Slide 1: FY 2019 results
D&Longhi Group ~ FY 2019 results. -
Slide 2: Foreword
FY 2019 RESULTS Foreword The figures of the year 2019 are reported in accordance with the new IFRS 16 accounting standard, introduced since January 1st, 2019. Furthermore, since Oct. 1st, some contribution to customers (previously included within the financial charges section of the Profit & Loss sc
Slide 3: Definitions & assumptions
FY 2019 RESULTS Definitions & assumptions In this presentation: • Adjusted stands for “before non recurring items and inputed costs of the stock option plan” • Continuing Operations identify the consolidated perimeter excluding NPE s.r.l.; • ForEx or FX stand for Foreign Exchange Rates; • “M” stands
Slide 4: Contents
CONTENTS • FY 2019 results • Appendix
Slide 5: Highlights
FY 2019 RESULTS Highlights In the fourth quarter 2019 (in normalized terms): revenues of € 802.4 million, up 3.1% (+1.6% organic and +2.5% in reported terms); adjusted ebitda of € 137.3 million (€ 137.4 million in reported terms), equal to 17.1% of revenues; in Q4 the Group has increased the A
Slide 6: The topline
FY 2019 RESULTS The topline 12 months 12 months 4th quarter 4 th quarter 2019 2019 2019* 2019* 2018 2018 "normalized" "normalized" Revenues 2,101.1 797.4 2,106.1 2,078.4 802.4 778.1 change % 1.1% 2.5% 1.3% 3.1% organic ch. % -0.3% 1.0% -0.1% 1.6% * Including the effect of the reclassification of the
Slide 7: The discontinuities in revenues
FY 2019 RESULTS The discontinuities in revenues Reorganization of some subsidiaries termination of distribution of large appliances to Australia Comfort products in USA Discontinuities in Single serve category Financial discounts Revenues ex Revenues ex financial discontinuities and Revenues reporte
Slide 8: Revenues by market & product
FY 2019 RESULTS Revenues by market & product Russia, Ukr. & CIS others 8,6% others NE- Cooking & SW_EU EU Coffee Makers Food Prep. 10,7% 15,0% 50,1% 28,7% UK 5,0% MEIA 6,6% France 5,9% FY 2019 FY 2019 Australia & NZ 4,5% Germany North Comfort & 12,5% America Home care 11,0% 16,0% greater China Italy
Slide 9: Revenues by product: coffee makers
FY 2019 RESULTS Revenues by product: coffee makers Others coffee 3,5% Capsules machines 12,1% o The category reached 50% of total revenues Pump Machines o single serve business suffered from 6,7% discontinuities highlighted in the Nespresso and DolceGusto 12 months distribution (but was up in Q4); o
Slide 10: Revenues by product: food preparation
FY 2019 RESULTS Revenues by product: food preparation Kitchen Machines 9,1% Hand Blenders 5,5% o Food preparation down mid single Others Kitchen digit in FY, but we have witnessed a appliances slighlty better performance in Q4 (but 14,2% still weak); o in the Q4 some categories, like hand 12 months
Slide 11: Revenues by product: comfort & home care
FY 2019 RESULTS Revenues by product: comfort & home care o Home care products achieved a mid single digit growth in the 12 months, but slightly worsening over last 3 months; o Comfort products in negative 12 months territory, affected by the impact of tariffs hikes on imported goods in the USA and b
Slide 12: Revenues by region
