Modivo Sa · GPW:MDV
Modivo Sa — CCC — FY2017 Earnings Presentation
43 slides from Modivo Sa's earnings presentation, 2018
Slide 1: Results presentation 2017
Re s ul t s pr e s en t a t ion 2017
Slide 2: Legal disclaimer
02 L E G A L DI S C L A IME R Ye a r l y r e s u l t s p r e s e n t a t i o n 2 0 17 This presentation (Presentation) has been prepared by CCC S.A. based in Polkowice („CCC”). The presentation is for information only and its purpose is to present selected data on CCC Capital Group (CCC Group). This
Slide 3: Agenda
03 AG E NDA Ye a r l y r e s u l t s p r e s e n t a t i o n 2 0 17 • Key developments • Financial results • Strategic perspective • Summary • Q&A
Slide 4: Key developments
KEY DE V E L OP ME N T S
Slide 5: CCC Group in 2017
05 C C C G R OUP IN 2 017 Key developments +11% LFL IN BRICK AND MORTAR STORES 17 COUNTRIES „OFFLINE” 11 COUNTRIES „ONLINE” 925 STORES +32% CONSOLIDATED SALES GROWTH +111% E-COMMERCE SALES GROWTH +7% YOY
Slide 6: Key developments
06 K E Y DE V E L OP ME N T S FINANCING LAUNCHING OF FIRST EOBUWIE AQUISITION OF STRUCTURE NEW MARKETS OMNICHANNEL STORE NETWORK OPTIMISATION STORE IN ROMANIA PRELIMINARY AGREEMENT OF PURCHASE OF CCC ENTRY OF FUNDS OF SHARE NEW OPERATIONS FIRST STORE MERGING FRANCHISE STORE ISSUE FROM Q3 (526M IN TW
Slide 7: Acquisition of store network in Romania
07 AQUI S I T ION OF S T OR E NE T W OR K IN R OM A NI A Key developments C lo s ing t he de al p lan ned in H1 2 018 D e al’s value : c a 3 3 M E UR S t o r e c ou n t : 5 4 2 016 r e v enue s : 178 M R ON (3 8 M E UR) 2 016 ne t pr o f i t : 25M R ON ( 5 , 3M E UR) 2 017 r e v enue g r o w t h : +
Slide 8: CCC Group - already in countries
Sweden 08 C C C G R OUP - A L R E A DY IN 19 C OUN T R IE S Key developments Estonia 1 Latvia 7 Russia 19 Lithuania 4 Poland 448 Germany 77 Czech Rep. 88 Ukraine 6 Slovakia 50 Own stores Austria 45 Franchise Stores Moldova 1 Hungary 73 eobuwie.pl (online store) Slovenia 13 Romania 54 Croatia 23 STOR
Slide 9: Dynamic floorspace growth
09 DY N A MIC F L O OR S PAC E G R OW T H Key developments YTD FLOORSPACE GROWTH FLOORSPACE GROWTH IN SELECTED COUNTRIES (TOP5) [k sqm] [k sqm] +89 536 459 Poland 32 +15% YOY –12 Russia 8 +120% YOY abroad abroad 53,8% 54,5% +77 k sqm Hungary 7 +19% YOY +17% yoy Czech Republic 5 +13% YOY Poland Polan
Slide 10: Continuing LFL growth
10 C ON T INUIN G L F L G R OW T H Key developments LFL BY REGIONS 12,4% 10,8% 10,0% 9,8% 8,3% 4,7% 4,2% 4,0% 2,2% -0,2% -2,2% -2,7% CCC Poland CCC CE CCC WE CCC Group 2015 2016 2017 20% lfl growth over two years
Slide 11: Revenue growth
11 Key developments R E V E NUE G R OW T H REVENUE GROWTH SOURCES QUARTERLY SALES STRUCTURE [M PLN] [M PLN] eobuwie share 9% —> 15% 319 31 4 194 1 361 62 87 173 1 126 1 126 337 987 860 3 185 720 664 535 2016 Poland CEE WE Other e-commerce Wholesale + 2017 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2
Slide 12: Quarterly sales growth
