Safilo Group S.p.a. · MIL:SFL
Safilo — Q3 2021 Earnings Presentation
25 slides from Safilo's earnings presentation, Nov 9, 2021
Slide 1: Q3 and 9 months 2021 Trading Update
Q3 and 9 months 2021 Trading Update November 9, 2021
Slide 2: Disclaimer
DISCLAIMER This presentation may contain forward looking statements based on current expectations and projects of the Group in relation to future events. Due to their specific nature, these statements are subject to inherent risks and uncertainties, as they depend on certain Q3 and 9 months 2021 cir
Slide 3: CEO quote on third quarter 2021
“In the third quarter of 2021, positive consumer trends in our key markets and product categories allowed us to close another strong quarter of recovery and growth despite the dampening effect of a still complex environment in a number of countries and our challenging comparison bases in the midst o
Slide 4: Q3 2021 Key Business Dynamics
Q3 2021 KEY BUSINESS DYNAMICS …COMPARED TO 2019 ✓ Double-digit organic2 sales growth driven by our main markets, with USA again very solid and Europe picking up ✓ Prescription frames and sport products the leading categories, while sunglasses back to growth ✓ Online business at ca 13% of total busin
Slide 5: Q3 2021 Positive Business Trends
Q3 2021 POSITIVE BUSINESS TRENDS …CONFIRM SALES AND PROFITS ABOVE 2019 AND 2020 Q3 2021 NET SALES €226.6M ADJUSTED1 EBITDA €19.1M ADJ.1 EBITDA MARGIN 8.4% vs Q3 2020 vs Q3 2019 vs Q3 2020 vs Q3 2019 +2.6% +11.1% +33.3% +45.9% @constant FX @constant FX +190 bps +220 bps 9M 2021 NET SALES €737.4M ADJU
Slide 6: Q3/9M 2021 Sales Performance
Q3/9M 2021 SALES PERFORMANCE
Slide 7: Q3/9M 2021 Net Sales Performance
Q3/9M 2021 NET SALES PERFORMANCE Q3 2021 €226.6M 9M 2021 €737.4M vs Q3 2019 vs 9M 2019 +11.1% @constant FX +8.7% @constant @constant FX FX ▪ Organic2 sales growth +16% ▪ Effective brand portfolio rebalance ✓ North America key stronghold, followed by Europe and strong recovery of Latin America. Asia
Slide 8: Safilo's Online Business
SAFILO’S ONLINE BUSINESS 9M 2021 ONLINE BUSINESS AT 13% OF THE GROUP’S TOTAL NET SALES ✓ BLENDERS’ DTC SALES DOUBLING vs 2019 AND ca +20% vs 2020, ON A PROFORMA BASIS3 ✓ SMITH’S DTC SALES ca +80% vs 2019, +30% vs 2020 ✓ SALES THROUGH IPPs ca +86% vs 2019, +23% vs 2020 (% of online business on Group’
Slide 9: Q3/9M 2021 Net Sales Performance by Region
Q3/9M 2021 NET SALES PERFORMANCE BY REGION North America Q3 2021 €115.1M 9M 2021 €355.2M vs Q3 2019 vs 9M 2019 +52.3% @constant FX +51.2%FX@constant FX @constant ✓ Organic2 sales up nearly 20% at constant FX, further consolidating last year progress ✓ Smith key growth driver supported by low base pe
Slide 10: Q3/9M 2021 Net Sales Performance by Region
Q3/9M 2021 NET SALES PERFORMANCE BY REGION Asia & Pacific Q3 2021 €11.3M 9M 2021 €37.2M vs Q3 2019 vs 9M 2019 -35.5% @constant FX -38.1% FX@constant FX @constant ✓ Organic2 sales down around 13% due to a difficult market environment in Australia and in most Asian markets, with travel retail the main
Slide 11: Q3/9M 2021 Economic and Financial Performance
Q3/9M 2021 ECONOMIC AND FINANCIAL PERFOMANCE
Slide 12: Q3/9M 2021 Economic Performance: Gross Profit
Q3/9M 2021 ECONOMIC PERFORMANCE Q3 DELIVERED A MORE MEANINGFUL RECOVERY OF GROSS MARGIN ✓ ACCRETIVE ONLINE BUSINESS OFFSETTING IMPACT OF TERMINATED LICENSES ✓ STRUCTURAL COGS SAVINGS AND PRICE ADJUSTMENTS OFFSETTING HIGHER INBOUND TRANSPORT COSTS GROSS PROFIT Q3 2021 €118.7M 9M 2021 €380.9M margin 5
