Bondholder presentation

11 June 2020

FY19 Results (preliminary and unaudited)

1. FY 19 results (preliminary and unaudited)

  1. FY 18 results: 2018 revised versus 2018 reported
  2. Business combinations
  3. IFRS 16 impact
  4. Specific effects FY2019
  5. FY 19 results

2. FY 19 balance sheet (preliminary and unaudited)

1. FY19 Results (preliminary and unaudited)

(in thousands of euros)

2019

2018 revised

2018

Revenue

489.325

471.674

511.794

Cost of merchandise

(221.293)

(200.893)

(231.571)

Gross profit

268.032

270.781

280.223

Adjusted operating profit/(loss) before amortisation and depreciation

expense (Adjusted EBITDA)

(6.584)

48.548

52.398

Impairment fixed assets, costs related to changes in company structure

(199.137)

More value customer base

6.332

2.482

Operating profit/(loss) before amortisation and depreciation expense

(EBITDA)

(205.721)

54.880

54.880

Amortisation and depreciation expenses

(74.606)

(22.543)

(22.543)

Operating profit/(loss) (EBIT)

(280.327)

32.337

32.337

Financial result

(21.721)

(17.617)

(17.617)

Profit/(loss) before taxes

(302.048)

14.720

14.720

Income taxes

9.932

(3.181)

(3.181)

PROFIT/(LOSS) FOR THE PERIOD

(292.115)

11.539

11.539

Other comprehensive income

(671)

34

34

TOTAL COMPREHENSIVE INCOME OF THE PERIOD

(292.786)

11.573

11.573

1. FY19 | Results (preliminary and unaudited)

1.1. 2018 versus 2018 revised

2018 versus 2018

(in thousands of euros)

2018 revised

2018

Variance

revised:

Muys (€3.8m): reclass

Revenue

471.674

511.794

(40.120)

between revenue and

Cost of merchandise

(200.893)

(231.571)

30.679

more value customer

Gross profit

270.781

280.223

(9.442)

base

Adjusted operating profit/(loss) before amortisation and depreciation

Buying commissions

expense (Adjusted EBITDA)

48.548

52.398

(3.850)

Impairment fixed assets, costs related to changes in company structure

netted on respectively

More value customer base

6.332

2.482

3.850

turnover (on third party

Operating profit/(loss) before amortisation and depreciation expense

production costs

(EBITDA)

54.880

54.880

(0)

fashion) and COS (on

Amortisation and depreciation expenses

(22.543)

(22.543)

-

Operating profit/(loss) (EBIT)

32.337

32.337

(0)

FNG production costs)

Financial result

(17.617)

(17.617)

-

Correction of incorrect

Profit/(loss) before taxes

14.720

14.720

(0)

Income taxes

(3.181)

(3.181)

-

elimination between

PROFIT/(LOSS) FOR THE PERIOD

11.539

11.539

(0)

personnel costs, COS

Other comprehensive income

34

34

-

and other operating

TOTAL COMPREHENSIVE INCOME OF THE PERIOD

11.573

11.573

(0)

costs

1. FY19 Results (preliminary and unaudited)

1.2. Business combinations

- Ellos Group included from Nov 27, 2019

Ellos Group (1

(in thousands of euros)

month)

Revenue

25.100

Cost of merchandise

(12.378)

Gross profit

12.722

Adjusted operating profit/(loss) before amortisation and depreciation

expense (Adjusted EBITDA)

4.045

Impairment fixed assets, costs related to changes in company structure

(3.123)

More value customer base

Operating profit/(loss) before amortisation and depreciation expense

(EBITDA)

922

Amortisation and depreciation expenses

(1.637)

Operating profit/(loss) (EBIT)

(715)

Financial result

(4.933)

Profit/(loss) before taxes

(5.648)

Income taxes

(1.321)

PROFIT/(LOSS) FOR THE PERIOD

(6.969)

1. FY19 | Results (preliminary and unaudited)

1.3. Impact of IFRS 16 in the 2019 reported figures

(in thousands of euros)

2019 (excl IFRS 16)

IFRS 16

2019

Revenue

489.325

-

489.325

Cost of merchandise

(221.293)

-

(221.293)

Gross profit

268.032

-

268.032

Adjusted operating profit/(loss) before amortisation and depreciation

expense (Adjusted EBITDA)

(58.006)

51.422

(6.584)

Impairment fixed assets, costs related to changes in company structure

(199.137)

-

(199.137)

More value customer base

Operating profit/(loss) before amortisation and depreciation expense

(EBITDA)

(257.143)

51.422

(205.721)

Amortisation and depreciation expenses

(24.865)

(49.741)

(74.606)

Operating profit/(loss) (EBIT)

(282.008)

1.681

(280.327)

Financial result

(18.766)

(2.955)

