Slide 1: 1H18 Financial Results
1H18 FINANCIAL RESULTS September 19, 2018
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 person. This presentation might contain certain forward-looking statements that reflect the Company’s management’s current views with respect to future events
Slide 3: 1H18 Highlights
2 1H18 Highlights The domestic market decreased by -3.4% so far in 2018, mainly due to unfavorable weather conditions. Market share further increased to 7.98% (+14bps vs. Jan 2018 and +43bps vs. Jul 2017) Sales stood at €666.4m excluding the sell-in to Sempione Fashion Group, slightly increasing com
Slide 4: Key Income Statement Items
3 Key Income Statement Items Solid Gross Margin and cost control to sustain profitability 31.07.2018 31.07.2018 31.07.2017 31.07.2017 Chg. Chg. % € mln IFRS Adjusted IFRS Adjusted (Adjusted) (Adjusted) Net Sales 720.1 720.1 690.4 690.4 29.7 4.3% Net Sales* 666.4 666.4 660.1 660.1 6.2 0.9% Gross Marg
Slide 5: Performance By Brand and Aggregate Performance
4 Sales and EBITDA Performance in 1H18 Net Sales (€mln) EBITDA (€mln) 690 (or 660 720 (or 666 without SF) without SF) Aggregate Performance 12.4% 12.2% Performance By Brand Margin % (*) 12.7% 12.1% 10.9% 12.6% (*) EBITDA margin calculated excluding the sell-in to Sempione Fashion AG.
Slide 6: 31Jul18 Consolidated Trade Working Capital
5 31Jul18 Consolidated Trade Working Capital Change Change €mln 31July18 31July17 Jul18-Jan18 Jul17-Jan17 Trade Receivables 126.9 99.7 13.9 24.4 Inventory 423.3 373.8 35.4 33.2 Trade Payables (392.4) (366.2) 11.0 1.5 Trade Working Capital 157.8 107.3 60.3 59.1 1H18 trade working capital experienced
Slide 7: Capex
6 Capex 1H2018 Capex breakdown (€ mln) Refurbishments (c. 58.8%): investments related to the existing network significantly increased vs. last year It & Digital Transformation (c. 20.4% of total): increased investments also on multichannel activities and IT New Openings (c. 19.2%) Total €32.3m Capex
Slide 8: Net Debt and Leverage
7 Net Debt and Leverage € mln 31st July 2018 31st July 2017 Net Debt excluding MtM 427.6 363.3 EBITDA LTM Adjusted 195.5 193.7 Leverage on EBITDA (*) 2,2x 1,9x Average Leverage on EBITDA (**) 1,95x 1,78x Notes: (*) calculated on Net Debt at 31st July excluding the MtM (**) calculated on the average
Slide 9: Consolidated Cash Flow Statement
8 Consolidated Cash Flow Statement 31 July '18 31 July '17 EBITDA Adjusted 81.1 82.1 Adjustments1 (58.5) (15.6) Change in Net Operating Working Capital (60.3) (59.1) Other changes in Working Capital (11.3) (4.9) Capex (32.3) (31.1) Operating Cash Flow (81.4) (28.5) Financial charges (7.6) (6.9) Divi
Slide 10: Outlook
9 Outlook • Pressure on markdowns boosted sales in August, which entirely compensated the sales missed in the stores under refurbishment, with a good impact on Spring/Summer sell-through and consequent impact on inventory. • The network continued to expand in the first part of the second semester (+
Slide 11: Appendix
OVS Appendix
Slide 12: Consolidated Profit and Loss and related adjustments
11 Consolidated Profit and Loss and related adjustments 31.07.2018 31.07.2018 31.07.2017 31.07.2017 Chg. Chg. % € mln Adjustments Adjustments IFRS Adjusted IFRS Adjusted (Adjusted) (Adjusted) Net Sales 720.1 720.1 690.4 690.4 29.7 4.3% Net Sales* 666.4 666.4 660.1 660.1 6.2 0.9% Gross Margin 392.8 (
Slide 13: Consolidated Balance Sheet Statement
12 Consolidated Balance Sheet Statement €mln 31 July '18 31 January '18 Chg. Trade Receivables 126.9 113.0 13.9 Inventory 423.3 387.9 35.4 Trade Payables (392.4) (403.4) 11.0 Net Operating Working Capital 157.8 97.5 60.3 Other assets/(liabilities) (59.6) (51.2) (8.4) Net Working Capital 98.2 46.3 51