Technogym S.p.a · MIL:TGYM
Technogym — FY2019 Earnings Presentation
21 slides from Technogym's earnings presentation, Mar 17, 2020
Slide 1: Financial results 2019
Financial results 2019 Cesena, March 17 2020
Slide 2: 37 years of organic growth
37 years of organic growth €m 669 0 1984 1986 1990 1994 1998 2002 2006 2010 2014 2015 2016 2017 2018 2019 Key events official supplier Strictly private & confidential 2
Slide 3: Technogym disruptive innovation
Technogym disruptive innovation + CONTENT & SERVICES COMPETENCIES + SW & CLOUD 4.0 + ELECTRONICS 3.0 BIOMECHANICS 2.0 1.0 1983 1995 2000 2015 2020 Strictly private & confidential 3
Slide 4: Strictly private & confidential – 4
Strictly private & confidential – 4
Slide 5: Strictly private & confidential
Strictly private & confidential 5
Slide 6: SKILLATHLETIC: our new experience for athletic training
SKILLATHLETIC: our new experience for athletic training A new immersive training experience accessible both in existing Clubs or in new boutique fitness studios Strictly private & confidential 6
Slide 7: Biocircuit: automatic and personalized workout
Biocircuit: automatic and personalized workout Strictly private & confidential 7
Slide 8: 2019: another year of profitable growth
2019: another year of profitable growth EUR 99m FCF Rev growth > Mkt EUR 25m Net Cash at YE
Slide 9: Revenues showed mid single-digit growth
Revenues showed mid single-digit growth Revenues (€m) Key comments 5,5% 668,9 658,0 634,1 YoY growth mainly driven by: 3,8% • Overseas markets (APAC, NA and LATAM) • Vertical segments (H&R and Home) • Standard business, thereby diversifying the risk related to KA • Offering: services and digital sol
Slide 10: N.A. & APAC driving the growth
N.A. & APAC driving the growth Revenue by geography (€m, % incidence & change) 2019 vs. Y-1 5,5% 668,9 634,1 330,3 EUROPE 1,7% 324,9 (49%) (EXCL. ITA) (51%) 118,3 16,1% 101,9 (18%) APAC (16%) NORTH 13,4% 77,3 87,7 (13%) AMERICA -8,0% (12%) 63,8 58,7 ITALY (10%) (9%) MEIA 9,9% 45,4 49,9 20,8 (7%) 24,
Slide 11: All sales channels are growing YoY
All sales channels are growing YoY Revenue by channels (€m, % incidence & change) 2019 vs. Y-1 5,5% 668,9 634,1 8,3 6,6 39,5 (1%) Retail 24,3% 37,8 (1%) (6%) (6%) Inside sales 4,6% 129,3 121,4 (19%) Distributors (19%) 6,5% 468,3 491,8 (74%) Field sales 5,0% (74%) 2018 2019 Strictly private & confide
Slide 12: Top line growth with a steady profitability
Top line growth with a steady profitability Profit and Loss statement (excluding IFRS 16) Key comments Dec 2019 Delta (€m) Dec 2018 excluding (excluding 2019 vs 2018 Net operating income drivers IFRS 16 IFRS 16) Top line growth driven by volumes Total revenue 634,1 668,9 34,8 5,5% Positive perfo
Slide 13: Top line growth with a steady profitability
Top line growth with a steady profitability Profit and Loss statement (including IFRS 16) Key comments (€m) Dec 2018 Dec 2019 Delta 2019 vs 2018 Total revenue 634,1 668,9 34,8 5,5% Net operating income drivers Top line growth driven by volumes Cost of raw, ancillary and consumable materials and go
Slide 14: TWC heading towards normalization
TWC heading towards normalization Working Capital (€m) Key comments Trade Working Capital • TWC declining as percentage on revenues (11,5%) (€m) Dec 2018 Dec 2019 compared to Dec 18 (15,3% of revenues) Inventories 89,5 76,8 • Inventory Turnover increase by 0,9 Trade receivables 151,5 127,5 • DSO dec
Slide 15: Capex at 5.4% on revenues, slightly increasing Y/Y
Capex at 5.4% on revenues, slightly increasing Y/Y Capex analysis (€m) Key comments Major Tangibles Capex % REV 5.1% 5.4% • Investments in industrial tools and molds for new products • New warehouse in the Slovakian plant 36,4 Major Intangibles Capex • Investments in digital transformation project 3
Slide 16: Net Financial Debt: full deleverage
Net Financial Debt: full deleverage €m Net Financial Position (€m) Key comments Cash & Cash equivalent €m 31 Dec 2018 31 Dec 2019 Cash & cash equivalent (78,5) (114,4) •Strong increase in cash position mainly refers to bank deposits € denominated Current bank debt Current financial receivables (0,2)
Slide 17: Net Financial Position walk
Net Financial Position walk €m 0,26x -60,2 34,9 -3,7 -25,3 21,7 26,7 4,0 36,2 36,4 (1,0) (19,9) (142,6) NFP FY CF from NWC Capex Dividends Tax paid Financial Dividends NFP FY IFRS 16 NFP FY 2018 operat. received costs and pay out 2019 ex. effect 2019 activities other IFRS 16 on NFP Strictly private
Slide 18: Annexes
Annexes Strictly private & confidential 18
Slide 19: Balance Sheet
Balance Sheet €m Dec 2018 % on Revenues Dec 2019 % on Revenues Inventories 89,5 14,1% 76,8 11,5% Trade receivables 151,5 23,9% 127,5 19,1% Trade payables (143,9) (22,7%) (127,5) (19,1%) Trade Working Capital 97,1 15,3% 76,8 11,5% Other current assets/(liabilities) (40,4) (6,4%) (46,4) (6,9%) Current
Slide 20: Cash Flow statement
Cash Flow statement (€m ) Dec 2018 Dec 2019 Consolidated profit for the year 93,5 83,7 Depreciation, am ortization and im pairm ent loss es 22,0 31,1 Provis ions 2,6 4,1 Share of net result from joint ventures (0,3) (1,0) Net financial expens es (0,5) 2,4 Incom e/(expenses) from investments (0,1) (0
Slide 21: EBITDA Reconciliation
EBITDA Reconciliation Dec 2019 Dec 2018 Dec 2018 vs (€m) Dec 2018 Dec 2019 excluding vsDec 2019 Dec 2019 Δ % IFRS 16 excluding Net operating income 106,9 108,4 108,0 1,4% 1,0% Personnel cost 1,0 2,4 2,4 Service, Rentals and leases 2,0 1,3 1,3 Cost of raw, ancillary and consumable materials and goods