D'Ieteren Group presentation - March 2021 - imgix
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
D’Ieteren Group presentation March 2021
Financial Calendar 2021 Table of content
MAY D’Ieteren Group in a nutshell Moleskine
27 General Assembly P 3-7 P 25-28
D’Ieteren Group strategy
D’Ieteren Immo & Other
P 8-10
P 29-30
SEPTEMBER ESG
Contact info
01 HY 2021 results P 11-12
P 32
Belron
P 13-17
D’Ieteren Auto
P 18-24
D’Ieteren Group General Presentation 2
D’Ieteren Group in a nutshell
A family-controlled listed investment firm
Purpose D’Ieteren /
Périer Free float Own shares
To build a family of businesses that families1
reinvent industries in search of
excellence and meaningful impact 39.70%
58.48%1 1.82%
D’Ieteren
Group
CD&R3
54.85%2 100% 100% 100%
40%2 Belron D’Ieteren
Moleskine D’Ieteren Immo
5.15%2 Vehicle glass repair, Automotive Global aspirational
replacement & Vehicle distribution in Real Estate arm
lifestyle brand
Atessa4 recalibration Belgium
1 Economic rights as at 31st December 2020 (Nayarit 32.54% - SPDG 25.94%). Family owns 61.98% of voting rights.
2 In voting rights.
3 Clayton, Dubilier & Rice, an American private equity fund. D’Ieteren Group General Presentation 3
4 Atessa, holding company of Gary Lubner, CEO of Belron.
D’Ieteren Group in a nutshell - current portfolio
Belron D’Ieteren Automotive Moleskine D’Ieteren Immo
“Making a difference with real care” “Building seamless and sustainable “Unleash the human genius through “Ensuring the prosperity of D'Ieteren
mobility for everyone” hands on paper” Group’s real estate portfolio”
- Worldwide leader in vehicle glass - Exclusive distributor of VW brands in - Iconic, inspirational brand born from - More than 30 sites including offices,
repair, replacement & recalibration Belgium (70-year relationship) the heritage of a legendary notebook workshops, showrooms, car parks and
(“VGRRR”) - #1 car distributor in Belgium with a - Based in Italy, Milano and present warehousing
- 14.9 million customers served across market share of about 23% globally through a multi-channel - Book value of ~€200m
40 countries - Manages own retail & aftersales distribution platform - €20m net rental income
- Very high levels of brand awareness network (c.20% of distributed - Notebooks, diaries, journals, bags,
and customer satisfaction volumes) writing instruments, reading
- Also manages vehicle glass and other - Vehicle financing and long-term car accessories and hybrid products
insurance claims on behalf of rental through Volkswagen D’Ieteren migrating content from paper to digital
insurance companies Finance (VDFin) devices and vice versa
- Lab Box: start-up incubator for new
mobility solutions
D’Ieteren Group General Presentation 4
D’Ieteren Group in a nutshell – performance
Adjusted PBT, group’s share (€ m)
332.7
305.4 305.8 300.7 299.3
241.6 247.9
226.1
203.0 212.1
177.6
157.2
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019* 2020 2021e
Note: consolidation scope not fully comparable across period (Avis Europe included until 2011; Moleskine included from 2017; Belron at 100% before 2018)
* Post- IFRS 16, including 53.75% of Belron D’Ieteren Group General Presentation 5
D’Ieteren Group in a nutshell – key metrics
Contribution to the Group’s key metrics (FY 2020)
Combined revenues1 Combined Adjusted operating
€7.2bn result1
€662m
1%
0% 15%
45% -3%
54%
88%
Adjusted result before tax, group share
€332.7m
-4% D’Ieteren Automotive
-1% 31% Belron
Moleskine
75% Other (Immo / Group)
1 Including 100% of Belron D’Ieteren Group General Presentation 6
D’Ieteren Group in a nutshell – structure & governance
