MACINTOSH RETAIL GROUP NV Aandeelhoudersvergadering d.d. 27 april 2010 General meeting of shareholders April 27, 2010 Should different interpretations arise between the Dutch and English version of this presentation, the dutch version prevails
Frank De Moor (CEO) Highlights 2009 Theo Strijbos (CFO) Income statement / Balance sheet Cashflow and ratio s Dividend Frank De Moor 2010 Eric Coorens (COO) Ingrid Weijer (CR&I) Frank De Moor Cooperations shoes MVO Strategy -2-
Highlights 2009 (1) Toughest year for non-food retail sector. Turnover of MRG: - 2.7%; solid EBIT of 44.7 million. Sale of BelCompany Belgium: gain of + 2.2 million. Net profit for the year unchanged ( 31.4 million); same dividend as in 2008 ( 0.55). Slightly positive contribution of Brantano acquisition to net profit; substantial improvement in UK. Strict working capital management: decrease in working capital of - 36.1 million. Reduction in debt position of 74 million to 135 million. Cash flow from operating activities 93.2 million (2008: 61.8 million). -3-
Highlights 2009 (2) 7.6% lower turnover in Living sector owing to poor market conditions. EBIT from 23.3 million (including 4.5 million in non-recurring items) to 6.3 million. Sharp decline in EBIT of Kwantum; GP Décors improves performance by implementing recovery plan. 2.7% decline (excluding exchange rate effect) in turnover of Fashion sector. EBIT virtually unchanged as a result of 1.5% higher margin due to collaboration benefits. Brantano and Scapino achieve higher EBIT; Hoogenbosch lags behind. 7.6% increase in turnover of Automotive & Telecom sector. EBIT 2.1 million up thanks to BelCompany and telefoonkopen.nl; EBIT of Halfords down. -4-
Highlights 2009 (3) Business processes and financial basis improved. Collaboration between shoe formats shows initial results and offers good prospects. Large number of initiatives for commercial campaigns. No jobs lost. Sustainable future goals defined. -5-
Living Turnover in mln EBIT in mln EBIT margin in % Total H1 H2 2009 2008 2009 2008 2009 2008 245.6 265.8 127.6 132.7 118.0 133.1 6.6 23.3 1 4.6 9.2 1.7 14.1 1 2.6 8.7 3.6 7.0 1.5 10.5 1: Including positive effects of 4.5 mlillion -6-
Fashion Total H1 H2 2009 2008 2009 2008 2009 2008 Turnover in 581.6 612.8 273.0 288.7 308.6 324.1 mln 1 EBIT in mln EBIT margin in % 1: Exchange rate effect on turnover 2009: - 14.4 mln 26.9 28.0 3.0 4.0 23.9 24.0 4.6 4.6 1.1 1.4 7.7 7.4-7-
Automotive & Telecom Turnover in mln EBIT in mln EBIT margin in % Total H1 H2 2009 2008 2009 2008 2009 2008 289.4 268.9 135.9 123.1 153.5 145.8 18.2 16.1 8.0 5.7 10.2 10.4 6.3 6.0 5.9 4.6 6.6 7.2-8-
Income statement (1) (x mln) 2009 2008 Turnover 1,116.6 1,147.5 Gross margin 513.0 (45.9%) 526.1 (45.9%) Costs - 468.3 (41.9%) - 473.3 (41.2%) - - 2,7%; excluding exchange rate effect: - 1,5%. - Exchange rate effect 14,4 mln. - Q4 at 2008 level. - Supplier management. - Strict stock control/discounting policy. - Costs controlled, attention for hours worked in shops. - Positive effect exchange rate GBP. - Large organic cost increases. EBIT 44.7 61.3-9-
Income statement (2) (x mln) 2009 2008 EBIT 44.7 61.3 Financial income and expense - 8.4-13.7 Lower net debt. Taxes - 7.1 (19.5%) - 10.0 (21.0%) Net profit continuing operations 29.2 37.6 Net profit discontinued operations (BelCompany B) 2.2-6.3 2009: negative EBIT of - 1,2 mln and gross transaction profit + 4,8 mln. Total net profit 31.4 31.3-10-
Financial focus in 2009 (x mln) 2009 2008 Capex 12.2 27.6 Mainly in projects with short pay back Net debt ultimo 135 209 Working capital effect 36 mln Credit facility ultimo 285 305 Decrease per half year with 10 mln -11-
Balance sheet items asset side (x mln) Non current assets 2009 2008 Intangible assets 21.7 22.9 Goodwill 195.2 195.2 Property, plant & equipment 99.8 115.0 Financial fixed assets 2.6 2.7 319.3 335.8 Current assets Inventories 202.0 213.7 Trade and other receivables 47.2 55.9 Cash and cash equivalents 25.0 21.4 274.2 291.0 Balance sheet total 593.5 626.8-12-
Balance sheet items liabilities side (x mln) 2009 2008 Shareholders equity 234.0 (39.4%) 201.5 (32.2%) Non-current liabilities 168.7 236.9 Current liabilities 190.8 188.4 Balance sheet total 593.5 626.8 Interest bearing debts 160.0 230.7-13-
Cash flow / EBITDA (x mln) 2009 total 2008 total EBIT 44.7 61.3 Depreciation & amortisation 27.3 30.3 EBITDA 72.0 91.6 Capital - 11.7-27.6 Expenditure 1 Changes in workingcapital 36.1 1.4 Changes in reservations - 3.2-3.6 Operating Cash flow 93.2 61.8 1 Continuing activities ² Excluding temporary decline of real estate in 2008-14-
Ratio s 2009 2008 Net debt 135 209 Net debt / EBITDA ratio 1.9 2.6 Max 3 Interest coverage ratio 5.9 4.0 Min 3 Net average capital employed 459 486 ROCE excl. goodwill 19.6% 23.5% ROCE incl. goodwill 10.0% 12.8% -15-
Dividend Dividend: 0.55 per share / 12.9 mln. Dividend policy (pay out: 40%) maintained in one of the most difficult years for the non-food retail. Optional dividend; Choice for shares will be made attractive by setting the value of the stock dividend some 2% higher than the cash dividend. Consideration period: 4 May 4 till May 8. Base of conversation rate is weighted average prise from May 19 May 21. -16-
Outlook for 2010 (1) First quarter: Turnover by sector (x millions) Q1 2010 1 Q1 2009 1 Living 62 64 Fashion 119 118 Automotive & Telecom 60 59 Total 241 241 1. to March 29 inclusive. Decline at Kwantum NL, unchanged at Kwantum B; GP Décors down. Brantano BeLux, Brantano UK and Scapino up; Hoogenbosch down. Increase at BelCompany (including telefoonkopen.nl) and Halfords. EBIT for Q1 2010 unchanged from Q1 2009. -17-
Outlook for 2010 (2) Full year 2010: No decline in turnover from non-food retailing in 2010 comparable to that in 2009, but neither a substantial recovery. Home decoration market continues to be tough: Kwantum to achieve limited turnover recovery. Fashion to improve result if market does not contract. A&T facing challenge equalling excellent EBIT. No statement on the expected turnover and results for the full year 2010. -18-
Outlook for 2010 (3) Issues in 2010: - Organic growth in turnover. - Sound inventory and price reduction policies: gross margin kept under control. - Opening of some 15 stores. - Roll-out of new BelCompany, Brantano UK and Halfords store formats. - New projects, including Shick*, Switch and Estilogie. Capital expenditure: some 25 million. Debt and financial positions offer opportunities for acquisitions in Living and Fashion sectors. Confidence in our ability to expand our market positions further in 2010. -19-