Matas A/S : Annual report 2017/18 - Matas meets its guidance and launches new growth strategy, "Renewing Matas"

May 30, 2018

Company announcement no. 01 2018/19
Allerød, 30 May 2018

Annual Report 2017/18

Matas meets its guidance and launches new growth strategy, 'Renewing Matas'
The Board of Directors of Matas A/S today considered and adopted the annual report for the financial year 1 April 2017 - 31 March 2018.

'Matas delivered a result of DKK 459 million (EBITA before special items, which amounted to DKK 13 million in 2017/18), which was at the upper end of our adjusted guidance range of DKK 445-460 million. Based on the financial performance this fiscal year, the Board of Directors proposes to pay a dividend of DKK 6.30 per share', says CEO Gregers Wedell-Wedellsborg, and he adds:

'The numbers speak for themselves, confirming that Matas needs to set a new course to reverse the trend. In the past financial year, we therefore took the first steps to transform our business. We have closed down loss-making activities and freed up resources for our digital business. At the same time, we have updated our strategy to reignite growth and secure a satisfactory long-term earnings performance.'

Mr Wedell-Wedellsborg concludes: 'We look forward to presenting our updated strategy, 'A renewed Matas', which sets out to reverse the past few years' flat revenue growth and receding earnings. Our strategy entails added focus on investing for growth as reflected in our financial guidance for financial year 2018/19'.

(DKKm)	2017/18		2016/17		Q4 2017/18		Q4 2016/17
Revenue	3,419		3,463		757		779
Gross profit	1,549		1,612		342		361
EBIT	369		475		35		83
EBITDA	535		620		82		122
EBITDA margin	15.6%		17.9%		10.8%		15.7%
EBITA	472		551		56		102
EBITA margin	13.8%		15.9%		7.4%		13.1%
Profit for the period	280		339		32		53
Adjusted profit after tax	356		398		47		67
Cash flow from operating activities	384		483		6		73

Financial targets

Our 2018/19 financial guidance for the Group is as follows:

• Underlying revenue unchanged relative to 2017/18 (like-for-like growth between -1% and 1%).
• EBITDA margin in excess of 14.5%.
• CAPEX in the DKK 110-130 million range.

Financial ambitions

Based on our strategy, 'A renewed Matas', our financial ambitions going forward to 2022/23 are as follows:

• Total revenue in the DKK 3.7-3.9 billion range, driven by growing online sales, store concept upgrading and ongoing adjustment of the retail network. Underlying like-for-like growth is expected to be positive from financial year 2020/21 at the latest.
• An EBITDA margin in excess of 14% towards the end of the strategy period (based on existing IFRS rules (IFRS16 not included)).
• Average annual CAPEX in the DKK 120-140 million range, with investments skewed to the first three years of the strategy period.
• A gearing ratio of between 2.5 and 3 (ratio of net interest-bearing debt to EBITDA) during the strategy period.

Capital Markets Day

Matas will host a Capital Markets Day for investors and analysts on 30 May 2018 at 10:00 a.m., at which the Group will elaborate on its strategy 'A renewed Matas'. The presentation can be downloaded from Matas' investor site: investor.en.matas.dk.

Conference call

Matas will host a conference call for investors and analysts on 30 May 2018 at 15:30 p.m. (CET). The conference call may be accessed from our investor website, investor.matas.dk, where the presentation will also be available. Conference call access numbers for investors and analysts:

DK: [phone]
UK: [phone]
US: [phone]
Event code: 9332961

Please call 5-10 minutes before the conference call begins.

Link til webcast: https://edge.media-server.com/m6/p/iuxhaasn

General meeting

The annual general meeting will be held on Thursday, 28 June 2018 at 4:00 p.m. (CET) at IDA Mødecenter, Kalvebod Brygge 31-33, DK-1780 Copenhagen V, Denmark.

Contact persons

Gregers Wedell-Wedellsborg
CEO, tel. [phone]

Anders T. Skole-Sørensen
CFO, tel. [phone]

Elisabeth Toftmann Klintholm
Head of Investor Relations & Corporate Affairs, tel. [phone]

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