Board of Directors Strategic Committee
Nomination & Remuneration Committee
11 Directors - All non-executive - 4 independent Audit Committee
Executive Committee
Francis Deprez Arnaud Laviolette
CEO CFO Investment Committee
Portfolio Management Committee
Investment team Experts team
7 Investment Professionals Legal, Tax, Consolidation, Financial &
Private Equity, Investment Banking & Management Non-financial Communication, ESG
Consulting backgrounds
Boards of Directors
Monthly Business Review Meetings
D’Ieteren Group General Presentation 7
D’Ieteren Group’s strategy – investment strategy
Investment strategy
€1.46bn cash position at corporate level at end 2020
Investment philosophy
“Ambition to invest in a selected number of platform companies which are or have the potential to become leaders in their markets
and benefit from multiple opportunities to generate value over the long term for employees, customers, society and shareholders”
Investment criteria
Sectorial focus Market Business model Management Deal structure
4 investment pillars: - Large market - Proven and scalable - Strong, ambitious and - Lead shareholder1 in
- Business Services - Long-term sustainable business model with purposeful management private or public
growth trends global reach potential teams companies
- Industrials
- Preference for - Sustainable competitive - Cultural proximity and - Equity ticket of € 100m -
- Mobility, Data & Services
fragmented market with advantages share values € 700m, with ability to
- Lifestyle Goods & reinvest follow-on capital
consolidation potential - Ability to generate
Services
superior returns for - Moderate use of
employee, customers, leverage, tailored to each
society and shareholders business’ specificity
1 Control, co-control or path to control with like-minded partners D’Ieteren Group General Presentation 8
D’Ieteren Group’s strategy – value creation
Strategy
Revenue growth
Purpose
Support Operational excellence
Contribute Ambition
Strategy
Support and Digitalization / technology
value creation Active Execution
over the long- Financial structure optimization involvement in
Organization
term our businesses
Sustainability People
Reinvention
Alignment with management teams
Engage
Incentive schemes
Permanent,
open &
Engagement with all people
transparent
dialogue
Understand culture, vision and ways of working
D’Ieteren Group General Presentation 9
D’Ieteren Group’s strategy – returns to shareholders
Shareholder returns
Dividend per share (€)
3.80
Extraordinary
Ordinary 2.85
1.35
0.90 0.95 1.00 1.00
0.80 0.80 0.80 0.80
0.43
0.95
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Dividend policy Share buyback programme (on hold)
- To distribute at least the same absolute level as prior year’s dividend - Announcement on 28 Aug 2019 to buy back own shares up to a maximum value of €
150m
- To grow dividend if results allow
- Rationale: cash position > € 900m & strong FCF prospect
- Shares bought back to be cancelled
- Launched early September 2019 – expected term: 12-18 months
- Put on hold in April 20 due to the COVID crisis
- 934,962 shares repurchased and cancelled so far (€ 43.4m or 1.7% of shares)
D’Ieteren Group General Presentation 10D’Ieteren Group’s strategy - ESG
Sustainability at the heart of our priorities – at all levels
Responsible investment
• D’Ieteren Group became a signatory of the United Nations Principles for Responsible
Investment(PRI).
A first reporting will be performed on a voluntary basis in April 2021.
• Next non-financial reporting (aligned with GRI standard) will be available in April,
with limited external assurance provided for a first set of KPIs.
