Mr Bricolage Sa · EURONEXT:ALMRB
Mr Bricolage Sa — H1 2014 Earnings Presentation
40 slides from Mr Bricolage Sa's earnings presentation, September 2014
Slide 1: Half-Year Results 2014
INTRODUCTION Half-Year Results 2014 Mr Bricolage SA | Half-Year Results 2014 1
Slide 2: Welcome
Welcome INTRODUCTION Jean-François BOUCHER Chief Executive Officer Guy BEGHIN Deputy Managing Director Éric BILHAUT Chief Financial Officer Mr Bricolage SA | Half-Year Results 2014 2
Slide 3: No. 1 local DIY Group in France
No. 1 local DIY Group in France INTRODUCTION 886 stores at 30 June 2014 France: 818 of which 87 Directly-owned stores International: 68 in 9 countries Belgium (43) - Bulgaria (10) - Romania (3) Macedonia (1) - Morocco (4) - Mauritius (2) - Madagascar (2) Uruguay (2) - Andorra (1) Online Network
Slide 4: The French Large DIY stores' market
The French Large DIY stores’market INTRODUCTION A first semester marked by still strong volatility Monthly index "Large DIY stores" Positive trend (change in % vs n-1, in value) since the beginning of the year but still volatile 2013 2014 Q1: + 5.0% 7,0 H1 : + 1.3% Q2: - 1.4 % 4,1 4,0 3,2 2,2 2,
Slide 5: H1 2014 summary
S1 2014 summary INTRODUCTION Consolidated turnover of € 283.0 million: + 2.2% Network Services: +3.1% Retail: +1.8% Operating profit of € 15.3 m : + 72.2% Operating Profit Network Services: € 21.5 m vs. € 21.2 m at H1 2013 Operating Loss Retail: € - 6.3 m vs. € -12.3 m at H1 2013 Healthy fin
Slide 6: Summary
Summary RÉSEAUX | FINANCES | PERSPECTIVES | BOURSE 1. Network activity 2. Consolidated half-year results 3. Outlook 2014 4. Update on the merger with Kingfisher 5. Stock Market 6. Appendices Mr Bricolage SA | Half-Year Results 2014 6
Slide 7: Networks activity
1. Networks activity
Slide 8: Turnover of the Networks: 1.1 Bn€ in H1 2014
Turnover of the Networks (inclusive of tax): 1.1 Bn€ in 1st Semester 2014 NETWORKS | FINANCES | OUTLOOK| STOCK A multi-brand, multi-channel offer Affiliates Online sales Change Change like-for-like Number of Turnover (inclusive of tax) in €m 30.06.14 total-store basis store basis stores Sales in sto
Slide 9: Development of networks
Development of networks NETWORKS | FINANCES | OUTLOOK| STOCK Reminder of 2014 objectives 2014 Executions objectives 1st semester 2014 France France Mr Bricolage: 5 openings Mr Bricolage: 6 openings Les Briconautes: 3 openings Les Briconautes: 1 opening +4 affiliations +16 affiliations Internat
Slide 10: International development
International development NETWORKS | FINANCES | OUTLOOK| STOCK International turnover: € 106.9 m, + 7.0% of total-store basis Belgium: organic and external growth Distribution by zone 43 stores of International H1 2014 T.O. Others * Turnover H1 2014: €62.1m, + 16.9% (total-store basis) 12.8% +4.6%
Slide 11: Directly-owned stores: make the link back to operating performance
Directly-owned stores: make the link back to operating performance NETWORKS | FINANCES | OUTLOOK| STOCK Re-prioritise business 2014 Executions objectives 1st semester 2014 Re-prioritise business Traffic +0.4% (like-for-like store basis) Increase traffic Average basket +0.5% (like-for-like stor
Slide 12: Directly-owned stores: continue with restructuring
Directly-owned stores : continue with restructuring NETWORKS | FINANCES | OUTLOOK| STOCK Continue with reconfiguration of the network 2014 Executions objectives since beginning of 2014 Continuing with disposal plan Disposal plan Disposal of 3 stores on 01/09/2014 (Sablé sur Sarthe, Mayenne, Chât
Slide 13: Roll-out of web-to-store
Roll-out of web-to-store NETWORKS | FINANCES | OUTLOOK| STOCK 3 national websites + 239 local websites mr-bricolage.fr 23,000 items listed end June 2014 mr-bricolage.fr Le-jardin-de-catherine.com National site Local sites LJDC.fr LMDC.fr 4,100 items listed end June 2014 Home delivery La-maison-d
Slide 14: Roll-out of web-to-store
Roll-out of web-to-store NETWORKS | FINANCES | OUTLOOK| STOCK Set up end June 2014 2014 Executions objectives 1st semester 2014 Increasing Traffic growth of mr-bricolage.fr 8.4 million UV accumulated end June 2014: +59 % vs H1 2013 online traffic Maximising use 3.9 M€ of data Turnover (excl.
