Wolford Aktiengesellschaft · VIE:WOL
Wolford Aktiengesellschaft — Wolford — Shareholder Meeting (September 2014)
58 slides from Wolford Aktiengesellschaft's shareholder meeting presentation, Sep 18, 2014
Slide 1: Welcome to the 27th Annual General Meeting of Wolford AG
Welcome to the 27th Annual General Meeting of WOLFORD AG on September 18, 2014, at 1:00 pm in Bregenz
Slide 2: Agenda of the 27th Annual General Meeting
Agenda of the 27th Annual General Meeting 1) Presentation of the approved Annual Financial Statements according to the Austrian Commercial Code (“Austrian GAAP”) as of April 30, 2014 including the Notes and the Management Report thereto, the Corporate Governance Report, the Consolidated Financial St
Slide 3: TOP 1: Presentation of the approved Annual Financial Statements
TOP 1: Presentation of the approved Annual Financial Statements according to the Austrian Commercial Code (“Austrian GAAP”) as of April 30, 2014 including the Notes and the Management Report thereto, the Corporate Governance Report, the Consolidated Financial Statements according to IFRS as of April
Slide 4: Report of the Management Board on TOP 1
Report of the Management Board on TOP 1 The 2013/14 Financial Year: Group and Individual Financial Statement Strategic Refocusing Report on the First Quarter of 2014/15 (May – July 2014) Outlook on 2014/15 und Goals 27th Annual General Meeting, September 18, 2014 4
Slide 5: The 2013/14 Financial Year Consolidated Financial Statements (IFRS)
The 2013/14 Financial Year Consolidated Financial Statements (IFRS)
Slide 6: The 2013/14 Financial Year
The 2013/14 Financial Year ► FX-adjusted revenues rise by approx. 1% ► Negative foreign exchange effects of approx. € 2 million, primarily from USD and GBP ► Total revenues of € 155.87 million at prior year level (-0.4%) ► Growth in Retail (+5%) and Online (+23%), declines in Wholesale (-8%) ► Retai
Slide 7: Revenues by Distribution Channel
Revenues by Distribution Channel May 2013 – April 2014 vs. prior year Multi- Distribution Boutiques Department Factory brand Private channels total stores outlets retailers label + 23% + 20% + 12% + 5% + 2% + 2% - 0,4% - 3% - 8% - 11% - 10% - 21% 27th Annual General Meeting, September 18, 2014 7
Slide 8: Revenues by Distribution
Revenues by Distribution May - April 2013/14 vs. prior year Privategoods Trading label 1% Multi-brand retailers 16% Boutiques 48% Department stores 14% Controlled distribution: 69% Factory outlets 11% Online Concession SIS 4% 6% 27th Annual General Meeting, September 18, 2014 8
Slide 9: Revenue Development by Product Group
Revenue Development by Product Group May - April 2013/14 vs. prior year SALES RETAIL SALES WHOLESALE 25% 20% 18% 15% 14% 13% 11% 11% 10% 6% 5% 5% 4% 2% 0% -5% -5% -10% -8% -15% -13% -20% -21% -25% 27th Annual General Meeting, September 18, 2014 9
Slide 10: Revenues by Product Group
Revenues by Product Group Trading goods Swimwear Accessories 1% 1% 3% Lingerie 12% Legwear Ready-to-wear 53% 30% 27th Annual General Meeting, September 18, 2014 10
Slide 11: Revenue Development by Market
Revenue Development by Market May - April 2013/14 vs. prior year AT 1% DE -1% CH -9% FR -10% IT 27% ES 6% UK 2% UK (GBP) 6% SCAN -4% NL 0% BE 8% CEE -19% USA 3% USA (USD) 7% Far East 47% Rest of World -1% -30% -20% -10% 0% 10% 20% 30% 27th Annual General Meeting, September 18, 2014 11
Slide 12: Revenues by Market
Revenues by Market May 2013 – April 2014 Rest of Asia/ World Oceania 1% 5% North America 17% Rest of Germany Europe 16% 40% Austria 11% France 10% 27th Annual General Meeting, September 18, 2014 12
Slide 13: Analysis of Results
Analysis of Results ► Total revenues of € 155.87 million at prior year level (-0.4%) ► Slight decline in workforce ► Adjusted EBIT of € -0.97 million at prior year level ► Despite inflation-based cost increases ► Process optimization generates approx. € 2 million of savings ► Marketing expenses incr
Slide 14: Group Earnings Data
Group Earnings Data in € mill. 2013/14 2012/13 Chg. in % Revenues 155.87 156.47 -0.4 EBITDA adjusted 7.11 7.90 -10 EBIT adjusted -0.97 -0.91 -7 Non-recurring expenses -3.76 0 - EBIT -4.72 -0.91 > 100 Earnings before tax -5.89 -2.25 > 100 Earnings after tax -2.81 -2.76 -2 Employees (FTE on average) 1
