1 q15 arezzo_apresentacao_call ing v2
- 1. | Apresentação do Roadshow 1 Conference Call 1Q15
- 2. Important Disclaimer Information contained in this document may include forward-looking statements and reflect Management’s current view and estimates of the evolution of the macroeconomic environment, industry conditions, Company’s performance and financial results. Any statements, expectations, capabilities, plans and assumptions contained in this document, which do not describe historical facts, such as information about declaration of dividend payment, future direction of operations, implementation of relevant operating and financial strategies, investment program and factors or trends affecting the financial condition, liquidity or results of operations, are forward-looking statements, as set forth in the “U.S. Private Securities Litigation Reform Act of 1995”, and involve several risks and uncertainties. There is no guarantee that these results will occur. Forward-looking statements are based on several factors and expectations, including economic and market conditions, industry competitiveness and operational factors. Any changes in such expectations and factors may cause actual results to differ from current expectations. The Company’s consolidated financial statements presented herein are in accordance with the International Financial Reporting Standards - IFRS, issued by the International Accounting Standards Board - IASB, based on the audited financial statements. Non-financial information and other operating information have not been subject to an audit by independent auditors. 2
- 3. 1Q15 Highlights 3 Net revenue reached R$236.2 million in 1Q15, an increase of 10.7% against 1Q14. Net Revenue Net income for 1Q15 was R$18.1 million, with a net margin of 7.7%;Net Profit In 1Q15, gross profit was R$95.9 million, up by 4.2% against 1Q14, with 40.6% gross mragin;Gross Profit EBITDA for 1Q15 totaled R$28.1 million, an increase of 3.0% against 1Q14, with a margin of 11.9%; EBITDA During the quarter, Arezzo&Co expanded sales area by 11.2% against 1Q14. Sales Area Expansion
- 4. 164.6 166.4 88.2 99.4 11.8 15.91.7 2.0 266.3 283.7 1Q14 1Q15 Arezzo Schutz Anacapri Others¹ Gross revenue increased 8.9%, with special mention to 12.6% growth in the domestic market in the Schutz brand. Company Growth 4 Gross Revenues – Domestic and Export Market (R$ million) 6.5% 75.8% 8.9% 1.2% 12.6% 6.5% Gross Revenues by brand – Domestic Market (R$ million) 1) Others: Increase of 14.7% in 1Q15. 34.7%
- 5. 145.9 146.0 63.9 70.5 55.6 66.1 0.9 1.1 266.3 283.7 1Q14 1Q15 Franchise Owned Stores Multi-brand Others¹ In this quarter, monobrand stores (Franchises and Owned Stores) increased 3.2%, and the Multibrand channel presented a 18.8% growth. SSS Sell-out reached 2.2% growth in the quarter. Gross Revenue Breakdown by Channel – Domestic Market 51) Others: Growth of 21.9% in 1Q15. Gross Revenues by channel – Domestic Market (R$ million) SSS Sell-out (owned stores + franchises) 3.3% 8.7%SSS Sell-in (franchises) 0.6% -4.0% 0.1% 18.8% 6.5% 10.3% SSS Sell-out (owned stores + web + franchises) 3.8% 2.2%
- 6. 299 343 407 460 46 57 54 54 22.1 26.7 32.1 35.7 1Q12 1Q13 1Q14 1Q15 Franchises Owned Stores Area An expansion of 11.2% in sales area against 1Q14. Distribution Channel Expansion 6 Owned Stores and Franchises Expansion 1) Includes 7 outlet-type stores with a total area of 2.882 m² 20.6% 11.2% 20.7% 400 461 514 +53 345 +61 +55 Franchises Multi Brands Owned Stores 46 28 1,379 Multi Brands Owned Stores 2 8 Franchises 53 Multi Brands Owned Stores 4 997 Franchises Multi Brands Owned Stores 356 19 1,132 Number of Stores – Domestic Market 1
- 7. 27.3 28.1 1Q14 1Q15 92.1 95.9 1Q14 1Q15 Gross profit reached R$95.9 million in 1Q15, with 40.6% gross margin. EBITDA amounted R$28.1 million, with a 11.9% margin. Gross Profit and EBITDA 7 Gross Profit (R$ million) EBITDA (R$ million) 4.2% 43.1% 40.6% Gross profit Gross Margin EBITDA EBITDA Margin 12.8% 11.9% 3.0%
- 8. 17.4 18.1 1Q14 1Q15 In this quarter, Company net income presented a growth of 4.1%, reaching R$18.1 million, with a net margin of 7.7%. Net Income and Net Margin 8 Net Income (R$ million) 7.7% Net MarginNet Income 8.2% 4.1%
- 9. Operating Cash Flow 9 Arezzo&Co generated R$24.2 million in operating cash in 1Q15, due mainly to the higher operating profit during the quarter and a greater need for working capital due to business seasonality. Operating Cash Flow (R$ thousand) Income before income tax and social contribution 26,997 30,350 3,353 12.4% Depreciation and amortization 3,209 5,784 2,575 80.2% Other (3,184) 4,149 7,333 n/a Decrease (increase) in current assets / liabilities 9,202 (13,077) (22,279) n/a 2,503 (18,925) (21,428) n/a (17,774) (23,186) (5,412) 30.4% Suppliers 39,400 34,130 (5,270) -13.4% (14,927) (5,096) 9,831 -65.9% Payment of income tax and social contribution (2,342) (3,019) (677) 28.9% Net cash flow generated by operational activities 33,882 24,187 (9,695) -28.6% Inventories Trade accounts receivables Change in R$ Change in % 1Q15 Change in other noncurrent and current assets and liabilities 1Q14Operating Cash Flow
- 10. 3.2 0.5 6.1 7.5 0.6 2.3 9.9 10.3 1Q14 1Q15 Stores Corporate Others¹ In 1Q15, the Company invested R$10.3 million, an increase of 4.4% over the same period of last year. Indebtedness policy remained conservative. Capital Expenditure (CAPEX) and Indebtedness 10 CAPEX (R$ million) Indebtedness (R$ million) 4.4% 23.2% -85.3% 294.6% 1T14 4T14 1T15 Cash 207,553 200,385 210,149 Total debt 96,652 99,410 98,138 Short term 59,680 65,081 65,718 % total debt 61.7% 65.5% 67.0% Long-term 36,972 34,329 32,420 % total debt 38.3% 34.5% 33.0% Net debt (110,901) (100,975) (112,011) -€ -€ - EBITDA LTM 158,113 161,299 162,122 Net debt/EBITDA LTM -0.7x -0.6x -0.7x Cash position and Indebtedness
- 11. Contacts Telephone: +55 11 2132-4300 ri@arezzoco.com.br www.arezzoco.com.br Thiago Borges Leonardo Pontes dos Reis, CFA CFO and IR Officer IR Manager Leandro Vieira IR Analyst