Technogym S.p.a · MIL:TGYM
Technogym — H1 2018 Earnings Presentation
16 slides from Technogym's earnings presentation, 2018
Slide 1: Financial Results H1 2018
Financial Results H1 2018
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION AND ANY OTHER INFORMATION DISCUSSED AT THE PRESENTATION (THE “PRESENTATION”) IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION. THIS PRESENTATION, WHICH HAS BEEN PREPARED BY TECHNOGYM, S.P.A. (THE “COMPANY”), IS PRELIMINARY IN NATURE AND I
Slide 3: Revenues showing high single-digit growth
Revenues showing high single-digit growth Revenues (€m) Key comments 3,6% 285,2 Positive volume effect primarily 272,9 coming from 263,4 8,3% • Overseas markets (NA, APAC) and Italy • Commercial vertical segments (H&R and HCP) • Field sales channel • New product launches (primarily Skill line and Bi
Slide 4: NA & ITALY driving with double-digit growth
NA & ITALY driving with double-digit growth Revenue breakdown by geography - €m, percentage incidence & change 3,6% 272,9 H1 2018 vs. Y-1 263,4 33,6 North 29,3 (12%) America 15% (11%) 25,6 23,3 (9%) Italy 10% (9%) 41,8 44,3 APAC 6% (16%) (16%) 132,9 138,3 Europe (50%) (51%) (excl. Ita) 4% 22,5 21,2
Slide 5: High single-digit growth on field sales
High single-digit growth on field sales Revenue breakdown by channel - €m, percentage incidence & change 3,6% 272,9 H1 2018 vs. Y-1 263,4 181,3 198,2 Field Sales 9% (69%) (73%) 2,7 (1%) 2,9 9% (1%) Retail 59,2 54,9 (22%) (20%) Wholesale -7% 20,2 (8%) 16,9 Inside Sales -16% (6%) H1 2017 H1 2018 Stric
Slide 6: Cost base impact substantially in line with Y-1 performance
Cost base impact substantially in line with Y-1 performance Recurring cost base evolution (% REV) Key comments Total costs €233m €239m D&A / Impairments • Declining on a yearly basis in value and in % of sales % REV 88,6% 87,7% Personnel cost Impairments 1,2% 0,7% 4,3% 1,0% 0,4% • Moderate increase
Slide 7: EBITDA adjusted improving vs Y-1
EBITDA adjusted improving vs Y-1 EBITDA Adj evolution (€m) Key comments 51,7 EBITDA adjusted margin increase: 4,7% 44,9 • Positive effect coming from product 42,9 mix and further efficiencies in cost of +15,3% FX production steered an expansion in margin despite the lower operating leverage recorded
Slide 8: Profit and Loss statement
Profit and Loss statement Key comments Net operating income key drivers (€m) June • Commercial customers leading the 2017 2018 %Chg growth with sound contribution from Total revenue 263,4 272,9 3,6% HCP and H&R Cost or raw, ancillary and consumable materials and goods for resale (87,3) (85,1) -2,5%
Slide 9: Trade Working Capital analysis
Trade Working Capital analysis Working Capital (€m) Key comments TWC at 13% of revenues and increasing vs. H1 17 (€m) June (11,4% of revenues) driven by seasonal dynamics. 2017 2018 Inventories • Slight increase in absolute and relative value vs. Inventories 77,5 79,1 Y-1. Trade receivables 86,2 114
Slide 10: CAPEX stable <5% on revenues
CAPEX stable <5% on revenues Capex analysis (€m) Key comments % REV 4.6% 4.6% Main Tangibles Investment Tangibles • Tools and Molds for new product 12,7 Intangibles • New air conditioning system in 12,2 the plant Main Intangibles Investments 4,6 • ERP project 7,4 • Investments in new products develo
Slide 11: Net Financial Debt
Net Financial Debt Net Financial Debt (€m) Key comments €m 30 Jun 2017 30 Jun 2018 Cash & Cash equivalent Cash & cash equivalent (39,0) (58,1) • Very strong cash position mainly refers to bank Current financial receivables (0,6) (0,2) deposits € denominated Current bank debt 46,6 30,9 Current bank d
Slide 12: Net Financial Debt walk (in m €)
Net Financial Debt walk (in m €) Key comments Despite the seasonal cash absorption Technogym still has a very low leverage providing high financial flexibility to continue investing in innovation 0,34x 0,51x 61,5 1,0 18,1 41,3 0,4 12,7 49,1 31,2 7,9 NFD CF from Tax paid NWC CAPEX Financial Dividends
Slide 13: Appendix
Appendix Strictly Private and Confidential 12
Slide 14: Balance Sheet
Balance Sheet €m Jun 2017 % on Revenues Jun 2018 % on Revenues Inventories 77,5 29,4% 79,1 29,0% Trade receivables 86,2 32,7% 114,3 41,9% Trade payables (99,1) (37,6%) (114,2) (41,8%) Trade Working Capital 64,6 24,5% 79,1 29,0% Other current assets/(liabilities) (44,5) (16,9%) (43,3) (15,9%) Current
Slide 15: EBITDA Reconciliation
EBITDA Reconciliation (€m) June Jun 2017 vs 2017 2018 Jun 2018 Δ Net operating income 30,1 33,6 11,6% Restructuring costs (0,0) 0,0 Consultancies costs 0,0 0,0 IPO Cost (0,2) 0,0 Total not recurring items (0,2) 0,0 nm Adjusted Net operating income 29,9 33,6 12,3% Depreciations, amortisations and wri
Slide 16: Cash Flow statement
Cash Flow statement June (€m) Δ ass. Δ% 2017 2018 Consolidated profit for the year 19,0 37,9 18,9 99,3% Depreciation, amortization and impairment losses 11,4 10,4 Provisions 1,5 0,9 Share of net result from joint ventures 0,6 (0,1) Net financial expenses 2,6 0,2 Income/(expenses) from investments 0,