Full Year 2012 Results. Madrid, February 28 th, 2013

Transcription

1 Full Year 2012 Results Madrid, February 28 th, 2013

2 Our progress in A new company identity and mission 2. A fully integrated organization 3. A strong plan going forward 4. Solid business and financial results One company, one mission, one set of values. Acquisition closing New Corporate Management Team Launch of Infrastructure Project Strategic Plan Presentation March 2012 July 2012 Sept Dec May 2012 July 2012 Nov 2012 New Spicers/Adimpo integrated organization New Company Name 1 st ADVEO Leadership Team Workshop 2

3 1. A new company with a new identity and mission ADVEO indicates direction in space and time. + + It is synonymous with going towards something, with being alive, with being dynamic. It is a name that suggests vision, trailblazing and anticipation and transmits an advanced and innovative attitude, with clarity and transparency. Enabling potential It sounds similar to advantage and advice and therefore refers to the competitive advantage that receiving good advice provides. Our mission is to enable our vendors and customers to reach their full potential. This potential is opened by the changes in our market. And to enable our potential as a company, our employees and our stakeholders. Our Company Values are: Open mindedness, proactivity, collaboration and integrity. 3

4 1. With a unique business model We are the only player to cover all market segments, from Traditional to Digital, from manufacturing to the end user IT Vendors TOS Vendors 5 manufacturing facilities 500 vendors European contracts with key vendors 35,000 products Wholesale HW broad liners EOS Spec. Traditional 130,000 sqm of stocking space Broadest portfolio of services Over 400 million credit capabilities Resale Distributors 1,000 franchised resellers 30,000 customers (resellers) Businesses, education and families 100,000 end user ship to s 30,000 order lines / year 8 million boxes / year EOS: Electronic Office Supplies TOS: Traditional Office Supplies HW: Hardware 4

5 2. A fully integrated organization Management Structure CEO CFO Corp. HR Logistics & IT Corp. Legal Counsel COO EOS Marketing EU Purchasing TOS Marketing Iberia France Germany Italy Benelux Legal Structure ADVEO Group International, S.A. 100% 100% 100% 100% 100% ADVEO España, S.A. Monte Urgull S.L.U. 100% 25% ADVEO Digital Systems, S.A.U. ADVEO ADVEO 75% Admin.. & Servicios Belgium N.V. 100% ADVEO ADVEO ADVEO Deutschland Gmbh France S.A.S. Italia S.R.L. ADVEO Netherlands 5

6 3. A strong plan going forward Strategic Plan: Key business and financial objectives Implement wining value propositions by customer segment to enable growth. EBITDA Margin ROCE 1 NFD/EBITDA Diversify the portfolio to enable profitability. 2011: 4.1% 18% 3.3x New integrated operating model and systems to enable cost leadership. Objective for 2015: >5,2% >22% <1.0x 1 :ROCE: [EBITA interest on non-recourse factoring] / average capital employed 2011: pro forma figures, including Spicers. 6

7 Implement wining value propositions by customer segment to enable growth Customer segmentation Value proposition by Customer Segment + Services portfolio IT Specialists Traditional Retail Service Driven Scale Driven Product offering Terms & conditions Marketing services Customer Sales Segment approach - Product portfolio + Supply chain capabilities Multichannel go to market model for vendors We are the most efficient Go to Market option. Our multi-channel and operational capabilities enable our vendors to maximize customer reach while optimizing the efficiency of their value chain 7

8 Diversify the portfolio to enable profitability Customer segmentation CARIP E-Tailing One stop shop Back to School + Services portfolio - Purchasing Bundles Extensions Product portfolio Integrated solutions Adjacent markets + Calipage Stockless Dealer Model Managed printing services Hygiene & Sanitation (FM) Mobility IT Accessories Catering Private brand 8

