Slide 1: First Half 2020 Results
FIRST HALF 2020 RESULTS
Slide 2: Foreword
FIRST HALF 2020 RESULTS Foreword Since Oct. 1st 2019, some contributions to customers (previously included within the financial charges section of the Profit & Loss scheme) were treated as commercial premiums, hence netting revenues. However, for comparative purposes, in some cases, the figures here
Slide 3: Definitions & assumptions
FIRST HALF 2020 RESULTS Definitions & assumptions In this presentation: • Adjusted stands for “before non recurring items and inputed costs of the stock option plan” • ForEx or FX stand for Foreign Exchange Rates; • “M” stands for million and “bn” stands for billion. • Normalized stands for excludin
Slide 4: Contents
CONTENTS • Update on COVID-19 • First half 2020 results
Slide 5: Our key priorities to keep the business afloat
FIRST HALF 2020 RESULTS Our key priorities to keep the business afloat Production & Supply Chain: keeping the business fluid People & Financial Community: soundness: safeguarding providing the people's health required resources Distribution: improving customers' journey 5
Slide 6: Main actions taken to overcome the outbreak effects
FIRST HALF 2020 RESULTS Main actions taken to overcome the outbreak effects • New customer experience. consumers • Enhancing e-commerce strategy. • Flexible shifts in production sites. people • Flexible working practices in office. • Cost control of general expenses. profitability • Reducing and opt
Slide 7: Our production activities during the 1st half
FIRST HALF 2020 RESULTS Our production activities during the 1st half January February March April May June Italian platform Romanian platform Chinese platform • Thanks to the well diversified production platform, the Group has been able to overcome the difficulties faced over last months. Full capa
Slide 8: Digital activities to enhance the customer experience
FIRST HALF 2020 RESULTS Digital activities to enhance the customer experience Increasing the geographical coverage of our proprietary e- commerce Enhancing the consumer journey through our websites describing brands and products New digital strategy to simplify GO-to-MARKET leveraging on “where to b
Slide 9: Contents
CONTENTS • Update on COVID-19 • First half 2020 results
Slide 10: Highlights (half year normalized)
FIRST HALF 2020 RESULTS Highlights (half year normalized) Strong Strongtrend trendininsales salesin inH1, H1,thanks thanksto to revenues' growth % +6.9 % robust performance of Coffee and a robust performance of coffee and Food food over over the the last last Q quarter Marginexpansion Margin expansi
Slide 11: The topline
FIRST HALF 2020 RESULTS The topline 1st Ha lf (Jan. 1st - June 30) 2nd qua rte r (April 1st - June 30) 1st Half 2020 2020 (Eur million unless otherwise 2020 2019 2019 "norma lize d" "norma lize d" specified Revenues 896.6 903.7 845.5 507.3 469.1 change % 6.0% 6.9% 8.2% organic ch. % 6.7% 8.5% In t
Slide 12: Revenues by region
FIRST HALF 2020 RESULTS Revenues by region Half Year organic Q2-2020 organic EUR million 2020 chg. % chg. % chg. % normalized chg. % normalized South West Europe 374.6 12.1% 11.8% 201.0 12.0% 11.6% North East Europe 237.5 5.1% 5.5% 126.0 6.3% 8.4% EUROPE 612.1 9.3% 9.2% 327.0 9.7% 10.3% MEIA (Middle
Slide 13: Revenues by market (normalized)
FIRST HALF 2020 RESULTS Revenues by market (normalized ) Russia, Ukr. & CIS 7.1% MAIN ORGANIC UPS & DOWNS others SW_EU others NE-EU 11.2% 14.7% Germany France, Benelux UK UP DOUBLE DIGIT 4.5% Australia, New Zeland, China & HK MEIA 5.0% France 7.4% H1 2020 UP SINGLE DIGIT Russia, Ukraine & CIS Poland
Slide 14: Revenues by product
FIRST HALF 2020 RESULTS Revenues by product Cooki ng & Food Prep. MAIN ORGANIC UPS & DOWNS 27.2% full-auto machines manual pump machines UP DOUBLE DIGIT kitchen machines air conditioning H1 2020 Nespresso machines UP SINGLE DIGIT Dolce Gusto machines Coffee Ma kers 47.9% hand blenders Comfort & Home
Slide 15: Margins
FIRST HALF 2020 RESULTS Margins 1st Half (Jan. 1st - June 30) 2nd quarter (April 1st - June 30) (Eur million unless otherwise 1st Half 2020 2020 2020 2019 2019 specified "normalized" "normalized" net ind. margin 436.3 443.4 399.5 242.0 217.7 % of revenues 48.7% 49.1% 47.2% 47.7% 46.4% adjusted Ebitd
Slide 16: First half adjusted Ebitda bridge (normalized)
FIRST HALF 2020 RESULTS First half adjusted Ebitda bridge (normalized ) 2.4 8.4 12.1 27.2 among others, increases in A&P, non industrial labour costs and duties on the US market. 118.8 97.8 adj. ebitda H1 19 volumes price/mix FX other costs adj. ebitda H1 20 normalized 16
Slide 17: Balance sheet (reported)
FIRST HALF 2020 RESULTS Balance sheet (reported) Ju n e 3 0 , Ju n e 3 0 , Dec. 3 1 , EUR mi l l i o n ch an g e ch an g e 2020 2019 2019 Net working Capital 228. 4 344. 3 -116 318. 8 -90.4 Net Equity 1209. 7 1060. 8 148.8 1190. 5 19.2 Net Financial Position 387. 9 105. 5 282.5 277. 8 110.1 NWC / Re
Slide 18: The net cash flow in H1 2020 (reported)
FIRST HALF 2020 RESULTS The net cash flow in H1 2020 (reported ) 6.8 49.7 40.9 108.2 110.1 Maintenance capex plus the new factory in Romania and HQ offices and technical center in Treviso. 387.9 277.8 NFP at Dec. 31, Operating CF CF fromNWC CF from Equity Capex Free Cash Flow NFP at June 30, 2019 (o
Slide 19: Free Cash Flow before dividends
FIRST HALF 2020 RESULTS Free Cash Flow before dividends 12 ex-IFRS16 months rolling 19
Slide 20: 2020 outlook
FIRST HALF 2020 RESULTS 2020 outlook Massimo Garavaglia, Group C.E.O.: “We are facing a difficult and complex period that requires us to make a significant effort both on a human and a professional level. In particular, in the first six months, the extraordinary commitment shown by the people of De'
Slide 21: Disclaimer
APPENDIX Disclaimer This presentation might contain certain forward-looking statements that reflect the company’s current views with respect to future events and financial and operational performance of the company and its subsidiaries. Forward looking statements are based on De' Longhi’s current ex
Slide 22: Thank you. Contacts
THANK YOU. Contacts: Investor Relations: Fabrizio Micheli / Samuele Chiodetto T: +39 0422 4131 investor.relations@delonghigroup.com