(21.721)

Profit/(loss) before taxes

(300.773)

(1.274)

(302.048)

Income taxes

9.932

-

9.932

PROFIT/(LOSS) FOR THE PERIOD

(290.841)

(1.274)

(292.115)

Other comprehensive income

(671)

(671)

TOTAL COMPREHENSIVE INCOME OF THE PERIOD

(291.512)

(1.274)

(292.786)

1. FY19 Results (preliminary and unaudited)

1.4. Specific effects FY19: impairments, provisions for claims

2019

(in thousands of euros)

Impairments

Revenue

Cost of merchandise

Gross profit

-

Adjusted operating profit/(loss) before amortisation and depreciation

expense (Adjusted EBITDA)

(98.352)

Impairment fixed assets, costs related to changes in company structure

(193.944)

More value customer base

Operating profit/(loss) before amortisation and depreciation expense

(EBITDA)

(292.296)

Amortisation and depreciation expenses

Operating profit/(loss) (EBIT)

(292.296)

Financial result

Profit/(loss) before taxes

(292.296)

Income taxes

14.150

PROFIT/(LOSS) FOR THE PERIOD

(278.146)

Impairment receivables: -€94m

Provision for claims:-€4m

Impairment fixed assets: -€194m:

  • Impairment goodwill:-€80m
  • Impairment intangibles:-€114m

Tax effects: €14m

  • DTL effect on impairment intangibles:+ €22m
  • Impairment DTA:-€8m

1. FY19 Results (preliminary and unaudited)

1.5. FY 19 excl IFRS 16, excl impairments, excl provisions for claims

2019 (excl IFRS 16,

(in thousands of euros)

excl impairments)

2019

2018 revised

Revenue

489.325

489.325

471.674

Cost of merchandise

(221.293)

(221.293)

(200.893)

Gross profit

268.032

268.032

270.781

Adjusted operating profit/(loss) before amortisation and depreciation

expense (Adjusted EBITDA)

40.346

(6.584)

48.548

Impairment fixed assets, costs related to changes in company structure

(5.193)

(199.137)

More value customer base

6.332

Operating profit/(loss) before amortisation and depreciation expense

(EBITDA)

35.153

(205.721)

54.880

Amortisation and depreciation expenses

(24.865)

(74.606)

(22.543)

Operating profit/(loss) (EBIT)

10.288

(280.327)

32.337

Financial result

(18.766)

(21.721)

(17.617)

Profit/(loss) before taxes

(8.477)

(302.048)

14.720

Income taxes

(4.218)

9.932

(3.181)

PROFIT/(LOSS) FOR THE PERIOD

(12.695)

(292.115)

11.539

Adjusted ebitda:

  • Acquisition in Ellos: +€4m
  • Impact Henkelman:-€6,7m
  • Benelux core activities:-€5,5m

Changes to the company structure:

  • Transaction cost acquisition Ellos
  • Restructuring cost Netherlands

Financial result:

  • New Nordic Bond: +€4m
  • Warrant:-€4m
  • Interest on increased bank debt: +€1m

2. FY19 | Balance sheet (preliminary and unaudited)

ASSETS

31/12/2019

31/12/2018

Variance

(in thousands of euros)

Fixed assets

712.825

514.070

198.755

Current assets

313.928

320.833

-6.905

TOTAL ASSETS

1.026.754

834.902

191.852

EQUITY AND LIABILITIES

31/12/2019

31/12/2018

Variantie

(in thousands of euros)

Equity attributable to owners of the

parent

34.547

342.733

-308.186

Total equity

34.547

342.733

-308.186

Non-current liabilities

735.090

347.804

387.287

Current liabilities

257.116

144.365

112.752

Total liabilities

992.207

492.168

500.038

TOTAL EQUITY AND LIABILITIES

1.026.754

834.902

191.852

2. FY19 | Balance sheet (preliminary and unaudited)

2.1. Assets

ASSETS

31/12/2019

31/12/2018

Variance

(in thousands of euros)

Fixed assets

712.825

514.070

198.755

Goodwill

69.538

86.158

-16.620

Intangible assets

346.400

333.102

13.298

Property, plant and equipment

65.406

76.173

-10.767

Right-of-use assets

218.099

-

218.099

Other financial assets

297

-

297

Deferred tax assets

13.085

18.636

-5.551

Other fixed assets

-

-

-

Current assets

313.928

320.833

-6.905

TOTAL ASSETS

1.026.754

834.902

191.852

Goodwill : -€16m:

  • Ellos: +€63m
  • Impairment:-€80m

Intangible fixed assets : +€13m:

  • Ellos: +€116m
  • Impairment intangibles:-€114m
  • Other: +€11m

Use of assets : €+218m:

  • IFRS 16: +€145m
  • Ellos: +€58m
  • Reclas leasings included in PPE in 2018:+ €15m

