Safilo Group S.p.a. · MIL:SFL
Safilo — Q1 2021 Earnings Presentation
24 slides from Safilo's earnings presentation, May 11, 2021
Slide 1: Q1 2021 Trading Update
Q1 2021 Trading Update May 11, 2021
Slide 2: Disclaimer
Q1 2021 Trading Update May 11, 2021 DISCLAIMER This presentation may contain forward looking statements based on current expectations and projects of the Group in relation to future events. Due to their specific nature, these statements are subject to inherent risks and uncertainties, as they depend
Slide 3: Q1 2021 Business Above Pre-Pandemic Levels
Q1 2021 BUSINESS ABOVE PRE-PANDEMIC LEVELS “2021 represents a fresh start for our Group, after two years of significant business turnarounds to establish a stronger and more resilient business model, with a diversified brand portfolio and a supply chain right-sized to market reality. We are pleased
Slide 4: Q1 Economic and Financial Highlights
Q1 ECONOMIC AND FINANCIAL HIGHLIGHTS NET SALES €251.4M vs Q1 2020 vs Q1 2019 +20.0% +6.0% @constant FX @constant FX ✓ Strong recovery of own and licensed brands ✓ New brands in the portfolio effectively compensating the licenses terminated at the end of 2020 ADJUSTED1 EBITDA €25.8M ADJUSTED1 EBITDA
Slide 5: Q1 2021 Sales Performance
Q1 2021 SALES PERFORMANCE
Slide 6: Our Q1 2021 Net Sales Performance
OUR Q1 2021 NET SALES PERFORMANCE NET SALES AT € 251.4M vs Q1 2020 vs Q1 2019 +20.0% @constant FX +6.0% @constant FX +13.7% @current FX +1.7% @current FX EFFECTIVE PORTFOLIO REBALANCE New business compensating terminated licenses +++Blenders/Privé Revaux/Levi’s/DavidBeckham/Missoni/Ports/ Isabel Mar
Slide 7: Our Q1 2021 Total Online Business
OUR Q1 2021 TOTAL ONLINE BUSINESS MORE THAN 3 TIMES BIGGER THAN IN Q1 ‘19, OUR ONLINE BUSINESS SURGED +164% VS Q1 ’20 THANKS TO OUR DIGITAL TRANSFORMATION STRATEGY SAFILO’S TOTAL ONLINE BUSINESS 40 (% on total net sales and % change Q1 ‘21 vs Q1’20) 13% 30 Internet pure players (IPP) +48% Smith’s D2
Slide 8: Our Q1 2021 Net Sales Performance by Region
OUR Q1 2021 NET SALES PERFORMANCE NORTH AMERICA AT €119.1M EUROPE AT €101.5M vs Q1 2020 vs Q1 2019 vs Q1 2020 vs Q1 2019 +53.8% @constant FX +41.8% @constant FX -5.0% @constant FX -17.8% @constant FX ✓ Strong sales growth in US 3Os, chains and dept. stores ✓ Persisting retail restrictions in a numbe
Slide 9: Q1 2021 Economic and Financial Performance
Q1 2021 ECONOMIC AND FINANCIAL PERFOMANCE
Slide 10: Key Drivers of Our Q1 Economic Performance
KEY DRIVERS OF OUR Q1 ECONOMIC PERFORMANCE 1) POSITIVE OPERATING LEVERAGE 2) NOW LEANER OVERHEADS & CONTINUED STRUCTURAL SAVINGS 3) NON-RECURRING COSTS, MAINLY DUE TO THE ANNOUNCED CLOSURE OF THE ORMOZ PRODUCTION PLANT IN SLOVENIA 7
Slide 11: Our Q1 2021 Economic Performance: Gross Profit
OUR Q1 2021 ECONOMIC PERFORMANCE REPORTED GROSS PROFIT € 126.6M margin at 50.4% vs Q1 2020 vs Q1 2019 +15.7% -2.8% +90 bps -230 bps ADJUSTED1 GROSS PROFIT € 131.2M SUBSTANTIALLY IN LINE margin1 at 52.2% WITH Q1 2019 vs Q1 2020 vs Q1 2019 +19.9% +0.8% +270 bps -50 bps VOLUMES REBOUND SUPPORTING OPERA
Slide 12: Our Q1 2021 Economic Performance: Adjusted EBITDA
OUR Q1 2021 ECONOMIC PERFORMANCE REPORTED EBITDA € 13.4M margin at 5.3% vs Q1 2020 vs Q1 2019 +293.1% -29.0% +380 bps -230 bps ADJUSTED1 EBITDA € 25.8M WELL ABOVE Q1 2019 margin at 10.3% vs Q1 2020 vs Q1 2019 +342.8% +29.4% +770 bps +220 bps CONTINUED COSTS DISCIPLINE + STRUCTURAL SAVINGS LEANER OVE
