Half Year 2015 Results Presentation 20 August 2015 Forward looking - PowerPoint PPT Presentation

Half Year 2015 Results Presentation 20 August 2015

Forward looking statements This presentation contains forward-looking statements that reflect GrandVision’s current views with respect to future events and financial and operational performance. These forward-looking statements are based on GrandVision’s beliefs, assumptions and expectations regarding future events and trends that affect GrandVision’s future performance, taking into account all information currently available to GrandVision, and are not guarantees of future performance. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future, and GrandVision cannot guarantee the accuracy and completeness of forward-looking statements. A number of important factors, not all of which are known to GrandVision or are within GrandVision’s control, could cause actual results or outcomes to differ materially from those expressed in any forward- looking statement as a result of risks and uncertainties facing GrandVision. Any forward-looking statements are made only as of the date of this press release, and GrandVision assumes no obligation to publicly update or revise any forward looking statements, whether as a result of new information or for any other reason. 2

Half Year 2015 Highlights  Revenue of €1,611 million Revenue (€ million) 1,611  Growth of 15.5% at constant exchange 1,378 rates and 6.5% organic growth  Comparable growth of 5.2% (HY14: 3.7%) HY14 HY15  5,871 stores as of 30 June 2015  Store network expanded by 57 Stores 5,871 5,814 during HY15  Improved profitability  Adjusted EBITDA 1 up 17.2% to €259 million (HY14: €221 million) FY14 HY15  Organic Adjusted EBITDA +11.6% Adjusted EBITDA margin 16.8%  Adjusted EBITDA margin +4 bps to 16.1% , or +76 bps to 16.8% 16.1% 16.0% excluding acquisitions HY15 HY15 HY14 (excl. acquisitions) 1 Adjusted EBITDA = EBITDA excluding non-recurring items 3

Second Quarter 2015 Highlights  Revenue €827 million 827 Revenue (€ million)  Growth of 15.3% at constant exchange 707 rates and 6.0% organic growth  Comparable growth of 4.8% (2Q14: 2.3%) 2Q14 2Q15  Adjusted EBITDA growth Adjusted EBITDA (€ million) 136  Adjusted EBITDA of €136 million 115 (2Q14: €115 million)  Adjusted EBITDA +18.1%  Organic Adjusted EBITDA +9.6% 2Q14 2Q15  Adjusted EBITDA margin +15 bps to 16.5% Adjusted EBITDA margin 16.5% 16.3% 2Q14 2Q15 4

Comparable growth development  Comparable growth of 4.8% in 2Q15 with sales momentum in all three segments  G4: 4.8%  Other Europe: 4.8%  LatAm & Asia: 5.3%  Comparable growth is impacted by the timing of commercial campaigns and the level of previous years’ comparators 6.1% 5.5% 5.2% 4.8% 4.3% 3.8% 2.3% 1.6% 0.8% FY12 FY13 FY14 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 5

Strategic priorities Strengthen and deploy group’s global capabilities Drive further comparable growth Optimize the existing store network Expand in current markets also through bolt-on acquisitions Enter new markets 6

GrandVision’s Future Global IT Platform Global ERP project  Global ERP project kicked off in 2014  Key building block towards one harmonized global IT platform  Strong business enabler and source of efficiency gains  Empowering a globally integrated and proactive supply chain  Successful go-live in first four countries in June and July 2015  To be fully rolled out across all countries by the end of 2018 Other key building blocks  Fully integrated omnichannel platform for in-store, mobile and online  Global Learning Management System  IT shared service centres 7

Global Store Standardization Objective: Implement harmonized store construction with optimized store design Benefits  Improved in-store functionality and store-level operations  Reduced lead time before new openings or closing days in cases of refurbishment and relocation  Reduced OPEX and CAPEX per store  Flexibility to adapt to local requirements 8

Expansion in Mexico 2010 2012 2013 2014 2015 HY15 Acquisition of Total Total Total Total Introduction Acquisition of Sunglass 155 191 174 208 Opticas Lux of +Vision Island stores stores stores stores Short profitability ramp up cycle through  Global capabilities  Opening process  Store design  Commercial proposition  Assortment  Supply chain  Training  IT  Low capex per store 9

