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Mr Bricolage Earnings Release 2012

Mar 6, 2013

1535_10-k_2013-03-06_d12e595f-a2b8-47b3-a4ac-d8acb83600dd.pdf

Earnings Release

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Annual results 2012

2012, a year of contrasts

  • › Members' networks held up well
  • › Directly-owned stores took a turn for the worse
  • › Multi-channel strategy rolled out
  • › Group continued to reduce debt

Dividend proposed at the General Shareholders' meeting: €0.40 per share

› Representing a payout ratio of 36% of profit

"The decline in the 2012 income must not mask our achievements in the financial year. The year 2012 in fact saw the surge in our move towards the business of tomorrow: multi-brand, multi-format and multi-channel. The year 2013 will be one of web-to-store deployment, with a target of 275 store websites to be brought online by the end of the year. Although the climate at the start of the year is still rough, I remain optimistic about our growth in the medium term", says Jean-François Boucher, Chairman and CEO of Mr Bricolage SA.

Consolidated income statement for 2012

Financial statements audited by the Statutory Auditors and adopted by the Board of Directors meeting on 6 March 2013

€ million, at 31 December 2012(3) 2011
Consolidated turnover 560.9 562.3
Ordinary operating profit (1) 32.3 39.6
Of which, Retail (8.1) (5.2)
Of which, Network Services 40.3 44.6
Operating profit 31.0 37.8
Of which, Retail (7.3) (5.5)
Of which, Network Services 38.3 43.0
Profit before tax (2)
as % of turnover
25.3
4.5 %
30.7
5.5 %
Share of loss from associates (3.2) (3.1)
Income tax (10.5) (9.7)
Net loss from assets held for sale (0.4) (0.3)
Net profit, Group share
as % of turnover
11.3
2.0 %
17.7
3.1%
Net debt-to-EBITDA 2.88x 2.76x

(1) Ordinary operating profit = operating profit excluding gains (losses) on disposals and non-recurring items

(2) Profit before tax excluding the share of the associates' profit (loss) and income from assets held for sale

(3) Consolidation of Le Jardin de Catherine company, which runs the websites le-jardin-de-catherine.com, la-maisonde-catherine.com and mr-bricolage.fr, as of 1 September 2012.

€ million, at 31 December Retail Consolidated
total
Directly
owned
stores
Online sales (3) Total Network
services
Consolidated turnover 369.3 4.3 373.6 187.2 560.9
Economic turnover(1) 369.6 4.3 373.9 271.9 560.9
Ordinary operating profit (2) (7.1) (1.0) (8.1) 40.3 32.3
as % of turnover (1.9%) (23.0%) (2.2%) 14.8 % 5.7 %
Operating profit (6.3) (1.0) (7.3) 38.3 31.0
as % of turnover (1.7 %) (23.0%) (1.9%) 14.1% 5.5%

Operating profit: €31 million, representing 5.5% of turnover

(1) Economic turnover = turnover before intercompany eliminations

(2) Ordinary operating profit = operating profit excluding gains (losses) on disposals and non-recurring items

(3) Consolidation of the "B to C" online sales of le-jardin-de-catherine.com, la-maison-de-catherine.com and mr-bricolage.fr, as of 1 September 2012.

The "Retail" operating profit mainly reflects the position of Directly-owned stores and the first integration of online sales.

The operating profit of the Directly-owned stores segment, undermined by the decline in turnover that was sharper at the end of the year, stands at €(6.3) million in 2012, as opposed to €(5.5) million in 2011.

The consolidation of online sales over 4 months (as of 1 September 2012) brought down the "Retail" operating profit. This is generally the low season for this online business.

The cyclical setback in networks'purchase volumes lowered the profitability of Network services.

Despite external and staff charges being well under control, the ordinary operating profit of Network services was down. This change accounts for the impact of the cyclical fall in the Networks' purchase volumes, the non-recurrence of the research tax credit and the negative exchange rate effect.

The operating profit of this business stands at €38.3 million in 2012, representing an operating profitability of 14.1%.

Net income of €11.3 million and proposed dividend at €0.40 per share

In 2012, the share of net loss from associates reflects the continuing difficulties in the Eastern Europe markets, despite the restructuring undertaken.

After accounting for income tax, the Group share of net profit in 2012 stood at €11.3 million.

Confident about the future, the Board of Directors has decided to propose in the General Shareholders' meeting on 25 April this year, a dividend payout of €0.40 per share, representing a payout ratio of about 36% of profit.

Solid financial structure

In 2012, the Mr Bricolage SA Group reduced its net debt by €20.6 million, while financing the acquisition of Le Jardin de Catherine (€9.0 million). With a net debt of €126.1 million at end 2012, the gearing(1) stood at 52.3%, up 9.7 points, and the leverage ratio(2) at 2.88 x.

(1) Net debt-to-Shareholders' equity

(2) Net debt-to-EBITDA

2013 outlook

The Group expects the first quarter to be impacted by a market environment that remained bleak in January(3) and February.

Mr Bricolage SA remains focussed on its strategic vision, and has prioritised the following for 2013: restructuring of Directly-owned Stores, deployment of Web-to-store and ramp-up of the new warehouse opened in Cahors at end 2012.

Networks will continue to expand through new openings, memberships and master franchises on the international front. This development will lead to growth in both the turnover and the purchase volumes of Networks.

(3) Variation in the French DIY market value in January 2013 (compared to n-1): -4.9% (source Banque de France)

Next press release:

> Q1 2013 Turnover: 14 May 2013, after market close

About Mr. Bricolage (as at 31 December 2012)

Mr Bricolage is France's no. 1 local DIY retailer (839 branded or affiliated stores) and has 66 stores in ten other countries. The group operates under the brands Mr.Bricolage, Les Briconautes and L'Entrepôt Du Bricolage and also through over 300 affiliates.

With nearly 12,000 employees, the Group's networks represent total annual turnover including tax of over €2.3 billion. In July 2012, the Group acquired Le Jardin de Catherine that operates the le-jardinde-catherine.com and la-maison-de-catherine.com websites. The multi-channel strategy is also deployed in the e-commerce site of www.mr-bricolage.fr, launched at the end of 2012.

Contacts

  • Head of investors and shareholders'relations – Mr Bricolage SA:
  • Eve Jondeau + 33 (0)2 38 43 21 88 [email protected]
  • Financial Communications - Actifin:
  • Nicolas Meunier +33 (0)1 56 88 11 11 [email protected]
  • Charlène Masson +33 (0)1 56 88 11 11 [email protected]
  • For the full Group financial information:

www.mr-bricolage.com