Download Presentation half-year Figures 2008

MACINTOSH RETAIL GROUP NV
Half-Year Figures 2008
“Difficult retail market causes lower
results”
Should different interpretations arise between the Dutch and
English version of this presentation, the Dutch version prevails
Analyst- and Press conference Augustus 28, 2008
Frank De Moor (CEO)
Profile Macintosh Retail Group
Market developments H1 2008
Developments per sector/shop formats
Theo Strijbos (CFO)
Income statement
Balance sheet items
Cash flow/capex
Frank De Moor
Outlook 2008
-2-
Profile
Retail is our business
-
- Available non-food retail knowledge makes
for satisfied customers;
- Excellent store locations;
- High quality back-office facilities and
systems lead to cost leadership;
- Direct sourcing/purchasing in East Asia
through Macintosh Hong Kong;
- Competence Centers.
Non-food retailer in NL, B and Fr and UK;
Living, Fashion, Automotive & Telecom;
1,300 shops; retail floor space of 710,000 m²;
Store formats with leading market positions
in NL targeting a broad range of consumers;
- 200 million visitors annually;
- Consumer sales: € 1.4 billion (70% NL);
- Strong balance sheet.
Objectives / Strategy
- Growth, maintaining and increasing of
existing activities;
- ROCE > 12%;
- Well balanced mix of activities with growth
potential and cash flow generators;
- Substantial acquisitions of structurally
profitable, price-based formats in home
decoration and shoe sectors.
Sound basis for growth
of earnings per share
and dividend
-3-
Market developments
25
•
15
Index
5
-5
-15
-25
-35
jan-07
jul-07
Consumer confidence NL
•
•
Willingness to buy NL
jan-08
Consumer confidence B
Consumer confidence Fr
jul-08
Consumer confidence UK
Economic developments resulted in a significant fall in consumer confidence and willingness to buy.
Non-food retail market NL: + 0.9%. Negative development in several markets relevant to Macintosh:
- NL home decoration: + 0.9% (CBS). CBW: entire living market: – 2.5%.
- shoes NL: + 2.8% (GfK); - 6.4% (VGS).
- post-paid telecom: - 3% in numbers and - 13% in value (GfK).
-4-
Living
Profile
• Kwantum: Largest home decoration discounter
in Bnlx.
• GP Décors: Home decoration specialist in Fr.
m2
Number of shops
Kwantum NL
93
(+3)
215,700
Kwantum B
8
(=)
8,300
GP Décors Fr
46
(-5)
42,900
x € mln
Living H1 2008
• Higher turnover thanks to Kwantum.
• Increase EBIT by more than 30%.
Turnover
EBIT
EBIT-margin
2008
2007
132.7
9.2
6.9%
130.9
7.0
5.4%
-5-
Living H1 2008
Market
• NL home decoration market: + 0.9% (CBS). CBW: total living market: - 2.5%.
Kwantum
• Higher turnover in NL due to organic growth and expansion with 3 shops. Increase of
market share. In B, Kwantum recorded a rise in turnover with the same number of shops.
• Higher gross margin in % of turnover results in substantially higher EBIT.
• New 1,000 m² format in B offers potential, also in NL.
GP Décors
• Lower turnover also because of 5 closures.
• EBIT lower.
-6-
Fashion
Profile
• Brantano: largest shoe retailer in B and largest
out of town shoe retailer in UK.
• Hoogenbosch: largest shoe retailer in NL in
mid and upper segments.
• Scapino: largest shoe discounter in NL.
m2
Number of shops
Number of shops
m2
Brantano B/L
Brantano UK
132
148
(+3)
(+2)
95,300
79,200
Dolcis NL
Manfield NL
98
66
(+1)
(+3)
13,700
7,300
Scapino NL/G
Scapino B
192
31
(+2)
(=)
156,100
24,400
Invito NL
Pro Sport NL
41
30
(+2)
(+2)
3,500
2,100
Fashion H1 2008
• Rise in turnover due to acquisition Brantano.
• Lower EBIT, mainly due to negative EBIT
Brantano (effects of reorganisation /
integration) and decrease at Scapino.
x € mln
Turnover
EBIT
EBIT-margin
2008
2007
288.7
4.0
1.4%
162.1
13.3
8.2%
-7-
Fashion H1 2008
Market
•
Shoe market negatively influenced by unfavourably mild winter and chilly spring.
