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Fila Investor Presentation 2021
4343_ip_2021-03-22_85baaecf-0746-4bc4-b5d2-4ba0664980da.pdf
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FY2020 FILA Group Results
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 F.I.L.A.'s activities. Statements contained in this presentation, particularly regarding any possible or assumed future performance of the F.I.L.A. Group, are or may be forward-looking statements based on F.I.L.A.'s current expectations and projections about future events. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond F.I.L.A.'s control. These risks, uncertainties and factors may cause F.I.L.A.'s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results, performances or achievements). Forward-looking statements are not guarantees of future performance. Consequently, F.I.L.A. 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 expected developments. The data and information contained in this document are subject to changes and integrations. Although F.I.L.A. reserves the right to make such changes and integrations when it deems necessary or appropriate, F.I.L.A. assumes no affirmative obligation to update, change or integrate this document, except as and to the extent required by law. Any reference to the past performance of the F.I.L.A. Group shall not be taken as an indication of future performance. In addition, this presentation includes certain ''Adjusted'' financial and operating indicators and non-IFRS measures, which have been adjusted to reflect extraordinary events, non-recurring and/or non-monetary transactions and/or activities that are not directly related to the Group's ordinary business. These measures are not indicative of our historical operating results, nor are they meant to be predictive of future results. These measures are used by F.I.L.A.'s management to monitor the underlying performance of the business and the operations. Since not all companies calculate these measures in an identical manner, F.I.L.A.'s presentation may not be consistent with similar measures used by other companies. Such "Adjusted" information has been included to facilitate the comparison of financial information among different financial periods; however, it should be noted that such information is not recognized as a measure of financial performance or liquidity under IFRS and/or does 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. The information contained in this document does not constitute or form any part of, and should not be construed as, any offer, invitation or recommendation to purchase, sell or subscribe for any securities in any jurisdiction and neither the issue of the information nor anything contained herein shall form the basis of or be relied upon in connection with, or act as any inducement to enter into, any investment activity. This document does not purport to contain all of the information that may be required to evaluate any investment in the Company or any of its securities and should not be relied upon to form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This presentation is intended to present background information on F.I.L.A., its business and the industry in which it operates and is not intended to provide complete disclosure upon which an investment decision could be made. The merit and suitability of investment in F.I.L.A. should be independently evaluated and determined by investors. Analyses in this presentation are not, and do not purport to be, appraisals of the assets, stock or business of F.I.L.A., and do not form any publicity material relating to the securities. Any person considering an investment in F.I.L.A. is advised to obtain independent advice as to the legal, tax, accounting, regulatory, financial, credit and other related advice prior to making an investment.
By attending this presentation, you agree to be bound by the foregoing terms.
4Q & FY 2020 Highlights
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- - 4Q 2020 results: ˗ Sales of 146,4mln € (151,5mln € in 4Q 2019), with comparable FX rates; ˗ Adjusted EBITDA of 18mln € (22,7mln € in Q4 2019) without IFRS 16 effects and with comparable FX; ˗ Confirmed, also in the Q4 2020, the worldwide strong growth of Fine Art (+24% vs 4Q 2019), with a positive contribution on margins that partially offset the effects of the school lockdown in India and Mexico; FY 2020 results: ˗ Adjusted Sales of 608,2mln € (687,4mln € in FY 2019) with decline of -62,2mln € (-9,1%), with comparable FX rates, due to COVID-19 impacts and mainly to India and Mexico. Fine Art +18,1% and School & Office - 19,9% vs FY 2019; ˗ Adjusted EBITDA, excluding IFRS 16 impact, of 95,4mln € (110,8mln € in FY 2019) with a decrease of
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- - 15,6mln € (-14,1%), with comparable FX rates, almost totally related to India and Mexico; ˗ EBITDA margin at 15,7% (16,1% in FY 2019); ˗ Net Bank Debt of 396,1mln € (403,6mln € as at 31 December 2019) with a decrease of 7,5mln € in the last twelve months, notwithstanding the cash out for Arches acquisition of 43,6mln € and related consultancy fees and other closing expenses for 6,1mln € => Net Bank Debt decrease in last twelve months of 57,2mln € excluding Arches Acquisition cash out, but including positive FX effect of approx. 21,1mln €; ˗ "Free Cash Flow to Equity" at 29,8mln, in line with expectations, impacted by lower EBITDA, cash out for Arches consultancy fees and higher inventories level (in particular in North America and Mexico).
