Belysse Group Nv · EURONEXT:BELYS
Belysse Group Nv — Balta Group — FY2016 and Q1 2017 Earnings Presentation
25 slides from Belysse Group Nv's earnings presentation, May 10, 2017
Slide 1: Financial Performance for the Year Ended December 31, 2016 and Quarter Ended March 31, 2017
LSF9 Balta Issuer S.A. Financial Performance for the Year Ended December 31, 2016 and the Quarter Ended March 31, 2017 Confidential
Slide 2: Disclaimer
Disclaimer This presentation is not being made, and this presentation has not been approved, by an authorised person for the purposes of section 21 of the Financial Services and Markets Act 2000, as amended (the “FSMA”). This presentation is only being distributed to and is only directed at (i) pers
Slide 3: Agenda
Agenda • FY16 Results • Acquisition of Bentley Mills • Q1/17 Results • Q&A 3
Slide 4: Focus on FY16 results
Focus on FY16 results
Slide 5: Highlights and key figures 2016
Highlights and key figures 2016 Strong adjusted EBITDA growth on the back of margin expansion (in €k) Dec 31, 2016 Dec 31, 2015 Revenue 557,685 556,822 Adjusted EBITDA 81,367 75,467 81,367 Adjusted EBITDA margin 14.6% 13.6% 75,467 Non-recurring items (3,518) (33,687) EBITDA 77,849 41,780 65,149 Depr
Slide 6: Consolidated business overview December 31, 2016
Consolidated business overview December 31, 2016 (in €k) Actuals 2016 Actuals 2015 Variance Revenue by geography Rugs 214,545 204,076 5.1% Rest of World 10% North Residential 236,758 247,495 (4.3%) America 13% Commercial 80,050 79,243 1.0% Non-woven 26,332 26,008 1.2% Europe Revenue 557,685 556,822
Slide 7: Rugs
Rugs Both North America and Europe showing strong growth momentum (in €k) 2016 2015 Variance Adjusted EBITDA by segment Non-woven Revenue 214,545 204,076 5.1% Commercial 3% 15% Rugs Adjusted EBITDA 37,969 34,184 11.1% 47% Adjusted EBITDA margin 17.7% 16.8% 95bps Residential 35% • Revenue and volumes
Slide 8: Residential
Residential Performance impacted by GBP devaluation and soft market conditions (in €k) 2016 2015 Variance Adjusted EBITDA by segment Non-woven Revenue 236,758 247,495 (4.3%) Commercial 3% 15% Rugs Adjusted EBITDA 28,411 27,742 2.4% 47% Adjusted EBITDA margin 12.0% 11.2% 79bps Residential 35% • Reven
Slide 9: Commercial
Commercial Focus on tile growth and broadloom profitability (in €k) 2016 2015 Variance Adjusted EBITDA by segment Non-woven Revenue 80,050 79,243 1.0% Commercial 3% 15% Rugs Adjusted EBITDA 12,067 11,194 7.8% 47% Adjusted EBITDA margin 15.1% 14.1% 95bps Residential 35% • Revenue and volumes both inc
Slide 10: Non-Woven
Non-Woven High-margin technical applications driving earnings performance (in €k) 2016 2015 Variance Adjusted EBITDA by segment Non-woven Revenue 26,332 26,008 1.2% Commercial 3% 15% Rugs Adjusted EBITDA 2,920 2,346 24.5% 47% Adjusted EBITDA margin 11.1% 9.0% 207bps Residential 35% • Revenue increas
Slide 11: Balance Sheet and Cash Flow Statement
Balance Sheet and Cash Flow Statement Stable balance sheet Condensed Balance Sheet (€k) 2016 2015 Condensed Cash Flow Statement (€k) 2016 2015 Property, plant and equipment 299,238 299,330 Opening balance 45,462 66,654 Goodwil and other intangible assets 127,049 126,340 Adjusted EBITDA 81,367 75,467
Slide 12: Acquisition of Bentley Mills
Acquisition of Bentley Mills Strong platform for growth in the US A leader in the US premium commercial carpets New growth and efficiency opportunities 2016 Revenue: €110.7m 2016 Adjusted EBITDA: €16.0m 1 2016 Adjusted EBITDA margin: 14.5% Cross-selling opportunities Iconic premium brand World-class
Slide 13: Acquisition impact on business and financials
