140805 Analyst Presentation H1 2014 · 162.5 153.8 58.5 59.8 89.4 85.4 7.1 9.3 10.0 9.7 Q2 ‘13...
Transcript of 140805 Analyst Presentation H1 2014 · 162.5 153.8 58.5 59.8 89.4 85.4 7.1 9.3 10.0 9.7 Q2 ‘13...
ANALYST PRESENTATION H1 2014
August 6th, 2014
KEY HIGHLIGHTS H1 2014 –EXECUTIVE SUMMARY
Net Sales up by 4.5% to € 425.2 m
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Fosun International Limited as new anchor Investor
Reported EBITDA rose by 69.4% to € 29.3 mRecurring EBITDA rose by 18.2% to € 30.5 m
BONITA: Gross margin was up by 640 bpts to 69.7%, Reported EBITDA jumped from € 0.6 m to € 9.0 m
Gross margin increased by 240 bpts further to 58.6%
SUSTAINED MULTI-CHANNEL GROWTH -FOCUS ON CONTROLLED DISTRIBUTION
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As of June 30th, 2014
E-Commerce
Retail Segment
Shop-in-Shops
Multi-Label
Franchise-Stores
Retail-Stores
E-Commerce
Retail-Stores
2,408Worldwide
~7,878Worldwide
199Worldwide
1,011in Europe
EU-wideE-shop
363in Europe
+139 Shop-in-Shops
in H1 ’2014
positive develop-
ment (+356)
+2 Stores in H1 ’2014
stable in H1 ’2014
in 21 countries
+9 Storesin H1 ’2014
Wholesale Segment
in Germany
E-shop
TOM TAILOR BONITA TOM TAILOR
Openings: 17Closings: 8
Openings: 9Closings: 8
3.0%
-3.0%
0.0%
10.6%
1.3%
5.5%
-8.0%-9.1% -8.7%
German Market*
TOM TAILOR Retail
BONITA
TOM TAILOR RETAIL CONTINUES TO OUTPERFORM THE GERMAN MARKET
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Like-for-like development 2014 in %
* Source: TextilWirtschaft-Testclub 2014
TOM TAILOR successfully capitalized on good consumer sentiment
TOM TAILOR Retail grown on a like-for-like basis since 22nd consecutive quarters
BONITA increased profitability and gross margin even though like-for-like sales went down as expected due to:
reduced promotional activities
focus on sales quality
Q1‘14 Q2‘14 H1‘14
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SUCCESSFUL INCREASE IN PROFITABILITY
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20132014
Recurring EBITDA-margin in %
5.0%5.3%
7.6%
9.0%
6.3%
7.2%
Q1 Q2 H1
EBITDA-margin increased in Q1, Q2 and H1 compared to last year
Margin improvement especially driven by increased gross margin of BONITA
Confirm guided recurring EBITDA-margin of approx. 10% in 2014
ReportedEBITDA-margin in %
3.2%
4.7%
9.0%
4.2%
6.9%
Q1 Q2 H1
5.2%
+5.1%+8.4%
+2.1%
+5.7%
OPERATIONAL INITIATIVES IMPLEMENTEDAT BONITA ARE TAKING EFFECT
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Volume development
H1 ’14 vs. H1 ’13 Strong increase in volumes
sold and transactions at cashier for both : BONITA and BONITA men
Strive for careful increase of Average Price per Ticket during 2014 along with roll out of new collections
Revitalization of remaining 136 stores to be finished by the end of August 2014
BONITA
H1 ’14 vs. H1 ’13
Transactions at cashier
BONITA BONITA men
BONITA men
PROFITABLE GROWTH AND STRENGTHENING TOM TAILOR BRAND
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First collections with sharpened TOM TAILOR brand available since Aug ‘14
New brand concept as response to market developments – clearer, more international profile
Strengthening TOM TAILOR
Achieving profitable growth through:
Increasing margins in relative and absolute terms
Free cash flow generation (lower capex) Further reduction of net debt
TOM TAILOR Wholesale
Order intake (until November 2014) increased by 10% compared to prior year
FOSUN – NEW ANCHOR SHAREHOLDER
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… focuses on reputable brands in the consumption market and with profitable growth stories
… is a reliable strategic investor with long-term investments
… has in-depth knowledge of a wide range ofinternational markets with reliable contacts
… combines China’s growth momentum with global resources and is supporting TTG’s activities in China
… has international experience with strong fashion brands (TTG: first German fashion brand)
FOSUN – SECTOR AND MEDIA EXPERTISE
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Greek renowned fashion retail group
US upscale female apparel
brand
Italian high-end menswear
manufacturer
China’s largest outdoor media advertisement group
Top 1 media group in China focusing on finance and
commerceForbes’ Chinese licensing
partner
The above‐mentioned include investments made by Fosun, its subsidiaries, funds under its management and its parent group.
