Slide 1: H1 2021 Results
H1 2021 Results August 3, 2021
Slide 2: Disclaimer
DISCLAIMER This presentation may contain forward looking statements based on current expectations and projects of the Group in relation to future events. Due to their specific nature, these statements are subject to inherent risks and uncertainties, as they depend on certain H1 2021 Results circumst
Slide 3: H1 2021 Confirmed Strong YoY Rebound and Business Well Above 2019
H1 2021 CONFIRMED STRONG YOY REBOUND AND BUSINESS WELL ABOVE 2019 “We are very pleased that the second quarter continued the solid sales and profitability momentum of the first three months of the year, allowing us to close the first half of 2021 with a significant year on year rebound and well abov
Slide 4: Business Performance Consistently Driven by Our Strategic Pillars
BUSINESS PERFORMANCE CONSISTENTLY DRIVEN BY OUR STRATEGIC PILLARS ✓ Successfull rebalancing of the Group’s brand portfolio, acquisitions + new licenses fully compensating terminated business ✓ Organic business up high-single digits, with broad based growth across our core brands ✓ USA, China, prescr
Slide 5: Q2 2021 Trading Update
Q2 2021 TRADING UPDATE EXCEPTIONAL YEAR ON YEAR REBOUND OF GROWTH, WITH SALES AND PROFITS 2x/3x vs Q2 2020 FURTHER, SOLID GROWTH vs Q2 2019 Q2 2021 NET SALES €259.4M ADJUSTED1 EBITDA €23.8M ADJ.1 EBITDA MARGIN 9.2% vs Q2 2020 vs Q2 2019 vs Q2 2020 vs Q2 2019 +137.1% +9.4% +169.9% +12.2% @constant FX
Slide 6: H1 2021 Economic and Financial Highlights
H1 2021 ECONOMIC AND FINANCIAL HIGHLIGHTS ROBUST SALES GROWTH AND STRUCTURAL COST SAVINGS DELIVERING SIGNIFICANT RECOVERY OF PROFITS GROUP NET DEBT SUBSTANTIALLY STABLE DESPITE CASH OUT FOR RESTRUCTURING H1 2021 NET SALES €510.7M ADJUSTED1 EBITDA €49.7M ADJUSTED1 NET RESULT €4.4M ADJ.1 EBITDA MARGIN
Slide 7: H1 2021 Sales Performance
H1 2021 SALES PERFORMANCE
Slide 8: Q2/H1 2021 Net Sales Performance
Q2/H1 2021 NET SALES PERFORMANCE Q1 NET SALES €251.4M Q2 NET SALES €259.4M H1 NET SALES €510.7M vs Q1 2019 vs Q2 2019 vs H1 2019 +6.0% @constant FX +1.7% @current FX + +9.4% @constant FX +4.3% @current FX = +7.7% @constant FX +3.0% @current FX Progressing on our strategic priorities Successful rebal
Slide 9: Q2/H1 2021 Total Online Business
Q2/H1 2021 TOTAL ONLINE BUSINESS SAFILO’S H1 2021 ONLINE BUSINESS (% on total net sales and % change H1 ‘21 vs H1’20) 80 14% 70 60 € Net Sales 50 11% 40 Internet pure players (IPP) +38% 30 4% Smith’s D2C +39% 20 10 Blenders’ D2C business on a pro-forma basis2 +31% 0 H1 2019 H1 2020 H1 2021 Progressi
Slide 10: Q2/H1 2021 Net Sales Performance by Region
Q2/H1 2021 NET SALES PERFORMANCE BY REGION North America Q1 2021 €119.1M Q2 2021 €121.0M H1 2021 €240.1M vs Q1 2019 vs Q2 2019 vs Q2 2020 vs H1 2019 vs H1 2020 +41.8% @constant FX +60.3% @constant FX +198.9% @constant FX +50.6%FX@constant FX @constant +103.6% @constant FX ✓ Ex M&A, business accelera
Slide 11: Q2/H1 2021 Net Sales Performance by Region
Q2/H1 2021 NET SALES PERFORMANCE BY REGION Asia & Pacific Q1 2021 €13.0M Q2 2021 €12.9M H1 2021 €25.9M vs Q1 2019 vs Q2 2019 vs Q2 2020 vs H1 2019 vs H1 2020 -25.3% @constant FX -48.5% @constant FX +49.6% @constant FX -39.1% FX@constant FX @constant +11.7% @constant FX ✓ Toughest base period for tra
Slide 12: H1 2021 Economic and Financial Performance
