Tcm Group As · OMXCOP:TCM
Tcm Group As — Q4 2019 Earnings Presentation
14 slides from Tcm Group As's earnings presentation, Feb 26, 2020
Slide 1: TCM Group A/S Interim Report October-December 2019
TCM Group A/S Interim Report October-December 2019 February 26, 2020
Slide 2: Fourth quarter growth takes TCM Group above the DKK 1 billion revenue milestone
Fourth quarter growth takes TCM Group above the DKK 1 billion revenue milestone Revenue 3.9% 262 mDKK revenue (252 mDKK) growth Cash conversion Underlying 99.9% organic growth (102.6%) 6% NWC ratio Adjusted EBITA -10.8% 45 mDKK (-10.5%) (46 mDKK) Adj. EBITA margin 17.3% (18.3%) 2
Slide 3: Business update Q4 2019
Business update Q4 2019 ❑ In Q4 the underlying organic growth was 6%. ❑ Growth primarily driven by B2B through the branded stores in Denmark ❑ Positive Danish market development in 2019 of 1-2%, and TCM Group achieved 13.4% growth in the Danish market in 2019, thus continued to gain market share ❑ N
Slide 4: Supply chain initiatives
Supply chain initiatives ❑ Investments in lacquering department in Q4 as the first step in an expansion of the current production setup. The investment will enable higher capacity, higher quality and at the same the total CO2 emission will be reduced by c. 5% - next step in this project will be impl
Slide 5: Financial highlights Q4
Financial highlights Q4 Q4 2019 ❑ Net revenue 262 mDKK (252) ❑ Revenue growth of 3.9% ❑ Underlying organic growth of 6%, adjusted for divestment of own store to franchisee ❑ Adjusted EBITA 45 mDKK (46) ❑ Adjusted EBITA margin 17.3% (18.3%) ❑ EBIT 39 mDKK (44) ❑ EBIT margin 15.0% (17.6%) ❑ Adjusted E
Slide 6: Financial highlights full year
Financial highlights full year Full year 2019 ❑ Net revenue 1,007 mDKK (900) ❑ Organic growth of 11.9% ❑ Adjusted EBITA 161 mDKK (148) ❑ Adjusted EBITA margin 16.0% (16.4%) ❑ EBIT 147 mDKK (138) ❑ EBIT margin 14.6% (15.3%) ❑ Adjusted EBIT 154 mDKK (140) 6
Slide 7: Fourth quarter growth takes TCM Group above the DKK 1 billion revenue milestone
Fourth quarter growth takes TCM Group above the DKK 1 billion revenue milestone 2019 2018 2019 2018 Oct-Dec Oct-Dec Jan-Dec Jan-Dec Net revenue (mDKK) 268 252 1,007 900 - Organic growth 3.9% 11.9% Revenue: ❑ Revenue growth in Denmark was +4.1% - underlying 4.1% growth growth 6% adjusted for divestme
Slide 8: P&L highlights
P&L highlights 2019 2018 2019 2018 Oct-Dec Oct-Dec Jan-Dec Jan-Dec Net revenue (mDKK) 262 252 1,007 900 - Gross Margin 28.9% 30.9% 27.8% 29.2% Adjusted EBITA (mDKK) 45 46 161 148 - Adj. EBITA margin 16.4% 16.1% 15.5% 15.7% EBIT (mDKK) 39 44 147 138 - EBIT margin 15.0% 17.6% 14.6% 15.3% Adjusted EBIT
Slide 9: All-time record NWC ratio
All-time record NWC ratio 2019 2018 Dec Dec Net working capital (mDKK) -109 -94 NWC ratio -10.8% -10.5% NIBD (mDKK) 52 91 Leverage (x EBITDA) 0.3 0.6 Q4 comments ❑ NWC ratio improved compared to last year driven by lower trade receivables ❑ NIBD decreased by 67mDKK during Q4. ❑ At the end of Q4 NIBD
Slide 10: High cash conversion continued
High cash conversion continued 2019 2018 2019 2018 Oct-Dec Oct-Dec Jan-Dec Jan-Dec Operating profit (mDKK) 39 44 147 138 Depreciation and amortization (mDKK) 5 4 21 15 Change in NWC (mDKK) 36 39 15 13 Tax a.o (mDKK) -31 -29 -35 -33 Capex excl. acquisitions (mDKK) -6 -5 -15 8 Operating cash flow excl
Slide 11: Financial outlook 2020
Financial outlook 2020 TCM Group ❑ Full-year guidance for 2020 is: ❑ Net revenue: 1,040-1,080mDKK corresponding to growth of 3-7% ❑ EBIT: 158-170mDKK corresponding to growth of 3-11% (EBIT excluding non-recurring items) 11
Slide 12: Proposed dividend for 2019
Proposed divend for 2019 ❑ The Board of Directors for TCM Group proposes to pay an ordinary dividend of 5.25 DKK per share corresponding to 47% of net profit. ❑ The dividend distribution will be up for approval at the Annual General Meeting on 31 March 2020 12
Slide 13: Change of Executive Management in TCM Group
Change of Executive Management in TCM Group ❑ CEO Ole Lund Andersen steps down and is replaced by new CEO Torben Paulin as of 1 March 2020 13
Slide 14: Q&A
Q&A