Analyst Presentation First Quarter Results 2016 3 May 2016 ADLER - - PowerPoint PPT Presentation

1 ADLER – Q1 2016

Analyst Presentation

First Quarter Results 2016

3 May 2016

2 ADLER – Q1 2016

Coincidence of various factors hampers sales development

115.1 105.3 2015 2016

• 8.5%

Revenue in m€

• Sluggish sales development due to very

unfortunate weather conditions (mild winter / cold spring)

• Early Easter holiday resulted in losing a day
• f sales in the first quarter of 2016
• Product range optimisation and the

associated clearance sales at the ADLER Orange stores caused revenue decline of € 2.2 million

• Like-for-like: -7.7%

3 ADLER – Q1 2016

58.2 54.9 56.9 50.5

Cost of materials:

• 5.7%

Gross profit:

• 11.2%

Q1-2015 Q1-2016

Gross profit margin slightly down

Margin 47.9% 49.5%

in m€

4 ADLER – Q1 2016

Decrease in EBITDA lower than in gross profit thanks to successful cost saving measures

• 13
• 16.6

Q1-2015 Q1-2016

• 27.7%

EBITDA in m€

• Other operating expenses decrease from

€ 44.1 million to € 42.5 million, as ADLER reacted promptly to the decline in revenues by implementing cost saving programmes

5 ADLER – Q1 2016

Seasonal effects lead to reduction of cash

Net debt*

* Including liabilities from customer card, pension provisions, finance lease liabilities ex assets held for sale, cash, other financial liabilities

in m€ in m€

34.0 57.0

31/03/2015 31/03/2016

• Decline in cash and cash equivalents due to: lower

revenues, the typical seasonal cash reduction and the consolidated net loss of € -15,0 million

40.9 52.1

24.9 4.9 1.2

21.1

Cash 31/3/2015 Cash 01/01/2016 Operating CF CF from Investing CF from Financing Cash 31/3/2016

Net debt impacted by:

• Decrease in cash and cash equivalents by € 19.8
• Mio. compared to 31 March 2015
• Increase in finance lease obligations by € 3.9 million

to € 57.1 million due to contract modifications

• Rise in liabilities from customer card by € 0.6 million
• Reduction of pension provisions by € 1.3 million

6 ADLER – Q1 2016

Continuous high balance sheet quality – ready for future expansion

in m€ 31 March 2016 31 Dec. 2015 Change Total assets 240.1 243.4

• 1.4%

Inventories 99.7 81.3 +22.6% Trade receivables 0.6 1.9

• 68.4%

Cash position 21.1 52.1

• 59.5%

Equity 89.9 104.9

• 14.3%

Equity ratio 37.4% 43.1% 5.7pp Trade payables 42.8 32.0 33.8

7 ADLER – Q1 2016

Ongoing optimism for 2016: Forecast confirmed

Sales

Low single digit

EBITDA

Upper single digit

Expansion

5 – 10 new stores Additional store closures

Gross profit margin Personnel expenses

Slight increase Slight increase

Transport and logistics costs

Slight increase

Triggers for positive operational outlook

No further integration costs from Kressner + hefa stores Significant reduction of marketing costs Further top-line potential above market development and efficiency gains

8 ADLER – Q1 2016

ADLER goes 2025: Enhancing profitability in 2016 and beyond

Detailed analysis of cost cutting potentials across all group divisions:

• Quick wins of mid single-digit million range feasible
• Potential for 2017 > € 10 million
• Main drivers: Marketing; CAPEX and technical equipment; procurement processes
• Optimiziation of procurement processes, kicked off in February 2016;

aims to increase gross profit margin by exchanging excel-controlled procurement processes on high level (articlegroups) with SKU-controlled, integrated processes on the level of articles

9 ADLER – Q1 2016

Develop existing customers Gain new customers Drive Multi-channel E-mail marketing Developing new customers Inactive customers Stock potential Digital affinity Focus on foreign brands Strengthening profile In the context of stores Linking the channels Mobile Application Teleshopping Price sensibility Kids as buyer group Strategic area Action fields Modernity Stores Product Customer knowledge in the organization

ADLER goes 2025: Enhancing customer frequency

10 ADLER – Q1 2016

Financial calender & contact details

Adler Modemärkte AG Industriestrasse Ost 1 – 7 63808 Haibach/Germany Phone: +49 6021 633-1828 Fax: +49 6021 633-1417 eMail: InvestorRelations@adler.de Full year results and annual report 2015 Report on the 1st half 2016 17 March 2016 3 May 2016 Reports on the 1st quarter 2016 Report on the first nine months 2016 4 August 2016 3 November 2016 4 May 2016 Annual General Meeting 2016 German Equity Forum 21-22 November 2016 1 June 2016 Capital Markets Day