Slide 15: Average Number of Employees (FTE)
Average Number of Employees (FTE) 1.800 1,800 1,665 1,606 1,560 1,562 1.600 1,600 1,484 1.400 1,400 735 516 606 1.200 1,200 775 812 1.000 1,000 800 800 600 600 968 954 930 400 400 831 750 200 200 00 2009/10 2010/11 2011/12 2012/13 2013/14 Employees in Austria (average) Employees at other locations (
Slide 16: Financial Review
Financial Review ► Strong operating cash flow in spite of earnings decline ► Operating cash flow at € 6.30 million (prior year: € 6.31 million), above all through further reduction in inventories ► Working capital to revenues reduced from 24.6% to 21.6% ► Higher investments (above all in expansion o
Slide 17: Group Balance Sheet Data
Group Balance Sheet Data in € mill. 30.04.2014 30.04.2013 Chg. in % Equity 74.38 78.15 -5 Net debt 17.04 15.96 +7 Working capital 33.72 38.49 -12 Balance sheet total 138.12 142.32 -3 Equity ratio 53.9% 54.9% - Gearing 22.9% 20.4% - Working capital to revenues 21.6% 24.6% - Net debt to adjusted EBITD
Slide 18: Individual Financial Statements (Austrian Commercial Code) of Wolford AG
The 2013/14 Financial Year Individual Financial Statements (Austrian Commercial Code) of Wolford AG
Slide 19: Individual Financial Statements 2013/14 of Wolford AG
Individual Financial Statements 2013/14 (Austrian Commercial Code) of Wolford AG 2013/14 2012/13 TEUR TEUR Revenues 92,154 95,611 Change in inventories of finished goods and work-in-process -3,010 -744 Other own work capitalized 43 101 Other operating income 5,874 7,010 Cost of materials and other p
Slide 20: Earnings and Dividend per Share
Earnings and Dividend per Share Recommendation to the 27th AGM on Sept.18, 2014: Waiver of dividend due to negative results in € for 2013/14 financial year (TOP 2) 1,50 1.50 1.28 1.03 1,00 1.00 0.77 0.79 0.52 0.50 0,50 0.40 0.40 0.26 0.20 0.00 0.00 0.00 0,00 2009/10 2010/11 2011/12 2012/13 2013/14 -
Slide 21: Strategic Refocusing
Strategic Refocusing
Slide 22: Objectives of Strategic Refocusing
Objectives of Strategic Refocusing ► Establishment of new management culture and incentive system ► Adjustment of product portfolio and sharpening of collection statement ► Reorientation of market communications in all areas and focus on markets with the best cost/benefit ratios ► Optimization of Mo
Slide 23: Adjustment of Product Portfolio
Adjustment of Product Portfolio ► Adjustment of the product portfolio to create stronger ties to Legwear, the company‘s DNA, and to the target group ► Based on the USPs of the brand ► Expansion of Lingerie and Bodywear product lines (above all Shapewear), reduction of Clothing (Ready-to-wear) and ex
Slide 24: The Wolford Product
The Wolford Product Wolford stands for elegant, comfortable and intelligent products. The elegant “underneath“ with the direct feeling, a caress on the skin and intelligent innovation create a type of body couture, a textile body cosmetic that defines its own niche with luxurious forms. Source: Elle
Slide 25: Updating of the Product Line
Updating of the Product Line The fundamental values of the Wolford product line, which include comfort and elegance, as well as the cosmetic energy of Wolford products (intelligence) will be updated with a modern look. Anja Rubik, photographer Mario Testino, Vogue March 2014 27th Annual General Meet
Slide 26: Future Collection Concept
Future Collection Concept Modernity & Comfort Innovation Quality Silhouette Easy Care Versatility Shape & Control 27th Annual General Meeting, September 18, 2014 26
Slide 27: Reorientation of Market Communications
Reorientation of Market Communications ► Positioning of Wolford as a producer and brand in the niche of luxury legwear and figure-embracing products with a unique wearing experience ► Focus on markets with the best cost-benefit ratios ► Steady focus on the target group (“The Wolford Woman“) through
Slide 28: New Wolford Imagery - Photographer
New Wolford Imagery - Photographer 27th Annual General Meeting, September 18, 2014 28
Slide 29: New Wolford Imagery
New Wolford Imagery 27th Annual General Meeting, September 18, 2014 29
