Ovs S.p.a. · MIL:OVS
Ovs — H1 2021 Earnings Presentation
18 slides from Ovs's earnings presentation, Sep 22, 2021
Slide 1: 1H21 Financial Results
1H21 FINANCIAL RESULTS 1H21 Financial Results - 22 September, 2021
Slide 2: Disclaimer
1 Disclaimer This presentation is being provided to you solely for information only and may not be reproduced or redistributed to any other person. This presentation may contain certain forward-looking statements that reflect the current views of the Company’s management with respect to future event
Slide 3: 1H21 Highlights
2 1H21 Highlights IIQ EBITDA and cash generation reach all time highs 2Q21 Net Sales reached €369.7m, +35.4% vs. 2Q20 and +11% vs. 2Q19. 1H21 Net Sales amounted to €599.2m, +59.5% higher than 1H20 and - €599.2m 1H21 Net Sales 7.9% vs. 1H19, recovering from the -27.7% reported in 1Q21. +59.5% vs. 1H2
Slide 4: The Group is taking full advantage of the accelerated market consolidation
3 The Group is taking full advantage of the accelerated market consolidation Italian apparel market consolidation was already ongoing in the past years and COVID-19 boosted such trend: less competition as several stores/companies are exiting the market is resulting in the need for further market con
Slide 5: Key Income Statement Items – 2Q21
4 Key Income Statement Items – 2Q21 Faster Recovery than expected • IIQ Net Sales amounted to €369.7m, +35.4% compared to the same 2Q 2021 2Q 2020 period last year, and +11% vs. IQ19. Like-for-Like sales were almost € mln Adjusted Adjusted Chg. Chg.% double digit positive even compared to 2019: the
Slide 6: Key Income Statement Items – 1H21
5 Key Income Statement Items – 1H21 EBITDA in line with 1H19 and improved net debt • Net Sales amounted to €599.2m, up by 59.5% vs. 1H20, once again beating the market trend, which posted a recovery of +34.7% over the same period. The stores’ Like-for-like € mln 31.07.2021 31.07.2021 31.07.2020 31.0
Slide 7: 1H21 vs. 1H19 EBITDA
6 1H21 vs. 1H19 EBITDA Flexibility on costs and positive Like-for-Like once lockdowns had been eased 1H21 EBITDA reached €60.1m, in line with the pre-pandemic levels (1H19 EBITDA amounted to €62.5m), despite the fact that 1Q21 was still highly impacted by store closures across Italy. Positive top-li
Slide 8: Sales and EBITDA Performance in 1H21
7 Sales and EBITDA Performance in 1H21 Both brands and channels contributed to the strong recovery in 2Q Net Sales (€mln) Dos&Siti Web Aggregate Performance Performance By Brand Franchising&Marketplace +59% 599.2 375.7 +57% +69% 472.4 487.1 126.8 300.5 308.9 75.2 66.9 112.2 31 July 2020 31 July 2021
Slide 9: 31Jul21 Consolidated Trade Working Capital
8 31Jul21 Consolidated Trade Working Capital Strong inventory reduction Change €mln 31Jul21 31Jul20 Jul21-Jul20 Trade Receivables 95.5 86.7 8.8 A Inventory 410.3 448.7 (38.4) Trade Payables (267.7) (303.5) 35.7 Trade Working Capital 238.0 231.9 6.2 Note: TWC does not reflect the impacts related to t
Slide 10: Capex increased by €22.6m vs. 1H20
9 Capex increased by €22.6m vs. 1H20 reflecting a normalization of the level of investments after a 2020 with extraordinary focus on liquidity management OVS Refurbishments 4.2 and new project 9.7 3.5 New Openings (*) 10.4 Digital Trasformation 2.7 and IT 6.7 1.5 HQ Building 1.9 Takeover 5.6 1H20 TO
Slide 11: Consolidated Cash Flow Statement
10 Consolidated Cash Flow Statement Material increase in cash generation • 1H21 cash flow was positive and equal to €mln 1H21 1H20 €82.9m, despite the 1Q21 lockdown. Two factors helped to achieve this result: (i) the cash EBITDA Adjusted 60.1 2.1 generated by the business in the second quarter, Adju
Slide 12: Net Debt Evolution
11 Net Debt Evolution Impacts of the pandemic fully recovered even excluding proceeds from cap increase Thanks to good sales performance and the flexibility implemented in sourcing, 1H21 Cash flow (*) (excluding the proceeds arising from the capital increase) was positive. Results of this evolution
Slide 13: Net Debt and Leverage
12 Net Debt and Leverage Back to normal leverage ratio level & continuous improvement • The Group's Adjusted Net Debt, which excludes the impact arising from the mark-to-market (positive for €1.9m) and the impact of IFRS16 ( negative for €889.6m), amounts to €318.2m, €92.5m less than to a year ago a
Slide 14: Outlook
13 Outlook The Third quarter of the year started well. The vaccination campaign in place in Italy is proceeding fast, meeting the targets planned, with more than 82% of the Italian population over age 12 now vaccinated. In this regard, the current environment is much better than a year ago and there
Slide 15: FY21 Targets
14 FY21 Targets Considering the IIQ Group’s performance and the current trading, the FY21 Forecast Results have been updated. The following estimates do not take into consideration any further government restrictions due to COVID-19, and no further M&A operations before 31Jan22 KPIs €/mln FY21 Net S
Slide 16: Appendix
15 Appendix EVERLAST: one of the brands included in OVS’ offer New Stefanel F/W campaign New campaign PIOMBO women Eastpack: one of the brands within OVS’ offer
Slide 17: Consolidated Balance Sheet Statement
16 Consolidated Balance Sheet Statement 31 July '21 - 31 July '20 - 31 January '21 - €mln Chg. Reported Reported Reported Trade Receivables 95.5 86.7 102.1 (6.6) Inventory 410.3 448.7 420.1 (9.8) Trade Payables (266.9) (303.5) (264.0) (2.9) Trade Working Capital 238.9 231.9 258.2 (19.3) Other assets
Slide 18: Consolidated Profit and Loss and related adjustments
17 Consolidated Profit and Loss and related adjustments of which of which of which of which 31.07.2021 Adjustments, 31.07.2021 31.07.2020 Adjustments, 31.07.2020 Chg. Chg. % € mln Reported IFRS 16 Normalization Reported IFRS 16 Normalizations Adjusted (Adjusted) (Adjusted) Adjusted Impact Impact s &