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Full Year 2018 Results Ton Anbeek CEO Ruben Baldew CFO March 8, - PowerPoint PPT Presentation

Full Year 2018 Results Ton Anbeek CEO Ruben Baldew CFO March 8, 2019 Disclaimer This presentation may contain forward-looking statements. These are based on our current plans, expectations and projections about future events. Any


  1. Full Year 2018 Results Ton Anbeek – CEO Ruben Baldew – CFO March 8, 2019

  2. Disclaimer • This presentation may contain forward-looking statements. These are based on our current plans, expectations and projections about future events. • Any forward-looking statement is subject to risks, uncertainties and assumptions and speak only as of the date they are made. Our results could differ materially from those anticipated in any forward-looking statement. • The financial statements and other reported data in this press release have not been audited. 2

  3. Ton Anbeek - CEO

  4. Recap of our Strategy ‘Lead Global. Win Local’ Consumer centric Leading at the point of Lead Global. Win Local Omnichannel purchase Innovation Centralised & integrated Fit to compete P&A business 4

  5. Recap of our Strategy ‘Lead Global. Win Local’ Lead Global. Win Local • Central commercial, supply chain matrix organization structure in place • Key senior management appointed 5

  6. Recap of our Strategy ‘Lead Global. Win Local’ Winning at the Point of Purchase • Regional structure established • Brand positioning sharpened • Strategic brand portfolio rolled out per region • All regions have access to ‘Accell Bike Supermarket’ 6

  7. Recap of our Strategy ‘Lead Global. Win Local’ Consumer centric Omnichannel • Develop digital e-commerce platforms • Experience centers • Mobile bike service 7

  8. Recap of our Strategy ‘Lead Global. Win Local’ Innovation • Starting with consumer insight • Global innovation centers • Smart technology • Focus on e-bike • Innovation in urban mobility enabled by Velosophy (Babboe) 8

  9. Recap of our Strategy ‘Lead Global. Win Local’ Centralised & Integrated P&A Business • Central organisation established • P&A integrated into local sales team • Driving brand XLC 11

  10. Recap of our Strategy ‘Lead Global. Win Local’ Fit to compete • Central procurement team fully in place • Footprint reduction of factories started • 30% complexity reduction model year 2019 • Nearly € 12 million savings delivered in 2018 of which half contributing directly to bottom line 12

  11. Our 2018 progress On track Further improvement needed • Team in place • Innovation delivery delayed • Velosophy and urban mobility options • Renewed IT infrastructure • Centralised P&A business • Competitiveness Netherlands • Contract internet player Netherlands ended X • Central SC delivery (savings & working cap) • US business • Improved added value % • Value growth core business 13

  12. First results of our strategy are coming through EBIT core / Growth core Total TWC YoY Added value % Total Supply Chain EBIT core excl. one-off core vs PY savings € 54 mio appr. -305 bps 6.1% +76 bps € 12 mio € 59 mio 14

  13. Update non core North America 2018 FY results Update on study • Result EUR -21 million EBIT and -36% sales decline • North America 6% of total • EUR 2.5 million corporate allocated charges in North America EBIT - € 21 mio -36% • All options to eliminate profit dilution are explored; sale being net sales EBIT one of the options • Study has started. Outcome will be communicated Q3 2019 latest 15

  14. Strategic objectives and financial long term target Strategic objectives Financial LT targets • • Increasing dealer and consumer satisfaction Turnover €1.4 - € 1.5 bn • • Increasing market share Added value / Turnover 31% • • Increasing net profit EBIT / Turnover 8.0% • • Strong and healthy balance sheet Trade working capital / Turnover < 25% • • Corporate Social Responsibility Return on capital employed > 15% • Increase diversity 16

  15. Ruben Baldew- CFO

  16. H2 Accelerates in net sales growth Growth 2018 Total Core FY +2.4% +6.1% +0.3% +3.2% H1 +5.5% +10.4% H2 18

  17. H2 Accelerates in net sales growth, strong margin progress Growth 2018 Profit 2018 Total Core AV% YoY EBIT (mio) Total +139 bps FY +2.4% +6.1% € 33 mio +0.3% +3.2% € 54 mio H1 Core + 76 bps +5.5% +10.4% - € 21 mio US +328 bps H2 19

  18. Growth on core increasing from 3.2% H1 to 10.4% in H2 Development net sales H1 and H2 H2 H1 598 435 +6.1% 1,033 +3.2% 10 +10.4% 10 580 974 Velo 394 Velo 1,024 425 Excl Acq Excl Acq 2017H1 2018H1 2017H2 2018H2 2017 2018 Excl. Velosophy Excl. Velosophy (Babboe) + 5% (Babboe)+ 8% 20

  19. Historical Growth at 7.5% on Core Core Net Sales 2013-2018 +6.1% 1,033 +7.5% 974 933 853 768 719 2013 2014 2015 2016 2017 2018 21

  20. Performance 2018 bikes DACH Net Sales 2017-2018 “ At home in every family” +11,7% 421 +13,3% 377 +9,2% 269 237 152 140 H1 H2 FY Awarded Best e-MTB Brand 2017 2018 of 2018 • Strong performance both sport brands • Ghost • Haibike Net sales numbers based on geographical location of entity. P&A excluded