Active ownership
• All activities have set up a measurement process for employee satisfaction, customer satisfaction and CO2 emissions (Group non-
financial KPIs)
• All activities completed a materiality analysis by the end of March 2020 and subsequently initiated a new sustainability strategy
• In 2021, based on their annual reporting on CO2 emissions, all activities will progress on their carbon emission reduction plans
Solidarity programme
• A solidarity programme has been put in place in April 2020, aiming at helping D’Ieteren Group’s employees who may suffer hardship
following the crisis
D’Ieteren Group General Presentation 11Belron
Making a difference with real care
2020
€3,899m revenues
€583m adjusted operating result
€2,413m net debtBelron at a glance
A 20-year successful partnership
D’Ieteren
Group CD&R
acquires a acquires 40%
majority stake Belron
stake in
in Belron acquires
Belron
Safelite, the
US market
Gary Lubner
leader
becomes
Belron’s CEO
1999 2000 2001 2002 2003 2004* 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019** 2020
Current / adjusted operating result
* IFRS (before: BGAAP) D’Ieteren Group General Presentation 13
** As from 2019: post-IFRS 16Belron at a glance
Products and value drivers
› Miles driven (car park / miles per car)
› Winter conditions
General volume trend
Global presence
› Road infrastructure
drivers › Average speed
Revenue breakdown by region › More distancing due to camera penetration
› Market share
FY 2020 VGRR
Vehicle Glass Repair & › Accentuated curvature
Windshield complexity › Larger windscreens
Replacement › Technological content (e.g. rain sensors, ADAS)
Rest of the World › Premium brands
Car park premiumisation › Options requiring different glass variants
13%
› ADAS (Advance Driver-Assistance Systems)
require recalibration
Recalibration Increasing penetration › Expected to rise to 40-60% of car park in next 5
55%
Eurozone 31% years (varying across countries)
VAPS Increasing attachment
Value-added Products › Meet customers’ needs
North America rate1
and Services
Claims management Insurance companies
(US) covered
D’Ieteren Group General Presentation 14
1 % of customers cross-purchasing retail products together with a VGRRR job.Belron at a glance
Belron’s main competitive advantage is to be the natural choice
Employee
engagement Key account
Brand relationship Digital Technical
& channel capabilities
awareness (Repair vs
Customer Replace promise)
satisfaction
Belron NPS1
2020 84.9%
2019 84.3%
2018 82.8%
2017 83.1%
2016 82.6%
D’Ieteren Group General Presentation 15
1 Weighted average across Belron operating countries.Belron at a glance
Belron’s strategy rests on 6 value creation pillars
1 2 3 4 5 6
Marketing Sales Innovation Footprint expansion Complementary sales Efficiencies
Investing in technology
Consumer awareness/ Consumers tend to have Allows Belron to sustain
Deeper insurer relationships innovation differentiates Proximity drives market
preference drives market other car-related needs superior margins at market
drive market share Belron to drive share and share
share which Belron can serve competitive prices
additional revenue per job
Offer enhanced services,
Check car items and sell
further bringing down claims Improve operations cost per
Establish brand leadership at Invest in differentiated replacement consumables
costs Expand footprint in low job (branches, mobile fitters,
beneficial media pricing and capabilities e.g. ADAS where needed e.g. wipers,
share areas call centres, distribution)
positive ROI calibration air filters, rain repellents,
Increase Third Party and/or overheads
sanitization
Administration services
D’Ieteren Group General Presentation 16D’Ieteren
Automotive
Building seamless and sustainable
mobility for everyone
2020
€3,216m revenues
€99m adjusted operating result
€168m net debtD’Ieteren Automotive at a glance
#1 importer and retailer of vehicles in Belgium 24% market share in 2020
Largest car park with 1.2m vehicles on the road 104,710 new vehicles delivered in 2020
#1 brand in Belgium (VW)
70 years of partnership with VW Group and other leading brands
Largest independent importer of VW Group brands
Value-adding services
We provide financing, maintenance contracts and insurance
25 Market Areas contracts
Of which 3 controlled by D’Ieteren along the Brussels –
Mechelen – Antwerp axis
Labbox
Start-up incubator in new mobility