Acquisition impact on business and financials Creation of a global player with limited impact on leverage More balance in geography, segments, end markets exposure Track record of profitable growth 2016A PF revenue 2016A PF Adj. EBITDA 2016A PF Adj. EBITDA Adj. EBITDA & Adj. EBITDA margin ’14A-’16A
Slide 14: Focus on Q1-17 results
Focus on Q1-17 results
Slide 15: Q1-17 financial performance – key highlights
Q1-17 financial performance – key highlights Strong organic growth yoy with stable margin +6.4% organic - Strong organic growth with negative impact from FX +5.2% - Growth attributable to increasing market share in existing markets, new product (1.2%) FX impact yoy sales growth launches and product
Slide 16: Revenue evolution yoy
Revenue evolution yoy +6.4% organic sales growth yoy on a stand alone basis with double digit organic growth rates in rugs & commercial Revenue evolution (€m) PF revenue evolution per segment Revenue in €m yoy growth (%) 183.2 Q1-17 Q1-16 Organic FX Total Rugs 63.4 54.2 17.2% (0.2%) 17.0% 27.7 Resid
Slide 17: EBITDA evolution yoy
EBITDA evolution yoy +19.5% organic EBITDA growth yoy on a stand alone basis EBITDA evolution (€m) PF Adj. EBITDA evolution per segment In €m yoy growth (%) Q1-17 Q1-16 Organic FX Total Margin (%) 12.9% 12.9% 12.6% Adj. EBITDA 11.2 8.0 39.3% - 39.3% Rugs Margin (%) 17.7% 14.8% + 283bps expansion 23.
Slide 18: Rugs
Rugs Strong growth across all regions o/w organic (in €k) Q1-17 Q1-16 % change growth o/w FX Revenue 63,377 54,188 17.0% 17.2% (0.2%) Adjusted EBITDA 11,188 8,032 39.3% 39.3% - Adjusted EBITDA margin 17.7% 14.8% 2.8% • Strong growth across all regions, driven by a 19% increase in volumes resulting f
Slide 19: Residential
Residential Strong FX headwinds with focus on profitability through product upscaling o/w organic (in €k) Q1-17 Q1-16 % change growth o/w FX Revenue 63,132 66,153 (4.6%) (2.5%) (2.1%) Adjusted EBITDA 5,097 7,466 (31.7%) - (31.7%) Adjusted EBITDA margin 8.1% 11.3% (3.2%) • Our Residential division wi
Slide 20: Commercial
Commercial Strong market growth further stimulated by Balta’s own investments o/w organic (in €k) Q1-17 Q1-16 % change growth o/w FX Revenue 22,147 20,344 8.9% 10.0% (1.1%) Adjusted EBITDA 2,972 2,792 6.4% 18.3% (11.8%) Adjusted EBITDA margin 13.4% 13.7% (0.3%) • Revenue at constant currency in our
Slide 21: Non-Woven
Non-Woven o/w organic (in €k) Q1-17 Q1-16 % change growth o/w FX Revenue 6,877 7,157 (3.9%) (3.9%) - Adjusted EBITDA 850 801 6.1% 6.1% - Adjusted EBITDA margin 12.4% 11.2% 1.2% • Revenue at constant currency in our Non-Woven division decreased by 4%, driven by a slow start in the Automotive segment
Slide 22: Bentley Mills
Bentley Mills Favourable market conditions and successful management growth initiatives o/w organic (in €k) Q1-17 Q1-16 % change growth o/w FX Revenue 27,686 24,429 13.3% 9.5% 3.8% Adjusted EBITDA 2,926 2,330 25.6% 21.9% 3.7% Adjusted EBITDA margin 10.6% 9.5% 1.0% • Bentley sales amounted to €27.7 m
Slide 23: Working capital improvement
Working capital improvement Increased focus on NWC(1) management has resulted in reduced levels vs. both year end and Q1/16 PF NWC €101.3m €(6.4)m 94.8 PF NWC % 15.2% (119)bps 14.0% revenue 17.9% €m 15.0% 14.3% 13.8% 101.2 13.4% 84.7 80.0 77.8 75.9 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 NWC (Balta stand alon
Slide 24: Capital structure evolution
Capital structure evolution 0.3x deleveraging on a standalone basis, slight re-leveraging after Bentley Mills acquisition Current Balta capital structure Dec-16 Mar-17 €m Dec-15 Dec-16 (Pro Forma) (incl. Bentley Mills) Cash (45.5) (46.0) (48.2) (39.7) RCF Bentley and bank overdrafts - - 11.6 10.5 Se
Slide 25: Q&A
Q&A
Balta Group — FY2016 and Q1 2017 Earnings Presentation on 6ix