AI assistant
Fila Investor Presentation 2023
4343_ip_2023-11-14_e4f2f728-69fb-46b7-88f6-fa2d81980f24.pdf
Investor Presentation
Open in viewerOpens in your device viewer
9M 2023 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.
9M 2023 Highlights
Adjusted EBITDA Margin improvement at 17,6% in 9M 2023 and strong Net Bank Debt reduction in the last 12 months of 48,6mln €
- ˗ Adjusted Core Business Sales of 614,2mln €, +3,2% (+19,2mln €) on the same period of the previous year (595,0mln € in 9M 2022); +6,7% at comparable FX rates. Asia +29,4mln € (+32,8%), Central and South America +12,2mln € (+21,4%), North America +9,2mln € (+3,5%) and Other Countries +0,02mln € (+0,7%) partially offset by Europe -10,7mln € (-5,9%).
- ˗ Adjusted EBITDA, excluding IFRS 16 impact, of 108,0mln €, +13,1% (+12,5mln €) in 9M 2022 (95,5mln € ); +13,3% at comparable FX rates (+12,8mln €), highlighting a more than proportional growth than revenues thanks to the positive performance in North America, Asia and Middle-South America.
- ˗ Adjusted EBITDA margin at 17,6% with a significant increase of 150bp on the same period of the previous year (16,1%) improving on H1 2023 and better than foreseen, mainly thanks to the positive effect generated by price increase and cost efficiencies, despite the services costs increase to support the growth. Significant margin improvement in North America.
- ˗ Adjusted Net Profit, excluding IFRS 16 impact, of 45,1mln €, +4,9% (+2,1mln €) on the same period of the previous year. This value is significantly impacted by higher net financial expenses at 23,4mln € compared to the ones of the same period of the previous year, of which 21,5mln € mainly related to the increase in variable interest rates and the residual part mostly linked to the negative financial exchange effects on the main currencies.
- ˗ Net Bank Debt of 367,0mln € (415,6mln € in 9M 2022) with a decrease in the last twelve months of 48,6mln €, decrease of 47,5mln € excluding positive FX effect of approx. 9,3mln € and negative M&A effect of approx. 8,2mln € related to the acquisition made by DOMS Industries Limited.
- ˗ Adjusted "Free Cash Flow to Equity" at +6,4mln € (-24,1mln € in 9M 2022), with an improvement of +30,5mln € on 9M 2022 mainly due to higher operating cash flow generation and lower working capital absorption of 34,2mln €, partially mitigated by higher CAPEX for 13,2mln €, almost completely related to Asia to support the growth and higher net financial expenses for 3,7mln €, mainly due to the interest rates increase.
- ˗ Net Bank Debt and "Free Cash Flow to Equity" are better than foreseen in 9M 2023 and confirming at least our 2023 expected cash generation.
3
9M 2023 Core Business Sales
• Adjusted Core Business Sales of 614,2mln €, +3,2% on 9M 2022A; +40,1mln € (+6,7%) at comparable FX rates, of which:
‒ By Geographic Area: Asia +29,4mln € (+32,8%), Middle and South America +12,2mln € (+21,4%), North America +9,2mln € (+3,5%) and Other Countries +0,02mln € (+0,7%) partially offset by Europe -10,7mln € (-5,9%).
SALES BY GEOGRAPHICAL AREA
4 Data in millions of euros; for precise data refer to 9M FILA financial report
9M 2023 EBITDA Adjusted (Excluded IFRS 16)
ADJUSTED EBITDA BY GEOGRAPHICAL AREA
- Adjusted EBITDA of 108,0mln €, +13,1% on 9M 2022A; +12,8mln € (+13,3%) at comparable FX rates;
- 6,1mln € of extraordinary costs in 9M 2023A related to Group reorganization costs – restructuring costs (3,4mln €), FILA consultancy fees (2,3mln €) and Shares-Based premium (0,4mln €); 4,0mln € of extraordinary costs in 9M 2022A mainly related to FILA consultancy fees (3,0mln € of which 2,1mln € for refinancing), Group reorganization costs/restructuring costs (1,0mln €) and Covid-19 pandemic (1,0mln €) partially offset by Shares-Based premium (-1,0mln €).
