Ovs S.p.a. · MIL:OVS
Ovs — H1 2020 Earnings Presentation
16 slides from Ovs's earnings presentation, Sep 22, 2020
Slide 1: 1H20 Financial Results
1H20 FINANCIAL RESULTS September 22, 2020
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
Slide 3: 1H20 Highlights: Back to positive Results
2 1H20 Highlights Back to positive Results Very satisfactory sales performance in the second quarter, showing a stable organic trend after excluding the lockdown period. Starting from the second half of May (lockdown ended on 8.1% Italian Market Share the 17th) sales performed better than expected,
Slide 4: Key Income Statement Items – 2Q20
3 Key Income Statement Items – 2Q20 Economic results in the second quarter above expectations • IIQ Net Sales amounted to €273.1m, down by 18% compared to the same period last year, and aligned with the number of days still affected by the 2Q 2020 2Q 2019 Chg. Chg. % € mln (Adjusted) (Adjusted) Adju
Slide 5: Key Income Statement Items – 1H20
4 Key Income Statement Items – 1H20 IQ Adjusted EBITDA loss fully recovered. Sharp recovery in profitability • 1H20 Net Sales amounted to €375.7m, down by 42% compared to the 1H 2020 1H 2019 Chg. Chg. % same period of last year and recovering vs. the -68% reported in the € mln (Adjusted) (Adjusted)
Slide 6: 1H20 EBITDA Evolution
5 1H20 EBITDA Evolution Break-even reached € mln 1Q 2Q 62.5 Lockdown started from March Lockdown ended on May 12th. Significant drop in in- 18th. Lower in-store traffic store traffic already starting progressively recovered from mid February during 2Q 2.1 +64.6 +26.9 +7.4 (35.6) (123.7) Strong incre
Slide 7: Performance By Brand
6 Sales and EBITDA Performance in 1H20 Both brands contributed to the strong recovery in 2Q Net Sales (€mln) €mln 1H20 1H19 Chg. Chg. % Aggregate Performance Performance By Brand DOS & e-commerce 308.9 534.5 (225.6) (42.2%) Franchise & Marketplace 66.9 116.1 (49.3) (42.4%) Total 375.7 650.6 (274.9)
Slide 8: 31Jul20 Consolidated Trade Working Capital
7 31Jul20 Consolidated Trade Working Capital Good management during the pandemic to limit cash absorption over the period Change €mln 31Jul20 31Jul19 Jul20-Jul19 Trade Receivables 86.7 100.6 (13.9) Inventory 448.7 411.2 37.5 Trade Payables (303.5) (312.9) 9.4 Trade Working Capital 231.9 198.9 33.0 N
Slide 9: Net Debt and Leverage
8 Net Debt and Leverage Solid Financial structure € mln 31 July 2020 31 July 2019 Net Debt excluding MtM & IFRS16 410.6 413.6 Leverage on EBITDA (*) Adjusted Net Debt/EBITDA Adjusted LTM 4.3x 3.3x Leverage on EBITDA (**) Adj. Average last 12 months Net Debt/EBITDA 4.06x 3.44x Adjusted LTM Notes: (*)
Slide 10: Consolidated Cash Flow Statement
9 Consolidated Cash Flow Statement Good working capital management and IIQ recovery allowed to limit the lockdown impact €mln 1H20 1H19 • During the first semester, normally the Group absorbs cash due to the EBITDA Adjusted 2.1 62.5 seasonality of the business. In 1H20, despite the lower cash inflow
Slide 11: The «Phygital» customer experience
10 The «Phygital» customer experience In Italy, the online channel in our market segment is still not material, accounting for approximately €300m in the first semester and after a sudden growth during the lockdown, according to available sources, is back to the former growth rate of approximately 1
Slide 12: The «Phygital» customer experience
11 The «Phygital» customer experience v. Find your size- The customer scans the QR code on a product in store to find the right size in the store or online. AppQuality, the leading Crowdtesting startup in Italy, has analyzed the ease of purchase of the main Italian mono-brand e-commerce stores. Ease
Slide 13: Outlook
12 Outlook • This year, sales period started in August instead of July and consumers’ reaction was once again above expectations, with YTD sales progression further improving. Some delay of Fall/Winter merchandise deliveries were more than compensated by the postponed sales period, coupled with good
Slide 14: Appendix
OVS Appendix
Slide 15: Consolidated Profit and Loss and related adjustments
14 Consolidated Profit and Loss and related adjustments of which of which of which of which 31.07.2020 Adjustments, 31.07.2020 31.07.2019 Adjustments, 31.07.2019 Chg. Chg. % € mln Reported IFRS 16 Reported IFRS 16 (Adjusted) (Adjusted) Normalizatio Adjusted Normalization Adjusted Impact Impact ns &
Slide 16: Consolidated Balance Sheet Statement
15 Consolidated Balance Sheet Statement 31 July '20 - 31 July '19 - 31 January '20 - €mln Chg. Reported Reported Reported Trade Receivables 86.7 100.6 86.0 0.7 Inventory 448.7 411.2 393.1 55.6 Trade Payables (303.5) (312.3) (321.1) 17.6 Trade Working Capital 231.9 199.5 157.9 74.0 Other assets/(liab