  21. Performance bikes Benelux • Winning e-bike of the year with Sparta R5Te and again with M8B Net Sales 2017-2018 • Launching Koga Pace as the -5,3% urban e-bike 217 205 -8,5% +0,1% 136 125 81 81 H1 H2 FY • Introducing selective distribution contracts to 2017 2018 drive a qualitative dealer • network Contract with one internet player ended • Second half stabilized Net sales numbers based on geographical location of entity. P&A excluded. Velosophy excluded 23

  22. Performance 2018 other core bikes Reconnect Raleigh to Net Sales 2017-2018 consumer as UK’s best known, best +3,7% loved bicycle brand 148 143 +11,3% -2,3% 80 78 70 63 H1 H2 FY 2017 2018 Visual 2 Leverage pro-tour partner ship • Lapierre performing strongly in H2 • Raleigh UK stabilized in H2, focusing on key assortment Net sales numbers based on geographical location of entity. P&A excluded. Velosophy excluded. 24

  23. Performance 2018 Velosophy Exponential growth Visual 1 Net Sales 2017-2018 of Babboe in Europe continues 10 10 H1 H2 FY 2017 2018 Further roll out of Visual 2 cargo strategy • 5 months of sales in 2018 • Strong sales in line with expectations 25

  24. Performance 2018 Parts & Accessories Lead and organise centrally to Net Sales 2017-2018 win locally doubling the business in 7 years +4,9% Expand into new channels 249 237 +0,2% +10,3% 126 127 122 111 H1 H2 FY 2017 2018 Grow the XLC brand into a winning international dealer & consumer • More aligned and centralized organization set in H1 preferred brand • Focusing on XLC brand and strong execution Net sales numbers based on geographical location of entity. P&A excluded 26

  25. On core we continue to shift our portfolio to e-bikes and cargo Categories as % value of total core 974 1.033 • Contribution Cargo in H2 was 2% 0% 1% 100% Cargo • Ambition and potential to become 5%+ of portfolio 24% 24% Parts • E-bikes are expected to move above 60% of portfolio 51% E-bikes 55% 24% Trad Bikes 20% 2017 2018 27

  26. Core: AV% up 76 bps and now 70 bps below strategic target Core Added Value% 2013-2018 Strat Target 33.0% 33.0% Actuals 32.5% • 32.0% Main drivers increase AV% 2018 vs 2017: 31.7% 31.6% 31.5% 31.0% +0.8% 31.0% • Supply Chain savings 30.3% 30.5% 30.0% 29.6% • Forex 29.5% 29.0% • Accounting (move to OPEX) 28.5% 1.0% 0.5% 0.0% 2013 2014 2015 2016 2017 2018 28

  27. Core: Opex increase driven by accounting, one off and strategy related costs CORE OPEX 2017- 2018 (in € MIO ) +34 +28 260 4 3 6 12 3 6 232 4 226 1 2017 Accounting Footprint&Restr Strategy Growth & Acq Inefficiencies SU Inflation & Other 2018 29

  28. Core: EBIT% at 5.2% and at 5.7% excl. one-off CORE EBIT % 2013-2018 Strat Target 12% Actuals/Plan 10% 8.0% 7.7% 8% 7.0% 6.4% 5.7% 6% 5.4% 5.2% 4% 2% 0% 2013 2014 2015 2016 2017 2018 2018 excl One Off 30

  29. Full P&L Total Group and Core (Amounts in millions of euro) Accell Group Core H1 2018 H2 2018 FY 2018 FY 2017 H1 2018 H2 2018 FY 2018 FY 2017 Net turnover 635.9 458.4 1,094.3 1,068.5 598.1 435.2 1,033.3 973.7 Net sales growth% (compared to PY) 0.3% 5.5% 2.4% 1.9% 3.2% 10.4% 6.1% 4.3% Added Value 191.6 132.9 324.5 302.0 184.4 129.1 313.5 288.0 Added value% 30.1% 29.0% 29.7% 28.3% 30.8% 29.7% 30.3% 29.6% Added value bps vs py 124 159 139 -177 126 2 76 -142 OPEX -148.9 -142.7 -291.6 -264.0 -133.2 -126.4 -259.6 -225.6 EBIT 42.7 -9.8 33.0 38.0 51.2 2.8 54.0 62.4 EBIT% 6.7% -2.1% 3.0% 3.6% 8.6% 0.6% 5.2% 6.4% Net Finance costs -3.6 -4.0 -7.6 -8.2 Income from equity-accounted investees, net of tax 0.4 10.1 10.5 0.4 Tax Expense -14.0 -1.6 -15.6 -19.7 Net Profit 25.5 -5.2 20.3 10.5 31

  30. Cash, capital and debt on total and core TWC% Core & Total Total Group Return on Capital and Debt TWC% YoY ROCE Net Debt /Ebitda Term Loan/ Ebitda excl. one-off excl. one-off 2.9 X -310 bps Core 2.2 X 6.4% € 152 mio -305 bps Total 2017:1.7X 2017: 2.7 2017: 7.8% 32

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