Data in millions of euros; for precise data refer to 9M FILA financial report
9M 2023 Adjusted Net Profit (Excluded IFRS 16)
39,4 40,3 3,6 4,8 9M 2022A 9M 2023A Reported Adjustment 43,0 45,1 (€ million) +2,1mln € +4,9%
- Total adjusted Net Profit of 45,1mln €, +2,1mln € (+4,9%) on 9M 2022A;
- The adjustment of the Net Profit in 9M 2023A for 4,8mln € mainly related to Group reorganization costs – restructuring costs, FILA consultancy fees and Shares-Based premium, net of taxes effects;
- The adjustment of the Net Profit in 9M 2022A for 3,6mln € mainly refers to consultancy fees, Group reorganization costs/restructuring costs, Covid-19 pandemic and Shares-Based premium, net of taxes effects.
9M 2023 Net Bank Debt and NFP (Excluded IFRS 16 and Mark to Market Hedging)
(€ million) 9M 2022A 2022A 9M 2023A Cash and Cash Equivalents 78,5 107,5 71,1 Financial Liabilities and Receivables (494,1) (459,1) (438,1) Net Bank Debt (415,6) (351,6) (367,0) Amortized cost 1,7 1,7 1,8 NFP Excl. IFRS16 and Mark to Market Hedging (413,9) (349,8) (365,1)
• Net Bank Debt decrease of 48,6mln € in the last twelve months, decrease of 47,5mln € excluding positive FX effect of approx. 9,3mln € and negative M&A effect of approx. 8,2 mln €.
| 9M 2022A |
9M 2023A |
|
|---|---|---|
| Trade | 380 | 340 |
| Working | 0 | 2 |
| Capital | , | , |
| Sales | 752 | 783 |
| Reported | 0 | 7 |
| Rolling | , | , |
| Capital/Sales Trade Working Reported |
5% 50 , |
4% 43 , |
9M 2023 Cash Flow Statement
| (€ million) |
9M 2022A |
9M 2023A |
|---|---|---|
| CASH FLOW |
||
| EBIT | 67,8 | 79,2 |
| Adjustments for non monetary costs |
24,0 | 27,4 |
| Adjustments for taxes |
(12 ,6) |
(12 ,3) |
| 6 Cash-flow from before changes operating activities in NWC |
79,2 | 94,2 |
| RS 1 Changes working capital in net |
(76 ,5) |
(42 ,3) |
| IF Operating cash-flow |
2,7 | 51,9 |
| D in tangible and intangible DE Investments assets |
(12 ,0) |
(25 ,2) |
| U Cash Flow Free |
(9 ,3) |
26,7 |
| EXCL financial Net expenses |
(18 ,5) |
(22 ,2) |
| Other changes |
3,7 | 1,9 |
| Cash Flow Equity Free to |
(24 ,1) |
6,4 |
| increase/reimbursement/dividends Capital |
(14 ,0) |
(8 ,9) |
| Changes Amortized in cost |
(1 ,9) |
3,2 |
| Changes mark market hedging to |
9,8 | 0,1 |
| Effect of movements* FX rate |
(32 ,0) |
(4 ,7) |
| Changes in IFRS 16 Financial Position Net |
(9 ,7) |
1,4 |
| M&A Effect** |
(1 ,7) |
(8 ,2) |
| Changes in Financial Position Reported Net |
(73 ,7) |
(10 ,6) |
* Related to Net Bank Debt
** Related to acquisition of Micro Wood Private Limited by DOMS Industries Limited
(10,6)mln € Please refer to NFP Reported analysis at page 13
8
Appendix
9M 2023 Income Statement Reported
| million) | 9M 2022A |
on Sales % |
9M 2023A |
on Sales % |
|---|---|---|---|---|
| & PROFIT LOSS |
||||
| Sales Core Business |
595 0 , |
614 2 , |
||
| Other revenues |
9 ,4 |
6 6 , |
||
| Total revenues |
604,5 | 620,7 | ||
| for Materials and Supplies Increase(decrease) Cost Raw inventory net |
(289 9) , |
(48,7%) | (290 ,5) |
(47,3%) |
| for of Costs Services and Third-Party Use Assets |
(90 ,4) |
(15,2%) | (90 9) , |
(14,8%) |
| Personnel Costs |