FY 2019 RESULTS Revenues by region 12 months EUR million chg. % organic chg. % 4th Q 2019 chg. % organic chg. % 2019 North East Europe 601.5 8.9% 7.3% 241.5 7.3% 4.9% South West Europe 823.4 1.2% 1.0% 312.8 4.2% 4.0% EUROPE 1,424.9 4.3% 3.6% 554.4 5.5% 4.4% APA (Asia/Pacific/Americas) 541.6 -4.3% -6
Slide 13: Margins
FY 2019 RESULTS Margins 12 months 12 months 4th quarter 4 th quarter 2019 2019 2019* 2019* 2018 2018 "normalized" "normalized" net ind. margin 990.2 374.3 995.2 990.7 379.3 373.1 % of revenues 47.1% 46.9% 47.3% 47.7% 47.3% 48.0% adjusted Ebitda 295.3 137.4 280.4 312.8 137.3 150.7 % of revenues 14.1%
Slide 14: FY '19 adjusted Ebitda bridge (normalized)
FY 2019 RESULTS FY ‘19 adjusted Ebitda bridge (normalized) 5.0 0.1 17.8 47.8 7.5 of which : => € -15M of A&P => € -8.9M of duties and logistic costs in US 312.8 280.4 adj. ebitda FY18 volumes price mix FX other costs adj. ebitda FY19 normalized normalized 14
Slide 15: Q4 adjusted Ebitda bridge (normalized)
FY 2019 RESULTS Q4 adjusted Ebitda bridge (normalized) 0.7 3.4 4.5 15.2 0 of which : => € -11M of A&P => € -0.4M of duties and 150.7 logistic costs in US 137.3 adj. ebitda 4Q-18 volumes price mix FX other costs adj. ebitda 4Q-19 normalized normalized 15
Slide 16: Price-Mix effect by quarter
FY 2019 RESULTS Price-Mix effect by quarter 16
Slide 17: Net Financial Position and working capital
FY 2019 RESULTS Net Financial Position and working capital 12 months 3 1 .1 2 .2 0 1 9 3 1 .1 2 .2 0 1 9 * 31.12.2018 change n o rmal i zed n o rmal i zed EUR million EUR million EUR million EUR million Net debt / (Net Cash) -277.8 -351.8 -228.1 -123.7 Net Equity 1,190.5 1,191.2 1,065.9 125.2 Net Wo
Slide 18: A&P and Capex by quarter
FY 2019 RESULTS A&P and Capex by quarter A&P by quarter 120 16.0% 100 14.0% In Q4 the Group boosted the 12.0% A&P spending, reaching 13.5% 80 10.0% of revenues (11.7% in the FY); 60 8.0% the aim of the investment is to 6.0% support and strengthen our 40 4.0% brands' leadership in the main 20 2.0
Slide 19: The net cash flow in the 12 months
FY 2019 RESULTS The net cash flow in the 12 months FCF before dividends & IFRS16 3.5 21.6 62.0 55.3 259.2 179.0 74.0 351.8 277.8 228.1 NFP at Dec. Operating CF CF CF from Capex Free Cash Dividends "normalized" IFRS 16 NFP at Dec. 31, 2018 fromNWC Equity Flow (1) NFP at Dec. 31, 2019 (other) 31, 2019
Slide 20: Contents
CONTENTS • FY 2019 results • Appendix
Slide 21: Profit & loss 2017-2019
APPENDIX Profit & loss 2017-2019 * "CONTINUING OPERATIONS" "CONTINUING OPERATIONS" NORMALIZED DATA (Euro million) 2017 2018 2019 FULL FULL FULL Q1-17 Q2-17 H1 Q3-17 Q4-17 Q1-18 Q2-18 H1 Q3-18 Q4-18 Q1-19 Q2-19 H1 Q3-19 Q4-19 YEAR YEAR YEAR Revenues 385.1 431.6 816.7 421.7 734.4 1,972.8 402.6 452.1 8
Slide 22: Disclaimer
APPENDIX Disclaimer This presentation might contain certain forward-looking statements that reflect the company’s current views with respect to future events and financial and operational performance of the company and its subsidiaries. Forward looking statements are based on De' Longhi’s current ex
Slide 23: Thank you. Contacts
THANK YOU. Contacts: Investor Relations: Fabrizio Micheli / Samuele Chiodetto T: +39 0422 4131 investor.relations@delonghigroup.com