H1 2021 ECONOMIC AND FINANCIAL PERFOMANCE
Slide 13: Key Drivers of Q2/H1 2021 Economic Performance
KEY DRIVERS OF Q2/H1 2021 ECONOMIC PERFORMANCE • RECOVERY OF OPERATING LEVERAGE AS SALES VOLUMES INCREASED • CONTINUED STRUCTURAL SAVINGS, ACCELERATING ON COGS…HELPING NOW TO OFFSET INFLATIONARY PRESSURES ON COSTS • NON-RECURRING COSTS1 OF €19.3M, MAINLY DUE TO THE CLOSURE OF THE ORMOZ PRODUCTION PL
Slide 14: Q2/H1 2021 Economic Performance: Gross Profit
Q2/H1 2021 ECONOMIC PERFORMANCE UNDERLYING INDUSTRIAL PERFORMANCE SUBSTANTIALLY IN LINE WITH 2019 LEVELS ✓ ACCRETIVE GROWTH OF THE DTC CHANNEL, LARGELY OFFSETTING IMPACT OF TERMINATED BUSINESS ✓ STRUCTURAL COGS SAVINGS COUNTERBALANCING HIGHER INBOUND TRANSPORT COSTS GROSS PROFIT Q1 2021 €126.6M Q2 2
Slide 15: Q2/H1 2021 Economic Performance: EBITDA and EBIT
Q2/H1 2021 ECONOMIC PERFORMANCE OPERATING PERFORMANCE WELL ABOVE 2019 LEVELS ✓ STRUCTURAL RECOVERY OF OPERATING LEVERAGE AND COMPLETION OF THE OVERHEADS SAVING PLAN ✓ HIGHER MARKETING INVESTMENTS, IN LINE WITH IMPROVED BUSINESS ENVIRONMENT AND ONLINE BUSINESS SEASONALITY EBITDA EBIT Q1 2021 €13.4M Q
Slide 16: Q2/H1 2021 Economic Performance: Group Net Result
Q2/H1 2021 ECONOMIC PERFORMANCE GROUP NET RESULT BACK IN PROFIT ✓ BELOW ADJUSTED1 H1 2019 PROFIT DUE TO HIGHER NET FINANCIAL EXPENSES GROUP NET RESULT H1 2021 €2.0M margin 0.4% vs H1 2019 +100.8% +50.2 pps Adjusted1 GROUP NET RESULT H1 2021 €4.4M margin1 0.9% vs H1 2019 -48.5% -80 bps 13
Slide 17: H1 2021 Financial Performance
H1 2021 FINANCIAL PERFOMANCE
Slide 18: H1 2021 Free Cash Flow
H1 2021 FREE CASH FLOW SATISFACTORY CASH FLOW PERFORMANCE ✓ POSITIVE OPERATING CASH FLOW THANKS TO SOLID ECONOMIC PERFORMANCE AND EFFECTIVE MANAGEMENT OF WORKING CAPITAL ✓ CASH OUT OF CA €12M MAINLY IN RELATION TO THE CLOSURE OF THE ORMOZ PLANT IN SLOVENIA ✓ INVESTMENTS IN DIGITAL TRANSFORMATION AND
Slide 19: Group Net Debt as of June 30, 2021
GROUP NET DEBT AS OF JUNE 30, 2021 GROUP NET DEBT SUBSTANTIALLY IN LINE WITH DECEMBER 31, 2020 JUNE 30, 2021 Dec. 31, 2020 GROSS DEBT 298.1 311.0 IFRS-16 effect 40.2 43.1 Shareholder Loan for the acquisitions 96.5 93.5 Term Loan facility, guaranteed by SACE 108.0 108.0 “TL & RCF 2018” facility 55.0
Slide 20: Business Evolutions After H1 2021
BUSINESS EVOLUTIONS AFTER H1 2021
Slide 21: Our Commitment to a 360° Digital Transformation
OUR COMMITMENT TO A 360° DIGITAL TRANSFORMATION OUR CUSTOMER-CENTRIC STRATEGY! ✓OUR NEW “YOU&SAFILO” BTB E-COMMERCE PLATFORM IN EUROPE 16
Slide 22: Our Commitment to a 360° Digital Transformation
OUR COMMITMENT TO A 360° DIGITAL TRANSFORMATION OUR DIGITAL DTC STRATEGY! ✓BLENDERS MOVES FORWARD WITH ITS INTERNATIONAL EXPANSION 17
Slide 23: Further Actions to Reshape Our Brands Portfolio
FURTHER ACTIONS TO RESHAPE OUR BRANDS PORTFOLIO NEW 5-YEAR GLOBAL LICENSING AGREEMENT WITH ✓ An iconic luxury fashion brand, valued throughout the world for its feminine approach and extreme elegance ✓ A relevant eyewear brand providing an immediate opportunity to strengthen our women’s proposition
Slide 24: 2021 Outlook
2021 OUTLOOK Based on the better than expected H1 2021 performance and the continuation of positive trends into the beginning of the third quarter, Safilo now expects the Group’s full year 2021 net sales above 2019 levels, up mid-single digits at constant exchange rates. Adjusted EBITDA for the year
