FY 2015 RESULTS PRESENTATION February 26, 2016 FY2015 RESULTS - - PowerPoint PPT Presentation

FY 2015 RESULTS PRESENTATION

February 26, 2016

FY2015 RESULTS PRESENTATION

DOS – FW15 LFL AND CURRENT TRADING

3

7% 7% 17% 17% Sligh ghtl tly pos positi tive 8% 8% 0% 3% 6% 9% 12% 15% 18%

LFL LFL PE PERF RFORMANCE 4Q 4Q 20 2015 15, JANUARY, FEBRUARY (WEEK 1 1 - 7, 7, 20 2016 16) September October November and December January and February (w1-w7)

• 4Q: DOS LFL has been solid

+4.8% …

• … however below expectation

(4Q budget: +9.5%) and materially impacted by two non company specific issues:



the tragic events in Paris



record warm weather in EU

• Current trading (January and

February, w1-w7) is up 8.1% (vs 5.9% LY)

SOLID GROWTH TH IN LFL LFL

EBITDA 2015: ACTUAL VS BUSINESS PLAN

4

2015 B. PLAN 2015 ACTUAL

(+)

Strong

• verperformance
• f all business

KPI’s compared to Business Plan assumptions in core products and markets

(-)

Non company specific issues:

• Early termination
• f the China

Distribution agreement (-9m)

• macroeconomic

turmoil in HK, Ucraine, MEA

(-)

LFL DOS 4Q: +4.8% vs +9.5% budget Eur Euro 68 68/70m 62 62m ACTU TUAL

€.million, for illustrative purpose

FY 2015 KEY FACTS

5

• Sales: Euro 874.3 million +6.1% (+3.9% constant FX)
• Directly Operated Stores Same Store Sales: +4.2% (vs +7.9% in FY14);
• EBITDA: Euro 61.8 million +45.0% (Euro 42.6 million in FY14)
• EBIT: Euro 24.9 million +409.0% (Euro 4.9 million in FY14)
• Net Result: Euro 10.0 million (Euro -2.9 million in FY14)
• Net Cash: Euro +20.8 million (Euro -13.0 million Net Debt as of FY14)
• Geox board proposed an annual dividend of Euro 0.06 per share

GROSS SS MARGIN NE NET T SALES

FY 2015 KEY FACTS

6

• Sales: Euro 874.3 million +6.1% (+3.9% constant FX)
• Sales 4Q15: +6.1% (+4.1% constant FX)
• 120 million increase over the 2014-2015 period, +7.7% CAGR

754 754 824 824 874 874 2013 2014 2015 351 351 404 404 451 451 46.6% 49.0% 51.6% 2013 2014 2015 +6% +9% +12% +15%

• Gross Margin: 260 bps increase in 2015, driven by a favourable

full price performance, lower promotional sales, cogs reduction and channel mix effect (just 30bps)

• 500 bps increase over the 2014 – 2015 period

HE HEALTH THY GROWTH IN NE NET T SA SALES GROSS SS MARGIN EXP EXPANSI SION DELIVERED

EB EBITD TDA EB EBIT

STEADY Y EN ENHANCEMENT OF NET CAS ASH PO POSITION ON (DE DEBT)

PO POSI SITI TIVE OPE PERATI TING LE LEVERAGE

FY 2015 KEY FACTS

7

• 16 (*)

*) 5 25 25 2013 2014 2015 11 11 43 43 62 62 2013 2014 2015 +45% +299% +409% * EBIT Adj.

• 28

28

• 13

13 21 21 2013 2014 2015 +34M

• 50% of the gross margin increase turned

into greater operating profitability

• Strong cash flow generation transformed

the net financial position into positive net cash

NET SALES BY CHANNEL

8

Franchising 16% [18%*] DOS 43% [42%*] Wholesale 41% [40%*]

330 149 346 824 354 354 142 142

378 378 874 874 Wholesale Franch chising DOS Tota tale +7 +7.2% +4.1% c.fx

• 4.4%
• 3.6% c.fx

+9.5% +6.9% c.fx +6.1% +3.9% c.fx

• Fr

Franchisi sing: -4.4% due to space effect partially offset by LFL LFL of

• f + 3.9% (vs 5.6% in FY14)
• DOS: +9.5% due to space growth and to a LF

LFL of

• f +4.2% (vs +7.9% in FY14); LFL Fa

Fall ll/Winter 201 015 seas ason (from week 35 to week 52) +5.4%

€.million [* FY14]

GEOX SHOPS NETWORK

9

Dec December 31 31, , 20 2015 15 Dec December 31 31, , 20 2014 14 FY201 FY2015 Geox