Slide 30: (Planned) Marketing Activities in the USA
(Planned) Marketing Activities in the USA – Print campaign: Vogue, W Magazine, WWD New York – Boutique Opening Event Soho, Sept. 18, 2014 – Pure 50 Tights Launch Party “Pure Move- ment“, Oct. 2014 – Brand and product placement New York Fashion Week, Sept. 2014 and Feb. 2015 Los Angeles – Sponsoring
Slide 31: (Planned) Marketing Activities in Europe
(Planned) Marketing Activities in Europe Great Britain Germany – Brand and product placement – Print campaign: London Fashion Week, Vogue, Instyle Feb. 2015 – Official sponsor London Fashion Week, Feb. 2015 – Print campaign: Vogue and trade magazines Austria – Sponsor Life Ball, France May 2014 – Sp
Slide 32: Optimization of Monobrand Distribution
Optimization of Monobrand Distribution ► Balanced mix of partner-operated boutiques and Wolford-owned locations ► Increase in profitability of space and closing of unprofitable locations ► Further growth in Retail business with focus on top locations and expansion of E-Commerce ► Boutique openings a
Slide 33: Strengthening of Wholesale Business
Strengthening of Wholesale Business ► Expansion of Wolford-operated sales space e.g. through ► Concession shop-in-shops ► CoAff partners ► Establishment of regional showrooms for the presentation of collections and to support/improve purchasing processes ► Expansion – with parallel adjustment – of m
Slide 34: Innovation as the Strength of the Brand
Innovation as the Strength of the Brand ► Product innovation is decisive for the company‘s success ► Focus on internal development and resource distribution in production on the core expertise of Legwear, Lingerie, Bodywear ► Establishment of a structured innovation process ► Strengthening of compet
Slide 35: Innovations / Examples
Innovations / Examples ► Pure Series: thinner and more modern seams, cut edges, Pure 50: world‘s first glued tights (patent registered) ► Sheer Touch: innovative material and maximum wearing comfort ► Shape & Control: figure-shaping lingerie in three strengths, more than 60 products available ► New
Slide 36: Market-oriented and Flexible Organization
Market-oriented and Flexible Organization ► Appointment of a creative director with responsibility for ► the creative and stylistic design of the product line ► the homogeneous design of the brand‘s visual appearance from imagery to the POS ► the creative design of future product line concepts ► Cle
Slide 37: Financing from Internal Sources
Financing from Internal Sources ► Sale of non-core land in Bregenz for net proceeds of € 6.71 million and a book gain of € 3.37 million in Q1 2014/15 ► Sale of a lease option for a location in Switzerland for net proceeds/pre-tax gain of € 4.04 million in Q1 2014/15 ► Further € 10.7 million reductio
Slide 38: Report on the First Quarter of 2014/15
Report on the First Quarter of 2014/15
Slide 39: Group Earnings Data: May – July 2014
Group Earnings Data: May – July 2014 Q1 2014/15 Q1 2013/14 Chg. in % Revenues in € mill. 31.91 32.28 -1.1 EBITDA adjusted 1) in € mill. 1.94 -3.19 >100 EBIT adjusted 1) in € mill. -0.17 -5.18 +97 EBIT in € mill. 3.02 -5.18 >100 Earnings before tax in € mill. 2.79 -5.49 >100 Earnings after tax in € m
Slide 40: Group Balance Sheet Data (July 31, 2014)
Group Balance Sheet Data (July 31, 2014) 31.07.2014 31.07.2013 Chg. in % Equity in € mill. 75.99 73.72 +3 Net debt in € mill. 17.95 28.80 -38 Working capital in € mill. 38.11 43.26 -12 Balance sheet total in € mill. 142.54 147.96 -4 Equity ratio in % 53.3 49.8 - Gearing in % 23.6 39.1 - 27th Annual
Slide 41: Status Monobrand Locations
Status Monobrand Locations ► As of July 31, 2014: 267 Monobrand locations ► 174 Wolford-owned locations (Retail) ► 116 boutiques (operated by Wolford) ► 26 Factory outlets (operated by Wolford) ► 32 Concession shop-in-shops (operated by Wolford) ► 93 Partner-managed locations (Wholesale) ► Approx. 3
Slide 42: Outlook on 2014/15 and Goals
Outlook on 2014/15 and Goals
Slide 43: Corporate Goals
Corporate Goals Short-term: ► Rapid return to profitability and dividend capability ► Increase in floor space profitability of the retail business ► Relaunch of wholesale business ► Increase in sales volumes to utilize available capacity ► Optimization of internal processes and further cost savings