Fosun has strong industrial base and network resources:~can share its media and government connection resources to enhance its investees' brand awareness in China, expand their distribution channels by leveraging its resources in real estate development sector, eg: help open shops and expand no. of points of sales in China
76.8%
23.2%
Free float
Fosun International
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Fosun International Limited as new anchor shareholder Management now participates in the company with approx. 4.9% Other Shareholders: Morgan Finance, Schroders, Henderson, Vanguard
Group, Astellon Capital Partners, Wellington, Kempen
CURRENT SHAREHOLDER STRUCTURE
Shares in issues: 26,027,133
1.4% Supervisoryboard and management
3.5% Management
4.9%
FINANCIAL HIGHLIGHTS H1´14
0.43.5
210.1216.5
56.2%
25.8 30.5
407.0425.2
7.6%
228.9
249.3
58.6%
123.1 130.5
(€m) Q2 ’13 Q2 ‘14
15.919.4
-3.4
?
TOM TAILOR GROUP ON TRACK
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TOM TAILOR brand drives Group sales which increased by 4.5% to € 425.2 m
Gross profit rose by 8.9% to € 249.3 m, thus gross margin improved by 240 bpts to 58.6% due to: Considerable gross margin increase at
BONITA Growing retail share at TT Efficiency increase in Asian sourcing
organisation Gross margin increased surpass
opex, thus: Recurring EBITDA + 18.2% up to
€ 30.5 m Reported EBITDA + 69.4% up to
€ 29.3 m Non-recurrings unchanged at € 1.2 m for
H1 ’14 Recurring net income improved in H1 by
€ 3.1 m
Sales
Gross profit
RecurringEBITDA
Recurringnet income
+3.0%
+6.0%
+22.0%
margin 0.2%
margin 9.0%
margin 60.3%
+4.5%
+8.9%
+18.2%
-0.1%
-0.8%
7.2%6.3%
58.6%
H1 ’13 H1 ‘14
+100%
1.6%
+91.2%-0.3
126.1 142.2
244.5271.4
18.6 20.86.6
9.4
64.7 70.8
120.7 131.1
TOM TAILOR BRANDS GROWING SUCCESSFULLY ACROSS ALL SEGMENTS
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Sales
Gross profit
RecurringEBITDA
(€m)
+9.4%
Q2‘13 Q2 ‘14
TOM TAILOR brands showed an impressive H1 ‘14
Sales raised by 11.0% to € 271.4 m, contributing 63.8% to Group sales (PY: 60.1%)
Gross margin for TOM TAILOR brands went up by 80 bpts in H1 ‘14 to 52.4% (PY: 51.6%), due to
Growing Retail-share within TOM TAILOR brands representing now 45.6% (PY: 44.1%)
Positive effects from direct sourcing
Recurring EBITDA increased
In Q2 ‘14 by 42.4% to € 9.4 m
In H1 ‘14 by 11.8% to € 20.8 m
margin
margin 5.5% 7.2%
53.6% 54.0%
+8.6%
H1 ‘13 H1 ‘14
7.6% 7.7%
51.6% 52.4%
+12.8%
+11.0%
+11.8%+42.4%
2.53.0
136.7 147.6
13.6 13.4
61.0 69.428.1 31.1
61.3 66.5
WHOLESALE BUSINESS UNDERLINES STRONG PERFORMANCE
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Sales
Gross profit
+10.7%
RecurringEBITDA
TOM TAILOR Wholesale showed top-line growth by 8.0% in H1 ‘14 to € 147.6 m, reflecting 34.7% of Group sales (PY: 33.6%)
Order intake approx. 10% well above last year
Ongoing expansion of controlled selling area in H1 ‘14
Number of Shop-in-Shops increased already by 139 to 2,408
Number of franchise stores went slightly up by 2 to 199
Recurring EBITDA in Q2 '14 increased by 20.0% while recurring EBITDA in H1 ‘14 was flat due to higher expenditures for personnel
margin
margin
45.8%
4.0%
(€m) Q2 ‘13 Q2 ‘14
+8.5%
+13.8%
10.0%
H1 ‘13 H1 ‘14
+8.0%
-1.5%
44.6%
+20.0%
47.0%
9.1%4.6%
46.8%
107.8123.8
65.1 72.836.6
39.7
59.4 64.6
5.0 7.44.1
6.4
CONTROLLED EXPANSION OF TOM TAILOR RETAIL
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(€m)
RecurringEBITDA
+56.1%
Gross profit
+8.4%
Sales
Q2‘13 Q2 ‘14
TOM TAILOR Retail increased again top line in H1 ‘14 by 14.8% to € 123.8 m
In Q2 ‘14 like-for-like sales went slightly up by 1.3% despite a weak market environment of minus 3%
H1 ‘14 showed like-for-like growth of 5.5% compared to a flat market
E-commerce went up by impressive 19.3% to 22.1 m in H1 ‘14
Gross profit benefitted from top line growth, rising by 11.8% while gross margin was impacted by some promotional activities
Due to controlled expansion, recurring EBITDA increased significantly:
In Q2 ‘14 by 56.1% to € 6.4 m
In H1 ‘14 by 48.0% to € 7.4 m
+8.8%
margin 6.9%
margin 61.7% 61.5%
+48.0%
+11.8%
+14.8%
4.6%
60.4% 58.8%
H1 ‘13 H1 ‘14
5.9%9.8%
10.4%
102.8 107.2
162.5 153.8
58.5 59.8
