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