2. FY19 | Balance sheet (preliminary and unaudited)

2.1. Assets

ASSETS

31/12/2019

31/12/2018

Variance

(in thousands of euros)

Fixed assets

712.825

514.070

198.755

Current assets

313.928

320.833

-6.905

Inventories

154.866

108.082

46.784

Trade and other receivables

23.105

72.174

-49.069

Income tax receivables

2.456

131

2.325

Other financial assets

32.368

18.718

13.650

Other current assets

6.435

3.585

2.850

Cash and cash equivalents

94.698

118.143

-23.445

TOTAL ASSETS

1.026.754

834.902

191.852

Inventories : +€47m

  • Ellos: +€51m

Trade and other receivables: -€49m

  • Ellos: +€9m
  • Increase in receivables:+ €36m
  • Impairment receivables:- €94m

2. FY19 | Balance sheet (preliminary and unaudited)

2.2.Liabilities

EQUITY AND LIABILITIES

31/12/2019

31/12/2018

Variantie

(in thousands of euros)

Equity attributable to owners of the

parent

34.547

342.733

-308.186

Share capital

60.679

60.679

-

Share premium

264.408

264.408

-

Other reserves

1.576

6.108

-4.533

Retained Earnings

-292.115

11.538

-303.653

Total equity

34.547

342.733

-308.186

Non-current liabilities

735.090

347.804

387.287

Current liabilities

257.116

144.365

112.752

Total liabilities

992.207

492.168

500.038

TOTAL EQUITY AND LIABILITIES

1.026.754

834.902

191.852

Equity: - €308m

  • Result for the year: - €292m
  • Ellos acquisition:-€16m

2. FY19 | Balance sheet (preliminary and unaudited)

2.2. Liabilities

EQUITY AND LIABILITIES

31/12/2019

31/12/2018

Variantie

(in thousands of euros)

Total equity

34.547

342.733

-308.186

Non-current liabilities

735.090

347.804

387.287

Provisions

-

-

-

Post-employment benefit obligations

16.345

101

16.244

Borrowings

487.931

273.763

214.168

Other financial liabilities

169.201

17.147

152.054

Deferred tax liabilities

61.614

56.793

4.821

-

-

-

Current liabilities

257.116

144.365

112.752

Provisions

1.906

1.949

-43

Borrowings

12.557

11.605

952

Trade and other payables

166.803

113.826

52.977

Current tax liabilities

3.353

4.336

-983

Other financial liabilities

64.090

5.839

58.251

Other current liabilities

8.407

6.810

1.597

Total liabilities

992.207

492.168

500.038

TOTAL EQUITY AND LIABILITIES

1.026.754

834.902

191.852

Provisions : +€16m:

  • Subject Pension obligation from Ellos

Interest-bearing debt : +€215m:

Within FNG Nordic

  • Bond loan FNG Nordic: +€138 m
  • Mandatory convertible bond: +€21m
  • Vendor note: +€12,3m

Within Benelux perimeter

  • Bank debt: +€44m

Other financial liabilities : +€210m:

  • IFRS 16:+ €145m
  • Ellos: +€58m
  • Schuld nav inkoop eigen aandelen: +€10m

Trade debts : +€53m:

  • Ellos: +€50m

Summary structure chart

FNG NV (BE)

Unsecured debt of €58m

FNG Finance Belgium BV

FNG International Holding

Secured debt of €11.6m

(BE)

NV (BE)

€138m Secured debt

FNG Nordic cAB (publ) (SE)

FNG Benelux Holding NV

Unsecured debt of €55m

(BE)

Unsecured debt of €20.15m

€33m Secured facility

Ellos Group Holding AB (SE)

FNG Group NV (BE)

Secured debt of €20m

+ 13 Ellos OpCo's

Position

Bondholders

FNG Holding NV (BE)

Secured debt of €270m

Share pledge across group

FNG Boutique Holding NV

Apparel Buying Platform

Shoe Buying Platform Holding

Miss Etam Holding (NL)

FNG Roots NV (BE)

BrantNew BV (BE)

(BE)

(BE)

BV (BE)

+4 OpCo's (Henkelman)

+ 6 OpCo's

+ 24 OpCo's

+3 Brantano OpCo's

+5 OpCo's

+1 HK OpCo

4 guarantors

19 guarantors

1 guarantor

4 guarantors

Overview

  • FNG Holding NV holds the Benelux brands and operating entities and has a secured debt facility multiple share pledges and charges against most assets
  • Ellos Group have a secured bond and a RCF facility which is secured against the shares of the Ellos Group
  • The FNG International Holding NV debt is secured via a share pledge over the shares of the company

14

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Disclaimer

FNG NV published this content on 11 June 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 June 2020 07:37:02 UTC