9 New integrated operating model and systems to enable cost leadership Strategies Organizations Processes Systems Different Companies and Locations Different Operating Models Single PROCESSES COMMON FOOT PRINT Operational Processes Business Product Supply Chain Development Purchasing Management Support Functions Improved Increased Margin Sales Increased Process Efficiency Single STRATEGY Value Lever s SYNERGIES Reduced Stock Corporate Reduced Warehouse Cost Reduced Transport Cost CE Center of Excellence Centralized SSC Shared Services Center Local Single FUNCTIONS DISTRIBUTION ORGANIZATION Finance and Controlling Human Resources Information Technology NEW IT PLATFORM (ENABLER) Single SYSTEMS PIM E-Commerce CRM ERP WMS Implementation Business Intelligence Single Operating Model 9

10 4. Solid business and financial results Market share gained in TOS (Traditional Office Supplies). Rebuilt profitability in EOS (Electronic Office Supplies). Integration process in progress, allowing first synergies to arise. Restructuring process in Spain already concluded. Cost reduction: Closure of warehouses in Spain and France, renegotiation of transport costs. Improvement in cross selling: Negotiation with big accounts Extended marketing actions Strategies developed by customer segment Increased confidence and support from our key vendors. 10

11 4. Solid business and financial results Total Revenues Net Financial Debt % % 105 EBITDA NFD (x EBITDA) Free Cash-Flow +1,706% % 4.2% EBITDA Mg./Total Revenues Net Profit 14,2 +267% ,5 Net Profit Adjusted in 2011 amounted to 35.6 mn, including 44 mn from the disposal of our 50% stake in Ofiservice and restructuring expenses of 15.2 mn. ROCE (calculated as EBITA/ [Equity+NFD]) stands at 14.8% vs. -0.5% in 2011 Figures in million. Official reported figures for

12 4. Solid business and financial results Total Revenues % Revenues by product type 34% 4% 62% IT, Electronic Office Supplies Traditional Office Supplies Other ADVEO Revenues by product category million % var. IT, Electronic Office Supplies ,5% Traditional Office Supplies ,9% Other 42 2 n.a. TOTAL ,4% Revenues by country 9% 4% Spain 31% Portugal 19% France Germany 2% Italy Benelux 35% ADVEO Revenues by country million % var. Spain ,6% Portugal ,3% France ,2% Germany ,0% Italy ,6% Benelux 46 0 n.a. TOTAL ,4% Product Sales only. Figures in million. 12

13 4. Solid business and financial results EBITDA 48 +1,706% % 4.2% EBITDA Mg./Total Revenues Operating expenses and overheads: Cost efficiency continues improving in line with estimates, although part of the restructuring plan in still pending to be implemented. Figures show that good efforts have been done, especially regarding operational expenses & overheads. EBITDA stands at 48.1 million (+1,706% yoy), increasing mainly as a result of Spicers contribution. The EOS (Electronic Office Supplies) client portfolio throws better margins, while sales have dropped in this segment in order to favour profitable deals over less profitable ones. Synergies amounted to 2.5 million and were mostly achieved as a result of the closure of warehouses in France and Spain, as well as to staff reductions in France and Spain in 2H12. Figures in million. 13

14 4. Solid business and financial results Net Profit Net Profit Adjusted 14,2 35,6-48.8% 18,2 +267% , Net Profit improves, from -8.5 million in 2011 to 14.2 million in Net Profit Adjusted, including the amortization of intangible assets, reaches 18.2 million. In 2011, Net Profit Adjusted in 2011 amounted to 35.6 million, including 44 million from the disposal of our 50% stake in Ofiservice and restructuring expenses of 15.2 million. Figures in million. 14

