Slide 1: FY 2014 Financial Results
FY 2014 FINANCIAL RESULTS OVS April, 2015
Slide 2: Disclaimer
1 Disclaimer This presentation is being furnished to you solely for your information and may not be reproduced or redistributed to any other oth person. This presentation might contain certain forward-looking looking statements that reflect the Company’s management’s current views with respect re to
Slide 3: Group Shareholding Structure Post IPO
2 Group Shareholding Structure Post IPO Free Float 52.1% 47.9% Key Brands
Slide 4: 2014 Highlights
3 2014 Highlights Strong LfL growth in a declining market driven by improved merchandising and operations Acceleration in new openings after a year of limited +8.0% Y-o-Y Increase in Net Sales investments in network development to cope with market downturn. During the year 36 DOS FF new openings, 43
Slide 5: Key Income Statement Items
4 Key Income Statement Items Strong improvement in Operating Performance 31 January '15 31 January '14 Key Metrics € mln % of Net Sales € mln % of Net Sales Y-o-Y Growth Net Sales 1,227.4 1,136.2 8.0% EBITDA 157.1 12.8% 131.5 11.6% 19.5% EBIT 98.2 8.0% 74.7 6.6% 31.5% EBT 37.2 3.0% 19.7 1.7% 88.5% A
Slide 6: Consolidated Net Sales
5 Consolidated Net Sales Key Drivers Sales Break up By Store Format LfL sales increased by 4.6% YoY Growth •1 LfL sales for OVS increased 5.4% driven by 8.0% 1,227.4 • Improved merchandising particularly in Womenswear: + 2ppt LfL growth compared to other categories, with c.40% increase in the weight
Slide 7: Performance By Brand
6 Y-o-Y Sales and EBITDA Performance Net Sales (€mln) EBITDA (€mln) • High conversion of growing turnover into EBITDA • Improved operating leverage Aggregate Performance • Increase in EBITDA and margin for both brands 1,227.4 1,136.2 157.1 131.5 31 Jan ‘14 31 Jan ‘15 31 Jan ‘14 31 Jan ‘15 11.6% 12.8
Slide 8: Consolidated Net Working Capital
7 Consolidated Net Working Capital € mln 31 January '15 31 January '14 Change Accounts Receivable 73.0 75.1 (2.1) Inventory 287.6 259.3 28.3 Accounts Payable (374.4) (289.9) (84.5) Net Working Capital (13.8) 44.6 (58.4) • Decline in level of receivables, despite the rapid expansion of the franchise
Slide 9: Capex
8 Capex Net Capex of €59.5 mln, Consolidated Capex, net (€ mln) Mainly Related to Group Expansion • New store openings (approx €17 mln) and 59.5 conversions of stores of other New Store brands/restructuring (approx €8 mln) Openings • Renewal of the lighting system with LED in Renewal of many stores
Slide 10: Consolidated Cash Flow Statement
9 Consolidated Cash Flow Statement € mln 31 January '15 31 January '14 Delta EBITDA 157.1 131.5 25.6 Change in Net Working Capital 58.4 (11.5) 69.9 Change in other assets (liabilities) 5.6 5.0 0.6 Capex (59.5) (12.6) (47.0) Operating Cash Flow 161.6 112.4 49.2 Financial Expenses (53.2) (54.0) 0.9 TF
Slide 11: Net Debt and Leverage
10 Net Debt and Leverage € mln 31 January '15 31 January '14 Delta Net Debt 624.4 726.1 (101.7) EBITDA 157.1 131.5 25.6 Leverage on EBITDA 4.0x 5.5x (1.55) • During 2014 leverage declined by 1.55 times driven by strong cash generation and EBITDA growth • Pro forma for the impact of the IPO Net Debt
Slide 12: Operations
11 Operations Significant Initiatives To Support Lfl Growth: 1 Advanced competitor benchmarking to generate focused gap analysis on assortment through monthly data collection both in-store and on-line (≈ 166.000 product options analysed, 15 players mapped) 2 Improved item planning 3 In-season manage
Slide 13: Marketing & E-commerce
12 Marketing & E-commerce 1 Social Responsibility • Bangladesh ACCORD • Alessia Marcuzzi and Save the Children • Ice Bucket Challenge • Action aid campaign: "L'Italia per il futuro" 2 Marketing and special projects • Bianca Balti campaign • Kids Creative LAB • Kids Active camps • Music events (Fedez
Slide 14: Outlook
13 Outlook The macroeconomic backdrop is stabilizing and leading to an improved consumer sentiment; however the Italian apparel markets remains challenging. Amid these mixed signals, the growth trend in organized distribution continues, and particularly in the "value" price segment presided by our b
Slide 15: Appendix
OVS Appendix
Slide 16: Consolidated Balance Sheet Statement
15 Consolidated Balance Sheet Statement € mln 31 January '15 31 January '14 Delta Receivables 73.0 75.1 (2.1) Inventory 287.6 259.3 28.3 Payables (374.4) (289.9) (84.5) Net Operating Working Capital (13.8) 44.6 (58.4) Other Short-term Non-financial Receivables (Payables) (70.3) (59.5) (10.8) Net Wor