AI assistant
Fila Investor Presentation 2023
4343_10-q_2023-05-15_801856f7-96a1-4704-834a-4db5ccfe2db8.pdf
Investor Presentation
Open in viewerOpens in your device viewer
Q1 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.
Q1 2023 Highlights
- ˗ Adjusted Core Business Sales of 178,7mln €, +7,6% (+12,7mln €) on the same period of the previous year (166,0mln € in Q1 2022); +7,5% at comparable FX rates. Asia +7,8mln € (+29,1%), Middle and South America +4,4mln € (+29,2%), North America +1,7mln € (+2,5%) and Other Countries +0,1mln € (+13,6%) partially offset by Europe -1,6mln € (-2,8%).
- ˗ Indian Market at 30,1mln € (third parties revenues) in Q1 2023 in line with expectations, +35,5% on the same period of the previous year at comparable FX rates.
- ˗ Adjusted EBITDA, excluding IFRS 16 impact, of 24,3mln €, +7,4% (+1,7mln €) on Q1 2022 (22,7mln €); +5,4% at comparable FX rates, +1,2mln €. This result is mainly related to the positive performance in Asia, Middle-South America and North America.
- ˗ Adjusted EBITDA margin at 13,6% substantially in line with Q1 2022 (13,7%) and better than foreseen, mainly thanks to the positive effect generated by price increase, expected to continue in the following quarters, despite opening stocks high value.
- ˗ Total adjusted Net Profit, excluding IFRS 16 impact, of 5,0mln € (8,9mln € in Q1 2022). This values is significantly impacted by higher net financial expenses at 8,7mln €, more than doubled compared to the same period of the previous year, of which 7.3 million Euros mainly related to the increase in variable interest rates and the residual part of around 1 million Euros Euro related to the negative financial exchange effects on the main currencies.
- ˗ Net Bank Debt of 406,5mln € (380,6mln € in Q1 2022) with an increase in the last twelve months of 15,9mln €, excluding negative FX effect of approx. 10,0mln €. The Net Bank Debt are in line with our 2023 expected cash generation.
- ˗ Adjusted "Free Cash Flow to Equity" at -55,5mln € (-29,6mln € in Q1 2022). The difference of -25,9mln € between Q1 2023 and Q1 2022 is mainly due to higher CAPEX for 9,7mln €, almost completely related to India to support the growth, higher net financial expenses for 3,5mln € and to the temporary negative effect on net working capital.
- ˗ The Net Bank Debt and "Free Cash Flow to Equity" are in line with our 2023 expected cash generation.
Q1 2023 Core Business Sales
• Adjusted Core Business Sales of 178,7mln €, +7,6% on Q1 2022A; +12,4mln € (+7,5%) at comparable FX rates, of which:
‒ By Geographic Area: Asia +7,8mln € (+29,1%), Middle and South America +4,4mln € (+29,2%), North America +1,7mln € (+2,5%) and Other Countries +0,1mln € (+13,6%) partially offset by Europe -1,6mln € (-2,8%).
SALES BY GEOGRAPHICAL AREA
4
Q1 2023 EBITDA Adjusted (Excluded IFRS 16)
- Adjusted EBITDA of 24,3mln €, +7,4% on Q1 2022A; +1,2mln € (+5,4%) at comparable FX rates;
- 2,2mln € of extraordinary costs in Q1 2023A mainly related to Group reorganization costs/restructuring costs (1,5mln €), FILA consultancy fees (0,6mln €) and Shares-Based premium (0,1mln €); 0,4mln € of extraordinary costs in Q1 2022A mainly related to FILA Group reorganization costs and consultancy fees.
ADJUSTED EBITDA BY GEOGRAPHICAL AREA
Q1 2023 Adjusted Net Profit (Excluded IFRS 16)
- Total adjusted Net Profit of 5,0mln €, -3,9mln € (-43,4%) on Q1 2022A;
- The adjustment of the Net Profit in Q1 2023A for 1,8mln € 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 Q1 2022A for 0,4mln € mainly refers to FILA Group reorganization costs – restructuring costs and consultancy fees, net of taxes effects.
Q1 2023 Net Bank Debt and NFP (Excluded IFRS 16 and Mark to Market Hedging)
| (€ million) | |||
|---|---|---|---|
| Q1 2022A | 2022A | Q1 2023A | |
| Cash and Cash Equivalents | 95,8 | 107,5 | 65,3 |
| Financial Liabilities and Receivables | (476,4) | (459,1) | (471,8) |
| Net Bank Debt | (380,6) | (351,6) | (406,5) |
| Amortized cost | 2,3 | 1,7 | 1,4 |
| NFP Excl. IFRS16 and Mark to Market Hedging | (378,3) | (349,8) | (405,1) |
• Net Bank Debt increase of 25,9mln € in the last twelve months, increase of 15,9mln € excluding negative FX effect of approx. 10,0mln €.