Slide 44: TOP 2: Resolution on the appropriation of the balance sheet result
TOP 2: Resolution on the appropriation of the balance sheet result as of April 30, 2014
Slide 45: Resolution Proposal TOP 2
Resolution Proposal TOP 2 The Management Board and Supervisory Board of Wolford AG propose to the Annual General Meeting that no dividend is distributed for the 2013/14 financial year from the balance sheet profit amounting to € 7,997,404 and that the balance sheet profit is carried forward. 27th An
Slide 46: TOP 3: Release of the Management Board from liability
TOP 3: Resolution on the release of the members of the Management Board from liability for the 2013/14 financial year
Slide 47: Resolution Proposal TOP 3
Resolution Proposal TOP 3 The Management Board and Supervisory Board of Wolford AG recommend that the Annual General Meeting approve the following proposal for this point of the agenda: “The members of the Management Board of the company, i.e. • Axel DREHER, born on January 5, 1965 • Thomas MELZER,
Slide 48: TOP 4: Release of the Supervisory Board from liability
TOP 4: Resolution on the release of the members of the Supervisory Board from liability for the 2013/14 financial year
Slide 49: Resolution Proposal TOP 4
Resolution Proposal TOP 4 The Management Board and Supervisory Board of Wolford AG recommend that the Annual General Meeting approve the following proposal for this point of the agenda: “The members of the Supervisory Board of the company, i.e. • Theresa JORDIS, born on September 4, 1949, deceased o
Slide 50: TOP 5: Remuneration of the Supervisory Board
TOP 5: Resolution on determining the remuneration for the members of the Supervisory Board as of the 2013/14 financial year
Slide 51: Resolution Proposal TOP 5
Resolution Proposal TOP 5 The Supervisory Board of Wolford AG recommends that the Annual General Meeting approve the following proposal for this point of the agenda: “The Supervisory Board members shall be granted remuneration which is effective until further notice, does not require approval on a y
Slide 52: TOP 6: Extension of time limit for realization of treasury shares
TOP 6: Resolution on the extension of the time limit for the realization of 100,000 treasury shares to September 9, 2017 in accordance with the resolution passed at the Annual General Meeting on September 6, 1999
Slide 53: Report on Treasury Stock
Report on Treasury Stock (purs. to Section 65 (3) AktG) ► The company currently holds 100,000 as treasury stock, corresponding to 2% of the share capital ► Shares were acquired in 1999 on the basis of the authorization granted by the AGM held on September 6, 1999 for a stock option program via the s
Slide 54: Resolution Proposal TOP 6
Resolution Proposal TOP 6 The Management Board and Supervisory Board of Wolford AG recommend that the Annual General Meeting approve the following proposal for this point of the agenda: “The deadline to dispose of 100,000 shares of treasury stock acquired in accordance with the resolution approved b
Slide 55: TOP 7: Election of the statutory auditor
TOP 7: Election of the statutory auditor for the Annual Financial Statements according to Austrian GAAP and the Consolidated Financial Statements according to IFRS for the 2014/15 financial year
Slide 56: Resolution Proposal TOP 7
Resolution Proposal TOP 7 The Supervisory Board recommends that the Annual General Meeting approve the following proposal for this point of the agenda: “Deloitte Audit Wirtschaftsprüfungs GmbH, Renngasse 1/Freyung, 1010 Vienna, is hereby appointed to audit the Annual Financial Statements according t
Slide 57: Welcome to your Wolford Boutique
Welcome to your Wolford Boutique and on www.wolford.com www.wolfordshop.at www.wolford.com
Slide 58: Financial Calendar and IR Information
Financial Calendar and IR Information Date Event December 12, 2014 Half-Year Report 2014/15 March 13, 2015 Q3 Report 2014/15 July 17, 2015 Publication of consolidated financial statements for 2014/15 and press conference September 14, 2015 Q1 Report 2015/16 September 17, 2015 28th Annual General Mee