Wolford Aktiengesellschaft · VIE:WOL
Wolford Aktiengesellschaft — Wolford — Erste Group Investor Conference Stegersbach 2015
42 slides from Wolford Aktiengesellschaft's conference presentation, October 2015
Slide 1: Erste Bank Group Investor Conference Stegersbach
Erste Bank Group Investor Conference Stegersbach WOLFORD AG Axel Dreher (COO/CFO) Stegersbach, 5. – 9. October 2015
Slide 2: Content
Content The Wolford Group at a Glance The 2014/15 Financial Year 1st Quarter 2015/16 Strategy Outlook 2015/16 and Targets The Wolford Share Erste Group Investor Conference, Stegersbach, 2015 2
Slide 3: The Wolford Group at a Glance
[ [Wolford] | The Wolford Group at a Glance
Slide 4: Who is Wolford?
Who is Wolford? ► Leading brand in luxury legwear with established positions in exclusive lingerie and bodywear ► Founded 1950 in Bregenz, Austria ► Present in over 60 countries ► 271 monobrand POS globally ► 2 production facilities in Austria and Slovenia (only Europe!) ► 157.35 Mio. € revenues wit
Slide 5: 65 Years of History with Pioneering Innovations
65 Years of History with Pioneering Innovations 1977 1988 1994 Miss Wolford Satin Touch Fatal Tights The first transparent Transparent The first completely support stockings with and glistering tights, seamless tights – a a shaping panty area which became top- revolution in legwear and knitted-in se
Slide 6: Legwear as the Core Product
Legwear as the Core Product May 2014 – April 2015 Swimwear Accessories 1% Trading goods 2% 1% Lingerie 14% Legwear 53% Ready-to-wear 29% Erste Group Investor Conference, Stegersbach, 2015 6
Slide 7: Number One Position in Legwear Worldwide
Number One Position in Legwear Worldwide Luxury/Aspirational WOLFORD GERBE DONNA KARAN CALVIN KLEIN Premium SPANX FALKE Middle OROBLU KUNERT Mass CALZEDONIA DIM GOLDEN LADY Erste Group Investor Conference, Stegersbach, 2015 7
Slide 8: Global Presence
Global Presence Monobrand locations worldwide: 271* ● Thereof Wolford-owned Points of sale: o Thereof partner-operated Points of sale 116 boutiquen 90 boutiques 39 concession shop-in-shops and about 3,000 other distribution partners 26 factory Outlets North America: 35 Europe: 189 Asia: 39 excl. Rus
Slide 9: Key markets Europe and USA
Key markets Europe and USA May 2014 – April 2015 Rest of World Asia/ 1% Oceania North America 5% 18% Rest of Europe Germany 40% 16% Austria 10% France 10% Erste Group Investor Conference, Stegersbach, 2015 9
Slide 10: 70% of Revenues with Monobrand-POS
70% of Revenues with Monobrand-POS May 2014 – April 2015 Private Label 2% Multi-brand Retailers 15% Boutiques 48% Department Stores 13% Controlled Distribution: 70% Factory Outlets 10% Online Concession SIS 5% 7% Erste Group Investor Conference, Stegersbach, 2015 10
Slide 11: The 2014/15 Financial Year
[ [Wolford] | The 2014/15 Financial Year
Slide 12: Group Earnings 2014/15
Group Earnings 2014/15 2014/15 2013/14 Chg. in % Revenues in € mill. 157.35 155.87 +1 EBITDA adjusted* in € mill. 10.33 7.11 +45 EBIT adjusted* in € mill. 1.56 -0.97 >100 Non recurring items* in € mill. 0.61 -3.76 >100 EBIT in € mill. 2.17 -4.72 >100 Earnings before tax in € mill. 1.21 -5.89 >100 Ea
Slide 13: The Financial Year 2014/15
The Financial Year 2014/15 ►Growing revenues in the second half year ► Weak first half year due to difficult market conditions (-3%) ► Stabilized revenues in Q3 and strong growth in Q4 (+12%), also due to FX effects ► Strong online business (+24%) and slightly growing retail business – despite the e
Slide 14: Growing Online Business
Growing Online Business May 2014 – April 2015 vs. PY Dist. Channels Boutiques Department Factory Multibrands Private Stores Outlets Label + 42% + 24% + 14% + 1% + 3% + 1% + 1% + 1% + 1% - 2% - 2% - 8% Erste Group Investor Conference, Stegersbach, 2015 14
Slide 15: Mixed picture in the markets