Slide 15: Consolidated half-year results
NETWORKS| FINANCES | OUTLOOK| STOCK NETWORKS| FINANCES | OUTLOOK| STOCK 2. Consolidated half-year results Mr Bricolage SA | Half-Year Results 2014 15
Slide 16: Turnover H1 2014
Turnover H1 2014 NETWORKS| FINANCES | OUTLOOK| STOCK Sales growth of 2.2% to € 283.0 million Turnover in €, million 30.06.14 30.06.13 % variation Retail 185.9 182.7 + 1.8 % Sales from Directly-Owned Stores 177.9 (1) 174.0 + 2.3 % Online sales 8,0 8.7 - 8,2 % Network Services 97.1 94.2 + 3.1 % Sales
Slide 17: Retail: €185.9 million of turnover
Retail: € 185.9 million of turnover at 30/06/2014 NETWORKS| FINANCES | OUTLOOK| STOCK Directly-Owned Stores: turnover growth at H1 2014 Change like- Consolidated Change total for-like store Turnover store basis (1) basis (1) Q1 2014 € 80.0 m + 4.0 % + 1.9 % Q2 2014 € 97.9 m + 2.5 % 2.6%(2) Total tur
Slide 18: Retail: contribution to Operating Profit
Retail: contribution to Operating Profit NETWORKS| FINANCES | OUTLOOK| STOCK Improvement Operating Result Retail: + € 6.1 m H1 2013 growth at H1 2014 (in €m) 30/06/2013 30/06/2014 Profit (1) e-commerce CICE Others + 0.7 - 6.2 (% margin effects) Restructuring Profit + 0.4 - 0.1 +1.1 D,O,S, Restructur
Slide 19: Network Services: contribution to Operating Profit
Network Services: contribution to Operating Profit NETWORKS| FINANCES | OUTLOOK| STOCK Stability of Operating Profit Network Services H1 2013 growth at H1 2014 (in €m) - 0.8 + 1.4 - 0.6 + 0.6 + 0.3 - 0.6 21.2 21.5 Amt UNIMAG Margin Merger Restructuring Employee Project Disposal D.O.S. 2013 savings (
Slide 20: Contribution of activities to Operating Profit
Contribution of activities to Operating Profit NETWORKS| FINANCES | OUTLOOK| STOCK As of 30 June In € million As of 30 June 2014 2013 Network Services Businesses TOTAL TOTAL Consolidated turnover 97.1 185.9 283.0 276.9 Financial turnover (1) 141.5 185.9 - - Trading margin 62.4 64.4 11.,7 115.4 as %
Slide 21: Improvement in contribution of associates
Improvement in contribution of associates NETWORKS| FINANCES | OUTLOOK| STOCK Net improvement in the share of net profit from associates: + € 2.5 m H1 2013 growth at H1 2014 (in €m) + 0,8 1,3 + 0.3 France 30/06/13 Partnerships + 1.4 Eastern countries 30/06/14 - 1.2 DEDB End of DEDB partnership: capi
Slide 22: P&L for all activities
P&L for all activities NETWORKS| FINANCES | OUTLOOK| STOCK In € million 30.06.14 30.06.13 Variation Consolidated turnover 283.0 276.9 + 2.2 % EBITDA 22.5 19.7 + 14.5 % as % of T.O. 8.0 % 7.1 % + 0.9 pts Operating profit (ROP) 15.3 8.9 + 72.2 % as % of T.O. 5.4 % 3.2 % + 1.2 pts Ordinary operating pr
Slide 23: Cash flow statement
Cash flow statement NETWORKS| FINANCES | OUTLOOK| STOCK In € million 30.06.14 Cash flow from operating activities 20.1 Current taxes paid (0.7) Change in working capital requirements (25.0) Cash flow from investing activities (2.1) Free cash flow (7.7) 2013 dividends paid out in 2014 (2.5) Disposal
Slide 24: Healthy financial structure
Healthy financial structure NETWORKS| FINANCES | OUTLOOK| STOCK Net debt (1) Gearing (2) (in M€) (in %) 156.6 65.9 % - 30.6 M€ 53.0 % 52.0 % 131.0 126.0 + 5.0 M€ 30/06/12 30/06/13 30/06/14 30/06/12 30/06/13 30/06/14 (1) Net debt = Net financial debt As of 30/06/14, which includes the reclassificatio
Slide 25: Simplified balance sheet
Simplified balance sheet NETWORKS| FINANCES | OUTLOOK| STOCK In €m at 30.06.14 ASSETS LIABILITIES Non current assets(1) 308.2 Equity 251.1 of which goodwill 210.0 of which real estate 43.5 of which bank guarantee deposits 2.6 Minority interests 0.2 Current assets(2) 283.8 Financial debt 136.3 of whi
Slide 26: Objective 2014: more cash
Objective 2014: more cash NETWORKS| FINANCES | OUTLOOK| STOCK 2014 Executions objectives 1st semester 2014 Optimisation of Working Capital Decrease in net logistics stocks (-4.5 M€) ahead of plan Stock plan in stores and warehouses Launch plan Directly-Owned Stores’stocks shares effective from
Slide 27: Outlook 2014
NETWORSK| FINANCES | OUTLOOK| STOCK NETWORKS| FINANCES | OUTLOOK| STOCK 3. Outlook 2014 Mr Bricolage SA | Half-Year Results 2014 27
Slide 28: Strategy
Strategy NETWORSK| FINANCES | OUTLOOK| STOCK • Development of France and International networks • Increased frequency more turnover 3 pillars of more development operating profit • Purchase performance more cash • Directly-Owned Stores • Optimisation of Working Capital • CAPEX control Mr Bricolage S
Slide 29: Outlook 2014
Outlook 2014 NETWORSK| FINANCES | OUTLOOK| STOCK In a market context strained by consumption levels and low visibility With a negative trend since June June -4.3% | July -6.4% French Large DIY Stores’market at end July (cumulative 7 months): +0.1 % (source Banque de France) The group remains - com
Slide 30: Update on the merger with Kingfisher
INTRODUCTION 4. UPDATE ON THE MERGER WITH KINGFISHER Mr Bricolage SA | Half-Year Results 2014 30
Slide 31: Why a merger with Kingfisher?