Slide 13: Q3/9M 2021 Economic Performance: EBITDA
Q3/9M 2021 ECONOMIC PERFORMANCE SOLID IMPROVEMENT OF THE OPERATING PERFORMANCE ✓ STRUCTURAL RECOVERY OF OPERATING LEVERAGE AND DISCIPLINED COST CONTROL EBITDA Q3 2021 €17.4M 9M 2021 €68.4M margin 7.7% margin 9.3% vs Q3 2019 vs 9M 2019 +125.8% +55.6% +410 bps +310 bps Adjusted1 EBITDA Q3 2021 €19.1M
Slide 14: Group Net Debt as of September 30, 2021
GROUP NET DEBT AS OF SEPTEMBER 30, 2021 GROUP NET DEBT SUBSTANTIALLY STABLE ✓ SOLID ECONOMIC PERFORMANCE AND SUPPORTIVE WORKING CAPITAL ✓ 9 MONTH CASH OUT OF CA €13M MAINLY IN RELATION TO THE CLOSURE OF THE ORMOZ PLANT IN SLOVENIA Dec. 31, 2020 June 30, 2021 Sept. 30, 2021 GROUP NET DEBT 222.1 226.9
Slide 15: Business Developments
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Slide 16: Further Actions to Reshape Our Brands Portfolio
FURTHER ACTIONS TO RESHAPE OUR BRANDS PORTFOLIO A MULTI-YEAR GLOBAL LICENSING AGREEMENT WITH A significant opportunity for us ✓ to create a new leading and digitally boosted fashion eyewear brand that directly speaks to the new generations ✓ to further strengthen the presence of Safilo in the digita
Slide 17: Share Capital Increase Successfully Completed
SHARE CAPITAL INCREASE SUCCESSFULLY COMPLETED 100% SUBSCRIPTION OF THE NEW SHARE CAPITAL ✓ Shareholder Loan already repaid, to provide us with a more cost-efficient financial structure, considerably limiting financial charges for the next five years ✓ Strengthened capital structure, further enabling
Slide 18: On Track to Deliver Our 2021 Growth Targets
ON TRACK TO DELIVER OUR 2021 GROWTH TARGETS Q3 underlying trends, phasing of deliveries and current order portfolio confirm previous management expectations on H2 overall business trading and full year guidance: ▪ 2021 Net Sales, up mid-single digits at constant exchange rates compared to 2019 ▪ 202
Slide 19: Q&A
Q&A Q3 and 9 months 2021 Trading Update November 9, 2021
Slide 20: Appendices
Appendices Q3 and 9 months 2021 Trading Update November 9, 2021
Slide 21: Notes to the Presentation
NOTES TO THE PRESENTATION 1 In the first 9M 2021, the adjusted EBITDA excludes non-recurring costs for Euro 17.4 million (Euro 10.2 million at the gross profit level), mainly related to the announced closure, starting from June 2021, of the Ormož production plant in Slovenia, and also a non-recurrin
Slide 22: Net Sales by Geographic Area
NET SALES BY GEOGRAPHIC AREA % change % change % change % change 2021 vs 2020 2021 vs 2019 2021 vs 2020 2021 vs 2019 current constant current constant current constant current constant (Euro million) Q3 2021 % Q3 2020 % Q3 2019 % (Euro million) 9M 2021 % 9M 2020 % 9M 2019 % forex forex forex forex f
Slide 23: Q3 and 9M 2021 Trading Update
Q3 AND 9M 2021 TRADING UPDATE Q3 2021 Q3 2020 Q3 2019 % Change % Change 9M 2021 9M 2020 9M 2019 % Change % Change (Euro million) (Euro million) 2021 vs 2020 2021 vs 2019 2021 vs 2020 2021 vs 2019 Net sales 226.6 219.1 212.8 +3.5% +6.5% Net sales 737.4 554.7 708.7 +32.9% +4.0% Gross profit 118.7 112.
Slide 24: Exchange Rates
EXCHANGE RATES (Appreciation)/De (Appreciation)/De As of Average for preciation preciation September 30, December 31, September 30, September 30, Currency Code % % 2021 2020 2021 2020 US Dollar USD 1.1579 1.2271 -5.6% 1.1962 1.1250 6.3% Hong-Kong Dollar HKD 9.0184 9.5142 -5.2% 9.2912 8.7273 6.5% Swi
Slide 25: Brand Portfolio
BRAND PORTFOLIO * * * 19 * in Safilo’s portfolio from January 2022