GROUP QUARTERLY REPORT

AS AT 31 MARCH 2023

2 First quarter 2023

Fielmann Group: Interim report as at 31 March 2023

Dear shareholders and friends of the company,

As 2023 continues to be shaped by record-low consumer confidence levels, customers look for providers that offer guaranteed quality at the best prices. In optical and acoustic retail, this is the Fielmann Group. In Q1/2023, the German family business capitalised on its position as price leader and built on market share gains of 2022: sales and profits grew at double-digit rates.

Financial performance, cash flows and financial position Q1/2023 In the first quarter of 2023, the Fielmann Group's external sales (incl. VAT and inventory changes) rose by +15% over last year to € 556 million (Q1/2022:

  • 484 million). Consolidated sales also went up by +15% to € 478 million (previous year: € 414 million). The main driver was a strong volume growth in prescription eyewear (+8% TLY) as customers turned to the price leader. Furthermore, a favourable sales structure including more progressive glasses, the first-time consolidation of Medical Óptica Audición in Spain and a one-off insurance reimbursement for hearing aid repairs in Germany contributed to the strong sales development.
    Germany increased Q1/2023 sales by +12% over Q1/2022 while Austria reached +13%. This development was aided by soft comparables at the be- ginning of 2022, as Germany and Austria were impacted by Covid-19-related lockdowns. Switzerland increased Q1 sales by +15% over last year, benefit- ting from an improved sales structure and a currency effect. Spain's Q1 sales jumped by +44% over last year as double-digit volume and sales growth at Óptica & Audiología Universitaria was complemented by the first-time consol- idation of Medical Óptica Audición. Our other markets grew their Q1 sales by +31% over last year thanks to double-digit growth in Italy and Poland as well as our successful expansion in the Czech Republic. Our Vision 2025 invest- ments have led to a continued outperformance of our international markets (+24% sales growth in Q1 altogether) and our digital sales channels (+33% sales growth in Q1).
    Personnel expenses rose by 18.4% compared to the same period of the previous year to reach a total of € 220.0 million (previous year: € 185.8 million). The number of employees rose by 678 in the first three months. As at the report- ing date, the Fielmann Group employed a total of 22,354 members of staff (previous year: 21,676). This increase is mainly due to the Fielmann Group's international expansion and, in particular, to the acquisition of Medical Óptica Audición in Spain as well as other companies of the MFI Group as at 31 De- cember 2022.
    Indexed agreements for the lease of our retail stores resulted in rising rents as inflation remained high. Rising expenses for the implementation of our Vision 2025 were overcompensated by lower marketing expenses.

First quarter 2023 3

Q1/2023 EBITDA and EBT jumped by +18% over last year. Positive one-off effects such as an insurance reimbursement were partially offset by accruals of several million euros for the implementation of various cost leadership initiatives in Q1 as well as another pay rise for opticians and acousticians in our German stores in January.

The investments in tangible and intangible assets are related to the implementation of Vision 2025 and amounted to € 30.7 million after three months (previous year: € 11.3 million).

As at 31 March, the Fielmann Group operated digital sales channels in almost all markets as well as 977 stores (previous year: 922), 359 of which also contained hearing aid studios (previous year: 318).

Dividend

In order to maintain our accelerated speed of investment and seize further acquisition opportunities, the Management and Supervisory Boards will recommend a dividend pay-out of € 0.75 per share to the Annual General Meeting on 13 July 2023 (previous year: € 1.50). Based on the year-end closing price, the dividend yield amounts to 2.0%. The total dividend pay-out is € 63 million (previous year: € 126 million) and corresponds to a pay-out ratio of 61% (previous year: 92%). The retained funds will be used in the short term for strategic investments.

Corporate social responsibility

We are proud to actively contribute to several UN Sustainable Development Goals, most significantly to make good health and well-being accessible for everyone while also reducing inequalities by means of affordable eyecare and hearing acoustics.

2022 has also seen great progress on several non-financial indicators and CSR milestones that we report on in detail in our Corporate Social Responsibility Report.

So far, we have set ourselves the goal of being climate neutral by 2050. In the process, we regularly check whether and how we can achieve this goal earlier. In the current financial year, the Management Board and Supervisory Board have adjusted the climate neutrality target to "by 2040, latest".

