Technogym S.p.a · MIL:TGYM
Technogym — H1 2017 Earnings Presentation
16 slides from Technogym's earnings presentation, Aug 4, 2017
Slide 1: Financial Results H1 2017
Financial Results H1 2017 H1 2017 Strictly Private and Confidential 0
Slide 2: Disclaimer
Disclaimer This presentation is being furnished to you solely for your information and may not be reproduced or redistributed to any other person. This presentation might contain certain forward-looking statements that reflect the Company’s management’s current views with respect to future events an
Slide 3: Revenues showing mid single-digit growth
Revenues showing mid single-digit growth Revenues (€m) Key comments 6,6% 6,2% 266,4 265,4 Positive volume effect primarily 249,9 coming from • Overseas market (NA, APAC, LATAM) • Club, in particular KA business • New product launches (14% on total revenues): Group Cycle, My Cycling, Skill line, Clim
Slide 4: Revenue growth driven primarily by LATAM, NA & APAC
Revenue growth driven primarily by LATAM, NA & APAC Revenue breakdown by geography - €m, percentage incidence & change 6,6% H1 2017 vs. Y-1 266,4 249,9 13,5 (5%) LATAM 28,7% 10,5 (4%) 29,3 North 15,9% 25,3 (11%) America (10%) 22,5 24,0 (8%) MEIA -6,2% (10%) 41,8 37,4 (16%) APAC 11,9% (15%) 23,3 23,0
Slide 5: High single-digit growth on wholesale and field sales
High single-digit growth on wholesale and field sales Revenue breakdown by channel - €m, percentage incidence & change 6,6% H1 2017 vs. Y-1 266,4 2,7 249,9 18,8 (1%) Retail -6,7% 2,9 (7%) 18,7 (1%) Inside Sales 0,5% (7%) 60,2 (23%) Wholesale 7,2% 56,1 (22%) 184,8 172,2 (69%) Field Sales 7,3% (69%) H
Slide 6: Cost base impact substantially in line with Y-1 excluding non-recurring costs
Cost base impact substantially in line with Y-1 performance excluding non-recurring costs Cost base evolution (% REV) Key comments Cost H1 €227m* €237m D&A / Impairments • In line with Y-1 % REV 90,9% 88.8% Other 1,1% 1,0% Personnel cost 4,9% 4,9% • Incidence mainly in line with Y-1 D&A / Impairment
Slide 7: EBITDA adjusted growing at ~20% vs Y-1 with positive impact on profitability
EBITDA adjusted growing at ∼20% vs Y-1 with positive impact on profitability (15,8% vs 14,1% of Y-1) EBITDA evolution (€m) Key comments 19,9% EBITDA adjusted margin increase: 42,2 41,2 -2,4% FX • Positive price effect, especially 35,2 thanks to cardio products family • Improving product mix due to h
Slide 8: Trade Working Capital at 11,5% on revenues from 10,4% of Y-1
Trade Working Capital at 11,5% on revenues from 10,4% of Y-1 Working Capital (€m) Key comments Inventories • Mainly formed by finished products (60,2m€) and €m Jun 2016 Jun 2017 raw production materials (15,5m€) Inventories 68,0 75,7 Trade receivables 88,6 89,6 Trade receivables Trade payable (100,8
Slide 9: Excluding non recurrent property investment, CAPEX would be higher than Y-1
Excluding non recurrent property investment, CAPEX would be higher than Y-1 Capex analysis (€m) Key comments % REV 7.2% 4.6% Tangibles % REV 3.0% 4.6% • Investment in industrial tools, (exc. non 95,7 molds and production lines recurrent property inv.) 4,1 3,2 Intangibles • New ERP project impacting
Slide 10: Net Financial Debt
Net Financial Debt Net Financial Debt (€m) Key comments Solid cash position despite €13m dividend pay out €m 30 Jun 2016 30 Jun 2017 Cash & cash equivalent (53,1) (39,0) Current bank debt • Mainly composed of credit lines stand-by and Current financial receivables (0,4) (0,6) short-term financing. A
Slide 11: Net Financial Debt walk
Net Financial Debt walk 109,6 1,5 1,8 13,0 12,2 78,0 39,7 42,9 6,4 NFD YE 16 CF from Tax paid NWC CAPEX Dividend Financial Other NFD operat. pay out cost June 17 activities Strictly Private and Confidential 10
Slide 12: Annexes
Annexes Strictly Private and Confidential 11
Slide 13: Profit and Loss statement
Profit and Loss statement Key comments €m Jun 2016 Jun 2017 Jun 2016 vs Net operating income Jun 2017 ∆ % • Non recurring items not present in Total revenue 250,0 266,4 6,6% 1H 2017 • Increase both in sales volume Cost or raw, ancillary and consumable materials and and sales price goods for resale (
Slide 14: EBITDA Reconciliation
EBITDA Reconciliation Board Meeting Board Meeting Jun 2016 August, vs 4 2017 €m Jun 2016 Jun 2017 Jun 2017 ∆ %August, 4 2017 Net operating income 17,9 29,4 64,6% LTMIP before 2015 Restructuring costs 0,6 (0,0) Consultancies costs IPO Cost 2,3 (0,2) Brasil tax (previous year) 2,1 0,0 China WH litigat
Slide 15: Cash Flow statement
Cash Flow statement Jun 2016 vs Jun 2016 vs €m Jun 2016 Jun 2017 Jun 2017 ∆ Jun 2017 ∆ % ass. Profit for the year 9,2 18,6 9,4 101,8% Depreciation, amortization and impairment losses 10,7 11,4 Provisions 1,6 1,5 Share of net result from joint ventures (0,1) 0,6 Net financial expenses 1,2 2,6 Income/
Slide 16: Balance Sheet
Balance Sheet % on % on €m Jun 2016 Jun 2017 Revenues Revenues Inventories 68,0 27,2% 75,7 28,4% Trade receivables 88,6 35,4% 89,6 33,6% Trade payables (100,8) (40,3%) (99,4) (37,3%) Trade Working Capital 55,9 22,4% 65,9 24,7% Other current assets/(liabilities) (26,8) (10,7%) (45,3) (17,0%) Current