12 QUA R T E R LY S A L E S G R OW T H Key developments OFFLINE SALES EOBUWIE SALES [M PLN] [M PLN] 14% sales growth 90% sales growth 1 400 250 1 200 1 162 199 200 1 021 977 1 000 841 149 146 795 150 800 609 111 592 105 600 490 100 72 65 400 45 50 200 0 0 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2
Slide 13: Financial results
F IN A NCI A L R E S ULT S
Slide 14: Stable gross profit on sales margin
14 S TA BL E G R O S S P R OF I T ON S A L E S M A R G IN Financial results CCC GROUP’S GROSS PROFIT ON SALES MARGIN GROSS PROFIT ON SALES BY SEGMENT [%] [M PLN] Wholesale + Production 55,0% 2% offline 54,0% CCC Group 53,8% eobuwie 52,2% 52,1% 51,1% 12% 50,0% 51,0% 50,4% 48,7% 45,0% eobuwie 2017 40,
Slide 15: Impact of eobuwie on Group's costs
15 IMPAC T OF E OBU W IE ON G R OUP ’ S C O S T S Financial results SG&A COSTS SG&A COSTS BY DISTRIBUTION CHANNEL [M PLN] [M PLN] +22% YOY (excluding eobuwie) 512 443 41 64 411 24 396 43 366 22 156 40 340 29 28 318 22 114 27 107 19 279 36 20 100 18 87 10 24 81 61 51 448 400 368 371 315 321 339 282 3
Slide 16: Stable costs per sqm
16 S TA BL E C O S T S P E R S Q M Financial results SG&A COSTS PER SQM STORE COSTS PER SQM [PLN/MONTH] [PLN/MONTH] +21 PLN eobuwie + 3% YOY 221 216 205 210 211 44 199 31 49 23 28 44 44 53 46 17 30 17 38 23 21 16 33 16 9 18 17 106 23 80 82 80 73 53 68 85 49 76 74 81 80 80 202 206 217 210 221 216 195
Slide 17: High EBITDA level
17 HIG H E BI T DA L E V E L Financial results EBITDA GROWTH SOURCES GROUP’S EBITDA - COMPONENTS [M PLN]* 38 502 56 446 e-com 18% -4 -34 2017 Rest of CCC Group 82% 2016 Unallocated Retail Wholesale + e-commerce 2017 Productione- * Data after motivation scheme costs Retail and e-commerce as main Shar
Slide 18: CCC Group's financial results
18 C C C G R OUP ’ S F IN A N CI A L R E S ULT S Financial results Q4 RESULTS YEARLY RESULTS M PLN 2016 2017 YOY 2016* 2017 YOY Sales 1 126,1 1 360,5 20,8% 3 185,3 4 194,0 31,7% Dynamic yoy sales growth - much Gross profit on sales 607,0 708,4 16,7% 1 680,1 2 149,9 28,0% above expectations Gross pro
Slide 19: Inventory
19 IN V E N T ORY Financial results INVENTORY [M PLN] [sqm] 550 450 1 509 1 418 1 360 1 285 202 164 350 132 142 1020 982 887 96 250 842 89 720 54 732 763 66 598 385 150 368 583 469 50 545 587 465 508 496 491 307 341 -50 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Inventory in sto
Slide 20: Inventory structure as of 31.12
20 IN V E N T ORY S T R UC T UR E A S OF 31.12. 2 017 Financial results INVENTORY BY SEASON (QUANTITY) CENTRAL AND STORES 40% 30% 20% 10% 0% Winter Spring Summer Autumn All year • Company ready for spring-summer season • Winter collection satisfactorily sold out, since mid February 2018 replaced in
Slide 21: Significant improvement of financial situation
21 S IG NIF ICA N T IMP R OV E ME N T OF F IN A NC I A L S I T UAT ION Financial results NET DEBT NET DEBT/EBITDA [M PLN] 1,5 1 600 1 200 1139 988 941 905 800 747 674 652 0,8 400 406 0 -400 -800 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 2016 2017 Cash Longterm debt Shortterm de