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FY2020 Core Business Sales
| 2019A | 2020A | 2020A vs | |
|---|---|---|---|
| (€ million) | December | December | 2019A |
| Dixon (Mexico) | 47,7 | 15,7 | (32,0) |
| DOMS Industries PVT Ltd (India) | 74,9 | 38,5 | (36,4) |
| Total 3rd Parties Sales | 122,6 | 54,2 | (68,4) |
- Core Business Sales at 608,2mln €, -62,2mln € (-9,1%) on 2019, FX rates effects excluded, of which:
- ‒ By Geographic Area: Asia -34,0mln € (-38,3%), Centre & South America -30,9mln € (-45,8%) partially offset by North America +1,3mln € (+0,4%), Europe +0,9mln € (+0,4%), Other Countries +0,5mln € (+15,7%); ‒ By Product line: School & Office -95,7mln € (-19,9%), Industrial -0,5mln € (-2,6%) partially offset by Fine Art, Hobby & Digital 0,8
-- +34,0mln € (+18,1%). 0,8mln € adjustment in FY 2020 due to customer claims for Covid-19 supply chain disruption mainly of Dixon Ticonderoga Company (US); 4,7mln € adjustment in FY 2019 due to extraordinary customer claims of Dixon Ticonderoga Company (US). Core Business Sales for 2020 include Arches sales for 4,9mln € since March 2020 and for 2019 they include Superior sales for 5,4mln €, business sold in October 2019.
FY2020 Core Business Sales
SALES BY PRODUCT LINE
SALES BY GEOGRAPHICAL AREA
- 2019, FX rates effects excluded; 14,2mln € of extraordinary costs in FY 2020 mainly related to Fila Arches acquisition (6,3mln €), COVID-19 pandemic (6,3mln €) and FILA Group reorganization costs (1,4mln €); 17,9mln € of extraordinary costs in FY 2019 mainly due to reorganization costs; Adjusted EBITDA for 2020 includes Arches EBITDA for 2,7mln € since March 2020 and for
| Arches acquisition (6,3mln €), Group reorganization costs costs in FY 2019 mainly due to |
COVID-19 pandemic (1,4mln €); 17,9mln reorganization |
(6,3mln €) € of costs; |
and FILA extraordinary |
|---|---|---|---|
| Adjusted EBITDA for 2020 includes Arches 2019 it includes Superior EBITDA for 1,0mln |
EBITDA for 2,7mln €, business sold in |
€ since March October 2019. |
2020 and for |
| 2019A | 2020A | 2020A vs | |
| (€ million) | December | December | 2019A |
| Dixon (Mexico) | 7,6 | 1,6 | (6,0) |
| DOMS Industries PVT Ltd (India) | 9,9 | 3,1 | (6,8) |
| EBITDA | 17,5 | 4,7 | (12,8) |
ADJUSTED EBITDA BY GEOGRAPHICAL AREA
Data in millions of euros; for precise data refer to 12M FILA financial report
FY2020 Net Income Adjusted (Excluded IFRS 16)
- Adjusted Net Income of 23,1mln €, -20,0mln € (-46,4%) on 2019.
- Results are mainly affected by higher financial costs related to negative FX effect; • The adjustment of the Group Result in FY 2020 for 11,7mln € mainly refers to extraordinary operating costs for Arches acquisition and COVID-19 pandemic impact, net of taxes effects; • The adjustment of the Group Result in FY 2019 for 16,7mln € mainly refers to Group reorganization costs, net of taxes effects.
FY2020 Net Bank Debt and NFP
| FY2020 Net Bank Debt and NFP | |||
|---|---|---|---|
| (€ million) | 2019A | 2020A | |
| Cash and Cash Equivalents | 85,6 | 116,3 | |
| Financial Liabilities | (489,1) | (512,4) | |
| Net Bank Debt | (403,6) | (396,1) | |
| Amortized cost | 5,6 | 6,2 | |
| Financial Receivables | 1,2 | 0,1 | |
| NFP for Covenants | (396,8) | (389,8) | |
| Mark to Market Hedging | (13,6) | (18,8) | |
| IFRS 16 | (87,8) | (84,9) | |
| NFP included IFRS 16 and Financial Instruments | (498,2) | (493,5) | |
| 2019A | 2020A | ||
| Leverage ratio | 3,5 | 3,92 | |
| Covenant leverage ratio - SFA | 4,5 | 3,90 | |
| 2019A | 2020A | ||
| 2019A | 2020A | ||
|---|---|---|---|
| • Net Bank Debt decrease of 7,5mln € in the last twelve |
|||
| months, notwithstanding the cash out for Arches |
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| acquisition of 43,6mln € and related consultancy fees and |
|||
| other closing expenses for 6,1mln € => Net Bank Debt |
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| decrease in last twelve months of 57,2mln € excluding Arches Acquisition cash out, but including positive fx |
|||
| effect of approx. 21,1mln €; |
|||
| • FY 2020A Net Financial Position decrease of 4,7mln € compared to FY2019 (please refer to page 9 for details). |
