March, 2015
ANALYST PRESENTATIONQ1 2015
12 May, 2015
KEY HIGHLIGHTS Q1´15 –EXECUTIVE SUMMARY
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Group Sales up by 3.4% to € 215.7 m
Gross profit for the Group up by € 0.5 m to € 119.3 m reflecting good margin of 55.3%
Recurring EBITDA decreased by € 2.0 m to € 9.1 m (margin: 4.2%) reflecting further expansion
Reported EBITDA decreased by € 2.1 m to € 7.8 m (margin: 3.6%)
Net income for the period at previous year´s level
BONITA: Increased sales by 5.8% to € 72.4
Like-for-Like went up by 7.4% for Q1´15
Operating cash flow increased by € 3.4 m while net debt was further reduced by € 5.7 m
SUSTAINED MULTI-CHANNEL EXPANSION -FOCUS ON CONTROLLED DISTRIBUTION
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RETAIL SEGMENT WHOLESALE SEGMENT
E-Commerce
Shop-in-Shops
Multi-Labelpartner
Franchise-Stores
Retail-Stores
E-Commerce
Retail-Stores
in Germany
2,722worldwide
~9,825worldwide
206worldwide
1,014in Europe
In 21 countries
388in Europe
Net expansion in Q1 `2015
As of March 31, 2015
+6 +1 +/- 0 +36 +1,298
Openings: 9Closings: 3
Openings: 9Closings: 8
BONITA GREW LIKE-FOR-LIKE BY 7.4%
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BONITA successfully increased Like-for-Like by 7.4% after five negative quarters despite challenging market
Compared to strong Q1´14 TOM TAILOR Retail had an extended winter season Q1´15; LfL was down by 4.6% and thus mainly in line with the market
German textile market suffered from weak Sep./Oct. sales in 2014Q1´15Q1´14
3.0%
9.6%
-8.7%
-5.0% -4.6%
7.4%
Bonita
Like-for-like development Q1´14–Q1´15 in % Comment
1) Source: TextilWirtschaft-Testclub 2015
German Market1) TOM TAILOR Retail
REORGANIZATION
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New structure in place Search for new COO expected to be finalized
within the next months
Executive Board:
Accelerated verticalization to increase productivity/m² resulting in higher profitability
Target:
Responsibility for individual brands across all sales channels pooled with one person each (VP brand)
Take a more target approach to specific strengths of individual brand to align them even more closely with customer needs
Internal reorganization has started on April 1st, being well underway: 5 vice presidents (VP) already in charge Search for VP Digitalization in progress
Organization:
BONITA TO CONTINUE ITS PLEASANT DEVELOPMENT
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Store expansion of approx. 35 new stores in core markets in 2015 intended
All stores refurbished
Optimization of store portfolio
Focus on e-commerce expansion
Marketing campaign (print & TV) planned for the second half of 2015
Loyalty Fashion Card increased further to 604,000 holders representing 42% of respective sales
Higher consumption of card holders compared to non-card holders
∙ Average price per ticket 77%∙ Number of items sold 47%
EXPANSION OF E-COMMERCE: COOPERATION WITH JABONG
… one of the leading online retailers in India
… part of Rocket Internet Group
… annual growth rates in double-digit range
… sale of TOM TAILOR brand family and its accessories on the online
platform Jabong.com
… 3 year cooperation concluded
→ TOM TAILOR now available in India and marketed in 21 countries
online since March 2015
→ Expansion in one of the worlds most attractive future markets
for online retail