(114 0) , |
(19,2%) | (117 9) , |
(19,2%) |
| Other Operating Costs |
(7 3) , |
(1,2%) | (7 6) , |
(1,2%) |
| Total operating costs |
(501 ,6) |
(84,3%) | (506 ,7) |
(82,5%) |
| EBITDA | 102,9 | 17,3% | 114,0 | 18,6% |
| Depreciation and Amortization |
(31 3) , |
(5,3%) | * (31 ,1) |
(5,1%) |
| Write-Downs | (1 ,1) |
(0,2%) | (0 ,5) |
(0,1%) |
| EBIT | 70,5 | 11,9% | 82,4 | 13,4% |
| income/expenses Financial |
(22 ,1) |
(3,7%) | (28 3) , |
(4,6%) |
| Income/expenses from associates equity method at |
0 6 , |
0,1% | 0 ,7 |
0,1% |
| PBT | 49,0 | 8,2% | 54,8 | 8,9% |
| Taxes | (11 0) , |
(1,8%) | (15 3) , |
(2,5%) |
| Total profit (loss) of the period net |
38,0 | 6,4% | 39,5 | 6,4% |
| Total profit (loss) attributable non controlling interests net to |
3 ,5 |
0,6% | 6 ,1 |
1,0% |
| (loss) Fila Group's total profit of the period net |
34,5 | 5,8% | 33,4 | 5,4% |
* Of which: Tangible Assets 11,7mln €; IFRS 16 Tangible Assets 8,8mln €; Intangible Assets 10,6mln € (PPA 8,6mln €)
9M 2023 Income Statement Adjusted
| (€ million) | 9M 2022A | % on Sales | 9M 2023A | % on Sales |
|---|---|---|---|---|
| P&L ADJUSTMENTS | ||||
| REPORTED CORE BUSINESS SALES | 595,0 | 614,2 | ||
| Total Adjustments | - | - | ||
| ADJUSTED CORE BUSINESS SALES | 595,0 | 614,2 | ||
| REPORTED EBITDA | 102,9 | 17,3% | 114,0 | 18,6% |
| IFRS 16 Impact | (11,4) | (12,0) | ||
| Total Adjustments | 4,0 | 6,1 | ||
| ADJUSTED EBITDA EXCLUDED IFRS 16 | 95,5 | 16,1% | 108,0 | 17,6% |
| REPORTED NET PROFIT | 38,0 | 6,4% | 39,5 | 6,4% |
| IFRS 16 Impact | 1,4 | 0,8 | ||
| Total Adjustments | 3,6 | 4,8 | ||
| ADJUSTED NET PROFIT EXCLUDED IFRS 16 | 43,0 | 7,2% | 45,1 | 7,4% |
9M 2023 Balance Sheet Reported
| (€ million) |
2022A | 9M 2023A |
|---|---|---|
| BALANCE SHEET |
||
| Intangible assets |
446 5 , |
440 3 , |
| Tangible Assets |
166 2 , |
174 5 , |
| Biological Assets |
1 8 , |
1 7 , |
| Financial Fixed Assets |
4 2 , |
13 8 , |
| Fixed Assets |
618 7 , |
630 3 , |
| Assets/Liabilities Other Non Current |
24 0 , |
24 6 , |
| Trade Working Capital |
300 1 , |
340 2 , |
| Other and Liabilities Current Assets |
2 8 , |
(0 8) , |
| Working Capital Net |
302 9 , |
339 4 , |
| Provisions & Funds |
(82 8) , |
(85 7) , |
| NET CAPITAL EMPLOYED |
862 8 , |
908 6 , |
| Shareholders equity |
(427 7) , |
(462 8) , |
| Financial Net Position |
(435 2) , |
(445 8) , |
| TOTAL NET SOURCES |
(862 8) , |
(908 6) , |
9M 2023 NFP Reported
| 9M 2022A |
2022A | 9M 2023A |
|
|---|---|---|---|
| Reported NFP |
(510 9) , |
(435 2) , |
(445 8) , |
| Mark Market Hedging to |
0 0 , |
3 2 , |
6 4 , |
| IFRS 16 |
(97 0) , |
(88 5) , |
(85 3) , |
| Excl and Mark Market Hedging NFP . IFRS16 to |
(413 9) , |
(349 8) , |
(365 1) , |
9M 2023A Net Financial Position increase of 10,6mln € compared to 2022A.
FILA Shareholders
Total shares * Ordinary shares only
*Total shares 51.058.297 of which: Ordinary shares 42.976.441; Class B shares 8.081.856 (enjoy three votes each in accordance with Article 127 sexies of Legislative Decree No. 58/1998).
Investor Relations F.I.L.A. Cristian Nicoletti CFO/IR Officer – Francesca Cocco IR [email protected] (+39) 02 38105206
