Belysse Group NV · EURONEXT:BELYS
Belysse Group NV — Balta Group — H1 2018 Earnings Presentation
20 slides from Belysse Group NV's earnings presentation, 2018
Slide 1: Half Year 2018
Half Year 2018 Confidential
Slide 2: Disclaimer
Disclaimer In considering any performance information contained herein, you should bear in mind that past or projected performance is not necessarily indicative of future results, and there can be no assurance that any entity referenced herein will achieve comparable results or that illustrative ret
Slide 3: H1 Financial Headlines
H1 Financial Headlines (8.8%) organic • Rugs organic decline of 16.2%, in-line with guidance, due to partial loss of share of wallet and strong prior year comp of 12.9% growth (3.6%) (2.6%) FX impact • Commercial organic growth of 8.6%, with growth in both US & Europe yoy sales growth (consolidated)
Slide 4: H1 2018 Faced Very Strong Prior Year Comparatives and Expected Headwinds
H1 2018 Faced Very Strong Prior Year Comparatives and the Expected Headwinds from H2 2017 • H1 2018 margins impacted by significant raw material H1 2018 H1 2017 headwinds from 2017 • FX negatively impacted H1 EBITDA by 5.3% (3.6%) +15.1% • Lower volumes with less than proportional reduction in fixed
Slide 5: The Six Key Priorities for 2018
The Six key Priorities for 2018 Grow profitable revenue: Deliver increased level of cost savings: 1. 1 Continue to grow Rugs sales in North 4. 4 Deliver the full benefits of the restructuring of America the operational footprint in Residential • by increasing channel penetration and • complete ahead
Slide 6: We are Restoring US Rugs to Growth
We are Restoring US Rugs to Growth 1 • Strong progress made in winning back US ‘share of wallet’ in H2 – Regained part of the ‘share of wallet’ lost in 2017, which will start to benefit from Q4 2018 – New customer wins, growth in indoor rugs and e-commerce • Broadening channel reach and product offe
Slide 7: Commercial Making Strong Progress on Delivering Profitable Growth
Commercial Making Strong Progress on Delivering Profitable Growth 2 • Europe – Back on track, following start-up issues from the automation of our European tile line, which led to supply restriction in 2017 H2 – New collection launched, well received by customers – 2018 price increase implemented •
Slide 8: Residential Initiatives Benefits Coming Through
3 Residential Initiatives Benefits Coming Through 4 • Reminder: – Absorbed Oudenaarde factory into two existing vertically integrated factories in Belgium – Closed the rented warehouse in Sint-Niklaas, Belgium – Reducing our loss making sales with an SKU reduction programme - 20% less SKUs expected
Slide 9: Delivering Increased Level of Operational Efficiencies and Cost Synergies
Delivering Increased Level of 5 Operational Efficiencies and Cost Synergies 6 • Executing a Larger Operational Excellence Programme – 120+ activities driving operational and cost improvements, offsetting inflation in wages, energy and transport and partly mitigating further raw material price increa
Slide 10: Group H1 Revenue Performance
Group H1 Revenue Performance €m 400.0 (8.8%) (3.6%) 350.0 333.9 (20.5) 6.3 (15.5) 26.2 321.9 0.4 304.5 (8.8) 300.0 (16.2%) +8.6% (12.8%) +2.6% (2.6%) +7.8% 250.0 200.0 150.0 100.0 50.0 0.0 Revenue H1 Rugs Commercial Residential Non- LfL FX impact M&A Reported 2017 Woven revenue revenue H1 2018 H1 20
Slide 11: Group H1 EBITDA and Margins
Group H1 EBITDA and Margins Adj. EBITDA margin (%) €m 50.0 13.9% 11.0% 10.6% 46.5 (9.3) 45.0 40.0 1.0 (4.7) (0.1) 3.2 34.2 35.0 33.4 (2.5) 30.0 (5.3%) +6.9% 25.0 20.0 15.0 10.0 5.0 0.0 EBITDA H1 2017 Rugs Commercial Residential Non- LfL FX impact M&A Reported Woven EBITDA EBITDA H1 2018 H1 2018 Impa
Slide 12: From Adjusted EBITDA to Net Income
From Adjusted EBITDA to Net Income H1 2018 H1 2017 €million Revenues 321.9 333.9 Adjusted EBITDA 34.2 46.5 Depreciation and amortisation (16.2) (15.5) Adjusted Operating Profit 18.0 31.0 Residential operational footprint €1.8m expense in the period. Non-recurring income/expenses (2.4) (2.6) Note: €8
Slide 13: Cash Flow
Cash Flow €million H1 2018 H1 2017 Adjusted EBITDA 34.2 46.5 Non-recurring expenses (net) (2.4) (2.6) Provision for restructuring of Residential business has decreased by Changes in provisions and FV of €3.2m from €7.3m to €4.1m. Together with non-recurring expense for the (3.2) - derivatives period
Slide 14: Leverage of 3.8x (Net Debt of €272.3m) Compared to 2.6x a Year Ago
Leverage of 3.8x (Net Debt of €272.3m) Compared to 2.6x a Year Ago and 3.3x at Q1 2018 Acquisition of Bentley 385 Post deleveraging using primary IPO net proceeds 268 272 264 257 254 3.9x 3.8x 3.3x 2.9x 2.9x 2.6x Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 14
Slide 15: Stable Funding with a Refinancing Opportunity
Stable Funding with a Refinancing Opportunity Current Debt Maturity Profile 15 • Current blended financing cost is c6.9% 250 1 – €234.9m Senior Secured Notes (SSN) at 7.75%, maturing 2022 200 – €35m Senior Term Loan at E+1.4%, maturing 2020 • SSN call option from 15th Sept 2018 with cost of 150 €m r
Slide 16: 2018 Outlook
2018 Outlook • H2 2018 EBITDA still an improvement on H2 2017 EBITDA (€37.8m), weighted to Q4 – Delayed recovery due to soft trading environment in the third quarter mainly in UK Residential and European Rugs – Underpinned by the progress we are making on the six key priorities which will deliver th
Slide 17: Q&A Session
Q&A Session 17
Slide 18: Appendices
Appendices 18
Slide 19: H1 Year Revenue and Adjusted EBITDA by Segment
H1 Year Revenue and Adjusted EBITDA by Segment o/w organic o/w o/w (€ million, unless otherwise stated) H1 2018 H1 2017 % change growth FX M&A Rugs 100.8 126.4 (20.3)% (16.2)% (4.0)% 0.0% Commercial 101.9 72.5 40.6% 8.6% (4.1)% 36.1% Residential 105.1 121.4 (13.4)% (12.8)% (0.6)% 0.0% Non-Woven 14.1
Slide 20: Q2 Revenue and Adjusted EBITDA By Segment
Q2 Revenue and Adjusted EBITDA By Segment o/w organic o/w o/w (€ million, unless otherwise stated) Q2 2018 Q2 2017 % change growth FX M&A Rugs 47.6 63.0 (24.5)% (20.7)% (3.8)% 0.0% Commercial 53.6 50.3 6.6% 12.3% (5.8)% 0.0% Residential 51.5 58.2 (11.6)% (11.1)% (0.5)% 0.0% Non-Woven 6.9 6.8 1.2% 1.