Slide 13: Group Net Debt €223.9M
OUR FINANCIAL PERFORMANCE AS AT MARCH 31, 2021 GROUP NET DEBT € 223.9M (€ 181.3M pre-IFRS 16) vs FY 2020 substantially in line (+1.8M/+2.4M pre-IFRS 16) IMPROVED ECONOMIC PERFORMANCE CONTINUED STRICT CONTROL ON NET WORKING CAPITAL 10
Slide 14: Business Evolutions After Q1 2021
BUSINESS EVOLUTIONS AFTER Q1 2021
Slide 15: Further Actions of Our Industrial Plan
FURTHER ACTIONS OF OUR INDUSTRIAL PLAN IN LINE WITH THE BUSINESS OBJECTIVE OF IMPROVING THE EFFICIENCY OF THE GROUP MANUFACTURING FOOTPRINT, TO ENABLE GROSS MARGIN RECOVERY AND THE GROUP ECONOMIC & FINANCIAL SOLIDITY REALIGNING OUR MANUFACTURING CAPACITY TO THE CURRENT AND FUTURE PRODUCTION NEEDS Ma
Slide 16: Further Actions of Our Brands Portfolio Strategy
FURTHER ACTIONS OF OUR BRANDS PORTFOLIO STRATEGY NEW 5-YEAR GLOBAL LICENSING AGREEMENT WITH ✓ Global fashion brand founded in 1995 by Dean & Dan Caten, renowned for its uniqueness and creativity An important brand addition and a significant ✓ opportunity to grow in the fashion luxury segment First o
Slide 17: Business Update in Relation to the Covid-19 Pandemic
BUSINESS UPDATE IN RELATION TO THE COVID-19 PANDEMIC In the month of April, sales trends remained strong, still driven by outstanding growth in the United States, in the online business and by the progress of a number of emerging countries. Retail restrictions and the uncertainties surrounding store
Slide 18: Q&A
Q1 2021 Trading Update May 11, 2021 Q&A
Slide 19: Appendices
Q1 2021 Trading Update May 11, 2021 Appendices Q1 2021 APPENDICES
Slide 20: Notes to the Presentation
NOTES TO THE PRESENTATION 1 In Q1 2021, , the adjusted economic results excludes non-recurring costs for Euro 16.2 million (Euro 4.6 million at the gross profit level, and Euro 12.4 million at the EBITDA level), mainly due to the announced closure, starting from June 2021, of the Ormoz production pl
Slide 21: Net Sales by Geographic Area
NET SALES BY GEOGRAPHIC AREA % change % change (Euro million) 2021 vs 2020 2021 vs 2019 current constant current constant Q1 2021 % Q1 2020 % Q1 2019 % forex forex forex forex Europe 101.5 40.4 107.7 48.7 124.6 50.4 -5.8% -5.0% -18.5% -17.8% North America 119.1 47.4 84.4 38.2 88.9 36.0 +41.1% +53.8%
Slide 22: Q1 2021 Economic KPIs
Q1 2021 ECONOMIC KPIs Q1 2021 Q1 2020 Q1 2019 % Change % Change (Euro in millions) 2021 vs 2020 2021 vs 2019 Net sales 251.4 221.1 247.3 +13.7% +1.7% Gross profit 126.6 109.4 130.2 +15.7% -2.8% % on net sales 50.4% 49.5% 52.7% EBITDA 13.4 3.4 18.9 +293.1% -29.0% % on net sales 5.3% 1.5% 7.6% 1 Adjus
Slide 23: Exchange Rates
EXCHANGE RATES (Appreciation)/De (Appreciation)/De As of Average for preciation preciation March 31, December 31, March 31, March 31, Currency Code % % 2021 2020 2021 2020 US Dollar USD 1.1725 1.2271 -4.4% 1.2049 1.1027 9.3% Hong-Kong Dollar HKD 9.1153 9.5142 -4.2% 9.3465 8.5686 9.1% Swiss Franc CHF
Slide 24: Brands Portfolio
Safilo BRANDS PORTFOLIO CARRERA cVewean aimee tase BOSS ISABEL MARANT MISSONI FENDI SMITH JIMMY CHOO MOSCHINO P@RTS ELIE SAAB . GIVENCHY Polaroid TOMMY SEHILFIGER B kate spade rag tone THE _.@... # TOMMY REBECCA MINKOFF warc JACOBS Fuicpy Couture MISSONT A Levis | pierre cardin uz claiborne FOSSIL h