Technogym S.p.a · MIL:TGYM
Technogym — FY2016 Earnings Presentation
18 slides from Technogym's earnings presentation, March 2017
Slide 1: Financial Results Full Year 2016
March 2017 Financial Results Full Year 2016
Slide 2: Disclaimer
Disclaimer This presentation is being furnished to you solely for your information and may not be reproduced or redistributed to any other person. This presentation might contain certain forward-looking statements that reflect the Company’s management’s current views with respect to future events an
Slide 3: CEO Remarks
CEO Remarks Financial Results FY2016
Slide 4: Revenues: Overview of key performance indicator
Revenues _Overview of key performance indicator Revenues (€m) Key comments Positive volume effect primarily coming 8,5% from 564,3 10,3% • Volume effect 555,3 511,8 • New product launches (Group Cycle, MyRun, Skillmill) • Incremental sales of services and accessories Positive price effect primarily
Slide 5: Revenues: breakdown by geography
Revenues _breakdown by geography Delta 2016A €m vs 2015A +8,5% 555,3 22,7 511,8 (4%) LATAM 3.8% 21,9 58,4 (11%) North America 16.0% (4%) 50,3 (10%) 51,0 MEIA 2.7% (9%) 49,7 (10%) 80,9 (15%) APAC 17,9% 68,7 (13%) 54,2 45,0 (10%) Italy 20.4% (9%) 276,1 288,1 (52%) Europe (excl. Ita) 4,3% (54%) 2015A 2
Slide 6: Revenues: breakdown by channel
Revenues _breakdown by channel Delta 2016A €m vs 2015A +8,5% 555,3 5,7 511,8 40,9 (1%) Retail 1,7% 5,6 (7%) 38,5 (1%) Inside Sales 6,4% (8%) 122,3 (22%) Wholesale 8,4% 112,8 (22%) 386,4 354,9 (70%) Field Sales 8,9% (69%) 2015A 2016A 5
Slide 7: Cost base view
Cost base view Cost base evolution (% on rev) Key comments Revenues €511,8m €555,3m D&A / Impairments • Increase in absolute terms mainly due to % on rev 88,8% 87,7% TG Village acquisition Other 1.0% 1.5% 4.4% 4.6% D&A / Impairments Personnel cost Personnel 22.9% 21.1% • 2 p.p. decrease thanks to pr
Slide 8: EBITDA
EBITDA EBITDA evolution (€m) Key comments EBITDA growing at ∼15% vs Y-1 with 15.3% 105.5 positive impact on profitability (18,0% vs 99.9 16,9% of Y-1) 21.7% 86.7 EBITDA margin increase thanks to • operational leverage from the increase in sales volume • optimization of production processes with posi
Slide 9: Trade Working Capital
Trade Working Capital Working Capital (€m) Key comments Reduction in Trade Working Capital at 7.3% on €m Dec 2015 Dec 2016 revenues from 9.9% of Y-1 Inventories 60.4 72.2 Trade receivables 84.1 94.1 Inventories Trade payable (93.9) (125.6) • Inventories growing at 11.8m vs Y-1 Trade Working Capital
Slide 10: CAPEX
CAPEX Capex analysis (€m) Key comments % of total Low capital intensive business model excluding 4.9% 19.7% revenue one-off property and TG Village investments % of total Excluding the one-off investment of TG Village Revenue 3.1% 4.0% the capex are mainly referred to exc. one off 109.6 Tangibles •
Slide 11: Net Financial Debt
Net Financial Debt Net Financial Debt (€m) Key comments €m Dec 2015 Dec 2016 Cash & cash equivalents increase of ∼€-15m Cash & cash equivalents (68.0) (53.1) despite of cash out for • €42m cash out for TGB Srl acquisition • €46m cash out for the reimbursement of the Current financial receivables (0.
Slide 12: Free cash flow
Free cash flow Cash Conversion % 88% 94 88 16 (22) 2016A 2 4 (€m) Cash flows from operating Change in NWC Capex Free Cash Flow activities1 Cash Conversion % 93% 80 81 17 (15) 2015A Cash flows from operating Change in NWC 2 Capex 3 Free Cash Flow (€m) activities 1 Note: Cash conversion defined as Fre
Slide 13: Executive Summary
Executive Summary FY 2016 Revenues: €555,3m, +8,5% vs 2015 (+10,3% at constant FX) thanks to positive volume effect coming primarily coming from • Volume effect • Positive price effect primarily • Incremental sales of services and accessories Excluding FX impact, revenue growth would have been 10,3%
Slide 14: Annexes
Annexes 13
Slide 15: Profit and Loss statement
Profit and Loss statement Dec 2015 vs €m Dec 2015 Dec 2016 Dec 2016 ∆ % Total revenue 511.8 555.3 8.5% Cost or raw. ancillary and consumable materials and goods for resale (182.6) (196.4) 7.6% Service. Rentals and leases (127.2) (139.8) 9.9% of which (cost) not recurrent (2.6) (2.3) Personnel cost (
Slide 16: EBITDA Reconciliation
EBITDA Reconciliation Dec 2015 vs €m Dec 2015 Dec 2016 Dec 2016 ∆ % Net operating income 58.4 68.4 17.0% LTMIP cost (previous years) 2.5 Consultancy cost 1.5 Restructuring cost 0.9 IPO cost 0.7 3.0 Brasil tax (previous year) 2.2 China litigations 0.6 Total non recurring items 5.6 5.8 3.4% Adjusted n
Slide 17: Cash Flow statement
Cash Flow statement Dec 2015 Dec 2015 €m Dec 2015 Dec 2016 vs Dec 2016 vs Dec 2016 ∆ ass. ∆% Profit for the year 28.4 43.2 14.9 52% Depreciation, amortization and impairment losses 20.0 23.2 Provisions 2.6 2.5 Share of net result from joint ventures (1.0) (0.1) Net financial expenses 2.6 2.5 Income/
Slide 18: Balance Sheet
Balance Sheet Dec 2015 % on Dec 2016 % on €m Revenues Revenues Inventories 60.4 11.8% 72.2 13.0% Trade receivables 84.1 16.4% 94.1 16.9% Trade payables (93.9) -18.4% (125.6) -22.6% Trade Working Capital 50.6 9.9% 40.7 7.3% Other current assets/(liabilities) (18.2) -3.6% (47.6) -8.6% Current tax liab