Slide 1: 1H19 Financial Results
1H19 FINANCIAL RESULTS September 19, 2019
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: 1H19 Highlights
2 1H19 Highlights Domestic market decreased by -3.7%, mainly driven by the negative months of April and May (-9.4% and -10.9% respectively). Company market share still growing to 8%. Net Sales at €650.6m, reflecting (i) the lower purchases made in order to support the inventory reduction and (ii) th
Slide 4: Key Income Statement Items
3 Key Income Statement Items Economic results in line with forecasts. Excellent cash generation. • 1H19 Net Sales amounted to €650.6m, down by 2.4% compared to 31.07.2019 31.07.2019 31.07.2018 31.07.2018 Chg. Chg. % the same period of last year, reflecting (i) a very negative domestic € mln Reported
Slide 5: 1H19 EBITDA Evolution
4 1H19 EBITDA Evolution Mainly related to market drop in April and May and Lower purchases made Exceptional promotional activities contributing to accelerate cash generation and decrease the level of inventory Adjusted 1H19EBITDA of €62.5m was down by €18.6m compared to the previous year. As it happ
Slide 6: Sales and EBITDA Performance in 1H19
5 Sales and EBITDA Performance in 1H19 Net Sales (€mln) EBITDA (€mln) DOS & OVS websites Franchise & Marketplaces Aggregate Performance 666 651 107 116 81 560 534 63 12.2% 9.6% 31 July '18 31 July '19 31 July '18 31 July '19 Margin % (*) Performance By Brand 554 67 531 112 120 49 14 13 31 July '18 3
Slide 7: 31Jul19 Consolidated Trade Working Capital
6 31Jul19 Consolidated Trade Working Capital Change Change Jul19- Change Jul18- €mln 31Jul19 31Jul18 Jul19-Jul18 Jan19 Jan18 Trade Receivables 100.6 126.9 (26.3) 2.2 13.9 Inventory 411.2 423.3 (12.1) 0.2 35.4 Trade Payables (312.9) (392.4) 79.5 38.1 11.0 Trade Working Capital 198.9 157.8 41.1 40.5 6
Slide 8: Capex breakdown 1H19
7 Capex – In line with the strategy implemented, 1H19 capex were €12m lower compared to 1H18 (€32m). The lower investments vs. last year will continue also in 2H19. 1H2019 Capex breakdown (€ mln) Refurbishments (c. 43.7%): investments related to the existing network continued in the 1H19 It & Digita
Slide 9: Net Debt and Leverage
8 Net Debt and Leverage € mln 31 July 2019 31 July 2018 Net Debt excluding MtM & IFRS16 413.6 427.6 Leverage on EBITDA (*) 3.3x 2.2x Adjusted Net Debt/EBITDA Adjusted LTM Leverage on EBITDA (**) Adj. Average last 12 months Net Debt/EBITDA Adjusted 3.4x 2.0x LTM Notes: (*) calculated on Net Debt at 3
Slide 10: Consolidated Cash Flow Statement
9 Consolidated Cash Flow Statement €mln 31 July '19 31 July '18 EBITDA Adjusted 62.5 81.1 Adjustments1 (2.3) (58.5) Change in Trade Working Capital (40.5) (60.3) Other changes in Working Capital (19.5) (11.3) Capex (19.9) (32.3) C Operating Cash Flow (19.6) (81.4) Financial charges (8.1) (7.6) Other
Slide 11: Outlook
10 Outlook • Pressure on markdowns ended in August, and 2H19 Gross Margin recovery is well underway and in line with expectations. September started well, with net sales and gross margin benefitting from good like-for-like performances. Cost savings are proceeding in line with expectations, thus fur
Slide 12: Appendix
OVS Appendix
Slide 13: Consolidated Profit and Loss and related adjustments
12 Consolidated Profit and Loss and related adjustments of which of which of which 31.07.2019 Adjustments, 31.07.2019 31.07.2018 Adjustments, 31.07.2018 Chg. Chg. % € mln IFRS 16 Normalization Normalization Reported Adjusted Reported Adjusted (Reported) (Reported) Impact s & Reclass. s & Reclass. Ne
Slide 14: Consolidated Balance Sheet Statement
13 Consolidated Balance Sheet Statement 31 July '19 - 31 July '19 - Chg. Vs €mln 31 January '19 exc.IFRS 16 Reported Exc.IFRS 16 Trade Receivables 100.6 100.6 98.4 2.2 Inventory 411.2 411.2 411.0 0.3 Trade Payables (312.3) (312.9) (351.0) 38.0 Trade Working Capital 199.5 198.9 158.4 40.5 Other asset
Slide 15: Main terms of the Amendment and Restatement of the Financial Package
14 Main terms of the Amendment and Restatement of the Financial Package Today the agreement modifying the existing loan agreement (the “Amendment and Restatement Agreement”) was signed by OVS SpA and all the lending banks. The amendments primarily concern: the extension of the termination date of th