Slide 25: EGM Approved Share Capital Increase
EGM APPROVED SHARE CAPITAL INCREASE ON JUNE 29, 2021 WE LAUNCHED A SHARE CAPITAL INCREASE UP TO A MAXIMUM OF €135M ✓ Mainly aimed at the repayment of the subordinated Shareholder Loan of original €90M, plus the relative amount of interests accrued, granted to Safilo in two tranches in 2020 by Multib
Slide 26: Q&A
Q&A H1 2021 Results August 3, 2021
Slide 27: Appendices
Appendices H1 2021 Results August 3, 2021
Slide 28: Notes to the Presentation
NOTES TO THE PRESENTATION 1 In H1 2021, the adjusted economic results exclude non-recurring costs for Euro 19.3 million (Euro 8.4 million at the gross profit level, and Euro 15.6 million at the EBITDA level), mainly related to the announced closure, starting from June 2021, of the Ormož production p
Slide 29: Net Sales by Geographic Area
NET SALES BY GEOGRAPHIC AREA % change % change 2021 vs 2020 2021 vs 2019 current constant current constant (Euro million) H1 2021 % H1 2020 % H1 2019 % forex forex forex forex North America 240.1 47.0 128.5 38.3 169.5 34.2 +86.9% +103.6% +41.6% +50.6% Europe 208.2 40.8 165.0 49.2 246.3 49.7 +26.2% +
Slide 30: H1 2021 Economic Results
H1 2021 ECONOMIC RESULTS (Euro in millions) H1 2021 % H1 2020 % H1 2019 % % Change vs 2020 % Change vs 2019 Net sales 510.7 100.0 335.6 100.0 495.9 100.0 52.2% 3.0% Cost of sales (248.5) (48.7) (187.0) (55.7) (229.8) (46.3) -32.9% -8.1% Gross profit 262.2 51.3 148.6 44.3 266.2 53.7 76.5% -1.5% Selli
Slide 31: Q2 2021 Trading Update
Q2 2021 TRADING UPDATE (Euro in millions) Q2 2021 % Q2 2020 % Q2 2019 % % Change vs 2020 % Change vs 2019 Net sales 259.4 100.0 114.5 100.0 248.6 100.0 126.6% 4.3% Gross profit 135.6 52.3 39.2 34.2 135.9 54.7 246.3% -0.2% EBITDA 37.7 14.5 (42.0) (36.7) 17.4 7.0 189.7% 116.6% Adjusted1 EBITDA 23.8 9.
Slide 32: Balance Sheet as at June 30, 2021
BALANCE SHEET AS AT JUNE 30, 2021 (Euro in millions) June 30, 2021 December 31, 2020 Change Net working capital 200.6 188.5 12.0 Tangible, Right of Use, and Intangible fixed assets 300.1 316.5 (16.5) Goodwill 31.3 30.3 1.0 Non-current assets held for sale 11.5 6.6 4.9 Other assets / (liabilities), n
Slide 33: Net Working Capital as at June 30, 2021
NET WORKING CAPITAL AS AT 30 JUNE, 2021 (Euro in millions) June 30, 2021 June 30, 2020 Change Trade receivables 220.6 150.3 70.3 Inventories 195.1 228.4 (33.4) Trade payables (215.1) (182.1) (33.1) Net working capital 200.6 196.7 3.9 % on net sales 21.0% 25.3% 26
Slide 34: H1 2021 Free Cash Flow
H1 2021 FREE CASH FLOW (Euro in millions) H1 2021 H1 2020 Cash flow from operating activities before changes in working capital 19.5 (39.3) Changes in working capital (9.4) 56.3 Cash flow from operating activities 10.1 17.0 Cash flow for organic investment activities (9.8) (9.3) Cash payments for th
Slide 35: Exchange Rates
EXCHANGE RATES (Appreciation)/ (Appreciation)/ As of Depreciation Average for Depreciation June 30, June 30, Currency Code June 30, 2021 December 31, 2020 % % 2021 2020 US Dollar USD 1.1884 1.2271 -3.2% 1.2054 1.1021 9.4% Hong-Kong Dollar HKD 9.2293 9.5142 -3.0% 9.3551 8.5531 9.4% Swiss Franc CHF 1.
Slide 36: Brands Portfolio
BRANDS PORTFOLIO * * 29 * in Safilo’s portfolio from January 2022