Safilo Group S.p.a. · MIL:SFL
Safilo — 9M 2018 Earnings Presentation
15 slides from Safilo's earnings presentation, October 2018
Slide 1: Q3 and 9M 2018 Trading Update
Q3 and 9M 2018 Trading Update
Slide 2: Disclaimer
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 on certain circumstances and facts,
Slide 3: Q3 and 9M 2018 Business and Economic Update
Q3 AND 9M 2018 BUSINESS AND ECONOMIC UPDATE in millions of Euro and % change vs same periods of 2017 • Q3 SALES PERFORMANCE REFLECTED WORK IN PROGRESS IN DEVELOPED NET SALES 713.7 -5.6% @cFX MARKETS TURNAROUND AND SOME DECELERATION OF EMERGING MARKETS 492.2 -4.3% @cFX • Positive performance of Polar
Slide 4: Q3 2018 Net Sales Performance
Q3 2018 NET SALES PERFORMANCE % change vs Q3 2017 -8.4% @ constant FX (-7.7% Wholesale) -11.1% @ constant FX, excl. Gucci business • Higher contribution of Gucci business, whose volumes (SPPA) are this year more heavily phased in H2 • On the other hand, the quarterly performance include an higher ne
Slide 5: 9M 2018 Net Sales Performance
9M 2018 NET SALES PERFORMANCE % change vs 9M 2017 -5.6% @ constant FX (-5.0% Wholesale) -6.0% @ constant FX, excl. Gucci business NORTH AMERICA EUROPE ASIA-PACIFIC ROW -7.7% -6.8% +10.8% +0.9% Wholesale: -6.5% Retail: -14.3% 4
Slide 6: Gross Margin Performance
GROSS MARGIN PERFORMANCE in millions of Euro and % on total net sales -30bps +20bps @cFX 51.6% 51.3% 407.6 366.5 -10.1% KEY DRIVERS • Q3 Gross Margin improvement: • COGS efficiencies, counterbalancing negative volume/mix 9M 2017 9M 2018 effect and forex impact • 9M Gross Margin slightly higher than
Slide 7: Adj. EBITDA Performance
ADJ.1 EBITDA PERFORMANCE In millions of Euro and % on total net sales -30bps +20bps @cFX 5.5% 5.2% KEY DRIVERS 43.2 37.2 -13.9% • Q3 Adj.1 EBITDA margin driven by: • Ongoing overhead cost savings helped to counterbalance 9M 2017 9M 2018 negative operating leverage and foreign exchange impact • 9M Ad
Slide 8: Group Net Debt
GROUP NET DEBT in millions of Euro 166.0 171.1 135.9 131.6 144.2 • New financing agreement of Euro 150 M, maturing on 30 June, 2023, increasable up to max Euro 200 M: • Term loan facility of Euro 75 M • New Revolving Credit Facility of Euro 75 M • Current Revolving Credit Facility extended from 30 N
Slide 9: Among the Most Featured Eyewear Worldwide
AMONG THE MOST FEATURED EYEWEAR WORLDWIDE 8
Slide 10: Appendices
Safilo Appendices
Slide 11: Economic Results
Economic results in millions of Euro and % on net sales 9M 2018 % 9M 20172 % % Change Q3 2018 % Q3 20172 % % Change Net sales 713.7 100.0 790.5 100.0 -9.7% 221.5 100.0 243.4 100.0 -9.0% Gross profit 366.5 51.3 407.6 51.6 -10.1% 112.4 50.7 120.4 49.5 -6.6% EBITDA 32.7 4.6 38.8 4.9 -15.6% 11.1 5.0 14.
Slide 12: Notes to the Presentation
Notes to the presentation 1 In 9M 2018, the adjusted economic results exclude non-recurring costs for Euro 4.4 million, mainly related to the CEO succession plan and reorganization costs in North America, and include an income of Euro 29.3 million, as pro-rata portion of the accounting compensation
Slide 13: Net Sales Performance
Net sales performance in millions of Euro 9M 2018 % 9M 20172 % % Change % Change (*) Europe 331.6 46.5 360.5 45.6 -8.0% -6.8% North America 280.3 39.3 325.3 41.2 -13.8% -7.7% Asia Pacific 47.9 6.7 45.6 5.8 5.0% 10.8% Rest of the world 53.9 7.5 59.1 7.5 -8.9% 0.9% Total 713.7 100.0 790.5 100.0 -9.7%
Slide 14: Exchange Rates
Exchange Rates (Appreciation)/ (Appreciation)/ As of Average for Depreciation Depreciation Currency Code September 30, 2018 December 31, 2017 % September 30, 2018 September 30, 2017 % US Dollar USD 1.1576 1.1993 -3.5% 1.1942 1.1140 7.2% Hong-Kong Dollar HKD 9.0579 9.3720 -3.4% 9.3628 8.6771 7.9% Swi
Slide 15: Brands Portfolio
Safilo Group Brands Portfolio 14