HY15 Segment and Financial Performance

Segment Review: G4 G4 – key figures HY15 2Q15 HY15 Highlights Revenue growth (constant rates) + 8.0% + 6.4%  Revenue growth of 8.0% at constant Revenue growth (organic) + 6.6% + 5.4% exchange rates, with organic revenue Comparable growth + 5.8% + 4.8% growth of 6.6% Adj. EBITDA growth (constant rates) + 12.2% + 9.8% Adj. EBITDA growth (organic) + 11.1% + 8.8%  Comparable growth of 5.8% Adj. EBITDA margin 20.7% 21.0% (HY14: 2.7%)  Total number of stores increased to 2,994 (from 2,979 in December 2014)  Adj. EBITDA +12.2% at constant exchange rates, to €207 million, with organic EBITDA growth of +11.1%  Adj. EBITDA margin improved to 20.7% (HY14: 20.1%) 11

G4 Segment Highlights Execution of successful … resulting in comparable growth commercial campaigns... and EBITDA margin expansion EBITDA margin Comparable growth progression (in bps) +78 6.8% +66 5.8% 4.8% +54 1Q15 2Q15 HY15 1Q15 2Q15 HY15 12

Segment Review: Other Europe Other Europe – key figures HY15 2Q15 HY15 Highlights Revenue growth (constant rates) + 21.5% +22.9%  Revenue growth of 21.5% at constant Revenue growth (organic) + 4.8% +5.9% exchange rates, with organic revenue Comparable growth + 3.2% + 4.8% growth of 4.8% Adj. EBITDA growth (constant rates) + 15.8% + 25.7%  Comparable growth of 3.2% (HY14: 4.7%), Adj. EBITDA growth (organic) + 5.8% + 13.3% Adj. EBITDA margin 14.1% 15.4% accelerating to 4.8% in 2Q15 after a weaker 1Q15  Total number of stores increased to 1,689 (from 1,660 December 2014)  Adj. EBITDA +15.8% at constant exchange rates to €61 million (HY14: €53 million)  Adj. EBITDA margin - 70 bps to 14.1% due to acquisitions  2Q15 adj. EBITDA margin +35 bps to 15.4% 13

Segment Review: Latin America & Asia LatAm & Asia - key figures HY15 2Q15 HY15 Highlights Revenue growth (constant rates) + 55.5% + 62.3%  Revenue growth of >50% at constant Revenue growth (organic) + 11.2% + 10.6% exchange rates, with organic revenue Comparable growth + 7.1% + 5.3% growth of 11.2% Adj. EBITDA growth (constant rates) + 267.5% + 647.3% Adj. EBITDA growth (organic) + 165.5% + 175.0%  Comparable growth of 7.1% (HY14: 8.5%) Adj. EBITDA margin 3.7% 5.0%  Total number of stores increased to 1,188 (1,175 in December 2014)  Adj. EBITDA tripled to €7 million (HY14: €2 million)  Organic adj. EBITDA growth of 165.5%  Adj. EBITDA margin +208 bps to 3.7% (HY14: 1.6%) 14

EBITDA margin development in LatAm & Asia LatAm & Asia EBITDA margin progression being achieved through:  Increasing scale of the business through continued expansion  Successful integration of newly acquired businesses in China, Colombia, Peru and Turkey  Optimization of store network, especially Brazil  Implementation of global capabilities (procurement, supply chain, etc.) EBITDA margin dilution 5.0% following acquisitions in China, Colombia, Peru 3.8% and Turkey 2.3% 2.3% 2.1% 1.9% 1.1% 1.0% FY11 FY12 FY13 FY14 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 -1.6% -2.3% 15

Adjusted EBITDA and margin development 449 400 16.8% 372 (excl. 348 acquisitions) 259 16.1% 16.0% 15.3% 14.8% 14.5% 2011 2012 2013 2014 HY15 Adjusted EBITDA (€ million) Adjusted EBITDA margin (%) 16

Cash Flow generation 380 333 322 3.1x 253 2.7x 222 220 208 188 2.1x 2.1x 124 119 1.8x 2011 2012 2013 2014 HY15 Net cash from operating activities (€mm); Free Cash Flow (€mm) Net debt / Adj. EBITDA 1 Net cash from operating activities / EBITDA and Free cash flow / EBITDA 2 Net debt/EBITDA ratio impacted by late in year acquisitions 17

Medium term financial objectives and dividend policy  Annual revenue growth rate >5% at constant exchange rates Medium term  Average annual EBITDA growth in high single digits financial objectives  Net debt / EBITDA ratio of max. 2.0x  GrandVision's Supervisory Board has approved an interim dividend of 0.14 EUR per share. The shares will trade ex-coupon as of 3 September 2015 and dividends will be payable as from 8 September 2015. The record date will be 4 September 2015  Remainder over 2015 determined at 2016 AGM and paid in May 2016 Dividend policy  After 2016, intention to pay ordinary dividend in line with medium to long term financial performance  Target to increase dividend per share over time  Ordinary dividend payout ratio 25-50% 18

Questions and Answers 19

Annex