Mixed picture in the markets May 2014 – April 2015 vs. PY AT -7% DE -2% CH -9% FR -3% IT 9% ES 11% UK 7% UK (GBP) -1% SCAN 2% NL 5% BE -7% CEE -14% USA 5% USA (USD) -3% Far East 23% -20% -10% 0% 10% 20% 30% Erste Group Investor Conference, Stegersbach, 2015 15
Slide 16: Balance Sheet Data 30.04.15
Balance Sheet Data 30.04.15 30.04.2015 30.04.2014 Chg. in % Equity in € mill. 74.83 74.38 +1 Net Debt in € mill. 17.12 17.04 +1 Working Capital ¹) in € mill. 38.14 33.72 +13 Equity Ratio in % 51 54 - Gearing in % 23 23 - Debt Repayment Period ²) 1.7 2.4 - ¹) Including outstanding purchase price rece
Slide 17: 1st Quarter 2015/16
1st Quarter 2015/16 (May 2015 – July 2015)
Slide 18: Group Earnings 1st Quarter 2015/16
Group Earnings 1st Quarter 2015/16 in TEUR 05/15 - 07/15 05/14 - 07/14 Chg. in % Revenues 33,984 31,910 +6.5 EBITDA adjusted* -747 1,937 >100 EBIT adjusted* -3,041 -168 >100 Non recurring items* 0 3,184 >100 EBIT -3,041 3,016 >100 Earnings before tax -3,325 2,785 >100 Earnings after tax -2,554 1,490
Slide 19: Balance Sheet Data 1st Quarter 2015/16
Balance Sheet Data 1st Quarter 2015/16 in TEUR 05/15 - 07/15 05/14 - 07/14 Chg. in % Equity 72,468 75,988 -5 Net Debt 25,982 17,950 +45 Working Capital 39,763 38,112 +4.3 Balance Sheet Total 150,580 142,536 +6 Gearing in % 35.9 23.6 +51.8 Equity ratio in % 48.1 53.3 -9.7 Erste Group Investor Confere
Slide 20: Seasonal Wolford Business
Seasonal Wolford Business Erste Group Investor Conference, Stegersbach, 2015 20
Slide 21: Strategy
[ [Wolford] | Strategy
Slide 22: Renewed Strategic Vision for Wolford
Renewed Strategic Vision for Wolford The Wolford Vision: We want to be the leading global brand in the aspirational luxury segment of legwear, lingerie and bodywear by offering our consumer an unforgettable experience: „The Unforgettable Touch of Wolford.“ Strategic Goals: ► Reach every potential co
Slide 23: Return to core strengths & strategic reorientation
Return to core strengths & strategic reorientation Key elements of the strategic refocusing Status 1. Revitalization of the brand – Modernization of a strong heritage ◑ 2. Adjustments to the product portfolio – consistent fashion collection statement and securing competitive edge ◑ 3. Reorientation
Slide 24: 1. Revitalization of the brand
1. Revitalization of the brand ► Modernization of a strong heritage ► Renewal of exclusivity and “edginess” ► Generate demand (appeal) ► Focus on the “brand DNA“, the inherent nature of the brand ► Consistent brand experience – from the product to shopping experience online and offline Brand DNA ► H
Slide 25: 2. Refocusing of the product portfolio
2. Refocusing of the product portfolio … ► Back to the roots: return to figure-embracing products ► Innovation, innovation, innovation! ► Securing the leadership position in the Legwear segment ► Expansion of Lingerie and Bodywear product line (mainly Shapewear), refocusing of Ready-to-wear ► Creati
Slide 26: … by sharpening the collection statement
… by sharpening the collection statement ► Harmonizing of product groups ► Harmonization of the Essentials and Trend collections ► Communication with clear concepts and consistent topics for the ► Collection ► Products ► Marketing ► Visual merchandising at the point of sale Erste Group Investor Conf
Slide 27: … and a focus on innovation – Examples
… and a focus on innovation – Examples ► Pure 10 Tights ► Newest product in gluing technology ► The softest tights on the market thanks to the yarn innovation ► Nude 8 ► “Cosmetics” on the leg Pure 10 Tights ► 10,000 of yarn weigh 8 grams ► Almost invisible to the human eye ► Pure Plus Series Pure P
Slide 28: Focus on product development
Focus on product development Brand ► Creation of products with legitimacy and credibility (based on targeted market research) ► Compatible with brand DNA ► Exceed customer expectations Legitimacy & credibility Product Customer Erste Group Investor Conference, Stegersbach, 2015 28