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FINANCIAL HIGHLIGHTS Q1´15
TOM TAILOR GROUP WITH LIVELY START IN 2015
9
Sales [€ m] Gross profit [€ m] Recurring EBITDA [€ m]
Comment Group sales rose by € 7.0 m Increase was driven by TOM
TAILOR Wholesale and BONITA Sales in Germany +5.3% to
€ 137.0 m Sales in foreign countries
stable with € 78.7 m
Comment Gross profit grew by 0.4% or
€ 0.5 m to € 119.3 m Gross margin was 160 bpts
below PYQ due to common seasonal promotions
Comment Rec. EBITDA down by € 2.0 m
or 17.9% Rep. EBITDA decreased by
€ 2.1 m or 20.9% Non recurring expenses mainly
attributable to reorganization project
+3.4%
208.7
215.7
Q1'14 Q1'15
118.8 119.3
Q1'14 Q1'15
11.19.1
Q1'14 Q1'15
-17.9%+0.4%
Margin 56.9% 55.3% Margin 5.3% 4.2%
TOM TAILOR BRAND INCREASED SALES BY2.2%
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Sales [€ m] Gross profit [€ m] Recurring EBITDA [€ m]
Comment TOM TAILOR brand increased
sales by 2.2% to € 143.4 m representing 66.5% of Group sales (PY: 67.2%)
Retail share within TOM TAILOR brands was 41.1% (PY: 42.2%)
Comment Gross profit increased slightly
by 0.5% while margin decreased by 80 bpts due to some promotions
Increase was driven by wholesale segment while retail was flat
Comment Rec. EBITDA decreased by
21.6% to € 8.9 m Rep. EBITDA went down by
29.6% to € 7.7 m
140.3 143.4
Q1'14 Q1'15
71.4 71.8
Q1'14 Q1'15
11.48.9
Q1'14 Q1'15
-21.6%
Margin 50.9% 50.1% Margin 8.1% 6.2%
+2.2% +0.5%
TOM TAILOR WHOLESALE WITH STRONG FIRST QUARTER
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Sales [€ m] Gross profit [€ m] Recurring EBITDA [€ m]
Comment TOM TAILOR Wholesale
increased top-line by 4.2% to € 84.5 m
Wholesale represents 39.2% of Group sales (PY: 38.9%)
Order intake (until August) 6.7% above PY but slowing down in course of the year
Comment Gross profit increased by
€ 0.5 m to € 38.8 m Gross margin decreased by
130 bpts due to some promotions
Comment Rec. EBITDA was € 10.2 m and
slightly below PY (€ 10.4m) EBITDA was influenced by
higher personal expenses
81.1 84.5
Q1'14 Q1'15
38.3 38.8
Q1'14 Q1'15
10.4 10.2
Q1'14 Q1'15
-1.9%
Margin 47.3% 46.0% Margin 12.8% 12.1%
+4.2% +1.3%
TOM TAILOR RETAIL WITH MIXED START
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Sales [€ m] Gross profit [€ m] Recurring EBITDA [€ m]
Comment Sales of TOM TAILOR Retail
nearly stable at € 58.9 m, only € 0.3 m below strong PYQ
Like-for-Like was -4.6% compared to a strong Q1´2014
Sales in e-commerce were € 10.8 m (PY: € 11.1 m)
Comment Gross profit and gross profit
margin were on previous years level
Comment Rec. EBITDA was € 2.3 m below
PY reflecting higher personal and rent costs related to expansion
-0.6%
59.2 58.9
Q1'14 Q1'15
33.1 33.0
Q1'14 Q1'15
1.0
-1.3
Q1'14 Q1'15
-0.4% <-100%
Margin 55.9% 56.0% Margin 1.7% -2.1%
BONITA STARTED SUCCESSFULLY INTO2015
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Sales [€ m] Gross profit [€ m] Recurring EBITDA [€ m]
Comment Sales grew by € 4.0 m or 5.8%
to € 72.4 m BONITA sales contributed
33.5% to Group sales (PY: 32.8%)
BONITA increased Like-for-Like by 7.4% (PY: -8.7%)
Comment Gross profit was on prior years
level Gross margin decreased
mainly due to higher promotional activities in January
Comment EBITDA benefited from lower
personal costs– Rec. EBITDA rose by
€ 0.5 m to € 0.2 m– Rep. EBITDA increased by
€ 1.2 m to € 0.2 m
68.4 72.4