~1m jobs annually in mechanic aftersales
2,187 employees (average FTEs 2020)
€ 3.2bn sales in 2020
11.5% decline vs. 2019 €99m adjusted EBIT in 2020
3.1% EBIT margin
D’Ieteren Group General Presentation 18D’Ieteren Automotive at a glance - activities
Sales (2020; €m)
3,216 Import Retail
Other 30
After-sales
84 • Import and distribution of vehicles • 20% of imported vehicles are sold
of VW Group brands through own dealerships in
• Management of independent Brussels (D’Ieteren Car Centers),
Spare parts and accessories 182
dealer network Mechelen and Antwerp
• Import and distribution of spare • Sale of new vehicles, after-sales
Used cars 96 parts and accessories activities (mechanic and body
• Management of maintenance and repair) and sale of used vehicles
warranty contracts
D’Ieteren Sport (to be VDFin
New vehicles
discontinued)
2,792 • 50/50 joint venture between
• Distribution of Yamaha products in D’Ieteren and VW Financial
Belgium and Luxemburg Services: financing services and
long-term car rental
D’Ieteren Sport 32
2020
D’Ieteren Group General Presentation 19D’Ieteren Automotive at a glance - activities
Net market share per brand New car registrations1 (k units)
FY 2020 (%)
600 547 572 540 547 550 550
476 487 486 483 501
23.6 431
227 246 230 224 218 240
Porsche 0.7 400 203 202 196 195 213
2.0 215
SEAT
200
273 320 326 285 290 288 288 310 322 331 310
217
Škoda 4.8 H2 H1
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
D’Ieteren Automotive’s market share (%)
Audi 6.7
23.6
24
22.7 22.0 22.8 23.0
23 22.3 22.3
22.0 21.8 21.0 22.0
21.5 21.3 21.5 23.1
22 22.7
21 21.8
21.4 21.1
21.5 21.3 21.5 21.3 21.6
Volkswagen 9.4 20 21.0 20.7 20.9 20.8 Market share (%)
19 Net market share
18 (excluding
FY-16
H1-14
FY-14
FY-15
H1-19
FY-19
H1-15
H1-16
H1-17
FY-18
FY-17
H1-18
FY-20
H1-20
deregistrations)
FY 2020
1The historical graph above contains gross figures only. In order to provide an accurate picture of the car market, Febiac D’Ieteren Group General Presentation 20
publishes since mid-2013 market figures excluding registrations that have been cancelled within 30 days.D’Ieteren Automotive at a glance - regulation
Regulatory framework: stringent EU/BE regulation will impact the fuel mix, in favour of EVs
EU regulation Belgian regulation
• 95g of CO2/km from 2020 onward (in Europe, average of 120g/km in • Use of company car in Belgium fiscally favourable for employer /
2019) employee (fiscally deductible, up to a level varying with CO2
emissions/km)
• In 2025, 15% additional reductions, and 37.5% by 2030
- Younger car park (9 vs. 11 years for EU average)
• Heavy fines threat for carmakers
• 2019: government introduced the (i) mobility budget whereby
employee can choose a (greener) company car that can be completed
CO2 emissions tartgets1 (in g CO2/km)
-19% by other transport means (ii) cash for car (so far, < 2% of workers)
159 • 2020: new government’s coalition agreement foresees that 100% of
-27%
new company cars will be CO2 neutral by 2026
130
-15% -31%
95
81
66
2006 2012 2020 2025 2030
1 Source: www.ec.europa.eu D’Ieteren Group General Presentation 21D’Ieteren Automotive at a glance
The Belgian car market
Fuel mix Buyer mix SUV mix
100% 100% 100% 100% 100% 100% 100% 100% 100%
47% 44% 45% 37% 39% 41%
59% 62% 52%
CNG/LPG
33% Electric
53% 56% 55% 63% 61% 59%
36% 31% 6%
23%
6% 7% 15%
71%
2018 2019 2020 2018 2019 2020 2018 2019 2020
Hybrid
Petrol Diesel New energy Private Business SUV Others
• Increasing demand for both greener cars and SUVs
• Market dominated by company cars, with more resilience from private cars in the COVID-19 crisis
• VW has a strong SUV offering and a significant electric vehicles pipeline
D’Ieteren Group General Presentation 22D’Ieteren Automotive at a glance
Strategy
Acceleration in the business transformation
Transform Electric vehicles leadership
Fleet excellence
Expand Multi-brand body work
Excellence and
Customer satisfaction & proximity Expansion into
efficiency in the
core business Online leader promising
adjacent
Dealer 3.0 Used cars
activities
Data-driven offering
Innovate
Shared bikes
Innovation in
the future
Shared cars (Poppy)
mobility
solutions
Multi-modal integration
D’Ieteren Group General Presentation 23Moleskine
Unleash the human genius through
hands on paper
2020
€102m revenues
-€1.5m adjusted operating result
€301m net debtMoleskine at a glance