•
NL: GfK: + 2.8%; VGS: - 6.4%.
Brantano
•
Turnover: € 134.2 mln. Negative effect of deferred start clearance sales in B and lower exchange rate British
pound.
•
Integration / reorganisation ahead on schedule. Annual savings of more than € 2 mln as from 2009.
•
Mainly because of direct and indirect costs of reorganisation/integration of some € 3 mln, EBIT in H1 negative.
•
Also integration costs in H2.
Scapino
•
Lower turnover than in excellent H1 2007.
•
Lower EBIT due to effects on gross margin as a result of clearance sales, costs of expansion and higher running
costs of shops.
Hoogenbosch
•
Slightly lower turnover than in successful H1 2007.
•
Slight decrease in EBIT due to higher operation costs of shops.
-8-
Automotive & Telecom
Profile
• BelCompany: Market leader in mobile telecom
in NL. Second independent telecom retailer in B.
• Halfords: Largest retailer in NL for bicycles,
bicycle and car accessories, car audio and
navigation.
Number of shops
m2
BelCompany NL
172
(+9)
10,700
BelCompany B
69
(+9)
3,600
Halfords NL
150
(+2)
40,900
Halfords B
9
(=)
2,700
Automotive & Telecom H1 2008
• Lower turnover due to pressure on markets.
• EBIT down because of decrease at BelCompany
and Halfords.
x € mln
2008
2007
Turnover
140.9
156.9
EBIT
EBIT-margin
3.4
7.4
2.4%
4.7%
-9-
Automotive & Telecom H1 2008
Market
• NL: Number of new subscription-based connections down with 3% and value down with
13% (GfK). More shops and further increase in internet sales.
B: Number of phones sold down 16.5% (GfK).
• NL: Navigation: - 8% in value and + 26.6% in numbers. Bicycles: - 0.8%;
audio: - 4.9% (GfK).
BelCompany NL
• Substantially lower turnover.
• Lower EBIT due to expansion costs and autonomous cost increases.
BelCompany B
• Lower turnover.
• Adverse effect on EBIT.
Halfords
• Lower turnover due to levelling effects navigation market.
• Lower EBIT.
-10-
Income statement
(x € mln)
2008
2007
Turnover
562.3
449.9
Gross margin
255.2
(45.4%)
190.3
(42.3%)
Costs
- 240.8
(-42.8%)
- 165.6
(-36.8%)
EBIT
14.4
(2.6%)
24.7
(5.5%)
Financial income and
expense
- 6.8
Taxes
- 2.4
Net profit on continuing
operations
5.2
17.0
Net profit discontinued
operations
0
7.6
Net profit
5.2
24.6
- 2.2
(31.6%)
- 5.5
(24.5%)
-11-
Balance sheet items
(x € mln)
30.06.2008
31.12.2007
30.06.2007
345.3
195.1
196.1
Non current assets
Current assets:
- Inventories
- Other
226.8
91.0
159.0
49.1
162.9
49.4
317.8
208.1
212.3
663.1
403.2
408.4
Shareholders' equity
184.5
198.7
169.4
Non-current liabilities
294.1
102.3
115.9
Current liabilities
184.5
102.2
123.1
663.1
403.2
408.4
293.0
90.9
118.2
Interest bearing debt
-12-
Cash flow / Capex
(x € mln)
-
2008
2007
Net profit 1.
Depreciation and amortisation
Cash flow 1.
5.2
15.4
20.6
17.0
10.0
27.0
EBITDA
29.8
34.7
Capex
Of which in:
- New/existing shops
Information systems/logistics
17.1
12.4
14.4
2.0
9.7
2.0
1. on continuing operations
-13-
Outlook 2008
• Partly based on development of turnover at Macintosh in July /
August, continuing pressure expected on consumer spending in
relevant markets in H2 2008, in Fashion and Telecom in
particular.
• Investments will be assessed even more on direct return.
• EBIT in H2 2008 may be lower than in H2 2007 (€ 42.2 mln).
Therefore and given the slowdown in H1 2008, EBIT for full year
2008 will be lower than in 2007 (€ 66.9 mln).
• Partly due to financing costs acquisition Brantano, net profit on
continuing operations will be substantially lower than in record
year 2007 (€ 47.5 mln).
-14-