Ovs S.p.a. · MIL:OVS

Ovs — FY2017 Earnings Presentation

16 slides from Ovs's earnings presentation, Apr 18, 2018

  1. Slide 1: FY17 Financial Results

    FY17 FINANCIAL RESULTS April 18, 2018

  2. Slide 2: Disclaimer

    1 Disclaimer This presentation is being furnished to you solely for your information and may not be reproduced or redistributed to any other person. This presentation might contain certain forward-looking statements that reflect the Company’s management’s current views with respect to future events

  3. Slide 3: FY17 Highlights

    2 FY17 Highlights Total Net Sales reached €1,525.7m (+12.0%), or €1,415.1m (+3.9%) excluding the sell-in to Sempione Fashion AG (ex. Charles Vögele). The growth was driven by network expansion, despite the contraction in the domestic market of -1.3% in 2017 and of -5% in January 2018. Like-for- like

  4. Slide 4: Key Income Statement Items

    3 Key Income Statement Items Positive operating performance confirmed in FY17 31.01.2018 31.01.2017 Chg. Chg. % € mln 31.01.2018 31.01.2017 Adjusted Adjusted (Adjusted) (Adjusted) Net Sales 1,525.7 1,525.7 1,362.6 1,362.6 163.1 12.0% Net Sales* 1,415.1 1,415.1 1,362.6 1,362.6 52.5 3.9% Gross Margin

  5. Slide 5: Aggregate Sales and EBITDA Performance in FY17

    4 Aggregate Sales and EBITDA Performance in FY17 Net Sales (€mln) EBITDA (€mln) 13.7% 13.9% Aggregate Performance 1,526 1,363 Margin % (*) • Net Sales amounted to €1.5 billions, increasing by +€163m, out of which €111m were related to the sell-in to Sempione Fashion AG. The operating turnover increa

  6. Slide 6: FY17 Sales and EBITDA Performance by brand

    5 FY17 Sales and EBITDA Performance by brand Performance By Brand 14.3% 14.3% 10.6% 11.6% Margin % (*) • OVS net sales increased by +€35.4m (+3.1%), driven by network expansion in Italy and in foreign countries. Upim net sales rose by €17m (+8.0%), benefiting from the positive development of full-fo

  7. Slide 7: FY17 Top line growth: pillars

    6 FY17 Top line growth: pillars Italy International Digital Organic Growth Inorganic Growth www.OVS.it Commercial Agreement with Sempione Fashion AG 1) Organic Growth proceeded as planned, with OVS and OVS Kids increasing their The consolidation of the FY17 e-commerce sales almost presence by 43% of

  8. Slide 8: 31Jan18 Consolidated Trade Working Capital

    7 31Jan18 Consolidated Trade Working Capital CV Impact on TWC of Which Related to Change without Sempione €mln 31Jan17 31Jan18 Change Sempione Fashion AG Fashion AG Impact Trade Receivables 75.3 113.0 37.7 30.3 7.4 Inventory 340.6 387.9 47.3 34.3 13.0 Trade Payables (367.7) (403.4) (35.7) (25.8) (10

  9. Slide 9: Capex

    8 Capex 2017 Capex breakdown (€ mln) New openings (c. 41.2% of total) Refurbishment, maintenance and other commercial projects of the existing network (c. 25.0%) IT and Digital Transformation (c. 22.1%), mainly related to operational projects Logistics and others (c. 11.8 %) Total €68m

  10. Slide 10: Net Debt and Leverage

    9 Net Debt and Leverage € mln 31 January 2018 31 January 2017 Net Debt (*) 317.9 283.2 EBITDA LTM Adjusted 196.5 186.7 Leverage su EBITDA (*) 1.6x 1.5x • As of 31st January 2018 net debt was equal to €317.9m. The amount excludes the liability of -€59.9m related to the mark-to-market effect. It has t

  11. Slide 11: Consolidated Cash Flow Statement

    10 Consolidated Cash Flow Statement Operating cash flow improved by +€9.5m, even in presence of capex increase of about +€5.5m and the already explained impact at working capital level arising from the Commercial Agreement in place with Sempione Fashion AG. Financial charges remained stable compared

  12. Slide 12: Outlook

    11 Outlook • After a tough Italian market experienced in January 2018, February and March continued to be negative according to Sita Ricerca. Main reasons are linked to unfavourable weather conditions (exeptional long winter with Spring that started only in mid April) and the Italian elections held

  13. Slide 13: Appendix

    OVS Appendix

  14. Slide 14: Consolidated Profit and Loss and related adjustments (1 of 2)

    13 Consolidated Profit and Loss and related adjustments (1 of 2) o/w: o/w: non recurring; non recurring; Stock Option; Stock Option; 31.01.2018 o/w: o/w: Adjustments & 31.01.2018 31.01.2017 o/w: o/w: Adjustments & 31.01.2017 € mln Derivatives; Derivatives; IFRS non recurring forex reclass. Reclass.

  15. Slide 15: Consolidated Profit and Loss and related adjustments (2 of 2)

    14 Consolidated Profit and Loss and related adjustments (2 of 2) The following normalizations and adjustments were carried out in 2017, with no impact on cash and/or not representative of the normal course of business operations. Specifically, there were €4.6 million of financial incomes reclassifie

  16. Slide 16: Consolidated Balance Sheet Statement

    15 Consolidated Balance Sheet Statement €mln 31 January '18 31 January '17 Chg. Trade Receivables 113.0 75.3 37.7 Inventory 387.9 340.6 47.3 Trade Payables (403.4) (367.7) (35.7) Net Operating Working Capital 97.5 48.2 49.3 Other assets/(liabilities) (51.2) (79.0) 27.8 Net Working Capital 46.3 (30.9

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