IKEA Stores - Fourlis

fourlis.gr

IKEA Stores - Fourlis

Aug 2012

Smith Barney Third Annual

Small/Mid Cap Conference

1


Fourlis Group Vision

A Passion for Better Living.

To create superior value for our Customers, People,

Shareholders and Society by delivering goods and

solutions for better living.

Fourlis Group Values

Integrity

Respect

Efficiency

2


Fourlis Group Strategy

Efficient development of international partnerships, focused

primarily in Retail and secondarily in non Retail channels.

Each subsidiary is managed separately by dedicated management.

However all subsidiaries take advantage of the group synergies which

are coordinated by the corporate center.

3


Currently Operating in Greece, Cyprus, Bulgaria, Romania and Turkey

Our Business Activities

Home Furnishing Retail

Sporting Goods Retail

Intersport

New Look

Fashion Goods Retail

Electrical Appliances Wholesale

Ikea

Intersport

New Look

Turkey

Intersport

4


Group Legal Structure

FOURLIS HOLDINGS S.A.

100% 100%

Fourlis

Trade

Α.Ε.Β.Ε.

Housemarket

Α.Ε.

(IKEA)

100%

Intersport

Athletics

Α.Ε.

99% 100%

Service One

Α.Ε.

100%

Η.Μ.

Housemarket

(Cyprus) Ltd

(IKEA)

Housemarket

(Bulgaria) EAD

100%

(IKEA)

Trade

Logistics

Α.Ε.Β.Ε.

100%

100%

75%

Intersport

Athletics

(Cyprus) Ltd

100%

Genco

Bulgaria

Ltd

Intersport

Atletik

AS

Genco

Trade

s.r.l.

5


Operating in a Challenging Economic Environment

Retail Sales Index in Greece (2005 = 100)

140

120

100

80

120

-7,1%

111

-5,0%

106

-7,7%

98

-11,1%

87

60

40

20

0

2008 2009 2010 2011 2012 (May)

140

Appl-Furn Index (2005 = 100)

120

100

80

60

40

122

-14,2%

105

-13,3%

91

-17,0%

75

-17,5%

60

20

0

2008 2009 2010 2011 2012 (May)

Source: Hellenic Statistical Authority

6


Contribution outside Greece is growing

SALES

EBITDA

2012

35,9%

64,1%

Greece Cyprus Romania Bulgaria Turkey

Ikea

Intersport

Wholesale Electrical

Appliances

Ikea

Intersport

Intersport

New Look

Ikea

Intersport

Intersport

7


Executive Summary H1FY12

Similar to Q1, in Q2 2012 the Greek Retail Market continued the decline with

accelerated rates (15 consecutive Quarters) affecting the group economics.

‣ Q2FY12 Sales at € 95,6 mio vs € 98,7 mio in Q2FY11

‣ H1FY12 Sales at € 186,2 mio vs 194,3 mio (Yago)

‣ 5 new Intersport stores and 3 New LOOK stores opened since the end of 2011.

‣ Net Debt € 156,8 mio.

‣ EBITDA € 3,3 mio vs € 13,9 mio in H1FY11.

‣ PBT at € -10,8 mio vs € 3,6 mio in H1FY11.

‣ NP at € -9,6 mio vs € 1,7 mio in H1FY11.

8


Consolidated P&L

Group Consolidated Key Financial Figures (in €mm)

Q2

H1FY12

CY 12 PY 11 Index CY 11 CY 12 PY 10 PY 11 Index Index

95,6 98,6 97 Revenue 186,2 194,3 96

37,9 40,7 93 Gross Profit 72,7 77,9 93

39,6% 41,3% Margin 39,0% 40,1%

2,4 8,2 29 EBITDA 3,3 13,9 23

-4,5 2,7 n/c PBT -10,8 3,6 n/c

-4,4 1,2 n/c NP -9,6 1,7 n/c

9


Q2 2012 – Net Debt per segment

Net Debt structure by segment - € mm

Dec 31 st , 2011 June 30 th , 2012

Δ

119,3 126,0 6,8

23,8 26,7 2,9

2,3 3,8 1,5

3,0 2,5 -0,5

-4,9 -2,2 2,7

Total

143,4 156,8 13,3


Net Debt Evolution (€MM)

250

200

199

190

150

100

114

99

108

117

173

141

110 110

106

86

58

136

116

153

123

160

143

159 157

50

58

0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2007 2008

2009

2010 2011 2012

11


Net Debt Cause of Change (€MM)

Net Debt

PY 2011

PBT

Non Cash

Charges

Working

Capital

Changes

Capex

Spending/

Equity

Income

Taxes

Financial

expenses

Share Buy

back

Net Debt

CY 2012

12


IKEA in the world (facts & figures)

IKEA is the world leader in home furnishings and accessories

Founded in Sweden in 1943

IKEA numbers 325 stores in 38 countries

IKEA retail square meters now exceed 8.4 million worldwide

734 million visitors all over the world in fiscal year 2011

Turnover for fiscal year 2010 (Sept. 10 through Aug. 11) EUR 26.0 bio

In 2010, the IKEA catalogue was produced in 208 million copies

900 million website visits a year in 2011

42 is the average age of IKEA visitors

60% of visitors to IKEA are women

13


The IKEA Franchise

IKEA Franchisees should:

have thorough retail experience combined with extensive local market knowledge.

be able to clearly demonstrate outstanding understanding of and strong commitment to the

IKEA Concept.

have the financial strength and potential as well the ability to locate and develop proper real estate sites.