• f
• f whi

hich Geox

• f
• f whi

hich Net Sho Shops DO DOS Sho Shops DO DOS Ope penings gs Ope penings gs Clo losi sings Italy 360 131 421 173 (61)** 11 (72)** Europe 348 179 350 167 (2) 22 (24) North America 47 47 44 44 3 7 (4) Rest of World * 406 119 410 93 (4) 81 (85) Tot

• tal Geox Sho

Shop 1,16 1,161 476 476 1,22 1,225 477 477 (64 (64) 121 121 (18 (185) 5) * includes Under Distribution Agreement Shops (142 as of December 2015) which are shops opened under license by partners in the Middle East and in the Far East. ** includes 41 small total look concession that have been closed due to the dismissal of total look apparel

NET SALES BY PRODUCT

10

Apparel 10% [12%*] Footwear 90% [88%*] €.million [* FY14]

722 103 824 785 785 89 89 874 874 Footwear Apparel Total +8.8% +6.3% c.fx

• 12.9%
• 13.0% c.fx

+6.1% +3.9% c.fx

• The strong performance of Footwear (+63 million) has offset the decrease of 14 million of Apparel due to the

discontinued categories

• However the LFL performance of the ne

new FW FW15 15 Ap Apparel col

• llection in the DOS channel is +

+ 14 14% (w35-w52)

NET SALES BY REGION

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NA 7% [7%] Europe 43% [44%*]

273 359 56 137 824 281 376 63 63 155 874 874

Italy Europe Nord America RoW Total

+3.1% +4 +4.6% +4.0% c.fx +13.1% +5.8% c.fx

• Healthy growth spread all over the regions
• Row: the strong performance of the Row have more than offset the slowdown experienced by China, HK, Ucraine and
• Greece. Ex

Excl cluding these cou

• untries the Row was

as up up 17 17.7% .7% c. c.fx fx

Italy 32% [33%*] Row 18% [17%]

+1 +13.1% +2.8% c.fx +6.1% +3.9% c.fx

€.million [* FY14]

SUMMARY INCOME STATEMENT

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(Euro.m) 2015 2015 % 2014 2014 % D % % Net Net Sale les 87 874.3 4.3 100% 100% 82 824.2 4.2 100% 100% 6. 6.1% 1% Cost of sales (423.5) (48.4%) (420.4) (51.0%) Gros

• ss Prof
• fit

it 45 450.8 0.8 51 51.6% 40 403.8 3.8 49 49.0% 11 11.6% Selling & Distribution (49.4) (5.6%) (48.5) (5.9%) G&A (334.2) (38.2%) (308.3) (37.4%) A&P (42.3) (4.8%) (42.1) (5.1%) EB EBIT 24 24.9 2. 2.8% 8% 4. 4.9 0. 0.6% 6% 40 409.0 9.0% Net Interest (5.8) (0.7%) (6.3) (0.8%) EB EBT 19 19.1 2. 2.2% 2% (1.4 1.4) (0.2 0.2%) Income Taxes adj* (7.1) (0.8%) (1.5) (0.2%) Tax rate adj* 37.4%* (104%) NE NET T INC NCOME adj dj 12 12.0 1. 1.4% 4% (2.9 2.9) (0.4 0.4%) Tax assets adj* (1.9) (0.2%) NE NET INC NCOME 10 10.0 1. 1.1% 1% (2.9 2.9) (0.4 0.4%) EB EBITD TDA 61 61.8 7. 7.1% 1% 42 42.6 5. 5.2% 2% 45 45.0%

* Italian Law no. 208 dated 28/12/2015 (the so-called ‘2016 Stability Law’) introduced a reduction in the IRES (Italian Corporate Income Tax) rate from 27.5% to 24%, valid from the 2017 tax year onwards. This positive reduction in future tax rate however implied an adverse non cash non recurring impact in 2015 taxes (Euro 1,947 thousand) due to the consequent adjustment to the 2015 deferred tax assets made in order to decrease the reversal effect from 2017 onwards from 27.5% to 24%. Without this effect, the tax rate for the year would have been 37.4%.

