Pandora A/s · OMXCOP:PNDORA
Pandora A/s — Q1 2013 Earnings Presentation
18 slides from Pandora A/s's earnings presentation, May 14, 2013
Slide 1: Investor Presentation Q1 2013
INVESTOR PRESENTATION Q1 2013 14 May 2013 1 14 MAY 2013 Q1 2013 INVESTOR PRESENTATION
Slide 2: Agenda
AGENDA AGENDA • Business highlights: • Key developments in Q1 2013 • Market development and sales-out • Performance of newly launched products • Guidance 2013 • Financial review • Recap and Q&A 2 14 MAY 2013 Q1 2013 INVESTOR PRESENTATION
Slide 3: Disclaimer
DISCLAIMER Certain statements in this presentation constitute forward-looking statements. Forward-looking statements are statements (other than statements of historical fact) relating to future events and our anticipated or planned financial and operational performance. The words “targets,” “believe
Slide 4: Important events in Q1 2013
IMPORTANT EVENTS IN Q1 2013 CEO MESSAGE • Q1 2013 revenue was DKK 2,002 million, an increase of more than 40% driven by all geographic regions • Impacted by Valentines Day and success of newly launched products • All major markets had double digit growth in sales-out from Concept stores (L4L) • Impa
Slide 5: Regional revenue development in Q1 2013
REGIONAL REVENUE DEVELOPMENT IN Q1 2013 REVENUE BREAKDOWN BY GEOGRAPHY (DKKm) COMMENTS Q1-2013 Q4-2012 Q3-2012 Q2-2012 Q1-2012 % change % LC change • Revenue growth driven by all geographic regions, with Americas 1,057 939 920 687 766 38.0% 38.6% limited currency impact US 832 738 711 521 609 36.6%
Slide 6: Sales-out positive in all major markets
SALES-OUT POSITIVE IN ALL MAJOR MARKETS LIKE FOR LIKE CONCEPT STORES – SALES-OUT DEVELOPMENT COMMENTS • Newly launched products and 7% 3% focused execution in Concept US 5% stores driving improvements in 7% 15% sales-out -16% • All markets showed double -4% 1% digit growth - positively UK 12% impact
Slide 7: Performance of newly launched products
PERFORMANCE OF NEWLY LAUNCHED PRODUCTS COMMENTS • Valentine’s Day delivered in Q1 2013 sold well • Spring/Mother’s Day received well by retailers • Products launched in 2012 continue to do well • Confirmation that our 2012 focus on product assortment and price architecture is paying off • Rings cont
Slide 8: 2013 Financial guidance
2013 FINANCIAL GUIDANCE 2013 FINANCIAL GUIDANCE • Revenue above DKK 7.2 billion • EBITDA margin above 25% • CAPEX around DKK 300 million (excl. payment to Trollbeads of DKK 190 million) • Effective tax rate of approximately 19% • During 2013 PANDORA expects to open approximately 150 Concept stores 8
Slide 9: Revenue development Q1 2013
REVENUE DEVELOPMENT Q1 2013 REVENUE (DKKm) COMMENTS 2,002 • Total revenue increased by +40.6% 40.6% positively impacted by 1,424 • Volume up approx. 35% delivery of Valentine’s in Q1 2013 • ASP DKK 131 (vs. DKK 126) • Branded distribution generating close to 80% of Q1 Q1 2012 Q1 2013 2013 revenue wi
Slide 10: Development in our distribution network
DEVELOPMENT IN OUR DISTRIBUTION NETWORK NUMBER OF STORES AND OPENINGS COMMENTS Number of stores Net openings • 19 Concept store net % of Q1 2013 Q4 2012 Q1 2012 total Q1 2013 Q4 2012 Q3 2012 Q2 2012 Q1 2012 openings in Q1 2013, in-line Concept with expectations, hereof 11 914 895 698 8.9% 19 72 57 6
Slide 11: Product mix in Q1 2013
PRODUCT MIX IN Q1 2013 PRODUCT MIX (DKKm) COMMENTS Q1-2013 Q1-2012 % change % of total Received Replaced • Revenue from Charms Q1 2012 Q1 2012 increased by 33.9% and Silver Charms 1,457 1,088 33.9% 72.8% 144 124 and gold charms bracelets Silver and gold charms bracelets 256 190 34.7% 12.8% 2 16 incr
Slide 12: Gross margin impacted by raw material prices
GROSS MARGIN IMPACTED BY RAW MATERIAL PRICES GROSS PROFIT (DKKm) AND GROSS MARGIN (%) COMMENTS Q1 2013 Q1 2012 Q4 2012 FY 2012 • Decrease compared to Q1 2012 Revenue 2,002 1,424 2,174 6,652 due to higher commodity prices Cost of sales -688 -404 -771 -2,223 and change in US import duties Gross profit
Slide 13: Negative impact from raw material offset by lower opex ratios
NEGATIVE IMPACT FROM RAW MATERIAL OFFSET BY LOWER OPEX RATIOS OPEX, EBITDA (DKKm) AND MARGIN (%) COMMENTS Q1 2013 Q1 2012 Q4 2012 FY 2012 • Sales and distribution cost increased based Gross margin on entry into new markets and higher % of revenue 65.6% 71.6% 64.5% 66.6% share of O&O – now 15.8% of r
Slide 14: Regional EBITDA margins
REGIONAL EBITDA MARGINS EBITDA MARGIN COMMENTS Q1 2013 Q1 2013 vs. Q4 vs. Q1 • All regional margins impacted by lower Q1 2013 Q4 2012 Q3 2012 Q2 2012 2012 Q1 2012* 2012 gross margin (% pts) (% pts) • The EBITDA margin in Americas Americas 44.1% 36.0% 42.7% 44.0% 8.1% 49.9% -5.8% remained above Group
Slide 15: Improved net profit
IMPROVED NET PROFIT FINANCIAL ITEMS, TAX AND NET PROFIT COMMENTS DKKm Q1 2013 Q1 2012 FY 2012 • Net financial expenses EBIT 599 353 1,475 amounted to DKK 58 million in Financial expenses -59 -7 -128 Q1 2013 • Financial expenses in Q1 2013 Financial income 1 66 132 were significantly impacted by Prof
Slide 16: Strong cash flow generation
STRONG CASH FLOW GENERATION WORKING CAPITAL AND CASH MANAGEMENT COMMENTS DKKm Q1 2013 Q4 2012 Q3 2012 Q2 2012 Q1 2012 • Operating working capital as percentage of Inventory 1,396 1,318 1,922 1,925 1,668 last 12 months revenue improved primarily Trade receivables 724 940 982 543 704 due to higher rev
Slide 17: Q1 2013 in summary
Q1 2013 IN SUMMARY • Group revenue was up more than 40% • Strong performance from newly launched products • Gross margin was 65.6% • EBITDA margin was 32.1% • Free cash flow was DKK 406 million • Guidance unchanged • Share buyback of up to DKK 700m in 2013 on track • Main focus continues to be on th
Slide 18: Questions and answers
QUESTIONS AND ANSWERS 18 14 MAY 2013 Q1 2013 INVESTOR PRESENTATION