Inter IKEA Systems B.V. continuously provides IKEA Franchisees with the support they need to operate the IKEA Concept.

Opening an IKEA operation requires considerable investment, which are entirely incurred by the IKEA Franchisee.

14


IKEA Financial Performance

IKEA Key Financial Figures (in €mm)

Q2

H1FY12

CY 12 PY 11 Index CY 12 PY 11 Index

63,6 68,7 93 Revenue 122,7 135,7 90

23,6 27,7 85 Gross Profit 46,0 54,7 84

37,1% 40,3% Margin 37,5% 40,3%

2,0 6,3 31 EBITDA 3,6 11,9 30

3,1% 9,2% Margin 2,9% 8,8%

-3,1 2,4 n/c PBT -6,8 4,6 n/c

-4,9% 3,5% Margin -5,5% 3,4%

15


Countries we Operate

Existing Stores

Future Openings

16


IKEA stores today

Thessaloniki

AES

(Athens I)

Cyprus

ACS

(Athens II)

Larissa

Ioannina

Sofia

Bulgaria

Opening Date

October

2001

April 2004

September

2007

March

2008

October

2009

December

2010

September

2011

Check outs 20 22 19 23 15 15 19

Employees 291 364 244 431 202 220 303

No of Customers (mil)

+3,9%

3.593

3.732

1 st H 2011 1 st H 2012

17


IKEA Stores

IKEA store in Bulgaria opened in September 2011

IKEA store in Ioannina opened in December 2010

IKEA store in Cyprus opened in

September 2007

Fully Automated IKEA Logistics

center operates since April 2008

18


IKEA Expansion Plan

Athens 3 stores

Greece

Thessaloniki 1 store

Countryside 3 stores

Cyprus

Nicosia 1 store

Existing Stores

Future Openings

Bulgaria

Sofia 1 store

Countryside 1 store

19


International

• The world’s largest retail sporting goods chain

• More than 5.300 stores in 39 countries

•More than 50 million customers are served per year

• Group’s total annual retail sales is more than € 10 billion

20


A market of 110 million people

21 Stores

5 Stores

39 Stores

Turkey

15 Stores

Cyprus

2 Stores

21


Stores today

• Intersport Athletics S.A. has the franchise for Intersport stores in Greece, Cyprus,

Romania, Bulgaria and Turkey.

• The agreement is based on a management fee on net sales and the distribution

of own label products of Intersport International.

No. of Stores

90

80

70

60

50

40

30

20

10

0

15

15

5

4 2

2

4

2

2 21

19

1

2

1 16

14

1 1 11

1

1

1

4

6

12 15

19 20 21 23 24

28 30 33

37 39

5

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Turkey

Bulgaria

Cyprus

Romania

Greece

No of Customers (mil)

+28%

1.346

1.055

1 st H 2011 1 st H 2012

22


Financial Performance

INTERSPORT Key Financial Figures (in €mm)

Q2

H1FY12

CY 12 PY 11 Index CY 12 PY 11 Index

25,1 21,6 116 Revenue 51,2 41,2 124

12,8 11,2 114 Gross Profit 24,1 19,9 121

50,9% 51,9% Margin 47,0% 48,3%

1,8 1,9 93 EBITDA 2,1 1,7 118

7,0% 8,7% Margin 4,0% 4,2%

0,3 0,3 92 PBT -0,8 -0,8 107

1,2% 1,4% Margin -1,6% -1,9%

23


24

Stores


Expansion Plan

Network

Target of 120+ Stores

Greece

Cyprus

Bulgaria

Romania

Turkey

now 39 stores

now 2 stores

now 5 stores

now 21 stores

now 15 stores

40 stores

3 stores

7 stores

23 stores

50 stores

25


Electricals & Electronics Financial Performance

• The exclusive distributor of General Electric, Korting and Liebherr Home

Appliances.

• Main activity is the after sales support and service of Group and third party

products.

CY 11 PY 10 Index CY 11 PY 10 Index

Electronics Key Financial Figures (in €mm)

Q2

H1FY12

CY 12 PY 11 Index CY 12 PY 11 Index

6,0 8,3 73 Revenue 10,8 17,5 62

1,1 1,9 59 Gross Profit 2,0 3,4 59

18,3% 22,5% Margin 18,4% 19,3%

-0,6 0,3 n/c EBITDA -1,0 0,6 n/c

-10,2% 3,4% Margin -9,3% 3,5%

-0,9 0,1 n/c PBT -1,5 0,1 n/c

-15,0% 1,2% Margin -13,9% 0,6%

26


International

• Founded in the UK in 1969

• More than 1.000 stores in 15 countries

• 355 million customers visited New Look either online or in one of the

stores in 2010

• Total annual sales are £ 1,5 billion

• New Look is the No.1 retailer in the UK ladies under 35yrs clothing &

accessories market

27


Financial Performance

New Look Key Financial Figures (in €mm)

CY 11

Q2

PY 10 CY 11

H1FY12

PY 10 Index

CY 12 PY 11 Index CY 12 PY 11 Index

0,9 - - Revenue 1,5 - -

0,4 - - Gross Profit 0,7 - -

43,1% Margin 42,8%

-0,5 - - EBITDA -0,9 - -

-0,7 - - PBT -1,1 - -

28


Expansion Plan

Network

Target of approximately

25 Stores

Romania

Bulgaria

now 7 stores

now 0 stores

20 stores

5 stores

29

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