Technogym S.p.a · MIL:TGYM
Technogym — H1 2023 Earnings Presentation
23 slides from Technogym's earnings presentation, Aug 2, 2023
Slide 1: Technogym Financial Results H1 2023
Technogym Financial Results H1 2023 Cesena, August 2nd 2023
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: Market sizing & evolution
SPORT SPORT STATUS FITNESS HEALTH HEALTH FITNESS STATUS Market sizing & evolution Strictly private & confidential 3
Slide 4: Technogym overall potential market account for 4.4 trillion USD
TECHNOGYM overall potential market account for 4.4 trillion USD 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$ Hospitality & Club Residential Private users Health Corporate
Slide 5: Fast recovery across the B2B market space
Fast recovery across the B2B market space B2B Segments Hotels showed a growth acceleration driven by investments from big hotel chains Wellness Real Estate / Residences continued to benefit from the growth in residential (especially in the US) and in leisure clubs Corporates are investing in Wellnes
Slide 6: Home remaining on the growth path
Home remaining on the growth path B2C Segment General demand for at- home training solutions normalized after the pandemic but it still very high for high-end solutions (e.g. entire home gym). Gradual international expansion is still the key to penetrate new customers leveraging the Technogym unique
Slide 7: Financial Results H1 2023
Financial Results H1 2023 Strictly private & confidential 7
Slide 8: Double digit growth of all figures
Double digit growth of all figures € millions H12023 - 2023 vsvs H1 - 2023 H1 - 2022 H12022 - 2022 Revenue (€m) 370.0 325.2 +13.8% EBITDA ADJ (€m) 59.4 51.8 +14.6% Margin (%) 16.1% 15.9% EBIT ADJ (€m) 35.1 30.3 +15.7% Margin (%) 9.5% 9.3% Net Profit ADJ (€m) 28.1 25.0 +12.6% Margin (%) 7.6% 7.7% Net
Slide 9: Revenue growth at constant F/X 15,0% YoY
Revenue growth at constant F/X 15,0% YoY € millions Revenue 13,8% +15,0% 370,0 373,9 325,2 2022 H1 2023 H1 2023 H1 constant FX Strictly private & confidential 9
Slide 10: Strong growth in B2B coupled with B2C growth in Q2
Strong growth in B2B coupled with B2C growth in Q2 € millions +13,8% 2023 vs. Y-1 370,0 325,2 290,1 241,4 (78%) BtoB +20,2% (74%) 83,8 79,9 -4,6% (26%) (22%) BtoC 2022 H1 2023 H1 Strictly private & confidential 10
Slide 11: Strong growth continue in MEIA and in the European area
Strong growth continue in MEIA and in the European area € millions +13,8% 370,0 2023 vs. Y-1 325,2 173,3 (46,8%) EUROPE (EXCL. ITA) +14,9% 150,8 (46,4%) 58,3 (15,8%) APAC -3,0% 60,1 (18,5%) 47,1 (12,7%) NORTH AMERICA 45,3 +4,0% (13,9%) 46,6 32,1 (12,6%) MEIA +45,2% (9,9%) 29,4 34,6 ITALY +17,6% (9,0
Slide 12: Strong growth in Field Sales, Distributors and Retail
Strong growth in Field Sales, Distributors and Retail € millions +13,8% 370,0 2023 vs. Y-1 325,2 241,6 (65,3%) FIELD SALES +16,6% 207,3 (63,7%) 77,8 89,9 +15,5% (24,3%) DISTRIBUTORS (23,9%) 33,5 30,4 INSIDE SALES* -9,3% 6,6 (10,3%) 8,1 (8,2%) RETAIL +22,7% (2,0%) (2,2%) 2022 H1 2023 H1 * Includes E-
Slide 13: Statutory Profit & Loss H1 2023