| Q1 2022A | Q1 2023A | |
|---|---|---|
| Trade Working Capital | 324,9 | 352,4 |
| Sales Reported Rolling | 677,7 | 777,2 |
| Trade Working Capital/Sales Reported | 47,9% | 45,3% |
Q1 2023 Cash Flow Statement
| (€ million) | Q1 2022A | Q1 2023A | |
|---|---|---|---|
| CASH FLOW | |||
| RS 16 | EBIT | 14,6 | 14,3 |
| Adjustments for non monetary costs | 8,5 | 9,5 | |
| Adjustments for taxes | (3,9) | (4,8) | |
| Cash-flow from operating activities before changes in NWC | 19,2 | 19,0 | |
| Changes in net working capital | (42,6) | (54,0) | |
| IF | Operating cash-flow | (23,4) | (35,0) |
| D DE U EXCL |
Investments in tangible and intangible assets | (2,8) | (12,5) |
| Free Cash Flow | (26,2) | (47,5) | |
| Net financial expenses | (4,0) | (7,5) | |
| Other changes | 0,6 | (0,5) | |
| Free Cash Flow to Equity | (29,6) | (55,5) | |
| Capital increase/reimbursement/dividends | (1,7) | (0,7) | |
| Changes in Amortized cost | (1,4) | (0,4) | |
| Changes mark to market hedging | 7,7 | (1,3) | |
| Effect of FX rate movements* | (3,9) | 1,2 | |
| Changes in IFRS 16 Net Financial Position | (5,3) | 1,4 | |
| M&A Effect (Creative Art Products Limited) | (1,7) | - | |
| Changes in Net Financial Position Reported | (35,8) | (55,3) |
* Related to Net Bank Debt
**
8
Appendix
Q1 2023 Income Statement Reported
| (€ million) | Q1 2022A | % on Sales | Q1 2023A | % on Sales |
|---|---|---|---|---|
| PROFIT & LOSS | ||||
| Core Business Sales | 166,0 | 178,7 | ||
| Other revenues | 2,2 | 2,5 | ||
| Total revenues | 168,2 | 181,2 | ||
| Cost for Raw Materials and Supplies net Increase(decrease) inventory | (76,5) | (46,1%) | (83,1) | (46,5%) |
| Costs for Services and Use of Third-Party Assets | (26,9) | (16,2%) | (29,9) | (16,7%) |
| Personnel Costs | (37,3) | (22,5%) | (39,4) | (22,0%) |
| Other Operating Costs | (1,4) | (0,8%) | (2,5) | (1,4%) |
| Total operating costs | (142,2) | (85,7%) | (154,9) | (86,7%) |
| EBITDA | 26,0 | 15,7% | 26,3 | 14,7% |
| Depreciation and Amortization | (10,2) | (6,2%) | * (10,5) |
(5,9%) |
| Write-Downs | (0,3) | (0,2%) | (0,4) | (0,2%) |
| EBIT | 15,5 | 9,3% | 15,4 | 8,6% |
| Financial income/expenses | (5,2) | (3,0%) | (10,4) | (5,7%) |
| Income/expenses from associates at equity method | 0,1 | 0,1% | 0,3 | 0,1% |
| PBT | 10,5 | 6,3% | 5,3 | 2,9% |
| Taxes | (2,3) | (1,4%) | (2,4) | (1,3%) |
| Total net profit (loss) of the period | 8,1 | 4,9% | 2,9 | 1,6% |
| Total net profit (loss) attributable to non controlling interests | 1,0 | 0,6% | 1,6 | 0,9% |
| Fila Group's total net profit (loss) of the period | 7,1 | 4,3% | 1,3 | 0,7% |
* Of which: Tangible Assets 3,9mln €; IFRS 16 Tangible Asset 3,1mln €; Intangible Assets 3,5mln € (PPA 2,9mln €)
Q1 2023 Income Statement Adjusted
| (€ million) | Q1 2022A | % on Sales | Q1 2023A | % on Sales |
|---|---|---|---|---|
| P&L ADJUSTMENTS | ||||
| REPORTED CORE BUSINESS SALES | 166,0 | 178,7 | ||
| Total Adjustments ADJUSTED CORE BUSINESS SALES |
- 166,0 |
- 178,7 |
||
| REPORTED EBITDA | 26,0 | 15,7% | 26,3 | 14,7% |
| IFRS 16 Impact | (3,8) | (4,2) | ||
| Total Adjustments | 0,4 | 2,2 | ||
| ADJUSTED EBITDA EXCLUDED IFRS 16 | 22,7 | 13,7% | 24,3 | 13,6% |
| REPORTED NET PROFIT | 8,1 | 4,9% | 2,9 | 1,6% |
| IFRS 16 Impact | 0,4 | 0,3 | ||
| Total Adjustments | 0,4 | 1,8 | ||
| ADJUSTED NET PROFIT EXCLUDED IFRS 16 | 8,9 | 5,4% | 5,0 | 2,8% |
Q1 2023 Balance Sheet Reported
| (€ million) | 2022A | Q1 2023A |
|---|---|---|
| BALANCE SHEET | ||
| Intangible assets | 446,5 | 439,6 |
| Tangible Assets | 166,2 | 172,1 |
| Biological Assets | 1,8 | 1,8 |
| Financial Fixed Assets | 4,2 | 4,6 |
| Fixed Assets | 618,7 | 618,1 |
| Other Non Current Assets/Liabilities | 24,0 | 24,3 |
| Trade Working Capital | 300,1 | 352,4 |
| Other Current Assets and Liabilities | 2,8 | 4,5 |
| Net Working Capital | 302,9 | 356,9 |
| Provisions & Funds | (82,8) | (81,9) |
| NET CAPITAL EMPLOYED | 862,8 | 917,4 |
| Shareholders equity | (427,7) | (427,0) |
| Net Financial Position | (435,2) | (490,4) |
| TOTAL NET SOURCES | (862,8) | (917,4) |
Q1 2023 NFP Reported
| Q1 2022A | 2022A | Q1 2023A | |
|---|---|---|---|
| NFP Reported | (473,1) | (435,2) | (490,4) |
| Mark to Market Hedging | (2,2) | 3,2 | 1,9 |
| IFRS 16 | (92,6) | (88,5) | (87,2) |
| NFP Excl. IFRS16 and Mark to Market Hedging | (378,3) | (349,8) | (405,1) |
Q1 2023A Net Financial Position increase of 55,3mln € 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
