Slide 1: FY2022 Financial Results and Strategy Update
FY2022 Financial Results and Strategy Update On April 20, 2023, at 15:00 local time (CEST), a conference call will take place during which the main results for the financial year ended 31 January 2023 and the Strategy update will be presented. The event can be followed via conference call and audio
Slide 2: Disclaimer
Disclaimer This presentation is being provided to you solely for information only and may not be reproduced or redistributed to any other person. This presentation may contain certain forward-looking statements that reflect the current views of the Company’s management with respect to future events
Slide 3: Agenda
AGENDA FY 2022 Financial Results Strategy Update Outlook Appendix
Slide 4: FY 2022 Financial results
FY 2022 Financial results Excellent financial results with strong increase of sales and EBITDA. Current trading up by more than 10% Net sales • Net Sales €1,513m, +11.3% compared to 2021, mainly thanks to the increase in the like-for-like €1,513m perimeter. All brands reported a positive trend. Traf
Slide 5: Q4 2022 Key income statement items
Q4 2022 Key income statement items Increased sales at stable gross margin and store costs under control resulted in a strong EBITDA growth Q4 2022 Q4 2021 Change Change % €m Adjusted Adjusted Adjusted Adjusted • 4Q 2022 Net sales €425.9m, +11.8% compared to 4Q 2021, is the result of strong sales inc
Slide 6: FY 2022 Key income statement items
FY 2022 Key income statement items Increased sales with a higher gross margin resulted in a robust EBITDA and Net income growth • Sales €1,512.7m, +11.3% compared to 2021, mainly driven by the like-for-like performance, with a special positive trend for woman category, the main segment of the market
Slide 7: FY 2022 Sales and EBITDA performance
FY 2022 Sales and EBITDA performance All brands and channels reported excellent results Net Sales (€m) EBITDA (€m) Dos&On Line Franchising&Marketplace +11.3% +22.4% 1,512.7 180.2 1,358.9 performance Aggregated 147.2 +8.7% 1,205.8 1,108.8 250.1 +22.7% 306.9 10.8% 11.9% FY 2021 FY 2022 FY 2021 FY 2022
Slide 8: January 2023 Net working capital
31 January 2023 Net working capital In a scenario of growing revenues and EBITDA, Net working capital remains substantially stable with an incidence on Net sales of 3.6% Net Working Capital at 31 January 2023 is just €5.1m higher versus last year, as the net result of: • Net Trade Receivables increa
Slide 9: FY 2022 Capital expenditures
FY 2022 Capital expenditures Capex in line with last year: focus on refurbishing of current network and logistics automation FY 2021 26.6 FY 2022 New Openings 18.4 27.0 OVS Refurbishments and in-store projects 30.9 12.5 IT and Digital Trasformation 13.3 13.7 Logistic, HQ and other 18.2 79.8 TOTAL 80
Slide 10: FY 2022 Cash flow statement
FY 2022 Cash flow statement FY 2022 Cash flow is positive by €64.1m and almost in line with pre-covid period €m FY 2022 FY 2021 FY 2019 EBITDA Adjusted 180.2 147.2 156.3 Non recurring items (8.1) (9.2) (11.6) Change in Net Working Capital (6.1) 105.0 7.9 Capex (80.8) (79.8) (43.1) Operating Cash Flo
Slide 11: January 2023 Net debt and Leverage
31 January 2023 Net debt and Leverage Net debt at €162.0m and Leverage ratio at 0.90x Leverage on EBITDA 31 January 2019 – 31 January 2023 5.50 €m 31 January 2023 31 January 2022 Net Debt reported 1,206.5 1,139.0 Net Debt adjusted 2.61 162.0 190.3 1.98 for MtM hedging instruments and IFRS16 1.29 Lev
Slide 12: Agenda
AGENDA FY 2022 Financial Results Strategy Update Outlook Appendix
Slide 13: Strategy update
Strategy update 2022 has been the year of consolidation of the new business model from pure vertical retailer to a platform of various brands to sharpen the appeal to different lifestyles. We attracted more demanding customers, thanks to the higher quality of our product and particularly thanks to t
Slide 14: Strategy update
Strategy update • After more than a decade of continuous decline, the Italian apparel market is expected to recover in the coming years; • OVS intends not only to continue its growth through Product the expansion of its direct and e-commerce proposition Stores network network, but also to improve it
Slide 15: Product proposition: New product ideas
Product proposition: New product ideas Product pipeline is full of new ideas to leverage core competences and market opportunities OVS will continue to expand our product range for more demanding customers with the introduction of new product ideas and brands: • Piombo Kids, already introduced with
Slide 16: Product proposition: Beauty and personal care
Product proposition: Beauty and personal care OVS will expand its role in the Beauty and Personal care, markets currently performing strongly • Beauty and personal care markets is experiencing strong growth which is expected to continue in the upcoming years; • OVS already tuned an original format t
Slide 17: Product proposition: Accessories and Jewelry