89.4 85.4
7.19.79.3 10.0
Q2 ‘13
BONITA FOCUSES ON QUALITY OF SALES (AND PROFITABILITY)
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(€m)
RecurringEBITDA
Gross profit
Sales
Q2 ’14
As expected, sales in H1 ‘14 went down by 5.4% mainly due to resolutely reduction of promotional activities with focus on quality of sales
BONITA sales contributed 36.2% to Group sales (PY: 39.9%)
Sourcing shift to Asia drives gross margin which was up by 650 bpts to 69.7% in H1 ‘14
Absolute gross profit increased by € 4.4 m to € 107.2 m
Thus, recurring EBITDA improved considerably by 36.6% to € 9.7 m
Reported EBITDA went up by € 8.4 m to € 9.0m
margin 65.4%
+2.2%
margin 11.7%
+7.5%
-4,5%
63.2%
+4.3%
4.4%
+36.6%
-5.4%
H1 ‘13 H1 ’14
69.7%
6.3%
70.0%
47.0 47.644.4 45.6 46.044.8
50.046.7
53.5
49.047.5
53.450.9
56.7
52.953.7
58.6
52.155.8 55.0
56.9
60.3
Q1 Q2 Q3 Q4 FY
GROSS MARGIN STEADILY IMPROVING SINCE 2010
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Systematic improvement of gross margins as a result of increased verticalisation, best-in-class design capabilities and successful sourcing initiatives
‘10 ’11 ‘12 ’13 ‘10 ‘11 ‘12 ‘13 ‘10 ‘11 ‘12 ‘13 ‘10 ‘11 ‘12 ‘13 ‘10 ‘11 ‘12 ‘13
TOM TAILOR GROUP gross margin development (%)
’14 ‘14
-9.5
8.5
21.5 20.5
-8.8
-25.9
55.1
20.4
4.5 5.9
49.3
59.7
6.6
2011
2012
2013
2014
10.514.3
7.2
FOCUS ON FREE CASH FLOW GENERATION
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H1 Q3 Q4 FY
(€m)
H1
Operating cash flow Capex
Operating cash flow up to € 18.3 m in Q2
Focus on free cash flow generation (defined as operating cash flow – capex – net interest)
Capex planned for 2014: € 30 m
-22.9
-15.7
-6.3
H1
Free Cashflow
KEY FINANCIAL FIGURES – BALANCE SHEET STRUCTURE IMPROVED
Key figures H1 ‘13 H1 ‘14
Equity ratio (%) 26.7% 28.3%
Net debt (€m) 270.8 235.9
Net working capital, thereof:
Inventories Trade receivables Trade payables
Net working capital/sales in (%), based on LTM
88.7
139.246.9(97.4)
10.3%
93.5
161.052.7
(120.1)
10.1%
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FINANCIAL SUMMARY
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Salesin Mio. €
RecurringEBITDAin Mio. €
*Guidance FY 2014
Q1 Q2 Q3 Q4 H1 H2 FY
2014 208.7 216.5 425.2 >950*
22.0% 22.8% 44.8%
2013 196.8 210.1 249.0 251.2 407.0 500.2 907.2
21.7% 23.3% 27.4% 27.7% 44.9% 55.1%
2012 232.2
2014 11.1 19.4 30.5 ~95*
11.7% 20.4% 32.1%
2013 9.9 15.9 21.4 30.0 25.8 51.4 77.2
12.8% 20.6% 27.7% 38.9% 33.4% 66.6%
2012 35.5
OUTLOOK
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OUTLOOK FOR 2014 CONFIRMED
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2014
Growth
Profitability
Operations
Group sales over € 950 m
Group recurring EBITDA margin around 10%
Increased focus on profitability going forward, underpinned by strengthened scale and quality of operations
Outgrowing the market and gaining market share
VISION TOM TAILOR GROUP
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We are creating desirable brands and make them accessible to all
CONTACT DETAILSINVESTOR RELATIONS
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Felix Zander,Head of Investor Relations & Corporate Communications
TOM TAILOR HOLDING AGGarstedter Weg 1422453 HamburgPhone: +49.40.589 56 - 449Fax: +49.40.589 56 - 199Mobile: +49.173 746 08 28Email: [email protected]
Date Event
March 25, 2014
May 8, 2014
May 27, 2014
August 6, 2014
November 6, 2014
Publication results FY 2013 & Analyst Conference
Interim report Q1/2014
Annual General Meeting, Hamburg
Half-yearly financial report 2014
Interim report Q3/2014
DISCLAIMER
This document contains forward-looking statements, which are based on the current estimates and assumptions by the management of TOM TAILOR Holding AG. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate and similar formulations. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by TOM TAILOR Holding AG and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside TOM TAILOR Holding AG’s control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. TOM TAILOR Holding AG neither plans nor undertakes to update any forward-looking statements.
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