Smcp Sa · EURONEXT:SMCP
Smcp Sa — FY2019 Earnings Presentation
33 slides from Smcp Sa's earnings presentation, Mar 25, 2020
Slide 1: Full-Year Results 2019
SMCP sandro + maje - claudie pierlot - de fursac sandro Full-Year Results 2019 March 25, 2020 Daniel Lalonde, CEO Philippe Gautier, CFO & Operations Director
Slide 2: Disclaimer
Disclaimer Certain information contained in this presentation include projections and forecasts. These projections and forecasts are based on SMCP management's current views and assumptions. Such forward-looking statements are not guarantees of future performance of the Group. Actual results or perf
Slide 3: Daniel Lalonde, CEO
Daniel Lalonde, CEO
Slide 4: FY 2019 results — Key Financial highlights
FY 2019 results — Key Financial highlights SALES GROWTH Adj. EBITDA! margin NET INCOME +11.3% reported 15.4% €) 1.6m (+2.8%) +8.7% ccs. Sales: €1 131.9m Adj. EBITDA: €174.2m €59.4m (+14.1%) excl. refi. penalties Operating FCF? NET FIN.DEBT / EBITDA €62.4m 2.2x NB: Excluding IFRS 16 ces: at constant
Slide 5: FY 2019 sales dynamics by brand and region
FY 2019 sales dynamics by brand and region 14.2% of international sales growth at ccs. AMERICAS FRANCE EMEA +6.7% ccs. -0.7% ccs. +9.8% ccs. —— Sales breakdown* ——— —— Group Key figures —— am 34% ow o Reported sales growth: +11.3% 23% 0 Sales growth ces.: +8.7% By region By brand hited 39% o LFL sal
Slide 6: Philippe Gautier, CFO & Operations director
Philippe Gautier, CFO & Operations director
Slide 7: Gross margin, store costs, retail margin and SG&A
-130 bps 75,9% 74,5% 2018 2019 -240 bps 35,7% 33,4% o -100 bps +90 bps o -18,9% -18,0% -40,2% -41,2% Management Store costs Retail margin SG&A (% of sales) gross margin o o o
Slide 8: Net income bridge FY 2018 to FY 2019
+€6,1m +€9,2m -€7,8m -€9,0m +€3,3m -€2,2m €59,4m €50.2m €52,1m €51,6m FY 2018 Net Adj. EBITDA D&A Non-recurring Financial result Tax FY 2019 Net Refi. penalties FY 2019 FY 2018 Income & LTIP expenses excl. refi. Penalties Income net of tax Net Income Net income excl. refi. Penalties excl. refi. Pena
Slide 9: Operating free cash flow and capex
€63,1m €62,4m FY 2018 FY 2019 €69,5m €188,1m €170,7m €56,3m FY 2018 FY 2019 FY 2018 FY 2019 o o o
Slide 10: Net financial debt evolution
2.2x +€1,9m +€4,9m +€102,3m 1.6x +€25,9m +€40,9m Incl. €12.6m refi. penalties €387,4m -€62,4m €274,0m Dec. 2018 Operating FCF 1 Tax Financial charges Acquisition & Liabilities IPO-related costs Share buy back Dec 2019 Net financial debt of De Fursac program Net financial debt o o o
Slide 11: IFRS 16 impact
2019 IFRS 16 2019 2019 IFRS 16 2019 P&L Balance sheet excl. IFRS 16 impact incl. IFRS 16 excl. IFRS 16 impact incl. IFRS 16 Adjusted EBITDA 174.2 +112.2 286.3 Trademarks, intangible assets & right-of-use assets 810.3 +473.9 1,284.2 D&A -45.2 -109.6 -154.8 Deferred tax 41.3 +2.6 43.9 Adjusted EBIT 12
Slide 12: Update Covid-19
Claudie Pierlot 0) campaign Update Covid-19
Slide 13: Update on COVID-19 outbreak