Product proposition: Accessories and Jewelry OVS will increase the space dedicated to accessories and jewelry corners to capture impulse buying • OVS is experiencing a strong growth in jewelry and accessories; • Product offering are a mix of third party brands and products developed internally; • Hi
Slide 18: Product proposition: Explore new product offerings
Product proposition: Explore new product offerings OVS will take advantage from the strong market trend with the expansion of our offer of sport apparel • OVS will offer to actual customer base new shopping opportunities by increasing our sport product range; • In-house collections focused on sports
Slide 19: Store network: New openings and refurbishments
Store network: New openings and refurbishments Sales increase will be driven by full format and small format stores opening, as well as refurbishments • After the strong increase of e-commerce channel, the traffic of OVS grop stores has grown strongly and constantly in recent periods, proving that a
Slide 20: Stores network: Underwear format being tested
Stores network: Underwear format being tested Satisfactory initial results from a new shop format dedicated to underwear • Renovated OVS Underwear collections in sustainable cotton, soft touch microfiber or lace; • Advertising campaign signed by the portrait photographer Maki Galimberti; black and w
Slide 21: International expansion
International expansion Leveraging the improved quality of our assortment, with a new organization to properly manage international development • OVS is already present out of Italy with more than 400 stores, mainly OVS Kids; • With the improvement made in our merchandising, especially in women, and
Slide 22: Stores network: OVS as a pure retailer
Stores network: OVS as a pure retailer OVS is exploring its attitude to leverage its core competences as a retailer offering international brands the possibility to penetrate in the Italian market in partnership with us • GAP is the first international brand which we onboarded in this partnership; •
Slide 23: E-commerce
E-commerce E-commerce growth fuelled by improvements in our digital store and marketplace strategy Direct digital store • OVS new website, live from June 2023, renovated in term of graphics and functionality, with an improved user experience and a richer and faster browsing of the catalogue; • “Ship
Slide 24: Digital transformation and operations
Digital transformation and operations Strong investments in digital transformation, with a focus on supply-chain flexibility and digital POS • New automated warehouse system under construction that will reduce goods handling costs and enable a ‘customised’ product distribution to each shop throughou
Slide 25: People
People Ongoing development of OVS human capital • People are OVS's most important asset; • In the present scenario of more demanding customers and higher average ticket, the ability of our salesforce to become "personal shoppers" is of the outmost importance; • A broad range of investments will be m
Slide 26: Agenda
AGENDA FY 2022 Financial Results Strategy Update Outlook Appendix
Slide 27: Outlook
Outlook • Current economic environment is characterized by still high inflation and strains on consumer spending; • Nonetheless, apparel market trend is positive and the Company year-to-date sales are more than 10% higher on a like-for-like basis; • These results, combined with declining raw materia
Slide 28: Q&A FY2022 Financial results and Strategy update
Q&A FY2022 Financial results and Strategy update
Slide 29: Agenda
AGENDA FY 2022 Financial Results Strategy Update Outlook Appendix
Slide 30: Reconciliation between Adjusted and Reported Profit and Loss and Net financial position
Reconciliation between Adjusted and Reported Profit and Loss and Net financial position of which: of which: 31 Jan 2023 of which IFRS of which Stock Option, 31 Jan 2023 31 Jan 2022 of which IFRS of which Stock Option, 31 Jan 2022 Change Change % €m Reported 16 Impact non recurring Derivatives, Adjus
Slide 31: Reconciliation between Adjusted and Reported Profit and Loss and Net financial position
Reconciliation between Adjusted and Reported Profit and Loss and Net financial position The table shows the results adjusted to represent the Group's operating performance net of the effects of the application of the IFRS 16 international accounting standard, as well as non-recurring events unrelate
Slide 32: Reconciliation between Adjusted and Reported Net financial position
Reconciliation between Adjusted and Reported Net financial position Net financial position adjusted composition Net financial position reconciliation 1,206.5 0.0 3.1 110.0 111.1 160.0 162.0 1,035.3 162.0 9.2 Bond Amortizing Revolving Other Cash and Net Net MtM IFRS 16 Net Line Line financial Cash fi
Slide 33: Stores network
Stores network Dos Franchising Total Stores Stores Stores OVS As of 31 st January 2022 527 251 778 Net Openings 1 12 13 As of 31 st January 2023 528 263 791 OVS Kids As of 31 st January 2022 43 455 498 Net Openings 0 22 22 st As of 31 January 2023 43 477 520 Upim As of 31 st January 2022 166 184 350