D'ieteren Group Sa/nv · EURONEXT:DIE
D'ieteren Group Sa/nv — H1 2022 Earnings Presentation
46 slides from D'ieteren Group Sa/nv's earnings presentation, Sep 5, 2022
Slide 1: H1-2022 results
D’Ieteren Group H1-2022 results 5 September 2022
Slide 2: Main messages
Main messages • We delivered a strong performance over the first half of 2022, with a 33.5% YoY increase in our adj. PBT Group’s share, thanks to the excellent performance at D’Ieteren Auto, the contribution of very solid results from TVH over the full period and continued good results at Belron and
Slide 3: Key highlights on H1-22 results
Key highlights on H1-22 results Strong results… • Profit increased by 33.5% - as measured by adjusted consolidated result before tax, group’s share - reaching €363.1m in H1-22, reflecting notably the impact of positive top-line developments and good fall-through to profits. Excluding TVH, profit is
Slide 4: 2022 outlook upgrade
2022 outlook upgrade We increase our guidance for the full-year, mainly driven by Auto and TVH Group 2022 outlook1 Belron Automotive Moleskine TVH Assuming no major deterioration in general geopolitical and economic conditions, adjusted • Mid-teens organic sales • Adj. operating result is now • Sale
Slide 5: H1-2022 combined sales: +29.6% (+10.8% on a comparable basis)
Group H1-2022 combined1 sales: +29.6% (+10.8% on a comparable basis) €m +29.6% 5,458.8 61.2 Moleskine: +30.2% 4,212.5 47.0 2,758.1 Belron: +18.8% 2,321.4 1,848.7 D’Ieteren Automotive: +0.2% 1,844.1 790.8 TVH: +23.6%2 H1-2021 H1-2022 Moleskine Belron D’Ieteren Automotive TVH 1 Including 100% of Belro
Slide 6: H1-2022 combined adjusted operating result: +37.6%
Group H1-2022 combined1 adjusted operating result: +37.6% €m +37.6% 728.7 3.7 Moleskine: +85.0% 529.5 2.0 495.9 Belron: +8.0% 459.4 89.0 D’Ieteren Automotive: +19.5% 143.2 TVH: +8.8%2 74.5 -6.4 -3.1 H1-2021 H1-2022 Moleskine Belron D’Ieteren Automotive TVH Corp. & unallocated 1 Including 100% of Bel
Slide 7: H1-2022 adjusted PBT g.s.: +33.5% (+13.1% excluding TVH)
Group H1-2022 adjusted PBT g.s.: +33.5% (+13.1% excluding TVH) €m 13.1% 33.5% 363.1 307.8 55.3 55.3 272.1 15.2 2.9 3.2 3.1 3.1 14.4 93.1 93.1 77.9 198.2 212.6 212.6 -3.9 -1.0 -1.0 -0.1 H1-2021 Belron D’Ieteren Moleskine Corp. & H1-2022 TVH H1-2022 Automotive unallocated excl. TVH Belron D’Ieteren Au
Slide 8: H1-2022 free cash-flow generation
Group H1-2022 free cash-flow1 generation €m • D’Ieteren Group’s FCF generation Group’s share remained stable thanks to strong operational results offset by working capital investments at TVH -0.2% 208.9 208.4 3.9 2.9 99.6 133.4 122.9 79.5 -7.9 -17.3 0.3 H1-2021 H1-2022 Moleskine Belron D’Ieteren Aut
Slide 9: D'Ieteren Group's debt structure
D’Ieteren Group’s debt structure €m June 30th 2022 D'Ieteren Corp & 100% Belron Moleskine 100% TVH Automotive Unallocated Loans & Borrowings 155.5 4,229.0 39.2 982.2 5.5 Inter-segment - - 269.5 40.6 -310.1 Gross debt 155.5 4,229.0 308.7 1,022.8 -304.6 Cash & cash equivalents -164.5 -428.7 -20.1 -140
Slide 10: ESG developments
ESG developments • D’Ieteren Group committed to the Science Based Targets initiative in April 2022 with the goal of having 100% of its portfolio covered by a validated SBT by the end of 2025. All businesses are currently preparing to submit their own target. • In May 2022, the Group resumed its shar
Slide 11: Belron: Making a difference with real care
Belron Making a difference with real care
Slide 12: H1-22 highlights
Belron H1-22 highlights • +18.8% sales growth versus H1-21 (+13.3% organic at constant FX) underpinned by 7.1% higher volumes in VGRR (prime jobs) driven by a continued recovery since the pandemic and further market share gains, value growth from positive model and product mix as well as growth in A
Slide 13: Sales evolution and growth drivers
Belron Sales evolution and growth drivers • Sales improved by 18.8% YoY to €2,758.1m, or 20.4% from continuing operations, comprised of an organic growth of 13.3%, a contribution from acquisitions of 1.1% and an positive currency effect of 6.0%. Sales growth Organic Acquisitions Forex Total • Positi
Slide 14: Summary of H1-22 results – Continued growth in adjusted operating profit
Belron Summary of H1-22 results – Continued growth in adjusted operating profit €m H1-21 H1-22 % change • Adjusted operating result continued to grow versus last year 1 VGRR prime jobs (in million) 6.1 6.6 7.1% (+7.9%). External sales 2,321.4 2,758.1 18.8% • Adjusted operating margin of 18.0% in H1-
Slide 15: Adjusting items
Belron Adjusting items €m H1-22 • Amortisation of brands and customer contracts relates mainly to recent At the operating result level acquisitions (mainly TruRoad acquired in August 2019 in the US). Re-measurements of financial instruments 2.7 • Other adjusting items of -€38.0m mainly correspond to
