Bondholder presentation
11 June 2020
FY19 Results (preliminary and unaudited)
1. FY 19 results (preliminary and unaudited)
- FY 18 results: 2018 revised versus 2018 reported
- Business combinations
- IFRS 16 impact
- Specific effects FY2019
- 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
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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