,2%)
Net profit (loss) of continuing operating activities	(16,5)	(6,0%)	22,0	5,2%
Net profit (loss) of discontinued operating activities	0,1	0,0%	-	0,0%
Total net profit (loss) of the period	(16,4)	(6,0%)	22,0	5,2%
Total net profit (loss) attributable to non controlling interests	0,3	0,1%	1,0	0,2%
Fila Group's total net profit (loss) of the period	(16,7)	(6,1%)	21,0	5,0%
(€ million)	2015A	% on Sales	2016A	% on Sales
P&L ADJUSTMENTS
REPORTED EBITDA	41,8	15,2%	56,8	13,4%
Total Adjustments	5,8		10,4
ADJUSTED EBITDA	47,6	17,3%	67,2	15,9%
REPORTED NET PROFIT	(16,7)	(6,1%)	21,0	5,0%
Total Adjustments	41,5		7,2
ADJUSTED NET PROFIT	24,8	9,0%	28,2	6,7%

FY2016 Balance Sheet

(€ million)	2015A	2016A
BALANCE SHEET
Intangible assets	88,2	218,4
Tangible Assets	47,9	81,3
Financial Fixed Assets	1,8	3,7
Fixed Assets	137,8	303,4
Other Non Current Assets/Liabilities	13,9	20,7
Inventory	118,5	177,4
Trade Receivables and Other receivables	77,7	113,6
Trade Payables and Other Payables	(53,0)	(90,4)
Trade Working Capital	143,2	200,5
Other Current Assets and Liabilities	3,2	0,2
Net Working Capital	146,4	200,7
Provisions & Funds	(26,2)	(62,4)
Current and not Current Assets/Liabilities Intended for Disposal	-	-
NET CAPITAL EMPLOYED	272,0	462,4
Shareholders equity	(211,7)	(239,0)
Financial Instruments	(21,5)	-
Net Financial Position	(38,7)	(223,4)
TOTAL NET SOURCES	(272,0)	(462,4)

FY2016 Cash Flow Statement

(€ million)	2015A	2016A
CASH FLOW
EBIT	34,0	41,1
Adjustments for non monetary costs	7,7	15,7
Adjustments for taxes	(15,5)	(12,0)
Cash-flow from operating activities before changes in NWC	26,2	44,8
Changes in inventories	(18,5)	(16,5)
Changes in trade receivables & others	(2,4)	(4,6)
Changes in trade payables & others	(4,0)	15,4
Changes in other current assets/liabilities	0,2	1,4
Changes in net working capital	(24,7)	(4,3)
Operating cash-flow	1,5	40,5
Investments in tangible and intagible assets	(7,6)	(12,4)
Other investments	(35,6)	(84,8)
Cash-flow from investments	(43,3)	(97,3)
Capital increase/reimbursement	(0,3)	(4,5)
Net interests	(3,8)	(5,8)
Cash-flow from financing	(4,0)	(10,2)
Other changes	(0,2)	1,1
Total cash-flow	(46,0)	(65,9)
Effect of FX rate movements	1,8	1,1
Net financial position of New Companies as at Acquisition Date	63,9	(119,9)
Changes in Net Financial Position	19,7	(184,7)

Quarterly CB Sales, EBITDA, TWC and NFP

QUARTERLY CORE BUSINESS SALES AND ADJUSTED EBITDA (€ million)

(€ million) QUARTERLY TWC AND NFP

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FILA Shareholders

Total shares 41.232.296, of which : Ordinary shares 34.665.788, Class B shares 6.566.508 (enjoy three votes each in accordance with Article 127 sexies of Legislative Decree No. 58/1998). Last update September 9th 2016

Investor Relations F.I.L.A. Stefano De Rosa CFO/IR Officer – Francesca Cocco IR ir@fila.it (+39) 02 38105206