Slide 16: Free cash flow and net debt
Belron Free cash flow1 and net debt • Free cash flow1 (after capital lease repayments) declined from €m H1-21 H1-22 €266.7m in H1-21 to €199.2m in H1-22 reflecting the following Adjusted EBITDA 577.3 617.7 developments: Change in WCR -37.3 -59.0 o €40.4m higher adjusted EBITDA Net capex -11.4 -34.7
Slide 17: Latest developments and FY-2022 outlook
Belron Latest developments FY-2022 outlook • In March 2022, Moody’s has upgraded Belron’s credit rating to Ba2 • Mid-teens organic sales growth is expected due to growing (outlook stable) from Ba3. This upgrade reflects Moody's expectation volumes, a positive price / mix and the increase of ADAS of
Slide 18: ESG developments
Belron ESG developments Belron continues to make progress across all elements of its Responsible Business Roadmap which was launched in 2021. • Under the Sustainable Products & Services pillar the company has improved glass waste recycling from 72% in 2021 to above 80% in the 6 months to June 2022 a
Slide 19: D'Ieteren Automotive: Building seamless and sustainable mobility for everyone
D’Ieteren Automotive Building seamless and sustainable mobility for everyone
Slide 20: H1-22 highlights
D’Ieteren Automotive H1-22 highlights • New car registrations market1 decreased by 13.9% to 192,210 units due to delivery delays related to components shortage. • D’Ieteren Automotive’s share1 of the new car market declined by 129bps to 22.2%. • Number of new vehicles delivered by D’Ieteren Automoti
Slide 21: Belgian new car market impacted by supply chain issues
D’Ieteren Automotive Belgian new car market1 impacted by supply chain issues • The Belgian new car market dropped by 13.9% (15.9% before deregistrations within 30 days) due to the shortage of components that led to delivery delays. • D’Ieteren Automotive’s net market share declined by 129bps to 22.2
Slide 22: Belgian market: success of the new energy and SUV segments
D’Ieteren Automotive Belgian market: success of the new energy and SUV segments • Belgian new car gross registrations1: o The number of new vehicles sold powered by new energies (fully electric, hybrid, CNG, LPG) reached a 32.4% market share, largely at the expense of diesel engines o 61.8% of new r
Slide 23: Market shares reflect the prioritization of higher-end models
D’Ieteren Automotive Market shares reflect the prioritization of higher-end models Breakdown of D’Ieteren Brands Automotive’s net market share per • VW (8.52%, -87bps) lost share primarily due to the Golf, Tiguan and Passat, while brand (%) there were some gains in Multivan, ID.4 and Arteon. • Audi’
Slide 24: Strong financial performance in a difficult environment
D’Ieteren Automotive Strong financial performance in a difficult environment €m H1-21 H1-22 % change • The number of new vehicles delivered decreased by -17.2% to New vehicles delivered (in units) 56,643 46,902 -17.2% 46,902 (Passenger Vehicles: -16.7%; Light Commercial Sales 1,844.1 1,848.7 0.2% Ve
Slide 25: Free cash flow and net debt
D’Ieteren Automotive Free cash flow1 and net debt • Trading cash flow increased by €40.3m, reflecting mainly: €m H1-21 H1-22 o The increase in EBITDA (+€15.2m) Adjusted EBITDA 87.3 102.5 Change in WCR 47.3 71.8 o A significant (and higher than in H1-21) cash inflow Net capex -10.5 -14.6 from working
Slide 26: Latest developments and FY-2022 outlook
D’Ieteren Automotive Latest developments FY-2022 outlook • Visibility on supply chain issues remains low. • Strong order backlog to be translated into deliveries over time once supply chain issues are solved, with volume and market share • The order book remains significant (nearly doubling versus i
Slide 27: ESG developments
D’Ieteren Automotive ESG developments D’Ieteren Automotive pursued its mission of building seamless and sustainable mobility for everyone, with new developments : • A 60% YoY increase in the volume of charge points installed by EDI, with 3,000 charge points installed • The expansion of the shared mo
Slide 28: TVH: We keep you going and growing
TVH We keep you going and growing
Slide 29: H1-22 highlights
TVH H1-22 highlights • TVH is equity-accounted for in D’Ieteren Group’s accounts as of €m H1-22 October 1st, 2021 and has a full YoY impact in H1-22. External sales 790.8 • Total sales of €790.8m are 23.6% above last year (YoY based on Adjusted operating result 143.2 BEGAAP figures) driven by a stro
Slide 30: Free cash flow and net debt
TVH Free cash flow1 and net debt • TVH consumed €43.2m in free cash flow in the period. €m H1-22 • This development is mostly attributable to capital expenditures Adjusted EBITDA 161.5 and significant working capital investments: increase in inventory Change in WCR -128.0 and receivables, mainly ref
