Smcp Sa · EURONEXT:SMCP
Smcp Sa — H1 2019 Earnings Presentation
27 slides from Smcp Sa's earnings presentation, Sep 5, 2019
Slide 1: H1 2019 Results
H1 2019 Results September 5%, 2019 Philippe Gautier, CFO & Operations Director ve Ne
Slide 2: Disclaimer
Certain information contained in this document may include projections and forecasts. These projections and forecasts are based on SMCP management's current views and assumptions. Such statements are not guarantees of future performance of the Group. Actual results or performances may differ materia
Slide 3: H1 2019 key highlights
NB: Excluding IFRS 16 cc: at constant currency 1 H1 2019 EBITDA before LTIP impact (-€6.7m) 2 Before tax and excluding IPO related costs 3
Slide 4: Sales growth by region and brand
13% 12% Reported sales growth: +9.5% 34% Sales growth cc.: +8.0% 49% 24% By region By brand 39% LFL sales growth: -0.7% 29% POS: +137 to 1,518 France EMEA APAC Americas Sandro Maje Claudie Pierlot NB: Excluding IFRS 16 cc: at constant currency 4
Slide 5: Adjusted EBITDA and margin
-0.1pt 76.4% 76.3% -1.5pts 36.6% 35.1% o Adj. EBITDA: €86.8 million (+3.5%) +1.4pts -0.5pt o Adj. EBITDA margin: 16.1% -19.6% -19.0% -39.8% -41.2% H1 18 H1 19 H1 18 H1 19 H1 18 H1 19 H1 18 H1 19 Management Store costs Retail margin SG&A (% of sales) gross margin o Stability of the gross margin at a
Slide 6: Net income bridge
H1-19 +€3.2m €m H1-18 excl. IFRS 16 +€0.2m +€0.8m Adjusted EBITDA 83.9 86.8 D&A -17.5 -21.9 -€4.4m -€0.3m Adjusted EBIT 66.4 64.9 Allocation of LTIP -7.0 -6.7 Current operating income 59.4 58.2 -€7.8m Other non-recurring income and expenses -3.8 -4.1 €28.4m €27.8m Operating profit 55.5 54.0 €20.0m F
Slide 7: Free cash flow, capex and working capital
FCF1 excl. IPO-related costs €28.4m €20.9m H1 2018 H1 2019 Capex: continued investment Operational Working Capital €178.8m €33.9m €22.1m €157.9m H1 2018 FY 2018 H1 2019 H1 2018 FY 2018 H1 2019 x% % of sales 4.5% 5.5% 6.3% 16.3% 16.8% 16.8% Free cash flow1 of €20.9m in H1 19 excluding one-off costs r
Slide 8: Leverage
1.7x 1.6x +€23.1m +€21.9m +€1.9m -€20.9m €274.0m €299.9m Dec. 2018 FCF Tax IPO-related costs Financial charges June 2019 Net financial debt before tax excl. Net financial debt Leverage IPO-related costs o Stable leverage with Net financial debt/Adj. EBITDA ratio at 1.7x (vs. 1.6x in Dec. 18) o Early
Slide 9: IFRS 16 impact on P&L and balance sheet
H1 2019 IFRS 16 H1 2019 H1 2019 IFRS 16 H1 2019 P&L Balance sheet excl. IFRS 16 impact incl. IFRS 16 excl. IFRS 16 impact incl. IFRS 16 Adjusted EBITDA 86.8 +54.2 141.0 Intangible right-of-use assets 734.9 +440.8 1,175.6 D&A -21.9 -52.5 -74.4 Adjusted EBIT 64.9 +1.6 66.5 Differed tax 32.9 +1.8 34.7
Slide 10: 2019 outlook
2019 outlook
Slide 11: 2019 outlook: sales growth and adjusted EBITDA margin
SALES GROWTH at cc. Adj.1 EBITDA MARGIN 1 Excluding LTIP impact and application of IFRS 16, effective as of fiscal year 2019 11
Slide 12: Appendix
Appendix
Slide 13: Sales by region and brand
In €m Q1-18 Q1-19 % % at cc. Q2-18 Q2-19 % % at cc. H1-18 H1-19 % % at cc. France 99.8 96.0 -3.9% -3.9% 87.1 87.5 +0.5% +0.5% 187.0 183.5 -1.8% -1.8% EMEA 71.9 79.4 +10.4% +9.9% 73.5 79.4 +8.0% +7.5% 145.4 158.8 +9.2% +8.7% Americas 29.3 31.7 +8.4% +1.0% 31.0 37.0 +19.3% +13.3% 60.3 68.7 +14.0% +7.2
Slide 14: Number of DOS and POS
Var. Var. Var. Number of DOS H1-18 2018 Q1-19 H1-19 H1 19 vs H1 19 vs H1 19 vs Q1 19 FY 18 H1 18 By region France 487 482 476 481 +5 -1 -6 EMEA 341 364 372 385 +13 +21 +44 Americas 135 148 144 146 +2 -2 +11 APAC 145 - 178 - 188 - 195 - +7 +17 +50 By brand Sandro 479 503 505 520 +15 +17 +41 Maje 382
Slide 15: Income statement
H1-19 H1-19 IFRS 16 €m H1-18 excl. IFRS 16 incl. IFRS 16 impacts Sales 493.3 540.3 540.3 - 1 Purchases and changes in inventories -177.1 -197.6 -197.6 - 2 Gross Margin 316.1 342.8 342.8 - Other operating income and expenses -127.8 -139.3 -85.1 +54.2 Personnel costs -104.4 -116.7 -116.7 - 3 Adjusted
Slide 16: Balance sheet: assets
As of Dec. 31, As of June 30, 2019 As of June 30, 2019 €m IFRS 16 impacts 2018 excl. IFRS 16 incl. IFRS 16 Goodwill 630.1 630.1 630.1 - Intangible right-of-use assets 736.1 734.9 1,175.6 +440.8 Property, plant and equipment 76.0 77.7 77.7 - Non-current financial assets 19.5 22.5 22.5 - Other non-cur
Slide 17: Balance sheet: equity and liabilities
As of Dec. 31, As of June 30, 2019 As of June 30, 2019 €m IFRS 16 impacts 2018 excl. IFRS 16 incl. IFRS 16 Share capital 81.9 82.2 82.2 - Share premium 951.5 951.2 951.2 - Reserves and retained earnings 63.5 122.2 119.3 -2.9 Comprehensive income (total) 46.8 13.4 13.4 - Treasury shares -1.6 -1.6 -1.
