Belysse Group Nv · EURONEXT:BELYS
Belysse Group Nv — Balta Group — FY2018 Earnings Presentation
22 slides from Belysse Group Nv's earnings presentation, 2019
Slide 1: FY 2018
FY 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: Introduction
Introduction Cyrille Ragoucy Tom Gysens Interim CEO, Chairman of the Board CFO • FY 2018 headlines • Financial Review • Update on key initiatives • Outlook 3
Slide 4: Full Year 2018 Financial Summary
Full Year 2018 Financial Summary (5.0%) organic • FY 2018 Consolidated Revenue of €646.2m (2.3%) (1.3%) FX impact yoy sales growth • Organic decline in Rugs and Residential, offset by solid performance in (consolidated) Commercial +4.0% M&A(1) (17.8%) organic • FY 2018 Consolidated Adjusted EBITDA o
Slide 5: Recap of the 2018 Six Key Initiatives
Recap of the 2018 Six Key Initiatives Grow profitable revenue: Deliver increased 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 of
Slide 6: NEXT: Three Year Earnings Enhancement Program
NEXT: Three Year Earnings Enhancement Program Various growth & cost saving initiatives identified under Strategic and Operational review 1 • Channel: e-commerce opportunity US & Europe Rugs • Product offering: continued optimization Delivering • US: market share office segment, increased efforts Sus
Slide 7: NEXT: Delivering Sustainable Growth - Rugs
NEXT: Delivering Sustainable Growth - Rugs 1 E-commerce Opportunity • Established expert team mid 2018 in US • Setting up e-commerce supply chain capabilities • Dedicated new e-commerce warehouse in Savannah, Georgia • Invested in digital content • Similar approach for Europe Product Offering • Cont
Slide 8: NEXT: Delivering Sustainable Growth - Commercial
NEXT: Delivering Sustainable Growth - Commercial 1 US • Expand sales team • Accelerating efforts in adjacent segments • Pursue LVT opportunity Europe • Grow in the specified channel with a focus on the UK, Benelux, France and Germany • Adding showrooms in key locations 8
Slide 9: NEXT: Delivering Sustainable Growth - Residential
NEXT: Delivering Sustainable Growth - Residential 1 UK Market • Recent market decline spurred by Brexit uncertainty • Short-term decline vs. long-term potential • Expect normalization in mid-term Ongoing Actions • Improve our cost efficiency & service levels • Additional number of new collections la
Slide 10: NEXT: Commercial Excellence & Cost Competitiveness
NEXT: Commercial Excellence & Cost Competitiveness 2 3 Improving Commercial Excellence • Launched a Commercial Action Room • Increased focus on Key Account Management • Cost and value-based pricing • Shift to higher margin product Increasing Cost Competitiveness • Performed an in-depth review • Lean
Slide 11: NEXT: Three Year Earnings Enhancement Program
NEXT: Three Year Earnings Enhancement Program Various growth & cost saving initiatives identified under Strategic and Operational review 1 • Channel: e-commerce opportunity US & Europe Rugs • Product offering: continued optimization Delivering • US: market share office segment, increased efforts Sus
Slide 12: Group FY 2018 Revenue Performance
Group FY 2018 Revenue Performance €m 700.0 (5.0%) (2.3%) 661.3 (23.8) 18.5 (27.9) 26.2 646.2 0.3 628.3 (8.3) (10.4%) +10.8% (11.9%) +1.0% (1.3%) +4.0% 600.0 500.0 Revenue 2017 Rugs Commercial Residential Non- FX impact M&A Revenue Woven 2018 Rugs: challenging market Europe + impact US share of walle
Slide 13: Group FY 2018 Adjusted EBITDA and Margins
Group FY 2018 Adjusted EBITDA and Margins Adj. EBITDA margin (%) 12.8% 11.0% 11.2% €m 90.0 84.4 (11.4) 85.0 80.0 3.8 (7.2) 75.0 3.2 72.4 (0.3) 69.3 (0.2) 70.0 (0.3%) +3.8% 65.0 60.0 55.0 50.0 Adj. EBITDA Rugs Commercial Residential Non- FX impact M&A Adj. EBITDA 2017 Woven 2018 Impact from lower vol
Slide 14: Group Q4 2018 Revenue Performance
Group Q4 2018 Revenue Performance €m 180.0 4.7 (5.2) +1.7% +2.3% 3.6 1.0 0.0 173.3 (0.2) 172.3 169.5 170.0 +7.0% +8.9% (8.8%) (3.1%) +0.6% 160.0 150.0 140.0 Revenue Q4 Rugs Commercial Residential Non- FX impact M&A Revenue 2017 Woven Q4 2018 Rugs US benefiting 2019 outdoor season shipments Residenti
Slide 15: Group Q4 2018 Adjusted EBITDA and Margins
Group Q4 2018 Adjusted EBITDA and Margins Adj. EBITDA margin (%) 11.2% 11.5% 12.2% €m 25.0 1.9 (1.2) 1.3 0.0 21.1 (0.3) 19.8 20.0 0.5 18.9 +6.9% 15.0 10.0 Adj. EBITDA Q4 Rugs Commercial Residential Non- FX impact M&A Adj. EBITDA 2017 Woven Q4 2018 Positive impact from increased top-line in Rugs and
Slide 16: From Adjusted EBITDA to Net Income
From Adjusted EBITDA to Net Income 2018 2017 €million Revenues 646.2 661.3 Adjusted EBITDA 72.4 84.4 Depreciation and amortisation (32.4) (32.5) Adjusted Operating Profit 39.9 51.9 Impact Purchase Price - (2.9) Accounting €4.2m Residential restructuring expense, remainder driven by change in executi
Slide 17: Cash Flow
Cash Flow €million 2018 2017 Adjusted EBITDA 72.4 84.4 Non-recurring expenses (net) (7.7) (11.4) c.€10 million cash out in relation to Residential operational footprint Changes in provisions and FV of (6.2) 7.3 reorganization in 2018 derivatives Cash generated before changes 58.5 80.3 in working cap
Slide 18: Leverage 3.6x (Net Debt of €261.8m) Reflecting Lower LTM EBITDA
Leverage 3.6x (Net Debt of €261.8m) Reflecting Lower LTM EBITDA Acquisition of Bentley 385 Post deleveraging using primary IPO net proceeds 272 277 268 264 257 262 254 3.9x 3.9x 3.8x 3.6x 3.3x 2.9x 2.9x 2.6x Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 18
Slide 19: Our debt maturity profile provides long term stability
Our debt maturity profile provides long term stability Debt Maturity Profile 300 250 15.0 1.1 200 €m 150 234.9 100 50 1.1 68.0 35.0 9.6 0 1.1 1.1 2019 2020 2021 2022 2022+ Senior Secured Notes Senior Term Loan Financial Leasing RCF Commitment Bentley RCF Commitment(*) 19
Slide 20: Outlook
Outlook Excluding the impact of IFRS16 • Expect Adjusted EBITDA broadly flat versus the prior year • Capex around €40m • Interest flat versus the prior year • Effective Tax Rate between 25 – 27% 20
Slide 21: Q&A Session
Q&A Session 21
Slide 22: Appendix - Impact of IFRS16
Appendix - Impact of IFRS16 • IFRS16 applicable since 1 January 2019 • Leases are recognized as asset financed by a financial liability • Preliminary estimated impact Balta 2019: • Net debt +€45m • Adjusted EBITDA + €6m to €8m • Based on 2018, leverage + 0.2x to 0.3x 22