Slide 31: Latest developments and FY-2022 outlook
TVH Latest developments FY-2022 outlook • In H1-22, TVH acquired Grupo Empilhapeças, a local • Organic top-line growth is expected to be above around Portuguese distributor focussed on MPA. Integration 20%. within the TVH group has started over the summer. • Pipeline of further “bolt-on” acquisition
Slide 32: ESG developments
TVH ESG developments TVH has initiated a comprehensive sustainability programme, building on its existing social, environmental and governance processes. The new programme, which is based on the findings of a materiality assessment involving internal and external stakeholders, has been presented to
Slide 33: Moleskine: Unleash the human genius through hands on paper
Moleskine Unleash the human genius through hands on paper
Slide 34: H1-22 highlights
Moleskine H1-22 highlights • Sales growth continued to recover from the Covid-19 pandemic and increased by 30.2% YoY to €61.2m. The core paper category is leading the growth. • There remained disruptions in H1-22, mainly in APAC with China lockdown at the beginning of the year and Japan prolonging t
Slide 35: Top-line evolution
Moleskine Top-line evolution • Wholesale (65% of total): strong sales improvement driven by top accounts, with a few top 47.0 61.2 100% customers being in line or above 2019 levels. • Strategic Partnerships (21% of total): +68.3% growth, led by top customers in US and EMEA • Retail (8% of total): +7
Slide 36: Higher adjusted operating result
Moleskine Higher adjusted operating result €m H1-21 H1-22 % change • Adjusted EBIT margin of 6.0% versus 4.3% in H1-21 Sales 47.0 61.2 30.2% Adjusted operating result 2.0 3.7 85.0% • Adjusted operating result up by 85.0% YoY to €3.7m, thanks to the positive Adjusted operating margin (in %) 4.3% 6.0%
Slide 37: Free cash flow and net debt
Moleskine Free cash flow1 and net debt • FCF marginally declined by €1.0m mainly as a result of a €m H1-21 H1-22 working capital investments. Adjusted EBITDA 7.9 8.8 Change in WCR 0.6 -1.0 • CapEx decreased to €1.8m (2.9% of sales). Net capex -2.2 -1.8 • Net debt declined versus H1-21 to €288.6m and
Slide 38: Latest developments and FY-2022 outlook
Moleskine Latest developments FY-2022 outlook • Pursued successful roll-out of the strategic policy of • Geopolitical tensions are not expected to have a “fewer, bigger, better”, involving rationalization of the significant impact on Moleskine. product offering, simplification of the structures & •
Slide 39: ESG Developments
Moleskine ESG Developments • Moleskine pursued its strategy aimed to develop and implement a strong and tailored circular economy approach by 2025. Pilot recycling projects were launched in EU, US and APAC enabling the company to recycle 37t of paper products in H1-22 (vs 45t in FY 2021). • In terms
Slide 40: Corporate & Unallocated
Corporate & Unallocated
Slide 41: Corporate & Unallocated
Corporate & Unallocated €m H1-21 H1-22 % change Adjusted operating result -6.4 -3.1 - Adjusted net finance (costs)/income 6.3 6.2 -1.6% Adjusted PBT -0.1 3.1 - Adjusting items in PBT - -1.4 - Reported net profit -0.5 0.4 - Adjusted PBT g.s. -0.1 3.1 - • “Corporate & Unallocated” mainly includes the
Slide 42: PHE: Support affordable and sustainable mobility
PHE Support affordable and sustainable mobility
Slide 43: PHE (not yet consolidated)
PHE (not yet consolidated) • D’Ieteren Group closed the acquisition of PHE in August 2022 and will consolidate the company as from August 2022 (5 months in 2022). • In H1-22, PHE recorded sales of €1,130.1m, up by 13.8% YoY (+8.3% organic) driven by increased volumes and prices and excellent product
Slide 44: H1-22 closing remarks
H1-22 closing remarks • D’Ieteren Group continued on its growth path with a 33.5% growth in adjusted PBT, Group’s share in H1-22. • These results show once again the strength of our portfolio companies, which hold customer-centric leadership positions in their respective markets. In the current infl
Slide 45: Forward-looking statement
Forward-looking statement “To the extent that any statements made in this presentation contain information that is not historical, these statements are essentially forward-looking. The achievement of forward-looking statements contained in this presentation is subject to risks and uncertainties beca
Slide 46: Contact information
Contact information Investors Press Stéphanie Voisin Anne-Catherine Zoller stephanie.voisin@dieterengroup.com anne-catherine.zoller@dieterengroup.com T. +32 2 536 54 39 T. +32 2 536 55 65 M. +32 478 48 58 71 www.dieterengroup.com D’Ieteren Group H1-2022 results 46