Update on COVID-19 outbreak Gl) Top priority given to employees and stakeholders safety, health and protection @) Creation of global crisis team since January to manage the situation on daily basis GC) Mitigation plan to reduce costs and postpone non-essential investments 4 Liquidity already secured
Slide 14: Update on COVID-19 outbreak by region
Update on COVID-19 outbreak APAC EMEA incl. France 23% of Group sales* Greater China: o Almost all physical stores re-open mid- March (vs. 70% of stores closed at peak) o Traffic down 80/90% in Feb; early signs of improvement since mid-March o Strong performance of e-commerce throughout crisis in Ch
Slide 15: Update on COVID-19 outbreak: mitigation measures
Update on COVID-19 outbreak Select essential capex and postpone others © Strong reduction of net openings © Focus on digital projects —— Mitigate 2020 impacts on profitability ——— 2) Reduce 3] Adjust operating expenses inventories & collections o Rent relief in Europe & Asia o $820: inventories cent
Slide 16: Update on COVID-19 outbreak: 2020 Outlook
Update on COVID-19 outbreak 2020 Outlook © QI 20 sales* expected to be down by slightly more than 20%: + Strong start to the year, especially in APAC * February: significant deterioration in Greater China * March: spread of the epidemic to the rest of the world ; early sign of improvement in Greater
Slide 17: 2020 - Building on fundamentals while weathering the crisis
2020 - Building on fundamentals while weathering the crisis o Unique Business model © Portfolio of strong international brands well-balanced geographically o Teams fully operational and focused to prepare the recovery 17
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Slide 19: 2020 financial agenda
2020 financial agenda April 29, 2020 © 2020 QI sales July 23, 2020 o 2020 HI sales Sept. 4, 2020 o 2020 HI results Sept. 30, 2020 o Capital market day \ BL
Slide 20: Appendix
Appendix
Slide 21: Quarterly sales by region and brand
In €m Q1-18 Q1-19 % % at ccs. Q2-18 Q2-19 % % at ccs. Q3-18 Q3-19 % % at ccs. Q4-18 Q4-19 % % at ccs. FY-18 FY-19 % % at ccs. France 99.8 96.0 -3.9% -3.9% 87.1 87.5 +0.5% +0.5% 89.6 91.8 +2.5% +0.6% 98.3 109.2 +11.1% +0.5% 374.9 384.6 +2.6% -0.7% EMEA 71.9 79.4 +10.4% +9.9% 73.5 79.4 +8.0% +7.5% 77.
Slide 22: Number of DOS and POS
Var. Var. Number of DOS 2018 Q1-19 H1-19 9M-19 2019 FY 19 vs FY 19 vs 9M 19 FY 18 By region France 482 476 481 475 472 -3 -10 EMEA 364 372 385 395 409 +14 +45 Americas 148 144 146 156 162 +6 +14 APAC 178 - 188 - 195 - 209 - 219 +10 - +41 - By brand Sandro 503 505 520 536 550 +14 +47 Maje 409 414 423
Slide 23: Income statement FY-19 with IFRS 16 impacts
FY-19 FY-19 IFRS 16 €m FY-18 excl. IFRS 16 incl. IFRS 16 impacts Sales 1017.1 1131.9 1131.9 - Purchases and changes in inventories 1 -367.8 -418.6 -418.6 - Gross Margin2 649.3 713.2 713.2 - Other operating income and expenses -265.5 -301.9 -189.7 +112.2 Personnel costs -212.3 -237.2 -237.2 - Adjuste
Slide 24: Balance sheet: assets
As of Dec 31, 2019 As of Dec 31, 2019 IFRS 16 €m As of Dec. 31, 2018 excl. IFRS 16 incl. IFRS 16 impacts Goodwill 630.1 683.2 683.2 - Trademarks 600.0 663.0 663.0 - Other intangible assets 136.1 147.3 26.8 -120.5 Right of use - - 594.4 +594.4 Property, plant and equipment 76.0 93.9 93.9 - Non-curren