Why a merger with Kingfisher? INTRODUCTION While preserving the Long-term identity of the Mr sustainability and Bricolage Group develop independent stores Mr Bricolage SA | Half-Year Results 2014 31
Slide 32: Update on the merger with Kingfisher
Update on the merger with Kingfisher INTRODUCTION Reminder of the stages of the transaction 2 April 2014 Several workshops undertaken between April and June: Information/consultation process with Staff Representative Bodies for a period of 6 Signing of non- months binding preliminar 6 regional mee
Slide 33: Update on the merger with Kingfisher
Update on the merger with Kingfisher INTRODUCTION Next stages of the transaction 2nd semester 2014 2015 Constitution and instruction of Opinion of the anti-trust clearances the case which shall be submitted to the relevant anti- If opinion accepted by the Parties, continue the process: trust cle
Slide 34: Stock Market
NETWORKS| FINANCES | OUTLOOK| STOCK NETWORKS| FINANCES | OUTLOOKS| STOCK 4. Stock Market Mr Bricolage SA | Half-Year Results 2014 34
Slide 35: Mr. Bricolage Shareholding
Mr. Bricolage Shareholding NETWORKS| FINANCES | OUTLOOK| STOCK As of 31st December 2013 Public Institutional: 23.5 % Individuals: 7.0 % Treasury stocks: 1.4 % Mr.Bricolage members 31.9 % 41.9 % (ANPF) SIFI SIMB SIFA 1.2 % 35.3 % 5.4 % 26.2 % TABUR Family Mr Bricolage SA | Half-Year Results 2014 35
Slide 36: Share price of Mr. Bricolage Shareholding
Share price of Mr. Bricolage Shareholding NETWORKS| FINANCES | OUTLOOK| STOCK At 09/05/14: Share price € 14.60 Market cap. € 151.7 m 12 month high € 15.00 12 month low € 9.30 12 month perf. + 47.3% From the indexes: CAC Small, CAC Mid &Small, CAC All-Tradable, CAC All-Share Shareho
Slide 37: Shareholder, analysts and investor relations
Shareholder, analysts and investor relations NETWORKS| FINANCES | OUTLOOK| STOCK Mr Bricolage SA: Eve JONDEAU Tel: 02 38 43 50 00 Email: eve.jondeau@mrbricolage.fr Actifin: Nicolas MEUNIER Tel: 01 56 88 11 11 Email: nmeunier@actifin.fr All financial information on the Group corporate website www.mr-
Slide 38: Appendices
APPENDICES APPENDICES 5. Appendices Mr Bricolage SA | Half-Year Results 2014 38
Slide 39: Move from Operating Profit to Ordinary operating profit
Move from Operating Profit to Ordinary operating profit (1) APPENDICES in € million S1 2013 S1 2014 SAR COM IS TOTAL SAR COM IS TOTAL Op Profit (ROP) 21.2 -12.3 0.0 8.9 21.5 -6.2 0.0 15.3 trade disputes -0.4 -0.4 -0.3 -0.3 warehouse disposals 0.6 0.6 0.0 D.O.S disposals -0.2 0.2 0.0 0.0 Fees linked
Slide 40: Points regarding the covenants on 30/06/14
Points regarding the covenants on 30/06/14 APPENDICES Outstanding syndicated loan: € 110 million OBSAAR balance: € 0.0 million Redeemed in May 2014 Covenants NFD (1) /EBITDA (2) < 3.5 3.02 (3) NFD (1) / EQ (3) <1 0.52 (1) NFD : Net Financial Debt (2) EBITDA = EBITDA 12 months calculated from the