Slide 22: Cash flows
22 CA S H F L OW S Financial results WORKING CAPITAL CASH FLOWS [M PLN] [M PLN] 236 515 174 -89 -96 175 78 -10 -1 020 -222 -1 418 -362 2016 2017 2016 2017 Inventory Receivables Payables Operations CF Investment CF Financial CF Initiated processes of increase of trade payables High financial CF resul
Slide 23: IFRS 16 - changes in reporting
23 IF R S 16 – C H A N G E S IN R E P OR T IN G Financial results Expected* effects of IFRS 16 introduction - changes in reporting of longterm lease contracts ASSETS GROWTH OF CIRCA LIABILITIES GROWTH OF OVER SIGNIFICANT GROWTH 1,5 B PLN 1,5 B PLN OF AMORTISATION * estimates, unaudited, subject to f
Slide 24: Strategic perspective
S T R AT E GIC PERSPECTIVE
Slide 25: Sources of our growth and competitive advantages
25 S OUR C E S OF OUR G R OW T H A ND C OMP E T I T I V E A DVA N TAG E S . . . Strategic perspective OFFER FOR OFFLINE OPTIMAL NEW STORE DIGITAL CUSTOMERS +ONLINE BUSINESS FORMAT TRANSFOR- MODEL MATION COMPREHENSIVE VERTICALLY MODERNISATION DEMOCRATIC BRAND MONOBRAND NEW STORE INTEGRATED BUSINESS O
Slide 26: A simple vision: go for more
26 . . . A ND A S IMP L E V I S ION : G O F OR MOR E Strategic perspective C C C G R OUP BY 2 0 2 2. . . AMONG THE WINNERS of retail sector changes. FULLY OMNICHANNEL COMPANY after deep Undisputed leader in CEE, with established position digital transformation, perfectly understanding the in other s
Slide 27: Fast floorspace growth
27 FA S T F L OOR S PAC E G R OW T H Strategic perspective 31.12.2016 31.12.2017 31.12.2018 k sqm YOY k sqm YOY k sqm YOY Poland 212 13,4% 244 15,1% 291 19,3% CEE 125 22,5% 146 17,7% 167 14,4% WE 82 65,3% 88 7,3% 95 8,0% Others 40 28,6% 58 45,0% 93 60,3% CCC Group total 459 24,2% 536 16,8% 646 20,5%
Slide 28: Other (selected) operational objectives
28 O T HE R (S E L E C T E D) OP E R AT ION A L OB JE C T I V E S Strategic perspective CONTINUATION OF EXPANSION: INNOVATION/DIGITAL TRANSFORMATION: • Further roll-out of new format CCC stores • New ERP, WMS, BI and other systems • New e-commerce system (for both eobuwie and CCC) • New franchise de
Slide 29: Digital transformation
29 DIG I TA L T R A N S F OR M AT ION Strategic perspective CURRENT PROJECTS EFFECTS • ERP system DEVELOPMENT OF OMNICHANNEL • Financial-accounting system HIGHER MARGIN (ERP SYSTEM, PRICE • Logistic systems AND DISCOUNTING MANAGEMENT) • E-commerce platform LOWER INVENTORY (PREDICTIVE SYSTEMS)
Slide 30: Selected CSR activities
30 S E L E C T E D C S R AC T I V I T IE S Strategic perspective CCC GROUP’S CSR REPORT FOR 2017 PREPARED ACCORDING TO INTERNATIONAL GRI STANDARDS (GLOBAL REPORTING INITIATIVE) SUPPLY SAFETY EMPLOYEES CUSTOMERS ENVIRONMENT CHAIN PARTNERSHIP IN EDUCATION OF FUTURE LAUNCHING OF RND INNOVATIVE TRANSLAT
Slide 31: Summary
S UMM A RY
Slide 32: Q&A
Q&A
Slide 33: Contact