Slide 29: 3. Refocusing of market communication
3. Refocusing of market communication Objectives: Increase appeal and optimize the shopping experience ► Display windows are the decisive asset! ► New shop concept and optimized product presentation ► Marketing using all communication channels (omni-channel marketing) ► Creation of digital contents
Slide 30: 4. Optimization of multi-channel distribution
4. Optimization of multi-channel distribution Retail ► Increase of floor space profitability ► Opening of flagship stores in megacities ► Expansion of Wolford-owned retail business in A cities ► Expansion of Wolford-controlled points of sale in B & C cities Wholesale ► Expansion of multi-brand distr
Slide 31: Balanced Mix of Retail and Wholesale Business
Balanced Mix of Retail and Wholesale Business… Retail Wholesale own department partnership department franchise retail store store multibrand store store store concession concession factory online travel online travel outlet business retail business retail we own inventory we invoice partner Erste G
Slide 32: …and Global Expansion
…and Global Expansion Push floor space profitability Online Business in Europe Grow business in the Americas Emerging markets² Grow business in Asia Core markets¹ Mexico, Brazil, other Latin America Travel Retail Greece, Eastern Europe, Russia, Turkey, Middle East, South Africa ¹ Company owned subsi
Slide 33: 5. New go-to-market model
5. New go-to-market model ► Wolford is transforming itself from an (ex-) wholesaler to a real retailer with own production (leveraging of monobrand stores!) ► Consistent orientation of all processes to needs at the point of sale ► New products for retail space five times per year ► Strict timing of
Slide 34: Outlook 2015/16 and Targets
[ [Wolford] | Outlook 2015/16 and Targets
Slide 35: Environment with growth perspectives
Environment with growth perspectives ► Medium-/long-term: growing global market for luxury goods ► Market for personal luxury items tripled in the last 20 years to € 223 billion (+5% in 2014) ► Number of worldwide consumers of luxury goods expected to rise by 10 million annually (Bain&Company 2014)
Slide 36: Clearly defined business targets
Clearly defined business targets in the current 2015/16 financial year: ► Further rise in revenues ► Strategic measures beginning to have a positive impact ► Ongoing tailwinds thanks to currency effects ► Sustainable profitability (positive operating results) ► Further increase in floor space profit
Slide 37: Why to Invest in Wolford?
Why to Invest in Wolford? ► Strong player in an attractive market niche of the growing market for luxury goods ► Beloved brand based on strong image, high quality products, continuous innovation and high CSR standards ► Turnaround story with a new management refocusing on the core competences of the
Slide 38: The Wolford Share
[ [Wolford] | The Wolford Share
Slide 39: Shareholder Structure
Shareholder Structure WMP Family Private Foundation Free Float >25% ~33% Sesam Private Treasury Stock Foundation 2% >15% Ralph Bartel >25% Based on available investment reports Erste Group Investor Conference, Stegersbach, 2015 39
Slide 40: Earnings and Dividend per Share
Earnings and Dividend per Share in € 1.20 1.03 1.00 0.80 0.60 0,40 0,40 0.40 0.26 0.21 0.20 0.20 0.00 0.00 0.00 2010/11 2011/12 2012/13 2013/14 2014/15 -0.20 -0.40 -0.60 -0.56 -0.57 -0.80 earnings per share dividend per share Erste Group Investor Conference, Stegersbach, 2015 40
Slide 41: Financial Calendar and IR Information
Financial Calendar and IR Information Date Event September 17, 2015 28th Annual General Meeting September 22, 2015 Ex-dividend day September 24, 2015 First day of dividend payment December 14, 2015 Half-Year Report 2015/16 March 18, 2016 Q3 Report 2015/16 Publication of consolidated financial statem
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