Slide 18: Net financial debt
As of June 30, 2019 As of Dec. 31, 2018 excl. IFRS 16 Bond & interest-bearing loans and borrowings -176.4 0.0 Non current financial debt & other financial liabilities -0.2 -336.1 Bank overdrafts and short-term financial liability -143.9 -13.5 Cash and cash equivalents 46.5 49.7 Net financial debt -2
Slide 19: Management accounts
€m H1-18 1 H1-19 1 Management Gross margin 2 376.9 412.3 % of sales 76.4% 76.3% Direct costs of points of sales -196.6 -222.6 % of sales -39.8% -41.2% Retail margin 180.4 189.7 % of sales 36.6% 35.1% SG&A -96.5 -102.9 % of sales -19.6% -19.0% 3 Adjusted EBITDA 83.9 86.8 % of sales 17.0% 16.1% 1 Base
Slide 20: Adjusted EBITDA by brand
€m H1-18 H1-19 Adjusted 1 EBITDA 83.9 86.8 Sandro 40.1 41.3 Maje 36.8 38.7 Claudie Pierlot 7.0 6.7 Adjusted 1 EBITDA margin 17.0% 16.1% Sandro 16.5% 15.8% Maje 19.4% 18.2% Claudie Pierlot 11.6% 10.3% 1 Before LTIP impact 20
Slide 21: Cash flow statement
H1-19 €m H1-18 excl. IFRS 16 Adjusted EBITDA1 82.5 86.8 Changes in working capital -32.0 -28.9 Non-recurring expenses -13.6 -5.0 Income tax expense 0.2 -21.9 Net cash flow from Operating activities 37.1 31.1 Capital expenditure -22.1 -33.9 Others - - Net cash flow from Investing activities -22.1 -33
Slide 22: Free cash flow reconciliation
H1-19 €m H1-18 excl. IFRS 16 Adjusted EBITDA1 82.5 86.8 Change in working capital -32.0 -28.9 Non-recurring expenses -13.6 -5.0 Capital expenditure -22.1 -33.9 Income tax 0.2 -21.9 Free cash-flow after tax (a) 15.0 -2.8 Cost of share-based payments (b) -11.2 0.0 Non-operating expenses incurred durin
Slide 23: Free cash flow bridge
-€28.9m -€3.1m -€33.9m €86.8m -€21.9m -€1.9m €20.9m -€2.8m 1 H1 2019 Change in WC Non-recurring Capex H1 2019 FCF Tax IPO-related costs H1 2019 FCF adj. EBITDA expenses before tax excl. after tax excl. IPO related IPO-related costs costs 1 Cash impact of one-offs items related to IPO (-€1.9m) 23
Slide 24: Debt refinancing
December 2018 May 2019 June 2019 Redemption Senior Secured Note €180.3m €0m Redemption Revolving Credit Facility (€250m) €140m €0m Amortizing Term Loan €265.0m €265.0m Revolving Credit Facility (€200m) €110m €40.0m NEU CP €33.9m
Slide 25: Working capital
€m H1-18 FY-18 H1-19 Var. vs H1-18 Inventories and work in progress 201.1 221.4 233.6 32.6 Trade receivables 43.9 51.4 58.4 14.5 Trade payables -87.1 -102.1 -113.2 -26.2 1 Operational working capital 157.9 170.7 178.8 20.9 As a % of LTM sales 16.3% 16.8% 16.8% +0.5pts Other assets & liabilities -44.
Slide 26: Shareholder structure
Ruyi & Co-Investors Free float 53.7% 39.9% (51.3%) 1 (38.5%) 1 Founders & Managers 6.4% (10.3%) 1 As of July 24st, 2019 the share capital of the Company is composed of 74,747,307 shares (including 1,197,239 Free Preferred Shares) Assuming conversion of all the Free Preferred Shares into ordinary sha
Slide 27: Definitions
o “Sales” consists of total sales (retail and wholesale sales) net of rebates, discounts, VAT and other sales taxes, but before the deduction of concession fees paid to department stores and commissions paid to affiliates. o “Sales growth at constant currency” corresponds to total sales in a given p