Technogym S.p.a · MIL:TGYM
Technogym — FY2023 Earnings Presentation
26 slides from Technogym's earnings presentation, Mar 25, 2024
Slide 1: Financial Results FY 2023
Financial Results FY 2023 ► Investor Presentation - March 25th 2024 Strictly private & confidential 1
Slide 2: Disclaimer
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 an
Slide 3: Nerio Alessandri (Founder & CEO)
Nerio Alessandri (Founder & CEO)
Slide 4: 2023 Healthy Results confirm our long-term sustainable and profitable growth story
"2023 Healthy Results confirm our long- term sustainable and profitable growth story, as we promised during our IPO" Nerio Alessandri
Slide 5: FY 2023 Results Highlights
TECHNOGYM | FY 2023 Results Highlights TECHNOGYM FY 2023 REVENUE EUR 808 m (new record) +12% vs. 2022 +14% at costant F/X EBITDA NET INCOME NET CASH POSITION EUR 152 m (new record) EUR 78 m EUR 127 m 18.8% on revenue 9.7% on revenue Cash conversion rate 63% proposed dividend of € 52 million (70% pay
Slide 6: Michele Bertacco, Investor Relations Director
Michele Bertacco Investor Relations Director Strictly private & confidential 7
Slide 7: Health is wealth
Wellness market growth drivers are EXPANDING with Health as prevention 1 2 3 4 Growing consumer interest Ageing population emphasize Governments aim to reduce Focus on employee's for longevity & wellbeing prevention & health needs healthcare costs wellness & HC cost reduction ▪ From life-span to hea
Slide 8: Our potential market account for $4.4 trillion: a great upside
Our potential market account for $ 4.4 trillion: a great upside WELLNESS ECONOMY: ~4.400 B$ (Health, prevention, nutrition, weight loss…) PHYSICAL ACTIVITY: ~738 B$ FITNESS EQUIPMENT MARKET: ~14 B$ COMMERCIAL MARKET ~7B$ HOME MARKET ~7B$ Club Residential Private users Health Corporate Strictly priva
Slide 9: Precision Training
PRECISION TRAINING Strictly private & confidential 10
Slide 10: Personalized Experience
PERSONALIZED EXPERIENCE Strictly private & confidential 11
Slide 11: William Marabini, Chief Financial Officer
William Marabini Chief Financial Officer Strictly private & confidential 12
Slide 12: All Key Performance Indicators UP
All Key Performance Indicators UP € millions 2023 vs 2022 P&L 808 Revenues +12.0% 722 152 EBITDA ADJ 132 +15.2% 101 EBIT ADJ 85 +18.6% 78 Net profit ADJ 66 +18.6% Balance sheet 127 +5.2 Net Fin. Position 122 72 Free Cash Flow 78 -6.5 Strictly private & confidential 2023 2022 13
Slide 13: At constant F/X growth was even higher: +14%
At costant F/X growth was even higher: +14% € millions Revenue ▪ Comments +12.0% +14.2% 808.1 824.1 721.5 • Growth would have been even higher at costant F/X • Worth noting that US and Canada at constant F/X posted a +10% growth 2022 2023 2023 constant FX Strictly private & confidential 14
Slide 14: Strong growth in MEIA, Europe and LATAM
Strong growth in MEIA, Europe and LATAM € millions +12.0% 808,1 2023 vs. PY 721.5 378.2 (46.8%) EUROPE (EXCL. ITA) +13.5% 333.2 (46.2%) " 115.7 (14.3%) APAC -5.4% 122.3 (17.0%) 108.7 83.7 (13.5%) MEIA +29.8% (11.6%) 106.9 101.1 NORTH A. +5.8% (13.2%) (14.0%) 63.7 76.9 ITA +20.8% (8.8%) (9.5%) 17.5 2
Slide 15: Strong growth in BtoB
Strong growth in BtoB € millions +12.0% Comments 808,1 2023 vs. PY 721.5 Commercial or BtoB ▪ All segments grew ▪ Growth level was double digit for all the segments ▪ Health Corporate and 642.4 +15.5% Performance Segments (79.5%) BtoB 556.1 being the best performer (77.1%) boosted thanks to the uniq
Slide 16: Strong growth in Field Sales and Retail
Strong growth in Field Sales and Retail € millions +12.0% Comments 808.1 2023 vs. PY ▪ Field sales performance 721.5 boosted by increased productivity ▪ Retail pushed by new openings in Germany and UK 540.8 +16.1% 465.8 (66.9%) FIELD SALES ▪ Wholesale posted another (64.6%) positive year with signif
Slide 17: Statutory Profit & Loss FY 2023
Statutory Profit & Loss FY 2023 € millions Dec 2022 Dec 2023 Var. Var. % % on % on Total revenue 721.5 sales 808.1 sales 86.6 12.0% ▪ Comments Cost of raw, ancillary and consumable materials (248.1) (34.4%) (269.8) (33.4%) (21.8) 8.8% and goods for resale of which (cost) not recurrent (0.0) (0.0) 0.