33 C ON TAC T BARTŁOMIEJ PIEKARSKI IR Manager T: +48 76 84 58 686 M: +48 667 872 742 E: bartlomiej.piekarski@ccc.eu
Slide 34: Thank you
CCC Thank you
Slide 35: Back-up
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Slide 36: Coherent floorspace growth
36 C OHE R E N T F L OOR S PAC E G R OW T H Back - up 30.06.2016 30.09.2016 31.12.2016 31.03.2017 30.06.2017 30.09.2017 31.12.2017 TYPE COUNTRY store store store store store store store sqm sqm sqm sqm sqm sqm sqm count count count count count count count Poland 197 682 422 201 644 424 212 242 436 2
Slide 37: Stable sales structure
37 S TA BL E S A L E S S T R UC T UR E Back - up SALES STRUCTURE FOOTWEAR SALES STRUCTURE bags cosmetics & accessories footwear kids men ladies 2017 – 6% 2017 – 5% 2017 – 89% 2017 – 14% 2017 – 23% 2017 – 63% [2016 – 5%] [2016 – 4%] [2016 – 91%] [2016 – 13%] [2016 – 23%] [2016 – 64%] 2017 2017
Slide 38: Historical sales structure
38 HI S T OR ICA L S A L E S S T R UC T UR E Bac k - up M PLN * 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 YOY Sales 534,6 860,0 664,6 1 126,1 720,4 1 125,8 987,3 1 360,5 20,8% Gross profit on sales 269,4 464,4 339,3 607,0 350,7 587,7 503,1 708,4 16,7% Gross profit on sales margin 50,4% 54,0% 51,1% 53,
Slide 39: Historical balance sheet - assets
39 HI S T OR ICA L BA L A N C E S HE E T - A S S E T S Bac k - up M PLN 31.12.2016 * 31.03.2017 30.06.2017 30.09.2017 31.12.2017 Intangibles 181,2 181,2 189,2 193,0 197,5 Goodwill 106,2 106,2 106,2 106,2 106,2 Tabgible assets 679,6 679,2 736,9 753,1 787,0 Deferred tax assets 60,1 313,0 55,3 62,2 63,
Slide 40: Historical balance sheet, liabilities
40 HI S T OR ICA L BA L A N C E S HE E T, L I A BIL I T IE S Bac k - up M PLN 31.12.2016 * 31.03.2017 30.06.2017 30.09.2017 31.12.2017 Debt 366,0 436,0 436,0 436,0 436,0 Deferred tax debt 34,1 34,6 33,4 32,3 33,2 Provisions 7,2 7,2 7,3 7,3 9,4 Grants received 23,5 22,9 22,3 21,9 21,3 Minority shares
Slide 41: Shareholder structure
41 S H A R E H OL DE R S T R UC T UR E Bac k - up SHAREHOLDER STRUCTURE AS OF 31.12.2017 ULTRO Sp. z o.o. ULTRO Sp. z o.o. Other affiliate of Mr Dariusz Miłek Other affiliate of Mr Dariusz Miłek shareholders ** and Mr Dariusz Miłek shareholders ** and Mr Dariusz Miłek 54,59% 26,87% 46,94% 34,91% Les
Slide 42: CCC Group's CSR strategy for 2017-2020
42 C C C G R OUP ’ S C S R S T R AT E GY F OR 2 017-2 019 Bac k - up FULLFILMENT OF GLOBAL SUSTAINABILITY GOALS (SDG’S) BY UNITED NATIONS #Go for more #More possibilities #More trust Brand promise customer’s Development of organization’s Good and effective experience potential management Key targets
Slide 43: Glossary
43 G L O S S A RY Bac k - up TERM MEANING CEE Czech Republic, Slovakia, Hungary, Croatia, Bulgaria, Slovenia WE Germany and Austria Others Latvia, Lithuania, Estonia, Ukraine, Russia, Serbia Detal Own store chain Hurt Franchise store chain and sales to other external companies (small scale) Producti