Cellularline Spa · MIL:CELL
Cellularline Spa — European Midcap Event 2019
28 slides from Cellularline Spa's conference presentation, Jun 19, 2019
Slide 1: Investor Presentation - European Midcap Event
Investor Presentation European Midcap Event Paris - June 19, 2019
Slide 2: Disclaimer
Disclaimer This document has been prepared for preliminary discussions in relation to Cellularline S.p.A. (the “Company”) and its affiliates (together, the “Group”). This document, the information contained herein and any information provided at any presentation in connection herewith (the “Material
Slide 3: The European reference brand in the market of accessories for smartphones and tablets
The European reference brand in the market of accessories for smartphones and tablets Cellularline Group operates in Italy and abroad in the design, distribution and marketing of accessories and devices for multimedia products. Thanks to a highly tailored product strategy based on excellence in qual
Slide 4: Always ready to exploit the new market opportunities
Always ready to exploit the new market opportunities Cellularline development phases Booming Phase Consolidation Phase Expansion Phase development of smartphone era in major market segments organic growth and M&A Riding the wave of new smartphone era Balancing growth while targeting Exploiting furth
Slide 5: Table of contents
Table of contents 1. Business model 2. Growth opportunities 3. Financials and business overview 4. Appendix 5
Slide 6: 1. Business model
Table of contents 1. Business model 6
Slide 7: A sizeable EMEA market of around €4bln
A sizeable EMEA market of around €4bln(1) Camera Credit Card Alarm Mobile Phone Sport What What Calculator Has Happened Is Happening SO FAR NOW Smart Home Newspaper Portable Gaming Device Virtual/Augmented Reality MP3/Music Player Agenda ...and more to come! (1) Market value estimated by management
Slide 8: A rich product mix to satisfy every need
A rich product mix to satisfy every need Red line Black line Blue line Third-party Brands products distribution Protection Charge Products for motorcycles and style and utility and bicycles Battery chargers Interphones Memory Connectivity cards Product Cases Car Screen protectors accessories Power b
Slide 9: Wide geographic presence with a leading position in Europe
Wide geographic presence with a leading position in Europe Business by geography Market leading position (1) (% on Revenues pro-forma FY 2018) Covered EU countries Second-tier markets First-tier markets Italy 46% 54% International Top 10 Market share (2) Top 5 Top 3 Market share Country (# value) To
Slide 10: A distinctive and effective business model
A distinctive and effective business model Product Development Value Chain Strategy Trade Marketing Sales Channel Management 10
Slide 11: Focus on Product Development
Focus on Product Development The historical and core brand of the group. Cellularline is the European leader in the smartphone and tablet accessories market with a wide product range including Charge & Utility, Voice & Sport and Protection & Style. Carefully designed and crafted by Cellularline, AQL
Slide 12: Focus on Value Chain
Focus on Value Chain Strategy Strategic Efficiency driven internally managed externalized Logistic & Product development Sales & Marketing Manufacturing Warehousing New product Marketing analysis Development of Management development and Single product outsourcing strategies relationship w
Slide 13: Focus on Trade Marketing
Focus on Trade Marketing Assortment Display Layout POP materials Impulsive Material Management Management strategy by channel Development An integrated process to maximize the customer experience Ad hoc shelf Visual Ad hoc strategy to Seasonal POP management with merchandising attract new cl
Slide 14: Focus on Sales Channel Management
