Analyst Presentation First Quarter Results 2016 3 May 2016 ADLER – Q1 2016 1
Coincidence of various factors hampers sales development Revenue in m € -8.5% Sluggish sales development due to very unfortunate weather conditions (mild winter / cold spring) Early Easter holiday resulted in losing a day 115.1 105.3 of 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% 2015 2016 ADLER – Q1 2016 2
Gross profit margin slightly down in m € Q1-2015 Q1-2016 Gross profit: -11.2% 56.9 50.5 Cost of materials: 58.2 54.9 -5.7% Margin 49.5% 47.9% ADLER – Q1 2016 3
Decrease in EBITDA lower than in gross profit thanks to successful cost saving measures EBITDA in m € Q1-2015 Q1-2016 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 -13 programmes -16.6 -27.7% ADLER – Q1 2016 4
Seasonal effects lead to reduction of cash in m € 24.9 4.9 1.2 52.1 40.9 Decline in cash and cash equivalents due to: lower revenues, the typical seasonal cash reduction and 21.1 the consolidated net loss of € -15,0 million Cash Cash Operating CF from CF from Cash 31/3/2015 01/01/2016 CF Investing Financing 31/3/2016 Net debt* Net debt impacted by: in m € 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 57.0 Rise in liabilities from customer card by € 0.6 million 34.0 Reduction of pension provisions by € 1.3 million 31/03/2015 31/03/2016 * Including liabilities from customer card, pension provisions, finance lease liabilities ex assets held for sale, cash, other financial liabilities ADLER – Q1 2016 5
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 ADLER – Q1 2016 6
Ongoing optimism for 2016: Forecast confirmed Sales Low single digit Gross profit margin Slight increase Personnel expenses Slight increase Transport and logistics costs Slight increase EBITDA Upper single digit 5 – 10 new stores Expansion Additional store closures Triggers for positive operational outlook Further top-line potential No further integration costs from Significant reduction of above market development Kressner + hefa stores marketing costs and efficiency gains ADLER – Q1 2016 7
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 ADLER – Q1 2016 8
ADLER goes 2025: Enhancing customer frequency Strategic area Action fields In the context of Digital affinity stores Gain new customers Focus on foreign Strengthening brands profile Developing new Stock potential Inactive customers customers Develop existing customers Modernity Kids as buyer group Price sensibility Linking the channels Teleshopping Drive Multi-channel Mobile Application E-mail marketing Product Customer knowledge in the organization Stores ADLER – Q1 2016 9
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 17 March 2016 Reports on the 1st quarter 2016 3 May 2016 Annual General Meeting 2016 4 May 2016 Capital Markets Day 1 June 2016 Report on the 1st half 2016 4 August 2016 Report on the first nine months 2016 3 November 2016 German Equity Forum 21-22 November 2016 ADLER – Q1 2016 10
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