Slide 18: Trade working capital
Trade working capital € millions Trade Working Capital evolution Comments 68.0 Inventories Inventories 37.9 Trade Receivables ▪ Increase is mainly driven by volumes’ growth Trade Payables 100.7 103.6 ▪ Higher Inventory Turnover by 0.4x vs Dec ’22. Trade receivables 110.8 119.8 ▪ DSO improved by 2 da
Slide 19: Capex at 4.4% on revenue: investing in Digital and IT
Capex at 4.4% on revenue: investing in Digital and IT € millions Comments % on Revenue 4.8% 4.4% Tangibles Capex 35.3 ▪ Tools and molds for new products 34.3 PPE ▪ Production lines and manufacturing equipment Intangibles ▪ Facilities expansion (i.e. new offices and 14.4 16.5 boutiques) Intangibles C
Slide 20: Free cash flow
Free cash flow € millions Cash Conversion* 63.2% 145.9 Dec -14.8 95.9 2023 -35.3 71.5 -24.4 Cash flows from NWC CapEx Free Cash Flow Taxes paid Free Cash Flow operat. activities** (before Taxes) Cash Conversion* 77.5% 130.3 4.2 100.2 Dec -34.3 78.0 2022 -22.3 Cash flows from NWC CapEx Free Cash Flow
Slide 21: Net financial position: a very positive result
Net financial position: a very positive result, showing how healthy is our growth € millions Net financial position Comments 121.6 126.8 Cash, cash equivalent and deposit at 229,0 m€ Zero bank debt as of December 31st 2023. 225.2 229.0 Other financial debts € 102,0 m -11.8 0.0 -91.9 -102.2 2022 2023
Slide 22: Positive Net Financial Position to € 127 m from € 122 m in 2022
Positive Net Financial Position to € 127 m from € 122 m in 2022 € millions +5.2 +11.2 145.9 -14.8 -35.3 -24.4 0.3 170.6 37.8 159.4 3.7 -51.3 -6.9 -6.0 121.6 126.8 -43.8 Dec. 2022 IFRS16 Dec. 2022 TG Emirates CF from NWC Capex Taxes Dividend Own Shares Dividends Financial, Dec. 2023 IFRS16 Dec. 2023
Slide 23: Balance Sheet December 2023
Balance Sheet December 2023 € millions % on % on Dec 2022 Dec 2023 Var. % Sales Sales Inventories 100.7 14.0% 103.6 12.8% 2.9% Trade receivables 110.8 15.4% 119.8 14.8% 8.1% Trade payables (173.6) (24.1%) (155.4) (19.2%) (10.5%) Trade Working Capital 37.9 5.3% 68.0 8.4% 79.2% Other current assets/(l
Slide 24: Strictly private & confidential
Strictly private & confidential 25
Slide 25: Technogym 40 years team photo
Slide 26: THANK YOU!
THANK YOU! Strictly private & confidential 27