Focus on Sales Channel Management Consumer Electronics Channel Manager Red line Key Account Manager Blue line Mass Merchandise Italy Category Manager (specific for Blue Line) Sales agents (more than 95% of total sales) Black line Sales Manager Travel Retail Telco Final users Cellularline Sales Manag
Slide 15: 2. Growth Opportunities
Table of contents 2. Growth Opportunities 15
Slide 16: Identified path to growth
Levers of growth: the strategy for success Product Development Enhanced in-house research and development division watching over idea generation, from concept design to effective outsourced manufacturing and distribution processes management. International Expansion Channels Development Improved int
Slide 17: 3. Financials and business overview
Table of contents 3. Financials and business overview 17
Slide 18: Key financials (€m)
Key financials (€m) SALES 159.4 160.4 • Non-recurring factors, such as de-stocking Revenues 139.5 129.7 and PoS reorganization of some Italian retailers weighted on FY 2018. • Weak consumer confidence in the main 2016A 2017A 2017R 2018PF (1) domestic market, partially compensated by growing intern
Slide 19: Focus on Revenues
Focus on Revenues Revenues by product line and geography Year ended Delta (€m) 2018 % on 2017 % on Black Pro-forma Revenues Restated Revenues Value % 4,86% Red Line Blue Revenues Red line - Italy 61.2 47.2% 69.5 49.9% (8.3) -11.9% Red 2018 4,55% Revenues Red line - 90,13% International 55.6 42.9% 53
Slide 20: Focus on Adj. EBITDA
Focus on Adj. EBITDA Adj. EBITDA bridge 45 3.0 38,7 0.1 0.7 39,5 40 35,7 35 5.4 0.5 33,9 30 5.9 27,5 0.5 25 2.9 18,9 20 15 10 5 0 EBIT Material & Immat. PPA depreciations EBITDA FX Extraordinary costs: Others EBITDA Adj. Depreciations STAR & Business Combi. 2018 2017 In 2018 Adj. EBITDA amounted t
Slide 21: Focus on Adj. Net Income
Focus on Adj. Net Income Adj. Net Income bridge 2018 vs. 2017 45 40 4.2 -4.9 35,7 -2.2 -0.4 33,2 17.0 35 -10.1 30 23,7 -9.5 23,7 25 23,1 18,9 -7.5 20 5.3 16,9 15 0.5 -0.3 11,6 10 5 0 EBIT Financial FX Associates NI before Tax Tax Net Income Business PPA Warrant Patente Box Net Income Income/Loss Inc
Slide 22: Focus on Net Debt
Focus on Net Debt Net Debt bridge: form 2017 to 2018 80 (€m) 2.7 0.2 -13.4 70 65,0 60 -30.0 50 40 30 24,5 20 10 0 Net Debt 2017 Warrant Current Financial Liabilities Non-Current Financial Cash & Equivalents Net Debt 2018 Liabilities Net Debt evolution Net Debt & Leverage ratio (€m) 2016A 2017A 2018A
Slide 23: Current Business
Current Business(1) Solid rebound in revenues in the first four months of 2019(2). Overall growth of 14% compared to the same period of 2018, of which 11% is organic and 3% due to the acquisition of Systemaitalia. In 2019 the organic growth partially depends on the absence of non-recurring neg
Slide 24: Key Pillars
Key Pillars European leading brand, pioneer in the development and sale of accessories for smartphone and tablet. Flexible business model with a customer centric approach, led by experienced management team with a solid consumer goods background. Unique group structure covering the value chain
Slide 25: 4. Appendix
Table of contents 4. Appendix 25
Slide 26: Committed management team with experience in FMCG
Committed management team with experience in FMCG Co-CEO Co-CEO Product & Sales & Sourcing Marketing Christian Aleotti Marco Cagnetta (in Cellularline since 1991) (in Cellularline since 2004) Co- Founder L'Oréal – Reckitt Benckiser – Nestlé Management team shows a solid track CFO record and a proven
Slide 27: Shareholders structure
Shareholders structure Current shareholder composition Cellularline(1) Lock-up obligations for key shareholders(3): Funds 18-month lock up (14,0%) S.L.M.K. 11,1% S.L.M.K. Founders 24-month lock up (15,9%) Others Christian Aleotti 80,5% Christian Aleotti 8,4% Others Co-CEOs 36-month lock up (9,7%) Sh
Slide 28: Investor relations contacts
Investors relator contacts Stefano Cerrato CFO & IR Alessandro Brizzi IR ir@cellularlinegroup.com www.cellularlinegroup.com Ph: +39 0522 33 40 02 28