15 4. Solid business and financial results CONSOLIDATED PROFIT AND LOSS ACCOUNT vs. Real thousand Var% Var. th Net turnover 1.129, ,867 33,4% Other revenue 13,902 11,329 22,7% Total Revenue 1.143, ,196 33,3% 285,504 Purchases -930, ,571-21,7% Gross Margin 213,506 93, ,5% 119,881 Personnel expenses -83,769-48,323-73,4% Other operating expenses -81,642-38, ,4% Provisions -0,062-3,660 98,3% EBITDA 48,033 2, ,4% 45,374 Depreciation (tangible assets) -7,474-4,435-68,5% EBITA 40,559-1, ,7% 42,335 Amortisation (PPA) -4,086 0,000 - EBIT 36,473-1, ,7% 38,249 Financial result -14,956-6, ,5% - financial expenses -15,578-8,728-78,5% - financial income 0,622 1,882-67,0% Associates -0,021-0,077 72,7% Other profit/losses 0,126-2, ,8% Profit before taxes 21,622-10, ,7% 32,504 Taxes -7,468 2, ,2% Net Profit 14,154-8, ,9% 22,636 Profit (Loss) after tax discont. Op. 0,000 44, ,0% Minorities -0,012-0,011-9,1% Net Profit after minorities 14,142 35,568-60,2% -21,426 Amortisation PPA 4,086 0,000 - Exceptional items 0,000 0,000 - Net Profit adjusted * 18,228 35,568-48,8% -17,340 Gross margin/total revenue 18,7% 10,9% EBITDA / Total revenue 4,2% 0,3% * Adjusted by amortisation of PPA 15

16 4. Solid business and financial results CONSOLIDATED BALANCE SHEET thousand 31 Dec Dec 2011 thousand 31 Dec Dec 2011 Non-current assets 251, ,724 Equity 169, ,045 Property, plant and equipment 71,230 73,591 Share capital and reserves 170, ,986 Other tangible assets 3,765 3,871 Minority interest and other -1,167 0,059 Intangible assets 165, ,255 Non-current liabilities 129, ,179 Other non-current assets 10,591 16,007 Bank borrowings 102, ,770 Current assets 382, ,130 Provisions and other non-current liabilities 26,547 29,409 Inventory 169, ,436 Current liabilities 335, ,63 Trade and other receivables 110, ,254 Trade payables 212, ,698 Short term investments 18,492 13,899 Income tax payable 5,786 13,453 Cash and Cash equivalents 82,023 80,122 Bank borrowings 103, ,261 Other current assets 0,914 1,419 Other current liabilities 14,413 28,218 0,000 0,000 Total liabilities 464, ,809 TOTAL ASSETS 633, ,854 TOTAL EQUITY AND LIABILITIES 633, ,854 16

17 4. Solid business and financial results Net Financial Debt % NFD (x EBITDA) Financial Leverage, in thousand 30 Dec Dec Bank borrowings 205, ,031 Cash and equivalents & short-term investments 100,515 94,021 Net Financial Debt 105, ,010 Net Financial Debt is significantly reduced due to strong cash generation and Balance Sheet Management. ROCE (calculated as EBITA/ [Equity+NFD]) stands at 14.8% vs. -0.5% in 2011 Figures in million. 17

18 4. Solid business and financial results Free Cash-Flow Consolidated Cash Flow ( m) EBIT (1,7) 36,5 D&A 4,5 11,6 Net interest (6,8) (15,0) Taxes (14,9) (7,5) Other non cash Items (0,1) Uses of provisions - (6,4) Change in WRC post factoring (8,5) 63,3 Operating cash flow (27,5) 82,4 CAPEX (5,5) (10,2) FCF pre acquisitions (33,0) 72,2 Acquisitions/Divestments (128,2) Free Cash Flow (161,2) 72,2 Net debt (balance sheet) 162,0 103,9 Normalized FCF pre change in WRC (11,2) 15,4 Strong improvement in Free Cash-Flow generation, mainly due to a better control of Working Capital management. Figures in million. 18

19 Share Performance in /12/ /01/ /02/ /03/ /04/ /05/ /06/ /07/ /08/ /09/ /10/ /11/ Volume ADV ADVEO IBEX35 IGBM IBEX SMALL 19

20 Disclaimer This presentation was prepared by ADVEO exclusively for the benefit and internal use in the presentation to analyst and investors and solely as a basis for discussion of certain issues related to the presentation of results. This presentation is based on publicly available information and/or data provided by ADVEO. This document does not constitute an offer or invitation to purchase or subscribe shares, in accordance with the provisions of the Spanish Securities Market Law (Law 24/1988, of July 28, as amended and restated from time to time), Royal Decree-Law 5/2005, of March 11, and/or Royal Decree 1310/2005, of November 4, and its implementing regulations. Ana Roldán Investor Relations Manager ana.roldan@adveo.com adveo.com 20

21 Enabling potential