|||
| 2019A | 2020A | ||
| 2019A | 2020A | ||
| 2019A | 2020A | ||
|---|---|---|---|
| Covenant leverage ratio - SFA | 4,5 | 3,90 | |
| 2019A | 2020A | ||
| Net Working Capital | 291,1 | 271,7 | |
| Sales Reported | 682,7 | 607,4 | |
| Net Working Capital/Sales Reported | 42,6% | 44,7% | |
FY2020 Cash Flow Statement
| FY2020 Cash Flow Statement (€ million) 2019A 2020A CASH FLOW EBIT 57,6 47,5 Adjustments for non monetary costs 38,2 34,5 Adjustments for taxes (12,7) (8,4) Cash-flow from operating activities before changes in NWC 83,2 73,6 Changes in net working capital 15,3 (7,2) Operating cash-flow 98,5 66,4 Investments in tangible and intagible assets (19,0) (10,2) Free Cash Flow 79,5 56,2 Net financial expenses (23,8) (20,9) Other changes 2,2 (5,5) Free Cash Flow to Equity 57,8 29,8 * Capital increase/reimbursement/dividends (4,3) (0,2) Adjustment mark to market hedging (8,4) (5,2) Effect of FX rate movements (6,0) 21,1 IFRS 16 Net Financial Position (87,8) 2,9 |
||
|---|---|---|
| M&A - Acquisition: 2019 Minority acquisition - 2020 Arches 3,2 (43,6) |
||
| Changes in Net Financial Position (45,4) 4,7 |
FY2020 Income Statement Reported
| FY2020 Income Statement Reported | ||||
|---|---|---|---|---|
| (€ million) | 2019A | % on Sales | 2020A | % on Sales |
| PROFIT & LOSS | ||||
| Core Business Sales | 682,7 | 607,4 | ||
| Other revenues | 6,7 | 9,0 | ||
| Total revenues | 689,4 | 616,3 | ||
| Cost for Raw Materials and Supplies net Increase(decrease) inventory | (317,9) | (46,6%) | (280,2) | (46,1%) |
| Costs for Services and Use of Third-Party Assets | (116,1) | (17,0%) | (103,6) | (17,0%) |
| Personnel Costs Other Operating Costs |
(142,4) (7,1) |
(20,9%) (1,0%) |
(130,4) (7,2) |
(21,5%) (1,2%) |
| Total operating costs | (583,5) | (85,5%) | (521,3) | (85,8%) |
| EBITDA | 105,9 | 15,5% | 95,1 | 15,6% |
| Depreciation and Amortization | (41,0) | (6,0%) | * (42,6) |
(7,0%) |
| Write-Downs | (4,8) | (0,7%) | (2,9) | (0,5%) |
| EBIT | 60,0 | 8,8% | 49,5 | 8,2% |
| Financial income/expenses | (30,5) | (4,5%) | (35,5) | (5,8%) |
| Income/expenses from associates at equity method | 0,2 | 0,0% | 0,3 | 0,0% |
| PBT | 29,8 | 4,4% | 14,3 | 2,4% |
| Taxes | (3,7) | (0,5%) | (6,2) | (1,0%) |
| Total net profit (loss) of the period | 26,1 | 3,8% | 8,1 | 1,3% |
| Total net profit (loss) attributable to non controlling interests | 2,1 | 0,3% | (0,5) | (0,1%) |
| Fila Group's total net profit (loss) of the period | 24,0 | 3,5% | 8,6 | 1,4% |
FY2020 Income Statement Adjusted
| FY2020 Income Statement Adjusted | ||||
|---|---|---|---|---|
| (€ million) P&L ADJUSTMENTS |
2019A | % on Sales | 2020A | % on Sales |
| REPORTED CORE BUSINESS SALES Total Adjustments ADJUSTED CORE BUSINESS SALES |
682,7 4,7 687,4 |
607,4 0,8 608,2 |
||
| REPORTED EBITDA IFRS 16 Impact Total Adjustments ADJUSTED EBITDA EXCLUDED IFRS 16 |
105,9 (13,0) 17,9 110,8 |
15,5% 16,1% |
95,1 (13,9) 14,2 95,4 |
15,6% 15,7% |
| REPORTED FILA GROUP NET PROFIT IFRS 16 Impact Total Adjustments |
24,0 2,4 16,7 |
3,5% | 8,6 2,8 11,7 |
1,4% |
| ADJUSTED FILA GROUP NET PROFIT EXCLUDED IFRS 16 | 43,1 | 6,3% | 23,1 | 3,8% |
FY2020 Balance Sheet Reported
| FY2020 Balance Sheet Reported | ||||
|---|---|---|---|---|
| (€ million) | 2019A | 2020A | ||
| BALANCE SHEET | ||||
| Intangible assets | 430,6 | 436,0 | ||
| Tangible Assets | 186,0 | 171,5 | ||
| Financial Fixed Assets | 3,7 | 3,7 | ||
| Fixed Assets | 620,3 | 611,2 | ||
| Other Non Current Assets/Liabilities | 18,3 | 20,2 | ||
| Trade Working Capital | 291,1 | 271,7 | ||
| Other Current Assets and Liabilities | 3,8 | 4,9 | ||
| Net Working Capital | 294,9 | 276,6 | ||
| Provisions & Funds | (78,0) | (83,3) | ||
| NET CAPITAL EMPLOYED | 855,5 | 824,7 | ||
| Shareholders equity | (357,3) | (331,3) | ||
| Net Financial Position | (498,2) | (493,5) | ||
| TOTAL NET SOURCES | (855,5) | (824,7) |
*Total shares 51.040.048 of which : Ordinary shares 42.958.192; Class B shares 8.801.856 (enjoy three votes each in accordance with Article 127 sexies of Legislative Decree No. 58/1998).
Investor Relations F.I.L.A.
[email protected]
(+39) 02 38105206