Outlook, forecast, opportunities and risk report

While the war in Ukraine and the resulting inflation continue to impact our Group, our position as price leader has allowed us to gain market shares across major markets in the last few months. This is a trend that is likely to continue. Our Vision 2025 investments ensure double-digit growth rates in our digital sales channels as we roll out our omnichannel platform. We

4 First quarter 2023

expect our international markets to continue to contribute substantially to our growth. With our recent acquisition in the Basque Country, significant sales growth in Spain is likely in 2023 and we plan for market leadership in the medium term.

For FY2023, the Management Board of the Fielmann Group (Fielmann Aktien- gesellschaft) expects an increase of prescription eyewear volume of between 4% and 8% (8.9 to 9.2 million glasses), a rise of consolidated sales between 7% and 10% (€ 1.88 to € 1.94 billion) and a growth of EBITDA between 9% and 21% (€ 370 to € 410 million). This represents an EBITDA margin of 20% to 21% (previous year: 19.3%) for the full year. The EBT margin will reach between 9% and 11% (previous year: 9.1%).

Further acquisitions promise additional growth potential within our existing markets and beyond. The Fielmann Group is following its purpose internation- ally: To help everyone hear and see the beauty in the world.

Hamburg, April 2023

Fielmann Aktiengesellschaft

The Management Board

First quarter 2023 5

Cash flow statement

Cash flow statement according to IAS 7 for the period from

1 January to 31 March in € 000s

2023

2022

Change

Earnings before taxes (EBT)

58,357

49,649

8,708

-/+ Profit shares of associates

52

120

-68

+ Statement-related interest expenditure from leases

2,761

1,246

1,515

+ Statement-related other expenditure in the final result

561

302

259

- Statement-related income in the final result

-60

-3,438

3,378

+ Write-downs on tangible assets and intangible assets

20,072

18,991

1,081

+ Write-downs on rights of usufruct from leases

23,784

22,683

1,101

- Taxes on income paid

-18,469

-12,708

-5,761

+/- Other non-cash income/expenditure

-5,208

5,494

-10,702

+/- Increase/decrease in accruals

20,952

6,175

14,777

-/+ Profit/loss on disposal of tangible assets as properties kept as

financial investments and intangible assets

479

-79

558

-/+ Increase/decrease in inventories, trade debtors and other assets

not attributable to investment or financial operations

-25,258

-26,117

859

+/- Increase/decrease in trade creditors and other liabilities not

attributable to investment or financial operations

17,882

16,607

1,275

-

Interest paid

-240

-311

71

+

Interest received

-12

158

-170

= Cash flow from operating activities

95,653

78,772

16,881

Receipts from the disposal of tangible assets

63

356

-293

- Payments for tangible assets

-16,123

-10,858

-5,265

- Payments for intangible assets

-788

-438

-350

+ Receipts from the disposal of financial assets

2,307

12

2,295

- Payments for financial assets

-2,289

0

-2,289

- Payments for the acquisition of subsidiaries

-7,808

0

-7,808

+ Receipts from the disposal of securities and

other investments

20,045

11,459

8,586

- Payments for the acquisition of securities and

other investments

0

-59,697

59,697

= Cash flow from investment activities

-4,593

-59,166

54,573

- Payments to company owners and non-controlling shareholders

-929

-3,487

2,558

+/- Sale/Acquisition of own shares

-202

-464

262

+ Receipts from loans raised

200

29

171

-

Repayment of loans

-23

-42

19

- Payments for liabilities from leases

-25,969

-23,381

-2,588

- Payments for the acquisition of additional shares in subsidiaries

-3,043

-894

-2,149

= Cash flow from financing activities

-29,966

-28,239

-1,727

Changes in cash and equivalents

61,094

-8,633

69,727

+/- Changes in cash and equivalents due to exchange rates

-106

116

-222

+ Cash and equivalents at the beginning of the period

51,249

174,889

-123,640

= Cash and equivalents at the end of the period

112,237

166,372

-54,135

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Fielmann AG published this content on 27 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 April 2023 05:46:03 UTC.