Technogym S.p.a · MIL:TGYM
Technogym — FY2020 Earnings Presentation
19 slides from Technogym's earnings presentation, Mar 24, 2021
Slide 1: Technogym Financial Results 2020
Technogym Financial Results 2020 Investor presentation Cesena, March 24th 2021
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: Strategic overview
Strategic overview Strictly private & confidential 3
Slide 4: Wellness: a top-priority even before COVID
Wellness: a top-priority even before COVID 19 ~2.0bn ~300m People in the World Wellness consumers in the world's 30 most moving to feel better industrialized countries End-User wellness needs START TONE REDUCE HELP WEIGHT MORNING RECOVERY & MOVING YOUR BODY STRESS YOUR BACK LOSS ENERGIZING REHAB Tec
Slide 5: COVID Impact on people’s life
COVID Impact on people’s life 70%+ gain weight during the pandemic Stress and anxiety ramped-up during lockdowns Increased interest in exercising, Exercising as top of mind despite previous gym membership healthier habit to look for in 2021 Source: Jefferies survey Strictly private & confidential 5
Slide 6: Covid19: impact & opportunities for Technogym
Covid19: impact & opportunities for Technogym ► In 2020 Covid19 led to a significant increase in health related risks: ▪ 60% of people is more stressed ▪ 51% experiences anxiety ▪ 44% gained weight ▪ 40% experiences lack of sleep ▪ 37% has depressions issue These factors paved the way to a significa
Slide 7: Growth perspectives
Growth perspectives ~ € 1.0bn Group revenues in 2024 ~ € 300mln BtoC revenues in 2022 (anticipated from previous 2023) BtoC contribution to total revenues to increase over the next years Confirmed long term focus on sustainable & profitable growth Strictly private & confidential 7
Slide 8: 2020 financial results
2020 financial results Strictly private & confidential 8
Slide 9: 2020 results at a glance: good profitability level in a tough year
2020 results at a glance: good profitability level in a tough year 2020A 2020A vs 2019A 2019A Revenues (€m) 668.9 509.7 -23.8% EBITDA ADJ (€m) 147.8 96.9 -34.5% Margin (%) 22.1% 19.0% EBIT ADJ (€m) 112.6 58.9 -47.7% Net Profit ADJ (€m) 85.2 43.4 -49.0% Net Financial Position 3.7 59.5 +55.8 (€m) Free
Slide 10: Strong growth in Home partially offset B2B performance
Strong growth in Home partially offset B2B performance Revenues (€m) Key comments -23,8% • Strong growth in Home (+70,5% Y/Y) 668,9 limited the performance from COVID affected sectors in Commercial -22,6% • Italy (+1.9%) outpaced the trend in 2020 driven by Home exposure. APAC 509,7 517,8 showed rec
Slide 11: +71% in Home, representing 30% of total revenues
+71% in Home, representing 30% of total revenues €m FY 2020 vs. Y-1 -23,8% 668,9 90,4 (14%) 509,7 154,1 (30%) BtoC 70,5% 578,5 (86%) 355,6 (70%) BtoB -38,5% FY 2019 FY 2020 Strictly private & confidential 11
Slide 12: Top Home performance in Italy & MEIA supported FY20 revenues trend
Top Home performance in Italy & MEIA supported FY20 revenues trend €m FY 2020 vs. Y-1 -23,8% 668,9 330,3 509,7 (49%) 247,9 EU (49%) (excl. ITA) -25,0% 118,3 (18%) 88,3 -25,3% (17%) APAC 87,7 (13%) 57,3 -34,7% NORTH AMERICA (11%) 58,7 ITALY 1,9% 59,8 (9%) 49,9 (12%) MEIA -14,1% 42,9 24,0 (7%) 13,5 (8
Slide 13: Inside Sales (including e-commerce) and Retail strong performance
Inside Sales (including e-commerce) and Retail strong performance €m FY 2020 vs. Y-1 -23,8% 668,9 509,7 491,8 (74%) 325,1 (64%) FIELD SALES -33,9% 102,4 129,3 (20%) DISTRIBUTORS -20,8% (19%) 70,0 INSIDE SALES 77,1% 39,5 (14%) 8,3 (6%) 12,3 RETAIL 48,8% (1%) (2%) FY 2019 FY 2020 Strictly private & co
Slide 14: Good profitability level achieved despite the pandemic
Good profitability level achieved despite the pandemic €m Profit & Loss statement Key comments (€m) Dec 2019 Dec 2020 Total revenue 668,9 % on sales 509,7 % on sales • Purchase costs substantially stable at 32,6% Cost of raw, ancillary and consumable materials and goods for resale (219,3) (32,8%) (1
Slide 15: Trade Working Capital: positive performance in both DSO and DPO
Trade Working Capital: positive performance in both DSO and DPO Trade Working Capital evolution (€m) Key Comments AR Stock AP 77 50 • Inventories: growth mainly driven by product 128 mix shift 81 • Trade receivables: DSO improved thanks to 77 83 actions to further reduce credits and growth in Home c
Slide 16: Capex stood at 23 m€ (4.5% on revenues) driven by digital & content focus
Capex stood at 23 m€ (4.5% on revenues) driven by digital & content focus €m Capex* analysis (€m) Key comments % of total 5,4% 4,5% revenue Tangibles Capex mainly includes: 36,4 • Tools and moulds for new products • Production lines and manufacturing equipment • Corporate facility, New stores and Of
Slide 17: Net Financial Position improved to 59 m€, with gross cash over 202 m€
Net Financial Position improved to 59 m€, with gross cash over 202 m€ Net Financial Position (€m) Key Comments Free Cash Flow pre tax at 95.4m € in 2020, NFP €m 4 59 with a 103% conversion rate. Cash and cash equivalent Bank debt Other financial debt Other Financial Debt • Leasing exposure stands at
Slide 18: Net Financial Position from 3,7 m€ to 59,5
Net Financial Position from 3,7 m€ to 59,5 €m +55,8 26,5 91,9 -23,0 0,1 83,2 -16,0 59,5 -23,7 3,7 NFP FY19 CF from operat. NWC Capex Tax paid Dividends,Financial NFP FY20 IFRS 16 effect NFP FY20 Activities cost and other. ex. IFRS 16 on NFP Strictly private & confidential 18
Slide 19: Strictly private & confidential – 19
Strictly private & confidential – 19