SUMMARY BALANCE SHEET

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(Euro.m) Dec Dec, 20 2015 15 Dec Dec, 20 2014 14 D Intangible Assets 57.8 60.1 (2.4) Tangible Assets 68.4 64.5 3.9 Other Fixed Assets, net 51.7 54.8 (3.1) Tot

• tal Fix

Fixed Ass Assets 17 177.8 7.8 17 179.4 9.4 (1.6) (1.6) Operating Working Capital 193.8 226.7 (32.9) Other current assets (liabilities), net (13.6) (10.6) (3.0) Invested Cap Capital 357.9 .9 395.5 .5 (3 (37.5 .5) Net Financial Position (Cash) (20.8) 13.0 (33.8) Staff Severance and Risk Fund 7.9 8.8 (1.0) Shareholders’ Equity 370.9 373.7 (2.8) Invested Cap apital 35 357.9 7.9 39 395.5 5.5 (37 (37.5 .5)

OPERATING WORKING CAPITAL

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(Euro.m) De Dec, 20 2015 15 De Dec, 20 2014 14 D D % Inventories 304.8 287.7 17.1 5.9% Account receivables 113.0 106.5 6.5 6.1% Account payables (224.0) (167.6) (56.4) 33.7% Ope peratin ing Wor

• rki

king Cap apit ital 19 193. 3.8 22 226. 6.7 (32 32.9) (14 14.5%) Sales 874.3 824.2 50.1 6.1% % % on

• n sa

sale les 22 22.2% 27 27.5% % on sales 24.5% 23.8% 28.3% 27.5% 22.2%

218 218 192 192 214 214 227 227 194 194 2011 2012 2013 2014 2015

STR TRONG PE PERF RFORMANCE OF NW NWC

• The operating working capital as a

percentage on sales decreased to 22.2%

• The strong improvement in net

working capital is due to the process undertaken to strengthen long term partnerships with suppliers, allowing for the optimization of payments

• The increase of inventories is mainly

due to 2016 Spring Summer products

• The increase in account receivables is

in line with wholesale and franchising sales growth

FRE REE CASH SH FLOW NE NET T CAPITAL EX EXPENDITU TURES OPE PERA RATI TING CASH SHFLOW

FINANCIAL HIGHLIGHTS

15

39 39 33 33 38 38 2013 2014 2015

• 22

22 11 11 85 85 2013 2014 2015

• 61

61

• 22

22 47 47 2013 2014 2015 +69M

STR TRONG CASH SH FLOW GENERATI TION

• 38 million CAPEX fully covered

by operating cash flow

• Strong cash flow generation

turned net financial position into cash

SUMMARY CASH FLOW STATEMENT

16

(Euro.m) 2015 2015 2014 2014 D Net res esult 10 10.0 .0 (2.9) (2.9) 12 12.9 .9 Depreciation & Amortization 36.9 37.8 (0.8) Other Non-Cash Items (9.0) (1.5) (7.6) Fun Funds fr from Operations 37 37.9 .9 33 33.3 .3 4.6 4.6 Change in Operating Working Capital 43.3 (15.4) 58.7 Change in Other Current Assets, net 3.6 (6.8) 10.4 Ope perating Cas ash Flo Flow 84 84.8 .8 11 11.0 .0 73 73.7 .7 Capital Expenditures (39.2) (35.8) (3.5) Disposals 1.1 2.9 (1.8) Cap apital exp xpenditures, s, Net (38 (38.1 .1) (32 (32.8 .8) (5.3) (5.3) Fr Free Cas ash Flo Flow 46 46.6 .6 (21 (21.8 .8) 68 68.4 .4 Dividends 0.0 0.0 0.0 Cha hange in in Net Fin Financial al Posi

• sition

46 46.6 .6 (21 (21.8 .8) 68 68.4 .4 Net Fin Financial Posit

• sition pr

prior to to fair air val alue adj adj, be

• beg. of
• f the pe

period (41 (41.0 .0) (18 (18.3 .3) (22 (22.7 .7) Changes in Net Financial Position 46.6 (21.8) 68.4 Effect of translation differences (1.4) (0.9) (0.5) Net Fin Financial Posit

• sition pr

prior to to fair air val alue adj, adj, en end of

• f the pe

period 4.2 4.2 (41 (41.0 .0) 45 45.2 .2 Fair value adjustment of derivative contracts 16.6 28.0 (11.5) Net Fin Financial Posit

• sition

20 20.8 .8 (13 (13.0 .0) 33 33.8 .8

2014-2015 CUMULATED RESULTS

17

2014 2014 2015 2015 TOTAL

• Wholesale growth

+2,0% +7,2% +9,4%

• L4L DOS growth

+7,8% +4,2% +12 12,3%

• Franchising L4L performance

+5,7% +3,9% +9,8%

• Gross Margin expansion

+240 240bp bps +260 260bp bps +500 500bp bps

• Back to profitability



• Efficiency in working capital management 
• 100 mln operating cash flow



• 75 mln capex fully paid



• Back to positive net financial position



• Increase in share price



• Reinstituting annual dividends



TURNAROUND ACC CCOMPLIS ISHED