Slide 1: FY19 Financial Results
FY19 FINANCIAL RESULTS May 26, 2020
Slide 2: Disclaimer
1 Disclaimer This presentation is being provided to you solely for your information and may not be reproduced or redistributed to any other person. This presentation may contain certain forward-looking statements that reflect the Company’s management’s current views with respect to future events and
Slide 3: FY19 Highlights
2 FY19 Highlights The Group continued to consolidate its presence in Italy. Material increase in profitability Total Net Sales amounted to €1,370.1m decreasing by -1.5% compared to last year. The slight decline is mostly attributable to the strategy in place of decreasing purchases (less merchandise
Slide 4: Key Income Statement Items
3 Key Income Statement Items High cash generation over the entire FY19 and high profitability in the second half • Net Sales decreased by -1.5% in FY19. The performance 31.01.2020 31.01.2020 31.01.2019 31.01.2019 Chg. Chg. % reflects the previously announced strategy of: € mln Reported Adjusted Repo
Slide 5: Performance By Brand
4 Aggregate Sales and EBITDA Performance in FY19 Both brands’ profitability improved significantly Net Sales (€mln) EBITDA (€mln) 10.4% 11.4% Aggregate Performance 1,392 1,370 Performance By Brand 10.3% 11.3% 10.5% 11.8% (*) EBITDA margin calculated excluding the sell-in to the former Sempione Fashi
Slide 6: FY19-20 EBITDA Bridge
5 FY19-20 EBITDA Bridge Expected increase in profitability in the second half of 2019 Main factors behind the +€30.7m of EBITDA growth in the 2H19 vs. 2H18 Cost savings started in 2018 Strategy of: (i) fewer purchases Lower purchases made Improved Gross Margin made, and thanks to higher full (ii) th
Slide 7: 31Jan20 Consolidated Trade Working Capital
6 31Jan20 Consolidated Trade Working Capital Lower than last year mainly due to inventory improvement 31Jan20 31Jan19 Change €mln Jan20-Jan19 Trade Receivables 86.0 98.4 (12.4) Inventory 393.1 411.0 (17.9) Trade Payables (330.7) (351.0) 20.3 Trade Working Capital 148.4 158.4 (10.0) • Trade working c
Slide 8: Capex
7 Capex FY19 capex reduced significantly (-€37.6m vs. last year) 2019 Capex breakdown (€ mln) Refurbishment (€2.9m), maintenance (€4.2m) and other commercial projects (€10.8m) (c. 41.4% of total) New openings (c. 19.3% of total) IT and special projects (c. 26.2% of total) Logistics and others (c. 13
Slide 9: Net Debt and Leverage
8 Net Debt and Leverage Sharp decline in Net debt and leverage € mln 31st January 2020 31st January 2019 Net Debt 1,191.4 364.9 Net Debt 309.9 375.8 MtM of Derivatives Excluded EBITDA LTM 156.3 144.2 Leverage on EBITDA (*) Adjusted Net Debt/EBITDA Adjusted LTM 1.98x 2.61x Leverage on EBITDA (**) Adj
Slide 10: Consolidated Cash Flow Statement
9 Consolidated Cash Flow Statement Improved performances on almost all components €mln 31 January '20 31 January '19 EBITDA Adjusted 156.3 144.2 Adjustments1 (11.6) (69.8) Change in Trade Working Capital 10.0 (60.9) Other changes in Working Capital (2.1) 21.6 Capex (43.1) (60.9) Operating Cash Flow
Slide 11: Outlook & COVID-19 update (1 of 2)
10 Outlook & COVID-19 update (1 of 2) • After the Group re-stared progressively to go back to its historical profitability levels in 2019, with substantial cash generation particularly in the second half of the year, 2020 began with the COVID-19 tragedy. The emergency situation was addressed immedia
Slide 12: Outlook & COVID-19 update (2 of 2)
11 Outlook & COVID-19 update (2 of 2) • From the financial standpoint, the company like all the other players in the market has been impacted from zero sales during the lock-down period. The Group’s main characteristic of being exposed to kids (40% of the whole turnover) and to families, less subjec
Slide 13: Appendix
OVS Appendix
Slide 14: Consolidated Profit and Loss and related adjustments (1 of 2)
13 Consolidated Profit and Loss and related adjustments (1 of 2) o/w: o/w: of which non recurring; non recurring; 31.01.2020 o/w: o/w: 31.01.2020 31.01.2019 o/w: 31.01.2019 € mln IFRS 16 non recurring Impairment IAS36 Stock Option; non recurring Stock Option; Reported Derivatives; PPA; Adjusted Repo
Slide 15: Consolidated Profit and Loss and related adjustments (2 of 2)
14 Consolidated Profit and Loss and related adjustments (2 of 2) The following adjustments regarded as one-offs were carried out in 2019, with no impact on cash and/or not representative of the normal course of business operations. The P&L results have been mainly adjusted for two main impacts: (i)t
Slide 16: Consolidated Balance Sheet Statement
15 Consolidated Balance Sheet Statement 31 January '20 31 January '20 - Chg. Vs €mln 31 January '19 exc.IFRS 16 - Reported Exc.IFRS 16 Trade Receivables 86.0 86.0 98.4 (12.4) Inventory 393.1 393.1 411.0 (17.9) Trade Payables (321.1) (330.7) (351.0) 20.3 Trade Working Capital 158.0 148.4 158.4 (10.0)
Slide 17: Network Update as of 31Jan20
16 Network Update as of 31Jan20 OVS SpA - Store Network Up to 31st January 2020 Dos Franchising Total Stores Stores Stores OVS Full Format As of 31st January 2019 553 223 776 Net Openings (3) 0 (3) As of 31st January 2020 550 223 773 OVS KIDS As of 31st January 20119 54 404 458 Net Openings (1) 15 1