Ovs S.p.a. · MIL:OVS
Ovs — H1 2015 Earnings Presentation
12 slides from Ovs's earnings presentation, September 2015
Slide 1: 1H15 Financial Results
1H15 FINANCIAL RESULTS OVS September, 2015
Slide 2: Disclaimer
1 Disclaimer This presentation is being furnished to you solely for your information and may not be reproduced or redistributed to any other oth person. This presentation might contain certain forward-looking looking statements that reflect the Company’s management’s current views with respect re to
Slide 3: 1H15 Highlights
2 1H15 Highlights Strong sales growth across all brands and categories, sustained by positive LfL (notwithstanding a very strong 1H14 performance) and network expansion slightly ahead of plan +7.1% Increase in Net Sales Increase in sales driven by (i)) positive LfL (+1.6%) and (ii) network expansion
Slide 4: Key Income Statement Items
3 Key Income Statement Items Positive performance continues in 1H15 1H15 1H14 Key Metrics* € mln % of Net Sales € mln % of Net Sales Growth Net Sales 611.1 570.4 7.1% EBITDA 67.7 11.1% 56.3 9.9% 20.4% EBIT 40.1 6.6% 28.0 4.9% 43.2% PBT 33.2 5.4% (2.0) (0.4)% n.a. Net Income 20.0 3.3% -14.8 (2.6)% n.
Slide 5: Performance By Brand
4 Sales and EBITDA Performance Net Sales (€mln) EBITDA (€mln) • Improved operating leverage • Accretive impact of higher franchise sales Aggregate Performance 611.1 • Increase in EBITDA and margin for both brands 570.4 67.7 56.3 31 Jul ‘14 31 Jul ‘15 31 Jul ‘14 31 Jul ‘15 9.9% 11.1% Brand(*) Perform
Slide 6: Net Working Capital
5 Net Working Capital € mln 31 July '15 31 July '14 Change Accounts Receivable 65.0 59.6 5.4 Inventory 301.9 280.1 21.8 Accounts Payable (367.6) (314.7) (52.9) Net Working Capital (0.7) 25.0 (25.7) • The current working capital structure improved and is coherent with the seasonal trends of the busin
Slide 7: Capex
6 Capex 1H 2015 Capex Split (%) • Capex (€33.9m in 1H15) is slightly ahead of consensus for 100% full year as a result of new openings continuing ahead of schedule. The 1H15 capex spending includes: 90% new openings (c. 44% of total capex) 80% 44% 70% refurbishment and maintenance of the existing ne
Slide 8: Consolidated Cash Flow Statement
7 Consolidated Cash Flow Statement € mln 1H15 EBITDA 67.7 Change in Net Working Capital (13.1) Change in other assets (liabilities) (11.5) Capex (33.9) Operating Cash Flow 9.2 Financial Expenses (12.3) TFR (Employees’’ leaving indemnity) (1.6) Taxes (17.9) IPO costs (excl. bank commissions) (3.4) IP
Slide 9: Net Debt and Leverage
8 Net Debt and Leverage € mln 31 July '15 31 January '15 Net Debt 319.2 624.4 EBITDA LTM 168.5 157.1 Leverage on EBITDA 1.9x 4.0x • During 2015 leverage declined by 2.1x EBITDA vs. 31 January 2015 mainly due to the proceeds from the IPO. The leverage ratio will further benefit from cash generation o
Slide 10: Outlook
9 Outlook • Revenues expected to grow in line with management plans • Network expansion is on track – +18 stores since 31-Jul-2015, of which 5 full format DOS and 13 franchise “kids” stores – In early September OVS opened its largest flagship store ever, covering an area of 2,800m2 in Corso Buenos A
Slide 11: Appendix
OVS Appendix
Slide 12: Consolidated Balance Sheet Statement
11 Consolidated Balance Sheet Statement € mln 31 July '15 31 January ‘15 Delta Receivables 65.0 73.0 (8.0) Inventory 301.9 287.6 14.2 Payables (367.6) (374.4) 6.9 Net Operating Working Capital (0.7) (13.8) 13.1 Other Short-term Non-financial Receivables (Payables) (50.5) (69.5) 19.0 Net Working Capi