Statutory Profit & Loss H1 2023 Jun 2023 Comments (€m) Jun 2022 Jun 2023 Delta vs Jun 2022 Δ% % on ▪ Revenue grew 13.8% to 370m€ (15.0% at Total revenue 325,2 370,0 % on sales 44,8 13,8% sales constant F/X), mainly driven by volumes Cost of raw, ancillary and consumable materials and goods for resal
Slide 14: Trade Working Capital
Trade Working Capital € millions Trade Working Capital evolution Comments Inventories Inventories Trade Receivables • Increase of 14.2 m€ compared to Dec ’22 driven by Trade Payable 91,5 75,5 stock reserve after the decrease due to year-end 37,9 sales 111,1 100,7 114,8 Trade receivables 114,1 110,8
Slide 15: Capex at 4.2% on revenue: investing in Digital and IT
Capex at 4.2% on revenue: investing in Digital and IT € millions Comments % on Revenue 4.7% 4.2% Tangibles Capex − Tools and molds for new products 15,2 15,7 − Production lines and manufacturing PPE equipment Intangibles − TG Village maintenance and new offices/boutique 6,9 7,3 Intangibles Capex − D
Slide 16: Net Financial Position at 72.2 m€
Net Financial Position at 72.2 m€ € millions -49,3 -49,2 55,0 -21,6 37,8 159,4 3,7 -15,7 -11,3 121,6 0,1 110,1 -48,8 -10,7 72,2 -37,9 NFP Dec. IFRS16 NFP Dec. TG CF from NWC Capex Taxes Dividend Dividends Financial, NFP June IFRS16 NFP June 2022 Lease 2022 Excl. Emirates operat. paid from other leas
Slide 17: Net Financial Position
Net Financial Position € millions Net Financial Position Comments 121,6 Cash, cash equivalent and deposit at 175 m€ vs 72,2 46,4 225 m€ as of Dec.’22 225,2 Bank debt at 7.2 €, 4.6 m€ decrease vs Dec.’22 175,3 154,0 Other financial debts at 96 m€ of which: ▪ Leasing at 58.3 m€ vs 54.1 m€ as of Dec.’2
Slide 18: Free cash flow
Free cash flow € millions Cash Conversion 28% 55,0 H1 -21,6 17,7 2023 -15,7 6,5 -11,3 Cash flows from Nwc Capex Free Cash Flow Tax paid Free Cash flow operat. Activities (1) (before Tax) 50,5 Cash Conversion 3% H1 2022 -33,8 1,5 -15,2 -9,7 -8,2 Cash flows from Nwc Capex Free Cash Flow Tax paid Free
Slide 19: Strictly private & confidential – 19
Strictly private & confidential – 19
Slide 20: Annex
Annex Strictly private & confidential 20
Slide 21: Balance Sheet June 2023
Balance Sheet June 2023 Dec 2022 % on LTM % on LTM €m Dec 2022 Jun 2023 vs Jun 2023 Revenues Revenues Δ% Inventories 100,7 14,0% 114,8 15,0% 14,1% Trade receivables 110,8 15,4% 113,4 14,8% 2,3% Trade payables (173,6) (24,1%) (152,7) (19,9%) (12,0%) Trade Working Capital 37,9 5,3% 75,5 9,9% 99,0% Oth
Slide 22: Cash Flow statement June 2023
Cash Flow statement June 2023 Jun 2022 vs Jun Jun 2022 vs (€m) Jun 2023 Jun 2022 2023 Δ Jun 2023 Δ % ass. Consolidated profit for the year 29,6 23,5 6,1 25,9% Depreciation, amortization and impairment losses 22,5 18,8 Provisions 0,1 3,3 Share of net result from joint ventures (4,4) (0,4) Net financi
Slide 23: Ebitda adjusted reconciliation H1 2023
Ebitda adjusted reconciliation H1 2023 Jun 2023 vs (€m) Jun 2022 Jun 2023 Jun 2022 Δ % Total Revenues 325,2 370,0 13,8% Ebitda 50,9 62,6 23,0% Margin % 15,6% 16,9% Ebit 28,8 36,4 26,5% Margin % 8,8% 9,8% Other operations cost 0,0 0,1 Personnel cost 0,8 0,5 Service, Rentals and leases 0,1 0,7 Cost of