Slide 25: Balance sheet: equity and liabilities
As of Dec 31, 2019 As of Dec 31, 2019 IFRS 16 €m As of Dec. 31, 2018 excl. IFRS 16 incl. IFRS 16 impacts Share capital 81.9 82.2 82.2 - Share premium 951.5 951.2 951.2 - Reserves and retained earnings 63.5 134.6 126.5 -8.1 Total comprehensive income 46.8 36.4 36.4 - Treasury shares -1.6 -6.5 -6.5 -
Slide 26: Net financial debt
As of Dec. 31, 2018 As of Dec. 31, 2019 Bond & interest-bearing loans and borrowings -176.4 -0 Non current financial debt & other financial liabilities -0.2 -436.8 Bank overdrafts and short-term financial liability -143.9 -3.0 Cash and cash equivalents 46.5 52.3 Net financial debt -274.0 -387.4 LTM
Slide 27: Management gross margin to adjusted EBITDA
FY-19 1 FY-18 1 €m excl. IFRS 16 Management Gross margin 2 771.7 843.5 % of sales 75.9% 74.5% Direct costs of point of sales (408.5) (465.9) % of sales -40.2% -41.2% Retail margin 363.3 377.6 % of sales 35.7% 33.4% SG&A (191.8) (203.5) % of sales -18.9% -18.0% Adjusted 3 EBITDA 171.5 174.2 % of sale
Slide 28: Adjusted EBITDA by brand
FY-19 FY-18 €m excl. IFRS 16 Adjusted 1 EBITDA 171.5 174.2 Sandro 86.3 86.4 Maje 70.8 75.3 Other brands 14.4 12.5 Adjusted 1 EBITDA margin 16.9% 15.4% Sandro 17.2% 15.7% Maje 18.1% 17.2% Other brands 11.5% 8.8%
Slide 29: Cash flow statement
FY-19 FY-19 FY-18 IFRS 16 impacts €m incl. IFRS 16 excl. IFRS 16 1 Adjusted EBITDA 171.5 286.4 174.2 +112.2 Changes in working capital -47.5 -31.7 -31.7 - Non-recurring expenses -18.7 -12.4 -12.4 - Income tax expense -12.7 -40.9 -40.9 -0.0 Net cash flow from Operating activities 92.6 201.3 89.2 +112
Slide 30: Operating free cash flow
FY-19 €m FY-18 excl. IFRS 16 1 Adjusted EBITDA 171.5 174.2 Change in working capital -47.5 -31.7 Non-recurring expenses -18.7 -12.4 Capital expenditure -56.3 -69.5 Income tax -12.7 -40.9 Operating Free cash-flow after tax (a) 36.3 19.7 Cost of share-based payments (b) -11.3 - Non-operating expenses
Slide 31: Working capital
€m FY-18 FY-19 Var. vs FY-18 Inventories 221.4 247.9 26.5 Trade receivables 51.4 58.4 7.0 Trade and other payables -102.1 -118.3 -16.2 Operational working capital 1 170.7 188.1 17.4 As a % of LTM sales 16.8% 16.6% -0.2pts Other assets & liabilities -51.8 -17.4 34.5 Working capital 1 118.9 170.8 51.9
Slide 32: Shareholding structure and voting rights as of January 15, 2020
Shareholding structure and voting rights as of January 15'* 2020 Capital (%) Ruyi & Co-investors 53.4% Free float (51.3%)! 39.2% (38.1%)! Founders, Managers & Treasury shares 74% ‘As of January 15%, 2020 the share capital of the Company is composed of 75,170,290 shares (including 1,05 2,530 Free Pre
Slide 33: Definitions of non-IFRS financial measures
Definitions of non-IFRS financial measures “Sales” consists of total sales (retail and wholesale sales) net of rebates, discounts, VAT and other sales taxes, but before the deduction of concession fees paid to department stores and commissions paid to affiliates. “Sales growth at constant currency”