Q1'14 Q1'15
47.4 47.5
Q1'14 Q1'15 -0.3
0.2
Q1'14 Q1'15
Margin 69.3% 65.6% Margin -0.4% 0.2%
+5.8% +0.2% >100%
POSITIVE CASH FLOW DEVELOPMENT
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Operating cash flow improved by € 3.4 m compared to prior year quarter
Capex increased in line with expansion of controlled areas to € 7.4 m
As a result, free cash flow (defined as operating cash flow-capex-interest payment) was on prior years level
Q1´14Q1´13
-10.9
-2.1
-8.1
-20.9
-11.7
-1.3
-4.1
-17,1
-8.3
-1,7
-7,4
-17,4
Cash flow development Q1´13-Q1´15 Comment
Operating Cash Flow
Net Interest Capex Free Cash Flow
Q1´15
KEY FINANCIAL FIGURES – BALANCE SHEET SIGNIFICANTLY STRENGTHENED
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Key figures Q1 ‘15Q1 ‘14
Equity ratio [%] 28.7 29.6
Net debt [€ m] 237.6 232.0
Net working capital, thereof:
97.1 88.5
Net working capital/salesin [%], based on LTM
10.6% 9.4%
Equity ratio increased by 90 bpts
Net debt further decreased by € 5.6 m or 2.4%
Net working capital decreased by € 8.6 m mainly due to increased trade payables
Gearing as ratio of net debt to equity improved from 109.6% to 97.7%
Refinancing project well on track
Comment
Inventories
Trade receivables
Trade payables
56.7
(102.3)
164.2
67.8
(143.5)
142.8
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OUTLOOK
MACROECONOMIC ENVIRONMENT IN GERMANY 2014/2015 REMAINS STABLE
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Unemployment rate [%] GfK-consumer climate index [points]
GDP [%] Ifo-business climate index [points]
Source: IfW Kiel, Ifo institutes, GfK
0.8
-0.1 0.1
0.7
1.6
Q1 Q2 Q3 Q4 FY 14e
106.5105.5
103.4104.6
105.5106.7 106.8
107.9
Aug Oct Dec Feb
5.0 5.0 5.0
4.9 4.9
4.8 4.8
Aug Sep Oct Nov Dec Jan Feb
8.6 8.3 8.5 8.7 9.0 9.3 9.7 10.0
Aug Oct Dec Feb
OUTLOOK FOR 2015 CONFIRMED
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20152014
Sales
Rec. EBITDA margin
Net debt
Net debt/rec. EBITDA
Equity ratio
€ 932.1 m
9.4%
€ 202.9 m
2.3
30.3%
Moderate increase
On previous years' level
Decreasing by approx. € 10 m
Approx. 2.0
Above 30.0%
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Success through a deep and fundamental understanding of customers
DISCLAIMER
This document contains forward-looking statements, which are based on the current estimates and assumptions by the management of TOM TAILOR Holding AG. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate and similar formulations. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by TOM TAILOR Holding AG and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside TOM TAILOR Holding AG’s control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. TOM TAILOR Holding AG neither plans nor undertakes to update any forward-looking statements.
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CONTACT DETAILSINVESTOR RELATIONS
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Date preliminary
May 12, 2015
June 3, 2015
June 16 & 17, 2015
August 11, 2015
November 10, 2015
Felix ZanderHead of Investor Relations & Corporate Communications
TOM TAILOR HOLDING AGGarstedter Weg 1422453 HamburgPhone: +49.40.589 56 - 449Fax: +49.40.589 56 - 199Mobile: +49.173 746 08 28Email: [email protected]
EVENT
Interim report Q1´2015
Annual General Meeting, Hamburg
Capital Markets Day, Hamburg
Half-yearly financial report 2015
Interim report Q3´ 2015