Technogym S.p.a · MIL:TGYM
Technogym — H1 2016 Earnings Presentation
22 slides from Technogym's earnings presentation, August 2016
Slide 1: Financial Results 1H 2016
August 2016 Financial Results 1H 2016
Slide 2: Disclaimer
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 an
Slide 3: CEO Remarks Financial Results 1H2016
CEO Remarks Financial Results 1H2016
Slide 4: Revenues showing double-digit growth
Revenues showing double-digit growth Overview of key performance indicators Revenues (€m) Key comments Positive volume effect primarily coming from 10,5% • Salesforce effectiveness 250,0 254,2 12,4% • New product launches (Group Cycle, 226,2 MyRun, Skillmill) • Sound growth in key markets covered by
Slide 5: Revenue growth stemming primarily from NA, EU and Italy
Revenue growth stemming primarily from NA, EU and Italy Revenue breakdown by geography Delta 1H2016 €m vs 1H2015 +10,5% 250,0 10,5 LATAM 24,1% 226,2 (4%) 25,3 8,4 (10%) North America 25,3% 20,2 (4%) 24,0 (9%) (10%) MEIA -5,7% 25,5 (11%) 37,0 (15%) APAC 5,3% 35,2 (16%) 23,0 (9%) Italy 19,3% 19,3 (9%)
Slide 6: All channels contributing to revenue growth ("omni-channel")
All channels contributing to revenue growth (“omni-channel”) Revenue breakdown by channel Delta 1H2016 €m vs 1H2015 +10,5% 250,0 2,9 226,2 19,5 (1%) Retail 23,8% 2,4 (8%) Inside Sales 5,1% 18,6 (1%) (8%) 55,5 (22%) Wholesale 6,6% 52,1 (23%) 172,0 153,2 (69%) Field Sales 12,3% (68%) 1H2015 1H2016 5
Slide 7: Cost base impact almost in line with Y-1 excluding non-recurring costs
Cost base impact almost in line with Y-1 performance excluding non-recurring costs Cost base evolution (% on rev) Key comments Cost 1H €207m €232m D&A / Impairments • Increase in absolute terms mainly due to % on rev 91,6% 91.6% 92,9% 92.9% R&D investment and TG Village acquisition 2.1% Other 3.7% 0
Slide 8: EBITDA growing at 23% vs Y-1 with positive impact on profitability
EBITDA growing at 23% vs Y-1 with positive impact on profitability (14,1% vs 12,6% of Y-1) EBITDA evolution (€m) Key comments EBITDA margin increase thanks to 22,9% 37,2 30.1% 35,2 • operational leverage from the increase in sales volume 28,6 • optimization of production processes with positive imp
Slide 9: Reduction in Trade Working Capital at 10,4% on revenues from 11,6% of Y-1
Reduction in Trade Working Capital at 10,4% on revenues from 11,6% of Y-1 Working Capital (€m) Key comments Inventories €m Jun 2015 Jun 2016 • Largely in line with Y-1 Inventories 67,4 68,0 • Finished products at €53m Trade receivables 76,8 88,6 • Product raw material at €13,1m Trade payable (87,2)
Slide 10: CAPEX would be in line with Y-1 excluding property and TG Village investments
CAPEX would be in line with Y-1 excluding property and TG Village investments Capex analysis (€m) Key comments % of Rev 7,2% 38,3% Property and leasehold • In 2016 acquisition of TG Village for €86m % of Rev • In 2015 acquisition of 2 buildings in Gambettola (exc. non- 3,0% 2,9% (old plant location
Slide 11: Net Financial Debt
Net Financial Debt Net Financial Debt (€m) Key comments €m 2015-June 2016-June Cash & cash equivalents increase of €8m despite of cash out for Cash & cash equivalents (45.6) (53.1) • €11m VAT payment • €21m instalment for TGB Srl acquisition • €21m cash out for Exerp acquisition Current financial r
Slide 12: Net Financial Debt walk
Net Financial Debt walk 145,4 3,2 1,4 18,3 Impacted by non-recurring Impacted largely by the activities such as the TG Exerp acquisition Village acquisition 95,7 38,2 30,0 2,2 16,5 NFD CF from Tax paid NWC CAPEX M&A, Financial Other NFD YE ’15 operat. net cost JUNE ’16 activities Excluding non-recur
Slide 13: Executive Summary
Executive Summary 1H 2016 Revenues: €250m, +10,5% vs 1H2015 (+12,4% at constant FX) thanks to positive volume effect coming primarily coming from • Salesforce effectiveness • New product launches (Group Cycle, MyRun, Skillmill) • Sound growth in key markets covered by owned subsidiaries EBITDA: €35,
Slide 14: Annexes
Annexes 13
Slide 15: Profit and Loss statement
Profit and Loss statement Jun 2015 vs €m Jun 2015 Jun 2016 Jun 2016 Δ % Total revenue 226,2 250,0 10,5% Cost or raw, ancillary and consumable materials and goods for resale (79,4) (89,0) 12,1% Service, Rentals and leases (70,0) (75,3) 7,6% of which not-recurrent (0,8) (2,2) Personnel cost (47,3) (50
Slide 16: EBITDA Reconciliation
EBITDA Reconciliation Jun 2015 vs Jun 2015 Jun 2016 €m Jun 2016 Δ % Net operating income 19,3 17,9 -7,3% Consultantcy cost 0,2 Consultancy cost 0,6 IPO Cost 2,3 Brasil tax (previous year) 2,1 China WH litigations 0,6 Total not recurring items 0,8 5,0 538,4% Adjusted Net operating income 20,1 22,9 13
Slide 17: Cash Flow statement
Cash Flow statement €m Jun 2015 Jun 2016 Profit for the year 12,1 9,2 Depreciation, amortization and impairment losses 9,8 10,7 Provisions (1,4) 1,6 Share of net result from joint ventures (0,3) (0,1) Net financial expenses 1,5 1,2 Income/(expenses) from investments (0,4) -0,1 Income tax expenses 6,
Slide 18: Balance Sheet
Balance Sheet Jun 2015 % on Jun 2016 % on €m Revenues Revenues Inventories 67,4 29,8% 68,0 27,2% Trade receivables 76,8 33,9% 88,6 35,4% Trade payables (87,2) -38,5% (100,8) -40,3% Trade Working Capital 57,0 25,2% 55,9 22,4% Other current assets/(liabilities) (38,6) -17,1% (26,8) -10,7% Current tax
Slide 19: MYRUN TECHNOGYM
MYRUN TECHNOGYM 18
Slide 20: POWER PERSONAL
POWER PERSONAL 19
Slide 21: Group Cycle
Group Cycle 20
Slide 22: Skillmill
Skillmill 21