An iconic multi-category, Moleskine is dedicated to
multi channel brand, born support its users in
from the legacy of the expanding knowledge,
legendary “Moleskine” Moleskine became a brand that develops, markets creativity and individual
notebook and sells products and services which are open expression
platforms to create, store and share
D’Ieteren Group General Presentation 25Moleskine at a glance
Revenue breakdown by
Product breakdown geography Distribution channels
100% 100% 100%
Non-paper 11% e-Commerce 10%
APAC 22% 8%
Retail
22%
Americas 36% B2B
Paper 89%
Wholesale 60%
EMEA 42%
FY 2020 FY 2020 FY 2020
• Moleskine sells its products in globally
o indirectly through a network of distributors and wholesale doors including bookshops, department and stationary stores, online wholesalers, …
o through a B2B channel serving corporate clients
o through its e-Commerce site
o through its current retail network of ~60 stores spread over first tier cities in the world
D’Ieteren Group General Presentation 26Moleskine at a glance
Investment thesis
Acquisition rationale New CEO since April 1st 2020
- Aspirational lifestyle premium
brand
- High margin business
- Asset-light business model, Fewer Better Bigger
exploiting optimum position in its
value chain
- Attractive growth prospects › Delight customers
› Reinvigorate the brand and inspire new generations
o Growing end-market
Customer › Fully re-designed e-commerce platform
o Strong brand awareness in key experience › New CRM
markets › Category management and footprint optimization in retail
o E-commerce development
o Demographics, education,
› Simplification
travelling
› Core first
- Barriers to entry Product portfolio › Smart pricing
› Innovation
o Brand & values › Focus on high-margin products
o Distribution network
- Global reach, close to home (HQ
› Leaner and stronger organization
in Milano)
Development areas › Strategic sourcing & supply chain optimization
› Footprint optimization
D’Ieteren Group General Presentation 27D’Ieteren Immo Ensuring the prosperity of D’Ieteren Group’s real estate portfolio
D’Ieteren Immo & Other
Book value of the real
31 sites in portfolio estate portfolio (€m) Immo strategy
› Invest in new assets that fit within our strategy
Brussels 187 197 195
170 178 › Enhance our existing assets to maximize their value
19% and make them futureproof
› Hold-on to the assets that are core and strategic
23% 58% Flanders
Wallonia › Divest when non-core
› Manage the portfolio in a sustainable way
2016 2017 2018 2019 2020
Maximize value of the portfolio while
taking into account the needs of all
our stakeholders: people, customers,
Other society and shareholders
› In financial reporting, “Other” mainly includes the holding and real
estate activities
D’Ieteren Group General Presentation 29Forward-looking statement
“To the extent that any statements made in this presentation contain information that is not historical, these statements
are essentially forward-looking. The achievement of forward-looking statements contained in this presentation is subject to
risks and uncertainties because of a number of factors, including general economic factors, interest rate and foreign
currency exchange rate fluctuations; changing market conditions, product competition, the nature of product
development, impact of acquisitions and divestitures, restructurings, products withdrawals; regulatory approval processes
and other unusual items. Consequently, actual results may differ materially from those expressed or implied by such
forward-looking statements. Forward-looking statements can be identified by the use of words such as "expects", "plans",
"will", "believes", "may", "could", "estimates", "intends", "targets", "objectives", "potential", and other words of similar
meaning. Should known or unknown risks or uncertainties materialize, or should our assumptions prove inaccurate, actual
results could vary materially from those anticipated. The Company undertakes no obligation to publicly update any
forward-looking statements.”
D’Ieteren Group General Presentation 30Contact information
Investors Press
Stéphanie Voisin
Anne-Catherine Zoller
stephanie.voisin@dieterengroup.com
anne-catherine.zoller@dieterengroup.com
T. +32 2 536 54 39
T. +32 2 536 55 65
M. +32 478 48 58 71
www.dieterengroup.com
D’Ieteren Group General Presentation 31You can also read
